Wednesday, August 31, 2011

ISD BOARD MEETING SEPTEMBER 6, 2011

FOR THE REGULAR MEETING
BOARD OF DIRECTORS
IRONHOUSE SANITARY DISTRICT

DATE: Tuesday, September 6, 2011

TIME: 7:00 p.m. Regular Meeting

PLACE: Ironhouse Sanitary District Office
450 Walnut Meadows Drive
Oakley, CA 94561


1. Call to Order

2. Roll Call

3. Approval of Agenda

4. Approval of the Minutes of the July 26, 2011 Special Meeting
Approval of the Minutes of the August 2, 2011 Regular Meeting
Approval of the Minutes of the August 9, 2011 Special Meeting

5. Public Comments. At this time, the public may address the Board on subjects not on the agenda. Comments may not exceed three (3) minutes in length. While State Law prohibits Board action or discussion on any item not on the agenda, members of the Board may briefly respond to statements or questions from members of the public, provide a reference to staff or other resources for factual information, request staff to report back to the Board at a subsequent meeting, or take action to direct staff to place a matter on a future agenda. Members of the public are asked to submit a speaker card for public comment in advance of the Chair calling for public comments.


6. Consent Calendar - Consent Calendar items are considered routine and will be adopted in on e single motion. There will be no separate discussion of these items unless requested by a Director or member of the public prior to the Board vote on the motion to adopt.

Staff Report – Michael Welty - Utonomy (see written report)

6A. Approval of Payment Order, Income/Expense Statement & Bank Balances.

6B. Approval of Posting & Publishing of Ordinance 46 Adopting the Annual Sewer Use Report for Fiscal Year 2011/2012. (B.O. 11-41)

7. BUSINESS BEFORE THE BOARD

7A. FEDERAL TITLE XVI WATER RECLAMATION AND REUSE PROGRAM GRANT Res. No. 11-06

7B. CONSIDERATION OF PARTICIPATION IN THE CONTRA COSTA COUNTY CREEK AND WATERSHED SYMPOSIUM, NOVEMBER 17, 2011

7C. CONSIDERATION OF IMPLEMENTING A TEMPORARY FEE INCENTIVE PROGRAM FOR DISTRICT’S PLANT CAPACITY FEES AND TRUNKLINE CAPACITY FEES Res. No. 11-07

8. Staff Reports

9. Board Member Advisory Reports

A. Delta Science Center (Painter, Huerta)
B. Collection Facilities (Contreras, Huerta)
C. Finance (Lauritzen, Hardcastle)
D. LAFCO (Hardcastle, Contreras)
E. Special District Local Chapter (Hardcastle, Painter)
F. City Liaison (Hardcastle, Huerta)
G. East County Water Mgmt Governing Board (Hardcastle, Huerta)
H. Public Outreach (Huerta, Contreras)
I. JI Management Plan (Hardcastle, Painter)
J. BIMID / BI MAC (Lauritzen Painter)


10. Closed Session –

Closed Session pursuant to Government code Section 54957:
Public Employee Performance Evaluation (General Manager)


11. Actions Resulting From Discussions In Closed Session


12. Adjournment



Posted: Susan V. Walde Date: August 31, 2011

Monday, August 8, 2011

ISD Board Meeting July 5, 2011 Minutes

MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS OF THE
IRONHOUSE SANITARY DISTRICT

July 5, 2011

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, July 5 2011.

The place of meeting was the Ironhouse Sanitary District office at 450 Walnut Meadows Drive, Oakley, California.

1. Call to Order
The meeting was called to order by President Michael Painter at 7:00 p.m.

2. Roll Call
Directors present: David Contreras, Doug Hardcastle, David Huerta, Chris Lauritzen, and Michael Painter

Directors absent: none

Staff/Consultants present: Tom Williams, General Manager
Dave Dal Porto, Reclamation, Levee and Ranch Superintendent
Jenny Skrel, District Engineer
Susan Walde, District Secretary
Fred Etzel, District Counsel

Interested Parties: Randy Pope, City of Oakley City Council
Marc Young, Oakley
P. Kemp, Oakley

3. Approval of the Agenda
President Painter asked the Board to move Item 7B before Item 7A. M/S D. Contreras, C. Lauritzen, and the Board voted to approve the Agenda with the change of moving Item 7B before Item 7A.


4. Approval of the Minutes of the June 7, 2011 Regular Meeting
President Painter requested that the minutes of the June 7, 2011 meeting be reviewed at the August 2, 2011 Regular Meeting of the Board. M/S D. Contreras, C. Lauritzen and the Board voted to review the minutes of the June 7, 2011 meeting at the August 2, 2011 general meeting of the Board.


5. Public Comments – Communications from the public on subjects not on the agenda.
There were no comments from the public at this time.
6. Consent Calendar
A. Approval of Payment Order, Income/Expense Statement & Bank Balances.
B. Approval of Posting & Publishing of Ordinance 44/Order 11-19 Decreasing Trunkline Capacity and Plant Capacity Fees.
M/S D. Huerta, D. Contreras and the Board approved the consent calendar.

Staff Report – Michael Welty – Mr. Welty reported the auditors will be here the second week in September to complete the audit. Beverly Dagneau will be returning from medical leave on the 20th of July. Staff will be busy in July and August preparing for the year end and the annual audit.


