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.