Central San Board Opposes PEPRA Pension Reform and Wildfire Recovery Plan

The Central Contra Costa Sanitary District Board of Directors moved unanimously through a packed agenda Aug. 20, delivering sharp rebukes to Sacramento on pension policy and wildfire recovery while advancing $4.2 million in sewer infrastructure work. With the state's two-year legislative session closing Aug. 31, the board's legislative update consumed the lion's share of the evening — and produced the night's most heated exchanges.

• Board votes 5-0 to oppose AB 1383, warning PEPRA pension reform would "backdoor" a decade of fiscal discipline

• Governor's wildfire recovery proposal draws unanimous opposition over reliance on FEMA funding and depreciation-based cost limits

• $4.2M South Orinda sewer contract awarded after bid protest rejected

• Developer-backed housing bills expected to pass, threatening Central San's plan review authority

• Board adopts watch position on federal Water Cyber Shield Act, citing cybersecurity disclosure concerns

Pension Cost Alarm: Board Draws a Line on AB 1383

Why it matters: AB 1383 would raise the pensionable compensation cap for all PEPRA employees — not just public safety — and lower public safety retirement ages, potentially unwinding years of pension cost controls that special districts like Central San have fought to achieve.

Where things stand: Emily Barnett, Communications and Governmental Relations Manager for Central San, walked the board through the bill's key provisions: increasing the pensionable cap across the board, reducing public safety retirement age from 57 to 55, adding new retirement tiers, and introducing a 3% at 55 tier subject to collective bargaining. The California Special Districts Association opposes the bill. Barnett noted the pensionable cap figure was still being negotiated, with amendments possible as late as the next day.

Board Member Tad Pilecki led the charge against the measure, warning that the district had no analysis of what the changes would cost.

"I'm very much concerned that there is no economic analysis associated with what happens to Central San with the PEPRA cap increase," said Pilecki. "We have worked very hard for over a decade trying to get our pension costs under control. And this looks like it's backdooring all the effort that we put in."

Pilecki argued the bill is a strategic wedge.

"This is the first step of reaching the door to open it up in the future to say, 'OK, well now let's bring everybody in.' Agencies have finally started to get control of their pension costs and their unfunded liabilities. And this looks like it's just going to open up the floodgates again."

Board Member Barbara Hockett agreed:

"Not if you expect to meet your obligations. It just pulls the floor out of all of the planning that we do."

Decisions: The board voted 5-0 to oppose AB 1383 (For: Kuznik, Hockett, McGill, Pilecki, Wedington; Against: none). Staff will communicate the position to CSDA before the Aug. 31 legislative deadline.

Board Rejects Governor's Wildfire Recovery Proposal

Why it matters: The governor's wildfire recovery reform proposal would restructure how investor-owned utilities like PG&E, SDG&E, and SCE handle wildfire costs — but board members and staff said it leans too heavily on a federal agency that hasn't shown up for recent disasters and would limit infrastructure replacement to depreciated value rather than full replacement cost, making community rebuilding harder.

Where things stand: Staff flagged inflammatory language in the governor's press release, which stated that "local governments took $1 billion competing against their own residents who lost their homes." Emily Barnett, Communications and Governmental Relations Manager for Central San, took issue with the framing:

"I think I'm a bit concerned about the inflammatory language of cities — that he's pitting cities and counties and special districts" against fire victims.

Board Member Barbara Hockett zeroed in on the FEMA problem:

"For me it's kind of trippy because the governor knows we got no money from FEMA for the fires. And so I don't know, is there this myth going on out there that FEMA exists somewhere but they didn't show up?"

Decisions: The board voted 5-0 to oppose the proposal (For: Kuznik, Hockett, McGill, Pilecki, Wedington; Against: none).

Housing Bills Poised to Squeeze Plan Review Timelines

Why it matters: Several developer-backed bills nearing passage in Sacramento would limit how many times — and how long — agencies can review housing development plans, directly affecting Central San's ability to scrutinize sewer connections and infrastructure design.

Where things stand: AB 1621, which limits cities and counties to two plan reviews for housing permits and restricts deadline extensions, is expected to pass despite district opposition. Emily Barnett, Communications and Governmental Relations Manager for Central San, explained that "this bill technically only applies to counties and cities, but it also impacts special districts like Central San."

The board debated whether Central San's public health responsibilities under Title 22 — which requires the district to report findings in its wastewater system to the county Department of Public Health — could provide an exception. Board Member Tad Pilecki suggested a public health argument:

"When I read this, it says it can be delayed for public health or safety. And I would consider us a public health issue if it's a terrible design that's coming through."

But Board Member Jean Kuznik, drawing on planning commission experience, was skeptical.

