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HomeMy WebLinkAboutBOARD MINUTES 05-07-20 CENTRAL SAN CONTRACENTRAL • IMHOFF PLACE, MARTINEZ, CA 9A553-A392 MINUTES* BOARD OF DIRECTORS: MICHAEL R.MCGILL President REGULAR BOARD MEETING TAD J PILECKI Board Room President Pro Tem Thursday, May 7, 2020 PAUL CAUSEY 1:30 p.m. ViISDADR wM 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, all 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(via videoconference): Members: Causey, Nejedly, Pilecki, Williams, McGill ABSENT: Members. None MOMENT OF SILENCE FOR ESSENTIAL WORKERS President McGill called for a moment of silence in honor of all essential workers during the COVID-19 pandemic. Member Pilecki dedicated the moment of silence to all of the individuals who have lost their lives due to COVID-19 and their families. 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 68— Page 76 CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 77 REQUESTS TO CONSIDER MATTERS OUT OF ORDER General Manager Roger S. Bailey requested to hear Item 14 before Item 11. CONSENT CALENDAR 1. Approve the following: a. April 16, 2020 Special Board meeting minutes 2. Approve expenditures incurred March 20,2020 through April 1, 2020 3. Review March 2020 Financial Overview and Investment Reports 4. Set public hearing for June 4, 2020 at 1:30 p.m. to receive public comment on adopting the Central San Budget for Fiscal Year 2020-21 5. Set public hearing for June 4, 2020, at 1:30 p.m. to receive public comment on: • Adopting an uncodified ordinance amending the Schedule of Capacity Fees, and • Adopting an uncodified ordinance amending the Schedule of Environmental and Development-Related Fees and Charges 6. Adopt Resolution No. 2020-013 authorizing execution of two quitclaim deeds for the property owners located at 1701 Poplar Drive and 2004 Magnolia Way in Walnut Creek, and authorizing staff to record documents with the Contra Costa County Recorder 7. Adopt Resolution No. 2020-015 accepting an offer of dedication of sanitary sewer easements in the City of Lafayette as depicted on Minor Subdivision Map 502-15, related to Job 6634, and authorizing staff to record documents with the Contra Costa County Recorder 8. Adopt Resolution No. 2020-016 accepting an offer of dedication of sanitary sewer easements in the City of San Ramon as depicted on Subdivision Map 9299, related to Job 6644, and authorizing staff to record documents with the Contra Costa County Recorder 9. Authorize the General Manager to amend an existing professional engineering services agreement with ArcSine Engineering in an amount not to exceed $350,000 for specialty electrical, instrumentation and controls inspection services for capital improvement projects 10. Authorize the General Manager to execute a professional engineering services agreement with Woodard & Curran for design services in an amount not to exceed $250,000 for the Contractor Staging Improvements, District Project 7375 Member Causey requested that Items 2 and 10 be pulled for further discussion. CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 78 BOARD ACTION: Motion was made by Member Williams and seconded by Member Pilecki to adopt Items 1, and 3-9 on the Consent Calendar as recommended. Motion passed by unanimous roll call vote. Regarding Items 2 and 10, Member Causey stated that he has consulted for Woodard & Curran on matters unrelated to Central San. Out of an abundance of caution, he said he needed to recuse himself from voting on those two items. He muted himself from the videoconference call. President McGill called for a roll call vote on the item. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Williams to approve Items 2 and 10 on the Consent Calendar as recommended. Motion passed by unanimous roll call vote of the Board Members present. [4-0-1; Causey absent.] Member Causey re joined the meeting via videoconference. COVID-19 PANDEMIC RESPONSE 11. 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 following Item 14. Communications and Intergovernmental Relations Manager Emily Barnett reviewed the presentation included with the agenda materials. In response to a question from Member Williams, Ms. Barnett explained the press release she had received prior to the Board meeting regarding COVID-19 testing availability to all Contra Costa County residents. She advised that she would forward the press release to the Board Members after the meeting. Member Causey stated that he received information that will be discussed at the State Water Resources Control Board meeting next week about flushable wipes being a problem in sewer systems. He stated sewer system overflows across the state have jumped significantly in the past couple of months, so he was especially excited about the Central San commercial on that topic that is being aired this month. BOARD ACTION: Motion was made by Member Williams and seconded by Member Causey to receive the update. Motion passed by unanimous roll call vote. CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 79 PUBLIC HEARING 12. Conduct public hearing for annual review of Board Member compensation and benefits No Board Members had any comments or questions on the material presented in the agenda packet. President McGill opened the public hearing. There being no public comments, the public hearing was closed. