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HomeMy WebLinkAboutBOARD MINUTES 02-04-21 CENTRAL SAN CONTRACENTRAL • IMHOFF PLACE, MARTINEZ, CA 9A553-A392 MINUTES* BOARD OF DIRECTORS.- TAD J PILECKI President REGULAR BOARD MEETING DAVID R. WILLIAMS Board Room Presiden t PYO Tent Thursday, February 4, 2021 BARBARA D.HOCKETT 1:30m. MARIAHN LAURITZEN p' MICHAEL R.MCGILL 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 Pilecki at 1.30 p.m. Secretary of the District Katie Young called roll: PRESENT(via videoconference): Members. Hockett, Lauritzen, McGill, Williams, Pilecki ABSENT: Members: None PLEDGE OF ALLEGIANCE Ms. Young recited the Pledge of Allegiance. 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 69 — Page 23 CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 24 CONSENT CALENDAR 1. Approve the following: a. January 14, 2021 Special Board meeting minutes b. January 21 , 2021 Regular Board meeting minutes 2. Review and recommend approval of expenditures incurred December 4, 2020 through January 14, 2021 3. Receive November 2020 Budget-to-Actual Financial Overview 4. Approve administrative overhead and benefits rate of 177% for Fiscal Year 2021-22 5. Adopt Resolution No. 2021-009 authorizing execution of an encroachment permit to Kinder Morgan in Walnut Creek for the installation of monitoring wells Ms. Young said that a minor correction had been made to page 5 of the January 14, 2021 Special Board meeting minutes (Item 1.a), which correction was reflected in a handout distributed prior to the meeting. She wanted to assure that any motion to adopt the Consent Calendar included a reference to those minutes as revised. BOARD ACTION: Motion was made by Member Williams and seconded by Member Lauritzen to adopt the Consent Calendar as recommended, including Item 1.a. as revised. Motion passed by unanimous roll call vote. COVID-19 PANDEMIC RESPONSE 6. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic Communications and Governmental Relations Manager Emily Barnett reviewed the presentation distributed prior to the meeting. BOARD ACTION: Received the update. HEARINGS 7. Conduct a hearing to consider appeal of a staff decision regarding a request to allow payment of $43,368 in Capacity Fees for 5133 Port Chicago Highway in Concord over a 15-year period Planning and Development Services Division Manager Danea Gemmell reviewed the presentation included with the agenda material concerning the appeal by Bolani Flatbread of a staff decision regarding payment of capacity fees. CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 25 Member McGill opined that staff should have authority to make decisions on these kinds of issues. Member Williams concurred. Ms. Gemmell advised that when staff brings forth the changes to Title 6 of the District Code, the Board can adjust the provisions on the capacity fees to allow for some additional staff authority if it so desired. Member Williams asked where the 6% interest rate originated, believing it to be high given the current environment. Ms. Gemmell stated that it is the current rate set in Central San's adopted fees and charges, but staff is currently looking to bring an alternative interest rate to the Board at a future date. Member Hockett inquired about the relationship between square footage and the amount and quality of the discharge and how that affects capacity fees. Senior Engineer Thomas Brightbill stated that the burden is measured in both flow and strength for which the District has standard factors as part of its capacity fee schedule. The factors are Residential Unit Equivalent (RUE) per thousand square feet. He noted that Bolani Flatbread declined a special study. In response to a question from Member Lauritzen, Ms. Gemmell explained that District Sewer Service Charges (SSC) are placed on the County property tax roll, and the District receives those funds in December and April. The District also places capacity fee installment payments on the tax roll so there are no billings. She further stated that the property owner receives the tax bill and the tenant reimburses the owner. President Pilecki advised that he concurs with Members Williams and McGill that the process needs to be simplified to allow staff authority to make these decisions within certain parameters. He was also interested in revisiting the interest rate charged for capacity fee installment payments. President Pilecki opened the public hearing. The founder of Bolani Flatbread, Nazi Sidiq, provided the company's background and current financial situation and thanked the Board for considering her appeal. Hearing no further comments, President Pilecki closed the hearing. Motion was made by Member McGill and seconded by Member Lauritzen to grant the request, waive the time of payment requirements in District Code Section 6.12.030, and allow the applicant to pay 30% down with the balance payable over fifteen years at an annual interest rate of 6%, resulting in a down payment of $13,010 and annual payments of$3,125. President Pilecki requested an amendment be considered to the original motion requesting the interest rate be adjusted