Minutes of the ISD April 3, 2012 Board Meeting

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

April 3, 2012

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, April 3, 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 7:00 p.m.

Pledge of Allegiance:  The pledge of allegiance was led by Director Contreras

Roll Call
Directors present:                   David Contreras, Doug Hardcastle, David Huerta,                  and C. Lauritzen

Directors absent:                    Michael Painter

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.
                                                 Bob Henn, District Counsel
   
Interested Parties:                   Jamie Duran, Solar Harmonics, Brentwood,
Bob Caldwell, Oakley
Rich O’Connell, Rohnert Park
Hugh Henderson, Fire Chief, ECC Fire Protection District
    Kevin Romick, President, ECC Fire Protection District      

2.   Approval of the Agenda
Mr. Williams asked the Board to consider moving Item 6H to be considered prior to item 6A.  M/S C. Lauritzen, D. Huerta and the Board voted to approve the agenda with the change of moving Item 6H.

3.   Approval of the Minutes of the March 6, 2012 Regular Meeting

M/S D. Contreras, C. Lauritzen and the Board voted to approve the minutes of the March 6, 2012 regular meeting of the Board.

4.   Public Comments – Communications from the public on subjects not on the agenda.
Mr. Kevin Romick, President of the ECC Fire Protection District and Mr. Hugh Henderson, Fire Chief gave a presentation to the ISD Board of Directors on the proposed Fire Protection District parcel tax.  They stated the significant revenue cuts the District has incurred over the last four years; and how District reserves have been nearly exhausted to maintain current levels of service.  Mr. Romick and Mr. Henderson presented how the proposed parcel tax would be utilized, as well as how no parcel tax would impact District services.  They presented a 10 year anticipated services model.  The proposed parcel tax will be on the June 2012 ballot as Measure S.  Mr. Henderson thanked the Board for the opportunity to give their presentation.

5.  CONSENT CALENDAR

A.        Approval of Payment Order, Income/Expense Statement & Bank Balances.
Staff Report – M. Welty
Director Contreras questioned the variance on professional services at 242%, lab testing at 134% and quarterly groundwater monitoring reports at 151%.  Staff will be looking into these amounts and getting back to the Board.  Mr. Welty reported that a large amount of professional services is for his firm.  Mr. Welty reported that he will be starting the budgeting process and is currently populating the numbers.  He will be scheduling a meeting with the finance committee.  The District will be converting over to QuickBooks Pro on July 1 and will start the transition in April or early May.

 B.  Acceptance of Agreement for Acquisition and Construction of Improvements – Oak Meadows Family Apartments – Phase 5, Corporate for Better Housing.
M/S C. Lauritzen, D. Contreras, and the Board voted unanimously to approve the consent calendar.


6.  BUSINESS BEFORE THE BOARD

6H. CONSIDERATION OF BECOMING A SPONSOR FOR THE CITYHOOD CELEBRATION EVENT TO BE HELD ON JULY 7, 2012.
Mr. Williams stated he received a letter from the Mayor of the City of Oakley asking for our support to sponsor the Oakley Cityhood Celebration on July 7, 2012. Mr. Williams stated that we participated in the event last year purchasing booth space.  President Hardcastle suggested that we use the funds allotted for the Almond Festival for this event.  Staff recommends sponsoring the event.  The item was tabled to the next month’s meeting for the Public Outreach committee to further review and be able to make a recommendation for level of sponsorship to the Board.


 6A.     CONSIDERATION OF RESTATED AND AMENDED LEASE FOR MOBILE HOME. RESOLUTION APPROVING AMENDED AND RESTATED LANDLEASE.  (Res. 12-06)
Mr. Williams reviewed the recommended changes made to the restated and amended lease for mobile home to Leo D. Moss, Sr.   Mr. Williams stated the changes were necessary to modify the lease to include the new premises and to include the new location on the map.

Director Huerta brought to the attention of the Board item #2 Premises – comparable to or better than Tenant’s present location and asked for it to be changed to Determined by owner.  Also #4. Rent.  Director Huerta asked the language “Tenant does not owe any rent for the Premises”, be changed to “No rent for the Premises is payable by Tenant”.  Director Lauritzen stated the Moss family has been very good tenants and caregivers to the District.
M/S C. Lauritzen, D. Hardcastle and the Board unanimously voted to adopt Resolution No. 12-06 and approve the Restated and Amended Lease for Mobile Home with the above stated changes, and authorize the Board President to sign the agreement once signed by the Caretaker and family.
 
