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HomeMy WebLinkAbout03.a. Approve minutes of meeting held 09-02-2021 Page 1 of 13 Item 3.a. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT September 16, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: SEPTEMBER 2, 2021 BOARD MEETING MINUTES Attached are the draft minutes of the above Board meeting. ATTACHMENTS: 1. Draft Minutes of 09-02-21 meeting September 16, 2021 Regular Board Meeting Agenda Packet- Page 18 of 85 Page 2 of 13 CENTRAL SAN CONTRACENTRAL • IMHOFF PLACE, MARTINEZ, CA 9AS53-,4392 MINUTES* BOARD OF DIRECTORS: TAD J PILECKI President REGULAR BOARD MEETING DAVID R. WILLIAMS Multi-Purpose Room President Pro Tena Thursday, September 2, 2021 BARBARA D.HOCKETT 1:30m. MARIAHN LAURITZEN p' MICHAEL R.MCGILL DRAFT 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 videoconference. 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, 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. September 16, 2021 Regular Board Meeting Agenda Packet- Page 19 of 85 Page 3 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 2 CONSENT CALENDAR 1. Approve the following: a. August 19, 2021 Special Board meeting minutes b. August 23, 2021 Special Board meeting minutes C. August 26, 2021 Special Board meeting minutes 2. Approve expenditures incurred July 9, 2021 through August 12, 2021 3. Set a public hearing for October 7, 2021 at 1:30 p.m. pursuant to Section 6.20 of the District Code to receive comments on the proposed Reimbursement Fee for properties which could connect to Job 6712 on La Sonoma Way in Alamo 4. Set a public hearing for October 7, 2021 at 1:30 p.m., pursuant to Chapter 9.40 of the District Code, to receive comments on the abandonment of a public sewer located on Lost Valley Drive in Orinda as part of the South Orinda Sewer Renovations, Phase 8, District Project 8461 5. Adopt Resolution No. 2021-044 establishing the appropriations limit in the amount of $127,013,222 for Fiscal Year 2021-22, in accordance with Article XIII B of the California Constitution, using the change in the California per capita personal income percentage and change in population to calculate the appropriations limit 6. Adopt Resolution No. 2021-045 accepting an irrevocable offer of dedication from MM Danville Apartments LLC for sanitary sewer purposes and authorizing staff to record the resolution with the Contra Costa County Recorder 7. Adopt Resolution No. 2021-046 accepting an irrevocable offer of dedication by separate instrument from Lori Maher for sanitary sewer purposes, accepting a map dedication from Gloria Terrace, LLC for sanitary sewer purposes, and authorizing staff to record the resolution with the Contra Costa County Recorder 8. Adopt Resolution No. 2021-047 accepting a map dedication from Laurel Knolls, LLC for sanitary sewer purposes and authorizing staff to record the resolution with the Contra Costa County Recorder 9. Adopt Resolution No. 2021- 048 authorizing execution of a real property agreement for a Class 2 Encroachment at 95 N. 1 st Ave., Pacheco and authorize staff to record the documents with the Contra Costa County Recorder 10. Authorize the General Manager to execute a construction contract change order in an amount not to exceed $300,000 with McGuire and Hester Construction, Inc. to include the Tertiary Membrane Pilot Installation under the Contractor Staging Improvements, District Project 7375 September 16, 2021 Regular Board Meeting Agenda Packet- Page 20 of 85 Page 4 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 3 11. Authorize the General Manager to amend two professional engineering services agreements to increase each in the amount of $500,000 with: 1) MWH Constructors, Inc., increasing the cost ceiling to $2.6 million, and 2) Carollo Engineers, Inc., increasing the cost ceiling to $1.3 million, to continue as-needed construction management services for District Projects 12. Authorize renewal of a 25-year license agreement with the City of Orinda for the use of Central San real property for the St. Stephen's Trail as part of a bicycle and pedestrian trail In regard to Item 12, District Counsel Kenton Alm advised that since the agenda was published, staff received comments from the City of Orinda that may require changes to the current agreement. General Manager Roger S. Bailey stated that any changes would be reviewed by District Counsel and that staff requests the Board authorize the General Manager to execute the agreement once it is mutually acceptable. BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to adopt Items 1-11 on the Consent Calendar as recommended. Motion passed by unanimous roll call vote. BOARD ACTION: Motion