7. BUSINESS BEFORE THE BOARD

7B. CONSIDERATION OF RECOMMENDED PLAN FOR REMOVAL OF RECOGNIZED ENVIRONMENTAL CONDITIONS (REC’s) FROM LOT 1 ON JERSEY ISLAND.
Mr. Williams reported to the Board that, in November 2010, the Board gave direction authorizing the General Manager to move forward with the acquisition of Lot 1 of Jersey Island at the pre-determined price set in the original purchase agreement.
Mr. Etzel gave a summary of the Phase 1 report and stated a copy of the phase 1 report will be available at the district office for Directors to review. Mr. Etzel gave a summary of the 500 gallon underground storage tank located within the levee, he stressed care would be given to not jeopardize the integrity of the levee. He also reported on the two above ground storage tanks (ASTs) which were used to store diesel fuel. An empty container located near the Halsey Residence will be properly disposed by ISD. A 55-gallon drum with unknown contents which is contained in a shed on Lot 1 will be removed via a contract issued by ISD, in accordance with environmental rules and regulations. Mr. Etzel explained that the contractor hired would obtain the permits from the CCC Health Services Dept and the Levee Encroachment permit from RD830. He also stated that ISD would use its own resources to abandon the three septic systems on Lot 1.
Mr. Etzel asked the Board to authorize staff to go ahead and implement the plan to obtain, through a competitive bidding process, a contractor to remove and dispose of the 500 gallon UST and the 55 gallon drum. He asked for the Board’s support for the plan going forward to authorize staff to proceed with the project, with the estimate to complete the work between $10,000 - $15,000. ISD staff would remove the structures at a cost of approximately $40,000 to $50,000 at a later date. Ms. Skrel would be supervising the project and contract to remove the tanks.

President Painter asked for public comment, hearing no comment, he asked the Board for a motion.

M/S D. Hardcastle, M. Painter and the Board voted unanimously to authorize the General Manger to implement the plan for removal of recognized environmental conditions (REC’s) from Lot 1 on Jersey Island upon approval of purchase of said property. (B.O. 11-31)


7A. RATIFICATION OF AGREEMENT FOR PURCHASE OF LOT 1 ON JERSEY ISLAND FROM DELTA PROPERTIES, INC.
ISD General Council and ISD staff have been working with Delta Properties over the last 6 months on this purchase agreement, and can finally bring it before the Board tonight. With the finalization of this agreement, it will bring ISD to full ownership of Jersey Island. Mr. Etzel reported that on November 2, 2010, the Board authorized the General Manager to negotiate and finalize the purchase agreement. Staff brought the agreement back to the Board to review the agreement with two new ISD Directors and to have the agreement ratified by the now Board. The agreement has been signed by Delta Properties and awaiting date and signature of President Painter.
President Painter asked for public comment. Ms. Kemp asked why we would want to own the entire island. Mr. Williams responded that the purchase of the last 55 acres is essential to land access by staff for levees and cattle management. Discussion was held by the Board on the indemnification by the owner and the mineral rights held on the property.
M/S C. Lauritzen, D. Hardcastle and the Board voted unanimously to authorize the President to sign The Purchase and Sale Agreement of Lot 1 on Jersey Island. (B.O. 11-32)


7C. CONSIDERATION OF GRAND JURY REPORT DATED APRIL 6, 2011, AND DRAFT RESPONSE
Mr. Williams stated to the Board that in the later part of April he received a request from the Grand Jury to respond to a Grand Jury report related to Special District and City Council elected officials. The report is due back to the Grand Jury on the 25th of July. Mr. Williams stated by comparison the ISD Board stipend is below average of other Sanitary and Sanitation Districts in Contra Costa County and Alameda County. Mr. Etzel stated the full Grand Jury report is available to anyone and can be obtained from the District Secretary. Mr. Etzel stated he and staff have worked together to prepare the draft response to the Grand Jury.
Director Huerta stated the Grand Jury itself was not included in their own report and that the methodology of the report compared “apples to oranges,” and, therefore, skewed the results unfairly. The Board stated that the report should consider some Districts are more complex and need more Board involvement in conducting business.

Director Lauritzen stated he is happy to be on the Board and believes he works hard for the rate payers. He works at his business five days a week, and is always “on-call” to serve the rate payer. While he as an elected official in this case, he is not a volunteer. As a Director on the ISD Board, he is often called away from his business to conduct ISD Business and feels some compensation is appropriate. Also, Mr. Lauritzen mentioned he did not take medical compensation for 6 years and just recently did.

Director Hardcastle stated that he was in the Army and has served on many volunteer Boards, but that the ISD position is more than volunteer. He stated that he has not missed a meeting since elected in 2000 to the ISD Board of Directors. He stated that he is the ISD representative at the City Council meetings and feels that ISD and the City should be on the same team, and should honor each other. He feels very dedicated to the people of Bethel Island and the people of Oakley and works hard to represent them well.

Director Contreras directed staff to include in the District’s response to Grand Jury Report No. 1104 the statement that the Directors of sanitary districts, such as Ironhouse, which are experiencing and anticipating growth. As such, the ISD Board in their service areas, and are accordingly substantially upgrading their facilities to accommodate this growth, must devote significant time, attention and oversight to ensure that these facility upgrades are accomplished in a cost-effective manner which complies with state water quality standards, which are becoming increasingly more stringent to comply with.

President Painter asked for public comment, hearing no public comment, he asked for a motion.