          6B.      CONSIDERATION OF SETTING HEARING FOR TRUNKLINE AND PLANT CAPACITY FEE INCREASE FOR FISCAL YEAR 2012/2013.
Mr. Williams spoke about the proposed adjustments and how they were calculated according to our Ordinance No. 25.  He stated 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.  The ENR rate for June will also be considered and the lowest rate would be used for the fee adjustment.   He also stated that the connection fee would stay the same.  M/S D. Contreras, C. Lauritzen and the Board authorized the noticing of the proposed fees and set May 1, 2012 for the Public Hearing on the said adjustments.  The meeting shall be held at the time and place of the regular May meeting.  The Board directed District Secretary to post, publish and mail the required notices.  (B.O. 12-09).

 6C.  CONSIDERATION OF FURTHER INVESTIGATING AND/OR IMPLEMENTING RENEWABLE ENERGY ALTERNATIVES ON IRONHOUSE SANITARY DISTRICT PROPERTY
Mr. Williams reported that the District held two workshops on March 26, 2012 at the BIMID office on Bethel Island and on March 29, 2012 at the City of Oakley Council Chambers to have discussions with rate payer on implementing renewable energy alternatives on ISD property.
Mr. Williams presented in his staff report a detailed assumption of the 30 year cost of purchasing a 1 megawatt solar project.  Based on staff’s analysis to date, and assuming all of the assumptions used in the analysis occur, the project will break even on an annual cost basis in ten years and then begin show a positive annual return from year 10 forward.  He reported that the project only really starts to significantly save money for the ratepayer in year 19 and beyond as the debt service is paid.  While staff may see the long term benefit of a solar project, the upfront costs may not be easily accommodated.  The Agenda item was tabled until after review of Item 6D.
 
        6D.    REVIEW OF STATUS OF STATE REVOLVING FUND LOAN FOR THE CONSTRUCTION OF THE NEW WATER RECYCLING FACILITY, AND CONSIDERATION OF FUNDING ADDITIONAL FACILITY COSTS TO FULLY UTILIZE ISD’S STATE LOAN
Mr. Williams reported to the Board the value of the loan approval with the State Revolving Fund was up to $62,400,000, and the current balance management staff has set for the loan amount is $56,354,000.  Mr. Williams reviewed with the Board where we are on our loan and our reserves balances after we pay the contractor for items to come out of the expansion fund.  Discussion was held on the future water recycling facility expenses.  Staff addressed each item presented in the staff report, listed as future water recycling facility expenses, with the board.  Discussion was held on the payment structure of the loan and the operating funds and reserves needed to fulfill the payments.  Further discussion was held on the financial commitment of advancing the loan to its full potential to finance an alternative energy project.
Director Lauritzen stated his concerns about the rate we will need to establish in FY12/13 to fund the additional costs.  Mr. Williams cited the $620 rate proposed in the rate analysis prepared by Bartel Wells in June 2011.  Director Lauritzen also stated how important it is for the Board to get out and state the District’s reasons for raising our rates in a transparent fashion to the rate payers.
Mr. Williams reviewed with the Board the rate structure set with our Prop 218 rate structure and the savings to the rate payers the District has presented over the last several years.  He stated we have gradually raised our rates due to good planning.  President Hardcastle voiced his concerns on justifying the increase of 4.7% to the rate payers.
Mr. Rich O’Connell spoke as a member of the community stating he would like the District to further consider options for financing an alternative energy project and submit an RFP for consideration.  
Based on Discussion, Staff recommends the Board authorize staff to request from the state an additional amount that would net the District two million dollars, and use the money to pay for more of the treatment facility costs.
M/S D. Contreras, C. Lauritzen and the Board voted unanimously to request from the State Revolving Fund loan an additional amount that would net the District two million dollars and authorize the General Manager to file the appropriate paperwork.
6C.  CONSIDERATION OF FURTHER INVESTIGATING AND/OR IMPLEMENTING RENEWABLE ENERGY ALTERNATIVES ON IRONHOUSE SANITARY DISTRICT PROPERTY (Continued)
Staff’s recommendation to the Board is to authorize staff to further investigate alternative energy opportunities and report back to the Board each month on staff’s progress, findings and or recommendations.
M/S  D. Contreras, C. Lauritzen and the Board voted unanimously to authorize staff to further investigate alternative energy opportunities and report back to the Board each month on Staff’s progress, findings and/or recommendations.

 6E.     CONSIDERATION OF RESOLUTION FOR ACCEPTANCE OF WWTP.      
Ms. Skrel reported to the Board that the contractor has requested ISD provide a Conditional Acceptance and release of retention for the WWTP project.  The performance of the new plant has exceeded expectations and is currently meeting all requirements.  Staff recommends the Board adopt Resolution 12-07 providing for conditional acceptance of and release of retention from Project No. C-06-5046-110, Wastewater Treatment Plant Expansion Project.
M/S C. Lauritzen, D. Huerta and the Board voted unanimously to adopt Resolution No. 12-07 Resolution of the board of Directors of Ironhouse Sanitary District Providing for
Conditional Acceptance of and Release of Retention from Project No. C-06-5046-110.

