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Nov 14, 2018 Minutes

Published 2019-01-14 11:37:31

1902 – Serving Our Community for over 110 Years – 2018
1. Call to Order
President Moritz called the meeting to order at 7:00 PM
Roll Call
BOARD MEMBERS PRESENT: Moritz, Dehn, Thiele-Sardiña, Walker, Otte
STAFF MEMBERS PRESENT: Ramirez, Condotti, Kitajima, Werness, Scott (electronically)
Others Present: Chris Buja, Teresa Herrera, Matt Anderson, Robert Por, EJ
Shalaby, Machelle Vieux, April Giangerelli
2. Communications from the Public: None
4. Discussion on District Reimbursement Agreement Procedures
Comments: Operations Manager (OM) Ramirez outlined the procedures for reimbursement
agreements which included a discussion on how they are paid out. Reimbursees are not
entitled to reimbursement agreement fees until the connections are made thus fees are paid to
Reimbursees within a reasonable timeframe in the next quarter after the Class 1 or 2 permit
isapplied for and connection made. However, District staff often had a difficult time collecting
this fee, putting the District in an unfavorable position, as the District is obligated to pay the
parties per the agreement. Additionally, the potential of a new connector backing out of a
project before completion, could put the District in a position of needing to collect the
reimbursement amounts back from Reimbursees in order to refund the connector that backed
out. New procedures were implemented to collect reimbursement agreement fees at the
beginning of the process when the initial project application is submitted but reimbursement
agreement fees would not be distributed until the actual sewer connection was made.
Resident Chris Buja asked the Board to address a short term solution that would have the
District take over the agreement to aid property owners.
President Moritz directed District Counsel Condotti to research with staff about requiring
payments made by new property owners binding and non refundable, in order to speed up
payments to reimbursees who have paid into the agreement. DM Scott pointed out that
District staff receives and processes reimbursement payments at no charge to the property
owners, although it does take up considerable staff time. He also noted that the new policy
requires a new homeowner or developer to pay upfront, before connecting, where as the old
policy required all reimbursees to wait until after construction but reimburses are still not
entitled to payment until the connection occurs.
3. Silicon Valley Clean Water FY 2018-19 Budget & CIP Presentation and Discussion
Comments: Teresa Herrera of SVCW gave an update the budget and Capital Improvement
Projects (CIP). She outlined $290M has been spend to date on CIP with $560M remaining to
be spend for a total of $850M. A majority of treatment plant projects have been completed.
Of the remaining $560M in CIP costs the District’s responsibility is $150M with the next District
bond payment due in May/June 2019 for $13M. DM Scott discussed the use of $6M from the
rate stabilization fund to pay part of the $13M and using the SVCW line of credit, District
financing or a reserve fund for the remaining amount.
11. Discussion and Direction on Recycled Water Projects – Sharon Heights & Bayfront,
Including Project Status
Comments: OM Ramirez reported that the Caltrans permit is pending and is now under legal
review. City of Menlo Park has approved the encroachment permit. District has received two
State reimbursements for the Sharon Heights project and another for $2.5M is pending. Grant
applications have been submitted for the Bayfront Recycled Water project.
Machelle Vieux of SLAC addressed the Board regarding the status of construction for the
Sharon Heights project and would like to discuss their permit. DM Scott outlined the status of
construction and presented video of the project. DM Scott reported the District has been
working with SLAC for the past two years on an amendment of their industrial wastewater
discharge permit and came to an agreement on the Best Management Practice to be used.
Machelle Vieux reported that one holding tank has been constructed and is requesting data
that will help future options and determine if additional holding tanks are necessary to reduce
Total Dissolved Solids and Electrical Conductivity for water quality for the recycled water
treatment plant. DM Scott stated that the data has been presented to SLAC in the past and
the District has created a process that would give SLAC flexibility with their permit. Board
consensus was to have Dave Richardson of Woodard & Curran following up with Ms. Vieux to
discuss her concerns.
5. Consent Calendar
A. Approval of Minutes for Regular meeting October 10, 2018
B. Approval of the Withdrawal Order Authorizing Payment of Certain Bills
and Salaries and Consideration of Other Financial Matters for November 14, 2018
C. WBSD Operations and Maintenance Report – October 2018
D. Town of Los Altos Hills Operations and Maintenance Report for Work Performed by
WBSD – October 2018
E. Consider to Ratify and Approve Report on District’s Investment Portfolio Including the
Transactions of Assets Described Therein as of 10/31/18
Motion by: Dehn 2nd by: Sardiña Vote: AYE: 5 NAY: 0 Abstain: 0
Comments: None
6. Consideration of Awarding Bid for the New Metal Storage Building Project to Aztec
Consultants, Inc.
