MINUTES OF THE REGULAR MEETING OF THE SANITARY BOARD OF

ORO LOMA SANITARY DISTRICT

November 21, 2017

The regular meeting of the Sanitary Board of Oro Lorna Sanitary· District was called to order by President Shelia Young at 3:00 p.m. on Tuesday, November 21, 2017, at the District offices at 2655 Grant Avenue, San Lorenzo. President Young noted that Directors Timothy Becker, Roland Dias, Rita Duncan and Dan Walters were present. In attendance were -Bill Halsted, Acting General Manager; Arlene Wong, Finance Manager; Andreea Simion, Administrative Services Mana·ger; Jimmy Dang, Senior Project Engineer; Sally Green, District Secretary; and Jeh Faught, District Legal Counsel. Also at the meeting was Dino ·Fontana, Operations Manager at Waste Management. Members of. the general public included Chris Higgins, Chairman of the Fairvie~ Municipal Advisory Council, and Arroyo High School students Matthew Yoshioka, Jonathan Cometa, Alfredo Fuentes, and William Barajas.

Director Becker introduced Mr. Higgins, and said that he invited him to the meeting so he could see how efficiently Oro Lorna's meeting are run. Administrative Services Manager Simion introduced Mr. Fontana, who said that· he has been working at Waste Management for 34 years. · President Young welcomed Mr. Fontana, Mr. Higgins, and the students to the meeting.

Director Dias moved approval of the following Consent Calendar items, based on staff recommendation$: 4) Approval of Board Minutes of November 7, 2017; 5) Approval of Financial Statements, October 2017; and 6) Approval of Monthly Compliance and Activity Reports, October 2017. The motion was seconded by Director Becker and carried unanimously, 5-0.

Director Duncan reported on the November 13, 2017 meeting of the Alameda -County Special Districts Association, hosted by Sto·pwaste. Guest speakers included Mr. Rama Pochiraju, AC Transit Executive Director of Planning & Engineering, and Ms. Estee Sepulveda, AC Transit External Affairs Representative, who talked about a pilot program (similar -to Lift and Uber) that is being tried in· Castro Valley and the Tri-Cities Area. StopWaste Executive Director Wendy Sommer presented an overview of the agency's food waste reduction program. Alameda County Local Agency Formation Commission Executive Officer Mona Palacios provided an update on LAFCO's Strategic Plan and rebranding efforts. ACSDA President Roland Williams reported that individual Special Districts Association chapters are not required to have their own insurance. The riext membership meeting is scheduled for January 10, 2018.

Director Young repo·rted on the November 13, 2017 meeting of the Solid Waste Committee, beginning with the per capita disposal rate for 2016. The 2016 calculated disposal rate for Alameda County Unincorporated was 1. 7 pounds per person per day, which equates to 82.5% diversion. The solid waste tonnage trends for January-September 2017 reflect that residential trash decreased, residential organics increased, and both trash and organics tonnages have been trending upward for commercial customers. For Public Outreach ·update, President Young complimented the efforts of Recycling Coordinator Beverly Perez, who reached out to 23 multi-family properties and distributed ·418 tenant kits. For Solid Waste Program Update, WM staff reported that the trucks are being prepared · for winter weather, residential recycling calendars will' be mailed in December, and the number of overage charges has increased .. An additional topic, Request Recommendation for Board to Authorize the General Manager to Execute Amendment No. 1 to the Oro Lorna-Waste Management Agreement for Services,· comes before the Board later on this ~genda.

Director Becker reported on the November 13, 2017 meeting of the CASA Board of Directors. The 2018 Business Plan was approved. Priority Actions of the Plan include to initiate a flushable wipes campaign, and to influence· regulatory development for implementation of SB 1383, relating to organics diversion. The final topics were an .update on jobs in. water/wastewater fields in California, and an announcement that Dr .. David Sedlak will be speaking at the January CASA conference in Palm Springs.

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Director Dias reported on the November 14, 2017 meeting of the Finance & Insurance Committee. Standing topics included Monthly Financial Reports for October 2017 (the District's cash and investment position was $17.1 million, which was $1.3 million more than in October 2016); Economic Activity & Market Rates Update (the District's overall investment yield in October 2017 was 1.407%, compared to LAIF's rate of 1.143%); and the Attorney's Invoice for $4,930.06. The Committee reviewed the State Controller's Reports on Special Districts Financial Transactions for FY 2016-17, and the California Employers' Retiree Benefit Trust (CERBT) Quarterly Statement, dated September 30, 2017, in the amount of $8,227,191.82. Final topics included the Five-Year Cash Flow Projection (two financing levels for the anticipated Nutrient Optimization project were discussed) and that the District received, for the second ·time, the Government Finance Officers Associatio·n (GFOA) Distinguished Budget Presentation Award for the Two-Year Budget FY 2017-19. President Young congratulated Finance Manager Arlene Wong and Accountant Pearl Gonzalez, who received Certificates of Recognition for their work in achieving the award.

