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HomeMy WebLinkAboutBOARD MINUTES 04-16-20 CENTRAL SAN CENTRAL •NTRA COSTA SANITARY DISTRICT 5019 • MARTINEZ, CA 94553-4392 MINUTES* BOARD OF DIRECTORS- MICHAEL R MCGILL President REGULAR BOARD MEETING TAD J.PILECKI Board Room President Pro Tem Thursday, April 16, 2020 PAUL CAUSEY 1:30 p.m. DAVID R.AMES A. EWILLDL IAMSIAMS Open Session — Board Room (Video recorded) NOTICE In accordance with the Governor's Executive Order N-29-20, which suspended certain requirements of the Brown Act due to the ongoing COVID-19 pandemic, some Board Members participated in this meeting via teleconference. Members of the public were provided options to participate in the meeting as provided on the agenda. ROLL CALL A regular meeting of the Board of Directors was called to order by President McGill at 1:30 p.m. Secretary of the District Katie Young called roll: PRESENT(in person): Members: Nejedly, Williams PRESENT(via videoconference): Members: Causey, Pilecki, McGill ABSENT. Members: None Moment of Silence: President McGill called for a moment of silence in honor of all essential workers during the COVID-19 pandemic. He requested that this occur at each meeting for the duration of the pandemic. PUBLIC COMMENT PERIOD No comments. First Urgency Item Added: General Manager Roger S. Bailey advised the Board of the need to add the following urgency item to the agenda which would require a four-fifths vote: These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 68— Page 60 CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 61 Consideration of a motion authorizing the General Manager to submit an application to the Federal government for payment of expenditures incurred due to public health emergency with respect to Coronavirus Disease 2019 (COVID-19) and to take such other actions as may be necessary to properly pursue such potential reimbursement of District costs He said the opportunity to submit the application arose the day before, after the agenda posting, and the deadline for submission is April 17, 2020. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Causey to find that the need to consider the above-described item arose after the agenda posting deadline of 72 hours before the regular meeting; there was an immediate need to take action before the next regularly scheduled Board meeting; and the item should be added to the agenda. Motion passed by unanimous roll call vote. Second Urgency Item Added: District Counsel Kent Alm advised that the following urgency item had come to his attention earlier that morning and would require a four-fifths vote to add it to the agenda for this meeting in closed session: Conference with Legal Counsel — Existing Litigation — pursuant to Government Code Section 54956.9: Alameda County Deputy Sheriff's Association v. Alameda County Employees' Retirement Association (State of California), et al., including Central Contra Costa Sanitary District, Real Party in Interest, California Supreme Court No. S247095 Mr. Alm said Central San is a participant in the litigation and he received an email that the matter had been set for oral argument in the California Supreme Court on May 5, 2020. Documents must be filed by April 20, 2020 as to who will be appearing on behalf of the petitioners, including Central San. He said he was seeking to add this urgency item to the closed session of this meeting in order to receive instruction from the Board. President McGill called for any public comments on this request, there were none. BOARD ACTION: Motion was made by Member Causey and seconded by Member Pilecki to find that the need to consider the above-described item arose after the agenda posting deadline of 72 hours before the regular meeting; there was an immediate need to take action before the next regularly scheduled Board meeting; and the item should be added to the agenda in closed session. Motion passed by unanimous roll call vote. REQUESTS TO CONSIDER MATTERS OUT OF ORDER There was a request to hear Item 6 immediately following the Consent Calendar. CENTRAL CONTRA COSTA SANITARY DISTRICT April 96, 2020 Board Meeting Minutes-Page 62 CONSENT CALENDAR 1. Approve the following: a. April 2, 2020 Board meeting minutes 2. Receive and accept the Annual Pollution Prevention Report 3. Adopt proposed revision to Board Policy No. BP 029 —Debt Management and Continuing Disclosure, effective immediately 4. Authorize temporary signature authority to Board Member James Nejedly to execute District documents on behalf of the Board and Board President for the duration of any COVID-19 pandemic shelter-in-place orders affecting Central San Member Causey requested that Item 4 be pulled for further discussion. BOARD ACTION: Motion was made by Member Williams and seconded by Member Causey to adopt Items 1-3 on the Consent Calendar as recommended. Motion passed by unanimous roll call vote. Regarding Item 4, Member Causey requested to expand the signature authority to include the signature items needed for Board Committees, such as the expenditures listing that is typically signed by the Finance Committee Members. It was further suggested that