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Home My WebLink About01.a. Approve minutes of meeting held 10-01-20 Page 1 of 9 Item 1.a. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT October 15, 2020 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: OCTOBER 1, 2020 BOARD MEETING MINUTES Attached are the draft minutes of the above Board meeting. ATTACHMENTS: 1. Draft Minutes of 10-01-20 meeting October 15, 2020 Regular Board Meeting Agenda Packet- Page 5 of 89 Page 2 of 9 CENTRAL SAN CONTRACENTRAL •STA SANITARY DISTRICT 5019 IMHOFF MINUTES* BOARD OF DIRECTORS: MICHAEL R.MCGILL President REGULAR BOARD MEETING TAD J PILECKI Board Room President Pro Tens Thursday, October 1, 2020 PAUL H.CAUSEY 1.30m. JAMES A.NEJEDLY �' DAVID R. WILLIAMS DRAFT 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 the researchers working long hours, trying to produce faster, more accurate testing and development of a vaccine, along with the volunteers participating in the vaccine trials. PUBLIC COMMENT PERIOD No comments. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. October 15, 2020 Regular Board Meeting Agenda Packet- Page 6 of 89 Page 3 of 9 CENTRAL CONTRA COSTA SANITARY DISTRICT October 1, 2020 Board Meeting Minutes-Page 2 REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. CONSENT CALENDAR 1. Approve the following: a. September 18, 2020 Regular Board meeting minutes b. September 21 , 2020 Special Board meeting minutes 2. Receive July 2020 Budget-to-Actual Financial Overview and Investment Portfolio Reports 3. Adopt updated salary schedule for all District job classifications effective August 20, 2020 4. Adopt Resolution Nos. 2020-036 through 2020-048 recognizing 2020 Employee Service Award recipients 5. Approve proposed Board Calendar for 2021 6. Confirm publication of summaries of uncodified District Ordinance Nos. 312 through 314 BOARD ACTION: Motion was made by Member Causey and seconded by Member Nejedly to adopt the Consent Calendar as recommended. Motion passed by unanimous roll call vote. COVID-19 PANDEMIC RESPONSE 7. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic Communication Services and Intergovernmental Relations Manager Emily Barnett reviewed the presentation distributed prior to the meeting. Ms. Barnett stated that the California Special Districts Association (CSDA) requested a call to action regarding the H.R. 7073 bill, proposed by Representative John Garamendi, which would allow for special districts to be eligible for federal assistance to aid in the fight against COVID-19. Staff is working with local officials to advocate for the inclusion of special districts. Member Pilecki inquired when the District will return to a quasi-normal operation and reopen in-person services to the public, including on-site Board and Committee meetings. General Manager Roger S. Bailey stated that he will continue to monitor October 15, 2020 Regular Board Meeting Agenda Packet- Page 7 of 89 Page 4 of 9 CENTRAL CONTRA COSTA SANITARY DISTRICT October 1, 2020 Board Meeting Minutes-Page 3 the situation and follow state and county guidelines and would remain open and flexible before making any adjustments. BOARD ACTION: Received the update. OTHER BOARD ACTION ITEMS 8. Approve expenditures incurred August 6 through August 31, 2020 Member Causey recused himself from voting on this item because he has consulted for a recipient of one or more checks on the expenditures list on matters unrelated to Central San. He left the videoconference. President McGill called for a motion on the item. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Nejedly to approve the expenditures as recommended. Motion passed by unanimous roll call vote of the Board Members present. [4-0-1; Causey absent.] Member Causey rejoined the videoconference. 9. Receive Fiscal Year 2019-20 Pre-Audit Capital Improvement Budget Year-End Status Report Capital Projects Division Manager Edgar Lopez reviewed the presentation included with the agenda material. Given the favorable bid climate in recent months, Member Pilecki asked what was the consolidated total of bids that have come in below the Engineer's Estimate. Mr. Lopez acknowledged that the District has been receiving favorable construction bids, but he did not have a total number at the meeting. However, he said one of the biggest factors of the carryover was the delay in projects as a result of COVID-19. He noted the budget variance will be explained further in the next agenda item. BOARD ACTION: Received the report. 10. Receive Fiscal Year (FY) 2019-20 Pre-Audit Year-end Financial Statement Summary Report; and consider alternatives for allocation of: • FY 2019-20 favorable budget variance of$10.48 million toward various potential uses; and • $1.25 million budgeted in FY 2020-21 for employee-related unfunded liabilities toward either pension or other post-employment benefit (OPEB) liabilities Director of Finance and Administration Philip Leiber reviewed the presentation included with the agenda material. October 15, 2020 Regular Board Meeting Agenda Packet- Page 8 of 89 Page 5 of 9 CENTRAL CONTRA COSTA SANITARY DISTRICT October 1, 2020 Board Meeting Minutes-Page 4 Member Pilecki commented on the excellent progress that has been made since 2012 in addressing Central San's unfunded pension and OPEB liabilities. Member Nejedly cautioned that pension funding should be monitored as it gets closer to the full-funding level given the issues that can arise in that situation. Member Williams inquired how much of the improvement in unfunded liabilities has been the result of market conditions. Mr. Leiber stated that staff has been working to gain a clear understanding of the factors impacting the improvement since 2012. He estimated that at least