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Home My WebLink AboutBOARD MINUTES 11-01-18 P iN ENTRAL SAN a MINUTES* BOARD OF DIRECTORS: JAMES A.NEJEDLY REGULAR BOARD MEETING President DAVID R.WILLIAMS Prevident Pro Tem Board Room PAUL CAUSEY Thursday, November 1, 2018 MICHAEL R.AICGILL 1:30 p.m. TAD J P1LECK1 Open Session — Board Room (Video recorded) A regular meeting of the Board of Directors was called to order by President Nejedly at 1:36 p.m. Secretary of the District Katie Young called roll.- PRESENT: oll: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. y These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 66— Page 187 CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes—Book 66-Page 188 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. 2018-035 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 5. 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$5,555,000 to CWS Construction Group, Inc., the lowest responsive bidder for the Plant Operations Building Seismic Upgrades and Server Room Relocation, District Projects 7352 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 slated 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 2-5 as recommended. Motion passed by unanimous vote. With regard to !tern 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. CENTRAL CONTRA COSTA SANITARY DISTRICT illovember 1, 2018 Board Meeting Minutes—Book fib-Page 189 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. dile 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 Member 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 (MSICG) 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 staffs 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 lent Alm reminded the Board that the motion also includes the Board's rejection of the protest filed by Manito Construction. CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes--Book 66-Page 190 BOARD ACTION: Motion was made by Member Nejedl and seconded b Y y Member McGill to reject the protest and award a construction contract in the amount of$6,666,000 to CWS Construction Group, Inc., the lowest responsive bidder for the Plant operations Building Seismic Upgrades and Server Room g 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 seismicJro'ect but has concerns p for staffs 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 y Contrac tual Assessment District (CAD) No. 2016-2 in Alamo, District Project 6647• adopt Resolution No. 2018-037 confirming compliance with California Constitution Article X111 D, Section 4 (Proposition 218); adopt Resolution No. 2018-038 approving pp g the Engineer's Report and Assessments, orderingimprovement, and finding the p g project exempt from the California Environmental Quality Act (CEQA); and authorize the General Manager to execute an agreement with the North Jackson WayCAD N O. 2016-2 participants Engineering Assistant 111 Russell Leavitt reviewed thep resentation included in the agenda materials. President lllejedly 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 Y Member Williams to approve the North Jackson WayCAD No. 20'16-2 District , Project 6647; adopt the proposed resolutions; find theexemJ ro■ect t from p p CEQA; and authorize the General Manager to execute an agreement with the CAD participants. Motion passed by unanimous vote. CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes--Book 66-Page 191 a 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 MOUs, y 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, p 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 Supp ort/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 . g Support/Confidential Group effective December 18, 2017 through April 17, g p 2022. Motion passed by the following roll call vote of the Board: AYES: Members: McGill, Nejedly, Pilecki NOES: Members: Causey, Williams ABSTAIN: Members: None CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes—Book 66-Page 192 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 Manner 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 Mana er—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. CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes—Book 66-Page 193 15. Counsel for the District None. BOARD ACTION: Received the announcement. 10. 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 Cause --- 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 Nejedly_— No report. BOARD ACTION: Received the reports and announcements. CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes—Book 66-Page 194 19. Board Members - 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. 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. W1FIA 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 CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes—Book 66-Page 195 potential capital projects that may be eligible for SRF loans from the SINRCB. 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 p Workshop No. 2 with various rate scenarios and debt financingoptions 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 CIP 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 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: CENTRAL CONTRA COSTA SANITARY DISTRICT November 1, 2018 Board Meeting Minutes—Book 66-Page 196 AYES: Members: causey, McGill, Pilecki, Williams NOES: Members: None ABSENT: Members: Nejedly EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS None. ADJOURNMENT The meeting was adjourned at 5:18 p.m. J s A. Nejed ly resident of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Iia Ya Secretz', tu District Central Centra Costa Sanitary District County of Contra Costa, State of California