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Home My WebLink AboutBOARD MINUTES 06-06-19 mild CENTRALSAN CENTRAL • •A COSTA SANITARYDISTRICT 5019 IMHOFFPLACE, • • MINUTES* BOARD OF DIRECTORS: DAVID R. WILLIAMS President REGULAR BOARD MEETING MICHAEL R.MCGILL Board Room President Pro Tem Thursday, June 6, 2019 PAUL H.CAUSEY 1:3Om. JAMES A.NEJEDLY p' TAD J.PILECKI Open Session — Board Room (Video recorded) ROLL CALL A regular 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. PUBLIC COMMENT PERIOD No comments. REQUESTS TO CONSIDER MATTERS OUT OF ORDER President Williams advised that General Manager Roger S. Bailey requested Item 13 be heard before Item 12. CONSENT CALENDAR 1. Approve the following: a. May 16, 2019 Board meeting minutes These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 67— Page 90 CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2019 Board Meeting Minutes—Book 67-Page 91 2. Receive April 2019 Financial Statements and Investment Reports 3. Approve expenditures dated June 6, 2019 4. Adopt Resolution No. 2019-030 authorizing the execution of a real property agreement for property located at 173 Oak Road in Alamo 5. Adopt Resolution No. 2019-031 authorizing the execution of a real property agreement for property located at 30 Alamo Lane in Alamo 6. Adopt Resolution No. 2019-032 authorizing a grant deed to Caltrans - portion of the A-Line right of way 7. Adopt Resolution No. 2019-033 to accept Grants of Irrevocable Offers of Dedications of Sanitary Sewer Easements related to Job 6601 in Alamo 8. Adopt Resolution No. 2019-034 (1) accepting Grants of Easement (related to the Lafayette Sewer Renovations, Phase 13, District Project 8452) from the property owners at 3600 Powell Drive in Lafayette, and (2) authorizing execution of Quitclaim Deeds to the same property owners for abandoned easements related to the project 9. Authorize the General Manager to renew the existing Source Control and Pollution Prevention Support Services agreement with Mt. View Sanitary District (MVSD) (set to expire June 30, 2019) for three years, through June 30, 2022, with an option to extend for an additional three years 10. Authorize the General Manager to enter into a three-year professional consulting services agreement with Bienati Consulting Group, Inc. to facilitate Executive Management Team annual performance evaluations in an amount not to exceed $42,500 commencing June 6, 2019, and include an option to extend for two additional years subject to Board approval BOARD ACTION: Motion was made by Member McGill and seconded by Member Nejedly to adopt the Consent Calendar as recommended. Motion passed by unanimous vote. PUBLIC HEARINGS 11. Conduct a public hearing to receive public comment and consider adopting the following ordinances to become effective July 1, 2019: • Uncodified Ordinance No. 306 amending the Schedule of Capacity Fees, Rates, and Charges, replacing Ordinance No. 301 in accordance with District Code Chapter 6.12; and CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2019 Board Meeting Minutes-Book 67-Page 92 • Uncodified Ordinance No. 307 amending the Schedule of Environmental and Development-Related Fees and Charges, replacing Ordinance No. 302 in accordance with District Code Chapter 6.30 Senior Engineer Thomas Brightbill reviewed the presentation included with the agenda'material. President Williams opened a single public hearing for Item 11. There being no members of the public present, the public hearing was closed. BOARD ACTION: Motion was made by Member McGill and seconded by Member Causey to adopt Uncodified Ordinance No. 306 and make necessary findings to replace the "Schedule of Capacity Fees, Rates, and Charges" adopted pursuant to Ordinance No. 301 in accordance with District Code Chapter 6.12, effective July 1, 2019. Motion passed by unanimous vote. BOARD ACTION: Motion was made by Member McGill and seconded by Member Causey to adopt Uncodified Ordinance No. 307 and make necessary findings to replace the "Schedule of Environmental and Development-related Fees and Charges" adopted pursuant to Ordinance No. 302 in accordance with District Code Chapter 6.30, effective July 1, 2019. Motion passed by unanimous vote. 12. Conduct a public hearing to receive public comment and consider adopting the Fiscal Year 2019-20 District Budget for the following funds: Operations and Maintenance (O&M), Capital Improvement, Self-Insurance, and Debt Service This item was considered after Item 13, which was taken out of order. Mr. Bailey said there would be no overarching presentation on the proposed FY 2019-20 District Budget since it was presented at the May 16, 2019 Board meeting. However, he said staff was available to respond to questions. Director of Finance and Administration Philip Leiber provided a brief update on several minor, non-substantive revisions to the budget document which had been provided to the Board immediately prior to the meeting. He also said that given the Board's approval of Item 13 to replace the existing Enterprise Resource Planning (ERP) system, staff would request that the Board adopt the proposed FY 2019-20 District Budget and authorize staff to incorporate into the budget document the appropriate transfers required from the Capital Improvement Budget (CIB) project contingency fund to cover the ERP Replacement Project, District Project 8250. Upon discussion, it was agreed to bring back at the next meeting an item to approve the appropriate amendments to the Budget to incorporate the CIB project contingency transfers related to the ERP Replacement Project. President Williams opened the public hearing to consider adoption of the FY 2019- 20 District Budget. There being no members of the public present, the public hearing was closed. CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2019 Board