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Home My WebLink About03.b. Draft Board Minutes - 01-31-19 Page 1 of 8 Item 3.b. ,ek CENTRAL SAN SANITARYCENTRAL CONTRA COSTA , . February 21, 2019 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: JANUARY 31, 2019 SPECIAL BOARD MEETING MINUTES Attached are the draft minutes of the above Board meeting. ATTACHMENTS: 1. Draft Minutes of 0 1-31-19 Board meeting February 21, 2019 Regular Board Meeting Agenda Packet- Page 11 of 111 Page 2 of 8 CENTRAL SAN CENTRAL •NTRA COSTA SANITARY DISTRICT 5019 • MINUTES* BOARD OF DIRECTORS: DAVID R. WILLIAMS President SPECIAL BOARD MEETING MICHAEL R.MCGILL Board Room President Pro Tent Thursday, January 31, 2019 PAUL CAUSEY 1'30 p.m. JAMES D TAD DRAFT Open Session — Board Room (Video recorded) ROLL CALL A special meeting of the Board of Directors was called to order by President Williams at 1:30 p.m. Secretary of the District Katie Young called roll: PRESENT.- Members: Causey, McGill, Nejedly, Pilecki, Williams ABSENT. Members: None PLEDGE OF ALLEGIANCE The Board, staff and audience joined in the Pledge of Allegiance. INTRODUCTIONS 1. New employee: • Amy Compaglia, Senior Buyer in the Administration Department, Purchasing and Materials Services Division, effective January 22, 2019 BOARD ACTION: Welcomed Ms. Compaglia. PUBLIC COMMENT PERIOD No comments. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. February 21, 2019 Regular Board Meeting Agenda Packet- Page 12 of 111 Page 3 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT January 31, 2019 Special Board Meeting Minutes-Page 2 REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. CONSENT CALENDAR 2. Approve the following: a. January 15, 2019 Special Board meeting minutes b. January 17, 2019 Regular Board meeting minutes 3. Receive December 2018 Financial Statements and Investment Reports 4. Approve expenditures dated January 31 , 2019 5. Approve updated administrative overhead percentage of 203% for Fiscal Year 2019-20 General Manager Roger S. Bailey stated that the Finance Committee reviewed Items 3 through 5 at its meeting earlier in the week and recommended Board approval of each item. Member Pilecki requested Item 2. be removed from the Consent Calendar and Member Causey requested Item 5. be removed from the Consent Calendar. BOARD ACTION: Motion was made by Member Causey and seconded by Member McGill to adopt Items 3. and 4. on the Consent Calendar as recommended. Motion passed by unanimous vote. Regarding Item 2., Member Pilecki stated that since he was unable to attend the meetings, he would abstain from voting on the minutes. BOARD ACTION: Motion was made by Member McGill and seconded by Member Causey to adopt Items 2.a. and 2.b. on the Consent Calendar as recommended. Motion passed by the following vote: AYES: Members: Causey, McGill, Nejedly, Williams NOES: Members: None ABSTAIN: Members: Pilecki Regarding Item 5., Member Causey informed the other Board Members that the Finance Committee discussed the potential impact that the anticipated transition to CaIPERS Healthcare will have on the Fiscal Year 2019-20 overhead percentage. Since the transition is not expected to occur until July 1, 2019, he said the Committee will revisit the issue later in the calendar year to determine if a change to the overhead rate is warranted. February 21, 2019 Regular Board Meeting Agenda Packet- Page 13 of 111 Page 4 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT January 31, 2019 Special Board Meeting Minutes-Page 3 BOARD ACTION: Motion was made by Member McGill and seconded by Member Causey to adopt Item 5. on the Consent Calendar as recommended. Motion passed by unanimous vote. OTHER BOARD ACTION ITEMS 6. Set public hearing for April 18, 2019 at 1:30 p.m. to consider establishing Sewer Service Charge (SSC) and Recycled Water (REW) Charge rates for the next four fiscal years, and authorize the Secretary of the District to publish the public hearing notices BOARD ACTION: Motion was made by Member Causey and seconded by Member McGill to set April 18, 2019 at 1:30 p.m. as the date and time for a public hearing to consider establishing SSC and REW Charge rates for the next four fiscal years and authorize the Secretary of the District to publish the public hearing notices. Motion passed by unanimous vote. 7. Review draft Proposition 218 notices, and authorize mailing of public notices of proposed Sewer Service Charge (SSC) and Recycled Water (REW) Charge rate increases for Fiscal Years 2019-20, 2020-21 , 2021-22, and 2022-23 Member Pilecki requested that staff provide an analysis of the cost allocation change from residential user SSC rates to the commercial user rates and stated that he would like a cost comparison of non-residential rates from other agencies containing similar commercial categories as Central San to see if the rates are comparable. President Williams clarified that the changes to residential and non-residential SSC rates were a redistribution of costs based actual on cost of service, not a transfer. Member Pilecki asked District Counsel Kent Alm if the proposed 3% increase for recycled water rates would create an issue for the District under Proposition 218 if the full cost of producing recycled water is not recovered. Mr. Alm stated it would not, due to the history of the recycled water program, the terms of the EPA settlement to fund construction of the wastewater treatment plant, and the historic requirements