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Home My WebLink About19.a. Minutes-Administration Committee 04-14-2020 Page 1 of 6 Item 19.a. ,ek CENTRAL SAN SANITARYCENTRAL CONTRA COSTA , . May 7, 2020 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: APRIL 14, 2020 -ADMINISTRATION COMMITTEE - CHAIR WILLIAMS AND PRESIDENT MCGILL Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. Administration Committee Minutes 04-14-20 May 7, 2020 Regular Board Meeting Agenda Packet- Page 145 of 166 Page 2 of 6 CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9A553-A392 REGULAR MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA MICHAEL R.MCGILL President SANITARY DISTRICT TAD JPHECKI President Pro Tem ADMINISTRATION PAUL CAUSEY COMMITTEE H. JAMES A.NEJEDLY DAVID R, WILLIAMS MINUTES PHONE: (925)228-9500 FAX: (925)372-0192 www.centralsan.org Tuesday, April 14, 2020 8:30 a.m. 3rd Floor Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair David Williams (via videoconference) Member Michael McGill (via videoconference) Staff. Roger S. Bailey, General Manager Katie Young, Secretary of the District Kent Alm, District Counsel The following individuals participated in the meeting via videoconference: Ann Sasaki, Deputy General Manager (arrived at beginning of Item 4.a.) Phil Leiber, Director of Finance and Administration Jean-Marc Petit, Director of Engineering and Technical Services (arrived at beginning of Item 4.a.) Danea Gemmell, Planning and Development Services Division Manager Stephanie King, Purchasing and Materials Services Manager (left after Item 4.a.) Teji O'Malley, Human Resources Manager (arrived at beginning of Item 4.a.) Thomas Brightbill, Senior Engineer Bryan McGloin, Management Analyst Donna Anderson, Assistant to the Secretary of the District May 7, 2020 Regular Board Meeting Agenda Packet- Page 146 of 166 Page 3 of 6 Administration Committee Minutes April 14, 2020 Page 2 1. Notice This meeting was held in accordance with the Brown Act as in effect under the State Emergency Services Act, the Governor's Emergency Declaration related to COVID-19, and the Governor's Executive Order N-29-20 issued on March 17, 2020 that allowed attendance by Board Members, District staff, and the public to participate and conduct the meeting by teleconference, video- conference, or both. The agenda included instructions for options in which the public could participate in the meeting. 2. Call Meeting to Order Chair Williams called the meeting to order at 8:30 a.m. 3. Public Comments - No public comments. 4. Agenda Items a. Receive information from District Counsel on pros and cons of developing a "Buy America" policy Mr. Alm said this item was brought forth because the Committee had requested information on the merits of developing a `Buy America"policy for the purchase of goods and services at Central San. He recapped the conclusions set forth in his memorandum included with the agenda material that such a policy likely would be permissible; however, his recommendation was to be cautious when considering such a policy. Mr. Alm said the concept of a `Buy America"policy can become complicated in relation to State Revolving Fund (SRF) loans, which are part of the District's financing plan for specific large capital projects. A "Buy America"policy would have the greatest effect on purchases of bolts, nails and steel but would not apply to most manufactured goods, which represent the bulk of purchases for construction contracts. Ms. Gemmell said a poll of other agencies and municipalities found none had a "Buy America"policy. The provisions for SRF loans require the purchase of American-made steel, but no such restriction applies to mechanical devices, such as the wet scrubber. The loan documents would include a list confirming which items must be made in America. Mr. Petit added that SRF loan provisions require contractors to demonstrate that they have made their best attempt to purchase equipment from American manufacturers. If that is not possible, contractors may buy foreign-made products. May 7, 2020 Regular Board Meeting Agenda Packet- Page 147 of 166 Page 4 of 6 Administration Committee Minutes April 14, 2020 Page 3 President McGill noted the likelihood of an economic recession due to the widespread COVID-19 shelter-in-place order. He suggested that staff be prepared to take advantage of suitable opportunities, including grants, arising from any government stimulus packages once the shelter-in-place order is lifted. Chair Williams agreed and asked if Central San was still on track for securing the SRF loans as envisioned at the March 12, 2020 Financial Planning Workshop. Ms. Gemmell said plans are progressing as expected, the state is actively reviewing the District's status, after which contracts should be ready to sign. She