was made by Member McGill and seconded by Member Lauritzen to approve Item 12, authorizing the General Manager to execute the agreement once accepted by both parties. Motion passed by unanimous roll call vote. PUBLIC HEARINGS 13. Conduct a public hearing to consider approval of Resolution No. 2021-049 adopting a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program, and approving the proposed Solar Array Project on Central San's Lagiss Property; authorize the General Manager to 1) execute Amendment No. 1 to Central San's Power Purchase Agreement with REC Solar; and 2) amend an existing as-needed professional consulting services agreement with ARC Alternatives, increasing the cost ceiling from $179,600 to $229,600 President Pilecki advised the Board that staff was prepared to present the Initial Study/Mitigated Negative Declaration for consideration and approval of Central San's proposed Solar Panel Array Project. However, due to an ongoing discussion between staff and the California Department of Fish and Wildlife (CDFW) regarding burrowing owl mitigation, staff will instead review the presentation in the agenda packet and solicit the Board's input and also recommended the public hearing be continued to a future meeting. Resource Recovery Program Manager Melody LaBella, Engineering Assistant III Russ Leavitt and Central San's solar consultant, Russell Driver of ARC Alternatives (ARC), reviewed the presentation included in the agenda material. September 16, 2021 Regular Board Meeting Agenda Packet- Page 21 of 85 Page 5 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 4 Member Lauritzen inquired about the goal to not have the solar panels be visible to the nearby neighbors on Blum Road. Ms. LaBella provided the history behind the issue of the neighborhood's sensitivity to the original environmental review for Central San's Household Hazardous Waste Collection Facility. There was a lengthy discussion about the ratio of replacement of the burrowing owl habitat and the purpose of the Lagiss property. Mr. Alm stated that staff is not requesting the Board make a final decision today and suggested granting a conservation easement in perpetuity and advised staff to carefully look at the negotiation and find something that would make more sense for the District. He cautioned about encumbering a significant amount of land. President Pilecki inquired about future expansion on the property. Ms. LaBella stated that staff had envisioned adding more solar panels in the future when energy demands increase with nutrient discharge regulations or if the Water Exchange Project gets implemented. There was a discussion regarding challenging the comment letter from CDFW and the potential repercussions. Member Hockett suggested investigating the use of Central San's parking lot for the solar site. Ms. LaBella advised that the economics are not in the District's favor and that the Board would need to modify the criteria in the Board policy in order to make it a cash flow positive investment within five years. Mr. Driver also added that a project located there would be much smaller and would be less beneficial to Central San. Member Lauritzen stated her willingness to look at the financial criteria for projects like this. Member Williams inquired about the storage basins as a site for the solar project. Ms. LaBella stated that staff has considered that and had chosen to avoid that area but will now be taking a closer look at the area for future solar projects. Mr. Driver advised that the financial assumptions have been rerun, which assumes additional production (from REC Solar shifting to a southwest orientation at ARC's request) and more savings and benefits to the District with a change order of ongoing cost for a monitoring program for a burrowing owl conservation easement on the Lagiss property. President Pilecki asked how many years it would take to receive a positive payback if Central San were to pursue the option of purchasing land in a habitat mitigation bank. Mr. Driver responded approximately eight years. September 16, 2021 Regular Board Meeting Agenda Packet- Page 22 of 85 Page 6 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 5 Mr. Driver explained that their financial model includes a conservative rate for the cost PG&E rate increases of 3%, so as not to overstate the potential benefit of a solar project to Central San. There was some discussion regarding reevaluation of the project and alternative locations and the consequences of halting the project at this stage. Mr. Driver advised that the Power Purchase Agreement (PPA) does a good job protecting the District from significant penalties. The District has the ability