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HomeMy WebLinkAboutBOARD MINUTES 06-17-21 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 17, 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 Pro Tem Amelia Berumen called roll: PRESENT(via videoconference): Members: Hockett, Lauritzen (arrived during the Pledge of Allegiance), McGill, Williams, Pilecki ABSENT: Members: None PLEDGE OF ALLEGIANCE Ms. Berumen recited the Pledge of Allegiance. PUBLIC COMMENT PERIOD No comments. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 69— Page 120 CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 121 REQUESTS TO CONSIDER MATTERS OUT OF ORDER General Manager Roger S. Bailey requested Item 16 be heard upon conclusion of the Consent Calendar; the Board approved. AWARDS AND PRESENTATIONS 1. Receive the California Water Environment Association (CWEA) 2020 Statewide First Place award for Community Engagement and Outreach Project of the Year Wendy A. Wert, CWEA President, presented the award and commended Central San on its achievements and leadership, especially with the challenges faced during the pandemic. Members Hockett and Lauritzen thanked staff for the communication outreach and great teamwork. President Pilecki echoed their sentiments and thanked Ms. Wert for presenting the award. BOARD ACTION: Received the award. CONSENT CALENDAR 2. Approve the following: a. June 3, 2021 Regular Board meeting minutes b. June 8, 2021 Special Board meeting minutes 3. Set a public hearing for July 15, 2021 at 1:30 p.m. to receive comments on placing the following Fiscal Year 2021-22 charges on the Contra Costa County Tax Roll for collection: • Sewer Service Charges; • Assessments for- * Contractual Assessment Districts o Alhambra Valley Assessment Districts; and • Charges for other fee installment payment programs 4. Adopt revisions to the following Board Policies: • BP 008 - Travel Expense Reimbursement Policy, • BP 016 - Security; and • BP 028 - Cost Sharing of Candidate Statements 5. Approve changes based on Classification Study Recommendations - Management Support/Confidential Group (MS/CG) 6. Authorize the General Manager to execute a three-year permit contract with Acme Fill Corporation (Acme) for discharge of treated landfill leachate from the Acme landfill located in Martinez, California, through June 30, 2024 CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 122 7. Authorize the General Manager to execute a pre-purchase contract change order in an amount not to exceed $314,000 with APG-Neuros, Inc. to include three new filter houses for the Electric Blower Improvements, District Project 100015 8. Replace a vacant Lead Engineering Assistant Position (G-72, $4,356 - $5,273 bi- weekly) with an Assistant Engineer Position (S-73, $4,484 — $5,424 bi-weekly) 9. Reject a bid protest and award a construction contract in the amount of $3,117,488 to Basset Engineering, the lowest responsive and responsible bidder for the Walnut Creek Sewer Renovations, Phase 15, District Project 8465; find that the project is exempt from the California Environmental Quality Act (CEQA); and authorize up to a 15-percent contingency President Pilecki requested an update on the Real Estate, Environmental and Planning (RESP) Committee's recommendation of Item 6, which was heard after this agenda posting. Environmental and Regulatory Compliance Division Manager Lori Schectel stated the Committee recommended approval of the three-year contract with Acme Fill Corporation. 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. Upon conclusion President Pilecki moved to hear Item 16 and, after its conclusion, the agenda reverted back to the agenda order, beginning with Item 10. PUBLIC HEARINGS 10. Conduct a public hearing to receive public comment and consider adopting the following ordinance to become effective July 1, 2021: • 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 President Pilecki opened the public hearing; there being no public comment, the hearing was immediately closed. Although no presentation was made today, President Pilecki stated the Finance Committee thoroughly reviewed this matter and recommended approval of the proposed Ordinance. The Board had no questions. BOARD ACTION: Conducted the public hearing. Motion was made by Member McGill and seconded by Member Hockett to adopt Uncodified Ordinance No. 317 - Schedule of Environmental and Development-Related Fees and Charges, replacing Ordinance No. 310, effective July 1, 2021. Motion passed by unanimous roll call vote. CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 123 11. Cancel the public hearing to receive public comment and consider adopting the following ordinance to become effective July 1, 2021: • 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 District Counsel Kenton L. Alm concurred with President Pilecki's clarification that, by cancelling this public hearing, the existing schedule of Capacity Fee rates and charges would continue until such time it is changed in the future. BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to cancel the public hearing that would have considered amending the Schedule of Capacity Fees, Rates, and Charges; and continue with the current approved Schedule of Capacity Fees, Rates, and Charges as allowed by Ordinance No. 309. Motion passed by unanimous roll call vote. COVID-19 PANDEMIC RESPONSE 12. