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Home My WebLink AboutBOARD MINUTES 10-03-19 4 ;-omm CENTRALSAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 94553-4392 MINUTES* BOARD OF DIRECTORS.- DAVID IRECTORS.DAVID R.WILLIAMS President REGULAR BOARD MEETING MICHAEL R.MCGILL Board Room President Pro Tem Thursday, October 3, 2019 PAUL H.CAUSEY 1:30 p.m. JAMES A.NFJEDLY 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, Nejedly, Pilecki, McGill ABSENT.• Members: Williams PLEDGE OF ALLEGIANCE The Board, staff and audience joined in the Pledge of Allegiance. INTRODUCTIONS 1. New employees: • Ann Vallee, Community Affairs Representative, Administration Department, Communication Services and Intergovernmental Relations Division, effective September 3, 2019 • Kurnesha Anderson, Household Hazardous Waste Technician, Engineering and Technical Services Department, Environmental and Regulatory Compliance Division, effective September 30, 2019 BOARD ACTION: Welcomed Ms. Vallee and Ms. Anderson. PUBLIC COMMENT PERIOD No comments. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 67— Page 152 CENTRAL CONTRA COSTA SANITARY DISTRICT October 3, 2019 Board Meeting Minutes—Book 67-Page 153 REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. AWARDS AND PRESENTATIONS 2. Receive presentation by Contra Costa Water District (CCWD) Board President Lisa Borba on local water supply, including updated water rates and major construction projects Ms. Borba reviewed the presentation included with the agenda material. Member Pilecki suggested an ad hoc committee be formed to discuss the recycled water exchange project in order to provide guidance in an efficient manner and determine whether the project is viable. Ms. Borba opined that CCWD is not prepared to put together a committee at this time but fully agrees with the one water concept and would like to continue the path staff is currently pursuing. Board Members expressed their gratitude for Ms. Borba's time and presentation. BOARD ACTION: Received the presentation. CONSENT CALENDAR 3. Approve the following: a. September 19, 2019 Board meeting minutes 4. Approve expenditures dated October 3, 2019 5. Receive August 2019 Financial Statements and Investment Reports 6. Adopt Resolution No. 2019-060 in support of Water Professionals Appreciation Week October 5-13, 2019 7. Approve proposed Board Calendar for 2020 8. Approve proposed Board Member conference attendance for 2020 9. Confirm publication of a summary of uncodified District Ordinance No. 308 10. Adopt Resolution No. 2019-061 accepting a recorded Grant of Irrevocable Offer of Dedication of a Sanitary Sewer Easement, related to Job 6538, located in Walnut Creek 11. Adopt Resolution No. 2019-062 accepting an offer of dedication from a recorded Grant of Irrevocable Offer of Dedication of a Sanitary Sewer Easement and CENTRAL CONTRA COSTA SANITARY DISTRICT October 3, 2019 Board Meeting Minutes—Book 67-Page 154 accepting a portion of the offer of dedication of a sanitary sewer easement as depicted on Subdivision Map 9330, located in Moraga 12. Adopt Resolution No. 2019-063 accepting a portion of the offers of dedication of sanitary sewer easements in San Ramon as depicted on Subdivision Map 9325 13. Adopt Resolution No. 2019-064 accepting recorded Grants of Irrevocable Offers of Dedication of sanitary sewer easements as related to Jobs 6627 and 6636 in San Ramon, and Job 6653 in Alamo 14. Adopt Resolution No. 20_19-065 accepting recorded Grants of Irrevocable Offers of Dedication of sanitary sewer easements as related to Job 6549 in Pleasant Hill 15. Adopt Resolution No. 2019-066 accepting an offer of dedication of a sanitary sewer easement as depicted on Subdivision Map 9469 and accepting a recorded Grant of Irrevocable Offer of Dedication of a sanitary sewer easement as related to Job 6660 in Pleasant Hill 16. Adopt Resolution No. 2019-067 authorizing an amendment to an existing sanitary sewer easement as related to Job 6630 in San Ramon 17. Authorize the General Manager to execute a professional engineering services agreement in an amount not to exceed $450,000 with HDR, Inc. to provide on-call services for the Planning and Development Division for a three-year term 18. Authorize the General Manager to execute a professional engineering services agreement in an amount not to exceed $150,000 with Hazen and Sawyer, P.C. to provide on-call services for the Planning and Development Division for a three-year term 19. Authorize the General Manager to execute a professional engineering services agreement in an amount not to exceed $900,000 with West Yost Associates to provide on-call services for the Planning and Development Division for a three-year term Ms. Young advised the Board that Item 7., 2020 Board Calendar, had a minor correction for the Board Workshop in February 2020 that was published in the agenda materials. She provided the Board with an updated calendar, listing the Board Workshop on February 3, 2020. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Nejedly to adopt the Consent Calendar with the change to Item 7. Motion passed by unanimous vote of the Board Members present. [4-0-1; President Williams absent.] OTHER BOARD ACTION ITEMS 20. Receive Capital Improvement Budget Fiscal Year 2018-19 Pre-Audit Year-End Status Report CENTRAL CONTRA COSTA SANITARY DISTRICT October 3, 2019 Board Meeting Minutes—Book 67-Page 155 Capital Projects Division Manager Edgar Lopez reviewed the presentation included with the agenda material. Member Pilecki asked if there are enough staff and resources internally to meet the increasing level of capital improvement projects on the horizon. General Manager Roger S. Bailey stated that District staffing is at the optimal level and, in order to handle the workload, staff will augment with outside consulting services and contractors as needed. BOARD ACTION: Received the report. 21. Receive Fiscal Year 2018-19 Pre-Audit Year-End Financial Statement Summary Report; and consider alternatives for allocating (a) $9.78 million FY 2018-19 favorable budget variance, and (b) $1.25 million budgeted in FY 2019-20 toward employee-related unfunded liabilities This item was heard following Item 22.a. and 22.b., which were taken out of order. Director of Finance and Administration Phil Leiber reviewed the presentation included with the agenda material. There was a lengthy discussion on the different options presented by staff, including leaving funds in Sewer Construction, funding employee related liabilities (including Other Post-Employment Benefits (OPEB) and pension obligations), and establishing a rate stabilization fund. Member Pilecki questioned the flexibility of putting the monies in a rate stabilization fund. Mr. Leiber stated that there would be no loss in terms of flexibility and the Board may move the funds at its discretion, for any lawful use. In response to questions from Members Pilecki and Causey regarding OPEB funding and contributions to the Pension Prefunding Trust, Finance Administrator Todd Smithey explained that based on current valuation assumptions, the OPEB Trust is expected to be fully funded in 15 years if no further contributions are made. For this reason, he said no additional contribution to the OPEB trust was budgeted in the current fiscal year. He also confirmed Member Pilecki's understanding that it would not be detrimental if the OPEB Trust were to become fully funded because those funds remain available for the District's use; however, the same may not be said for excess contributions to the Contra Costa County Employees'Retirement Association (CCCERA) pension fund. Member Causey inquired about the potential issue of"superfunding"of the pension fund (where contributions are required to continue even when the pension funding level reaches 1009/6). Mr. Bailey said he plans to schedule a future Board discussion regarding policy issues related to optimal funding levels for the OPEB Trust and pension obligations (in CCCERA and in the Pension Prefunding Trust). CENTRAL CONTRA COSTA SANITARYDISTRICT October 3, 2019 Board Meeting Minutes-Book 67-Page 156 BOARD ACTION: Motion was made by Member Causey and seconded by Member Nejedly to receive the Fiscal Year 2018-19 Pre-Audit Year-End Financial Statement Summary Report and • Allocate the $9.78 million FY 2018-19 favorable budget variance as follows: o $5.92 million to the Sewer Construction Fund, o $1.25 million to the Pension Prefunding Trust, o $2.61 million to fund a Rate Stabilization Fund (RSF), after revising BP 017 - Fiscal Reserves specifying operation of the RSF, and • Allocate the $1.25 million budgeted in FY 2019-20 for employee-related unfunded liabilities to Central San's OPEB Trust. Motion passed by unanimous vote of the Board Members present. [4-0-1; President Williams absent.] Member Causey thanked staff for the opportunity to thoroughly explore the options for utilizing the favorable budget variance. As a Board Member, he said it allowed for a better understanding of the options available and the flexibility of those options. He stated that staff did an excellent job providing the information needed in order for the Board to make a policy decision. REPORTS AND ANNOUNCEMENTS 22. General Manager— Reports a. Receive quarterly informational list of pending Board and Standing Committee future agenda items This item was heard following item 20, which was taken out of order BOARD ACTION: Received the list. b- Receive Internal Audit Report on revenue controls Temporary Senior Internal Auditor Erica Brooks Peters reviewed the presentation included with the agenda material. Member Pilecki expressed concern about one of the recommendations in the audit regarding the Permit Counter not accepting cash payments. Mr. Bailey agreed and advised that staff will consider the audit recommendations and findings and will implement them as appropriate. In response to a question from President Pro Tem McGill, Ms. Brooks Peters said staff was very cooperative with the audit and agreed with the audit recommendations. CENTRAL CONTRA COSTA