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Jan 24, 2018 Minutes

Published 2019-01-14 10:38:56

1902 – Serving Our Community for over 110 Years – 2018
WEDNESDAY, JANUARY 24, 2018 AT 7:00 P.M.
Note: Agenda Items Listed In Order They Were Discussed
1. Call to Order
President Moritz called the meeting to order at 7:00 PM
2. Roll Call
BOARD MEMBERS PRESENT: Moritz, Walker, Dehn, Otte
STAFF MEMBERS PRESENT: Scott, Condotti, Katajima, Ramirez
Others Present: Joe LaMarina – SBWMA, Geno Gasparini – Recolgy, Rick
Simonson & John Farnkopf– HF&H Consultants, Tony
Valdivia and Dave Richardson – Woodard Curran, Jeff Knapp – Overaa, Steve Owen – Perc
Water, Robin Driscoll – Sharon Heights Golf and Country Club, Peter Talbot – Kennedy,
Jenkins. Pete Anderson – Anderson Pacific, Sami Kader – WaterWorks Engineers
3. Communications from the Public: None
8. Consider to Adopt Resolution to Approve Model Amended and Restated Franchise
Agreement and Compensation Package with Recology San Mateo County from January 1,
2021 to December 31, 2035 District Manager’s Report
Motion by: Dehn 2nd
by: Walker Vote: AYE: 4 NAY: 0 Abstain: 0
Comments: DM Scott outlined the terms of the new agreement which includes a 15 year term
plus possible extension for another 5 years, no major changes, save $2M – $3M in RFP costs
and need to add transfer language. Secretary Dehn outlined the transfer language and
suggested moving forward subject to that language included. She further added that another
jurisdiction has indicated the agreement would be approved by the District. She would like to
make clear she had no conversation with anyone about approval, only consideration of the
agreement. Motion is made for approval with transfer language added as approved by District
4. Public Hearing: Consideration of Resolution Relating to 2018 Wastewater
Revenue Bonds and Approving Related Documents and Official Actions
Motion to open: Otte 2nd
by: Dehn Vote: AYE: 4 NAY: 0 Abstain: 0
Comments: None
Motion to close: Otte 2nd
by: Walker Vote: AYE: 4 NAY: 0 Abstain: 0
5. Consideration of Resolution Relating to 2018 Wastewater Revenue Bonds and
Official Actions
Motion by: Walker 2nd
by: Otte Vote: AYE: 4 NAY: 0 Abstain: 0
Comments: DM Scott outlined the true costs of bonds:
1. True Interest Cost of the Bonds: 3.24%.
2. Finance charge for the portion of the Bonds which is allocable to the District, being
the sum of all fees and charges paid to third parties (Costs of Issuance of
approximately $98,803 plus estimated underwriter’s compensation and bond
insurance assuming bond insurance is obtained): $326,618.
3. Amount of proceeds of the Bonds expected to be received by the Authority which
is allocable to the District, net of proceeds for Costs of Issuance in (2) above and
net of capitalized interest (if any) and reserves (if any) paid or funded with the
proceeds of the Bonds: $35,328,026.
4. Total payment amount for the portion of the Bonds which is allocable to the District, being
the sum of (a) debt service to be paid on the Bonds to final maturity, plus (b) any
financing costs not paid from proceeds of the Bonds: $55,862,856
6. Discussion on Sewer Service Charges Rate Study for 2018
Comments: Rick Simonson outlined the need for a rate increase effective July 1 which
included 52% of costs for SVCW. $48M will be needed in the next 18 months for the SVCW
capital improvement plan and a total of $160M needed for SVCW CIP projects. Board
consensus is to increase residential rates 5% and increased some commercial classes to pay
for cost of service, ranging from 0% increase to 18% increase. The Board will consider a final
report in February.
7. Consideration of Awarding Design/Build Contract for the West Bay Sanitary District
Recycled Water Project – Sharon Heights
Motion by: Dehn 2nd
by: Walker Vote: AYE: 4 NAY: 0 Abstain: 0
Comments: DM Scott outlined the item which includes a recommendation from the Recycled
Water project Selection Committee to award the Design/Build of the Sharon Heights recycled
water facility to Anderson Pacific/WaterWorks. The bid award consists of a guaranteed
maximum price of $19.695M for design and construction with $2.9M in soft costs and
contingency. DM Scott reported that a careful selection process was followed as prescribed in
the RFP which involved a Selection Committee including two District Board members, three
District staff members and two Sharon Heights members. DM Scott stated that an
authorization letter was received from Sharon Heights Golf and Country Club today.
Jeff Knapp of Overaa Construction spoke to say he is not calling this a protest but would like
additional information. He would like to know if they were highest ranked and lowest priced,
then why aren’t they the best value? Steve Owen – Perc Water also pointed out the District’s
staff report doesn’t show net present value.
DM Scott explained that Auburn Constructors was #1 ranked as a result of the RFP process
and the Selection Committee began negotiations with them. After it was determined that a
mutually beneficial agreement could not be made with them negotiations ended and the team
Committee commenced negotiations with the #2 ranked team Overaa/PercWater. The
Committee met with Overaa/PercWater at least twice in face to face meetings. After the
Committee determined that they could not come to a mutually beneficial agreement with
Overaa, negotiations ended and the team Committee commenced negotiations with the
number # 3 ranked team Anderson Pacific.