M/S D. Contreras, D. Hardcastle and the Board voted unanimously to approve the response and included the following statement in the Grand Jury Report No. 1104 in Recommendation #3:

Ironhouse further notes that currently the District is substantially upgrading its facilities to accommodate the growth anticipated within its service area and the Directors must devote significant time, attention and oversight to ensure that these facility upgrades are accomplished in a cost-effective manner which complies with state water quality standards that are becoming increasingly more stringent over time. (B.O. 11-33)


7D. CONSIDERATION OF CONTINUED PARTNERSHIP IN BAY AREA RECYCLED WATER COALITION (TITLE XVI Funding Program) AUTHORIZING THE GENERAL MANAGER TO SIGN FIRST AMENDED AND RESTATED MEMORANDUM OF AGREEMENT.
Mr. Williams stated the amended and restated MOA is a continuation of ISD’s participation in this regional effort to seek Federal grants for recycled water projects. It is being amended and restated to include several new types of agencies, share the cost of the Lead Agency’s administrative expenses among the participants, and revises the cost sharing formula for Participating Agency costs for federal advocacy.
Discussion was held on the progress of the Recycled Water Master Plan and the participation in the future planning of recycled water in the City.
M/S D. Contreras, D. Huerta and the Board voted unanimously to approve the proposed Amended and Restated MOA and authorize the General Manager to sign the contract. (B.O. 11-34)

7E. CONSIDERATION OF AMENDING THE DISTRICT’S DENTAL INSURANCE TO INCLUDE IMPLANTS
Mr. Williams stated he contacted the insurance carrier to see if dental implants could be a covered item under our plan. The two options available to the District are 1) $902.12 per year with a lifetime cap option which would cover up to $5,000, and 2) a savings of $2,615.76 per year with an annual program that would cover all dental coverage up to $2,500 including coverage for implants.
Discussion was held regarding the coverage and savings to the District. President Painter asked for public comment, hearing no public comment, he asked for a motion.

M/S D. Huerta, D. Contreras and the Board voted unanimously to authorize the General Manger to amend the District’s dental plan to include implants under “major services,” with the annual caps remaining unchanged and a F/Y 11/12 savings to the District of $2,615.76. (B. O. 11-35)

7F. CONSIDERATION OF ISD WWTP GRAND OPENING DATES & LEVEL OF EXPENDITURES. (Possible dates: October 8, 12, 15, 19, and 22.)
As the new wastewater treatment plant nears completion, Mr. Williams asked the Board to take into consideration the dates of October 8, 12, 15, 19 and 22 for consideration of holding the Grand Opening. Director Contreras stated he has had experience with grand openings and they have been highly attended if they are held on a weekend, which he would recommend. The Board discussed the date of October 15, 2011 for the grand opening. Mr. Williams discussed options for the budget for the event, with possible participation from others such as vendors and contractors. Discussion was held to have the Public Outreach committee bring back a budget for Board approval and possible partnering participation. President Painter asked for public comment. No public comment was made. Director Lauritzen stated it is very important to let the rate payers know the funds for this event will not come from rate payer fees. The funds should come from revenue sources such as reserves and other non-operating monies.

7G. CONSIDERATION OF REQUEST TO ADVERTISE FOR PROPOSALS FOR REMOVAL AND DISPOSAL OF SOLIDS FROM TREATMENT CELLS AND EFFLUENT STORAGE PONDS.
Ms. Skrel approached the Board asking for authorization to advertise the request for proposals for Removal and Reuse/Disposal of Treatment Ponds and Effluent Storage Ponds Solids at the Ironhouse Sanitary District Wastewater Treatment Plant. Ms. Skrel stated the District will be advertising for requests for proposals and has interested contractors wanting to submit a bid on the project. Staff is requesting the Board authorize the General Manager to award the project. The bids are due on the 20th of July. Discussion was held by the Board on the tonnage and possible locations for disposal of biosolids. Ms. Skrel responded to the board inquiries that the location of disposal is determined by the contractor.

After discussion, the Board determined the item should be brought back to the Board for approval.
M/S Hardcastle, Lauritzen and the Board voted unanimously to authorize the District Engineer to advertise an RFP for removal and reuse/disposal of treatment ponds and effluent storage ponds solids at the Ironhouse Sanitary District Wastewater Treatment Plant and set date of Tuesday, July 26, at 5:30 p.m. to hold a special meeting of the Board to award the bid to a contractor for air dry, load transport and reuse/disposal of treatment pond and effluent storage ponds solids. (B.O. 11-36)

7H. CONSIDERATION OF BOARD COMMITTEE ASSIGNMENTS
President Painter stated with the change in Directors, he would like to re-evaluate the committee assignment of Board Directors. The following committee assignments were determined:
Board Member Advisory Committees:
• Delta Science Center (Painter, Huerta)
• Collection Facilities (Contreras, Huerta)
• Finance (Lauritzen, Hardcastle)
• LAFCO (Hardcastle, Contreras)
• Special District Local Chapter (Hardcastle, Painter)
• City Liaison (Hardcastle, Huerta)
• East County Water Mgmt Governing Board (Hardcastle, Huerta)
• Public Outreach (Huerta, Contreras)
• JI Management Plan (Hardcastle, Painter)
• BIMID / BI MAC (Lauritzen Painter)

8. Staff Reports

Tom Williams - Mr. Williams reported to the Board that he has been working with the Outreach committee on the Cityhood Celebration. He has also been working with Ms. Skrel on the treatment plant process. He is working on the next newsletter with Roni Gehlke and plans to have it to the printer in July and out for publication in August. Mr. Williams reported that as president of RD830 he met with BIMID in a planning effort to come together as a team partnering with them to develop a mutual partnership in case of an emergency; stock pile rock, sand bags, and stock piles.
Mr. Williams has been working to set up a meeting with Mr. Bob Glover of the Building Industry Association and ISD’s consultant Bartle Wells Associates regarding opportunities for reduction of fees. Mr. Williams stated he would be attending the ground breaking for Radback Energy on July 12.