Director Duncan reported on the November 14, 2017 meeting of the Personnel/Safety/Public Information Committee, beginning with a discussion of the Employee's Recognition Event for 2018. To address the issue of decreasing employee participation at District-sponsored recognition events, the Committee supported the idea of an on-site recognition lunch in 2018, during working hours. An update was provided for the Collection System Worker recruitment- 10 candidates were invited to take a written test and participate in panel interviews. Director Duncan asked if the District's practice is to seek approval of the written test by legal counsel, and staff said that that is not the District's recruitment practice. Director Duncan then asked if the District is under legal obligation to administer written tests for all positions. Legal Counsel Faught said that the District may use its discretion in administering tests for open positions. An update was then provided on public employer requirements per Assembly Bill 119. Public employers are to provide the exclusive labor representative access to newly hired employees during onboarding orientations, and the name, job title, department, work location, work, home, personal cell phone numbers, and personal email addresses on file for all bargaining unit members every 120 days. The final topics discussed included review of the Inspection of Public Records and Duplication Charge Policy (no changes were recommended) and review of the Utilization Report for the MHN Employee Assistance Program (five calls were received from Oro Lorna employees in 2016, and one so far in 2017).

Director Becker reported on the November 15, 2017 meeting of the Construction Committee. One change was reported to the Ten-Year R&R and CIP Projected Costs, a CIP line item for $150,000 added to FY 2019-20. The first projects discussed were the Administration Building Roofing and Solar Project (staff will request authorization to close the project once coordination with PG&E is complete); and Outfall NPDES Permitting (Senior Project Engineer Dang presented results of a consultant's study on conceptual design alternatives for flow splitting between Oro Lorna and EBDA). Projects discussed that come before the Board later on this agenda included the Nutrient Optimization Project (request to issue the remaining tasks of the design services contract) and Trojan Motor Control Replacement (request to close). Sewer Line Replacement Projects included 45-143.08 for FY 2017/18 (the contractor has completed work on Via Los Trances and is working on Saturn Drive); SLR 2016/17 (the contractor is working on Edgemoor Street, per Change Order No. 3); and SLR Lomita Drive (request to close will be sought upon completion of the punch list items). The final topics were Collection System Asset Repair and Maintenance Projects: Point Repairs 2016-17 (the project is·97% completed) and Point Repairs 2017-18 (bids were received and request to award the project appears later on this agenda).

Director Becker reported on the November 16, 2016 meeti11g of the East Bay Dischargers Authority, beginning with the status report on the NPDES Permit. Oro Lema remains in compliance for TSS and CBOD, as well as for levels of enterococcus and fecal coliform. Director Becker provided an overview of the Draft BACWA Nutrients Study Findings, and concluded that in the long run, ·moving forward with the proposed Nutrient Optimization Project would conceivably save Oro Lorna many millions of dollars. The final topic was the Transport Pipe Condition Assessment Project, which has preliminary findings that the transport pipe, over40 years old, is in good condition.

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· Director Walters reported on the November 16, 2017 meeting of the Operations Committee. The first standing topic was October 20.17 data for Natural Gas Usage (purchase of natural gas decreased from the previous month, and gas production was 332,452 cu. ft./day). Director Walters said that the Overview of Power Production and Plant Demand reflects good management by the Operations department. Other topics discussed were the Peraceti.c Acid Study (the data· does not support continuing the study or changing from the traditional chlorination/dechlorination process) and Historical Solar Production (the· solar array initially exceeded its annual design output, but due to mechanical issues, recent performance has been poor). For District Operations Overview, Collection System Manager Lenny Rather reported on the Collections Department activities, including linear feet of sewer lines· cleaned/CCTV inspected; that Christopher Brown, Larry Olivan, and he attended CWEA leadership training. for collection workers; and that there was a 25-gallon overflow on Mission Boulevard caused by a build-up of paper and wipes that were pushed into a manhole channel after a private lateral was cleared. The spill was contained and did not reach any waterways. Operations Manager Manuel Talledo-Garcia reported that the Synagro Technologies harvest went well. Also, the Operations staff participated in the East Bay Manufacturing Day and Hearst Elementary School tours and worked with ·the Collections department to isolate, drain, and clean the elutriations ·tank #2. Maintenance Manager Scott von der Lieth provided a presentation on the recent removal of the Digester #1 mixer. New parts were ordered, and when received, the mixer _will be re-assembled in-ho·use and placed back in service. Director Becker noted that the co~gen engines' uptime was in excess of 99% for October. Both Director Becker and Director Walters said that the co-gem performance is a testament to the Maintenance Department's good work.

