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HomeMy WebLinkAboutBOARD MINUTES 01-13-22 (Special)LCENTRAL SAN MINUTES* SPECIAL BOARD MEETING Virtual Meeting Thursday, January 13, 2022 2:30 p.m. Open Session — Virtual Meeting (Video recorded) NOTICE BOARD OF DIRECTORS: DAVID R. WILLIAMS President BARBARA D. HOCKETT President Pro Tent MARIAHN LAURITZEN MICHAEL R. MCGILL TAD J PILECKI This meeting was held virtually pursuant to Central San Resolution 2021-082. The resolution made findings with the Governor's Emergency Declaration and County Health Services recommendations related to the ongoing COVID-19 pandemic, and the provisions provided under Assembly Bill 361. The agenda provided options in which members of the public could participate in the meeting. :• T A special meeting of the Board of Directors was called to order by President Williams at 2:30 p.m. Secretary of the District Katie Young called roll: PRESENT: Members: Hockett, Lauritzen, McGill, Pilecki, Williams ABSENT: Members. None PLEDGE OF ALLEGIANCE Ms. Young recited the Pledge of Allegiance. PUBLIC COMMENT PERIOD Ms. Young read a public comment received via electronic mail from a customer regarding sewer connection fees. She stated she would forward the public comment to staff to address. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 70 — Page 1 CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 2 REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. AWARDS AND PRESENTATIONS Receive the 2021 Municipal Information Systems Association of California (MISAC) Innovation Award for Central San's 75th Anniversary Experience website MISAC President Hong Sae presented the 2021 MISAC Innovation Award. He stated that he thought the District did a fantastic job and provided a positive impact to the community. Communications and Intergovernmental Relations Manager Emily Barnett acknowledged the Information Technology and Communications team on a job well done creating this wonderful customer information tool for not only students but onboarding employees and potential interviewees to use as an educational resource. She noted that over 800 people this week alone took the virtual tour. BOARD ACTION: Received the award. 2. Adopt Resolution No. 2022-001 commending outgoing Board President Tad J. Pilecki for his service President Williams congratulated Member Pilecki on completing his year of service as President during an incredibly difficult time period. Member Pilecki appreciated the recognition. He stated that he recognizes the accomplishments listed in the Resolution was a team effort of the Board, General Manager and Management Team, and further recognized District employees for their contribution. BOARD ACTION: Motion was made by Member Hockett and seconded by Member Lauritzen to adopt the proposed resolution commending outgoing Board President Pilecki for his service during 2021. Motion passed by the following roll call vote: AYES: Members: Hockett, Lauritzen, McGill, Williams NOES: Members: None ABSTAIN: Members: Pilecki CONSENT CALENDAR 3. Approve the following: a. December 16, 2021 Regular Board meeting minutes b. December 27, 2021 Special Board meeting minutes CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 3 4. Approve expenditures incurred November 15, 2021 through December 10, 2021 5. Receive the Financial Overview through the month of November 2021 6. Adopt proposed revisions to amend and retitle Board Policy No. BP 035 - Purchasing, and retire Board Policy No. BP 036 - Informal Bidding 7. Approve a new District project in the amount of $3.6 million for Solids Handling Facility Improvements (Solids Handling), Phase 2; find that the recommended agreements are exempt from the California Environmental Quality Act (CEQA); and authorize the General Manager to: • Transfer $3.6 million from the Solids Handling Facility Improvements, Phase 1 to the new project; and • Execute two professional engineering services agreements to evaluate and plan for long-term solids handling and disposal with: 1) Brown and Caldwell, in an amount not to exceed $1.8 million, and 2) Carollo Engineers, Inc., in an amount not to exceed $250,000 8. Support in concept the Water Collaborative Delivery Association's (formerly Water Design -Build Council) proposed 2022 legislation to provide agencies that store, treat, or convey water broad authority to use collaborative delivery methods President Williams announced that Member McGill would like to pull Item 7 from the Consent Calendar for discussion. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to adopt Items 3-6 and Item 8 on the Consent Calendar as recommended. Motion passed by unanimous roll call vote. Regarding Item 7, Member McGill stated that this item is part of a complicated project where all bids had been rejected for the Solids Handling project. He reached out to staff prior to the meeting and inquired why this was being proposed and stated that given the complexities of the project and unique arrangement of consultants involved, he thought it would be appropriate for staff to provide an overview for the video record. Director of Engineering and Technical Services Jean -Marc Petit provided a comprehensive overview for the record. He stated that today's action was to create and fund a project for Phase 2 of the Solids Handling project and authorize two professional engineering services agreements outside of the staff authority. Member Pilecki stated that the Engineering and Operations Committee reviewed this project and when looking at alternatives, an emphasis on greenhouse gas and climate change was not reflected in the Position Paper, the Committee requested this be included for the Board's consideration. President Williams stated that this is the most complicated project in Central San history and believed that getting the proposed team involved was a good approach. CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 4 BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Hockett to adopt Item 7 on the Consent Calendar as recommended. Motion passed by unanimous roll call vote. PUBLIC HEARINGS 9. Conduct a continued public hearing to consider approval of Resolution No. 2022-002 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 Resource Recovery Manager Melody LaBella reviewed the presentation included in the agenda materials. She acknowledged the team involved: Central San employee Russ Leavitt, California Environmental Quality Act (CEQA) consultant Marc Papineau, ARC Alternatives' solar consultant Russell Driver, District Counsel Kent Alm, and Tim Cremin, a California Environmental Quality Act (CEQA) specialist with Meyers Nave. Mr. Driver answered several questions from the Board Members. Ms. LaBella informed the Board that this past Monday, Pacific Gas & Electric (PG&E) provided an estimate for the necessary interconnection and stated that once the fee (approximately $533,000) is provided, the interconnection would be completed in approximately 12 months. Therefore, timely payment of the interconnection fee is imperative to stay on schedule. Director of Administration and Finance Philip Leiber stated that he was strongly supportive of paying the upfront cost for the PG&E interconnection fee rather than having it funded through the power purchase agreement (PPA). The District's money is less expensive than the developer's money and, as a public entity, the District has favorable access to low-cost funds. In terms of the borrowing rate, it will depend on when the funds are borrowed. He noted that historically it has been about 4%, and today's rates have been low thus far. Mr. Leiber stated that further discussion is planned to be reviewed at the March Financial Planning Workshop. He said staff can rerun figures, but it makes more sense for the District to pay these costs. Member Pilecki requested an addition of a sixth financial scenario with a Capital- PPA hybrid and a 3:1 CEQA mitigation for burrowing owl habitat. Ms. LaBella explained that Central San's CEQA document does not offer 3:1 compensation for burrowing owl habitat mitigation, so the only way that scenario would be relevant is if Central San received a legal challenge on it. There was further discussion regarding the timeframe of a lawsuit and the potential impacts. It was noted that there is 30 days from when the mitigation is filed for a CEQA lawsuit to be filed. Ms. LaBella advised that staff could add the requested scenario, if necessary, as staff would CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 5 know within 30 days if there was a legal challenge on the 1:1 versus 3:1 mitigation for burrowing owl habitat. Mr. Alm advised that this public hearing is being continued from a previous Board Meeting. President Williams opened the continuance of the public hearing and there being no public comments immediately closed the hearing. BOARD ACTION: Continued the public hearing from September 2, 2021. Motion was made by Member McGill and seconded by Member Hockett to: A. Adopt the proposed resolution which approves a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program, and the Solar Array Project on Central San's Lagiss Property; and B. Authorize the General Manager to 1) Execute Amendment No. 1 to Central San's Power Purchase Agreement with REC Solar, which includes a solar energy purchase price increase from $0.0866 to $0.10 per kilowatt-hour; and 2) Amend an existing as -needed professional consulting services agreement with ARC Alternatives, increasing the cost ceiling from $179,600 to $229,600. Motion passed by unanimous roll call vote. OTHER BOARD ACTION ITEMS 10. Accept (1) the audited comparative Annual Comprehensive Financial Report (ACFR) for the fiscal years ended June 30, 2021, and 2020 performed by Maze & Associates, and (2) the independent auditors' memorandum on internal control and required communications for the fiscal year ended June 30, 2021 Finance Manager Kevin Mizuno and Vikki Rodriguez, Audit Partner of Maze & Associates provided an overview. Ms. Rodriguez stated that the audit was completed and the District was issued an unmodified opinion, the highest available. Other than the report name changes from CAFR to ACFR, and GASB-84, there were no significant changes to accounting policies or footnotes. She reviewed the memorandum provided in the agenda materials. President Williams congratulated the Finance Department on a clean audit. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Lauritzen to accept the audited ACFR for the fiscal years ended June 30, 2021, and 2020, and the auditors' memorandum on internal control and required communications for the fiscal year ended June 30, 2021. Motion passed by unanimous roll call vote. CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 6 11. Adopt Resolution No. 2022-003 establishing the schedule of 2022 regular Board Standing Committee meetings Ms. Young advised that she has worked with all Board Members to create the proposed Committee Meeting Schedule. Member Lauritzen stated that it is easier for her to attend Committee meetings virtually. BOARD ACTION: Motion was made by Member Hockett and seconded by Member McGill to adopt the proposed resolution and schedule of regular 2022 Board Standing Committee meetings as presented. Motion passed by unanimous roll call vote. 12. Consider adopting Resolution No. 2022-004 reauthorizing the use of teleconference/hybrid participation for Board and Committee meetings, pursuant to Brown Act provisions provided under Assembly Bill 361, for the period of January 17 through February 17, 2022 Member Pilecki reiterated that his preference is to return to in -person meetings, but does recognize that the Omicron variant has created another set of circumstances and would deviate from the stance of voting no today. President Williams and Member Hockett concurred with Member Pilecki and will continue to watch the numbers and base the next month's vote off that information. Member Lauritzen advised that she was prepared to physically attend today's Board Meeting but does prefer for Committee meetings to be conducted virtually. Ms. Young reiterated that this Resolution was through February 17 and another resolution would be brought back at that meeting for further consideration. BOARD ACTION: Motion was made by Member McGill and seconded by Member Lauritzen to adopt the proposed resolution to re -authorize virtual/hybrid meetings pursuant to Brown Act provisions provided under AB 361 for the time period stated, effective January 17, 2022. Motion passed by unanimous roll call vote. COVID-19 PANDEMIC RESPONSE 13. Receive update on Central San's response regarding the Coronavirus (COVID-19) pandemic Ms. Barnett reviewed the latest updates as provided in advance of the meeting. It was noted that Contra Costa County moved back into the red tier and she cautioned about the perception of Omicron and a lessening of the Delta variants. BOARD ACTION: Received the update. CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 7 14. Hold discussion on the current COVID-19 vaccination requirement for Central San employees General Manager Roger S. Bailey advised that the direction the Board gave was to implement a policy to mandate vaccinations. He requested staff provide a summary of information and asked whether the Board wants to do anything further with the direction originally provided. Human Resources and Organizational Development Manager Teji O'Malley reviewed the presentation included in the agenda materials. She reviewed an update on vaccination status and recent case counts at Central San. Mr. Bailey noted that of those unvaccinated, three employees were on a leave of absence and one of the three employees has been vaccinated and returned back to work. Ms. O'Malley advised that the information presented regarding the booster shot receipt was voluntary information provided by staff as the Board has not mandated a booster shot. Mr. Bailey responded that of the 25 individuals tested positive, 21 were vaccinated. There was a discussion on symptoms, impacts of quarantine and exposures. In response to a question posed by Member Lauritzen, Ms. O'Malley stated that the employee who was on leave of absence relinquished one week of pay. Member Lauritzen stated that she believed the mandate was to increase the vaccine rate and was not meant to be punitive. Motion was made by Member Lauritzen, second by Member McGill to reimburse the employee for the salary foregone as the individual received the vaccination. Discussion ensued. President Williams stated that if the District does it for one employee and others decide to get vaccinated, they may request more. He suggested an amendment to the motion with a five-day reimbursement limitation. Both Members agreed to the amendment. Member Hockett disagreed and believes that employees should not be rewarded for waiting to be vaccinated and would not support the motion. Member Pilecki opined a policy was implemented and this would send a mixed message. President Williams