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Williams to leave Board Member compensation and benefits unchanged. Motion passed by unanimous roll call vote. OTHER BOARD ACTION ITEMS 13. In light of the continuing impact of the COVID-19 pandemic, a majority of the Board Members agreed to reevaluate the decision made at the April 16, 2020 meeting, after considering Central San's financial condition, to leave unchanged the 5.25% Sewer Service Charge (SSC) rate increase previously approved by the Board for Fiscal Year 2020-21 and scheduled to be implemented on July 1, 2020 Mr. Bailey stated that at the April 16, 2020 Board meeting, the Board formally requested that the Fiscal Year 2020-21 SSC rate increase previously approved by the Board be agendized for further discussion to reevaluate the decision made on April 16 to leave the rate unchanged. Planning and Development Services Division Manager Danea Gemmell reviewed the presentation included with the agenda material. Member Pilecki stated that the reason he requested the Board reevaluate the decision made at the April 16 meeting was that the Board did not have all of the information that is available now as to the severity of the impact of the COVID-19 pandemic on the economy, including rising unemployment rates. He said it is difficult to decide how to balance the financial hardships of ratepayers with the District's need to revitalize its aging infrastructure. Over the next 20 years, plans are underway to spend $2-3 billion on a large capital improvement program. This work is needed, as evidenced by all the assessments and analyses that staff and consultants have performed. In reviewing the March 2020 financial statements, Member Pilecki opined that projected favorable budget variances for the current fiscal year could adequately cover the amount the $5.1 million additional revenue anticipated from the 5.25% previously approved rate increase. As a way of providing customers some financial relief during this difficult time, he proposed leaving in place the incremental rate increase but, rather than having the ratepayers be billed on the tax roll for the increase, the District would utilize projected favorable budget variances to make up CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 80 the lost revenue. This action would still allow the capital improvement program to proceed, while providing ratepayers with savings in the amount of the incremental rate increase for the next fiscal year. Mr. Bailey stated Member Pilecki's suggestion could work. The Board could reaffirm its decision to leave rates as previously set and instruct staff not to put that incremental portion on the tax bill, which means the rate that would be reflected on the next tax bill would be last year's rate. Member Causey expressed concern that this approach would put an amount on the property tax bills that is not the true figure, and the following year it will appear as though the rate has jumped by 10% because the rate will rise from $598 to $660. Mr. Bailey advised that the net result of Member Pilecki's suggestion was a savings to each customer of$31 because for one year they will see no increase. Member Causey expressed concern about how such an action would be effectively communicated to ratepayers without being misinterpreted. Member Williams acknowledged that a $31 savings will not save any families who are hit hard by the economic downturn, but he believes it is important. He said he believed Member Pilecki's suggested approach was innovative and would not severely impact the capital improvement program. He also understood Member Causey's concerns from a communications standpoint but believed Central San's communications staff was up to the challenge. The net result of taking this action is essentially not utilizing the projected year-end favorable budget variances toward paying down unfunded liabilities, as has been done in the past. While unfortunate, he believed that is okay under the circumstances. President McGill agreed with Member Williams'comments. Member Nejedly stated that he had no comments. Member Causey said he understood what was trying to be accomplished. However, for a struggling business or residential customer, a $31 savings will not be of much help when they will still be billed at this fiscal year's SSC rate of$598. Struggling ratepayers have approached the District in the past and may continue to do so in the future if they are having difficulty paying. He also noted that the District will lose a substantial amount of commercial income next year as a result in lower water consumption this year. For those reasons, Member Causey was concerned that the proposed action has not been fully thought through. Mr. Bailey stated that he anticipates that to the extent commercial customers are billed on metered water consumption, those who have been closed will most likely reflect a lower amount of water during that period. But exactly what that means in terms of dollars would be difficult to project at this point. There was a lengthy discussion on the wording for a proper motion so that the ratepayers understood exactly what was being proposed given that a four-year SSC rate increase was approved via Ordinance No. 304 adopted April 18, 2019. District Counsel Kent Alm said there must be a majority vote of at least three Board CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 81 Members to not impose the rate increase that was already approved for the coming fiscal year. Absent any further action, the SSC will be $660 in FY 2021-22 per the Ordinance. Member Pilecki made a motion to provide ratepayers with an incremental rate increase holiday from the rate increase approved by the Board on April 16, 2020 for FY 2020-21. Member Williams seconded