WEST BAY SANITARY DISTRICT MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD WEDNESDAY, JANUARY 26, 2011 AT 7:00 P.M.

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1 Serving Our Community for over 100 Years WEST BAY SANITARY DISTRICT MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD WEDNESDAY, JANUARY 26, 2011 AT 7:00 P.M. 1. Call to Order President Shepherd called the meeting to order at 7:01 PM 2. Roll Call BOARD MEMBERS PRESENT: Shepherd, Dehn, Harrison, Moritz BOARD MEMBERS ABSENT: Walker STAFF MEMBERS PRESENT: Scott, Condotti, Scheidt, Ramirez Others Present: Peter Zurcher Note: Fran Dehn was appointed as Secretary Pro-Tem. 3. Communications from the Public: Mr. Zurcher from Menlo Oaks attended and asked the Board to consider repealing the proposed solid waste rate increase. He stated that he and his neighbors do not want the recycle and compost bins to be picked up on a weekly basis and that he and many of his neighbors do not put all of their bins out for pick up weekly. He opposed the proposed rate hike. He didn t feel there was a need for the increase in service. President Shepherd explained that we are one member of the 12 agency member Joint Powers Authority known as the South Bayside Waste Management Authority (SBWMA). The Board further explained that as part of the agreement with Recology to provide the new Solid Waste/Recycling collection services, we are obligated to produce the required revenue to cover the costs of collection. Items such as new weekly pick up of the recyclables and organics, capital improvements to the Shoreway facility, increased charges at Ox Mountain, and the Household Hazardous Waste programs have increased costs for the District and the District must in turn raise rates to cover the revenue requirements. Mr. Zurcher asked if there was any alternative. The Board explained that an alternative would be to look for a way to outsource garbage collection for the 2000 people outside of the SBWMA agreement. This would mean that we would not have access to recycling for organics or regular recycling material. And we wouldn t have a contract with a dump facility. We would have to find a garbage collector and then a facility to bring the garbage to and that would probably be much more expensive than participating in SBWMA. Zurcher wanted to let the Board know that there are a lot of people upset about this. Though he still felt a little frustrated over the increase, Mr. Zurcher thanked the Board for their time and listening to his points. The Board also thanked Mr. Zurcher for coming to explain his point of view and communicate with the Board. 6A-1

2 4. Consent Calendar A. Approval of Minutes for the Special Meeting of January 5, 2011 B. Approval of the Withdrawal Order Authorizing Payment of Certain Bills and Salaries and Consideration of Other Financial Matters for January 26, 2011 C. Operations & Maintenance Report D. 2 nd Quarter Internal Financial Statements for the Period Ending December 31, 2010 Motion to approve including minutes as amended by: Dehn 2 nd by: Moritz Vote: AYE: 4 NAY: 0 Abstain: 0 Comments: DM clarified regarding the payment of SBWMA for the Household Hazardous Waste program; that this payment would continue to be made directly to SBWMA until the new rates took effect at which time the cost of the program is included in the rates. Dehn pointed out a typo of with that should be within in the minutes. DM said that has been corrected and could be taken care of if the motion was to accept the minutes as amended. The Board concurred. Moritz pointed out that interest income shows that the market value of our investments have declined in December and recovered somewhat so far in January. But that we will still receive the expected income as long as we hold the investments to maturity. Bank of the West is required to recognize in their reports any change in market value. Whereas LAIF just reports an average of what s going on between the value of the bond and the interest flow that s taking place. Dehn asked if it has rebounded to its previous value. Moritz stated it has rebounded to close to its previous value. There is still a negative of about $20,000. The interest flow we expected is taking place and we have about $40,000 in interest at this point. This topic was discussed in more length in the investment portfolio item later. Dehn inquired of the rise in permit fee revenue. DM stated that we are seeing a significant increase in permit requests. 6. Consideration of Adopting Resolution Honoring the Service of Dave Salac to the District Motion by: Moritz 2 nd by: Harrison Vote: AYE: 4 NAY: 0 Abstain: 0 Comments: Dehn asked if a prospective retiree had to actually report to work on the last day. DM answered that he wasn t positive but had asked Mr. Salac to inquire of his PERS contacts and make sure. 5. Presentation of District s New Preventative Maintenance Strategy and Root Foaming Results Comments: Sergio Ramirez, Maintenance Superintendent provided a PowerPoint presentation on the new preventative maintenance strategy and an update on the effectiveness of the Root Control program. Moritz commended staff for taking the strategic approach to cleaning sewer lines and for increasing the efficiency of the operation by concentrating the area a crew operates in on a daily basis. Questions and answers were exchanged. 6A-2