"The bar for what constitutes health and safety is extraordinarily high," she said. "What a reasonable person would consider an objection — those objections don't qualify under the definition of health and safety."

On the bright side, staff reported that a bill that would have frozen regulatory requirements at the moment a developer submitted an application was killed through lobbying by CASA, CSDA, and AQA. AB 1997, which addresses housing development timelines, was amended enough to move the district's position from "opposed" to "concerns."

Staff also noted Prop 45, a CEQA streamlining ballot measure, is polling at 70%.

"I've never seen a proposition poll this highly," Barnett said. "It means it will absolutely pass."

The measure would designate "essential projects" for expedited environmental review, with mixed implications for special districts.

$4.2M South Orinda Sewer Contract Advances

Why it matters: Phase 9 of Central San's South Orinda sewer renovation program keeps the district's systematic approach to replacing aging underground infrastructure on track.

Where things stand: The board rejected a bid protest by Precision Engineering, Inc. and awarded a $4,221,655 contract to California Trenchless, Inc. The item also included a $5,606,000 transfer in the Capital Improvement Budget. The project was found exempt from CEQA. The item passed as part of the consent calendar without discussion.

Decisions: Approved 5-0 as part of the consent calendar (For: Kuznik, Hockett, McGill, Pilecki, Wedington; Against: none).

Sewer Fee Ordinances Adopted for Alamo and Upper Cordell Drive

The basics: California law generally prohibits sanitary districts from using existing ratepayer funds to build new neighborhood sewers. Central San uses reimbursement programs so property owners who fund sewer construction can recover costs when neighboring parcels connect.

Where things stand: Two public hearings — both without public comment — produced four new instruments. Ordinance 348 sets reimbursement fees for parcels connecting to a new sewer on Pine Tree Drive in Alamo, where one property owner paid for installation and three additional parcels could connect.

For the Upper Cordell Drive Contractual Assessment District (CAD 2023-2), approximately 400 feet of 8-inch sewer serves five parcels, with three participating. Staff explained the financing:

"For the three participating parcels, they have the option of either paying a lump sum of just over $39,000 or if they choose to finance it, they will pay about $5,000 each year for 10 years. That does include 4.5% interest."

Resolution 2026-010 confirmed final assessments, Resolution 2026-011 directed placement on the Contra Costa County property tax roll for FY 2026-27, and Ordinance 349 established reimbursement fees for non-participating parcels connecting within 20 years.

Decisions: Ordinance 348 passed 5-0. Resolutions 2026-010, 2026-011, and Ordinance 349 passed 5-0.

Cybersecurity Watch

The board unanimously adopted a watch position on U.S. Sen. Adam Schiff's Water Cyber Shield Act of 2026, introduced Aug. 10. The bill would allow EPA to require utilities to address cybersecurity vulnerabilities and mandate evaluations for large utilities. Staff raised concerns about past federal proposals requiring utilities to share vulnerability information with the federal government, describing such disclosure as unwise. Board Member Tad Pilecki asked about the timeline for taking a formal position; staff noted federal legislation is unpredictable and the bill could be attached as a trailer to an omnibus package.

Decisions: Watch position adopted 5-0.

Minor Items

• Consent calendar approved 5-0, including minutes from three special meetings (July 22, July 23, and Aug. 3) and authorization to retain an arbitrator for a Management Support/Confidential Group MOU appeal.

• Two new employees introduced: Nicole Jimenez (front-desk customer service, 15 years of office management experience) and Stacey Leonard (safety and training special projects, 25+ years with the City of Walnut Creek Police Department), both in the Plant Maintenance and Operations Division.

• July 2026 investment portfolio received without discussion.

• Engineering and Operations Committee minutes received without discussion.

• Elections update: Board President Florence Wedington ran unopposed in Division 3, eliminating the need for an election. Board Member Michael McGill will face a contested election in Division 2 this November.

• Board Member McGill reported attending the Contra Costa Taxpayers Association, CASA summer conference, East Bay Leadership Council dinner, Workforce Development Board meetings, and Orinda Chamber event.

• Board President Wedington reported speaking at the Filipino American Association of Rossmore: "They were very appreciative of all the things that we do and excited to learn about things that they can do as well." She announced she will be absent from the Sept. 3 board meeting, with Board Member Hockett presiding.

• AB 1603 on PFAS/pesticide notification was reported as heavily watered down by agricultural industry lobbying. SB 501 on e-bike battery recycling and AB 762 (vape product ban) were noted as positive developments.

• The board recessed to closed session for a conference with legal counsel on one potential litigation case and labor negotiations with three employee bargaining groups (Employees' Association, Management Support/Confidential Group, and Management Group).