based on the Local Agency Investment Fund (LAIF) rate plus I%. Amendment failed for lack of consensus. CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 26 Member McGill stated that the interest rate is included in the District Code and staff would need to bring back any requested change. Member Williams concurred and asked if the Board could choose to make a rate adjustment apply to all existing installment payment arrangements. Mr. Bailey responded yes. District Counsel Kent Alm stated that the interest rate is embedded in the District Code and adopted at 6%. Should the Board request the interest rate be set based on the floating LAIF rate, the installment payment amounts would have to be recalculated every year. Mr. Bailey stated that staff could bring back alternatives for the Board's consideration, including a variable approach or a fixed approach on the interest rate. President Pilecki requested the motion originally made by Member McGill and seconded by Member Lauritzen include a provision that if the interest rate were to be adjusted, the new rate will be retroactive for the Bolani Flatbread agreement. Members McGill and Lauritzen agreed to amend their motion accordingly. BOARD ACTION: Motion was made by Member McGill and seconded by Member Lauritzen to grant the request, waive the time of payment requirements in District Code Section 6.12.030, and allow the applicant to pay 30% down with the balance payable over fifteen years at an annual interest rate of 6%, resulting in a down payment of $13,010 and annual payments of $3,125; and, should staff adjust the interest rate lower in the future, the interest rate charged under the Bolani Flatbread installment payment arrangement will be retroactive to its inception. Motion passed by the following roll call vote: AYES: Members: Hockett, Lauritzen, McGill, Williams, Pilecki NOES: Members: None ABSENT: Members: None Mr. Alm stated that there are provisions in the District Code for staff to bring items back for adjustment, but staff has no authority to make these changes on its own. OTHER BOARD ACTION ITEMS 8. Discuss Board Member availability for Board and Committee meetings President Pilecki stated that he requested the General Manager add this item to the agenda to provide the Board an opportunity to provide constructive, positive feedback and guidance to staff to assist the Board with time management. With so many important decisions facing the Board in the coming year, including labor negotiations, return to work plans as the pandemic abates, the Watershed Nutrient Permit, the Refinery Recycled Water Exchange Project, the Solids Handling Project (the largest capital project in Central San's history), an annual capital expenditure of approximately$100 million, and a potential legal succession plan at the end of this CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 27 calendar year, he said it was critical to make the best use of the Board Members' availability, especially for those decisions when four affirmative votes are required. President Pilecki said meetings have gone on far too long in the past month or two and he was looking for input as to how that might be managed more efficiently. A lengthy discussion took place after which President Pilecki thanked the Board Members for their input. He summarized the takeaways as follows: a) Review which items should receive Board and Committee review; b) In response to a request from Member McGill, requested the District's teleconferencing policy be revisited once the Governor's Executive Order N- 29-20 (which suspended certain requirements of the Brown Act due to the ongoing COVID-19 pandemic) has expired to see if it can be utilized more broadly and, if so, would the Board be desirous of allowing such use; c) Minimize discussions that stray from what is agendized; d) Move immediately to a vote on motions that are in concert with the staff recommendation; e) In response to a request from Member Lauritzen, consider changing regular Board meeting dates to Mondays; and f) Schedule a special Board meeting on a date in between every other Board meeting between May 2021 and April 2022 for a closed session for labor negotiations (can be cancelled if not needed). BOARD ACTION: Discussed and provided input to staff. REPORTS AND ANNOUNCEMENTS 9. General Manager— Reports a. Receive overview of Bay Area Nutrient Regulations and the Refinery Recycled Water Exchange Project Resource Recovery Program Manager Melody LaBella and Regulatory Compliance Division Manager Lori Schectel reviewed the presentation included with the agenda material. There was a discussion about the cost comparison between raw water supplies and desalinated water supply. Mr. Bailey advised that, from the Board's standpoint, a decision will need to be made if the District should wait until nutrient mitigation is needed or should the District consider a partnership and the advantages that come along with it. Member McGill stated that he is all in related to this effort both to the specific effort (water exchange project) and general effort. He noted that it is very challenging in