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HomeMy WebLinkAbout03.a. Approve minutes of meeting held 05-06-2021 Page 1 of 11 Item 3.a. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT May 20, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: MAY6, 2021 BOARD MEETING MINUTES Attached are the draft minutes of the above Board meeting. ATTACHMENTS: 1. Draft Minutes of 05-06-21 meeting May 20, 2021 Regular Board Meeting Agenda Packet- Page 10 of 457 Page 2 of 11 CENTRAL SAN CENTRAL •NTRA COSTA SANITARY DISTRICT 5019 • MINUTES* BOARD OF DIRECTORS: TAD J.PILECKI President REGULAR BOARD MEETING DAVID R. WILLIAMS Multi-Purpose Room President Pro Tem Thursday, May 6, 2021 BARBARA D.HOCKETT 1.30m. MARIAH N LAURITZEN p' MICHAEL R.MCGILL 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 Pilecki at 1:30 p.m. Secretary of the District Katie Young called roll: PRESENT. Members: Hockett, Lauritzen (arrived during Public Comments), McGill, Williams, Pilecki ABSENT. Members: None PLEDGE OF ALLEGIANCE Ms. Young recited the Pledge of Allegiance. PUBLIC COMMENT PERIOD District customer Jim Cervantes thanked District staff, particularly Management Analyst Christina Gee for putting together the virtual Central San Academy, and stated it was well done and very informative. He addressed the Board, stating he was in favor of the pension funding proposal. He opined that the concept of borrowing at tax exempt rates to fund capital projects and then using the freed-up cash to decrease pension obligations is a great These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. May 20, 2021 Regular Board Meeting Agenda Packet- Page 11 of 457 Page 3 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes -Page 2 concept. He pointed out a red flag regarding the Contra Costa County Employees' Retirement Association (CCCERA) discount rate of 7%, stating that if this rate doesn't meet its target, Central San's unfunded actuarial accrued liability (UAAL) could reappear. He believes this rate is unrealistic and the District should set aside funds in a trust to mitigate the shortfall risk should the UAAL reappear in the future. REQUESTS TO CONSIDER MATTERS OUT OF ORDER President Pilecki advised that Closed Session Item 24 would be taken in conjunction with Item 13. CONSENT CALENDAR 1. Approve the following: a. April 13, 2021 Special Board meeting minutes b. April 15, 2021 Regular Board meeting minutes 2. Approve expenditures incurred March 18, 2021 through April 15, 2021 3. Set public hearing for May 20, 2021 at 1:30 p.m. to receive comments on declaring District-owned properties commonly known as "Lagiss", "County Quarry", and the "Triangle" as currently unneeded for District purposes and authorize staff to execute and administer lease agreements for the properties with terms not to exceed ten years 4. Set public hearing for June 3, 2021 at 1 :30 p.m. to receive public comment on adopting the Central San Budget for Fiscal Year 2021-22 5. Set public hearing for June 3, 2021, 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 updated salary schedule for all District job classifications effective April 18, 2021 7. Approve Phase 2 - Aeration Basins Diffuser Replacement and Seismic Upgrades Project in the Fiscal Year 2020-2021 Budget and funding from the Steam and Aeration Blower Systems Renovations, District Project 7349; find the project is exempt from the California Environmental Quality Act; and authorize the General Manager to amend an existing agreement with HDR, Inc. to include final design services in an amount not to exceed $1,856,000, increasing the cost ceiling to $5,326,000 8. Adopt Resolution No. 2021-020 authorizing execution of a real property agreement related to 111 EI Centro, Diablo, and authorizing staff to record documents with the Contra Costa County Recorder May 20, 2021 Regular Board Meeting Agenda Packet- Page 12 of 457 Page 4 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes-Page 3 9. Adopt Resolution No. 2021-021 authorizing execution of three quitclaim deeds for properties located on Autumn Trail Lane and Paulson Lane, Walnut Creek, as listed on Exhibit A to the resolution; and authorizing staff to record documents with the Contra Costa County Recorder 10. Adopt Resolution No. 2021-022 accepting a grant of easement for sanitary sewer and recycled water facilities from the Contra