to halt the project and terminate the agreement, but REC Solar has the ability to receive out-of- pocket expenses. There has only been a design completion, so approximately $350,000-$400,000 would be at stake. Member Lauritzen stated that she does not support pivoting away from the project and believes it is economically feasible, even with the cost of environmental mitigation. Member Williams agreed with Member Lauritzen and stated that the 10 cents per kilowatt is an amazing price and the District should not turn back. President Pilecki opened the public hearing at 2:42 p.m. BOARD ACTION: Opened the public hearing. Motion was made by Member McGill and seconded by Member Hockett to continue the public hearing to a future meeting to be determined in order for staff to complete its response. Motion passed by unanimous roll call vote. Member Hockett appreciated the discussion and the Board's ability to remain opened minded. The Board cautioned staff not to delay too long as they do not want to miss the opportunity for this project. Ms. LaBella advised that staff is planning to return to the Board at its first meeting in October to continue the hearing and discussion on this project. OTHER BOARD ACTION ITEMS 14. Consider adopting an amendment to the Fiscal Year (FY) 2021-22 Central San budget for the following funds: Operations and Maintenance, Sewer Construction, and Debt Service Director of Finance and Administration Philip Leiber advised that in connection with the debt issuance and unfunded actuarial accrued liability (UAAL) paydown transaction completed in June, staff proposed certain amendments to the FY 2021- 22 budgets. The UAAL paydown transaction means the District is spending about $1.1 million less overall, but as the District now must pay debt service that was not included in the adopted budget, the District would need to increase the spending September 16, 2021 Regular Board Meeting Agenda Packet- Page 23 of 85 Page 7 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 6 authority in the debt service budget. He stated that the other changes reflect the lower spending for URAL, the reallocation of Sewer Service Charge revenue, the effect on the City of Concord bill, and resulting effects on the reserve fund balances. It was noted that this matter was reviewed by the Finance Committee on August 24 and it recommended approval. BOARD ACTION: Motion was made by Member Hockett and seconded by Member Lauritzen to adopt the proposed amendments to amend the FY 2021- 22 Operations and Maintenance, Sewer Construction, and Debt Service budget funds as recommended. Motion passed by unanimous roll call vote. Mr. Bailey commended Mr. Leiber on his innovation in this regard and applauded his accomplishments. 15. Award a construction contract in the amount of$179,841,000 to Kiewit Infrastructure West Co. (Kiewit), the lowest responsive and responsible bidder for the Solids Handling Facility Improvements, District Project 7348; and • Authorize staff to enter into contractual agreements with third-party consultants to conduct independent assessments of Solids Handling Alternatives; • Authorize the General Manager to: o Execute five professional services agreements with not to exceed amounts as noted for construction management and engineering support during construction with: 1) MWH Constructors, Inc. for $12 million; 2) Black & Veatch Corporation for $4 million; 3) Aresine Engineering for $1.5 million; 4) HDR, Inc. for $1 million; and 5) Degenkolb Engineers for $650,000; and o Execute Contract Documents subject to SRF funding, submittal requirements, value engineering, and include up to a 15-percent project contingency Director of Engineering and Technical Services Jean-Marc Petit provided the Board with a revised staff presentation recommending rejecting all bids for the Solids Handling Facility Improvements project. President Pilecki discussed the impacts on operations with this new approach. He stated that with the regulatory risks there will be more flexibility with the addition of new anaerobic digestors in the long term and it will be more challenging to maintain and operate the existing incinerators. Member Williams stated that he is in full support of staff's recommendation. Director of Operations Steve McDonald provided some thoughts of the costs and plan of keeping the furnaces running while a new plan is being developed. Kiewit Vice President Matt Scott stated that his company spent a significant amount of resources to pursue and prepare an estimate for this project. He believed that rejecting all bids is not a good look for Central San and would question the reputation it would give. He provided a list of reasons