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HomeMy WebLinkAboutBOARD MINUTES 06-03-21 CENTRAL SAN CONTRACENTRAL • IMHOFF PLACE, MARTINEZ, CA 9A553-A392 MINUTES* BOARD OF DIRECTORS.- TAD J PILECKI President REGULAR BOARD MEETING DAVID R. WILLIAMS Multi-Purpose Room Presiden t Pro Tent Thursday, June 3, 2021 BARBARA D.HOCKETT 1:30m. MARIAHN LAURITZEN p' MICHAEL R.MCGHL Open Session — Multi-Purpose 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 110 CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 2021 Board Meeting Minutes—Book 69-Page 111 CONSENT CALENDAR 1. Approve the following: a. May 20, 2021 Regular Board meeting minutes b. May 24, 2021 Special Board meeting minutes 2. Approve expenditures incurred April 15, 2021 through May 13, 2021 3. Receive February 2021 Budget-to-Actual Financial Overview 4. Receive Quarterly Financial Review for quarter ended March 31, 2021 5. Set public hearing on July 1 , 2021 at 1:30 p.m. to consider establishing Cordell Drive West Contractual Assessment District (CAD) No. 2021-1 in Danville 6. Adopt Resolution No. 2021-029 appointing Assistant Secretary of the District Amelia Berumen as Secretary Pro Tem in the absence of the Secretary of the District, and appointing the Finance Manager (or equivalent position) as alternate, and rescind Resolution No. 2012-026 7. Continue public hearing originally scheduled for June 3, 2021 to the June 17, 2021 Board meeting at 1:30 p.m. to receive public comment and consider adopting the following ordinances: • Uncodified Ordinance No. 316 amending the Schedule of Capacity Fees, Rates, and Charges, replacing Ordinance No. 309 in accordance with District Code Chapter 6.12; and • Uncodified Ordinance No. 317 amending the Schedule of Environmental and Development-Related Fees and Charges, replacing Ordinance No. 310 in accordance with District Code Chapter 6.30 8. Approve an agreement in an amount not to exceed $150,000 with Hanson Bridgett to provide labor negotiation services for the period of June 3, 2021 through June 30, 2022, and authorize the Board President to execute the contract BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to adopt the Consent Calendar as recommended. Motion passed by unanimous roll call vote. PUBLIC HEARING 9. Conduct a public hearing to receive public comment and consider adopting the Fiscal Year (FY) 2021-22 Central San Budget for the following funds: Operations and Maintenance, Capital Improvement, Self-Insurance, and Debt Service General Manager Roger S. Bailey stated there would be no overarching presentation on the proposed FY 2021-22 District Budget at this meeting since it had CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 2021 Board Meeting Minutes—Book 69-Page 112 been reviewed at the May Finance and Engineering & Operations Committee meetings, and was presented to the full Board at the May 20, 2021 Board meeting; however, staff was available to respond to questions from the Board. Mr. Bailey stated that the Budget reflects the goals set by the Board to maintain a high level of customer service while maintaining a reasonable Operations and Maintenance (O&M) budget and ensuring the District's infrastructure is sustainable. Mr. Bailey called attention to these items: Recycled Water Budqet He indicated that the cost of running the Recycled Water program is not clearly defined, that the pension cost is included in the benefits portion of the Unfunded Actuarial Accrued Liability (URAL) cost in the operational department. Board Training Mr. Bailey advised that a portion of the Board training budget will need to be amended to include an additional $15,000 when the budget is amended for the debt financing issues. Mr. Bailey thanked the Board for their willingness to engage and support staff in order to continue the important service the District provides. He acknowledged the efforts of the many people involved and thanked the managers and directors for their participation. In particular, he extended his sincere appreciation for the diligence and patience of Director of Finance and Administration Philip Leiber and Finance Manager Kevin Mizuno who worked tirelessly on the budget. Lastly, Mr. Bailey thanked Communications and Intergovernmental Relations Manager Emily Barnett and her staff for creating and laying out such a fantastic document and stated that it was a great representation of the improvements completed by the