Costa County Flood Control District related to the Pleasant Hill Relief Interceptor, District Project 4985, and authorize staff to record documents with the Contra Costa County Recorder 11. Authorize the General Manager to execute a construction contract change order in the amount of $419,500 with Mountain Cascade, Inc. to include Tier 4 emissions control equipment for the Pump Station Upgrades, Phase 1, District Project 8436; and authorize a budget transfer in the amount of $420,000 from the Capital Improvement Budget Contingency BOARD ACTION: Motion was made by Member Hockett and seconded by Member Williams to adopt the Consent Calendar as recommended. Motion passed by unanimous roll call vote. OTHER BOARD ACTION ITEMS 12. Consider adopting Resolution 2021-023 to appoint the proposed 2021 Bond Offering Financing Team; authorize financing through the use of Certificates of Participation offered through a competitive sale; revise the Fiscal Year (FY) 2020-21 Sewer Service Charge (SSC) allocation ratios and direct remaining (April and June) distributions to Operations and Maintenance (O&M) Reserve fund; and specify the intent that FY 2020-21 spending be reimbursable from bond proceeds no earlier than 60 days prior to resolution adoption Director of Finance and Administration Phil Leiber reviewed the presentation provided in the agenda materials. The first several slides reviewed material presented at the March 25 financial workshop, while subsequent slides provided material on new developments on the financing team, structuring issues, and further analysis related to risks. PFM advisor, Sarah Hollenbeck reviewed the slides provided in the agenda materials regarding Historical Returns and the Probability of Success model. Mr. Leiber and Ms. Hollenbeck answered several questions from the Board Members. Mr. Leiber noted that the model built by PFM has been widely used within their firm for multiple clients, and staff has reviewed the structure, assumptions, and outputs regarding the overall risk. He stated that the ultimate savings realized will depend primarily on returns at CCCERA each year, and staff would be able to report on savings periodically. May 20, 2021 Regular Board Meeting Agenda Packet- Page 13 of 457 Page 5 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes -Page 4 Ms. Hollenbeck stated that the other factor affecting overall savings would be the tax-exempt borrowing rates which will fluctuate until the time of bond pricing, but rates have been fairly stable since the Board's initial conversations in March. It was noted that the amortization schedule of the bonds will be finalized after receiving information about the UAAL layers from CCCERA, and there may be minor refinements with figures when this information is received. Mr. Leiber reviewed the key transaction steps with the Board. There was a discussion about the type of bonds and the differences between them, specifically the use of Certificates of Participation (COP) versus revenue bonds. Mr. Leiber advised that the Board approved the dissolution of the Facilities Financing Authority (FFA) in January, but with the proposed debt issuance, staff is requesting that the FFA dissolution be reconsidered, and the resolution to dissolve be rescinded in order to proceed with the issuance of COP's. The question of pension super funding was also addressed. Mr. Leiber believes there is no significant risk of adverse consequences to having pension funding near or at 100%, but the Board does have the option at a future meeting to discuss sending CCCERA less than the amount needed to pay off 100% of the UAAL, and instead keep some funds in the Pension Prefunding Trust. BOARD ACTION: Motion was made by Member Williams and seconded by Member McGill to adopt Resolution No. 2021-023 that authorized staff to: 1. Appoint a financing team for the 2021 obligations, consisting of PFM Financial Advisors LLC and Jones Hall; 2. Finance through the use of Certificates of Participation with the District's Facilities Financing Authority; 3. Offer the securities through a competitive sale; 4. Revise the FY 2020-21 SSC allocation ratios and direct remaining distributions (April and June) to the O&M Reserve; and 5. Specify the intent that FY 2020-21 capital spending not earlier than 60 days prior to the date of adoption of this resolution be reimbursable