Minutes of the Regular Meeting of the Board of Directors of DELTA DIABLO SANITATION DISTRICT May 14, 2008 The meeting was called to order by Chair Parent on Wednesday, May 14, 2008 at 5:31 p.m. at the District offices, located at 2500 Pittsburg-Antioch Highway, Antioch. Present were Directors Parent, Glover, and Freitas. Also present were Mary Ann Mason, District Counsel; Gary W. Darling, General Manager; Kerry Yoshitomi, Deputy General Manager; Denise Jones, Office Manager/Secretary to the Board; Dennis Laniohan, Operational Services Director; Karen S. Ustin, Business Services Director; Caroline Quinn, Engineering Services Director/District Engineer; Darrell Cain, Laboratory 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; Ron Bielski, Maintenance Mechanic II/O&M Bargaining Unit Representative; Rob Wright, Collections System Worker III/O&M Bargaining Unit Representative; Mary Anne Johnson, Chemist III; Ron Greenwood, Maintenance Mechanic II; and Walter Pease, City of Pittsburg. PUBLIC COMMENTS None EMPLOYEE RECOGNITION Recognize and Congratulate Mary Anne Johnson on Promotion to Chemist III Mr. Cain congratulated Mary Anne Johnson on her recent promotion to Chemist III. He stated that Ms. Johnson has over 25 years of service with the District and has been recognized twice by the California Water Environment Association, and last year by the Water Environment Federation. Chair Parent expressed appreciation for Ms. Johnson reaching the level of Chemist III. The Board recognized and congratulated Ms. Johnson on her promotion. Recognize and Congratulate Robert Wright on Promotion to Collection System Worker III Mr. Dixon introduced and congratulated Rob Wright on his recent promotion to Collection System Worker III. He described Mr. Wright’s background, extensive experience, and his ability to communicate well. Mr. Dixon asked that the Board congratulate Mr. Wright on his promotion. The Board recognized and congratulated Mr. Wright on his promotion. Introduction of Ron Greenwood, Maintenance Mechanic II Mr. Dixon introduced Ron Greenwood, recently hired to fill the last vacancy in the Maintenance Department. He described Mr. Greenwood’s background and extensive experience. Mr. Dixon asked that the Board welcome Mr. Greenwood to the District. On behalf of the Board, Director Freitas welcomed Mr. Greenwood to the Delta Diablo team. Mr. Greenwood stated that he is very happy to be at the District. PUBLIC HEARING Conduct Public Hearing on Fiscal Year 2008/09 – 2012/13 Capital Improvement Program; Adopt Resolution Approving the Program; Authorize Filing of Notice of Exemption in Compliance with Public Resources Code Section 21152; and Receive Report on Capital Improvement Implementation Status Chair Parent opened the public hearing at 5:36 p.m. Mr. Eckerson provided a short presentation describing the review and adoption process, and the implementation status. After providing a Capital Improvement Program (CIP) Summary update, he recommended the Board consider any comments. Director Freitas stated that the CIP was a demonstration of good work effort and he commended Mr. Eckerson and staff. He added that the revenue is more accurate and informative than in the past, but there may be room for more revisions in the future. There being no comments from the public, the public hearing was closed at 5:44 p.m. Director Freitas moved approval, seconded by Director Glover, and by unanimous voice vote, the Board adopted the Resolution approving the CIP and authorized filing of the Notice of Exemption. CONSENT CALENDAR Director Glover moved approval, seconded by Director Freitas, and by unanimous voice vote the Board approved the following Consent Calendar items according to staff recommendations: Approve Minutes of April 9, 2008; Approve Fiscal Year 2007/08 Third Quarter District Investment Report and Monthly Check Register, March 2008; Deny Claim, Latonia J. Hardy, 2147 Crestview Lane, Pittsburg; Receive Notes from Finance Committee Meeting, May 2, 2008; Receive Notes from Personnel Committee Meeting, May 8, 2008; Authorize General Manager to Execute Consulting Services Agreement in an Amount Not to Exceed $995,945, Dodson Psomas Engineering, Design Services, Antioch Recycled Water, Project No. 10055; Approve Engineering Services Department Job Classifications and Salary Ranges for Program Manager and Program Analyst I/II/III Positions and Authorize Recruitment; and Authorize General Manager to Execute Agreement with Contra Costa Water District to Provide Temporary Service to Bay Area Regional Desalination Project Pilot Facility and Waive Capital Facility Capacity Charges and Fees for Term of Agreement. DELIBERATION ITEMS Review Proposed Sewer Service Charge Increases and Set Public Hearing for June 11, 2008 Ms. Ustin introduced the item, which proposes a 4.64% increase in Sewer Service Charges (SSCs) versus the