BOARD MEETING AGENDA

Tuesday, April 21, 2015 3:00 p.m. Oro Loma Sanitary District Boardroom 2655 Grant Avenue San Lorenzo, CA 94580

In compliance with the Americans with Disabilities Act of 1990, if you need special assistance to participate in a District meeting, or you need a copy of the agenda, or the agenda packet, in an appropriate alternative format, please contact the Board Clerk’s office at 510-276-4700. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the District staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.

1. Call To Order

2. Roll Call: Directors Becker, Dias, Kerr, Young

3. General Public (Members of the public wishing to comment on any item not on the agenda, but within the Board’s jurisdiction, should notify the Board at this time. Those wishing to comment on any item on the agenda should do so at the time the item is considered. Comments may be limited to three (3) minutes. Time limitations shall be at the discretion of the President.)

APPOINTMENT OF DIRECTOR

Motion 4. Nomination for Board Vacancy (The Board will review the list of candidates; candidates will present their qualifications and participate in interviews; the Board may nominate a candidate to fill the vacancy and may appoint the new director.)

Motion 5. Oath of Office (If a new director is appointed to the Board, District’s Legal Counsel will administer the Oath

of Office.)

Motion 6. Approval of Board Committee Assignments (President Becker will ask the Board to approve the Board committee assignments.)

CONSENT CALENDAR

Motion 7. Approval of Minutes of April 7, 2015 (The Board will be asked to approve the minutes.)

Motion 8. Approval of Financial Statements, March 2015 (The Board will be asked to approve the financial statements.)

Motion 9. Approval of Monthly Compliance & Activity Reports, March 2015 (The Board will be asked to approve the monthly reports from the Engineering, Collections,

Operations, and Maintenance Departments.)

COMMITTEE/ASSOCIATION/AUTHORITY MEETINGS Information 10. Report from the Solid Waste Committee (Director Kerr will report on the April 13, 2015 meeting.)

Information 11. Report from the CASA Executive Board (Director Becker will report on the April 13, 2015 teleconference.)

Information 12. Report from the Construction Committee (Director Becker will report on the April 15, 2015 meeting.)

Information 13. Report from the East Bay Dischargers Authority (Director Dias will report on the April 16, 2015 meeting.)

Information 14. Report from the Finance & Insurance Committee (Director Dias will report on the April 17, 2015 meeting.)

Motion 15. Approval of Board Committee Minutes for Entry to District Record (The Board will be asked to approve the Board Committee minutes for entry to the District record by reference.)

NEW BUSINESS Resolution 16. Resolution Approving Budget Amendment No. 4 of the Two-Year Budget,

for FY 2014-15 (Year 2) (The Board will be asked to adopt the resolution approving Budget Amendment No. 4 for FY

2014-15.)

Motion 17. Authorize the General Manager to Execute a Contract Amendment with ESA to Provide Additional Construction Support for the Wet Weather Equalization and Horizontal Levee Project in an Amount not to Exceed $99,576

(The Board will be asked to authorize the General Manager to execute a contract amendment.)

Motion 18. Approval of Plans and Specifications and Contract Documents and Calling for Sealed Bids: Digester Area Coatings Project 2015

(The Board will be asked to approve the plans and specifications and project documents and call for sealed bids.)

Motion 19. Accept Project as Complete and Authorize the General Manager to Direct Filing of Notice of Completion: Trojan Force Main Condition Assessment

(The Board will be asked to accept the project as complete and authorize the General Manager to direct the filing of the notice of completion with the County.)

Motion 20. Authorize the General Manager to Execute Change Orders 2 and 3 with California Trenchless Inc., in an Amount not to Exceed $43,004 for Unforeseen Conditions: Sewer Line Replacement Project 2014-2015

(The Board will be asked to authorize the General Manager to execute the change orders.)

