MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS OF THE
IRONHOUSE SANITARY DISTRICT
May 1, 2012
The
Ironhouse Sanitary District (ISD) Board of Directors met in regular session on
Tuesday, May 1, 2012.
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 Doug Hardcastle at 7:03 p.m.
Pledge of Allegiance: The pledge of allegiance was led by Susan Walde
Roll Call
Directors
present: David
Contreras, Doug Hardcastle, David Huerta, C. Chris Lauritzen, and Michael
Painter
Directors
absent: None
Staff/Consultants
present: Tom Williams, General Manager
Jenny Skrel, District Engineer
Joe Mueller, Environmental /
Process Compliance Manager
Susan Walde, District Secretary
Michael Welty, Utonomy, Inc.
Fred Etzel, District Counsel
Interested
Parties: Dave
Best, Shea Homes
Fiona
Jewel, Bethel Island
2.
Approval of the Agenda
M/S C. Lauritzen,
M. Painter and the Board voted to approve the agenda.
3.
Approval of the Minutes of the March
26, 2012 Special Workshop Meeting
Approval of the Minutes of the March
29, 2012 Special Workshop Meeting
Approval of the Minutes of the April
3, 2012 Regular Meeting
M/S D.
Contreras, C. Lauritzen and the Board voted to approve the minutes of the March
26, 2012 Special Workshop meeting, March 29, 2012 Special Workshop and the
April 3, 2012 Regular meeting of the Board.
Director Painter abstained from approving the minutes of April 3, 2012.
4. Public Comments – Communications from the public on
subjects not on the agenda.
There were no comments from the
public at this time.
5.
CONSENT CALENDAR
A.
Approval of Payment Order, Income/Expense Statement & Bank Balances.
Staff Report – M. Welty
Michael
Welty gave a report on the budget process.
He reported that the budget workshop will be held on May 8 and he has
been working on the template. Director
Huerta asked about the variances on the current budget and the percentages that
are considerably out of percentage. Mr.
Welty explained how the process will change for the year 12/13. Discussion was held on the professional
services account on the budget. Director
Contreras asked about the completion of the strategic plan and stated that if
we had the plan in place it would be easier to budget and give the Board
direction. Discussion was also held on
the process of coding of expenses and mangers management of the budget. Mr. Welty stated that the managers code the
invoices and they are paid by the accounting department by code. It was questioned that our lab costs are so
much higher than the amount in the budget.
Director Contreras asked that if our permit was issued in 2008, why was
there a problem budgeting and foreseeing the costs associated with the testing
requirements? Ms. Skrel stated that she
went through every invoice for the year to be able to establish a more
reasonable amount on the 12/13 FY budget.
Mr. Williams stated that there was a misjudgment in preparing for the
lab fees on the 11/12 FY budget.
Director Hardcastle brought to the attention that he and director
Lauritzen have asked for the lab work to be sent out on a RFP. Director Contreras asked can we consider
using a neighboring sanitary District’s lab.
Director Contreras asked Mr. Mueller how much of the lab testing will be
done at the ISD lab. Discussion was held
on the QA/QC requirements. Director
Lauritzen asked when the lab will be online.
Mr. Mueller stated that 90-95% of the equipment is here and anticipates
having the lab up and running in July.
B.
Approval of Posting &
Publishing of 2012/2013 Trunkline and Capacity Fee Adjustments (BO 12-11)
M/S D.
Huerta, C. Lauritzen, and the Board voted unanimously to approve the consent
calendar.
6. BUSINESS BEFORE THE BOARD
6A. PUBLIC
HEARING AND BOARD ACTION ON PROPOSED ADJUSTMENTS ON PLANT CAPACITY AND
TRUNKLINE CAPACITY FEES FOR FISCAL YEAR 2012/2013 (Adjustments to be considered
are the plant capacity fee - $71.70 per EDU increase; trunkline capacity fee - $13.80
per EDU increase).
Mr.
Williams stated that the proposed adjustments were calculated according to our
Ordinances. Director Hardcastle asked why we are using the construction cost
index:
Mr.
Williams answered that the trunkline and plant capacity fees are tied to the
Engineering News Record (ENR) construction cost index per the establishing
ordinance for both fees.
President
Hardcastle opened the public hearing at 7:45 p.m.
Mr.
Dave Best of Shea Homes thanked the Board for lowering the connection fees last
year. He recommended the Board consider
not raising the fees this year and looking forward. Director Lauritzen asked Mr. Best his
prediction on the next 6 – 12 months for new development. Mr. Best stated that Shea Homes is still in
the model of building as sold. They are
seeing an increase of interest this year.
They started 101 houses and will start another 5 in May of 2012.
President
Hardcastle closed the public hearing at 7:55 p.m.
M/S M.
