HomeMy WebLinkAboutBOARD MINUTES 09-02-21 I CENTRAL SAN
CENTRAL •NTRA COSTA SANITARY DISTRICT 5019 IMHOFFMARTINEZ,
MINUTES* BOARD OF DIRECTORS.-
TAD
IRECTORS.TAD J.PILECKI
President
REGULAR BOARD MEETING DAVID R.N7LLL4MS
Multi-Purpose Room President Pro Tem
Thursday, September 2, 2021 BARBARA D.HOCKETT
1:30 .m. MARIAHN LAURITZEN
p MICHAEL R.MCGILL
Ogen_ 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.
Book 69— Page 186
CENTRAL CONTRA COSTA SANITARY DISTRICT
September 2, 2021 Board Meeting Minutes—Book 69-Page 987
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
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September 2, 2029 Board Meeting Minutes—Book 69-Page 188
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 111
Russ Leavitt and Central San's solar consultant, Russell Driver of ARC Alternatives
(ARC), reviewed the presentation included in the agenda material.
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September 2, 2021 Board Meeting Minutes—Book 69-Page 189
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.
CENTRAL CONTRA COSTA SANITARY DISTRICT
September 2, 2021 Board Meeting Minutes—Book 69-Page 990
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(URAL) 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
CENTRAL CONTRA COSTA SANITARY DISTRICT
September 2, 2021 Board Meeting Minutes—Book 69-Page 191
authority in the debt service budget. He stated that the other changes reflect the
lower spending for UAAL, 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
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September 2, 2021 Board Meeting Minutes—Book 69-Page 992
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 920-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
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September 2, 2029 Board Meeting Minutes—Book 69-Page 993
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 96
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.
CENTRAL CONTRA COSTA SANITARY DISTRICT
September 2, 2021 Board Meeting Minutes-Book 69-Page 194
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.
CENTRAL CONTRA COSTA SANITARY DISTRICT
September 2, 2021 Board Meeting Minutes-Book 69-Page 195
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
• August 30, 2021 - General Manager and Secretary of the District
Performance Evaluations
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
• August 30, 2021 - General Manager and Secretary of the District
Performance Evaluations
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
September 2, 2021 Board Meeting Minutes—Book 69-Page 196
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.
CENTRAL CONTRA COSTA SANITARYDISTRICT
September 2, 2029 Board Meeting Minutes—Book 69-Page 197
ADJOURNMENT
The meeting was adjourned at 4:52 p.m.
Tad J. Pilec
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED:
Katie YouA )
Secretart., of th -District
Central Contra Costa Sanitary District
County of Contra Costa, State of California