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HomeMy WebLinkAbout03.a. Receive minutes of meeting held 12-18-24Page 1 of 4 Item 3.a. 110ENTRAL SAN January 9, 2025 FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: DECEMBER 18, 2024 SPECIAL BOARD MEETING MINUTES Attached are the draft minutes of the above Board meeting. ATTACHMENTS: 1. Draft (Special) Board minutes 12-18-24 January 9, 2025 Special Board Meeting Agenda Packet - Page 10 of 93 110ENTRAL SAN MINUTES* SPECIAL BOARD MEETING Multi -Purpose Room Wednesday, December 18, 2024 1:00 P.M. DRAFT Open Session — Multi -Purpose Room (Video recorded) ROLL CALL Page 2 of 4 BOARD OF DIRECTORS: MICHAEL R. MCGILL President Pro Tent BARBARA D.HOCKETT JEANF. KUZNIK TAD J PILECKI FLORENCE T. WEDINGTON A special meeting of the Board of Directors was called to order by President Pro Tem McGill at 1:00 p.m. Secretary of the District Katie Young called roll: PRESENT. Members: Hockett, Kuznik, McGill, Pilecki, Wedington ABSENT: Members: None PLEDGE OF ALLEGIANCE The Board, staff and audience joined in the Pledge of Allegiance. PUBLIC COMMENT PERIOD None. WORKSHOP 1. Conduct the Financial Planning Workshop in which the following will be presented and discussed: • Introduction to Proposition 218 Rate Setting • Overview of Influences that will impact rates, including nutrients • Discussion of rate schedule time horizon • Updated Financial Planning Assumptions • Overview of Sewer Service Charge Rate and Competitive Comparison to Peers These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. January 9, 2025 Special Board Meeting Agenda Packet - Page 11 of 93 Page 3 of 4 CENTRAL CONTRA COSTA SANITARY DISTRICT December 18, 2024 Special Board Meeting Minutes - Page 2 General Manager Roger S. Bailey reviewed the objectives and provided an introduction to the Board's workshop included in the agenda materials. Planning and Development Services Division Manager Danea Gemmell reviewed the presentation included in the agenda materials and responded to several questions from the Board Members. Topics included an explanation of the Proposition 218 Rate Setting process, including the scheduling of a public hearing and vigorously soliciting input from ratepayers to make the public hearing useful and completely transparent; the publication of the Cost -of -Service study used to determine if a rate increase is necessary and at what level the rates will be; cost proportionality and associated rate structure; and different rate setting scenarios. Deputy General Manager — Engineering and Operations Greg Norby reviewed the portion of the presentation that outlined the impact of Bay Area Nutrient Watershed Permit compliance on the overall cost of service and corresponding rates. Member Pilecki requested staff bring more information regarding customer outreach, changing the process for the Proposition 218 notice and how a customer can protest. He mentioned having a tear off card. Mr. Bailey advised that staff will do so. President Pro Tem McGill inquired about having a four-year rate increase and the need to change the rates what the process would be. District Counsel Leah Castella advised that changing the rates would have to be supported by a cost -of -service study. Staff is recommending a two-year rate structure. In response to a question from Member Pilecki on the possibility of the State of California pursuing access to Central San's tax money, Communications and Governmental Affairs Manager Emily Barnett responded that while there has been instances where the state tried to get the money, she does not believe that prospect is likely and she is more concerned about legislation that has been enacted that impacts how fees are assessed and collected. Member Wedington stated that she is content with modifying the Capital program to reallocate resources but wants to make sure Central San is properly prepared for wet weather occurrences. Ms. Gemmell confirmed that the District is prepared and that the primary project is continuing but the secondary project will progress at a slightly slower pace. Member Pilecki expressed his extreme concerns about deferring so many projects and suggested revisiting the master plan. Mr. Norby advised that staff would be happy to provide more information on the projects being deferred. Deputy General Manager — Administration Phil Leiber added that there was no mandated limit imposed on staff and that it was a bottom-up approach to balance factors. Ms. Gemmell advised that at the January 16 Financial Workshop staff will dive more into the projects that are being deferred. Member Pilecki stated that he is partial to the 4% increase the next two years and should shortfall in revenue occur, use the rate stabilization fund. January 9, 2025 Special Board Meeting Agenda Packet - Page 12 of 93 Page 4 of 4 CENTRAL CONTRA COSTA SANITARY DISTRICT December 18, 2024 Special Board Meeting Minutes - Page 3 Member Hockett opined that project completion and priority should not be written in stone and that while she appreciates Member Pilecki's concerns, the District must be able to pivot when issues such as the Nutrients Watershed Permit arise. She stated that the District needs to explore other options for how to manage these issues with flexibility. Operations Optimization Manager Nitin Goel stated that since the implementation of the Master Plan, many projects have been completed that addressed the needed improvements identified in it and the benefits of such will help staff assess how the completion of the projects will impact future financial needs. Member Wedington stated that she supports a two-year approach and keep the rate increases at 4% for each of those two years. Member Kuznik advised that she supports the two-year approach as well with the 4% increase as the next couple of years could bring a lot of changes. Management Analyst Geoff Michalczyk provided a brief overview of the current Cost -of -Service analysis findings. Discussion ensued about how best to proceed with Proposition 218 process/protests in an easier and meaningful way. With general consensus from the Board, staff will bring an item for discussion on the process of the Proposition 218 notice. BOARD ACTION: After receiving no public comments, consensus was reached to bring more information back to the January 91" Board meeting regarding the Proposition 218 notice process. Provided guidance on a 2 -year rate setting time horizon maintaining a 4% per year increase as approved in the previous rate adjustment, to be further evaluated at the second Financial Workshop scheduled for January 16, 2025. The meeting was adjourned at 3:19 p.m. Michael R. McGill President Pro Tem Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young, CPMC, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California January 9, 2025 Special Board Meeting Agenda Packet - Page 13 of 93