Fred Etzel – Mr. Etzel reported he has been following the Delta Stewardship Council and following the draft delta plan and how it relates to Jersey Island.

Dave Smith – Mr. Smith submitted a written report to the Board.

Marc Haefke – Mr. Haefke submitted a written report.

Jenny Skrel – Ms. Skrel submitted a written report.


9. Board Member Advisory Reports
Director Doug Hardcastle– Vice President Hardcastle reported that City Council temporarily reduced the developer’s fees by 50% for the next two years.

Director Chris Lauritzen – Director Lauritzen reported that west side of False River, Dutch Slough will be having water quality issues by the year 2012, so Department of Water Resources is again considering a damn of some sort in False River near Jersey Island.

Director David Huerta –Director Huerta reported regarding public outreach and how it has been a busy month working with Roni Gehlke on the newsletter. The committee is planning the grand opening and researching alternative funding for the event.

Director David Contreras – Director Contreras thanked staff for their hard work. He reported on the literature and grease can given out at the Cityhood Celebration on the 2nd of July. The outreach committee met on the 16th of June. ISD has applied for the Technological Innovation Achievement Award with CASA and thanked Mr. Williams and Ms. Skrel for their hard work on the application. Director Contreras thanked staff for their submitted reports and specifically Mr. Dal Porto for the information on the Video cattle sales stating how informative his report was.


10 Adjournment
President Painter adjourned the regular meeting at 9:15 p.m. until Tuesday, August 2, 2011 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.

ISD Board Meeting June 7, 2011 Minutes

MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS OF THE
IRONHOUSE SANITARY DISTRICT

June 7, 2011

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, June 7, 2011.

The place of meeting was the Ironhouse Sanitary District office at 450 Walnut Meadows Drive, Oakley, California.

1. Call to Order
The meeting was called to order by President Michael Painter at 7:00 p.m.

2. Swearing In and Introduction of new Board Member - David Contreras
The District Secretary held a ceremony swearing in the newly appointed Board member David Contreras who accepted the oath of office.

3. Roll Call
Members present: David Contreras, Doug Hardcastle, David Huerta, Chris Lauritzen, and Michael Painter

Members absent: none

Staff/Consultants present: Tom Williams, General Manager
Dave Dal Porto, Reclamation, Levee and Ranch Superintendent
Marc Haefke, Operations Superintendent
Jenny Skrel, District Engineer
Susan Walde, District Secretary
Bob Henn, District Counsel

Interested Parties: Randy Pope, City of Oakley City Council
Roni Gehlke, Oakley
Peter Canepa, Oakley
Teresa Harris, Oakley
Robert Lee Harris, Oakley
Angelia Lowery, Oakley
Doreen Contreras, Oakley

4. Introduction of New Employees – Chris Christean, Operations Supervisor and Joe Mueller, Environmental/Process Compliance Manager
President Painter introduced Mr. Christean and Mr. Mueller to the Board. Each of the new employees gave their experience and background. Mr. Mueller stated he is excited to be part of a staff to help with the plant experience and process control. On behalf of the Board and staff President Painter welcomed them aboard.

5. Approval of the Agenda
President Painter asked the Board to move Item 9B before Item 9A. M/S C. Lauritzen, D. Hardcastle and the Board voted to approve the Agenda with the change of moving Item 9B before Item 9A.

6. Approval of the Minutes of the May 3, 2011 Regular Meeting
M/S Lauritzen, Hardcastle and the Board approved the minutes of the May 3, 2011 Regular Meeting of the Board, abstaining; member Contreras.
Approval of the Minutes of the April 22, 2011 Special Meeting
M/S Lauritzen, Hardcastle and the Board approved the minutes of the April 22, 2011 Special Meeting, abstaining; members Contreras and Huerta.
Approval of the Minutes of the May 17, 2011 Special Meeting
M/S Painter, Lauritzen and the Board approved the minutes of the May 17, 2011 Special Meeting of the Board, abstaining; member Contreras.
Approval of the Minutes of the May 24, 2011 Special Workshop Meeting
M/S Contreras, Huerta and the Board approved the minutes of the May 24, 2011 Special Workshop Meeting.

7. Public Comments – Communications from the public on subjects not on the agenda.
There were no comments from the public at this time.

8. Consent Calendar
a. Approval of Payment Order, Income/Expense Statement & Bank Balances.
b. Approval of Posting & Publishing of Ordinance 44/Order 11-19 Decreasing Trunkline Capacity and Plant Capacity Fees.
c. Approval of Posting & Publishing of 2011/2012 Sewer Service Charge Increase Public Hearing.

M/S D. Huerta, D. Contreras and the Board approved the consent calendar.

9. BUSINESS BEFORE THE BOARD

9B. PUBLIC HEARING AND BOARD CONSIDERATION OF AN ORDINANCE AND ORDER INCREASING SEWER USE FEE (Ordinance No. 45, Order 11-25) ACTION ON PROPOSED SEWER USE FEE FOR FISCAL YEAR 2011/2012
Mr. Williams gave an overhead Power Point presentation and gave a brief history and timeline of how we have moved forward having serving Oakley since 1945 and Bethel Island since 1977. He presented a timeline showing adopting the final EIR Wastewater Facilities Plan in 1994 to loan re-payment in 2012. In November 2012 ISD begins re-paying 0% 20-year loan and explained how planning was key. He reported that the ISD Water Recycling Facility is on schedule and on budget with 0% financing. He gave details on the pay-as-you go financing plan for the new Water Recycling Facility. He gave details on the breakdown of the proposed service charge and operating costs. Mr. Williams reported that ISD used money earned from the cattle operation and ad valorem tax to help keep the rate down. He also gave a five year step of proposed rate fee increases at a cost saving to rate payers and a report of alternative saving for the future, solar, wind or both. The District is finding ways to support new homes and businesses utilizing District owned property to provide additional revenue and utilization and sale of new highly treated water.