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic Communication Services and Intergovernmental Relations Manager Emily Barnett highlighted key matters in the update provided in advance of the meeting. Of note, recent state orders provided for the public opening of businesses on June 15. However, of particular interest to Central San are the forthcoming directives from Cal OSHA, which differ from the state opening orders and are typically more stringent, more information is anticipated in the coming days. Until such time the Cal OSHA updated protocols are known, the District will continue with the established rules that have been in place. Mr. Bailey advised that relative to new orders being issued, he intends to agendize an item for the next Board meeting to discuss how the Board would like to conduct its meetings (i.e., in-person, virtual, or a hybrid format) and the timeframe in which to begin, as long as virtual meetings remain an option. Mr. Alm stated the recent orders did not address the continuation of virtual meetings and no state guidance has been provided as of this meeting. Therefore, so long as the current order is not modified or replaced, the same orders are in effect for the immediate future. As such, a hybrid version could be used if opted. BOARD ACTION: Received the update. CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 124 OTHER BOARD ACTION ITEMS 13. Consider approval of the Maintenance Access (Manhole) Covers Beautification proposed design Ms. Barnett discussed and reviewed the proposed final design for the beautification project approved by the Board in April. She advised the REEP Committee reviewed and recommended approval of this item at its June 14 meeting. The replacement of the covers will be a phased approach implemented over a four- year schedule. In response to a concern posed by Member Williams of existing covers being discarded which remain useable, Ms. Barnett assured the Board that functioning covers would be salvaged and not wasted. Member Williams was supportive since the project would not be wasteful. President Pilecki inquired about the durability of this type of cover with the varying depths of the design. Ms. Barnett stated staff worked closely with the foundry and modified the design to meet such standards, including durability, relief areas, safety, and noise. The covers are incredibly robust, and this design exceeds the standard. Board Members complimented the design which encompasses the District's mission of environmental stewardship. BOARD ACTION: Motion was made by Member Hockett and seconded by Member Williams to approve the proposed Maintenance Access (Manhole) Covers Beautification design. Motion passed by unanimous roll call vote. 14. Consider adopting revisions or maintaining the status quo related to Section 11. Contracts for Goods and Services of Board Policy No. BP 037 - General Manager Delegation of Authority Mr. Bailey stated this topic was reviewed by the Administration Committee, in which the Committee recommended to leave the current policy in place, he concurred with that decision. However, it was decided to bring the matter before the Board, first as a reminder of the current authorization limits bestowed to him and, secondly, to ensure the Board that these thresholds are used wisely and any report-out would be provided to the extent necessary. BOARD ACTION: Motion was made by Member Hockett and seconded by Member Williams to make no changes and continue with the current policy. Motion passed by unanimous roll call vote. 15. Receive update on the current status of recent insurance market conditions and authorize the General Manager to select and purchase the most beneficial policy option to renew excess General Liability insurance prior to the July 1, 2021 renewal period, either through a commercial insurer or pooled liability insurance program CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 125 Director of Finance and Administration Philip Leiber provided a brief overview of the situation and the upcoming deadline in which to obtain insurance coverage. He explained that staff did not have all pertinent insurance coverage options and cost from commercial carriers to make a definitive recommendation today. Therefore, as it was presented-to and recommended-by the Finance Committee, approval to authorize the General Manager to determine and select the best coverage and cost option available which meets the best interest of the District was recommended. An update of the selection would be provided to the Board. Mr. Alm advised that earlier today, confirmation was received that two private carriers would cover inverse condemnation, which is of vast importance to retain, and is seemingly available based on a $500,000 retention versus $1 million advised earlier in the month. At this time, he recommended to continue with private insurance carriers rather than join a pooling authority and consider such options over the course of the year. BOARD ACTION: Motion was made by Member Williams and seconded by Member McGill to authorize the General Manager to select the most beneficial policy option and enter into a policy agreement to purchase excess General Liability insurance coverage prior to the July 1, 2021 policy renewal. Motion passed by unanimous roll call vote. 16. 