as to why the Board should September 16, 2021 Regular Board Meeting Agenda Packet- Page 24 of 85 Page 8 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 7 continue with the award of the contract and stated with the use of value engineering, Central San would not spend nearly the amount. Member McGill appreciated Mr. Scott's comments and inquired why staff does not continue with the value engineering and, if not satisfied, terminate the contract as provided in the contract language. Mr. Petit stated that staff reviewed initial potential cost savings and staff determined that there would not be sufficient savings and the preferred path was to redirect the funds towards the new anaerobic digester project. Mr. Bailey believes having a bad reputation is something the District is concerned about; however, the project was substantially over budget and staff needed to consider the bigger picture. He noted that proceeding with the prior recommendation, including the value engineering, there would still be a risk to terminate the project and an increase of further dollars spent. Mr. Bailey stated that it is a tough decision but on behalf of the public, the District needs to be financially prudent. Member McGill stated that rejecting all bids makes the most sense. Member Hockett stated she was comfortable with staff recommendation and hoped that Kiewit would be involved with future projects. Member Williams agreed with Mr. Petit's comment regarding the fact that the value engineering effort would likely not yield the desired savings and he believes that with the 120-day deadline and the risk of escalating vendor prices, he was also supportive of rejecting all bids. Member Lauritzen advised that this situation should be avoided in the future and that she supported rejecting all bids. President Pilecki stated that the District takes seriously the repercussions of rejecting bids and that it is a rare occurrence. BOARD ACTION: Motion was made by Member Hockett and seconded by Member Williams to reject all bids for the Solids Handling Facility Improvements, District Project 7348. Motion passed by unanimous roll call vote 16. Receive overview information and hold a follow-up discussion regarding the Return to Office Plan related to the COVID-19 pandemic response, and provide direction to staff on the Return to Office timeline Mr. Bailey requested the Board put a pause on the date to bring employees back to office due to the Delta variant, which has caused a spike in reported cases, not just in Contra Costa County but also internally. It was noted that the Board will have a conversation regarding vaccinations at the next meeting in September or the first meeting in October. This request was to extend the date beyond September 30 with no set date in order to monitor the situation and safety of staff. He asked the Board September 16, 2021 Regular Board Meeting Agenda Packet- Page 25 of 85 Page 9 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 8 to remain flexible and adaptable as the data becomes available and allow the General Manger to adjust as necessary. Member McGill stated that the vaccine was the defensible way to get people back to work and now with breakthrough cases, it might be prudent to delay the return to office plan. Mr. Alm advised it is at the Board's discretion to determine whether vaccinations are a requirement. He stated that in a number of jurisdictions where there have been requirements to get vaccinated, there have been lawsuits. However, there have also been lawsuits on the other spectrum of those returning to work without being vaccinated. Member Hockett stated that she agreed with Mr. Bailey regarding the return to office plan and suggested agendizing the discussion of vaccination at the September 16 Board Meeting. She stated that the District needs to protect everyone and not turn their backs on the employees. In response to a question from Member Williams, Human Resources and Organizational Manager Teji O'Malley stated that there has been discussion regarding vaccines with the bargaining groups. President Pilecki suggested pausing 30 days at a time and that employees would need to be prepared to come back to the office. A motion was made by Member McGill to pause the current date of return without listing a return date. Member Hockett suggested that a date be provided to inform employees. Member Lauritzen stated that she was in favor of having another deadline as it would put pressure on the Board to make the decision and agreed with the 30-day period. Member Williams made an amendment to Member McGill original motion, adding that a 30-day notice be provided to employees of a return to the office