by debt proceeds. Motion passed by unanimous roll call vote. May 20, 2021 Regular Board Meeting Agenda Packet- Page 14 of 457 Page 6 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes-Page 5 13. Find the apparent low bidder's bid to be non-responsive; award a construction contract in the amount of $4,001,000 to McGuire & Hester, the lowest responsive and responsible bidder for the Contractor Staging Improvements, District Project 7375; and • Include award of an additive bid item in the amount of $9,300 for the Recreational Vehicle Receiving Station; • Find the project is exempt from the California Environmental Quality Act; • Authorize an agreement amendment with Woodard & Curran, Inc. in the amount of$50,000, increasing the cost ceiling to $367,000; and • Authorize a budget transfer of$800,000 Director of Engineering and Technical Service Jean-Marc Petit reviewed the presentation included in the agenda material. Member McGill requested to read into the record that Central San is following its standard procedure for a bid rejection and that the procedure is very common in the industry. Ray Kong, legal counsel for Carone & Company, Inc. (Carone & Co.), stated that his client's letter after the bid opening acknowledging an error does not make the Carone & Co. bid non-responsive. In regard to staff's claim that Carone & Co's bid error creates a bid imbalance, he noted that there was also error and imbalance with McGuire & Hester's bid that were drastically similar to the type of percentage difference in Carone & Co's bid, and for this reason, McGuire & Hester's bid should also then be rejected. Kim Carone, attorney for McGuire & Hester, responded to Mr. Kong's comment and stated the Board has no other option than to adopt staff's recommendation to deem Carone & Co's bid as non-responsive as their error was of a material nature and award to McGuire & Hester. She stated that Carone & Co.'s stance to file a writ of mandamus will be an uphill battle, and that McGuire & Hester is the responsive and responsible low bidder and is ready to proceed with the work. After the public comments, Mr. Alm announced that a closed session would be held for Item 24 to discuss this matter, pursuant to Government Code Section 54957.7. The Board recessed at 2:42 p.m. to reconvene in closed session. The Board recessed closed session for Item 24 at 3:21 p.m. to reconvene in open session. Immediately following the closed session, a motion was made by Member Hockett and a second by Member Lauritzen to approve staff's recommendation. Mr. Alm requested for the benefit of the public, clarification on the motion provided. President Pilecki stated that staff's recommendation included Items 1 through 7 listed on the agenda. May 20, 2021 Regular Board Meeting Agenda Packet- Page 15 of 457 Page 7 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes -Page 6 BOARD ACTION: Motion was made by Member Hockett and seconded by Member Lauritzen to take the following actions for the Contractor Staging Improvements, District Project 7375: 1. Found the Project is exempt from CEQA; 2. Found the apparent low bidder, Carone and Company, Inc., to be non- responsive; 3. Awarded a construction contract in the amount of $4,001,000 to McGuire & Hester, the lowest responsive and responsible bidder; 4. Included award of the additive bid item in the amount of $9,300 for the construction of the Recreational Vehicle Receiving Station; 5. Authorized the General Manager to execute the Contract Documents subject to submittal requirements; 6. Authorized the General Manager to amend an existing agreement with Woodard & Curran, Inc. in the amount of $50,000, increasing the agreement cost ceiling to $367,000; and 7. Authorized a budget transfer of $800,000 from the FY 2020-21 CIB Contingency to the Project. Motion passed by unanimous roll call vote. COVID-19 PANDEMIC RESPONSE 14. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic BOARD ACTION: Received the update. LEGISLATIVE MATTERS 15. Receive update on pending legislative matters and provide direction on priority legislation BOARD ACTION: Received the update. REPORTS AND ANNOUNCEMENTS 16. General Manager— Announcements a. Announcements — May 6, 2021 No further announcements were made during the meeting. BOARD ACTION: Received the announcements. May 20, 2021 Regular Board Meeting Agenda Packet- Page 16 of 457 Page 8 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes-Page 7 17. Counsel for the District a. Report out on Board action taken during Closed Session at April 15, 2021 Regular Board meeting Mr. Alm stated that no reportable action was taken during the April 15 Closed Session. BOARD ACTION: Received the report. 