OF THE BOARD OF DIRECTORS OF THE
IRONHOUSE SANITARY DISTRICT
November 6, 2012
The Ironhouse Sanitary
District (ISD) Board of Directors met in regular session on Tuesday, November 6,
2012.
The place of meeting was the
Ironhouse Sanitary District Office at 450 Walnut Meadows Drive, Oakley,
California and The New Tropicana Las Vegas, 3801 Las Vegas Blvd. South, Las
Vegas, NV.
1.
Call to
Order
The
meeting was called to order by President Hardcastle at 6:03 p.m. who announced
that the Board would go into the Closed Session shown as Item 2 on the Agenda.
2. Closed Session
Closed Session pursuant to Government code Section
54957:
Public Employee Performance Evaluation (General
Manager).
At
7:00 p.m., the Board reconvened in Open Session
The
President called for a 5 minute recess.
At
7:05 p.m. the Board reconvened.
3. Roll Call:
Directors present: David Contreras, Doug Hardcastle, David
Huerta, Chris Lauritzen and Michael Painter
Members
absent: None
Staff/Consultants present: Tom Williams, General Manager
Jennifer Skrel, District
Engineer
David Dal Porto, Reclamation, Levee & Ranch Superintendent
Marc Haefke,
Operations Superintendent
Susan Walde, District
Secretary
Bob Henn, District
Counsel
Michael
Welty, Financial Officer
Interested
parties present: Michael and Susan
Morgan, Oakley, CA
Mike Burkholder, Oakley, CA
Pledge of Allegiance: The pledge of allegiance was led
by President Hardcastle
4. Approval
of Agenda
M/S M. Painter and C. Lauritzen and the Board voted to
approve the agenda.
5. Report of Action Taken in Closed Session
There were no actions taken.
President Hardcastle reported the Board will be
meeting again in Special Session on November 27, 2012.
6. Approval of the minutes of the October 2,
2012 Regular Meeting
Approval of the minutes of the October 30,
2012 Special Meeting
M/S D. Contreras, C. Lauritzen and the Board voted to
approve the minutes of the October 2, 2012 Regular Meeting and the October 30,
2012 Special Meeting of the Board.
7. Public Comments – Communications from the public on subjects not on
the agenda.
There were no comments from the public.
8. Consent Calendar
A. Approval of
Payment Order, Report on Financial Position & Operating
Performance.
B. Consideration of 2013 District Holidays
Mr. Welty reported to the Board that in October the
District made its first debt payment of $2.9 million to the State of
California.
M/S D. Huerta, M. Painter and the Board voted
unanimously to approve the consent calendar.
9. Business Before the Board
9A. Consideration of Preliminary Fiscal Year End
June 30, 2012 Annual Financial Report with Independent Auditor’s Report from
Mann, Urrutia, Nelson, CPAs & Associates, LLP.
Mr. Welty introduced Mr. Justin Williams of Mann,
Urrutia, Nelson, CPA’s & Associates.
Mr. Justin Williams reported that he had met with the finance committee
and prepared a letter to the Board. Mr.
J. Williams reported on the management discussion and analysis and reported it
was a very clean and unqualified audit. He
reported that he did not have a management letter which is a good report and
the District controls are solid.
Director Lauritzen stated the finance committee meets with Mann,
Urrutia, Nelson, CPA’s & Assoc. and always have the ability to meet with or
place a phone call the auditors with any
questions.
President Hardcastle opened discussion to the floor
with no comments.
M/SD. Contreras, C. Lauritzen and the Board voted
unanimously to accept the financial
report prepared by Mann, Urrutia, Nelson, CPA’s and Associates for the year
ended June 30, 2012. (B.O. 12-35).
9B. Consideration
of Extending Audit Services Contract with Mann, Urrutia and Nelson CPA’s to
include Years 2013, 2014 and 2015, with an option to extend two additional
years.
Mr. Williams addressed the Board stating we have been
using Mann, Urrutia and Nelson CPA’s audit services for four years now. He contacted Mr. J. Williams for
consideration of a contract extension.