21. Staff/Directors Comments (Board and/or staff members may comment on items of interest.)

AGENDA ITEM NO: 7 AGENDA DATE: 04/21/15

MINUTES OF THE REGULAR MEETING OF THE SANITARY BOARD OF

ORO LOMA SANITARY DISTRICT

April 7, 2015

The regular meeting of the Sanitary Board of Oro Loma Sanitary District was called to order by President Timothy Becker at 3:00 p.m. on Tuesday, April 7, 2015, at the District offices at 2655 Grant Avenue, San Lorenzo. President Becker noted that Directors Roland Dias, Howard Kerr, and Shelia Young were present. Also in attendance were Bill Halsted, District Engineer and Acting General Manager; Pearl Gonzales, Accountant and Acting Finance Manager; Andreea Simion, Administrative Services Manager; Scott von der Lieth, Supervisor of Plant Maintenance; Sally Green, District Secretary; and Jen Faught, District Legal Counsel. There was no general public present. Director Kerr moved approval of the single Consent Calendar item, based on staff recommendations: 4) Approval of Minutes of March 17, 2015. The motion was seconded by Director Dias and carried unanimously, 4-0, with an amendment from Director Young to remove the word “Landis” from page 2, paragraph 4 [correction of a clerical error]. President Becker moved to Agenda Item 12, a resolution of appreciation for Mechanic II Dale Hammerel, who is retiring from the District on May 26, 2015, after 24 years of dedicated service. Supervisor of Plant Maintenance Scott von der Lieth said that he had the privilege of working with Dale for 12 years, adding that Dale mentored him in the wastewater business when he first came to Oro Loma. von der Lieth added that Dale is a great guy, easy going and smart, and will carry his mechanical skills into retirement. Director Young MOVED APPROVAL OF RESOLUTION OF APPRECIATION–DALE HAMMEREL. The motion was seconded by Director Dias and, following a roll call vote, Resolution 3609 carried unanimously. The Board asked von der Lieth to convey their best wishes to Dale on his retirement, and their appreciation for his years of service to the District. Director Young reported on the March 18, 2015 meeting of the Operations Committee, beginning with a BACWA Key Regulatory Issue Summary. Standing topics included February 2015 data for Natural Gas Usage, Overview of Power Production and Plant Demand, and the Monthly Power and Chemical Costs, $32,705. For District Operations Overview, 1) Supervisor of Field Maintenance Lenny Rather reported on the CWEA Collection Systems Award Committee Tour 2015; 2) Supervisor of Plant Operations Manuel Talledo-Garcia reported on the digester heat loop and that pond harvesting work continues; and 3) Supervisor of Plant Maintenance von der Lieth reported that Mechanics II Jeff Hansen and Rob Fletcher had positive feedback from their Gas Engine Technology training at Waukesha Pierce Industries. Director Dias reported on the March 19, 2015 meeting of the East Bay Dischargers Authority. Highlights included a letter to Bruce Wolfe, California Regional Water Quality Control Board Executive Director, about an issue at the San Leandro Water Pollution Control Plant (the issue

Oro Loma Sanitary District Minutes, Meeting of April 7, 2015 Page 2 of 3

has been corrected); and a summary of Chronic Toxicity Testing and reporting to the Environmental Protection Agency. Director Dias reported on the March 20, 2015 meeting of the Personnel/Safety/Public Information Committee. He asked Administrative Services Manager Andreea Simion to update the Board on the current recruitments. Simion said that a new recruitment for a Plant Operator II is underway, in anticipation of an announced June 2015 retirement; and a candidate for the Mechanic II position is scheduled for a physical exam, with a job offer pending exam results. Simion also said that another Senior Mechanic has announced his intention to retire, so a new Mechanic II recruitment will be initiated shortly. Director Dias said that the Annual Employees Recognition Event has been scheduled for October 10, 2015, with details to follow. Two additional topics, Process to Fill Board Vacancy, and Recommendation for Board Approval of Amended “Management Incentive Compensation Plan,” come before the full Board as Items 11 and 14, respectively, on this agenda. Director Young reported on the March 25, 2015 meeting of the Alameda County Waste Management Authority. Items of interest included a second reading of the Countywide Integrated Waste Management Plan (CoIWMP) and a proposed amendment to the Alameda County Integrated Waste Management Plan to site the new City of Hayward Transfer Station. Director Young also mentioned that the Authority gave the San Lorenzo Village Homes Association a $7,000 grant for a book titled “Gardens for San Lorenzo,” which illustrates drought-tolerant landscape ideas for the Village. Director Becker reported on the March 26, 2015 meeting of the Alameda County Special Districts Association, which was the annual dinner meeting and marked the 25th anniversary of the Association. Director Becker said that he finds value in the ACSDA membership, as its meetings are a good networking opportunity that allow one to match faces with names of other special district management and elected officials. Director Kerr moved approval of the Board Committee minutes for entry to the District record by reference. The motion was seconded by Director Dias and carried unanimously, 4-0. President Becker and Director Young reported on the finalized process to fill the Board vacancy, as determined by the Ad-Hoc Committee. Resumes and cover letters from interested parties are to be submitted by 4:30 pm, Friday, April 10, 2015. Staff will email copies of these materials to the Board, and the qualified individuals will be invited to the April 21 Board meeting to present their qualifications. Short interviews will follow, and depending on the number of applicants, an appointment to the Board may be made at the meeting. If time does not permit, the process may continue at the May 5 Board meeting. Director Dias requested that legal counsel review the interview questions prior to the Board meeting. Director Kerr moved approval of Agenda Item 13, APPROVAL FOR VOLUNTEER SERVICES – TRANG BUI. The motion was seconded by Director Dias and carried unanimously, 4-0. Board approval for unpaid, volunteer work at Oro Loma provides worker’s compensation insurance coverage for the individual, per Resolution No. 3261. Trang Bui will be working as an unpaid volunteer with the Operations Department. President Becker introduced Agenda Item 14, Recommendation for Board Approval of Amended Management Incentive Compensation Plan. The change relates to the elimination of one management classification in February 2014, and that the remaining members of the management