of the service being provided to dispose of the treated effluent water. Member Pilecki expressed concern about seeking a four-year rate increase because of the conservative assumptions made regarding inflation (CPI), condition assessments, etc. He said he would prefer a two-year rate increase. Member Nejedly stated that he would like to have seen a more simplified Proposition 218 notice and asked what it costs to mail and produce the notice as drafted. Communications and Intergovernmental Relations Manager Emily Barnett stated that most of the cost is first-class postage. With printing and addressing costs, the total will be approximately $65,000, in addition to staff time. February 21, 2019 Regular Board Meeting Agenda Packet- Page 14 of 111 Page 5 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT January 31, 2019 Special Board Meeting Minutes-Page 4 President Williams expressed his dissatisfaction with the Proposition 218 notice style as he would like to make it as simple as possible with a tear off card for the rate payers to express their protest of the rate increase. BOARD ACTION: Motion was made by Member McGill and seconded by Member Causey to authorize mailing of public notices of proposed SSC and REW Charge rate increases for Fiscal Years 2019-20, 2020-21, 2021-22, and 2022-23. Motion passed by the following vote: AYES: Members: Causey, McGill, Nejedly NOES: Members: Pilecki, Williams ABSTAIN: Members: None Member Pilecki concurred with President Williams' thoughts on the tear-off card and restated that he also voted no because he was uncomfortable with a four-year rate increase. REPORTS AND ANNOUNCEMENTS 8. General Manager— Announcements a. Announcements — January 31 , 2019 1) Public Bidding for Lafayette Sewer Renovations, Phase 13, District Project 8452 2) 2018 Title V Clean Air Act Annual Report Submitted 3) No Businesses in Significant Non-Compliance for 2018 4) Uniform Public Construction Cost Accounting Act (UPCCAA) Bid Limits Increased Effective January 1, 2019 5) Public Workshop Scheduled for February 13, 2019 Regarding Walnut Creek Sewer Renovation Project, Phase 13, District Project 8455 6) Public Workshop Scheduled for February 7, 2019 Regarding Lafayette Sewer Renovation Project, Phase 13, District Project 8452 No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 9. Counsel for the District Mr. Alm announced that a closed session would be held for Item 14. February 21, 2019 Regular Board Meeting Agenda Packet- Page 15 of 111 Page 6 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT January 31, 2019 Special Board Meeting Minutes-Page 5 10. Secretary of the District Ms. Young announced the following upcoming meetings: • Engineering & Operations Committee — Tuesday, February 5 at 2:00 p.m. • Special Board Meeting (Board Self-Evaluation Workshop) — Monday, February 11 at 9:30 a.m. in the 3rd Floor Executive Conference Room • Administration Committee — Tuesday, February 19 at 8:30 a.m. BOARD ACTION: Received the announcements. 11. Board Members — Committee Minutes a. January 14, 2019 — Engineering & Operations Committee — Chair Nejedly and Member Causey (alternate for Member Pilecki) BOARD ACTION: Received the Committee minutes. 12. 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 Member Causey reported that he recently met with Vivian Housen of V.W. Housen and Associates. Member McGill • January 18, 2019 - California Wastewater Environment Association (CWEA) San Francisco Bay Section Annual Awards Banquet in Concord • January 23-25, 2019 - California Association of Sanitation Agencies (CASA) Winter Conference in Palm Springs, CA • January 28, 2019 - California Special Districts Association - Contra Costa Chapter (CCSDA) Meeting in Walnut Creek • January 29, 2019 - Pleasant Hill State of the City Mayor's Breakfast Member McGill also provided a written report covering his announcements and other meetings. Member Nejedly - No report. Member Pilecki Member Pilecki advised that he will be attending the State of the City Luncheon in Concord tomorrow and the Mayors' Conference in Concord next week. President Williams - No report. BOARD ACTION: Received the reports and announcements. February 21, 2019 Regular Board Meeting Agenda Packet- Page 16 of 111 Page 7 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT January 31, 2019 Special Board Meeting Minutes-Page 6 13. 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. EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS Member McGill requested that Mr. Alm keep the Board apprised about the newly announced Supreme Court decision on Proposition 218 regarding the wastewater industry. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Item 14. RECESS TO CLOSED SESSION The Board recessed at 2:01 p.m. to reconvene in closed session in the Caucus Room. Closed Session (Not video recorded) CLOSED SESSION 14. 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 RECESS TO OPEN SESSION The Board recessed at 2:57 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION Item 14. — Mr. Alm stated that there was no reportable action. February 21, 2019 Regular Board Meeting Agenda Packet- Page 17 of 111 Page 8 of 8 CENTRAL CONTRA COSTA SANITARY DISTRICT January 31, 2019 Special Board Meeting Minutes-Page 7 ADJOURNMENT The meeting was adjourned at 2:58 p.m. David R. Williams 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 February 21, 2019 Regular Board Meeting Agenda Packet- Page 18 of 111