Minutes of the Special Meeting of the Board of Directors of DELTA DIABLO SANITATION DISTRICT April 14, 2010 The meeting was called to order by Chair Davis on Wednesday, April 14, 2010 at 4:03 p.m. in the Plant Operations Center Lunch Room located at 2600 Pittsburg-Antioch Highway, Pittsburg. Present were Directors Federal Glover, James Davis and Nancy Parent. 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; Karen Ustin, Business Services Director; Steve Dominguez, Plant Manager/Management Bargaining Unit Representative; Mike Dixon, Maintenance Manager/Management Bargaining Unit Representative; Darrell Cain, Laboratory Manager/Management Bargaining Unit Representative; Denise Jones, Office Manager/Secretary to the Board; Cheryl Rhodes Alexander, Human Resources Manager; Dean Eckerson, Principal Engineer; Amanda Roa, Environmental Compliance Engineer/P&T Bargaining Unit Representative; Jayne Strommer, Project Manager; Theresa Harris, Finance Manager; Denni Baumer, Purchasing Manager; Patricia Chapman, Associate Engineer; Matt Gotshall, Computer Analyst/P&T Bargaining Unit Representative; Steve Laren, Safety Officer; and Thanh Vo, Assistant Engineer; Ron Bielski, Maintenance Lead/O&M Bargaining Unit Representative; and Walter Pease, Assistant Public Works Director, City of Pittsburg. PUBLIC COMMENTS None STRATEGIC PLANNING Mr. Darling provided an introduction to the Strategic Planning Workshop. He stated that staff would provide a presentation on the District’s accomplishments this past year. Mr. Darling introduced Ms. Alexander who presented a summary of the 2009 Employee Survey results. This survey followed the same format as was used in the 2004 survey to allow for accurate comparison and relevant and useful results. Ms. Rhodes Alexander provided a Power Point presentation, explaining some of the responses. She noted that the full Survey document is also available for the Board’s viewing. Ms. Rhodes Alexander pointed out many of the positive changes that have resulted due to actions taken after the 2004 survey, including general manager meetings and better overall communication with staff. Ms. Rhodes Alexander also noted the response rate on the 2009 survey was 97.4% compared to 2004’s response rate of 83%. The survey indicates that while many things are being done right, there is still room for improvement in some areas. Ms. Rhodes Alexander showed a demographic chart indicating that 57% of employees have been at the District more that 5 years. Over 70% of employees believe the District is the best place to work. Ms. Rhodes Alexander briefly outlined some of the written comments received on the survey. The results indicated that overwhelmingly, employees appreciate the family-like atmosphere more than anything else. Chair Davis asked about the survey administration and Ms. Rhodes Alexander explained the anonymous process used to encourage employees to participate. The Board received and filed the report. STRATEGIC PLANNING WORKSHOP Receive Report on Strategic Business Plan Progress and Adopt Updated Strategic Business Plan Ms. Harris reported on Goal 1-1, explaining how the District has contracted with Public Agency Retirement Services (PARS) to reduce Other Post Employment Benefits (OPEB) liability; participated in the Proposition 1A Securitization; and reduced Chemical usage costs. Staff has also implemented more efficient strategies, including Instrument Tech Jess Hague’s optimizing programming scheme which reduced chemical usage by 30%. Mr. Cain reported on Goal 2-1. He noted that, in addition to the many awards won by the District his past year, employees are doing extraordinary things on a regular basis. He gave credit to Mr. Laren who had driven the District towards excellence in safety and many of the awards received this year. Mr. Bruchay discussed Goal 2-3 and the District’s goal of being a “learning organization”. The computer lab training room project was recently completed and has resulted in increased in-house training. In addition, there continue to be internal promotion opportunities, including the new Recycled Water Program Coordinator position which was filled by a former Senior Operator. Ms. Ustin reported on Goal 2-4 regarding communications. Periodic “All Hands” meetings were established with the goal of all staff hearing the same information at the same time. Quarterly meetings between the General Manager and representatives of the three bargaining units continue to provide opportunity for discussing issues and concerns. The newly created Extended Management Team, comprised of executive directors and management level staff, meets monthly to discuss matters of significance that affect all staff. Director Parent noted one Employee Survey comment was that it takes too long for suggestions to be implemented due to the number of staff who must review it. She asked if that is the type of issue that the Extended Management Team might address in their meetings. Ms. Ustin responded yes, it could be a discussion for the Extended Management Team group. Mr. Laren addressed Goal 2-5 relating to safety programs and employee health. The success of the District’s wellness program is evidenced in a 30% increase in participation. Fifty percent of District employees are now participating in the confidential program, which is in partnership with John Muir Medical Health. Mr. Laren reported the District has 1414 days without a lost time accident. Staff won the California Water Environment Association’s Loss Program last year, and has now