At 7:28 pm President Painter opened the Public Hearing

Mr. Peter Canepa addressed the Board. Mr. Canepa represented the Eagle City Mobile Home Park, one owner of 143 units and a few public buildings. He thanked the Board for the consideration of the increase to $592 compared to the proposed rate. He stated his tenants will be pleased. The average size unit is 850 sq. ft., single individuals and a few 1200 sq. ft. unit. He stated that most tenants are on Social Security, fixed income with no raise. Mr. Canepa stated he would like the Board to consider a classification adjustment for the senior residents.

Ms. Angela Lowery addressed the Board stating she works for a WWTP and asked if it was true the Board reduced fees for developers. Mr. Williams addressed Ms. Lowry’s question and gave a breakdown of fees for development. Mr. Williams expressed and explained the savings.
Ms. Lowry asked what our plans were to address future regulations.
Mr. Williams addressed our participation in the ECWMP, potentially a 3 ½ mile Bay Area Recycle Water Coalition and authorization of Draft Recycle Water Mater Plan working on the Finance Model for Recycle Water Plan. Ms. Lowery thanked the Board for answering her questions.

Ms. Theresa Harris addressed the Board stating she is a resident of Oakley and works for a Sanitation Agency in the area. She asked the Board to consider our rates as compared to Bay Point, Pittsburg and Brentwood. She stated that sewer service fee added to cable, garbage and water fees of $150 are out of sight. She is having trouble with a rate reduction to developers and a rate increase to rate payers from $574 to $592. Mr. Williams explained the process of new connections and stated this fee is reviewed and adjusted every 5 years. Ms. Harris stated she is concerned there might be a time when we will be approaching a fee of $700 going forward. Mr. Williams explained the loan process and how the future fee will be equated. Mr. Williams stated as a District we made the jump which has put us ahead of the game. As future regulations come along, the neighboring districts will have to comply and do the improvements. When that happens, there will be substantial increases

Randy Pope of the City of Oakley addressed the Board applauding the connection fee reductions. He asked the Board that before considering any fee increase to review that salaries are 62% of the operating budget and ask the Board to also consider the grand jury report for Board members and stated it is not fair or ethical that we have the “Golden Goose” and asked the Board to reduce their benefits since their positions are for public service.
At 7:50 p.m. M/S Lauritzen, Contreras and the Board voted to close the Public Hearing

Doug Hardcastle – The requirements are mandated by the State and we are obligated to make the required improvements. Regarding the mobile home park, as in taxes for the school district, we are required to pay even if we do not have children in school. Mr. Hardcastle also stated that the Board are public servants and do act on behalf of the rate payers.

David Contreras – In response to a question from the audience on why we have to do this, Member Contrertas stated that the State permit negotiated mandates the requirements. We have to provide the infrastructure for the city to grow. He stated he has been in the industry for 36 years. You do your homework, use your tools; public outreach and public education. He stated the employees have gone without increases and it is time to take care of them. The District is facing fines if we do not fulfill our program and regulations. Regarding the rates of districts close to ISD, they may not have the capability to address the future needs.

David Huerta – Mr. Huerta stated he has faced this kind of issue before and has had to bit the bullet to built up rates or go along and hit the wall and then the rate payers would be hit with triple rates to meet the standards. This facility will be state of the art and a rate of $592 is a savings ramping up the payment. Regarding the senior citizens, he feels for them and plans to address a program for discounts. Addressing the developers fees the fees are a very small portion of the overall cost of fees, 11 percent and with the deduction down to 8 percent.

Michael Painter – Mr. Painter stated the Board has thoroughly gone over this budget to cut as much as possible The board is looking at ways to lower rates and will continue to work as hard as they can to keep the rates low.

Chris Lauritzen – Mr. Lauritzen stated that in 2004 when he came on the Board they heard about the massive amount of growth the City would incur. The Board made the decision to build a new plant to stay ahead of development and not run out of room. Mr. Lauritzen stated that you can not compare region 5 with region 2 where salts are not an issue. The salt restrictions in region 2 require us to have much higher regulations.
Mr. Lauritzen stated he can sympathize with the rate payers as he is one himself. He asked the audience how many would like to see windmills by a show of hands – many hands were raised. He stated as a Board we are doing everything we can to keep the rate down for the rate payers. We are here today to tell you what the rates are and work every year to lower the rates from the proposed needed adjustment. Mr. Lauritzen invited all those in attendance to come to more meetings.