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team undertook the responsibilities of that position in addition to their regular duties. It is proposed that a portion of the bonus ($6,000) for the eliminated position be left in the pool, available to the remaining members of the management team. Director Young MOVED APPROVAL OF AMENDED “MANAGEMENT INCENTIVE COMPENSATION PLAN.” The motion was seconded by Director Dias and carried unanimously, 4-0. Director Young MOVED APPROVAL OF AMENDMENT 1–SUPPLEMENTAL CAPITAL EXPENDITURE AND COST SHARING AGREEMENT BETWEEN ORO LOMA SANITARY DISTRICT AND CASTRO VALLEY SANITARY DISTRICT FOR THE WET WEATHER EQUALIZATION AND ECOTONE DEMONSTRATION PROJECT. The motion was seconded by Director Dias and carried unanimously, 4-0. Amendment 1 raises the construction cost of the project above the $5M threshold, to $6.8M, with the provision that Oro Loma will negotiate a change order to reduce the total cost of the project to $6.3M. District Engineer Halsted confirmed that the change order has been successfully negotiated with the contractor. Director Kerr MOVED TO AUTHORIZE THE GENERAL MANAGER TO ISSUE A PURCHASE AGREEMENT IN AN AMOUNT NOT TO EXCEED $63,000 FOR THE REPLACEMENT OF THE MAIN ELECTRICAL BREAKERS ON THE COGEN GENERATORS. The motion was seconded by Director Dias and carried unanimously, 4-0. Director Kerr MOVED TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH XYLEM-SANITAIRE FOR MEMBRANE DIFFUSED AERATION EQUIPMENT IN AN AMOUNT NOT TO EXCEED $59,195: 2015 AERATION MODIFICATION PROJECT. The motion was seconded by Director Young and carried unanimously, 4-0. District Engineer Halsted opened staff comments by reminding the Board that Thursday, April 9, is the official groundbreaking and ceremonial planting for the Horizontal Levee Project. Administrative Services Manager Andreea Simion said that along with Oro Loma winning the CWEA Plant Safety Award for the San Francisco Bay Region, it was announced that, from a field of five applicants, the District also won the award at the State level. In addition, Oro Loma is the recipient of the Water Environment Federation (WEF) Safety Award for 2014. Director Young inquired if the District has a plan to decrease water usage in response to the State’s 25% reduction requirement. District Engineer Halsted replied that a plan has not yet been discussed. Director Kerr announced that the Washington Homeowners Association will meet at Oro Loma tomorrow at 6:00 pm for a tour of the plant. Following the tour, the Association will hold its regular meeting in the Boardroom. There being no further business to come before the Board, President Becker adjourned the meeting at 4:15 p.m. Roland J. Dias, Secretary (Recording Secretary: Sally Green)

Oro Loma Sanitary District MEMORANDUM TO: Board of Directors FROM: Finance & Insurance Committee

Directors Dias and Becker

DATE: April 17, 2015 S UBJECT: MINUTES, MEETING OF APRIL 17, 2015 The Finance and Insurance Committee, consisting of Directors Dias and Becker, General Manager Warner, and Finance Manager Wong met on Friday, April 17, 2015 at 9:00 a.m. There were no members of the public present. Items discussed included the following:

MONTHLY FINANCIAL REPORTS FOR MARCH 2015 The Committee reviewed the March 2015 financial reports and check register. All records were found to be in accounting compliance. Expenses were on reasonable target for the nine-month interval (61% out of 75%). The cash and investment position was $21.0 million, which included $648,792.66 for day-to-day management of OPEB obligations. The current cash position was $5.56 million lower than in June 2014, and $6.14 million lower than in March 2014, primarily due to the $6.35 million payment of unfunded pension liability. The Committee noted that Castro Valley Sanitary District has participated in this payment, for $1.21 million.