said efforts are currently underway to try to increase the SRF loan beyond the previously confirmed amount of $89.6 million. Mr. Petit added that design work for the Solids Handling Facility Improvements project has been unaffected by the shelter-in-place order. President McGill noted that, when emerging from the 2008 recession, some capital projects at the District were accelerated to take advantage of the favorable bid climate. He asked if any projects, other than those planned as part of the coming fiscal year's Capital Improvement Budget (CIB), could be moved up if needed to qualify for potential grant funding or favorable pricing. Mr. Petit said staff intends to continue pushing the capital improvement program, both in terms of designing and awarding projects, and is prepared to adapt as necessary if the economy is favorable to new projects. Ms. Gemmell added that her staff is looking at the potential for grants and how they would be administered, should any such opportunities become available. Chair Williams recapped the discussion, stating that the Committee did not recommend moving forward with a `Buy America"policy, but supported the inclusion of`Buy America"provisions as necessary to comply with SRF loan provisions. Additionally, to the extent quick action becomes necessary to maximize opportunities from any potential stimulus package stemming from the economic consequences of the COVID-19 pandemic, staff has been taking the necessary steps to be ready. As a final comment, President McGill asked Mr. Alm to keep abreast of legislation and court cases regarding `Buy America"policies and provide the Committee with any updates as appropriate. COMMITTEE ACTION: Received the information. May 7, 2020 Regular Board Meeting Agenda Packet- Page 148 of 166 Page 5 of 6 Administration Committee Minutes April 14, 2020 Page 4 b. Receive information from District Counsel on recent Proposition 218 cases as related to the wastewater industry Mr. Alm recapped highlights from his memorandum included with the agenda material, after which President McGill said he appreciated Mr. Alm's statement in his memorandum's closing comments that "Central San's rate studies and staff work have always been of high quality."Given the trend toward increasing scrutiny by the courts in this arena, he emphasized the importance of being fair when determining rate methodologies and allocating rates among various customer classes. President McGill asked if Central San's process of annually reviewing each year's increase of the approved four-year sewer service charge rates provided an opportunity for challenging the rates in any given year. Mr. Alm said most likely not because Proposition 218 relates to increasing rates; the District's ordinance only allows for rates to be reduced, not increased. As recent court decisions indicate, however, that does not mean the methodology used to allocate the rate increases between customer classes is impervious to challenge. Chair Williams referenced a sentence in the second paragraph of Section ll. on p. 2 of Mr. Alm's memorandum: Since a majority protest has almost no chance of ever occurring, submitting a protest at a Prop. 218 hearing does not provide a ratepayer an adequate remedy to challenge the rates. Chair Williams said this reinforces his argument that agencies should do everything they can to make the protest process as streamlined and easy as possible to allow ratepayers to express their concerns. Mr. Alm said that from a legal perspective it would not hurt agencies to make the protest process easier. But, as indicated by the ruling in the Planter case cited in his memorandum, it probably would not make much difference. COMMITTEE ACTION: Received the information. 5. Announcements a. Mr. Bailey said the April 16, 2020 Board meeting will be held via video- conference for the first time, and four Board Members are expected to participate remotely. COMMITTEE ACTION: Received the announcement. May 7, 2020 Regular Board Meeting Agenda Packet- Page 149 of 166 Page 6 of 6 Administration Committee Minutes April 14, 2020 Page 5 6. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items 1) Mr. Bailey said staff is working on developing a COVID-19 "dashboard,"which will be a compilation of all aspects of the response effort. Once available, it will be sent to the Board Members and staff. COMMITTEE ACTION: Received the list. 7. Future Scheduled Meetings Tuesday, May 5, 2020 at 8:30 a.m. Tuesday, June 2, 2020 at 8:30 a.m. Tuesday, June 16, 2020 at 8:30 a.m. Ms. Young announced that a special Board meeting has been scheduled for April 30, 2020 at 1:30 p.m. in the event there is need for any action related to the COVID-19 pandemic. 8. Adjournment— at 9:44 a.m. May 7, 2020 Regular Board Meeting Agenda Packet- Page 150 of 166