6F. CONSIDERATION OF MIXING ZONE VALIDATION STUDY PLAN
Ms. Skrel reported to the Board that both the NPDES permit and the Biological Opinion from the National Marine Fisheries Service contain provisions requiring studies to validate the modeling performed by Jones and Stokes and included in the Draft Environmental Impact Report for the Wastewater Treatment Plant Expansion Project.
M/S D. Contreras, C. Lauritzen and the Board voted unanimously to authorize the General Manager to enter into an agreement with Robertson-Bryan, Inc to prepare a Mixing Zone Validation Study Plan for an amount not to exceed $26,673.  (B.O. 12-10)

6G. CONSIDERATION AND ADOPTION OF RESOLUTION 12-08, CALLING THE GENERAL DISTRICT ELECTION ON NOVEMBER 6, 2012 FOR THE ELECTION OF DIRECTORS.  (Res. 12-08)
Mrs. Walde advised the Board that this resolution is a requirement of the elections code.  The resolution includes a requirement for the Board to establish the estimated cost for a candidate statement.  Mrs. Walde recommended the Board determine the cost for a candidate statement is the recommended amount given by the elections department of $530.  M/S C. Lauritzen, D. Huerta and the Board voted to adopt Resolution No. 12-08 for the purpose of calling the general district election on November 6, 2012 for the election of Directors.  (Res. 12-08)

6I. CONSIDERATION OF CASA SPRING CONFERENCE April 25 – 27, 2012.
President Hardcastle stated he would be attending the CASA spring conference along with General Manager Tom Williams.

7.         Staff Reports

Tom Williams - Mr. Williams reported on an update from Ms. Whyte that we have an additional 10 units in the last 3 days for an update of units connecting this year now totaling 73.
He reported he has been working with staff on solar opportunities and the presentation for the two workshops with the rate papers.  He also has been working with staff on reviewing of the state revolving fund loan and the potential borrowing capacity.
He has been also working on the Marsh Creek restoration project.     Mr. Williams reported on his work on Reclamation District 830 (RD-830), working on the bulk purchase of mitigation credits at the mitigation bank and expects to have all agreements signed by June 30.  RD-830 recently received DWR approval of their scope of work for their upcoming $2.3 million levee improvement project.  They submitted a request for the balance of funds for the levee work and a request for $2 million for a new HMP improvement project through DWR.  The specific area for the proposed HMP project is from headquarters to the Ferry slip.  RD-830 will have an Eagle Scout completing his project making raptor perches to place on the levee on Jersey Island.  He is the son of Kevin Tillis.

Joe Mueller – Mr. Mueller reported to the Board that the District received a notice of violation from the State Regional Board.  He has been working with the Regional Board on the points of violation.  One of the complications was ISD’s electronic reporting system and he is working with the state to have the system modified.  Mr. Mueller was continually working with the state regulators and explained we initially had trouble retrieving stored data in the SCADA system and are now getting the data from the system.  Staff will be preparing an itemized and detailed response to the State Board on April 25, 2012.  Also, the analyzer equipment has been down but the issue has been resolved.  Mr. Mueller stated that we are 99.9% in compliance.  Mr. Haefke took a class two years ago to submit the electronic reports required by the state.  Unfortunately, because we had to complete our class 2 years ahead of being operational with our new facility, we did not receive the 3 months of operational testing.  This unique situation was recognized by state staff and State staff was to develop a separate protocol for us.  Unfortunately, the staff person we were working with has moved on.  
Director Contreras noted that with his experience, he stated the importance of submitting accurate reports to the state.
Mr. Mueller reported that he continues working with state staff and he has submitted a request for the official testing period of 3 months to begin once all state forms have been corrected by state staff.  This should happen soon.

Bob Henn – No item to report on at this time.

8.         Board Member Advisory Reports

President Hardcastle – Director Hardcastle reported he attended the City Council meeting and they are discussing contracts with development in the downtown center.  

 Director Contreras –Director Contreras reported on his attendance at the CSDA Governance Foundations meeting in Sacramento. He reported on an example of other Board members in attendance having opposing opinions and how it stressed the importance of the Board working together.    He reported on how important implementing a strategic plan is for the District.  Mr. Contreras thanked Mr. Williams and staff for all their time and effort spent on the solar workshops and felt it was time well spent to reach out to the community.

Director Huerta – Director Huerta reported on his attendance at the CSDA Governance Foundation training and spoke of the importance of unity of purpose.  He reported on the importance of a positive Board culture.

Director Lauritzen – Director Lauritzen submitted written reports to the Board on the Delta Protection commission Board and the State Senate Hearing on the Bay Delta conservation Plan and the Delta Plan.

9.      Future Agenda Items for Consideration
No additional items given for future consideration.

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.