agreed with Member Lauritzen that the intention was never to be punitive. Member Lauritzen withdrew her motion. CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 8 President Williams read a prepared statement that he supported the mandated vaccination policy, but always focused on the repercussions to staff from that policy. He stated that the Board has had many discussions in Closed Session and received many public comments. There has been little open session discussion other than the District would be flexible. He continued to share his perceptions and beliefs. Motion made by President Williams to change the consequences for not receiving a vaccination to forego leave without pay. Motion died for lack of second. Mr. Alm confirmed that there were no public comments received today regarding this item. Ms. Young confirmed that she had not received any. BOARD ACTION: Held discussion. REPORTS AND ANNOUNCEMENTS 15. General Manaaer —Announcements a. Announcements — January 13, 2022 Mr. Bailey brought attention to the announcement that on December 16, 2021 staff was notified by the California Special Districts Association (CSDA) that its application for COVID-19 relief funds was approved. He noted that although less than the $2.7 million that was submitted, it was a positive impact to the budget and was pleasantly surprised of the decision. BOARD ACTION: Received the announcements. 16. Counsel for the District - No report. 17. Secretary of the District Ms. Young announced the following upcoming Committee and Board meetings: Administration — Tuesday, January 18 at 1:00 p.m. Engineering & Operations — Wednesday, January 19 at 11.00 a.m. Finance — Monday, January 24 at 2:00 p.m. Real Estate, Environmental & Planning — Wednesday, January 26 at 9.00 a.m. Special Board Meeting — Thursday, January 27 at 2:30 p.m. BOARD ACTION: Received the announcements. CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 9 18. Board Members - Committee Minutes a. December 14, 2021 - Administration Committee - President Pilecki and Member Hockett (alternate) b. December 14, 2021 - Engineering & Operations Committee - Member Lauritzen and President Pilecki (alternate) C. December 21, 2021 - Finance Committee - Chair Pilecki and Member Hockett (alternate) BOARD ACTION: Received the Committee minutes. 19. 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 • December 14, 2021 - Board Liaison meeting with Dublin San Ramon Services District (DSRSD) (virtual, no stipend) Member Hockett noted that the draft minutes from the DSRSD meeting were provided as a handout in advance of this meeting. Member Lauritzen — None. Member McGill • December 23, 2021 - Contra Costa Special Districts Association (CCCSDA) Executive Committee Meeting (virtual) • January 5, 2022 - Contra Costa Special Districts Association (CCCSDA) Anniversary Event Ad Hoc Committee (virtual) Member McGill also provided a written report covering his announcements and other meetings. Member Pilecki Member Pilecki announced he attended the County Board of Supervisors reorganization meeting earlier this week, no stipend. President Williams — None. BOARD ACTION: Received the reports and announcements. 20. Board Members - Requests for Stipend/Reimbursement or Conference Attendance No requests. CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 10 21. Board Members - Other Items a. Consider request by Board Member Michael R. McGill to adopt Resolution No. 2022-005 supporting his nomination for election to the Contra Costa Special Districts Association (CCSDA) Member -At -Large Seat BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Lauritzen to adopt the proposed resolution in support of Member McGill's nomination for election as a Member -at -Large for the Contra Costa Special Districts Association. Motion passed by unanimous roll call vote. EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS None. ANNUAL MEETING OF FACILITIES FINANCING AUTHORITY The Board recessed at 4:34 p.m. to reconvene in the annual meeting of the Facilities Financing Authority. 22. Adjourn Board meeting and reconvene as the Central Contra Costa Sanitary District Facilities Financing Authority (FFA) to conduct its Annual Meeting Note: Board Members will not receive a separate or increased stipend for attendance at this meeting. BOARD ACTION: President Williams adjourned the Board meeting and, FFA Chair Michael McGill called to order a meeting of the Facilities Financing Authority. Upon conclusion of business, the FFA Annual Meeting was adjourned, and President Williams re -opened the Central San Board meeting. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957. Mr. Alm announced that there would be no closed session held for agenda Item 23. CENTRAL CONTRA COSTA SANITARY DISTRICT January 13, 2022 Special Board Meeting Minutes — Book 70-Page 11 ADJOURNMENT The meeting was adjourned at 4:45 p.m. David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: �A' gb" Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California