M/S Painter, Contreras the Board unanimously voted to adopt Ordinance No. 45 and Order No. 11-25 designating the District Secretary to publish a summary notice of the Ordinance to adopt the increase. (Ordinance 45 and B.O. 11-25)

9A. CONSIDERATION OF FISCAL YEAR 2011/2012 PROPOSED BUDGET.
Mr. Williams stated the Board had a workshop on May 24th and staff brought back the changes and implemented them in the budget.
Mr. Hardcastle stated he is opposed to staff receiving the proposed 2% COLA and also opposed to the raise in medical fees as the staff has had no lay-offs or furlough days. Mr. Contreras stated compared to our industry the budget is very fair. Mr. Williams state the industry average is running 3% compared to the proposed 2%. Mr. Huerta stated the 2% is something necessary or we will see reversals in staffing. Mr. Lauritzen stated the 2% COLA is $29,000 per 1% or $.34 per month to the rate payer. He has owned a marina for 24 years has not been able to give his staff a cost of living increase. ISD needs to stay in step. If we don’t, we start seeing changes in staff. He is in favor of a 2% COLA. Mr. Painter stated that the 2% COLA means staff are still losing 3-4% per year. We built this plant and have an excellent staff. We gave to rate payers $900,000 made on cattle and stated he is in favor of the 2% COLA. Mr. Hardcastle stated he, Mr. Lauritzen and staff worked on the budget and did a great job. Hearing no public comment, Mr. President asked for a motion.
M/S Contreras, Lauritzen and the Board voted to adopt the FY 2011-2012 Budget with Mr. Hardcastle opposed. (B.O. 11-27)

9C. AUTHORIZING GENERAL MANAGER TO ACCEPT BIDS AND AWARD CONTRACT ON PAVEMENT REHABILITATION PROJECT ON JERSEY ISLAND TO BE COMPLETED BY JUNE 30, 2011 – PROJECT NO. ISD-11-01
Ms. Skrel reported to the Board that one bid was submitted and asked the Board to authorize the General Manager to award the bid to ALB, Inc. General Contractors for the amount of $48,000. M/S Contreras, Lauritzen and the Board voted to authorize the General Manager to accept the bid and award the contract on pavement rehabilitation project on J.I. to ALB, Inc., General Contractors for the amount of $48,000 and for the work to be completed by June 30, 2011. (B.O. 11-26)

9D. AUTHORIZING GENERAL MANAGER TO ACCEPT BIDS AND AWARD CONTRACT ON SECURITY SYSTEM AT WASTEWATER TREATMENT PLANT.
Ms. Skrel reported to the Board she received three bids on the Security System for the WWTP. The three bidders were Bay Area Alarm, ADT and Scheer Alarm. The highest bidder was $71,443 and the lowest bidder was $63,309. Ms. Skrel stated the bids were not comparable and two did not include the wire. Mr. Hardcastle stated his preference would be to accept the local bid.
M/S Hardcastle, Lauritzen and the Board unanimously voted to authorize the General Manager to accept the bid and award the contract on the Security System at the WWTP after Ms. Skrel contacts bidders for amounts on equal terms and contends of bids. (B.O. 11-28)

9E. AUTHORIZING GENERAL MANAGER TO ACCEPT BIDS AND AWARD CONTRACT ON A 40 FOOT BY 160 FOOT STEEL BUILDING KIT. PROJECT NO. ISD-1102
Ms. Skrel reported to the Board that she received one bid for the pole barn and the bid was for $66,000 to provide the building and an additional $39,000 to erect the building. Ms. Skrel reported the budget only allows for $50,000 for the structure. Staff recommends the Board to take no further action. M/S Lauritzen, Hardcastle and the Board voted to table and reject the bids due to the amount being outside the budget amount. (B.O. 11-29)


10. Staff Reports
President Painter thanked staff for submitting their written reports. The information was very informative for the Board.

Dave Smith – Mr. Smith submitted a written report to the Board.

Marc Haefke – Mr. Haefke submitted a written report.

Jenny Skrel – Ms. Skrel submitted a written report.

Tom Williams - Mr. Williams reported to the Board that he and Mr. Painter met with the City Development committee. They met with Jim Frasier, City Manager, DWD, High School Dist, CC Water all met with the interest of commercial aspects to address rates to attract business into the area. Times have changed and old formulas have changed.

11. Board Member Advisory Reports
Michael Painter – President. Painter officially appointed David Contreras and David Huerta to the Public Outreach committee.

David Contreras – Member Contreras reported the Public Outreach committee met today. He reported the rate payers deserve recognition of what is being done and is working on developing a stronger public outreach program.

David Huerta –Member Huerta reported regarding public outreach, the committee is exploring the idea of piggybacking with other agencies to share costs for publications. He also reported the committee is working on applying for awards for the District.

Doug Hardcastle– Member Hardcastle reported that the grand opening is approaching rapidly and asked the progress on getting a committee together. He suggested possibly getting the schools involved and having an essay contest with the winner being involved in the grand opening.

David Huerta – Member Huerta reported on attendance at the CASA conference reporting it was doom and gloom. He reported on taking advantage of social media for getting information out to the public.

12. Adjournment
Chairman Painter adjourned the regular meeting at 9:00 p.m. until Tuesday, July 5, 2011 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.

ISD Board Meeting May 3, 2011 Minutes


MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS OF THE
IRONHOUSE SANITARY DISTRICT

May 3, 2011

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, May 3, 2011.

The place of meeting was the Ironhouse Sanitary District office at 450 Walnut Meadows Drive, Oakley, California.
1. Call to Order
The meeting was called to order by President Michael Painter at 7:03 p.m.

2. Roll Call
Members present: Doug Hardcastle, David Huerta, Chris Lauritzen, and Michael Painter

Members absent: none

Staff/Consultants present: Tom Williams, General Manager
Dave Dal Porto, Reclamation, Levee and Ranch Superintendent
Marc Haefke, Operations Superintendent
Jenny Skrel, District Engineer
Susan Walde, District Secretary
Bob Henn, District Counsel

Interested Parties: Bob Glover, Building Industry Association
Don Hofer, Shea Homes
Randy Pope, City of Oakley,


3. Introduction of New employee – Chris Christean, Operations Superivsor
Mr. Haefke asked the Board to defer the introduction to the June meeting of the board.