Meeting Minutes—Book 67-Page 93 Member Causey stated that the discussion about using project contingency funds instead of reserve funds for the ERP Replacement Project was unclear to him and he would like staff to work with the Administration Committee to develop a standard operating procedure (SOP) for the use of project contingency funds. Mr. Leiber said the Board's authorization in that respect is governed by Board Policy No. BP 037— Delegation of Authority to the General Manager, which is excerpted on page 137 of the Budget document. He read the relevant portion of the excerpt: The CIB also includes two types of contingency funding of capital projects. The first, project contingency, is determined at the time of award of any project. The second, CIB contingency, can be used in any program and is intended to cover contingency projects and potential budget overruns. Member Causey also expressed his concerns about the increase in overtime and the Recycled Water Program budget, acknowledging that the latter is in the process of being evaluated by staff. President Williams and Member Pilecki agreed with Member Causey about his concerns regarding overtime. Mr. Bailey assured the Board that he has spoken with staff and will continue to monitor overtime use closely. a. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to find that the FY 2019-20 District Budget is exempt from the California Environmental Quality Act (CEQA). Motion passed by unanimous vote. As Executive Director of BACW4, President Williams recused himself from the following action and exited the Board Room. President Pro Tem McGill called for a vote on Item 12.b. b. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Nejedly to approve and adopt those portions of the FY 2019-20 District Budget related to BACWA, specifically, the cost of$389,000. Motion passed by unanimous vote of the Board Members present. [4-0-1; Williams absent.] President Williams returned to the Board Room and resumed chairing the meeting. C. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to adopt the: • Remaining portion of the FY 2019-20 O&M Budget, apart from the BACWA costs; • FY 2019-20 Capital Improvement Budget; • FY 2019-20 Self-Insurance Budget; and • FY 2019-20 Debt Service Budget. Motion passed by unanimous vote. CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2019 Board Meeting Minutes—Book 67-Page 94 d. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to authorize the General Manager to renew the District's expiring: • Excess liability insurance for a premium not to exceed $375,000; and • Property insurance for a premium not to exceed $175,000. Motion passed by unanimous vote. OTHER BOARD ACTION ITEMS 13. Consider authorizing the General Manager to take necessary actions to replace the existing Enterprise Resource Planning (ERP) system with a new Oracle Cloud ERP system, including a new Oracle Cloud Permitting/Community Development ERP module This item was taken out of order, immediately before Item 12. Mr. Bailey provided a detailed background history of the ERP procurement selection process. Information Technology Manager John Huie reviewed the presentation included with the agenda material during which a number of questions were asked regarding cloud versus onsite storage systems, the number of system administrators required, whether the Geographical Information System (GIS) will be integrated, the number of temporary employees needed for the implementation, maintaining record of all costs of the project (including staff time), and the anticipated completion date for implementation. Member Causey asked if staff was comfortable with the 20-percent project contingency. Mr. Leiber said he believes this amount to be reasonable, but staff will return to the Board if there is a need for additional funds. He added that ERP projects have inherent uncertainties, though this is a fixed price contract. Member Pilecki inquired about historical data in SunGard along with the currently active projects. Mr. Huie responded that at the recommendation of the Government Finance Officers Association (GFOA), it is not recommended to import significant historical information, but certain data such as active projects and beginning balances will be transferred. Member Causey expressed concern regarding the use of project contingency versus reserve funds prior to the project/fiscal year start. He requested that the Board consider removing the contingency item to a separate motion so that he could vote on it separately. CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2019 Board Meeting Minutes—Book 67-Page 95 a. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to authorize the General Manager to establish in Fiscal Year 2018-19 the ERP Replacement Project, District Project 8250, and take the following actions related to the Project: • Execute a professional consulting services agreement with Emtec Consulting Services LLC with a cost ceiling of$2,285,000 for implementation of a new Oracle Cloud ERP system; • Execute a contract with DLT Solutions, Inc. (as a reseller of Oracle software) for Oracle Cloud ERP software for a five-year term at cost of$350,000 annually, for a total of$1,750,000; • Execute a professional consulting services agreement with Oracle Consulting Services for implementation of a new Oracle Cloud Permitting/Community Development ERP module at a cost of $350,000; • Transfer up to $1,625,000 within the Capital Improvement Budget (CIB) to implement the Permitting/Community Development module and include a 20-percent Project contingency. Member Causey asked that the motion be amended to exclude and vote separately on the last bulleted item in the preceding motion. Member McGill obliged and amended his motion as follows: BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to authorize