Minutes of the Regular Meeting of the Board of Directors of DELTA DIABLO SANITATION DISTRICT December 9, 2009 The meeting was called to order by Chair Glover on Wednesday, December 9, 2009 at 5:30 p.m. in the Board Room at the District offices located at 2500 Pittsburg-Antioch Highway, Antioch. Present were Directors Federal Glover, James Davis and Nancy Parent. Also present were Mary Ann Mason, District Counsel; Gary Darling, General Manager; Kerry Yoshitomi, Deputy General Manager; Dennis Laniohan, Operational Services Director; Caroline Quinn, Engineering Services Director/District Engineer; Steve Dominguez, Plant Manager; Darrell Cain, Laboratory Manager; Denise Jones, Office Manager/Secretary to the Board; Angela Lowrey, Public Information Manager; Dean Eckerson, Principal Engineer; Jayne Strommer, Project Manager; Patricia Chapman, Associate Engineer; Thanh Vo, Assistant Engineer; Joe Ciochon, Operator-in-Training; Walter Pease, Assistant Public Works Director, City of Pittsburg; Mitch Barker, Public Agency Retirement System (PARS); and Tim Krish, Maze and Associates PUBLIC COMMENTS None RECOGNITION Adopt Resolution Commending and Congratulating Maximo Castro, Senior Operator, on His Retirement from the District Mr. Dominguez stated that although Mr. Castro was unable to attend the meeting, he wished to express the District’s appreciation for Mr. Castro’s years of service. Mr. Castro was one of the original employees who began at the District in 1981. He maintained the District’s facility operations in a professional and responsive manner for all of his years with the District, and is highly respected by his peers. Mr. Dominguez thanked Mr. Castro for his years of loyal service. Director Parent remembered Mr. Castro as a prominent fixture at the District, adding that he was often on the agenda for safety suggestions. Director Parent moved approval, seconded by Vice Chair Davis, and by unanimous voice vote, the Board approved the Resolution of Commendation and Congratulations for Maximo Castro. Chair Glover asked that Mr. Dominguez pass on to Mr. Castro the Board’s appreciation for his years of loyal service to the District. Introduction of Joseph Ciochon, Operator-in-Training Mr. Dominguez reported that the District recently hired Mr. Joseph Ciochon as an Operator-in-Training. Mr. Ciochon previously worked at Henkel Aerospace Technologies in Bay Point. He is a dedicated and fast learner who completed 18 months of volunteer training at the District prior to being hired. It is believed that Mr. Ciochon will be a valuable asset to the District. Mr. Ciochon thanked the staff who helped train him during his 18 months of volunteer hours at the District. He feels very fortunate and blessed to be part of the DDSD family. On behalf of the Board of Directors, Chair Glover welcomed Mr. Ciochon to the District. Receive Recycled Water Project Recognition Award and Certificate from City of Mountain View Ms. Strommer reported that she recently attended the recycled water distribution system completion ceremony for a City of Palo Alto and City of Mountain View joint project where they also recognized the District for its leadership role in the Bay Area Recycled Water Coalition (BARWC). Ms. Strommer provided some background on the Coalition and its 14 member agencies, and outlined some of the Coalition’s achievements to date. Chair Glover received the award and congratulated District staff for doing a fantastic job of leading the recycled water efforts. The Board received and filed the recycled water award and certificate from the City of Mountain View. CONSENT CALENDAR Vice Chair Davis 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 November 4, 2009; Approve District Monthly Check Register for October 2009; Receive and Approve Report on FY2008/09 Capital Project Funds to be Carried Over to FY 2009/10 and Projects Closed in FY2008/09; Receive Notes from Finance Committee Meeting, November 30, 2009; Authorize General Manager to Execute Amendment No. 2 to Consulting Services Agreement in the Amount of $30,000, ENS Resources, Inc., Federal Legislative Advocacy Services, Bay Area Biosolids to Energy, Project No. 10089; Authorize General Manager to Execute Amendment No. 6 to Consulting Services Agreement in the Amount of $120,000, Federal Advocates, Inc., 2010 Legislative Advocacy Services, Bay Area Recycled Water Coalition, Project No. 6100; Authorize General Manager to Execute Letter Agreement in