Minutes of the Regular Meeting of the Board of Directors of DELTA DIABLO SANITATION DISTRICT April 9, 2008 The meeting was called to order by Chair Parent on Wednesday, April 9, 2008 at 5:36 p.m. at the District offices, located at 2500 Pittsburg-Antioch Highway, Antioch. Present were Directors Parent and Freitas. Director Glover was absent. Also present were Mary Ann Mason, District Counsel; Gary W. Darling, General Manager; Kerry Yoshitomi, Deputy General Manager; Dennis Laniohan, Operational Services Director; Caroline Quinn, Engineering Services Director/District Engineer; Steve Dominguez, Plant Manager; Dean Eckerson, Principal Engineer; Mike Dixon, Maintenance Manager; Patricia E. Chapman, Associate Engineer; Theresa Harris, Finance Supervisor; Linda Brewer, Community Outreach Coordinator; Matt Gotshall, Computer Analyst/P&T Bargaining Unit Representative; Jess Hague, Electrical/Instrumentation Technician II; Denise Jones, Office Manager/Secretary to the Board; Walter Pease, City of Pittsburg; and three representatives from PG&E. PUBLIC COMMENTS None EMPLOYEE RECOGNITION Introduction of Jess Hague, Electrical/Instrumentation Technician II Mr. Dixon introduced Jess Hague to the Board. He noted that this is the final vacancy in the Electrical/Instrumentation Department to be filled, and the District feels very fortunate to have Mr. Hague, who is an excellent technician. Mr. Hague attended the Perry Institute for his training and worked at Dow Chemical and Calpine prior to coming to the District. Mr. Hague stated that he is glad to be working at the District. On behalf of the Board, Director Freitas welcomed Mr. Hague to the District. CONSENT CALENDAR Director Freitas moved approval, seconded by Chair Parent, and by unanimous voice vote the Board approved the following Consent Calendar items according to staff recommendations: Approve Minutes of March 20, 2008; Approve Monthly Check Register, February 2008; Adopt Resolution Authorizing Renewal of Participation in the State of California Purchase Card Program, Cal-Card, and Authorize the Business Services Director to Execute Purchase Card Agreement; Authorize General Manager to Execute Amendment No. 1 to Consulting Services Agreement in an Amount Not to Exceed $10,000, RMC Water and Environment, Regional Industrial Recycled Water, Project No. 10038; Authorize General Manager to Execute a Three-Year Consulting Services Agreement in an Amount Not to Exceed $94,000, Maze & Associates, Financial Audit Services for Fiscal Years Ending June 30, 2008, 2009, and 2010; and Receive Notes from Finance Committee Meeting, March 25, 2008. DELIBERATION ITEMS Adopt Resolutions Authorizing Delta Diablo Sanitation District to Contract with California Public Employees Retirement System (CalPERS) for Medical Benefits for Employees and Retirees Effective July 1, 2008 Mr. Darling stated that, due to Ms. Rhodes Alexander being ill, he would present the item to the Board. Mr. Darling stated that the adoption of the five proposed resolutions is a requirement for the District to contract with CalPERS for medical benefits for employees and retirees. He stated that he would be happy to answer any questions the Board may have. Director Freitas moved approval, seconded by Chair Parent, and by unanimous voice vote, the Board adopted the resolutions authorizing Delta Diablo Sanitation District to contract with CalPERS for medical benefits for employees and retirees, effective July 1, 2008. Approve Reduction and Authorize General Manager to Execute Agreement, Reduction of Capital Facilities Capacity Charges, Habitat for Humanity East Bay, Nine Homes on Inglewood Street, Bay Point Director Freitas suggested the item be held over for full Board consideration at the next Regular meeting of the Board of Directors on May 14, 2008. Adopt Oppose Position to State Legislative Analyst’s Office Proposed Shift of Water and Wastewater District Ad Valorem Taxes to Counties Ms. Brewer introduced the item and provided a Power Point presentation. She reported that the District stands to lose approximately $1.4 million annually if the Ad Valorem taxes are transferred to counties. While the District does not rely on these property taxes, they have been used most recently for the Pittsburg Recycled Water project, and are considered essential funds for the District. Ms. Brewer noted that if taken, the taxes would need to be replaced with a customer rate increase. Director Freitas noted that the potential loss of Ad Valorem taxes has been discussed for at least ten years and should not be a surprise. While he opposes it, he noted that special districts do have the ability to increase rates more easily than cities do. Chair Parent stated that the fact that special districts can raise rates more easily is not justification for taking the taxes for the counties. Director Freitas added that the District has been prudent, but it is inevitable that this threat will continue to come back. He suggested the Finance Committee make a recommendation to the Board on how to handle the threat with regard to rate structure. Chair Parent moved approval, seconded by Director Freitas, and by unanimous voice vote, the Board adopted an oppose position. Authorize General