Staff’s recommendation to the Board is to approve the proposed contract
extension with Mann, Urrutia, Nelson CPA’s & Associates, LLP, and authorize
the General Manager to sign the contract extension.
M/S D. Hardcastle, C. Lauritzen and the Board voted
unanimously to approve the contract extension with an option to extend two
additional years and authorize the General Manager to sign the contract
extension. (BO 12-36).
9C. Consideration of Directors Benefits
Policies For Inclusion in ISD Bylaws.
Mr. Henn reviewed certain aspects of the proposed
Director Benefit policies. In the course
of the discussion, he explained the following points (among others), which the
Board informally approved by consensus.
1. The
dividing date for determining whether a Director is an Existing or New Director
is changed from November 1 to November 30, 2012. (Sec. 3.6.2).
2. The four
previously retired directors will continue to receive the same benefits as an
employee who retired when they retired.
(Sec. 3.6.9).
3. The
first year for purposes of a New Director’s cap on contributions will be the
New Director’s first full calendar year in office, subject to #2.b below. (Sec. 3.6.5.
4. The
District’s auditors have advised that the District’s Health Reimbursement
Arrangement (Sec. 3.6.10.b) is not taxable to the Director for California or
Federal income tax purposes, or for social security, Medicare and other
withholding purposes.
5. The
Director’s agreement with the District to pay his or her share of a health
benefit’s cost will include an agreement accepting and agreeing to be bound by
the District’s Director Benefits policies, Hartford 457(b) Plan and CalPers,
requirements, and applicable law.
After Mr. Henn completed his discussion, and after
inviting and hearing public comments, on motion by M. Painter, seconded by C.
Lauritzen, and unanimously carried, the Board modified proposed Section 3.6 of
the Bylaws as follows.
1. In
computing length of service for vesting purposes, if the actual time served is
75 days or less short of being an additional year, round up to the nearest
year. (Sec. 3.6.13).
2. a. If an Existing Director opts in or out of
a health benefit, the level of the District’s contribution in 2012 (or what the
District would have contributed if the health benefit were in effect during
2012) remains the permanent cap.
b. A New Director’s cap on the District’s
contribution is the first full calendar year of service, if he or she receives
the benefit during that year. If not,
the cap is the District’s contribution to the cost of the benefit in the first
year that the New Director receives the health benefit (Re: Sec. 3.6.7).
3. If the
service of an Existing Director is subsequently interrupted:
a. The
Existing Director remains an Existing Director if he was fully vested on
November 30, 2012.
b. If the Existing Director was not fully
vested on November 30, 2012, then he remains an Existing Director if the
interruption in service is two election cycles (four years ) or less, and
becomes a New Director if the interruption is longer than two election cycles
(four years). (Re: Sec. 3.6.8).
4. On
Retiring Director 457(b) Plan requirements (Sec. 3.6.12):
a. The amount in a Director’s 457(b) Plan
account when the Director commences CalPers medical benefits in retirement must
be sufficient to avoid a mandatory lump sum distribution by the 457(b) Plan
provider.
b. The General Manager can reduce or waive
the 457(b) Plan requirements of the Policies (Sec. 3.6.12.a through .c) to the
extent the requirement is not needed to satisfy 457(b) Plan or CalPers requirements.
The
Board then, on motion by M. Painter, seconded by C. Lauritzen, and unanimously
carried, adopted Resolution 12-13, with Section 3.6 revised to include the
changes adopted by the preceding motion.
9D. Consideration
of Resolution No. 12-10, 12-11, and 12-12, Resolutions Fixing the Employer’s
Contribution under the Public Employees’ Medical and Hospital Care Act.
Mr. Williams discussed with the Board that annually
the district is required to advise CalPers by Resolution, what the District contribution
will be toward medical coverage for employees, retirees and Directors. Mr. Henn recommends the Board accept the
second proposed alternative of up to the Bay Area Kaiser Basic Family
Rate. Director Lauritzen expressed his
concerns to freeze rates of employees as the Directors rates were frozen. He stated he is in favor of the total
compensation study to review our employees with other District. He would like to see the compensation
analysis study results back to the board by March and have the finance
committee start the budget process right after the first of the year.
