Friday, May 10, 2013

Minutes of the ISD Board Meeting January 8, 2013



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

January 8, 2013

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, January 8, 2013.

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

1.           Call to Order
Pledge of Allegiance led by Doug Scheer

The meeting was called to order by President Lauritzen at 7:00 p.m.

2.       Swearing in of Newly Elected board Members and Introduction of New Board Member Doug Scheer
The District Secretary held a ceremony swearing in the newly elected Board members David Contreras, Michael Painter and Doug Scheer, who accepted the oath of office.

3.       Roll Call:

Directors present:                David Contreras, David Huerta, Chris Lauritzen, Michael Painter and Doug Scheer
         
          Members absent:                None

Staff/Consultants present:     Tom Williams, General Manager
Jennifer Skrel, District Engineer
                                                Joe Mueller, Environmental Compliance Officer
                                                Susan Walde, District Secretary
                                                Fred Etzel, District Counsel
                                                Michael Welty, Financial Officer

          Interested Parties:               None

4.       Approval of Agenda

M/S M. Painter and D. Huerta and the Board voted to approve the agenda with the amendment of the addition of the pledge of allegiance.

5.       Approval of the minutes of the December 4, 2012 Regular Meeting

M/S D. Huerta, C. Lauritzen and the Board voted with the correction of “scrapper” to “scraper” under 9C, to approve the minutes of the December 4, 2012 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.

7.       Consent Calendar
A.   Approval of Payment Order, Report on Financial Position & Operating
     Performance.
Director Huerta directed a question for Mr. Welty regarding solid waste allocation of solid waste in legal and utilities under garbage and collection services.  Mr. Williams explained the different allocations; legal is budgeted for any possible legal for franchise agreement and the utilities is for the solid waste off the screens at the water recycling facility.
Mr. Welty reported the district received its first installment of annual assessment charges from Contra Costa County in the amount of $4.9 million (approximately 55% of ISD’s total assessment from the County).  Tomorrow Mr. Williams and Mr. Welty will be having a kick off meeting with senior management to work on the budget process and forecast forward two years.  He reported he is hoping to have a formal draft of the budget complete by the end of March 2013.  He reviewed with the Board the changes to the budget process.  The Board asked for the staff payroll time to be categorized by department. 
Director Lauritzen asked about the need for a two year budget and Mr. Welty stated it would help to forecast the future rate and reserve account maintenance.

M/S D. Huerta, M. Painter and the Board voted unanimously to approve the consent calendar.

8.       Business Before the Board

8A.     Public Hearing for Consideration of Power Purchase Agreement (PPA) With Real Goods Solar (RGS).
At 7:15 p.m. President Lauritzen opened the Public Hearing to consider the PPA with Real Goods solar.  He asked the Board and the Public to use this opportunity for comments on the proposed PPA.  Mr. Williams stated that staff would like to recommend continuing the Public Hearing to the February 5, 2013 meeting. 
Ms. Skrel stated that the CEQA document was approximately 90% complete and, being so close to completion, was the key reason for continuing the Public Hearing to the February 5, 2013 meeting. 
Discussion was held on the CEQA and mitigated negative declaration process and policy.  President Lauritzen asked the Board if they would like to hold a public workshop for review of the PPA proposal for the solar project.  The workshop date was set for January 23, 2013 at 6:00 p.m. to discuss the PPA package.  Ms. Skrel will make the CEQA documents available on Friday January 11, 2013 to all Board members and interested parties.

          8B.     Consideration of Designated Signers on Depositories, Public Agency Resolution Funds Transfer on Oral Instructions, Bank Depositor Agreement and Contract for Deposit of Monies.  Required due to the change in status of authorized signers.)  BO 13-01
Mrs. Walde proposed to the Board an update to the designated signers on the Bank account including removing prior Director Doug Hardcastle, and adding Director Doug Scheer as authorized signers.  M/S D. Contreras, D. Huerta, and the Board voted unanimously to approve B. O. 13-01 updating signers on the Bank account to remove prior member Doug Hardcastle and add Director Doug Scheer.  (B.O. 13-01)

8C.     Adopt Resolution 13-01 Amending Section 3.6 of the ISD Bylaws, Previously Adopted and Effective on November 6, 2012, and Approve Attached Form of Director Health Benefits Agreement.
Mr. Williams reviewed with the Board the revisions to the Director benefits polices approved at the November 6,, 2012 Board meeting and recommended the Board approve Resolution No.13-01 amending Section 3.6 of the ISD Bylaws and approve the attached Form of Director Health Benefits Agreement. 
Discussion was held to revise the Bylaws and approve the form of agreement and have the District Secretary prepare a separation package for each Board member to sign.

M/S M. Painter, D. Huerta and the Board voted unanimously to adopt Resolution No. 13-01 approving revisions to the Director Benefits Policies and approve the attached form, Director Health Benefits Agreement, an agreement for a Director’s payment of his share of the costs of his benefits. 

          8D.     Consideration of Mid-Year Budget Update and Proposed Revisions.
Mr. Williams reported to the Board that he and Mr. Welty met with senior management to review the mid-year budget figures, through the month of November 2012.  He reported that the finance committee met to review the process and proposed staff recommendations.  Mr. Welty, Finance Director, gave an overview of the revenue, income and expense highlights, proposed recommendations:

Revenue highlights:
The district had budgeted for 100 new connections and, as of December 2012, have 130 new connections.  Staff recommends revising the new connection estimate to 140, which results in a $159,000 overall increase in connection revenue.  The mineral rights income is expected to be $8,000 less than budgeted, and a misc. income is anticipated to be $21,000 more than budgeted (resulting primarily from a onetime dividend payment from our insurance company of $19,500). In addition, staff estimates an expected increase in cattle revenue of $43,000. The net result on the budget for revenue is an increase of $269,560.