California to get a project like this done. He stated that he would like to use all of the District's wastewater in some productive matter. CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 28 Member Williams stated that he is a firm believer in the beneficiary pays. It is expensive and very complicated to produce recycled water and someone needs to pay for it. He opined that the District should take advantage of a partnership and should explore the window of opportunity. Member Hockett agreed with Member Williams and thanked Mr. Bailey for building a relationship with Contra Costa Water District, because in the past they were never amenable to such ideas. She was fully supportive of the project. Member Lauritzen agreed that if the District establishes partnerships, it will hopefully lead to other projects at the regional level. She noted that regulations will only get tighter, so it is best to be prepared. President Pilecki asked at what point the District would either need to decide to proceed or back away from the project. Mr. Bailey said that was a good question. As with anything a public agency undertakes, cost is a factor. He noted that further exploration with partners would provide more information. Director of Engineering and Technical Services Jean-Marc Petit advised that staff is currently in the process of doing a joint cost allocation with Valley Water. BOARD ACTION: Received the overview and provided input to staff. 10. General Manager—Announcements a. Announcements — February 4, 2021 1) 2020 Title V Clean Air Act Annual Report Submitted No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 11. Counsel for the District a. Report out on any Board action taken during Closed Session at January 21, 2021 Board meeting District Counsel Kent Alm reported that there was no reportable action taken. BOARD ACTION: Received the report. 12. Secretary of the District Ms. Young announced the following upcoming Committee meetings: CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 29 Real Estate, Environmental & Planning — Monday, February 8 at 9:00 a.m. Engineering & Operations — Tuesday, February 9 at 11:00 a.m. BOARD ACTION: Received the announcements. 13. Board Members — Committee Minutes a. January 19, 2021 — Engineering & Operations Committee — Chair Williams and Member Lauritzen b. January 26, 2021— Finance Committee — Chair Pilecki and Member McGill BOARD ACTION: Received the Committee minutes. 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 Hockett • January 15, 2021 - Meeting with representatives of Public Employees Union, Local #1 (virtual, stipend) • January 22, 2021 - Meeting with Management Support/Confidential Group (MS/CG) (virtual, stipend) • January 27-29, 2021 - California Association of Sanitation Agencies (CASA) Winter Conference (virtual, expenses) Member Lauritzen • January 13, 2021 - Meeting with representatives of Local #1 (virtual, stipend) • January 19, 2021 - Meeting with representatives of MS/CG (virtual, stipend) Member McGill • January 12, 2021 - Meeting with representatives of MS/CG (virtual, stipend) • January 25, 2021 - Board Liaison attendance at California Special Districts Association - Contra Costa Chapter (CCSDA) Meeting (virtual, stipend) • January 26, 2021 - Meeting with representatives of Local #1 (virtual, stipend) • January 27-29, 2021 - CASA Winter Conference (virtual, expenses) • January 28, 2021 - 2021 East Bay Leadership Series - 35th Annual East Bay USA, featuring Van Jones (virtual, expenses) Member McGill also provided a written report covering his announcements and other meetings. CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 30 Member Williams • January 13, 2021 - Meeting with representatives of MS/CG (virtual, stipend) • January 26, 2021 - Meeting with representatives of Local #1 (virtual, stipend) President Pilecki • January 11, 2021 - Meeting with representatives of MS/CG (virtual, stipend) • January 27, 2021 - Meeting with representatives of Local #1 (virtual, stipend) • February 2, 2021 - Board Liaison attendance at Pleasant Hill State of the City Address (virtual, no cost) 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 Refer to the list of items indicated in Item 8 above. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Item 16. RECESS TO CLOSED SESSION The Board recessed at 4:03 p.m. to reconvene in closed session. Closed Session (Not video recorded) CLOSED SESSION 16. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: • Roger S. Bailey, General Manager CENTRAL CONTRA COSTA SANITARY DISTRICT February 4, 2021 Board Meeting Minutes—Book 69-Page 31 • Kenton L. Alm, Esq., District Counsel • Teji O'Malley, Human Resources and Organizational Development Manager Employee Organizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS/CG) • Management Group RECESS TO OPEN SESSION The Board recessed at 5:12 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION No reportable action was taken. ADJOURNMENT The meeting was adjourned at 5:13 p.m. fi4 rb,& Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: 6 it, q6" Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California