the Amount of $10,000 for Participation in the Water Environment Research Foundation Recycled Water Study on Attenuation of Pharmaceuticals and Personal Care Products/ Endocrine Disrupting Compounds through Golf Courses using Recycled Water; Adopt Resolution Adopting the Public Agency Retirement System (PARS) Post-Retirement Health Care Plan and Delegating Authority to the Plan Administrator to Execute all Related Legal Documents and Authorize Transfer of all Funds from the District’s OPEB Reserve Fund and the Fiscal Year 2009/10 Retiree Medical Benefits Budget to the Trust Fund; Approve Modifications to Administrative Handbook Policy No. 3020, Investment of District Funds; Authorize General Manager to Accept Bid Price for Utility Casing Work with Contra Costa Transportation Authority in an Amount Not to Exceed $1,300,000, State Route 4 Widening Project, Loveridge Road to Somersville Road, Project No. 10087; and Authorize Issuance of Purchase Order in an Amount Not to Exceed $439,000 for One Year Beginning December 10, 2009, Polydyne, Inc., Supply and Delivery of Dry and Liquid Polymer. DELIBERATION None PRESENTATIONS AND REPORTS Receive Fiscal Year 2008/2009 Final Financial Audit Reports and Report on District Audit and Management Letter Ms. Ustin reported that the District received the highest opinion possible in the recent financial audit conducted by Maze and Associates. She stated that Mr. Tim Krish was present to answer any questions from the Board. There were no material weaknesses in internal controls and no recommendations for improvements. Ms. Ustin provided information on net assets, total revenues, total expenses and outstanding debt. She added that this was the initial year of reporting the District’s annual OPEB liability per GASB 45. No new debt was issued, but a long-term debt issue is anticipated in the new fiscal year. The Board received and filed the report. Receive Presentation of Update on Bay Area Biosolids to Energy Coalition Activities Ms. Quinn provided an update on the Bay Area Biosolids to Energy (B2E) Coalition. She outlined some of the challenges, including increased production of biosolids, limited capacity and increases in regulatory restrictions. Ms. Quinn explained how the Coalition of 16 agencies works and how it is funded. She outlined project goals and noted state and federal initiatives that have provided opportunities for the coalition to move the project forward. Ms. Quinn provided status on project activities, coalition accomplishments to date, and the next steps, which include public outreach, facility siting, and issuing aq request for qualifications (RFQ). The RFQ is for consultant teams to form to assist with the next phases of project development. Chair Glover asked if any of the potential sites are in the District’s service area, and Ms. Quinn answered affirmatively that a District site is being considered, as well as a site in Pittsburg at the waste transfer station. Mr. Darling added that other potential sites include Chevron, Protrero Hills Landfill, and a location in the city of Hayward. Ms. Quinn stated that the RFQ has been posted on a new website created by Angela Lowrey and the team she formed. Key issues to be addressed are public opinion, air quality, permitting, and state and federal partnership. Director Parent asked what the timeline is for the California Environmental Quality Act (CEQA) to begin, and Ms. Quinn answered late 2010. The coalition would like to have the siting narrowed to three potential sites before going public. Director Parent noted that it is important to have buy-in from environmental groups. Receive Report on District Service Area, Sphere of Influence, and Annexations Ms. Chapman provided a Power Point presentation on the District’s current Sphere of Influence (SOI). In July 2009, the Local Agency Formation Commission (LAFCO) added two areas to the District’s SOI. The Northeast reorganization area in Antioch is now in the annexation approval process and a hearing is anticipated in April 2010. The second area to be annexed to the District is located in Pittsburg and the City is in the process of preparing the application for annexation to be submitted to LAFCO. Most of the parcels are already being served by the District. Mr. Darling stated that these annexations address the Board’s direction to have the District’s SOI match those of the cities. The Board received and filed the report. Receive Report on National