previously projected 4.8%. She noted that no Proposition 218 notice is necessary, but that notice of the public hearing will be published as required. Ms. Ustin added that the new CPI Cost of Living Adjustment of 3.2% for salaries has no effect on the proposed rates. She presented a survey of how District rates compare with other agencies, and showed the Capital Asset Replacement Fund projections without future ad valorem revenue deposits. Ms. Ustin suggested the Board may want to redirect funds in the future. She described the sensitivity analyses conducted by staff, outlined the schedule, and requested the Board set the public hearing for the next regular Board meeting on June 11, 2008 at 5:30 p.m. Director Freitas noted that the Finance Committee has a recommendation that a decision on what to do with the ad valorem tax be made annually based on need. Director Freitas noted that staff must be sensitive to the fact that projected rate increases compound annually and should be as low as possible. He agreed to move forward this year with the recommended increase, but directed staff be proactive and begin looking at this within the next several months. Director Glover agreed this is a good and sound recommendation from the Finance Committee. Director Freitas moved approval, seconded by Director Glover, and by unanimous voice vote, the Board set the public hearing to consider the Proposed Sewer Service Charge Increases for June 11, 2008 at 5:30 p.m. Receive Update on Other Post-Employment Benefits (OPEB) Funding Plan Development; Approve Establishment of an OPEB Reserve Fund Account in the Amount of $380,000; and Abolish the Employee Health and Welfare Trust Fund Ms. Ustin reported that, as previously told to the Board, the District must begin reporting long-term liabilities for OPEB, similar to the way pension plans are reported based on actuarial evaluations of the present worth of long-term payment obligations. Ms. Ustin explained the plan to bring to the Finance Committee a recommendation on establishing an OPEB trust fund, but in the meantime it is proposed to establish an OPEB Reserve Account and to abolish the Health and Welfare Trust Fund. Any funds in the trust fund will be transferred to the new OPEB Reserve Account with all related interest earnings to accrue to the OPEB Reserve Account. Ms. Ustin added that any fees for actuarial services will be charged to the fund, and this action has no impact on the proposed sewer service charge rates. Director Freitas noted that this action is consistent with what other agencies are doing, and it is a prudent course of action. The City of Antioch did the same thing last night at their Board meeting. Director Freitas moved approval, seconded by Director Glover, and by unanimous voice vote, the Board approved establishment of an OPEB Reserve Fund Account and abolished the Employee Health and Welfare Trust Fund. 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 Ms. Chapman introduced the item, noting the value of the recommended reduction is $26,595. Director Glover moved approval, seconded by Chair Parent. Director Freitas opposed, and by a vote of two to one, the Board approved the reduction and authorized the General Manager to execute the agreement. Consider Addendum to Negative Declaration; Reject Bid Protest; Authorize General Manager to Execute Construction Services Agreement in the Amount of $553,730, Biland Construction Co., and Authorize General Manager to Approve Construction Change Orders in an Amount Not to Exceed 10% of Contract Amount, Delta Household Hazardous Waste Collection Facility Expansion, Project No. 10053 In Ms. Roa’s absence, Ms. Quinn introduced the item and provided background on the Household Hazardous Waste (HHW) facility and historical participation. She reported that currently, over 8,000 cars per year use the facility. Ms. Quinn explained the need to expand the facility due to the increasing need for storage capacity and the inadequate accommodations for e-waste, which is generally larger and requires more space. Director Freitas asked whether or not the facility would remain open during construction and Ms. Quinn replied that the facility would remain open. Chair Parent asked how it was determined that 8% of residents are using the facility. Ms. Quinn responded that she would locate that information and provide it to Chair Parent. Chair Parent asked for the definition of Sharps and Ms. Brewer answered that Sharps are needles and diabetes testers. Director Freitas noted that this is very positive and District staff and partner agencies should be extremely proud. He would like to see staff pursue discussions with the editorial boards of local news publications. Director Glover asked how the e-waste collection services are advertised, and Mr. Yoshitomi answered that there was a previous campaign and future ads are being