timeline. Member McGill accepted his amendment. BOARD ACTION: Receive the information and held discussion on the return to office timeline. Motion was made by Member McGill and seconded by Member Williams to approve a delay to the Return to Office Plan for remaining remote employees until a future date is determined and provide a 30-day notice to employees prior to date. Motion passed by unanimous roll call vote. September 16, 2021 Regular Board Meeting Agenda Packet- Page 26 of 85 Page 10 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 9 LEGISLATIVE MATTERS 17. Receive update on pending legislative matters and provide direction on priority legislation After three years, the wipes legislation bill has reached the Governor's desk. The District has provided amendments to this bill and it is a huge accomplishment. Communication and Intergovernmental Relations Manager Emily Barnett stated that Senator Glazer's Senate Bill 594 regarding the Census has passed through the Assembly and is moving into the Senate for approval, with the hope to have the Governor's signature next week. Should this bill be passed, the District would not be required to complete the redistricting prior to the November 1, 2021 deadline. BOARD ACTION: Received the update. REPORTS AND ANNOUNCEMENTS 18. General Manager—Announcements a. Announcements — September 2, 2021 No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 19. Counsel for the District a. Report out on Board action taken during Closed Session at the August 23, 2021 Special Board Meeting Mr. Alm stated that there was no reportable action taken at the August 23 meeting. BOARD ACTION: Received the report. 20. Secretary of the District Ms. Young announced the following upcoming Board and Committee meetings: Real Estate, Environmental & Planning — Monday, September 13 at 9:00 a.m. Administration — Tuesday, September 14 at 9:00 a.m. Special Board Meeting— Tuesday, September 14 at 2:00 p.m. (canceled) BOARD ACTION: Received the announcements. September 16, 2021 Regular Board Meeting Agenda Packet- Page 27 of 85 Page 11 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 10 21. Board Members — Committee Minutes a. August 16, 2021 — Real Estate, Environmental & Planning Committee — Chair McGill and Member Hockett b. August 17, 2021 — Engineering & Operations Committee — Member Lauritzen and President Pilecki (alternate) C. August 18, 2021 — Finance Committee — Chair Pilecki and Member McGill 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 • August 11 , 2021 - Water Environment Federation; Continuing the Conservation: Diversity, Equity, and Inclusion (virtual webinar) • August 23, 2021 - East Bay Leadership Council - Board Installation and Awards at Metro Lafayette Member Lauritzen — No report. Member McGill • August 5, 2021 - Contra Costa County Mayors' Conference (virtual) • August 11-13, 2021 - California Association of Sanitation Agencies (CASA) Annual Conference in San Diego • August 23, 2021 - East Bay Leadership Council - Board Installation and Awards at Metro Lafayette • August 30-September 2, 2021 - California Special Districts Association (CSDA) Annual Conference in Monterey 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. September 16, 2021 Regular Board Meeting Agenda Packet- Page 28 of 85 Page 12 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes -Page 11 EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS None. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kenton L. Alm announced that a closed session would only be held for Item 25. RECESS TO CLOSED SESSION The Board recessed at 4:07 p.m. to reconvene in closed session. Closed Session (Not video recorded) CLOSED SESSION 24. Conference with labor negotiators pursuant to Government Code Section 54957.6: There was no closed session held regarding this item. District Negotiators: • Roger S. Bailey, General Manager • Kenton L. Alm, Esq., District Counsel • Molly Kaban, Esq., Hanson Bridgett, Labor 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 25. Personnel matters pursuant to Government Code Section 54957(b)(1) - Performance Evaluations for following members of Executive Management Team: General Manager, Secretary of the District, and District Counsel RECESS TO OPEN SESSION The Board recessed at 4:51 p.m. to reconvene in open session. REPORT OUT OF CLOSED SESSION No report. September 16, 2021 Regular Board Meeting Agenda Packet- Page 29 of 85 Page 13 of 13 CENTRAL CONTRA COSTA SANITARY DISTRICT September 2, 2021 Board Meeting Minutes-Page 12 ADJOURNMENT The meeting was adjourned at 4:52 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 September 16, 2021 Regular Board Meeting Agenda Packet- Page 30 of 85