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HomeMy WebLinkAboutBOARD MINUTES 05-21-20 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 21 , 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 Nejedly dedicated the moment of silence to the garbagemen who have continued to work hard throughout this pandemic. PUBLIC COMMENT PERIOD No comments. REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 68— Page 88 CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 89 CONSENT CALENDAR 1. Approve the following: a. April 30, 2020 Special Board meeting minutes b. May 7, 2020 Regular Board meeting minutes 2. Adopt Resolution No. 2020-017 authorizing the execution of a real property agreement for the property located at 29 Sharmar Court in Alamo, and authorizing staff to record documents with the Contra Costa County Recorder 3. Adopt updated salary schedule for all District job classifications effective April 18, 2020 4. Award a construction contract in the amount of$3,030,075 to Pacific Trenchless, Inc., the lowest responsive bidder for the Martinez Sewer Renovations, Phase 6, District Project 8458; consider exemption from the California Environmental Quality Act (CEQA); and authorize up to a 15-percent contingency 5. Award a construction contract in the amount of $1,222,200 to Bockmon & Woody Electric Company, Inc., the lowest responsive bidder for the Plant Control System Input and Output (1/0) Replacement Project — Phase 2, Secondary Process, District Project 733913; consider exemption from the California Environmental Quality Act (CEQA); and authorize up to a 15-percent contingency 6. Award a construction contract in the amount of $3,572,655 to Precision Engineering, Inc., the lowest responsive bidder for the Walnut Creek Sewer Renovations, Phase 14, District Project 8460; consider exemption from the California Environmental Quality Act (CEQA); and authorize up to a 15-percent contingency 7. Award a construction contract in the amount of $77,700 to D.W. Nicholson Corporation, the lowest responsive bidder for the Lower Orinda Pump Station Adjustable Speed Drive (ASD) Replacements, District Project 8442, consider exemption from the California Environmental Quality Act (CEQA); and authorize up to a 30-percent contingency BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Causey to adopt the Consent Calendar as recommended. Motion passed by unanimous roll call vote. COVID-19 PANDEMIC RESPONSE 8. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic Communications and Intergovernmental Relations Manager Emily Barnett reviewed the first portion of the presentation that was distributed prior to the meeting. CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 90 Director of Engineering and Technical Services Jean-Marc Petit and Senior Engineer Dan Frost reviewed the final portion of the presentation with an overview of the newly developed Central San COVID-19 Research Task Force. Member Causey suggested staff reach out to the San Ramon Mayor's Office to find out if they would be interested in a Central San presentation on the impacts of COVID-19 on the wastewater industry. President McGill stated that he also would be interested in offering such a presentation to his liaison cities. Member Causey thought school districts also may be interested in the information to assist with making decisions about reopening. BOARD ACTION: Received the update. OTHER BOARD ACTION ITEMS 9. Adopt new Goal 7: Agility and Adaptability and receive the final Strategic Plan for Fiscal Years 2020-22 General Manager Roger S. Bailey stated that when planning for the new Strategic Plan began no one knew about COVID-19. It was suggested by the Administration Committee that the Strategic Plan should incorporate something to reflect what the District is going through relative to the pandemic. A new Goal 7 was added to the Strategic Plan for this purpose; it takes a macro approach to the issue. Management Analyst Christina Gee reviewed the presentation included with the agenda material. Member Causey suggested re-evaluating the target goals for productivity considering the ongoing pandemic. He also said trying to maintain a flat operations and maintenance (O&M) budget was not reasonable given reduced revenue expectations for next year. Mr. Bailey stated his belief that staff ought to be ambitious, so the target goals relative to productivity ought to be achievable. In terms of the O&M budget, he said he understood some costs could increase because of uncertainties, but his intention was to manage that. If revenues do not come in as planned, quarterly adjustments will be made. In his opinion, trying to maintain the current O&M budget remains a good target. Staff strives to deliver the best service to customers with the understanding that some goals may not be met. Member Causey noted that the metrics for Goals 5 and 7 for capital expenditures as a percentage of capital budget including carry forward differed; Goal 5 stated 90% and Goal 7 stated 85%. Mr. Bailey explained the intention was that the metric for Goal 7 would supersede Goal 5 if issues similar to COVID-19 were to arise. He said an explanation would be added to the Strategic Plan to make that clear. BOARD ACTION: Motion was made by Member Williams and seconded by Member Pilecki to adopt new Goal 7: Agility and Adaptability and receive the CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 91 final Strategic Plan for Fiscal Years 2020-22. Motion passed by the following roll call vote: AYES: Members: McGill, Nejedly, Pilecki, Williams NOES: Members: Causey 10. Consider Sewer Service Charge relief program for schools and/or potentially other customer classes Mr. Bailey explained that at the previous Board meeting staff suggested that a Sewer Service Charge (SSC) relief program for schools be considered because schools are billed on a per capita basis and they have been closed since mid-March due to the shelter-in-place orders related to the pandemic. Planning and Development Services Division Manager Danea Gemmell reviewed the presentation included with the agenda material. Member Causey stated that the schools have been receiving State funding during the shelter-in-place because they are still in session due to distance learning. Given that most of the SSC goes toward infrastructure costs, he was concerned that the proposed relief program for schools was not justified. Mr. Bailey stated that Central San has been providing reduced