Manager to Execute Bridgehead Pump Station/Gateway Generating System Pipeline Agreement, Pacific Gas & Electric Company, Antioch Ms. Chapman introduced the item, noting that three representatives from PG&E were present. She showed a map of the reorganization area and indicated the location of the proposed sewer line. She noted that the proposed Agreement terms include, among other items, responsibility of pipeline costs, ownership of completed improvements, environmental compliance liability, control and coordination of work, and authority to discharge. PG&E representatives have already signed the agreement and are ready to submit a check in the amount of $100,000 to the District. Director Freitas moved approval, seconded by Chair Parent, and by unanimous voice vote, the Board authorized the General Manager to execute the Agreement with PG&E. PRESENTATIONS AND REPORTS Receive Presentation on California Water Environment Association San Francisco Bay Section Operations and Maintenance Tour, March 19, 2008 Mr. Dominguez provided a report on the recent California Water Environment Association (CWEA) Operations and Maintenance Tour held at the District. The purpose of the tour was to bring together operators, mechanics, engineers, students, and District employees. There were approximately 60 attendees. Mr. Dominguez outlined the tour highlights in a Power Point presentation. Some of the feedback on the tours that was received by District staff was that the DDSD staff is well-trained, the facility is clean, and staff was very welcoming. Mr. Dominguez noted that it was plant-wide team effort and he thanked everyone who played a part. Director Freitas noted that there are many benefits from holding this type of event. It lets everyone outside of the District know that Delta Diablo is an outstanding facility. Chair Parent added that staffs of other agencies want to see first-hand a plant they’ve heard is running well. The large turnout is a good sign. The Board received and filed the report. Receive Update on Local Agency Formation Commission April 9, 2008 Meeting Mr. Eckerson, just returning from the Local Agency Formation Commission (LAFCO) meeting, reported on the results of that meeting. There were several items on the agenda that were of interest to the District. The City of Antioch item, discussed by Ms. Chapman in a previous item, was approved. On the Sphere of Influence (SOI) revision to coincide with the Urban Limit Line (ULL), LAFCO previously had postponed the item and LAFCO Counsel has now provided a legal opinion. A number of the commission members feel that the SOI revision is important for consistency, but do not feel that LAFCO should be the lead agency. Study costs are estimated at $30,000 to $40,000. The item was continued in order to receive input from the county, City of Pittsburg, City of Antioch, and the District. The Board expressed their frustration with LAFCO’s decision to continue the item. Director Freitas noted that this is a policy issue. He would like District staff to meet with the county, City of Pittsburg, and City of Antioch to decide who will take the lead. This needs to be established as a priority. He added that staff needs to find out exactly what LAFCO wants and/or needs. Chair Parent stated that if LAFCO were to make the District’s SOI the same as the ULL, then there would be no further issues. Mr. Darling agreed, saying that the biggest issue is the process. The next item considered at the LAFCO meeting was the Sky Ranch II Subdivision. It was approved to bring the property into the District’s SOI. The last item considered was amendment of the SOI by ARB at 1875 Loveridge Road, Pittsburg, and it was approved. The Board received and filed the report. GENERAL MANAGER'S COMMENTS Mr. Darling reported that the short film that the Board recently viewed titled “Wastewater World” won an award from CWEA. Ms. Brewer and one of the students who made the film will be attending the CWEA Annual Awards Conference in Sacramento to receive the award. Mr. Darling reported that the District is sponsoring a Science Teacher Dinner with Dow Chemical at the Wetlands on April 24, 2008. The Board is invited to attend and should contact Ms. Brewer to RSVP. Mr. Darling reported that Ironhouse Sanitary District (ISD) has been issued a draft National Pollutant Discharge Elimination System (NPDES) Permit, and the District has commented on it. The District’s comment letter was the only one received. The draft Permit is scheduled to be considered at the Central Valley Regional Water Quality Control Board’s April 24, 2008 meeting. District staff will be in attendance. The item is currently listed on the Uncontested Calendar. DIRECTORS’ COMMENTS None CORRESPONDENCE Receive Monthly Report dated March 31, 2008, Federal Advocates, Inc. The Board received and filed the report. CLOSED SESSION None ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 6:25 p.m. The next Regular Board Meeting will be Wednesday, May 14, 2008 at 5:30 p.m. Donald P. Freitas Board Secretary (Recording Secretary: Denise Jones) Board of Directors Meeting Page 4 April 9, 2008 Z:\Board\Minutes\2008\04-Minutes - April 9, 2008.doc Z:\Board\Minutes\2008\04-Minutes - April 9, 2008.doc