won the state award. Director Parent asked whether or not the District’s Confined Space Program is it still being marketed to other agencies and groups, and Mr. Laren answered yes, he is actually presenting it to a group next week. Ms. Strommer reported on Goal 3-1 regarding the monitoring of legislation and regulation. District staff is currently leading two regional coalitions. Since the March Washington D.C. trip, two representatives from Congressman Garamendi’s office have requested a visit to the District. Ms. Baumer reported on Goal 3-2. Two accomplishments this year toward establishing a leadership role in sustainable business practices were the updating of the Environmentally Preferably Purchasing Policy and implementation of an online bid service. The online bid service is used by over 80 agencies in California and has already resulted in streamlined procedures and increased competitiveness in bidding. Mr. Eckerson reported on Goal 3-3. A large part of the District’s operating cost is energy. Mr. Eckerson reported that three energy-related projects were pursued in the past year: A solar system for the Recycled Water Facility, Grease Receiving Facility; and Biosolids to Energy. The District has been in a learning mode due to all of the new technologies being considered. Mr. Yoshitomi reported on Goal 4-1 regarding community outreach. A great deal of work was done in the outreach area this past year mostly due to Angela Lowrey and other newcomers such as Ms. Quinn, Mr. Eckerson, and Mr. Dominguez becoming the District’s ambassadors. Mr. Dixon reported on Goal 4-2 regarding collaborating with other organization on mutual training needs. Mr. Dixon sited several specific training collaborations this past year with other agencies and cities, including workshops and tours, and hosting events on-site. Ms. Quinn reported on Goal 4 and the District’s leadership role in two regional solutions. She stated that the efforts to develop regional solutions are very challenging and best approached together with other agencies that have common interests. Board members have also participated in the efforts. One big move forward this year was the Biosolids to Energy Coalition releasing a Request for Qualifications, which are currently under review. Nearly $37 million has been secured for recycled water projects. This year, the focus will be working with federal agencies and other stakeholders toward a streamlined process for seeking funding. Ms. Quinn reported that the District is very actively involved in the East County Water Management Association (ECWMA). The ECWMA was formed in 1995 when regionalizing was just taking shape, and it has now become essential for securing funding for local projects. Ms. Quinn reported on expansion of the Delta Household Hazardous Waste (HHW) Collection Facility to expand the collection of e-waste and the reuse room. Mr. Dominguez reported on Goal 4-4 and the “University of DDSD”. The District is a learning and training organization. He noted the delta Discovery Voyages, District plant tours, and the PTech and ETech programs at Los Medanos College. The District has also partnered with other agencies to offer training on Wastewater operator certifications. Mr. Dominguez reported that the District is a leader in the Regional Occupational Program (ROP) and very involved in finding a solution to the shortage of qualified operators. Mr. Laniohan reported on Goal 5-1 and the evaluation of current programs to determine potential additional services that could be efficiently and effectively provided by the District. He noted the Antioch and Pittsburg recycled water programs, the Grease to Energy (G2E) Program, the HHW expansion, desalination, and product stewardship. He noted that the G2E is not just a facility, it is an entire program. In support of product stewardship this past year, the board adopted a resolution supporting the mission to shift the burden of waste disposal to the manufacturers. Mr. Laren reported on the Next Steps. Staff recommends a modification to the Strategic Business Plan (SBP) and Core Values. In reviewing the SBP, he noted that there was no reference to safety. His recommendation is taken from the Injury and Illness Prevention Plan (IIPP), which is the basis for the District’s safety program. Staff proposes adding Objective 1-4: Actively Promote A Safe and Healthy Workplace that Cultivates a Culture that Highly Values Safe Work Practices, and the following Value: Safety – A Commitment to Provide a Safe and Healthy Working Environment; To Establish and Integrate Safe Work Practices into the Workplace, and to Encourage all Staff to Develop Safe Work Habits that can be Used On or Off the Job. Mr. Laren noted that safety can be described as a cost saving measure because even a minor accident could result in significant cost to the District. Mr. Darling opened the discussion for questions or comments by the Board, and asked that they adopt the updated SBP. District Counsel stated the District is a very dynamic agency, not a reactive agency. She sees a lot of forward thinking projects to address the future and move ahead of the curve. She also experiences a lot of competence in the staff and believes DDSD is a stellar organization. Director Glover said the District has come a long way, and it is because of the employees. There is a lot to be proud of. Chair Davis asked about the core value of Safety. He asked if there is a plan onsite for evacuation of employees in the event of a disaster. Mr. Laren responded that