President Hardcastle opened discussion to the floor
with no comments.
M/SM. Painter, D. Huerta, and The Board unanimously voted
to adopt Resolutions 12-10, 12-11 and
12-12 fixing the employer’s contribution under the Public Employees’ Medical
and Hospital Care Act as up to a maximum of the Bay area Kaiser Basic Family
Rate, for ISD employees, retirees and directors for calendar year 2013.
9E. Consideration
of Entering into a Contract for Hazardous Materials and Environmental Services for Demolition of Facilities
for Lot 1 on Jersey Island.
Ms. Skrel addressed the Board that with the purchase
of Lot 1 on Jersey Island in June 2011 a Phase 1 Environmental Site Assessment
was conducted. She proposed the proposal
from MECA Consulting, Inc., dba: Millennium Consulting Associates which
provides a Scope of work that will enable ISD to bid clean up, demolition and
removal of facilities on Lot 1 Jersey Island.
Staff recommends the Board authorize the General Manger to enter into an
agreement with MECA Consulting for Hazardous Materials and Environmental
Services for Demolition of Facilities for Lot 1 on Jersey Island for a cost not
to exceed $23,398.
M/S D. Contreras, M. Painter and the Board voted unanimously
to authorize the General Manager to enter into an agreement with MECA
Consulting, Inc., dba: Millennium consulting Associates for Hazardous materials
and Environmental Services for Demolition of Facilities for Lot 1 on Jersey
Island for a cost not to exceed $23,500.
(BO 12-37)
9F. Consideration
of Updating ISD’s Performance Management System (Personnel Evaluations, Forms,
Management Training), and Provide Other Supervisor Training.
Mr. Williams proposed as part of the ISD Strategic
Plan, one of the elements is Administration Management/Organizational
Health. Mr. Williams is proposing the
Board consider authorizing the General Manager to work with BHI Management
Consulting for Performance Management System Upgrades and Supervisor Training
to develop evaluation forms and hold three separate workshops for Supervisor
Training.
M/S D. Contreras, M. Painter and the Board voted unanimously
to authorize the General Manager to
enter into an agreement with BHI Management consulting for Performance
Management System Upgrades and Supervisor Training in an amount not to exceed
$13,900. (BO 12-38)
9G. Consideration
of Requesting Proposals to Update ISD’s Total Compensation Study (Last Updated
Jan. 2006).
Mr. Williams proposed as part of the ISD Strategic
Plan one of the elements is to conduct Job Description Review and a Total
Compensation Review. The total
compensation for each job position within the District should also be reviewed
and updated to reflect current market conditions, and where the board wishes to
position the District within the market to keep the District competitive enough
to attract and retain a talented, well qualified workforce.
Staff’s recommendation is to authorize the General
Manager to develop and send out a RFP to update the District’s 2006 Total
Compensation Study with KOFF and Associates.
M/S D. Hardcastle, M. Painter and the Board voted unanimously
to authorize the General Manger to develop a Request for Proposal (RFP) for a
Total Compensation Study and bring back to the Board for approval. (BO 12-39)
9H. Receive
Update on ISD Solar Power Investigation and Power Purchase Agreement
Negotiations.
Ms. Skrel gave an update to the Board on the ISD solar
Power Investigation and Power Purchase Agreement. Ms. Skrel stated that staff chose Ms. Sophie
Akins who works for the firm Best Best and Krieger Law, specializing in PPA’s
for public agencies. Ms. Adkins will have
a red-line version of the PPA completed by November 2 which ISD will review
then send onto RGS and their financing company for their review.
Real Goods solar is in the process of preparing a
Negative Declaration. The Negative
Declaration will include two siting alternatives for the project in Field
A. Wetland delineation will be completed
after the next significant rain. Solar
power is also being considered for the Administration and Maintenance Buildings
the solar panels will be mounted on car ports.
Ms. Skrel reported that subject to delays by PG&E operation should
begin in spring of 2013.
9I. Consideration
of Wi-Fi for Board Room and Conference Room.
Mr. Williams stated that Director Huerta had asked for
consideration of Wi-Fi for the Board room and the Conference room. Mr. Haefke contacted our IT Consultant and
reported that for a cost of approximately $300 we can set up we-fi for both
rooms using a wireless bridge.