2021 Debt Issuance: Consider proposed options to finalize the preferred pay-down amount of Unfunded Actuarially Accrued Liabilities (UAAL) to the Contra Costa County Employees' Retirement Association (CCCERA); authorize an amendment to the Fiscal Year (FY) 2020-21 adopted Operations and Maintenance (O&M) Budget increasing appropriations by the UAAL payoff amount; and receive other transaction related information This item was heard immediately after the conclusion of the Consent Calendar. Mr. Bailey announced that upon the Board's authorization to move forward with bonds issuance at its June 3 meeting, the bonds were sold yesterday. He requested Mr. Leiber provide an update of the transaction. Mr. Leiber stated that despite the increasing news concerning inflation, it did not affect the bond pricing. The District received an incredibly favorable rate and the bonds were sold to Morgan Stanley as the successful bidder in the competitive process. Their bid was for 38 basis points, or just more than one-third of one percent, significantly better than the estimated rate of about one percent. He stated PFM has rerun the calculations regarding the probability of saving money over the course of the debt term and were present to provide an update. PFM advisor Sarah Hollenbeck congratulated Central San on the successful and competitive sale. She noted with the District having a desirable AAA rating and being an essential service, it was a strong marketplace response. Eight bids were received with Morgan Stanley selected as the winning bid of 38 basis points. CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 126 She continued that the probability of success model was rerun, and assumptions were updated to reflect the bond pricing. There is now an 88 percent probability of success based on the model. As a caveat, she cautioned that the transaction does not close until June 24. Mr. Leiber continued that interesting developments have been made since this agenda was published as it pertains to the two matters the Board had to consider today in regard to the UAAL payoff. The first matter pertains to the payoff amount. Staff believes the District should pay off the UAAL liability with CCCERA in full. With recent developments earlier today, it was learned that a payoff of anything less than in full would be amortized over 18 years. If that choice is made, the District would not get the outcome sought. The UAAL payment would not go away in the next seven years and the District would pay more than it planned, and this would shift the paydown benefit past seven years. This would complicate matters; thus, a full payoff was recommended to reset the existing UAAL layers and to wipe the slate clean. Secondly, the Board would need to authorize staff to spend above the budgeted amount for UAAL in order to send the money to CCCERA for the paydown. Since accelerating the payment of UAAL from the next seven years to this year, and to write the check this month, it would cause staff to exceed the budget. Therefore, the second action recommended the budget increase by the amount being issued to CCCERA as determined by the Board today. BOARD ACTION: Motion was made by Member Williams and seconded by Member Lauritzen to 1) fully pay off the CCCERA liability of $70.8 million, using available funds on hand, and liquidating the Pension Pre-Funding Trust to the extent necessary; and 2) authorize an amendment to the FY 2020-21 O&M adopted budget increasing appropriations by an amount not to exceed the UAAL paydown to CCCERA, for the purpose of this UAAL paydown, for an amended O&M budget of $161,466,338. Motion passed by unanimous roll call vote. President Pilecki thanked staff for their continued research efforts with the CCCERA payment options and reporting about the payment repercussions for the Board's decision. Upon conclusion of Item 16, the order of business reverted back to Item 10. REPORTS AND ANNOUNCEMENTS 17. General Manager— Reports a. Receive update on the Refinery Recycled Water Exchange Project Cost Allocation Mr. Bailey stated that staff has continued to work with Contra Costa Water District (CCWD) and Santa Clara Valley Water District (Valley Water) on a water exchange program, which has now come to a time when the Board will be requested to start making a policy decision. He emphasized that no CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes—Book 69-Page 127 decision would be needed today and that this update would walk through the general concepts and provide an opportunity for the Board to indicate their direction to participate and at what level. He acknowledged that this is a big issue and a big policy decision that staff does not take lightly. Resource Recovery Program Manager Melody LaBella acknowledged attendance by Kirsten Struve, Assistant Officer for the Water Supply Division of Valley Water. Ms. LaBella presented a thorough explanation of the updated presentation provided in advance of the meeting, which had only revised cost figures within the slides. Lengthy discussions ensued during the course of the presentation. Ms. LaBella responded to numerous scenario and technical questions from the Board regarding various matters, such as permit compliancy, population growth, seasonal limits, Sacramento Regional's advanced treatment program start and reduced Sacramento River nutrient loads, future refinery viability, inorganic and organic nitrogen levels, and commodity charge considerations for Central San's potential water supply. Mr. Bailey stated a presentation will be made to Valley Water's General Manager, Recycled Water Committee and Board. A presentation would also be provided to the Liaison Committee comprised of representatives of CCWD, Valley Water and Central San. These presentations will explore the viability of the project, interest to proceed with the program, and the next steps. He noted that, and predicated with support of the Board, nutrient mitigation would be needed sooner than later, which correlates to funds that would be expended sooner than later and effectively during the cost-share in the project. As it pertained to refineries, Mr. Bailey noted they are the ultimate destination in a virtual sense. Dependent on refinery demand, the pipeline could deliver the otherwise used water to Valley Water. If the refineries were shut down, it is a risk that Valley Water must consider, as Central San could continue discharging to the Bay. Member McGill offered that the City of Pittsburg has inquired about getting water along the northern waterfront, thus, the industry may change but the demand may remain. Member Williams