4. Approval of the Agenda
M/S C. Lauritzen, D. Hardcastle and the Board voted to approve the Agenda.


5. Approval of the Minutes of the April 5, 2011 Regular Meeting
M/S D. Huerta, D. Hardcastle and the Board approved the minutes of the April 5, 2011 regular Meeting of the Board.


6. Public Comments – Communications from the public on subjects not on the agenda.
There were no comments from the public at this time.

Mr. Mark Gagliardi, an applicant for the position of Director, spoke to the Board on his interest in the position of Director. He addressed the Board with an apology that he will not be able to attend the interview process on May 17, 2011 due to his father’s illness and previous travel plans to visit him out of state. Mr. Gagliardi gave a brief background of his education, work experiences and qualifications for the position. He stated he ran under the ballot he feels that he would be the people’s choice for the position. He is an advocate of keeping rates low for the rate payer; and an advocate for the small business man. He asked the Board to consider his interest in the position on May 17, 2011.


7. Consent Calendar
A. Approval of Payment Order, Income/Expense Statement & Bank Balances.

M/S D. Huerta, D. Hardcastle and the Board approved the consent calendar.

Staff Report – Michael Welty – Mr. Welty reported to the Board and staff that May 24th will be the budget workshop and June 14-15 will be the auditor’s interim audit.


8. BUSINESS BEFORE THE BOARD

8A. PRESENTATION BY MICHAEL MCGILL, SPECIAL DISTRICTS REPRESENTATIVE, UPDATE ON CONTRA COSTA COUNTY LAFCO.
Mr. McGill introduced himself to the Board as the Special District’s representative to LAFCO. He was elected as chair of LAFCO. He is here to provide an updated report to the Board on the activities of LAFCO. He reported on getting more power at the LAFCO level. He reported on the discussions taking place regarding consolidations. Mr. McGill stated he would like to hear from the board with any questions or comments at any time and to contact him. The Board thanked Mr. McGill for his report.


8B. CONSIDERATION TO ACCEPT CAPACITY FEE UPDATE REPORT BY BARTLE WELLS ASSOCIATES. (Plant capacity and Trunkline Capacity Fee).
Mr. Williams gave a summary of the capacity fee update study and stated it has been almost five years since the last study. The plant capacity and trunk line capacity fee were addressed due to the low bids and the no interest loan. The connection fee was not addressed at this time, but will be in the near future. The study shows significant reduction of both plant capacity and trunkline capacity fees.
Mr. Bob Glover of the Building Industry Association addressed the board on behalf of the Building Industry Association and stated he is not supporting the capacity fee study. Due to the short amount of time the association had to analyze the study. He asked the Board to give the association more time to analyze the study and the rates proposed. Mr. Williams would like to work with Mr. Glover and asked the Board to accept the proposed fee and address the rate study and fee at a later time to capture and rebate any fee that may be adjusted.
Mr. Don Hofer of Shea Homes gave his support to staff and cheered on in support of a fee reduction. He stated the economics have been tough on developers and home sales. His plea to the Board is to right size the fees. Discussion was held on the total fees for a home in a development and the percentage of fees for each of the fee entities.
Board member Lauritzen stated in 2005 the plant was at capacity, and the board decided to expand the WWTP, saving rate payers and developers. We all recognize developers are sensitive. The Board obligated 68 million dollars borrowed to provide a plant for new development.
The developers would like a full stakeholder’s process and review of the fee adjustments.
Staff recommends the Board accept the report as proposed and schedule a stakeholder’s review in 30-60 days bringing back the results to the Board.
M/S D. Hardcastle, C. Lauritzen and the Board voted to accept the Capacity Fee Update Report by Bartle Wells Associates as proposed and schedule a stakeholders review in 30-60 days bringing back to the Board in case of a further reduction, subject to further review and consideration no later than the July 5, 2011 scheduled Ironhouse Sanitary District Board meeting. (B. O. 11-17)

8C. PUBLIC HEARING AND BOARD ACTION ON PROPOSED ADJUSTMENTS ON PLANT CAPACITY AND TRUNKLINE CAPACITY FEES FOR FISCAL YEAR 2011/2012 (Adjustments to be considered are the plant capacity fee - $1347.05 per EDU decrease; Trunkline capacity fee - $176.48 per EDU decrease.
President Painter opened the public hearing at 7:52. Staff stated that the proposed rate decreases are the rates accepted in the Capacity Fee Update Report. President Painter closed the public hearing at 7:54 p.m.
M/S D. Huerta, D. Hardcastle voted to adopt the Plant Capacity Fee of $4,442.00 and a Trunkline Capacity fee of $854.00. (B.O. 11-18).

8D. CONSIDERATION OF AN ORDINANCE AND ORDER ADJUSTING TRUNKLINE CAPACITY, AND PLANT CAPACITY FEES (Ordinance 44 Order 11-19).
M/S M. Painter, D. Huerta and the Board unanimously voted to accept the proposed decreases on plant capacity and trunk line capacity fees for fiscal year 2011/2012 effective on July 5, 2012. The Board designated the District Secretary to publish a summary notice of the Ordinance to adopt the decrease. (Ordinance 44 and B.O. 11-19)

