Minutes of the Regular Meeting of the Board of Directors of DELTA DIABLO SANITATION DISTRICT February 10, 2010 The meeting was called to order by Chair Glover on Wednesday, February 10, 2010 at 5:42 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 Salvatore Evola (Alternate). Director Parent was absent. 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; Karen Ustin, Business Services Director; Steve Dominguez, Plant Manager; Darrell Cain, Laboratory Manager; Denise Jones, Office Manager/Secretary to the Board; Cheryl Rhodes Alexander, Human Resources Manager; Dean Eckerson, Principal Engineer; Jayne Strommer, Project Manager; Patricia Chapman, Associate Engineer; Thanh Vo, Assistant Engineer; and Walter Pease, Assistant Public Works Director, City of Pittsburg. Erwin Nanon, Senior Engineer; Jess Hague, Electrical-Instrumentation II; Amanda Roa, Environmental Compliance Engineer; and Thanh Vo, Assistant Engineer. PUBLIC COMMENTS None BOARD REORGANIZATION Approve Reorganization of the Board for 2010 and Appoint Board Committee Members and District Representatives Mr. Darling stated that, traditionally, the Board Members rotate positions at the first meeting of each new year. The docket shows the current positions and the traditional rotation. Director Davis is the new Chair; Director Parent is the new Vice Chair; and Director Glover is the new Secretary of the Delta Diablo Sanitation District Board of Directors for 2010. Director Davis moved approval, seconded by Director Evola (Alternate), and by unanimous voice vote, the Board approved the traditional rotation, establishing Director Davis as Chair of the Board of Directors for 2010. Chair Davis assumed control of the meeting. Chair Davis noted that Committee assignments will remain unchanged and are as follows: Vice Chair Glover, Personnel; Chair Davis, Finance; and Director Parent, Recycled Water/Biosolids to Energy. RECOGNITION Adopt Resolution of Appreciation for Silvano B. Marchesi, County Counsel (Yoshitomi) Continued to March Meeting. Recognize and Congratulate Erwin Nanon on Promotion to Senior Operator (Dominguez) Mr. Dominguez reported to the Board that Mr. Nanon came to the District in 2005 and has progressed quickly from earning his Grade I Operator certification in 2006 to his Grade III in 2008. He stated that, through an oral interview and practical examination process, Mr. Nanon has demonstrated that he possesses the necessary knowledge and leadership capabilities to be promoted to Senior Operator. Mr. Dominguez asked that the Board recognize and congratulate Mr. Nanon. Mr. Nanon stated that he feels very lucky to have so many great mentors at the District. Chair Davis stated that the Board appreciates his dedication and hard work. On behalf of the Board, Chair Davis congratulated Mr. Nanon on his accomplishments. The Board received and filed the report. Commend Electrical-Instrumentation II, Jess Hague, on Winning California Water Environment Association – San Francisco Bay Section 2009 Electrical/Instrumentation Person of the Year Award Mr. Dixon reported that on January 8, 2010, the California Water Environment Association (CWEA) held their annual awards dinner and Mr. Hague was selected as the winner of the San Francisco Bay Section’s 2009 Electrical/Instrumentation Person of the Year Award. Mr. Hague has been at the District for two years and has proven his expertise in the field. Mr. Dixon listed several of the projects Mr. Hague has worked, noting that since arriving at the District, Mr. Hague has contributed significantly to reducing the work order backlog. Mr. Hague will now compete for the title in the state competition. He asked that the Board commend Mr. Hague on his accomplishments. On behalf of the Board, Chair Davis stated his appreciation for Mr. Hague’s hard work, and that he looks forward to hearing the results of the state competition. The Board received and filed the report. Receive Presentation of Safety Plant of the Year Award from California Water Environment Association – San Francisco Bay Section Mr. Laren presented the 2008 Safety Plant of the Year Award received from the CWEA San Francisco Bay Section to the Board. He stated that the award was earned by District staff for maintaining a safe work environment, including excellence in preventive and corrective safety programs, compliance with state and federal regulations, and general housekeeping practices. Winning this award now qualifies the District to compete in the CWEA State competition. Mr. Laren presented the award to the Board members. Director Glover noted that the one thing lacking when he began serving on the Board was a safety program. He offered kudos to staff and Mr. Laren for winning the award. The Board received and filed the report. CONSENT CALENDAR Director Glover moved approval, seconded by Director Evola (alternate) and, by unanimous voice vote, the Board approved the following Consent Calendar items according to staff recommendations: Approve Minutes of December 9, 2009; Approve District Monthly Check Register, November and December 2009; Approve First Half of Fiscal Year 2009/10 Financial Status Report; Approve Fiscal Year 2009/10 Second Quarter District Investment Report; Approve 2010 Board Meeting Schedule; Receive Notes from Finance Committee Meeting, January 26, 2010; Authorize General Manager to Execute Consulting Services Contract in an Amount Not to Exceed $263,832, HDR Engineering, Wastewater Treatment Plant Master Plan Update, Project No. 10116; Adopt Resolution Authorizing Filing of a Financial Assistance Application to State Water Resources Control Board, Aeration System Improvements, Project No. 10037; and Authorize General Manager to File California Environmental Quality Act Notice of Exemption with State Clearinghouse in Accordance with CEQA Guidelines §15062, Aeration System Improvements, Project No. 10037; and Tower Pump Station Bypass Modifications, Project No. 10039. DELIBERATION Approve Proposed Other Post Employment Benefits Trust Fund Investment Strategy and Adopt Administrative Policy for Funding the Trust Ms. Ustin reported that, in accordance