the motion. Mr. Alm clarified that the Board did not increase SSC rates in 2020; the increase was approved via ordinance in 2019 after going through the Proposition 218 process. It would be fine to say that pursuant to the power that the ordinance sets forth, a motion was being made to not actually impose the FY 2020-21 rate increase in the form of a rate increase holiday for FY 2020-21. Tad agreed to modify his motion accordingly. Member Williams asked for clarification on the revised motion and asked if the issue could be bifurcated between the rate increase and the amount to be collected. Mr. Alm said yes. Member Pilecki restated his motion, which was meant to maintain the FY 2020-21 rate increase as stated in Ordinance No. 304, but customers will not be asked to pay the incremental rate increase for that year, thereby providing some financial relief to customers. Member Williams seconded. Member Causey made a motion to table the motion to the next meeting to allow all Board Members to have better understanding of the proposal. Motion died for lack of second. President McGill asked Secretary of the District Katie Young to repeat the motion proposed by Member Pilecki. Ms. Young stated that the motion was to not impose the previously adopted rate increase in the form of a rate increase holiday for FY 2020-21. Member Williams said that, as stated, the motion sounded like the 5.25% incremental rate increase for FY 2020-21 was being rescinded. President McGill asked Mr. Alm to restate the motion. Mr. Alm said the motion would be that pursuant to Ordinance No. 304 adopted April 18, 2019 increasing the SSC rates for four years, the Board was choosing to not impose the rate increase for FY 2020-21 while leaving the entire rate structure in place. The effect would be to create a rate increase holiday for FY 2020-21. Member Williams said he would replace the word "impose"with "collect." Mr. Alm said that was acceptable. CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 82 BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Williams, to not collect the incremental rate increase for Fiscal Year 2020-21, while leaving the entire rate structure in place adopted by Ordinance No. 304, effectively creating a rate increase holiday for FY 2020-21. The motion passed by the following roll call vote: AYES: Members: McGill, Pilecki, Williams NOES: Members: Causey, Nejedly Upon conclusion of the voting, Mr. Bailey brought up the subject of SSCs for schools, which are charged on a per capita, per day basis. Since most schools have been out of session since mid-March due to the shelter-in-place orders, he asked if the Board wished staff to agendize an item for the next meeting to consider providing SSC rate relief to schools. Mr. Alm stated that is was appropriate to raise the issue now, but to consider it under future agenda items later in the meeting. Member Pilecki asked if it was for public schools only. Mr. Bailey responded that it would be for K-12 public and private schools but not colleges. 14. Receive update and authorize staff to proceed with recommended actions to initiate the procurement of a Power Purchase Agreement for a 1.75-megawatt solar energy project on Central San's Lagiss property This item was taken out of order, immediately following Item 10 on the consent calendar. Resource Recovery Program Manager Melody LaBella and consultant Russell Driver of ARC Alternatives reviewed the presentation included with the agenda material, after which they responded to numerous questions from Board Members. In response to a question from Member Causey, Ms. LaBella stated that the 1.75 mega-watt (MW) solar plan is based on the District's current grid power demands. It was noted that the District will plan to construct the solar array in a way that would not preclude future expansion on that property since the full property capability is an estimated 5 MW. In response to a question from Member Causey, Mr. Russell stated that, fundamentally, the purpose of a performance audit of existing solar installations is to reconcile the actual historical performance of the systems with what was promised and calculated in terms of real savings compared with what was presented to the Board when those systems were authorized. In doing so, Central San would receive a report of how the system has performed versus what was expected. Any performance issues can be raised with the vendor and under the Power Purchase Agreement (PPA) a list of operations and maintenance improvements can be requested to assure maximum performance. CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 83 Member Causey asked if the Real Estate, Environmental, and Planning Committee recommended this item. Member Pilecki confirmed that it had. Ms. LaBella clarified tax equity credit questions from Member Williams. Member Nejedly asked what the neighbors think of the solar project. Ms. LaBella stated that in consideration of comments received, the project is proposed to be as much out of the neighbors' view as possible and staff will continue communications with them throughout the project. In response to a question from Member Nejedly regarding maintenance of the grounds, Ms. LaBella stated that there is a lease with a rancher and the District's intentions are to continue these two uses going forward. If the project does move forward, Central San would require fencing around the solar array and the land would be managed the same way. Member Nejedly asked who would be responsible if there was a grass fire. Mr. Russell stated that the vendor