M/S D. Huerta, M. Painter and the Board voted unanimously
to authorize staff to go forward to set up Wi-Fi in the conference room and the
Board Room. (BO 12-40)
10. Staff Reports
Marc Haefke
– Mr. Haefke expressed his own personal gratitude to the three board members;
Director Painter, Director Contreras and President Hardcastle to say thank
you.
He reported that the District hired an intern through
the Solano Western Water Program College program at no cost to the
District. The District advertised for
the position and had 15 calls. The intern receives credits toward their Grade 1
Certificate requirements. The college covers all workers compensation costs,
expense, etc. He reported that staff had
Western Water out last week regarding the diffusers which have been failing due
to faulty rings.
The District had a power blip two weeks ago which was
caused by a power spike from PG&E.
Staff are working with PG&E and had to manually reset some of the
equipment at the plant. Mr. Haefke also reported
that staff spent time cleaning up the plant for the Open House. They hired temporary labor to power wash and
help with other tasks.
Dave Dal Porto –
Mr. Dal Porto personally thanked President Hardcastle and the other Directors
for fostering such a great work environment for his staff and him to work at.
Jenny Skrel –
Ms. Skrel thanked the Board members for a great work environment. He reported that ISD was contacted by DSRSD
to participate in a coalition of 21 agencies to support a science fair. She proposed we participate at the amount of
recommend; $300 to $500, depending on number of agencies participating.
Bob Henn –
Mr. Henn joins all staff in thanking Director Hardcastle and the Board for
their time seated on the Board; it has been good working with them.
Tom Williams
– Mr. Williams reported to the Board on RD830.
The Raptor perches Eagle Scout project is completed with 7 stands by
blind point and 3 midway down Big Break.
RD830 worked with Fish and Game to determine the best locations.
He reported that he will be on vacation the week of
Thanksgiving. RD830 worked with the
State auditor for 4 days for a routine audit. On
October 15th RD830 received a visit from Dave Maraz and Gayle Newton
of the SWR regarding the Marsh Creek enhancement project. The application was submitted 2 years ago for
$8.9 million grant for up to 600K cubic feet of dirt for the Dutch Slough
habitat. RD830 would be working with and
purchasing the dirt from ISD.
RD830 submitted the 2011/2012 subventions packet I the
amount of $400,000 reimbursement from DWR.
RD830 put out to bid the Rock project for the levee
and received a bid from Dutra.
11. Board
Members Advisory Reports
Director Contreras – Director Contreras reported that he
attended the quarterly meeting of CCSDA.
He reported that Region 3 received the state award of Chapter of the
year. He reported that Stanley Caldwell
was nominated to the State CSDA. Mr.
Caldwell writes the newsletter for the local CCSDA chapter. He reported that the Kensington District
became the district of distinction and of 2500 districts only 17 have reached
this distinction. At the meeting, Dwight
Meadows reported on LAFCO and indicated that takes very seriously any effort to
dismantle a District, and will look very closely at the Hospital District.
He reported that he has been on conference calls to
help develop the agenda for the next CASA conference.
Director Contreras thanked staff for the work contributed
to preparing for a successful open house.
Director Painter – Director Painter reported that this
Saturday is the opening of Pheasant Season at Jersey Island and have received a
very large interest.
Director Hardcastle – Director Hardcastle extended
his gratitude to staff stating they did a nice job getting the Open House
set-up.
He reported that at the City Council meeting; The
PG&E pipe replacement was discussed.
The City is considering the old Central Mart building to be used for the
future use of the library which would
have implications to the rate payers.
Director Contreras personally thanked Director
Hardcastle and said it has been very nice working with him and wished him good
luck.
12. Future Agenda Items for Consideration
There were no future agenda items suggested for
consideration.
13. Adjournment
President Hardcastle
adjourned the regular meeting at 9:30 p.m. until Tuesday, December 4, 2012 at 7:00 p.m.
for the next regular meeting in the Ironhouse Sanitary District offices at 450
Walnut Meadows Drive, Oakley, California.
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