Pollutant Discharge Elimination System Annual Compliance Evaluation Inspection Report Mr. Laniohan reported that, in accordance with National Pollutant Discharge Elimination System (NPDES) Permit requirements, the District’s procedures and facilities are inspected annually by a subcontractor of the Environmental Protection Agency. The District’s inspection was conducted on September 16, 2009, and staff was praised for their exceptional organization and general preparedness for the inspection. The Inspector noted only one minor pH testing issue on the check sheet, which was easily addressed by staff. At the exit interview, the inspector stated he was very impressed and would use the District’s high standards as an example for other agencies to achieve. Chair Glover congratulated staff on a job well done, and the Board received and filed the report. GENERAL MANAGER'S COMMENTS Mr. Darling reported that the District’s Antioch Recycled Water Project received negative publicity in a Stimulus Funding Checkup Report prepared by Senators Tom Coburn and John McCain. The project was one of 100 named in the report. The District’s federal advocacy consultant will be advising staff as to whether or not a response is warranted. Mr. Darling reported that Denise Jones is currently handling conference registration and travel arrangements for the California Association of Sanitation Agencies (CASA) Mid-Year Conference. Mr. Darling reported that Contra Costa County’s annual Contra Costa USA will be held on January 27, 2010. The District is a sponsor at the $3,000 level, the same as last year, which includes nine tickets for various portions of the event. In addition, staff has been asked to present this year. Mr. Darling asked that the Board to RSVP to Denise Jones if they would like to attend. Mr. Darling reported that staff is currently participating in two holiday charities. Toys are being collected for the Ambrose Community Toy Drive, and Fairfield-Suisun Sewer District (FSSD) has accepted the District’s challenge to a competition to see which agency can collect the most money for the Solano Food Bank by December 31, 2009. The winner gets “bragging rights” for one year. DDSD is currently in the lead. DIRECTORS’ COMMENTS Director Parent asked if Dr. Vincent Malfitano had signed the agreement for an alternative pay schedule for Cypress Meadows facility’s outstanding Capital Facilities Capacity Charges. Ms. Ustin responded that a signed U. S. Post Office Return Receipt has been returned to the District indicating that Dr. Malfitano has received the District’s certified letter outlining his options and notifying him of the December 18, 2009 deadline. No response has been received to date. Director Parent stated that the City of Pittsburg completed their annual council member rotation and the new Mayor has indicated he favors continuity and will most likely appoint her to the DDSD Board of Directors for the 2010 term. Vice Chair Davis wished District staff a great New Year. District Counsel reported that Silvano Marchesi, former counsel to the District, will be retiring on December 18, 2009 and there will be a party on January 23, 2010. She conveyed Mr. Marchesi’s wish for everyone at the District to have a Happy Holiday and New Year. Chair Glover asked that staff prepare a Resolution of Appreciation for Mr. Marchesi. He wished everyone a Merry Christmas, and a Happy Holiday and New Year. CORRESPONDENCE Receive Monthly Report dated November 29, 2009, Federal Advocates, Inc., Bay Area Recycled Water Coalition, Project No. 90024 The Board received and filed the report. Receive Monthly Federal Lobbying Report dated November 2009, 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 November 2009, Edelstein, Gilbert, Robson and Smith, Bay Area Regional Biosolids to Energy Coalition, Project No. 10089 The Board received and filed the report. Receive Letter dated November 5, 2009, California Sanitation Risk Management Authority, Pooled Workers’ Compensation Program Eleventh Dividend Declaration The Board received and filed the report. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 6:20 p.m. The next Regular Meeting of the Board of Directors will be Wednesday, January 13, 2010 at 5:30 p.m. Federal D. Glover Board Secretary (Recording Secretary: Denise Jones) Board of Directors Meeting Page 5 December 9, 2009 Z:\Board\Minutes\2009\Minutes-December 9, 2009.doc Z:\Board\Minutes\2009\Minutes-December 9, 2009.doc