8E. CONSIDERATION TO SET THE HEARING FOR SEWER SERVICE CHARGE INCREASE FOR FISCAL YEAR 2011/2012. (Approve notice to set Hearing).
Mr. Williams explained that by authority of Ordinance 32 and the estimate of the FY 11/12 service charge as indicated in the Notice of June 5, 2007, the rate estimated, and therefore noticed, for the fiscal year 2011/2012 is $630. Mr. Williams reported that the District has saved on the cost to construct the new WWTP, the District will be borrowing less money to complete the project and, therefore, will have less annual debt service costs which the rate payer, and new development will have to pay translating into a lower annual sewer service charge rate as compared to the five year estimate adopted in June 2007. The rate increase for FY 2011/2012 should, again, remain below the maximum rate of $680. Through the budget process the rate will be finalized and staff will propose a sewer service charge at or below the noticed $630.00 for the notice of Public Hearing. M/S M. Painter, D. Huerta and the Board accepted the proposed sewer use charge increase for purposes of the notice and set June 7, 2011 for the public hearing on the said increase. The hearing shall be held at the time and place of the regular June meeting. Staff was directed to post, publish and mail the required notices. (B.O. 11-20)

8F. CONSIDERATION OF CREATING “ENVIRONMENTAL/PROCESS COMPLIANCE MANAGER” POSITION FOR THE TREATMENT PLANT.
Mr. Williams explained to the Board that he is combining two lower end positions into one position, a Grade 5 operator and provide a higher functioning operations staff due to a greater level of in-house expertise and cross training from within. The position will save money on outside consulting and outside lab testing and bring our in-house lab on-line sooner. Mr. Haefke spoke to the Board stating he has been working with Joe Mueller developing our plan for the WWTP. Staff have addressed the savings to the District with a smaller operational staff, he addressed that Joe has started up many plants. Staff is asking the Board to authorize the General Manager to approach Mr. Mueller and discuss/offer him the position.
M/S D. Hardcastle, D. Huerta and the Board voted to approve the creation of the position of Environmental/Process Compliance Manager and authorize the General Manger to approach Mr. Mueller and discuss/offer him the position and if Mr. Mueller declines the opportunity, ISD would then begin advertising the position through more traditional methods. (B.O. 11-21)

8G. CONSIDERATION OF PURCHASE OF EQUIPMENT FOR JERSEY ISLAND USING THIS FISCAL YEAR EXCESS REVENUE FROM CATTLE OPERATION.
Mr. Dal Porto addressed the Board regarding the budget item of an equipment repair and replace of a swather header. Since the budget process, staff has found out that New Holland didn’t integrate the new headers to the old swathers. Instead of buying a newer used one, staff is asking the Board’s consideration to purchase a new machine. The cost with trade in would be approximately $85,000. Mr. Dal Porto also asked the Board to consider the purchase of a used 100-110 HP tractor for raking in the hay operation, chopping weeds over the entire island and moving the levee tops. This tractor could be obtained for approximately $40,000.
M/S Painter, Hardcastle and the Board voted to approve the trade in of a swather for purchase of a new swather in the amount of $85,000 and purchase of a used 100-110 hp tractor in the amount of $40,000, for a total not to exceed $125,000. (B.O. 11-22)

8. Staff Reports
President Painter thanked staff for submitting their written reports. This information is very informative to the Board.

Dave Smith – Mr. Smith submitted a written report to the Board.

Mr. Haefke – Mr. Haefke reported on the new Operations Supervisor who started yesterday. Mr. Christean working with staff in training today and took a tour of the plant. Mr. Christean will be working with Mary Ellen Marque at the WWTP. GE representatives have been here for four weeks commissioning membranes and working with staff. The contractor finished putting in the cabinets at the operations center.

Susan Walde – Mrs. Walde gave an update of the Board application process and dates for future Board workshops.

Jenny Skrel – Ms. Skrel reported to the Board on the RD830 pump station relocation progress. She is working on the contract for the security system and when she receives it back from the attorney she will advertise tomorrow. She should have bids by the 25th of May.
Ms. Skrel reported she is still working on the relocation of the PG&E to the caretakers new location site on J. I.

Bob Henn – Hr. Henn reported he has been working with staff on the empty seat process, advising on teleconference call for general meeting seat, public hearing process, and the May 17th meeting for appointment process. Mr. Henn sated he will review the process of the ballot and will get back to the Board in one week on the review process.

Tom Williams - Mr. Williams reported to the Board that he has been working on the budget, specifically cattle and maintenance figures. He will be meeting with Michael Welty on Thursday and will get together with the finance committee regarding the capacity fee updates issue. Mr. Williams reported he has been working with Mr. Haefke on the new positions for the WWTP. He reported on the status of the RD830 grant progress. Discussion was held on the progress of the Dutch Slough project and should hear from DWD in the following few weeks. The Jersey Island staff have improved the headquarter levee; Mr. Williams commended the J.I. staff for a great job. The levee needed to be improved so the ISD pipe can be put in place for the discharge.
Mr. Williams reported on the CASA conference – The meeting with Joan Buchanan’s office was stellar; very impressed and professional. Spoke with her staff on the challenges for our industry and the issues and challenges with the State of California.
Member Huerta asked about the status of the windmill turban and Mr. Williams responded that the PSP has been submitted. Mr. Williams also reported he has not heard any update from Radback Energy.

9. Board Member Advisory Reports
Doug Hardcastle– Member Hardcastle reported that he went on a tour with Marc Haefke, Tom Williams and Joe Mueller of the new wastewater treatment plant and it was very informative and he was very impressed.

David Huerta – Member Huerta reported on attendance at the CASA conference reporting it was doom and gloom. He reported on taking advantage of social media for getting information out to the public.

10. Adjournment
Chairman Painter adjourned the regular meeting at 8:50 p.m. until Tuesday, June 7, 2011 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.