Painter, D. Huerta voted on no change to the Trunkline and Plant Capacity Fees
and the fees would stay the same. (B.O.
12-12)
6B. CONSIDERATION
OF AN
ORDINANCE AND ORDER ADJUSTING TRUNKLINE CAPACITY, AND PLANT CAPACITY FEES (Ordinance 47 Order 12-12).
The Ordinance was not considered due to
no adjustment made to the Trunkline and Plant Capacity Fees.
6C. CONSIDERATION
TO SET THE HEARING FOR SEWER SERVICE CHARGE INCREASE FOR FISCAL YEAR
2012/2013. (Approve Notice to Set
Hearing).
Mr.
Williams reported that the District is setting the hearing for the Sewer
Service Charge for FY 2012/2013. He
reported that the initial payment of the loan for the new facility is due in
October of this year. Mr. Williams also
stated that with development at a low, we have fewer new connections to add to the
tax roll. Mr. Williams reviewed with the Board the components added to the
District with the new plant online that impact the rate. He stated that we will be having a budget
workshop on Tuesday May 8, 2012 to review the budget with the Board and hold the
actual hearing to set the rate on June 5, 2012.
Ms.
Fiona Jewel spoke on behalf of concerned citizens from the mobile home park in
Bethel Island. She stated that she and
many others are on a fixed income and very concerned that an increase would
impact their expenses. Director
Lauritzen gave Ms. Jewel an explanation that in 2005 the Board had to make a
decision based on the growth in the community and due to the limited capacity
of the old plant, to start the process of building the new Water Recycling
Facility we have today. He explained that
with the down-turn in the economy and the decrease of development, we do not
have the end users today that we anticipated at that time. He also
stated the District was able to bring a cost savings to the rate payer by
having an Engineer do the in-house design.
We were able to save by obtaining a low cost contractor and acquiring a
no interest loan from the State.
Director
Contreras asked the Board how they feel regarding supporting the proposed rate
of $650? He asked the Board what we have
done to cut costs in the District. The Board
held discussion on noticing and projections and proposed rate.
Mr.
Williams explained that with the Budget process change, the budget committee
did not get started early enough to make the final budget projections. Director Contreras addressed the finance
committee and asked if they recommend the proposed rate of $650. Directors Lauritzen and Hardcastle stated
they have not reviewed the budget to determine the rate.
Mr. Williams
stated that he and Mr. Welty showed a preliminary budget to the Finance
committee, but it was not as complete as it is now.
Director Contreras asked for support for all
standing committees to follow the Public Outreach committee’s noticing of meetings,
agendas and minutes. Director Contreras
asked about the Public Outreach Committee’s recommendations for the PG&E
rebate and are they considered on the Budget?
General
Manager Tom Williams stated that the June agenda would contain the
recommendation from the Public Outreach Committee to utilize the PG&E $280K
Rebate to benefit the Ratepayer by offset ($200K), $50K towards investigating
alternative energy, and the remainder to use for Public Outreach.
Director
Lauritzen stated the Board is frustrated with the budget process; and
specifically items that are over budget on the current FY budget report. He stated the board needs some lead time to
have the Budget in on a timely manner to review. He also stated the Board members are the
voice of the rate payers and they take their position responsibly. Director Lauritzen asked about the template
for the budget and if the transition to QuickBooks will give them the
information they are asking for. Mr.
Welty stated that the new FY format will be more defined.
Director
Huerta recommended that the board have a mid –year budget review and have the
opportunity to make adjustments accordingly.
Director
Contreras is again asking for descriptions on the budget review. He understands that the current accounting system
cannot provide them, but asked could they be typed in? He also stated that the timing of receiving
the Board packets to prepare for the Board meetings is critical and asked if
the Board could receive their packets in a timelier manner. Director Painter
stated that as a result of this discussion the Board does not feel they had an
opportunity to relate their concerns to the Board finance committee; the
process of Board committees needs to be revised and we need to work on our
procedures.
President
Hardcastle commended the Outreach committee for doing an outstanding job.
M/S M.
Painter, D. Hardcastle and the Board voted unanimously to accept the proposed sewer use
charge increase for purposes of the notice and set June 5, 2012 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.
6D. UPDATE ON SOLAR
POWER ALTERNATIVES AND CONSIDERATION AUTHORIZING STAFF TO DEVELOP AND SEND OUT
A REQUEST FOR PROPOSALS (RFP) WITH THE ASSISTANCE OF JSP AUTOMATION, NOT TO
EXCEED $5,000.
Ms.