the Secretary of the District be granted authority to sign for Board Members in addition to Member Nejedly. BOARD ACTION: Motion was made by Member Causey and seconded by Member Pilecki to approve Item 4 on the Consent Calendar to authorize Member Nejedly and the Secretary of the District to execute District documents related to the Board and Committee meetings for the duration of any COVID-19 pandemic shelter-in-place orders affecting Central San. Motion passed by unanimous roll call vote. PUBLIC HEARINGS 5. Conduct a public hearing in accordance with Ordinance No. 304 to consider the financial condition of Central San with respect to the current need for the previously adopted 5.25% Sewer Service Charge (SSC) rate increase for Fiscal Year (FY) 2020-21 This item was heard immediately following Item 6. Director of Finance and Administration Philip Leiber reviewed the first portion of the presentation included with the agenda materials regarding the impact on Central San of a potential extension of the propdrty tax payment deadline due to the ongoing COVID-19 pandemic. Planning and Development Services Division Manager CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 63 Danea Gemmell reviewed the second portion of the presentation, which recapped the March 12, 2020 Board Financial Planning Workshop. In response to a question from Member Pilecki, Ms. Gemmell stated that after speaking with the City of Concord last week, they do not anticipate any problems with making their payments due to COVID-19. There was a lengthy discussion on the revenue received from the rate increase going to the capital or the operations and maintenance (O&M) fund. Mr. Leiber advised the Board that staff would make the numbers clear in the upcoming budget regarding the slight increase in the O&M fund and the reason for the capital fund receiving all of the rates revenue. It was noted that graphs will be included that will show the total and existing Sewer Service Charge (SSC) to provide more clarification of how the monies are allocated. Member Causey stated that the O&M budget is not flat. Member Pilecki inquired about the funds available through State Revolving Funds (SRF) due to COViD-19. Ms. Gemmell stated that it is a separate resource and specific to the District and the funds cannot be redirected. Member Pilecki asked if the District would be able to continue its capital program with 90% of the capital budget if the Board were to decide not to impose the coming year's 5.25% rate increase. Mr. Bailey replied that if that was the decision of the Board, an adjustment to the Capital Improvement Program (CIP) would need to occur, and some projects would have to be delayed. President McGill opened the public hearing. There being no public comments, the public hearing was closed. Member Pilecki stated that, due to the current COVID-19 impacts and not knowing how significant those impacts may be in the future, he proposed the Board choose not to raise rates this year. Member Williams asked if rates were not raised this year, would the District need to make up the difference in subsequent years. Mr. Bailey responded that was an option. Member Causey agreed that Member Pilecki's concern was appropriate, but he was more inclined to leave the approved rate increase in place for the coming year and see what the future holds as it relates to the longer-term impacts of COVID-19. Member Nejedly expressed concern about the potential length of the pandemic impacts but was willing to adjust the rates now and see what the future holds. Should customers require assistance in the future, the Board can take that into consideration at that time. CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 64 BOARD ACTION: Motion was made by Member Causey and seconded by Member Nejedly to leave unchanged the 5.25% Sewer Service Charge rate increase previously approved by the Board for Fiscal Year 2020-21. Motion passed by the following roll call vote: AYES: Members: Causey, McGill, Nejedly, Williams NOES: Members: Pilecki ABSTAIN: Members: None OTHER BOARD ACTION ITEMS 6. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic and consider any additional steps to be taken This item was heard immediately prior to Item 5. Communications and Intergovernmental Relations Manager Emily Barnett reviewed the presentation that was distributed prior to the meeting. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Nejedly to receive the update. Motion passed by unanimous roll call vote. 7. Award a construction contract in the amount of$4,447,000 to Power Engineering Construction Company, the lowest responsive bidder for the Outfall Improvements - Phase 7, District Project 7353; authorize up to a 15-percent contingency; and authorize the General Manager to transfer$700,000 within the Capital Improvement Budget Director of Engineering and Technical Services Jean-Marc Petit reviewed the presentation included with the agenda material. It was noted that Power Engineering Construction Company(Power Engineering) is aware of the COVID-19 modified work requirements and was responsive to a two- step Notice to Proceed(NTP) approach. It was indicated