a third of the reduction in unfunded liabilities has been due to the additional contributions the Board has authorized. A more exact response would involve complex actuarial evaluations that may require the services of Bartel & Associates. Member Causey advised that the Finance Committee reviewed this item and stated that they were impressed with staff's presentation and the improvement in the reduction of unfunded liabilities. He cautioned, however, that the District needs to be careful and keep funds available in case of lost revenues due to the pandemic. BOARD ACTION: Motion was made by Member Causey and seconded by Member Nejedly to (1) direct staff to allocate the $10.48 million favorable budget variance from Fiscal Year 2019-20 as follows: $ 5.04 million to be retained in the Operations and Maintenance (O&M) Fund $ 3.19 million to be retained in the Sewer Construction Fund $ 2.15 million to the O&M Rate Stabilization Reserve Account $ 0.10 million to the Self-Insurance Fund Reserve $10.48 million and (2) direct the $1.25 million budgeted in this fiscal year toward employee- related unfunded liabilities to the Pension Prefunding Trust. Motion passed by unanimous roll call vote. REPORTS AND ANNOUNCEMENTS 11. General Manager— Reports a. Receive update on Fiscal Year 2020-21 Sewer Service Charge Revenues Senior Engineer Thomas Brightbill reviewed the presentation included with the agenda material. Member Causey stated that the District needs to be mindful with respect to potentially lower revenues from non-residential customers and schools, most of which are still on remote learning during the pandemic. He noted that although the District is covered by the Teeter Plan, there could be a reduction in property taxes in the future due to economic pressures. October 15, 2020 Regular Board Meeting Agenda Packet- Page 9 of 89 Page 6 of 9 CENTRAL CONTRA COSTA SANITARY DISTRICT October 1, 2020 Board Meeting Minutes-Page 5 BOARD ACTION: Received the update. 12. General Manager— Announcements a. Announcements — October 1, 2020 1) Area-Based Elections: Public Hearings to be held October 14 and November 4, 2020 at 6:00 p.m. to provide input on draft boundary maps for transition to area-based elections 2) Central San is hosting a secure drop box for ballots for November 3, 2020 election 3) Staff to present at California Water Environment Association (CWEA) Annual Conference and Exhibition in October 4) Senior Right-of-Way Agent Rick Hernandez retired effective September 17, 2020 No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 13. Counsel for the District 14. Secretary of the District Ms. Young announced the following upcoming Committee meetings: Real Estate, Environmental & Planning — Monday, October 12 at 9:00 a.m. Engineering & Operations — Tuesday, October 13 at 2:00 p.m. Administration meeting scheduled for October 13 has been moved to Tuesday, October 20 at 8:30 a.m. She also announced the following Special Board Meeting: Special Board Meeting (Public Hearing No. 3 regarding the transition to division- based elections) — Wednesday, October 14 at 6:00 p.m. BOARD ACTION: Received the announcements. 15. Board Members — Committee Minutes a. September 21 , 2020 — Real Estate, Environmental & Planning (REEP) Committee — Chair Pilecki and President McGill Member Pilecki noted that the REEP Committee requested staff provide an update on all District buffer properties. October 15, 2020 Regular Board Meeting Agenda Packet- Page 10 of 89 Page 7 of 9 CENTRAL CONTRA COSTA SANITARY DISTRICT October 1, 2020 Board Meeting Minutes-Page 6 b. September 22, 2020 — Finance Committee — Chair Causey and Member Nejedly 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 Causey • Announced that he will be attending the virtual Water Environment Federation Technical Exhibition and Conference (WEFTEC) next week • Attended the East Bay Municipal District (EBMUD) Briefing • Held a conversation with Jon Coleman, Director at EBMUD, to discuss recycled water Member Neiedly— No report. Member Pilecki • Attended the EBMUD Briefing Member Williams — No report. President McGill • September 21, 2020 — California Special Districts Association — Contra Costa Chapter Meeting (CCSDA) via Zoom videoconference President 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. October 15, 2020 Regular Board Meeting Agenda Packet- Page 11 of 89 Page 8 of 9 CENTRAL CONTRA COSTA SANITARY DISTRICT October 1, 2020 Board Meeting Minutes-Page 7 REQUESTS FOR FUTURE AGENDA ITEMS Member Causey requested an update on the Dublin San Ramon Services District— East Bay Municipal Utility District Recycled Water Authority (DERWA) temporary wastewater diversion project. Director of Engineering and Technical Services Jean-Marc Petit advised that an update was planned for the upcoming Real Estate, Environmental & Planning 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 Item 18. RECESS TO CLOSED SESSION The Board recessed at 2:37 p.m. to reconvene in closed session. Closed Session (Not video recorded) CLOSED SESSION 18. Closed session pursuant to Government Code Section 54957(a) — Threat to public services or facilities RECESS TO OPEN SESSION The Board recessed at 4:40 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION Item 18. — Mr. Alm stated that there was no reportable action. ADJOURNMENT The meeting was adjourned at 4:41 p.m. Michael R. McGill, P.E. President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California October 15, 2020 Regular Board Meeting Agenda Packet- Page 12 of 89 Page 9 of 9 CENTRAL CONTRA COSTA SANITARY DISTRICT October 1, 2020 Board Meeting Minutes-Page 8 COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California October 15, 2020 Regular Board Meeting Agenda Packet- Page 13 of 89