18. Secretary of the District Ms. Young announced the following upcoming Board and Committee meetings: • Special Board Meeting (Closed Session) — Monday, May 10 at 2:00 p.m. • Engineering & Operations— Tuesday, May 11 at 11:00 a.m. • Special Finance— Monday, May 17 at 1:30 p.m. BOARD ACTION: Received the announcement. 19. Board Members — Committee Minutes a. April 12, 2021 — Real Estate, Environmental & Planning Committee — Chair McGill and Member Hockett b. April 20, 2021 — Engineering & Operations Committee — Chair Williams and Member Lauritzen C. April 27, 2021 — Finance Committee — Chair Pilecki and Member McGill 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 Hockett April 22-23, 2021 — Spring 2021 Central San Academy (virtual, no stipend) Member Lauritzen • April 22, 2021 — Spring 2021 Central San Academy (virtual, no stipend) Member McGill • April 22-23, 2021 — Spring 2021 Central San Academy (virtual, no stipend) • April 27, 2021 — National Association of Clean Water Agencies (NACWA) Water Week Policy Zoom-In (virtual, expenses) Member McGill also provided a written report covering his announcements and other meetings. May 20, 2021 Regular Board Meeting Agenda Packet- Page 17 of 457 Page 9 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes -Page 8 Member Williams • April 22, 2021 — Spring 2021 Central San Academy (virtual, no stipend) President Pilecki • April 22-23, 2021 — Spring 2021 Central San Academy (virtual, no stipend) 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 22. Receive update to determine whether to continue or terminate the immediate sewer replacement situation at EI Toyonal in Orinda Capital Projects Division Manager Edgar Lopez advised that the work has been completed and staff is waiting for receipt of the final invoice before terminating the emergency. Member McGill advised that he will be meeting with the City Manager and Mayor of Orinda and will include an update in his presentation regarding this situation. BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to continue the emergency. Motion passed by unanimous vote. REQUESTS FOR FUTURE AGENDA ITEMS None. MEETING OF FACILITIES FINANCE AUTHORITY 23. Adjourn Board meeting and reconvene as the Central Contra Costa Sanitary District Facilities Financing Authority (FFA) to consider adopting Resolution No. 2021-02 to rescind Resolution No. 2021-01 that would have dissolved the Authority The FFA convened and adopted Resolution No. 2021-02 to continue the FFA and rescinded Resolution No. 2021-01. BOARD ACTION: President Pilecki adjourned the Board meeting and, as FFA Chair, called to order a meeting of the FFA. Upon conclusion of business, the FFA Meeting was adjourned, and President Pilecki re-opened the Central San Board meeting. May 20, 2021 Regular Board Meeting Agenda Packet- Page 18 of 457 Page 10 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes-Page 9 ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) Mr. Alm announced that a closed session would be held for Item 25. RECESS TO CLOSED SESSION The Board recessed at 3:34 p.m. to reconvene in closed session. Closed Session (Not video recorded) CLOSED SESSION 24. Conference with Legal Counsel — Threat of Litigation — anticipated exposure to litigation pursuance to Government Code Section 54956.9(d)(2): This item was heard in conjunction with Item 13. • One Potential Case — Carone & Company, Inc. v. Central San. 25. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: • Roger S. Bailey, General Manager • 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 3:54 p.m. to reconvene in open session. REPORT OUT OF CLOSED SESSION No reportable action was taken. May 20, 2021 Regular Board Meeting Agenda Packet- Page 19 of 457 Page 11 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT May 6, 2021 Regular Board Meeting Minutes-Page 10 ADJOURNMENT The meeting was adjourned at 3:55 p.m. Tad J. Pilecki 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 May 20, 2021 Regular Board Meeting Agenda Packet- Page 20 of 457