service to the schools during the shelter-in-place so it did not seem rational to charge them for services during that period. Member Causey opined that the District needs to be very cautious with the implementing such a relief program because it sets a precedent. District Counsel Kent Alm stated that he understood both points of view, and both were valid. When the SSC rates were adopted, they were based on 180 days per year, but perhaps that did not fully take into account Member Causey's point about fixed costs. However, based on the wording of the SSC ordinance, providing SSC relief to the schools as outlined would not be prohibited. Member Williams said he understood Member Causey's viewpoint, but he believed it was a matter of how granular the calculations can be for every single cost. The main issue at this point is whether Central San should charge the schools for the actual amount of days they have used the system. Member Nejedly stated that the system is getting taxed either way, whether the children are at home or at school, and that he was undecided on the issue. In terms of the precedent-setting nature of providing SSC relief to the schools, Member Causey asked what it would cost if the students are unable to return to school in the fall. He asked if relief will be provided to other customer classes and at what point will the loss of revenue impact operations. Mr. Alm said it was important to understand that if the COVID-19 pandemic continues, there may be some consequences that will require Central San to rethink CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 92 the entire rate and fee structure because the current rate structure may not be appropriate. Mr. Bailey stated that the District needs to properly assess the causation of costs relative to the system and recover those costs appropriately. In the case of metered customers, there is a verifiable way to measure what goes into the system. In the case of the schools, that does not apply. That same rate assumption continues to be used year after year regardless of what happens. For those billed per capita, the District will continue that practice unless the Board instructs otherwise. Ms. Gemmell stated that staff was seeking direction from the Board to calculate rebates to the schools for the period they have been closed during the shelter-in- place. It was noted that staff used 28% as its best estimate of the number of days the schools have not been in session on campus. She continued that if the Board were to approve the proposal, staff would calculate each bill individually and send letters to the affected schools to inform them of the billing adjustment and that the difference would be used as a credit against next year's bill because those rates are currently being processed. Member Causey stated that he would recommend only giving 50% back to the schools so the District can recover a portion of the fixed costs. President McGill asked if any Board Member wished to make a motion on the proposal. Mr. Bailey suggested removing the 28% percentage from any proposed motion so that staff would have the flexibility to confirm the number of days each school has not been in session. Member Pilecki moved, as part of a program to provide SSC relief to customers due to the COVID-19 pandemic, to direct staff to calculate a SSC rebate for K-12 schools billed on a per-student basis due to the reduced number of school days attended during the shelter-in-place occurring in Fiscal Year 2019-20, and apply this refund to the Fiscal Year 2020-21 SSC. Member Williams seconded the motion. Member Williams then asked for clarification on Member Causey's 50% suggestion. Member Causey explained his reasoning for schools being responsible for fixed costs. Mr. Bailey stated that the issue of fixed costs associated with the rate structure is highly complex. Member Causey believed that moving forward too quickly and not recognizing the impact on all customer classes was inappropriate. In his belief, the issue required a lot more consideration due to the precedent setting nature of such actions. Member Pilecki stated that he agreed with Member Causey and Mr. Alm that the long-term effects of the pandemic could lead to a review of how the District structures its rates. At this time, however, schools are the only commercial customer charged on a per capita basis, all other commercial customers are charged based on flow. Those customers who are charged based on flow will receive a reduction CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 93 next year based on reduced flows this year, which does not take into account fixed costs. But absent the proposed relief program, schools would receive no break even though their flow has been reduced this year. President McGill requested Secretary of the District Katie Young re-read the motion. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Williams, as part of a program to provide Sewer Service Charge (SSC) relief to customers due to the COVID-19 pandemic, to direct staff to calculate a SSC rebate for K-12 schools billed on a per-student basis due to the reduced number of school days attended during the shelter-in-place occurring in FY 2019-20, and apply this refund to the FY 2020-21 SSC. Motion passed by the following roll call vote: AYES: Members: McGill, Pilecki, Williams NOES: Members: Causey, Nejedly Ms. Gemmell continued with the presentation regarding potential SSC relief to commercial/industrial customers due to the COVID-19 pandemic. She said the three choices would be to stay the course with respect to the previously adopted SSC rates for commercial/industrial customers for Fiscal Year 2020-21, provide an across-the-board rate reduction, or implement an application-based process to customers who can demonstrate they have been impacted by COVID-19. There was a lengthy discussion on the amount of 1 staff time necessary to manage such a program. Member Pilecki summarized the concept as being a timing issue, where Central San would reflect in advance the impact of any demonstrated reduction in flow due to COVID-19 this year, rather than reflecting it the following fiscal year when the billing for the current period is generated. Member Nejedly said he appreciated Member Pilecki's comments. At some point the Board needs to draw a line on the extent of providing such relief measures. Member Causey expressed extreme concern about the amount of work such a relief program would