The following checks were reviewed and found to be in good order. #54972 Animal Damage Control $6,300.00 #54992 Ariel Okamoto $5,238.00 #55089 Alameda County Registrar of Voters $96,867.54 #55139 The Rueck Co. $4,836.23 #55143 Wastewater Solids Management Co. $20,300.00 #55172 Cayuga Information Systems $4,262.70 The Committee recommended Board approval of the financial reports.

ECONOMIC ACTIVITY & MARKET RATES UPDATE – APRIL 6, 2015 The Committee reviewed a report from Cutwater Asset Management on current economic conditions. The District's overall investment yield in March was 0.960%. LAIF's interest rate was 0.278%. A $250,000 CD matured in early March and was not reinvested, as the General Manager continues to monitor the District's cash requirements for its operations.

The Committee accepted the information.

ATTORNEY’S INVOICE The Committee reviewed the March 2015 attorney’s invoice, in the amount of $6,945.65, of which $4,685.63 was for personnel matters provided by Singer Associates. The Committee accepted the invoice.

Finance and Insurance Minutes April 17, 2015 Page 2 of 3

CALIFORNIA EMPLOYERS' RETIREMENT BENEFIT TRUST (CERBT) QUARTERLY STATEMENT MARCH 31, 2015 The Committee reviewed the CERBT quarterly statement as of March 31, 2015, showing the balance in the account as $7,253,539.32.

The Committee accepted the information. A copy of the statement is included with these minutes.

FY 2014-15 BUDGET AMENDMENT #4 The Committee reviewed and recommended Board approval of the proposed FY 2014-15 Budget

Amendment #4. The amendment includes $110,500 decrease in the Renewal & Replacement budget, and $631,000 increase in the Capital Improvement Program budget, for a net increase of $520,500. Part of the funds requested have previously been approved by the Board and are formally incorporated into the Budget with other proposed changes in this amendment. The Committee recommended Board approval of the proposed FY 2014-15 Budget Amendment #4. This item will be on the Board agenda on April 21, 2015 for approval by resolution.

FY 2015-16 & FY 2016-17 PRELIMINARY OPERATING & CAPITAL BUDGET The Committee reviewed the preliminary operating and capital budget for the upcoming two fiscal years. The proposed operating budget is $20.56 million (3% decrease) for FY 2015-16 and $21.60 million (5% increase) for FY 2016-17. The proposed capital improvement program budget is $6.47 million for FY 2015-16 and $4.44 million for FY 2016-17. The Committee concurred with the preliminary budget and recommended it for the Board work session on May 1, 2015. The Committee specifically noted the following key items: Revenues from District service charges are based on the approved 3% rate increase for FY 2015-

16, and a tentative 5% increase for FY 2016-17. In addition, the budget assumes an increase in WMAC franchise fees from 5% to 6%. These increases are necessary for the District to maintain adequate cash flows to fund operations and capital needs. Should the Board concur with the proposed sewer rate increases, staff will take steps for Prop. 218 proceedings in FY 2015-16.

An accelerated pension liability funding has been built into each year's budget. The tentative plan

is to fund $1 million per year for the next five years, to eliminate the bulk of the outstanding unfunded liability. The District has the option of not executing the payments, as dictated by actual cash need and CalPERS' actuarial valuation for June 30, 2014 (published in October 2015).

Medical benefits have been projected using a 4% assumed premium increase, and are compiled

on a detailed individual level using each employee's projected family status as framework. Expenses for pension funding are calculated based on projected payroll, CalPERS' normal cost rates, and required unfunded accrued liability (UAL) payments for the next two years. FY 2015-16's overall employee benefits decrease by 20% from FY 2014-15's budget, as the $6.35 million payment results in a $476,000 savings in required UAL contributions.

Finance and Insurance Minutes April 17, 2015 Page 3 of 3

The Committee reviewed the preliminary operating and capital budget and recommended for the Board work session on May 1, 2015.

INSURANCE The Committee was informed of a liability insurance dividend payment from CSRMA in the amount of $22,683, representing favorable results from prior program years. The Committee also reviewed a letter from CSRMA notifying the District that its FY 2015-16 Ex-Mod factor (a factor representing our risk compared to an average of 1.0) will decrease from 0.62 to 0.61. The lowest possible Ex-Mod factor is 0.60. The decrease reflects well on the District's safety culture.

The Committee accepted the information.

ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 10:08 a.m. Attachment: CERBT quarterly statement as of March 31, 2015

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