3 7. Consideration of Adopting Resolution to Ratify the Award of an Agreement for Emergency Repair of Sanitary Sewer Main Line on Haven Avenue, Menlo Park to Nor-Cal Pipeline Services Inc. and the Appropriation of $275,000 From the Capital Assets Fund Motion by: Harrison 2 nd by: Moritz Vote: AYE: 4 NAY: 0 Abstain: 0 Comments: DM provided brief staff report with no comments. 8. Discussion of Stage 2 Capacity Buy Out at SBSA Treatment Plant Comments: There was discussion of several options to buy WBSD s capacity at the treatment plant. 1. Budget for 2011/12 to purchase the remaining capacity from SBSA at a rate of some undetermined gallons per month at $7.91/gallon. 2. Continue with capacity buyout policy as is; which is to pay for the capacity of each new connection as each new connection occurs. 3. Discuss with SBSA Manager the possibility of bartering the value of the remaining WBSD capacity in exchange for flow retention capabilities. After some discussion the Board s consensus was to discontinue discussion and continue with the capacity buyout policy as is; which is to pay for the capacity of each new connection as each new connection occurs and to include buyout in the future discussions of what to do with the Flow Equalization Facility. 9. Discussion of District s Investment Portfolio Comments: President Shepherd provided a visual aid to explain the difference in the accounting model of the interest income of the District s investment and the economic model and how the up and down of market value shows the interest income varying. But in summary as long as we hold the investments in our portfolio to maturity we will receive the interest income as projected. Moritz noted as described earlier in the meeting, the market value of investments declined in December but recovered almost completely in January so far. 10. Consideration of Adopting Resolution Revised Professional Consultants Selection Policy Motion by: Dehn 2 nd by: Moritz Vote: AYE: 4 NAY: 0 Abstain: 0 Comments: DM explained that the revisions revolved around including any contingency in the criteria that determines when an RFP would be required. These revisions were suggested with the collaboration of Director Dehn. 11. Discuss South Bayside System Authority Report on Special Meeting of January 18, 2011 Comments: Shepherd provided a report on action items from the SBSA agenda: Item 9-A; Concrete work at Menlo Park Pump Station will be done on a time and material basis not to exceed the previous bid of $87,000. Item 9 B&C; found more damage to the digester which required a change order to cover the extra work. 6A-3

4 Item 9 D; change order to automate the chillers which could result in saving $72k/yr. Item 9 E; SBSA presented an update on their CIP program and will provide a presentation for WBSD. 12. CLOSED SESSION SBSA A. LABOR NEGOTIATIONS (Govt. Code Section (a)) AGENCY NEGOTIATORS: Daniel T. Child, SBSA Manager Linda Bruemmer, SBSA Support Services Manager Andy Baker, SBSA Operations & Maintenance Manager Darrell Murray, IEDA EMPLOYEE ORGANIZATION: IUOE LOCAL 39 B. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Gov t Code (a)) Name of Case: East Bay Municipal Utility District, et al. v. State Water Resources Control Board, et al., Alameda Cnty, Super. Crt. No. RG Entered closed session at 9:25 p.m. Left closed session at 9:35 p.m. Reportable action: No reportable action 13. CLOSED SESSION WBSD A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Subdivision (a) of Section ) San Francisco Baykeeper v. WBSD -- USDC Case No. C EMC B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION/LABOR NEGOTIATIONS (Pursuant to Cal. Govt. Code Sections 54957, ) Unrepresented Employee: District Manager Agency Designated Negotiators: Board President/Legal Counsel Entered closed session at 9:35 p.m. Left closed session at 10:37 p.m. Reportable action: No reportable action 14. Manager s Report 1) CIP Project 70% complete: Pipe replacement on Oak, Bay Laurel, Brandon, Ambar Way, Randall Place, Olive, University, Cambridge, Hermosa and Harvard is complete ft left on Bay Laurel, Garland and the CIPP remains. Highlighted map on the Board room wall shows project status. 2) Menlo Park Paving: Pavement patching continues on Creek drive, Princeton Rd, and Bay Laurel. Scheduled for this week are San Antonio, Felton, and Sussex. Utility adjustments continue on Mid-Menlo streets. Project approx 50% complete maybe a little more. 3) Form 700: Statement of Economic Interest form. We can send electronically for those who prefer, but forms are at the side of your packet tonight. Due to Peggy by March 9 to have time to send in. 4) Dave Salac Retirement: We are having a retirement breakfast for Dave Salac at 8:30 am on Feb 28. Staff has ordered a plaque to list all retirees from 2011 forward. 6A-4

5 5) Atherton Agreement: Atherton has executed the agreement and we are in receipt. We have cut a check for the Glenwood repair invoice, as budgeted, and have begun to operate under the conditions of the new agreement. 6) Spare Pump Purchase: Per the Purchasing Policy (Sole Source), the DM is providing notice to the Board of a pending purchase of a 35 hp pump as a spare pump. The purchase was budgeted in the Capital Assets fund for $26,000 and total purchase price is $29,660. The District standard is Flygt pumps to ensure compatibility with other pump stations. This results in a sole source provider, Shape Inc, which is the only authorized dealer in the Western states for Flygt pumps and negates the purpose of issuing a bid for the product. Though there is a cost overrun for this purchase the District has realized savings in other areas such as the Vac Trailer to make up for the overrun. 7) Benefits Statement: Staff will be receiving a benefit statement with their checks next Monday that shows Employer costs such as retirement and health benefits etc. DM provided his statement as an example. 8) Report on Action Items from Previous Board Meeting: a) Website: Communication Committee will review a proposal for a Smartphone application of the website. b) Compensation & Classification Study: We re-interviewed the top 2 candidates and have chosen a top firm with which the DM will craft an agreement and bring to the Board for approval. c) Cargill Comments: Our comments are due regarding Cargill project. Working with Tony to draft our comments. 9) Future Agenda Items: Public Hearing for Solid Waste Rates. 15. Comments or Reports from Members of the District Board Comments: Moritz asked for update on Master Plan efforts in the near future. Dehn asked for a copy of the Notice of Intent to Increase Solid Waste Rates. 16. Consider Items to be Placed on Future Agenda 1. SBSA Presentation to the Board regarding SBSA CIP program status. 2. West Bay Capital Asset Program update 3. Update on the Master Plan project. 4. Public Hearing on Solid Waste rate increase 5. Sunset Publishing possible reimbursement 17. Adjournment Time: The meeting was adjourned at 10:55 p.m. Fran Dehn, Secretary of the District Board (Pro Tem) 6A-5

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