create for staff and the effect on the capital program and revenue loss. BOARD ACTION: Motion was made by Member Williams and seconded by Member Pilecki to stay the course with respect to the previously adopted SSC rates for commercial/industrial customers for Fiscal Year 2020-21. Motion passed by unanimous roll call vote. Member Causey suggested that the District be consistent and take into account recycled water users. There has been no consideration for reducing connection fees and he requested the Board consider whether the previously approved 3% recycled water rate increase remained appropriate. He also stated the Board should be cautious going forward as the public hearing on capacity fees and environmental CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 94 and development-related fees and charges will be forthcoming, and the Board will need to decide if such increases are appropriate given the current circumstances. REPORTS AND ANNOUNCEMENTS 11. General Manager— Reports a. Receive proposed Central San Fiscal Year 2020-21 Budget for the following funds: • Operations and Maintenance • Capital Improvement • Self-Insurance • Debt Service Mr. Bailey briefly highlighted some key features of the proposed Budget. Director of Finance and Administration Phil Leiber and Finance Manager Kevin Mizuno reviewed the presentation included with the agenda material regarding the Operations and Maintenance, Self-Insurance, and Debt Service portions of the proposed Budget and answered several questions from the Board Members. There was a discussion on the SSC allocation and rate stabilization accounts. Capital Projects Division Manager Edgar Lopez reviewed the presentation included with the agenda material regarding the capital improvement portion of the proposed Budget. Member Pilecki reaffirmed that staff will include a relative priority ranking of the capital projects included in the budget and which Mr. Lopez confirmed. Mr. Bailey advised that staff is working on a return-to-work program for the recycled water program this summer and will provide further information when available. Member Causey said that philosophically, the Board should decide on whether to provide SSC rate relief to recycled water customers. BOARD ACTION: Received the proposed Central San Budget for Fiscal Year 2020-21 and provided input to staff. 12. General Manager—Announcements a. Announcements — May 21, 2020 1) Public bidding for Filter Plant and Clearwell Improvements, Phase 1A, District Project 7361 CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 95 2) Public bidding for Influent Pump Electrical Improvements, District Project 7328 3) Public bidding for Lafayette Sewer Renovations, Phase 14, District Project 8459 4) Central San welcomes new employee Jennifer Woodhall as Buyer in the Purchasing Group 5) Temporary hiring back of retired employee Bruce Dobey to support Capital Projects Division No further announcements were made at the meeting. BOARD ACTION: Received the announcements. 13. Counsel for the District None. 14. Secretary of the District Ms. Young announced the following upcoming Committee meetings: • Real Estate, Environmental & Planning — Monday, June 1 at 9:00 a.m. • Administration Committee — Tuesday, June 2 at 8:30 a.m. - Canceled • Engineering & Operations Committee — Tuesday, June 2 at 2:00 p.m. BOARD ACTION: Received the announcements. 15. Board Members — Committee Minutes a. May 5, 2020 —Administration Committee — Chair Williams and President McGill a. May 12, 2020 — Administration Committee — Chair Williams and President McGill Chair Williams provided a brief summary of the productivity data item that was reviewed with the Committee on May 12 and wanted to assure employees that their safety and health is one of the Board's primary concerns. He reiterated that he was pleased with the overall data provided but that he was most interested in how best to measure the gap between the services provided to the public pre- and post-CO VID-19. C. May 12, 2020 — Engineering & Operations Committee — Chair Nejedly and Member Pilecki CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 96 BOARD ACTION: Received the Committee minutes. 16. 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 Causer • Attended San Ramon's Mayor Breakfast Member Neiedly — No report. Member Pilecki — No report. Member Williams — No report. President McGill • May 18, 2020 — California Special Districts Association — Contra Costa Chapter Meeting (CCSDA) via Zoom videoconference Member McGill also provided a written report covering his announcements and other meetings. BOARD ACTION: Received the reports and announcements. 17. 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 Member Causey requested the following future agenda items.- 1. tems.1. Consider providing rate relief to recycled water customers at the next Board meeting, specifically the previously approved 3% recycled water increase for next fiscal year. A consensus of the Board agreed with this request. 2. Consider directing staff to contact the San Ramon Mayor's Office to see if there is interest in Central San giving a presentation on wastewater in relation to the COVID- 19 pandemic. It was noted that this request did not require Board action and would be coordinated by staff. CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 97 3. Consider a future policy and/or philosophy related to customer rate relief to remove pressure from staff when dealing with customers in this regard. Upon further discussion, it was the consensus of the Board to agendize a discussion on this topic at a meeting in the near future. 4. Receive a report on the Large Diameter Inspection Program. Mr. Bailey replied that staff already planned to bring this item to the Board. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Item 18. RECESS TO CLOSED SESSION The Board recessed at 4:46 p.m. to reconvene in closed session in the Caucus Room. Closed Session (Not video recorded) CLOSED SESSION 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 RECESS TO OPEN SESSION The Board recessed at 5:29 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION None. ADJOURNMENT The meeting was adjourned at 5:30 p.m. Nr.(A,ad 9. LUL Michael R. McGill, P.E. President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California CENTRAL CONTRA COSTA SANITARY DISTRICT May 21, 2020 Board Meeting Minutes—Book 68-Page 98 COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California