that the two-step NTP process would require no change in scope, contract time, or price. Member Pilecki asked about the confined space entry associated with the project and the ability for Power Engineering to acquire the necessary personal protective equipment in light of current resources due to the pandemic. Mr. Petit stated that he has spoken with Power Engineering regarding this matter and the contractor already has a safety plan in place and is prepared for confined space entries with the proper equipment. Mr. Alm added that there have been numerous discussions regarding this project and that he and staff created a list of designated essential projects that should proceed during the pandemic. He stated that there may be a risk for potential work CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 65 claims but all parties involved are understanding of the additional coordination that may be needed to complete the work due to the pandemic impact. Member Causey asked what would occur should the shelter-in-place order continue and the second NTP could not be issued. Mr. Petit responded that as soon as the contractor has the pipe repair materials, the NTP would be issued. He continued that staff will request the contractor submit the safety documentation and inform the contractor to proceed. There have been multiple discussions with Power Engineering regarding the uncertainty of the pandemic and staff is confident with the outcome. Member Causey requested the first two items (award of the construction contract and contingency authorization) be voted on separately from the budget transfer. BOARD ACTION: Motion was made by Member Causey and seconded by Member Nejedly to award a construction contract to Power Engineering Construction Company in the amount of$4,447,000 for the Outfall Improvements - Phase 7, District Project 7353; and authorize the General Manager to execute the contract documents subject to submittal requirements and include up to a 15-percent contingency. Motion passed by unanimous roll call vote. Regarding the project funding, Member Causey stated that he was concerned about having enough in the contingency fund to cover this project. He was, therefore, uncomfortable with the recommended approach. BOARD ACTION: Motion was made by Member Williams and seconded by Member Pilecki to authorize the General Manager to transfer$700,000 within the Capital Improvement Budget. Motion passed by the following roll call vote: AYES: Members: McGill, Nejedly, Pilecki, Williams NOES: Members: Causey ABSTAIN: Members: None 8. Adopt Resolution of Application No. 2020-012 to initiate Contra Costa County Local Agency Formation Commission (LAFCO) boundary reorganization proceedings for District Annexation 186, including the finding that the Board has reviewed and considered the Environmental Impact Report (EIR)for Magee Preserve and agrees with the findings of the Town of Danville (the Lead Agency) pertaining to a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program to annex one annexation area in Danville to Central San and/or East Bay Municipal Utility District Ms. Gemmell reviewed the presentation included with the agenda material. BOARD ACTION: Motion was made by Member Causey and seconded by Member Pilecki to adopt Resolution of Application No. 2020-012 to CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 66 initiate Contra Costa County LAFCO boundary reorganization proceedings for District Annexation 186, and find that the Board has reviewed and considered the EIR for Magee Preserve and agrees with the findings of the Town of Danville (the Lead Agency) pertaining to a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program to annex one annexation area in Danville to Central San and/or East Bay Municipal Utility District. Motion passed by unanimous roll call vote. 9. Adopt Resolution No. 2020-013 establishing a new two-year pilot Septic-to-Sewer (S2S) Financing Program effective July 1, 2020 to encourage property owners to abandon their septic tanks and connect to the sewer system to protect public health and the environment Member Causey asked the Board to consider delaying establishment of the pilot S2S Financing Program given the uncertainties surrounding the COVID-19 pandemic. He made a motion to defer the item for one year. Motion died for lack of second. Member Williams said he tended to agree with Member Causey's request for a delay, and suggested staff bring the item back for consideration when it deems appropriate, not necessarily in one year. President McGill said he believed the proposed Program to be worthwhile, but agreed it was not time sensitive. He moved that staff bring the item back at an appropriate time. Member Causey seconded that motion. Members Nejedly and Pilecki agreed, stating that it could be a great program to help remove some of the septic tanks within Central San's service area. BOARD ACTION: Motion was made by President McGill and seconded by Member Causey to defer establishing a pilot S2S Financing Program for the time being and allow staff to determine an appropriate time to bring back the item for Board consideration. Motion