Skrel reported that over the past several months ISD staff has been
investigating implementation of solar for the new Water Recycling
Facility. The Board held two solar
outreach meetings to allow input from ISD users on whether to pursue
solar. Staff recommends that the Board
allow ISD staff to proceed with preparing a Request for Proposals (RFP) to
implement a solar project and send an RFP out for solicitation. ISD staff also requests the ISD Board approve
$5,000 for ISD staff to hire JSP Automation to assist with preparation of the
RFP.
M/S C. Lauritzen, M. Painter and the
Board voted unanimously to authorize staff to proceed with preparing a Request
for Proposals (RFP) to implement a Solar Project and send an RFP out for
solicitation. The Board authorizes staff
to hire JSP Automation to assist with the preparation of the RFP in an amount not
to exceed $5,000. (B.O. 12-14)
6E. CONSIDERATION
OF AN ISD SPONSORSHIP FOR CITYHOOD CELEBRATION EVENT, JULY 7, 2012.
At the last meeting the Board directed
the Public Outreach committee to recommend a sponsorship for the Cityhood
Celebration Event on July 7, 2012. The
Outreach Committee recommends purchasing two sponsorships; one at the $1,000
level and one at the $500 level; for a total sponsorship of $1,500.
M/S M. Painter, D. Contreras and the
Board unanimously voted to accept the recommendation of the Outreach Committee
and purchase two sponsorships for the Oakley Cityhood Celebration Event on July
7, 2012; one at the $1,000 Bronze sponsorship package and one $500 Children
activities sponsorship package. (B.O.
12-15)
7.
Staff Reports
Fred
Etzel – Mr.
Etzel reported as part of his update of the Background Report for the Jersey
Island Land Use Plan, he is monitoring planning efforts in the Sacramento-San
Joaquin Delta, specifically as they may affect Jersey Island. He reported that currently various government
and non-government agencies are individually and collectively preparing nine
separate plans, and in some cases environmental impact reports, for the
Delta. Mr. Etzel noted where it is in
ISD’s interest to comment in writing on these plans and reports; he is
preparing comment letters and coordinating them with General Manager Tom
Williams. With the Manager’s
concurrence, Mr. Etzel will verbally brief the Board on these plans and reports
at the Board’s July meeting. Director
Painter asked Mr. Etzel if he would prepare for the Board’s reference a written
list of the plans and reports with pertinent information, such as scope, who
and when the plan will be adopted, etc.
Mr. Etzel replied it is his intent to do so.
Susan
Walde – Ms.
Walde gave a worker’s compensation update on Dave Smith, he is recovering well
and getting the medical assistance he needs.
Joe
Mueller – Mr.
Mueller reported to the Board with an update of the status on the notice of
violation from the State Regional Board.
He has been working with the Regional Board on the points of
violation. Staff will be submitting
three months of reports using the new pet tool.
The reporting system is working fine; the monthly reporting is very
complete. He reported that he has heard
back from the State with a positive response and the District won’t be fined.
Tom
Williams - Mr.
Williams reported that most of his time has been working on the budget. He reported that he has been working on the
five year plan to DWR to bulk purchase of mitigation credits at the mitigation
bank and RD830 be the lead agency. He
reported he is working on RD830 draft comments on the Marsh Creek enhancement
project.
He
reported that Patty Quickert of the Department of Water Resources came out to
the District yesterday to review the wetlands on the Marsh Creek site.
8.
Board Member Advisory Reports
Michael
Painter -Director
Painter reported on the Delta Science Center.
He reported that on Monday they gave a presentation at the Holy Rosary
School and will be going to the East Bay Regional soft opening event the second
week of June.
Chris
Lauritzen –
Director Lauritzen reported that he attended the City Council Strategic
Planning meeting. It was represented by 6 different stations; and the concept
was good. ISD was not part of the
workshop. Director Lauritzen recommended
the Outreach Committee pursue the opportunity to attend the event if it is held
in the future.
President
Hardcastle –
Director Hardcastle reported he attended the LAFCO meeting to represent ISD and
vote for Michael McGill as the Special District Representative. He also attended the Economic Summit held at
Oakley City Hall.
President
Hardcastle thanked the Public Outreach Committee for doing a great job for the
District.
Director Contreras –Director Contreras
reported on his attendance at the CSDA Governance Foundations meeting in
Sacramento. He reported that our Board/District is doing very well, but have
areas that need more work. He reported
that having a Strategic Plan in place was stressed throughout the training
program he and Director Huerta attended.
He also reported that in July CSDA is holding a General Manager
Leadership Summit and highly recommend the General Manager attend. Director Contreras thanked the Board for the
opportunity to attend the Leadership Conference.
9. Future
Agenda Items for Consideration
Recommendation of Outreach Committee.
10. Adjournment
President
Hardcastle adjourned the regular meeting at 10:40 p.m. until Tuesday, May 1,
2012 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary
District offices at 450 Walnut Meadows Drive, Oakley, California.