Selection Committee Member, Secretary Dehn reported the process was well thought out and
the committee stayed with the process, as prescribed in the RFP, in reviewing the various
proposals. DC Condotti stated he is certain the process was followed and the committee’s
work in evaluation of the proposals was done in keeping with the project’s RFPs.
The Motion by Dehn to award contract was subject to the receipt from the Sharon Heights Golf
and Country Club of a revised authorization letter giving full approval from Sharon Heights of
the award of the contract, and receipt of all due diligence materials, as well as other materials
as outlined in the January 24, 2018 letter.
President Moritz commented that a great amount of material was provided in the Board packet
to make a well informed selection and the process is very well described. President Moritz
thanked all the members on the selection committee for their time and hard work on this
project. DM Scott responded to a grievance from a representative of Perc Water regarding the
process and the decision the selection committee made.
9. Consider to Approve Second Quarter Internal Financial Statements & Analysis of
Financial Position as of Quarter End December 31, 2017
Motion by: Walker 2nd
by: Dehn Vote: AYE: 4 NAY: 0 Abstain: 0
Comments: None
10. District Manager’s Report
1) CIP Project:
a) Belle Haven II is approximately 99% complete.
2) Affiliate Agency/Association News:
a) County: District is working on a proposal to develop an RFP for an analysis of impacts and
challenges to transferring the Solid Waste Franchise to the County.
b) Town of Atherton: District Counsel has provided a draft agreement with Town of Atherton to
accelerate the District’s CIP project to replace the sewer main running through the Town
Center. The agreement is currently under review by the Town and if agreeable the DM will
bring the agreement to the Board for approval February 14, 2018. The District will pay for
construction costs and the Town will pay for soft costs – engineering and public utility
easement acquisition. The main will be relocated toward the south side of the Town campus
and will be further away from PD, Town Chambers and the Library.
3) Upcoming Events:
a) Board meetings: February 14 and 28
b) Finance Committee Meeting will be meeting February 5 to discuss Investment Portfolio,
banking options, and a debt management policy as well as strategies for the $13M allocable to
the District for the SVCW CIP projects due in Q2 of 2019.
4) Misc./Action Items from Previous Meeting:
a) SSOs: 5 SSO’s in 2017.
b) Recruitment: Interviews for Source Control Inspector have begun and second round
interviews are occurring this week. Projects & Engineering Technician interviews are also
scheduled for next week. Applications received are in the single digits reflecting tight labor
market in the Bay Area.
c) City of Half Moon Bay: The City of HMB may be issuing an RFP for Collection System
Maintenance since the Regional Water Board fines for Sewer Authority Mid-Coastside.
d) Sewer Main: concrete pulled from sewer main on El Camino Real from Station 1300 Project.
5) Resource Sharing:
a) Town of Los Altos Hills: 1 SSO in 2016. 3 SSO in 2017. 1 caused by Contractor.
b) Town of Woodside: 0 SSO’s in 2016. 1 pump station SSO in 2017. 0 SSO’s in 2018. The
District has commenced to provide pump station maintenance. District is assisting TOW with
information for their current rate study to include a sinking fund to replace pump station and
CIP plan to replace 1.5% of system annually.
c) Redwood City: District staff responded to assist RWC with determining cause of sink hole
next to 2 story apartment building. Determined it was not leaky storm main or sanitary sewer
11. Consent Calendar
A. Approval of Minutes for Regular meeting January 10, 2018
B. Approval of the Withdrawal Order Authorizing Payment of Certain Bills
and Salaries and Consideration of Other Financial Matters for January 24,
2018 Pg.
C. Consider to Ratify and Approve Report on District’s Investment Portfolio Including the
Transactions of Assets Described Therein as of 12-31-17
D. Consideration of Resolution Consenting to Annexation of Territory to the West Bay
Sanitary District by the San Mateo County Local Agency Formation Commission – 67
Hillbrook Drive, Portola Valley (079-073-120)
Motion by: Dehn 2nd
by: Walker Vote: AYE: 4 NAY: 0 Abstain: 0
Comments: None
12. Discussion and Direction on Recycled Water Projects – Sharon Heights & Bayfront,
Including Project Status
Comments: DM Scott reports the District will need the first year’s service fee from Sharon
Heights before notice to proceed may be sent to contractor.
13. Report & Discussion on South Bayside Waste Management Authority (SBWMA) and
Negotiations for Restated Franchise Agreement
Comments: Secretary Dehn reported the next meeting will be on January 25th
14. Report & Discussion on Silicon Valley Clean Water (SVCW) and Discussion on SVCW CIP
Program and Financing
Comments: Director Otte reported design/build contracts were issued in November and the
design process will take about 9 nine months.
15. Closed Session
(Pursuant to Cal. Govt. Code §54957.6)
Agency designated representatives: District Manager, Legal Counsel
Employee Organization: Teamsters Local 350
Significant exposure to litigation pursuant to Cal. Govt. Code §54956.9(d)(2)
Number of potential cases: Two
Entered closed session at 8:45 p.m. Left closed session at 9:12 p.m.
Reportable action: None
16. Comments or Reports from Members of the District Board and Consider Items to be
Placed on Future Agenda
Comments: None
17. Adjournment Time: The meeting was adjourned at 9:13 PM
/s/ David A. Walker
Secretary (pro tem)