with staff’s recommendation and approval of the Board, staff has set up an Other Post Employment Benefits (OPEB) Trust Fund with Public Agency Retirement Services (PARS). She presented staff’s proposed investment strategy for funds deposited in the trust. Ms. Ustin explained the four major strategies with two options each. Staff’s recommendation to go with the Balanced/Moderately Aggressive strategy with the HighMark PLUS option is based on this being a long term investment and providing the greatest potential returns. The Finance Committee reviewed the item at its January 26, 2010 meeting and concurred with staff’s recommendation. Chair Davis noted what that impressed him the most is that the strategy can be modified at any time should market conditions change. Director Glover moved approval, seconded by Director Evola (alternate) and, by unanimous voice vote, the Board approved the proposed OPEB trust fund investment strategy. Ms. Ustin noted the second part of this item is recommended approval of an Administrative Policy for funding the Trust. The proposed policy allows the Board to annually determine how much of that year’s remaining annual required contribution (ARC) can be funded by the District and deposited to the OPEB Trust. Recommended sources include any unanticipated or additional revenues, unused operating contingency, wastewater operating budget savings, and ad valorem tax revenues. The proposed funding policy also provides the latitude for the Board to appropriate additional funds from wastewater reserves. Director Glover moved approval, seconded by Director Evola (alternate) and, by unanimous voice vote, the Board approved the proposed trust fund investment Policy. PRESENTATIONS AND REPORTS Receive Semiannual Report on Capital Facilities Capacity Charge Collections, Fiscal Year 2009/10 Ms. Ustin presented a Power Point presentation on the total Capital Facilities Capacity Charge collections for 2009/10. Collections totaled $945,763, or 25.7% of the budget estimate. A total of 203.6 ERUs were added during the first half of fiscal year 2009/10. Ms. Ustin showed the breakdown of ERUs by community. There were no industrial connections during this period, however, there are two potential industrial connections in the near future. Ms. Ustin discussed the potential impact of CFCCs on future sewer service rates. She noted that a sensitivity analysis evaluating changed growth assumptions will be conducted and presented to the Finance Committee and Board of Directors as part of the 2010 rate analysis for sewer service rates. The Board received and filed the report. Receive Status Report on Antioch Recycled Water, Project No. 10055 Mr. Eckerson provided a Power Point presentation outlining the project scope. To date, 30,000 linear feet of PVC have been installed. Mr. Eckerson discussed the local and regional benefits of this project, which includes the incorporation of significant landscape irrigation. Mr. Eckerson turned the presentation over to Thanh Vo who presented photos of the project at various sites and stages of construction. He began by identifying the beginning of the pipeline and following it to its destination at the Lone Tree golf course. He noted that the latest technology is being used in the project. Mr. Vo showed slides of the underground tank foundation and siding installation. Over 11,000 ft of pipe has been installed by the contractor, JMB Construction. The project is approximately 50% complete and four change orders have been executed totaling $44,588, or 5% of the contract amount. The water tank located at the golf course will serve only the golf course. Water for the parks will come directly from the Recycled Water Facility through side connections. Mr. Vo turned the presentation back over to Mr. Eckerson. Mr. Eckerson explained issues with the District’s permit to distribute recycled water to the Lone Tree Golf Course. The District is the first agency to be permitted under the state’s new permit standards. Based on the state’s preliminary analyses of the amount of nitrogen in the water, it is a conditional permit and the District is not permitted to deliver the full amount of recycled water at this time. The District, as prescribed in permit, is performing more detailed analyses and working with a consultant who has experience with these types of issues. District staff will attend a meeting with state staff tomorrow. Chair Davis thanked Mr. Eckerson and Mr. Vo for a good and informative report. GENERAL MANAGER'S COMMENTS Mr. Darling reported that March 6, 2010 is the District’s annual recognition dinner. It will be a great program and he would certainly appreciate the Board’s attendance. The dinner will be at the Pittsburg Elks Lodge and will be catered by La Veranda Restaurant. Mr. Darling reported that the California Association of Sanitation Agencies (CASA) Washington, DC conference will be March 8 through 10, 2010. The District’s lobbyists are working hard to get the meetings we want. More information will be provided to the Board as staff is able to get it. DIRECTORS’ COMMENTS None CORRESPONDENCE Receive Monthly Reports dated December 30, 2009 and January 28, 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 December 2009 and January 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 January 29, 2010, Edelstein, Gilbert, Robson and 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 6:26 p.m. for the purpose of: CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: Delta Diablo Sanitation District vs. Skyline Crest Enterprises, LLC Chair Davis reconvened the regular session at 6:35 p.m., and turned it over to District Counsel. District Counsel stated that no reportable action was taken in Closed Session. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 6:36 p.m. The next Regular Meeting of the Board of Directors will be Thursday, March 4, 2010 at 5:30 p.m. Federal D. Glover Board Secretary (Recording Secretary: Denise Jones) Board of Directors Meeting Page 5 February 10, 2009 Z:\Board\Minutes\2010\01_Minutes-February 10, 2010.doc Z:\Board\Minutes\2010\01_Minutes-February 10, 2010.doc