prepared. Ms. Brewer added that the HHW services are advertised in the Brentwood/Oakley Press as well. Director Freitas suggested staff look into bill inserts, and Ms. Brewer responded that staff has provided inserts in the water and garbage bills in the past. Director Freitas noted that the Antioch Chief of Police is organizing a first Saturday cleanup and he would like to see more coordination with that. Director Freitas moved approval, seconded by Director Glover, and by unanimous voice vote, the Board found the Negative Declaration to be the satisfactory and applicable environmental document for this project, authorized the General Manager to execute the Construction Services Agreement and approve change orders in an amount not to exceed 10% of the contract amount. Authorize General Manager to Execute Amendment No. 3 to Agreement with the Contra Costa Clean Water Program to Provide Stormwater Inspections, Antioch, Pittsburg and Oakley Director Freitas recused himself as he works for the contracting agency. Mr. Laniohan introduced the item and provided background. Since the original agreement was executed for District Pretreatment staff to provide stormwater inspection services to fifteen other agencies, there have been two amendments. This third amendment is to eliminate a member, which brings the total participating agencies back down to the original number of members. All District costs are completely reimbursed by the participating agencies. Mr. Laniohan described a typical inspection, noting that that District staff is very qualified to perform these inspections. Director Glover moved approval, seconded by Chair Parent, and by a vote of 2 to 0, the Board authorized the General Manager to execute Amendment No. 3 to the Agreement with Contra Costa Clean Water Program. Authorize Execution of Memorandum of Agreement for Collaboration in Federal Legislative Efforts, Bay Area Recycled Water Coalition Ms. Quinn introduced the item describing the Coalition which consists of seven agencies. She explained the value of the Coalition in having united support of all partners represented to the various agencies’ members of congress. Ms. Quinn described the 2007/2008 activities, noting that the Coalition is now focused on appropriations. She outlined future efforts and explained that this Memorandum of Agreement provides cost sharing and allocation of federal funds. She noted that a revised version of the agreement, containing only minor, non-substantive changes, was provided to the Board on their desks and was placed at the entrance to the Board Room for the public. District Counsel described the two minor changes for the Board. Director Freitas moved approval, seconded by Director Glover, and by unanimous voice vote, the Board authorized execution of the Memorandum of Agreement. PRESENTATIONS AND REPORTS None GENERAL MANAGER'S COMMENTS Mr. Darling noted that on the Bay Area Recycled Water Coalition item above, Ms. Quinn has gone above and beyond the call of duty. Mr. Darling stated that, on their desks, the Board has been provided copies of two recent press items related to recycled water, with District staff comments highlighted. Mr. Darling updated the Board on today’s Local Agency Formation Commission (LAFCO) meeting. Two annexations, Mirant and Sky Ranch II, were approved. On the item discussed by the Board last month regarding the District’s Sphere of Influence and the Urban Limit Line (ULL), there was extensive discussion. One LAFCO staff member suggested doing the cleanup work to make the various boundaries match. Another option is to take on all the additional properties. Director Glover added that the discussions were very robust. His desire is to make the lines contiguous with the ULL and voter-approved lines. The cost is unknown at this time and needs to be identified. Chair Freitas asked if this will trigger the California Environmental Quality Act and Director Glover answered, yes, that is where the real cost is. Mr. Darling noted that the July Board of Directors meeting will be a Strategic Planning Meeting Workshop and will begin early, at 5:00 p.m. in the POC Lunchroom. DIRECTORS’ COMMENTS Director Glover noted that he will not be attending the June Board of Directors meeting. CORRESPONDENCE Receive Monthly Report dated April 30, 2008, Federal Advocates, Inc. Director Freitas noted that the report makes reference to the passing of Senate Bill 2739. He asked if Federal Advocates is moving forward with appropriations. Mr. Darling answered yes. 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 6:36 p.m. The next Regular Board Meeting will be Wednesday, June 11, 2008 at 5:30 p.m. Donald P. Freitas Board Secretary (Recording Secretary: Denise Jones) Board of Directors Meeting Page 2 May 14, 2008 Z:\Board\Minutes\2008\05-Minutes - May 14, 2008.doc Z:\Board\Minutes\2008\05-Minutes - May 14, 2008.doc