passed by unanimous roll call vote. First Urgency Item Added Earlier in the Meeting: Ms. Young announced that it would be appropriate for the Board to consider the first urgency item that was added at the beginning of the meeting as follows: Consider a motion authorizing the General Manager to submit an application to the Federal government for payment of expenditures incurred due to public health emergency with respect to Coronavirus Disease 2019 (COVID-19) and to take such other actions as may be necessary to properly pursue such potential reimbursement of District costs There being no discussion, the following action was taken: BOARD ACTION: Motion was made by Member Williams and seconded by Member Pilecki to authorize the General Manager to submit an application to the Federal government for payment of expenditures incurred due to public CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 67 health emergency with respect to Coronavirus Disease 2019 (COVID-19) and to take such other actions as may be necessary to properly pursue such potential reimbursement of District costs. Motion passed by unanimous roll call vote. REPORTS AND ANNOUNCEMENTS 10. General Manager— Reports a. Receive informational list of pending Board and Standing Committee future agenda items BOARD ACTION: Received the list. 11. General Manager—Announcements a. Announcements—April 16, 2020 1) General Manager authorized contract, agreements, etc. — First Quarter 2020 2) Update on Personnel Actions— First Quarter 2020 No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 12. Counsel for the District None. 13. Secretary of the District Ms. Young announced the following upcoming Committee meetings: Real Estate, Environmental& Planning— Monday, April 20 at 9:00 a.m. Finance— Tuesday, April 21 at 2:00 p.m. She also announced that a special Board meeting was scheduled for Thursday, April 30, 2020 at 1:30 p.m. if needed regarding the COVID-19 pandemic response. 14. 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 Member Causey attended a virtual Mayor's Conference for San Ramon and a virtual California Association of Sanitation Agencies (CASA) conference regarding a water quality compliance workshop. CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 68 Member Neiedly — No report. Member Pilecki — No report. Member Williams No report. President McGill President McGill provided a written report covering his announcements and other meetings. BOARD ACTION: Received the reports and announcements. 15. 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 None. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7 District Counsel Kent Alm announced that a closed session would be held for Items 16 through 19, in addition to the second urgency item added at the beginning of the meeting. RECESS TO CLOSED SESSION The Board recessed at 3:23 p.m, to reconvene in closed session at 3:35 p.m. in the Third Floor Executive Conference Room for those present in person and those attending the meeting remotely via videoconference. Closed Session (Not video recorded) CLOSED SESSION 16. Conference with labor negotiators pursuant to Government Code Section 54957.6 to discuss COVID-19 pandemic CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 69 District Negotiators: • Roger S. Bailey, General Manager • Ann Sasaki, Deputy General Manager • Teji O'Malley, Human Resources Manager Counsel: • District Counsel • Labor and Employment Counsel Employee Organizations: • Employees' Association Public Employees Union, Local One • Management Support/Confidential Group (MS/CG) • Management Group 17. Closed session pursuant to Government Code Section 54957(a)—Threat to public right of access to public services or public facilities due to COVID-19 pandemic 18. Conference with Legal Counsel —anticipated litigation — significant exposure to litigation pursuant to Government Code Section 54956.9(b): • One Potential Case —California River Watch 19. With respect to every item of business to be discussed in closed session pursuant to Section 54956.95: LIABILITY CLAIMS Claimant: Lauren White, TTE Agency claimed against: Central San Second Urgency Item Added Earlier in the Meeting Conference with Legal Counsel — Existing Litigation — pursuant to Government Code Section 54956.9: • Alameda County Deputy Sheriff's Association v. Alameda County Employees' Retirement Association (State of California), et al., including Central Contra Costa Sanitary District, Real Party in Interest, California Supreme Court No. S247095 RECESS TO OPEN SESSION The Board recessed at 4:29 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION Mr. Alm reported as follows: Item 16. —Instructions were given to the District Negotiators. Item 17. —No reportable action was taken. Item 18. —No reportable action was taken. CENTRAL CONTRA COSTA SANITARY DISTRICT April 16, 2020 Board Meeting Minutes-Page 70 Item 19. —Instructions were given to District Counsel. ADJOURNMENT The meeting was adjourned at 4:30 p.m. ll k"l_ �2�4(1. Michael R. McGill, P.E. President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie YouncJ Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California