Director Becker moved approval of the Committee minutes for entry to the District record by reference. The motion was seconded by Director Dias and carried unanimously, 5-0.

At 4:2-3 p.m., President Young called for a short recess; the meeting resumed at 4:30p.m.

. Director Becker MOVED TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE FRANCHISE AGREEMENT FOR REFUSE, RECYCLING, AND GREEN WASTE SERVICES BETWEEN ORO LOMA SANITARY DISTRICT AND WASTE MANAGEMENT OF ALAMEDA COUNTY. The motion was seconded by Director Duncan and carried ·unanimously, 5-0. The amendment provides for the franchising of commercial green waste/organics services at rates 90% those of trash, giving Waste Management exclusive jurisdiction for collection, while providing an incentive to customers to implement organics collection programs. The amendment also provides for implementation of a 2.0o/o monthly late charge fee for delinquent trash accounts.

Director Dias MOVED TO AUTHORIZE THE GENERAL MANAGER TO ISSUE THE REMAINING TASKS OF THE DESIGN SERVICES CONTRACT FOR $795,511 TO KENNEDY/JENKS CONSULTANTS, EXECUTE AN AMENDMENT IN AN AMOUNT NOTTO EXCEED $140,000 ·FOR THE DESIGN OF .THE DECHLORINATION AND OUTFALL FLOW SPLITTING FACILITIES, AND INCREASE THE BUDGET FROM $282,.000 TO $1,100,000. The motion was seconded by Director Becker and carried unanimously, 5-0. ·

Director Becker MOVED TO ACCEPT PROJECT AS COMPLETE AND AUTHORIZE THE GENERAL MANAGER TO DIRECT FILING OF NOTICE OF COMPLETION: TROJAN LIFT STATION MOTOR CONTROL. CENTER REPLACEMENT PROJECT 2017. The motion was seconded by Director Walters and .carried unanimously, 5-0. All construction work was completed on November 6, 2017, and was found in compliance with the· plans and specifications ..

Director Walters MOVED TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH .DEVANEY ENGINEERING, INC., IN THE AMOUNT OF $1,347,000 AND AUTHORIZE AN AMENDMENT FOR $400,000 FROM FY 2018-19 BUDGET: POINT REPAIRS 2017-18 NO. 1 PROJECT. The motion was seconded by Director Duncan and carried unanimously, 5-0. The project provides for the completion of 102 point repairs on sewer manholes and sewer pipes within the District's collection system.

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Director Dias MOVED TO APPROVE DIRECTOR MEETING COMPENSATION FOR ATTENDANCE AT THE RENTAL HOUSING ASSOCIATION DECEMBER LEADERSHIP LUNCHEON ON DECEMBER 4, 2017. The motion was seconded by Director Duncan and carried unanimously, 5-0.

President Young opened the floor for Staff/Director comments. Legal Counsel Jen Faught announced that she is leaving Meyers Nave after 11 years of employment. Ms. Faught said that although she is sad to leave a job that she loves, she looks forward to her new venture as Contract Compliance Specialist at Central Contra Costa County Solid Waste Authority. Her last day at Meyers Nave is December 5, and her last assignment .is Oro Lorna's Board meeting that day. She offered a recommendation to the Board that Lauren Quint, Senior Associate at Meyers Nave, be considered as her replacement.

President Young thanked Ms. Faught for her years working as Oro Lorna's legal counsel, and said that she appreciated her recommendation of Ms. Quint. It was decided to have another short Brown Act work session before the December 5 Board meeting; Ms. Faught will invite Ms. Quint to attend the meeting, participate in the training, and meet the Board.

Director Dias suggested that the General Manager also meet with Ms. Quint prior to the December 5 meeting, and President Young and Director Duncan agreed.

The Directors expressed their thanks to Ms. Faught for her years of service at Oro Lorna, said that it was a pleasure to work with · her, and wished her the best going forward. They also wished all present a Happy Thanksgiving, and thanked Mr. Higgins and the Arroyo High School students for attending the meeting. Director Walters added that the students should encourage their fellow classmates to attend future meetings.

There being no further business to come before the Board, President Young adjourned the meeting at 4:49 p.m.

(Recording Secretary: Sally Green)

Rita Duncan Secretary