Motion by: Walker 2nd by: Sardiña Vote: AYE: 5 NAY: 0 Abstain: 0
Comments: Treasurer Sardiña asked how long the bids are good. PIM Kitajima responded
that bids are good for 60 days.
7. Consideration of Awarding Bid for the Alpine Road Sanitary Sewer Replacement Project to
Ranger Pipelines, Inc.
Motion by: Dehn 2nd by: Otte Vote: AYE: 5 NAY: 0 Abstain: 0
Comments: None
8. Report & Discussion on Commuter Benefits Program
Comments: OS Ramirez presented the report which shows a total of 14 employees
participating, 10 net vehicles removed from the road and 3 District vehicles being used. Board
consensus was to continue the program.
9. District Manager’s Report
1. CIP Project:
a) Belle Haven III CIP construction began July 23. Currently performing pipe-bursting to replace
some segments of sewer main. 20% complete.
2. Affiliate Agency/Association News:
a) County: District Staff, District Counsel, County Staff and LAFCo are all reviewing a draft
Lafco application, Resolutions and MOUs for transferring the Solid Waste Franchise to the
County. The County has indicated their preference for assignment of the franchise to be
effective January 1, 2020 and will need through September to review and comment on the
b) CASA: Collection System Working Group continuing to meet with the State Water Resources
Control Board to incorporated CASA comments into the General Wastewater Discharge Permit
that all wastewater agencies operate under for controlling and reporting SSO’s. The District
will continue to be involved and provide an update at the Board meeting once a draft WDR is
3. Upcoming Events:
a) Board meetings: December 12. Election of Board Officers and Appointments.
b) Thanksgiving and PMP Luncheon: Noon November 15.
c) Holiday Luncheon: December 6, Holiday Luncheon at Black Pepper – 11:30am.
4) Misc./Action Items from Previous Meeting:
a) SSOs: Zero SSO for November. Total 4 = 2018
10. Consideration to Approve First Quarter Internal Financial Statements & Analysis of
Financial Position as of Quarter End September 30, 2018
Motion by: Dehn 2nd by: Walker Vote: AYE: 5 NAY: 0 Abstain: 0
Comments: OS Ramirez reported on three highlights which include: 1) The Rate Stabilization
fund has been funded; 2) Fully funded 5 months of operating reserve; 3) Paid semi-annual
bond payments. Board Member Dehn mentioned Accountant Liz Bahrami has done another
good job with the Quarterly Report.
12. Report & Discussion on South Bayside Waste Management Authority (SBWMA)
Comments: Director Dehn reported 3 important Requests for Proposals (RFPs) for
Disposal/Landfill, Administrative Services and joint Legislative services. She further reported
on the Organics-2-Energy (O2E) pilot to enhance the existing collection programs. The pilot
costs is $5M. $3M of that amount is available from Cal Recycle Grants. The full scale cost for
such project is estimated to be $15-20M and would be eligible for further grant opportunities.
13. Report, Discussion & Direction on Silicon Valley Clean Water (SVCW) and Discussion on
SVCW CIP Program and Financing
Comments: Director Otte stated there is no report since it was covered during the SVCW
presentation in Item 3.
14. Closed Session
(Pursuant to Cal. Govt. Code §54957.6)Agency designated representatives: District Manager
& Legal Counsel
Employee Organization: Unrepresented Employees & Teamsters Local 350
(Cal. Govt. Code §54956.9(d))
Name of Case: 1740 Oak Avenue, LP v. West Bay Sanitary District, et al. – SMCSC
Case No. 18CIV02183
(Pursuant to Cal. Govt. Code Section 54956.9)
Claimants: Alberto Patino & Arthur Hildebrand
Entered closed session at 9:01p.m. Left closed session at 9:50 p.m.
Reportable action: None.
15. Comments or Reports from Members of the District Board and Consider Items to be
Placed on Future Agenda
Comments: Follow up discussion on reimbursement agreement procedures. An update from
Staff on District’s Reserve funds to address payment to SVCW of the $13M in May/June 2019.
16. Adjournment Time: The meeting was adjourned at 9:52 PM
/s/ Fran Dehn