Expense highlights:  
Various expense items (both increases in expense and decreases in expense) were discussed.  The net result of revisions to the expense portion of the budget is an increase in expenses of approximately $120,000.   The key highlight included an increase in Professional Services budget of $112,050 ($60,000 in laboratory groundwater testing and $42,000 in Legal Services being the major contributors).

Staff’s recommendation for the mid-year budget revisions looks positive with an anticipated net increase in revenue over expenses of approximately $184,000.

M/S D. Huerta, D. Scheer and the Board voted in favor to accept the mid-year budget review and proposed budget revisions, with Director D. Contreras opposed.

          8E.     Consideration of ISD Board Committee Assignments for Calendar Year 2013
President Lauritzen explained that with the succession of the Board, he recommended we prepare the Board to become President.  His recommendation would be for the Vice President to hold a seat on the finance committee to be prepared for his position as President. He recommended the order of Committee assignment to prepare the board for the future succession.  He also stated that standing committee meetings have to be noticed to comply with the Brown Act.    The committees were assigned by the President as follows:
·         Finance – (quarterly)                                                 Huerta and Contreras
·         Maintenance/Collection Facilities – (quarterly)                 Scheer and Painter
·         Recycled Water Facility/Operations – (quarterly)              Scheer and Lauritzen
·         Jersey Island Management/Operations - (quarterly) Lauritzen and Painter
·         Public Outreach – (monthly)                                        Huerta and Contreras

Board appointed designated for attendance/participation:
·         LAFCO - (monthly a.m.)                                                     Lauritzen/Contreras
·         Special District Local Chapter – (quarterly a.m. lunch mtg.)         Contreras/Lauritzen
·         City Liaison – (semi-monthly, evening)                                    Scheer/Huerta
·         East County Water Management Governing Board (twice yr., lunch mtg.)Contreras/Huerta
·         BIMID – (monthly)                                                             Painter/Lauritzen
·         BIMAC – (monthly)                                                            Painter/Lauritzen
·         Delta Science Center – (bi-monthly)                                        Painter/Scheer

          8F.     Authorize the General Manager to Negotiate, and Enter into Contract, with Koff & Associates to Perform Total Compensation Study Update for ISD, not to Exceed $15,000.
Mr. Williams reported that he has been authorized to develop and send out an RFP to perform an update to the ISD’s 2006 Total Compensation Study.  Due to our unique district and the base line previously prepared by Koff and Associates, he recommend’s the Board authorize the General Manager to enter into a contract with Koff and Associates to perform the Total Compensation Study update for ISD in an amount not to exceed $15,000 to be completed prior to holding the next budget workshop in May 2013. 
M/S M. Painter, D. Huerta and the Board voted unanimously to authorize the General Manager to enter into a contact with Koff and Associates to perform a Total Compensation Study Update for ISD at a cost not to exceed $15,000. 

9.       Staff Reports

Joe Mueller – Mr. Mueller reported to the Board that staff and JSP are fine tuning the SCADA controls fixing short comings that the previous storms revealed  On December 19th the District had a power failure and the server went down, staff was able to recover all the data from the Scada servers.

Fred Etzel – Mr. Etzel reported that in November the Delta Stewardship Council published the final draft of the Delta Plan.  District Council had reviewed and prepared response letters on behalf of ISD and Reclamation District 830.  He reported that the Bay Delta Conservation Plan will be out this spring for review.  He will draft documents for ISD and RD830.

Jenny Skrel – Ms. Skrel reported to the Board that she met with the Regional Board two weeks ago and ISD will be getting its permit.  She reported that, per our State permit, the required sampling for pharmaceuticals has been accomplished and submitted to the State. 

Director Lauritzen asked staff to set a date for the annual staff luncheon in December and hold a combined safety meeting and luncheon.  Discussion was held and decided by the general manager that Wednesday is the best day for staff attendance.  

Tom Williams – Mr. Williams reported to the Board on RD830.  He received the 100 acre enhancement project final draft of funding agreement.  Prior to RD830 meeting to consider adopting and signing the agreement, RD830 will work with ISD to hold a workshop on the proposal, and will invite representatives from the Department of Water Resources to attend and participate.  RD830 will need to enter into an agreement with ISD for the purchase of the soil by RD830 and for ISD providing a conservation easement over the 100 acre project area. 

The rock placement on Jersey Island has been completed by Dutra and Sons.  The rock placement occurred on about 12,000 feet of Taylor Slough and about 5,000 feet on Dutch Slough near Blind Point.  Dutra placed approximately 10,000 tons of rock on the levee and RD830 has about $30,000 invested in the rock protection project.

Mr. Williams reported that he will be on vacation starting on Thursday and returning after the CASA conference on Tuesday January 22nd.  The evening of Jan. 22 he will be giving a presentation to the City of Oakley at their City Council meeting.

 10.    Board Members Advisory Reports

Director Painter – Director Painter reported that the Delta Science Center has distributed 2013 calendars to local students from the Cottonwood area to Martinez.  On March 22, 2013 they will be participating in the National Water Sampling day and will be coordinating with the East Bay Regional Parks District.  U.C. Davis will be holding an upcoming career day at Freedom High School.

Director Contreras – Director Contreras reported that the newsletter went out and the outreach committee has had many compliments. He reported on the grease pickup event hosted at ISD.  There was a very good turnout with approximately 35 people participating and approx. 190 gallons of grease was collected.  Director Contreras thanked Director Lauritzen for all the hard work in preparing for and facilitating the Christmas party. 

11.     Future Agenda Items for Consideration  
There were no future agenda items suggested for consideration.

12.     Adjournment
President Lauritzen adjourned the regular meeting at 9:58 p.m. until Tuesday, February 5, 2013 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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