noted that the Air District is constantly tightening air regulations, which has led to speculation that refineries could vacate California. Even with waterfront development, he was uncertain the same demand would be there in the timeframe being considered. Ms. LaBella responded to further questions and reiterated that a decision nor a request to determine cost was being sought today, only whether to continue the discussions with Valley Water and move to the feasibility level of the CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 128 project. She noted many items need to be answered on water supply and allocation. Member Lauritzen opined that the project should develop recycled water customers regardless of the risk of the refineries, especially with the drought, which is the new normal. She added it is a great project and has many reasons to pursue it. Member Williams stated he is a supporter of recycled water, but is also a supporter of projects in which the beneficiary pays; meaning, beneficiaries of the resource are the ones that should pay and he struggles to ask residents to pay for others in the Bay Area. President Pilecki echoed those concerns. Member Hockett suggested a workshop be developed to bring this matter to a large table for discussion. At this time, the matter is wide, there is no policy and she did not clearly see the options; many matters need to be discussed further. Mr. Bailey replied that he intends to schedule a Strategic Planning session on elements important to the Board, recycled water being one of those topics. He acknowledged the regional water issues, economy, and the complexities surrounding it. Ms. Struve stated that she thought the meeting with Valley Water to provide a presentation to the General Manager, Board Committee and Board was a good next step. Drought is at the top of their list and there is a need for an alternative supply in which Valley Water is interested in looking at this option. The Board concurred to continue the project coordination and move forward to the feasibility step. Mr. Bailey confirmed that staff will meet with the partners to get a better understanding on how to proceed; staff will only be looking at the feasibility and no contract commitments would be entered into at this time. BOARD ACTION: Received the update and provided direction to staff to continue with project discussions and move forward with a feasibility study. 18. General Manager—Announcements a. Announcements — June 17, 2021 No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 19. Counsel for the District No report. CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes—Book 69-Page 129 20. Secretary of the District Ms. Berumen announced the following upcoming Board and Committee meetings: • Cancellation of the Special Board Meeting that was scheduled for June 21 • Engineering & Operations Committee — Tuesday, June 22 at 11:00 a.m. • Finance Committee — Tuesday, June 22 at 2:00 p.m. 21. Board Members — Committee Minutes a. June 8, 2021 —Administration Committee — Chair Williams and President Pilecki b. June 8, 2021 — Engineering & Operations Committee — Chair Williams and Member Lauritzen BOARD ACTION: Received the Committee minutes. 22. 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 • June 3, 2021 — Contra Costa Mayors' Conference (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. 23. 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. CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 130 24. Board Members — Other Items a. Provide voting direction to Member McGill, the District's representative and voting delegate for the Contra Costa Chapter of the California Special Districts Association (CSDA), on how to vote at the upcoming CSDA election for a representative for the Bay Area Network, Seat A Member McGill suggested the Board cast a vote for the current incumbent, Chad Davisson, for re-election. BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to cast the District's vote for Chad Davisson. Motion passed by unanimous roll call vote. EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS Member Lauritzen requested a Board discussion be agendized to consider providing the public with educational-type presentations to review approval-voting and rank-choice voting methods for their informed decision making in the next election cycle, which would coincide with the district-based election format the District is moving toward. Although the Board was in consensus that they were open to hearing more information on the topic, some concern was raised over the timing and any associated cost. Mr. Bailey added that legal matters would need to be sorted related to the district-based elections. Mr. Alm offered that all charter cities use rank-choice voting and those that are not charters may be more restrictive, he would research those voting options and whether legislative guidance is needed. It was determined that a presentation would first be provided to the Administration Committee for discussion and consideration. Member Lauritzen agreed with the approach. 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 3:42 p.m. to reconvene in closed session. CENTRAL CONTRA COSTA SANITARY DISTRICT June 17, 2021 Board Meeting Minutes— Book 69-Page 131 Closed Session (Not video recorded) CLOSED SESSION 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 • Molly Kaban, Esq., Hanson Bridgett • 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 4:20 p.m. to reconvene in open session. REPORT OUT OF CLOSED SESSION None. ADJOURNMENT The meeting was adjourned at 4:21 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: QMtLO, fjtWVjM & Amelia Berumen Secretary Pro Tem Central Contra Costa Sanitary District County of Contra Costa, State of California