there is a plan in place. In addition, the Board passed a resolution last year approving the District’s Hazard Mitigation Program. Much of that Program specifically addresses natural disasters. Director Parent moved approval, seconded by Director Glover, and, by unanimous voice vote, the Board adopted the updated Strategic Business Plan. Chair Davis adjourned the meeting at 5:45 p.m. for a short break, and reconvened the Regular Session at 5:59 p.m. CONSENT CALENDAR Director Glover moved approval, seconded by Director Parent and, by unanimous voice vote, the Board approved the following Consent Calendar items according to staff recommendations: Approve Minutes of March 4, 2010; Approve Minutes of the Special Meeting of the Board of Directors of Delta Diablo Sanitation District, March 9, 2010 and March 11, 2010; Approve District Monthly Check Register, February 2010; Receive Notes from Finance Committee Meeting, March 23, 2010; Adopt California Environmental Quality Act Mitigated Negative Declaration and Related Findings; Adopt Mitigation Monitoring and Reporting Program; Approve and Authorize District to Carry out the Project; and Authorize General Manager to File Notice of Determination, Photovoltaic Energy Generation, Project No. 10119; Approve and Authorize General Manager to Execute Settlement Agreement and Release, Capital Facilities Capacity Charges, Skyline Crest Enterprises, LLC, Antioch; Authorize General Manager to Execute Consulting Services Contract in an Amount Not to Exceed $84,900, Kennedy/Jenks Consultants, Advanced Treatment for Recycled Water Facility; Authorize Expenditure of $150,000 in Fiscal Year 2009/2010 and Modify Capital Improvement Program Expenditure Schedule Accordingly, Back-Up Diesel Generator Automatic Transfer System; and Authorize General Manager to Execute Amendment No. 1 to Consulting Services Contract in Amount Not to Exceed $65,400, Whitley Burchett and Associates, Arcy Lane Influent Junction Structures Replacement, Project No. 10127. DELIBERATION Review Proposed Sewer Service Charges Increases, Set Public Hearing for June 9, 2010, and Authorize Distribution of Proposition 218 Notices Ms. Ustin provided a Power Point presentation on the fiscal year (FY) 10/11 Sewer Service Charge Analysis. Staff is proposing and adjustment of 4.8%, which compares favorably to last year’s prediction of 5%. This increase does require a Proposition 218 (Prop 218) Notice. Ms. Ustin reviewed key assumptions, including the O&M budget; Cost of Living Allowance (COLA); the O&M Reserve; and a growth of 400 ERU in the current fiscal year, 600 ERU in FY 10/11, and 800 ERU thereafter. Ms. Ustin showed a chart of other agency’s fees and how the District compares. She reported on Capital Asset Fund Projections, which have been depleted. Staff is proposing transfers of funds in current and next fiscal years. Transfers would be from the Capital Asset Replacement Fund, which is very well funded at this time. Staff is also proposing three inter-fund Loans to the Capital Expansion fund, which would be fully repaid, with interest, by FY 17. Ms. Ustin requested the Board set the Public Hearing for June 9, 2010 and authorize distribution of the Prop 218 Notices. Director Glover moved approval, seconded by Director Davis, and, by unanimous voice vote, the Board set the Public Hearing for June 9, 2010 and authorized distribution of the Prop 218 Notices. PRESENTATIONS AND REPORTS None GENERAL MANAGER'S COMMENTS Mr. Darling mentioned that he and several staff will be attending the upcoming California Association of Sanitation Agencies (CASA) Spring Conference this month in Newport Beach. He noted that the Board is always welcome to attend. DIRECTORS’ COMMENTS Director Parent commented that these annual Strategic Planning Workshop meetings are beneficial for the Board and staff. Improvements made in areas of concern over the period of time since the last Employee Survey is very good, but there is still a ways to go. She encouraged staff feel free to suggest improvements and to know that what they say is heard and sometimes implemented. CORRESPONDENCE Receive Monthly Report dated March 30, 2010, Federal Advocates, Inc., Bay Area Recycled Water Coalition, Project No. 90024 The Board received and filed the report. Receive Monthly Federal Lobbying Report dated March 2010, ENS Resources, Inc., Bay Area Biosolids to Energy Coalition, Project No. 10089 The Board received and filed the report Receive Monthly State Lobbying Report dated March 30, 2010, Edelstein, Gilbert, Robson & Smith, Bay Area Regional Biosolids to Energy Coalition, Project No. 10089 The Board received and filed the report CLOSED SESSION Chair Davis adjourned the meeting to Closed Session at 6:33 p.m. for the purpose of: CONFERENCE WITH LABOR NEGOTIATOR Agency Negotiator: Gary Darling, General Manager Employee Organizations: Operations & Maintenance Bargaining Unit; Professional & Technical Bargaining Unit; and Management Bargaining Unit Chair Davis reconvened the Regular Session at 6:45 p.m., and turned the meeting over to District Counsel. District Counsel stated there was nothing to report from the Closed Session. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 6:46 p.m. The next Regular Meeting of the Board of Directors will be Wednesday, May 12, 2010 at 5:30 p.m. Federal D. Glover Board Secretary (Recording Secretary: Denise Jones) Board of Directors Meeting Page 6 April 14, 2010 Z:\Board\Minutes\2010\06_Minutes-April 14, 2010.doc Z:\Board\Minutes\2010\06_Minutes-April 14, 2010.doc