SANITARY DISTRICT October 3, 2019 Board Meeting Minutes—Book 67-Page 157 Member Causey requested that all future audits be presented to an appropriate Board Committee prior to being presented to the full Board. BOARD ACTION: Received the report. At this point in the meeting, President Pro Tem reverted to Item 21, which was taken out of order. C. Receive Fiscal Year 2018-19 Household Hazardous Waste Program Annual Report This item was heard following Item 21, which was taken out of order. Household Hazardous Waste Technician Winston Ingram reviewed the presentation included with the agenda material. Member Causey expressed concern about the unincorporated area of San Ramon regarding a recycling program. Household Hazardous Waste Supervisor David Wyatt advised the Board that San Ramon has begun a new solids waste and recycling contract and will be looking into a program in the upcoming months. BOARD ACTION: Received the report. 23. General Manager—Announcements a. Announcements — October 3, 2019 1) Transparency Certificate of Excellence Awarded to Central San 2) Report on Fiscal Year 2018-19 Capital Project Close-Outs 3) Outreach event scheduled for October 17, 2019 regarding Pump Station Upgrades Project, Phase 1, District Project 8436 No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 24. Counsel for the District — No report. 25. Secretary of the District Ms. Young announced the following upcoming Committee meetings.- Administration eetings:Administration — Tuesday, October 15 at 8:30 a.m. CENTRAL CONTRA COSTA SANITARY DISTRICT October 3, 2019 Board Meeting Minutes—Book 67-Page 958 Engineering & Operations— Tuesday, October 15 at 2:00 p.m. BOARD ACTION: Received the announcements. 26. Board Members — Committee Minutes a. September 16, 2019 — Real Estate, Environmental & Planning Committee— Chair Pilecki and Member McGill b. September 17, 2019 — Engineering & Operations Committee — Chair Nejedly and Member Pilecki C. September 24, 2019 — Finance Committee — Chair Causey and Member Nejedly BOARD ACTION: Received the Committee minutes. 27. 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 Causev Member Causey thanked staff for the recent opportunity to visit the Permit Counter to see how busy it is and to better understand customer and operational needs. Member McGill • September 21-25, 2019 —Water Environment Federation Technical Exhibition (WEFTEC) in Chicago, Illinois Member McGill also provided a written report covering his announcements and other meetings. Member Nejedly — No report. Member Pilecki — No report. President Williams —Absent. BOARD ACTION: Received the reports and announcements. 28. 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. CENTRAL CONTRA COSTA SANITARY DISTRICT October 3, 2019 Board Meeting Minutes—Book 67-Page 159 29. Board Members — Other Items a. Consider proposed changes to Contra Costa Special Districts Association (CCSDA) Bylaws As Board Representative to the CCSDA, President Pro Tem McGill requested Board Member comments with regard to the proposed Bylaw changes. He said he recommended that this Board approve the proposed changes. BOARD ACTION: The Board Members had no objection to the proposed Bylaw changes. EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS Member McGill requested staff to provide information to the Real Estate, Environmental & Planning (RESP) Committee regarding microplastics in the Bay. He referred to an article in the newspaper on October 2, 2019 stating that two sources of microplastics in the Bay include wastewater communities and stormwater. Environmental and Regulatory Compliance Division Manager Lori Schectel said she recently attended a symposium on microplastics in Berkeley and would be providing an update at the next RESP Committee meeting. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Items 30 and 31. RECESS TO CLOSED SESSION The Board recessed at 3:17p.m. to reconvene in closed session in the Caucus Room. Closed Session (Not video recorded) CLOSED SESSION 30. Conference with Legal Counsel - existing litigation pursuant to Government Code Section 54956.9(d)(1): • Contra Costa County Deputy Sheriffs Association, et al. v. Contra Costa County Employees' Retirement Association (CCCERA), et al., Court of Appeal, 1St Appellate District, Division Four, Case No. A141913 CENTRAL CONTRA COSTA SANITARY DISTRICT October 3, 2019 Board Meeting Minutes-Book 67-Page 960 Member Pilecki recused himself from Item 31. 31. Conference with Legal Counsel - existing litigation pursuant to Government Code Section 54956.9(d)(1): • Kappel v. Central Contra Costa Sanitary District, et al., Contra Costa County Superior Case No. C19-01012 RECESS TO OPEN SESSION The Board recessed at 3:44 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION None. ADJOURNMENT The meeting was adjourned at 3:45 p.m. Michael R. M , P.E. President Pro Tem of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: r• Katie Young Secretary of t District Central Contra Costa Sanitary District County of Contra Costa, State of California