District over the years. President Pilecki opened the public hearing to consider adoption of the FY 2021-22 District Budget. There being no members of the public present, nor public comments submitted, the public hearing was closed. BOARD ACTION: Motion was made by Member Hockett and seconded by Member McGill to find that the Fiscal Year 2020-21 District Budget is exempt from the California Environmental Quality Act (CEQA); to adopt the Fiscal Year 2021-22 Operations and Maintenance Budget, Capital Improvement Budget, Self-Insurance Budget and Debt Service Budget; and to authorize the General Manager to renew the District's expiring Excess liability insurance for a premium not to exceed $900,000 and the Property insurance for a premium not to exceed $450,000. Motion passed by unanimous roll call vote. CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 2021 Board Meeting Minutes—Book 69-Page 113 OTHER BOARD ACTION ITEMS 10. Discuss issues related to proposed 2021 Debt Transaction and adopt Resolution No. 2021-028 authorizing the execution, delivery and sale of wastewater certificates of participation in the maximum principal amount of $65,000,000 to finance capital improvement projects of the District Mr. Leiber reviewed the presentation included in the agenda materials. Member McGill asked if the proposed issuance Resolution permits the District to issue the bonds in more than one series. He asked if the Board were to authorize the $65M as noted in the Resolution but initially issue only$58M (or less), could the Board issue the balance later. Staff provided the Board with a response to the question posed by Member McGill after the Board meeting. Bond Counsel Dave Fama of Jones Hall responded that it would require a supplemental Resolution (and potentially an official statement and bond purchase agreement that would need Board approval); therefore, the Board could not issue bonds in more than one series. During discussion regarding borrowing more money than is needed for the indirect purpose of freeing up Sewer Service Charge funds to pay down the Unfunded Actuarially Accrued Liability (URAL), staff explained that it did not provide that option at this time because the financial plan contemplates a four-year rate adjustment schedule and, if the Board wanted to reshape rates via borrowing more, it could be evaluated at a later date. Member McGill opined that it would be an opportunity to benefit the rate payers by not raising rates quickly. Mr. Leiber stated that interest rates remain low, and one could take advantage and fund even more of the Capital Improvement Program with debt, which is allowable under the Debt Management Policy. President Pilecki stated that the reason for completing this is specifically to borrow short-term monies at a low interest rate for 7 to 10 years and he did not see a benefit to borrow more money given the fact that a State Revolving Fund (SRF) loan could be obtained with a low interest rate at a longer 20- to 30-year payback period. Member Hockett concurred with President Pilecki and opined that the Board could explore this concept later if needed but should focus on the issue at hand. Mr. Leiber advised that the Board will need to decide how much of the money will be sent to Contra Costa County Employees'Retirement Association (CCCERA) to pay down the UAAL prior to June 30, 2021. Member McGill advised that the Finance Committee thoroughly reviewed this item and staff provided all the information needed to understand the situation. He opined CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 2021 Board Meeting Minutes—Book 69-Page 114 that he is comfortable with approving staff's recommendation to proceed with the borrowing as proposed. Member Williams stated that he does not see the need to continue this item at the next meeting to decide the amount that needs to be sent to CCCERA and he was comfortable with 100%. BOARD ACTION: Motion was made by Member Hockett and seconded by Member McGill to adopt Resolution No. 2021-028, to authorize the execution, delivery and sale of wastewater certificates of participation in the maximum principal amount of $65,000,000 to finance capital improvement projects of the District. Motion passed by unanimous roll call vote. Motion was made by Member Williams to authorize staff to pay 100% of the UAAL with the proceeds. Motion died for lack of second. Accordingly, the Board can determine the pay- down amount to be sent to CCCERA at the June 17 Board meeting. COVID-19 PANDEMIC RESPONSE 11. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic BOARD ACTION: Received the update. LEGISLATIVE MATTERS 12. Receive update on pending legislative matters and provide direction on priority legislation BOARD ACTION: Received the update. REPORTS AND ANNOUNCEMENTS 13. General Manager—Announcements a. Announcements — June 3, 2021 There were no announcements. 14. Counsel for the District a. Report out on Board action taken during Closed Session at May 20, 2021 Regular Board Meeting, and May 24, 2021 Special Board Meeting District Counsel Kenton L. Alm stated that there were no reportable actions taken at the meetings mentioned above. BOARD ACTION: Received the report. CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 2021 Board Meeting Minutes—Book 69-Page 115 15. Secretary of the District Ms. Young announced the following upcoming Board and Committee meetings: • Special Board Meeting (Closed Session) — Monday, June 7 at 2:00 p.m. • Administration Committee — Tuesday, June 8 at 9:00 a.m. • Special Engineering & Operations Committee — Tuesday, June 8 at 11:15 a.m. • Special Board Meeting (Tour of Filter Plant Facility) meet in front of the Headquarters Office Building on Tuesday, June 8 at 1:30 p.m. • Real Estate, Environmental & Planning Committee — Monday, June 14 at 9:00 a.m. BOARD ACTION: Received the announcements. 16. Board Members — Committee Minutes a. May 17, 2021 — Special Finance Committee — Chair Pilecki and Member McGill Ms. Young mentioned that a correction was made to page 2 of the minutes, under Item 4.a., correcting reference to Member McGill. b. May 25, 2021 — Finance Committee — Chair Pilecki and Member McGill BOARD ACTION: Received the Committee minutes. 17. 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 — No report. Member Lauritzen — No report. Member McGill • May 21, 2021 - Board Liaison event: Meeting between Central San and City of Orinda (virtual, no stipend) • May 27, 2021 - Industrial Association's Annual Mayors' Forum (virtual, no cost) Member McGill also provided a written report covering his announcements and other meetings. Member Williams — No report. President Pilecki — No report. BOARD ACTION: Received the reports and announcements. CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 2021 Board Meeting Minutes—Book 69-Page 116 18. 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 None. MEETING OF FACILITIES FINANCING AUTHORITY 19. Recess Board meeting and reconvene as the Central Contra Costa Sanitary District Facilities Financing Authority (FFA) to consider adopting Resolution No. 2021-03 authorizing the execution, sale, and delivery of wastewater revenue Certificates of Participation (COPs) in the maximum principal amount of $65,000,000 to finance capital improvement projects of the Central Contra Costa Sanitary District Note. Board Members will not receive a separate or increased stipend for attendance at this meeting. Staff Recommendation (Motion Required): President Pilecki will recess the Board meeting and, as acting FFA Chair, will call to order a meeting of the FFA to consider taking action to adopt Resolution No. 2021-03 as proposed. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) Mr. Alm announced that a closed session would be held for Item 20 only. He stated that Item 21 was not needed and would not be heard. RECESS TO CLOSED SESSION The Board recessed at 2.31 p.m. to reconvene in closed session Closed Session (Not video recorded) CLOSED SESSION 20. Closed Session pursuant to Government Code Section 54957(a) - Threat to public services or facilities. CENTRAL CONTRA COSTA SANITARY DISTRICT June 3, 2021 Board Meeting Minutes—Book 69-Page 117 21. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: • Roger S. Bailey, General Manager • Kenton L. Alm, Esq., District Counsel • Molly Kaban, Esq., Hanson Bridgett • Teji O'Malley, Human Resources and Organizational Development Manager Employeeganizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS/CG) • Management Group This item was not heard. RECESS TO OPEN SESSION The Board recessed at 3:33 p.m. to reconvene in open session. REPORT OUT OF CLOSED SESSION None. ADJOURNMENT The meeting was adjourned at 3:34 p.m. Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: 1--R Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California