the General Manager to establish in Fiscal Year 2018-19 the ERP Replacement Project, District Project 8250, and take the following actions related to the Project: • Execute a professional consulting services agreement with Emtec Consulting Services LLC with a cost ceiling of$2,285,000 for implementation of a new Oracle Cloud ERP system; • Execute a contract with DLT Solutions, Inc. (as a reseller of Oracle software) for Oracle Cloud ERP software for a five-year term at cost of$350,000 annually, for a total of$1,750,000; • Execute a professional consulting services agreement with Oracle Consulting Services for implementation of a new Oracle Cloud Permitting/Community Development ERP module at a cost of $350,000; Motion passed by the following vote: AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: Nejedly ABSTAIN: None CENTRAL CONTRA COSTA SANITARYDISTRICT June 6, 2019 Board Meeting Minutes—Book 67-Page 96 BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to transfer up to $1,625,000 within the Capital Improvement Budget (CIB) to implement the Permitting/Community Development module and include a 20-percent Project contingency. Motion passed by the following vote: AYES: Members: McGill, Pilecki, Williams NOES: Members: Causey, Nejedly ABSTAIN: None b. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to find that the Project is exempt from California Environmental Quality Act (CEQA). Motion passed by unanimous vote of the Board. LEGISLATIVE MATTERS 14. Receive update on pending legislative matters and provide direction on priority legislation Member Pilecki asked for the status on AB 69 regarding Accessory Dwelling Units. Communications and Intergovernmental Relations Manager Emily Barnett provided a brief update on the status and advised the Board that it is anticipated the bill will be in the 2020 legislative session and she will return at a future meeting to move this bill to a "watch"position. BOARD ACTION: Received the update. REPORTS AND ANNOUNCEMENTS 15. General Manager—Announcements a. Announcements — June 6, 2019 1) Staff to inspect new rodder vehicle in Toronto, Canada from June 12- 14, 2019. Mr. Bailey made the following announcements at the meeting.- 2) eeting.2) He thanked the Board for their approval of the budget and to staff for their hard work on the budget. 3) He advised the Board that he made a presentation on May 24, 2019, at the Contra Costa Taxpayers`Association Breakfast Meeting in Concord. BOARD ACTION: Received the announcements. CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2019 Board Meeting Minutes—Book 67-Page 97 16. Counsel for the District a. Update on California Assembly Bill 626 (Quick) - conflict of interest laws concerning engineering consultants for public contracts District Counsel Kent Alm provided an update on AB 626. BOARD ACTION: Received the update. 17 Secretary of the District Ms. Young announced the following upcoming Committee meetings: Real Estate, Environmental & Planning (RESP) — Monday, June 10 at 9:00 a.m. Administration — Tuesday, June 18 at 8:30 a.m. BOARD ACTION: Received the announcements. 18. Board Members — Committee Minutes a. May 14, 2019 —Administration Committee — President Williams and Member McGill b. May 21, 2019 — Finance Committee — Chair Causey and Member Nejedly As Chair of the Finance Committee, Member Causey reported that the Committee recommended at the May 21 meeting to remove the Operations and Maintenance (O&M) detail by division from future monthly Financial Reports. He asked if the other Board Members had any objections to this suggestion. They did not. BOARD ACTION: Received the Committee minutes and provided consensus to remove the O&M detail in the monthly Financial Reports as recommended. 19. 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 Causey — No report. Member McGill • May 21-22, 2019 - California Special Districts Association (CSDA) Legislative Days in Sacramento • May 23, 2019 — East Bay Municipal District Utility Briefing Member McGill also provided a written report covering his announcements and other meetings. CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2099 Board Meeting Minutes—Book 67-Page 98 Member Neiedly_ — No report. Member Pilecki • May 21, 2019 - Diablo Valley Mayors' Summit in Walnut Creek • May 23, 2019 — East Bay Municipal District Utility Briefing • May 24, 2019 - Contra Costa Taxpayers' Association Breakfast Meeting in Concord President Williams • May 23, 2019 — East Bay Municipal District Utility Briefing BOARD ACTION: Received the reports and announcements. 20. 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 a. As mentioned in Item 92, Member Causey requested the Board consider creating an SOP for the use of project contingency funds and asked staff to bring an item to the Administration Committee. President Williams and Member McGill, as members of the Administration Committee, stated they would review the matter. Member Pilecki stated that he did not want to put any further constraints on staff with respect to the use of project contingency funds. b. Member Causey requested that staff provide an evaluation of the full cost of recycled water. Mr. Bailey responded that staff is working on this item and will bring it back within the next fiscal year. C. Member Nejedly requested the Board consider installing a dump station for recreational vehicles (RV's). The Board concurred; Mr. Bailey stated staff would agendize an item for Real Estate, Environmental and Planning (RESP) Committee to review CENTRAL CONTRA COSTA SANITARY DISTRICT June 6, 2019 Board Meeting Minutes—Book 67-Page 99 ADJOURNMENT The meeting was adjourned at 3:41 p.m. David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: �a 9, Katie v Secretary ot the District Central Contra Costa Sanitary District County of Contra Costa, State of California