would own the asset and would be responsible for the fenced area and for keeping the ground clear of grass. Member Pilecki requested that if the District proceeds with the Request for Proposal (RFP) that staff makes sure that the District retains any credits associated with renewable energy. Ms. Young read the following public comment questions received via email from Geoff Niswander: If a PPA with PG&E is under consideration, is there any plan to add a utility scale grid tied battery storage system down the road? This way the excess power would be stored locally and could be used for demand response. What are your thoughts on the matter? Ms. LaBella stated that the District had considered a battery storage system. Mr. Russell stated that the issue with a battery is finding an economic use for that power within the area where the battery is installed. It is difficult to make economic sense of the situation with the amount of generation capacity the District has with the cogeneration system already in place. He opined that in this particular circumstance, installing a battery in order to implement a demand response type of system where there is peak shaving to earn the money back is not really cost effective. BOARD ACTION: Motion was made by Member Causey and seconded by Member Pilecki to move forward with the following actions: • Begin the environmental review (CEQA) process and community outreach; • Amend ARC Alternatives' existing contract (under staff authority) to develop a Request for Proposal (RFP), support Central San through the CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 84 procurement process, and conduct a performance audit of Central San's existing solar arrays; and • Release an RFP for a Power Purchase Agreement for a 1.75-megawatt solar array on Central San's Lagiss Property. Motion passed by unanimous roll call vote. REPORTS AND ANNOUNCEMENTS 15. General Manager— Reports a. Receive information from District Counsel on recent Proposition 218 cases as related to the wastewater industry Mr. Alm provided an update on the Wilde v. Dunsmuir case mentioned in the memorandum that was provided in the agenda packet. BOARD ACTION: Received the information. 16. General Manager—Announcements a. Announcements — May 7, 2020 1) First quarter update on Central San's energy usage No further announcements were made during the meeting. BOARD ACTION: Received the announcement. 17. Counsel for the District None. 18. Secretary of the District Ms. Young advised that the Board will receive the Draft Fiscal Year 2020-21 Budget within in the next couple of days via delivery. She also announced the following upcoming Committee meetings.- Administration eetings.Administration — Tuesday, May 12 at 8:30 a.m. (Special) Engineering & Operations — Tuesday, May 12 at 2:00 p.m. Real Estate, Environmental & Planning — Monday, May 18 at 9.00 a.m. Finance — Tuesday, May 19 at 1:00 p.m. BOARD ACTION: Received the announcements. CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 85 19. Board Members — Committee Minutes a. April 14, 2020 — Administration Committee — Chair Williams and President McGill b. April 14, 2020 — Engineering & Operations Committee — Chair Nejedly and Member Pilecki C. April 20, 2020 — Real Estate, Environmental & Planning Committee — Chair Pilecki and President McGill d. April 21, 2020 — Finance Committee — Chair Causey and Member Nejedly BOARD ACTION: Received the Committee minutes. 20. 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 1) Attended City of San Ramon virtual breakfast meetings. 2) Attended a meeting with State Office of Sewer Service Overflow regarding impacts on reporting in the SEWIC system. 3) Listened to the oral argument on the Contra Costa County Employee Retirement Association (CCCERA) case. Member Nejedly — 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. 21. 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. CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 86 REQUESTS FOR FUTURE AGENDA ITEMS President McGill requested that the future agenda item, previously mentioned by Mr. Bailey at the end of Item 13, regarding SSC financial relief for schools be broadened to include other customer classes beyond schools. Member Causey requested real numbers. There were no objections from the Board to agendizing the item for a future meeting discussion. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held only for Item 24 (not Items 22 and 23). RECESS TO CLOSED SESSION The Board recessed at 3:47 p.m. to reconvene in closed session at 3:55 p.m. in the Caucus Room for those present and those attending the meeting via videoconference. Closed Session (Not video recorded) CLOSED SESSION 22. Conference with labor negotiators pursuant to Government Code Section 54957.6 to discuss COVID-19 pandemic 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 This item was not discussed in closed session. 23. 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 This item was not discussed in closed session. CENTRAL CONTRA COSTA SANITARY DISTRICT May 7, 2020 Board Meeting Minutes—Book 68-Page 87 24. Conference with Legal Counsel - existing litigation - significant exposure to 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 4:26 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION Mr. Alm reported as follows: Item 24. — There was no reportable action taken. ADJOURNMENT The meeting was adjourned at 4:27 p.m. k(,&,ad r, h6iG int 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 Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California