Wednesday, June 5, 2013

Minutes of the May 7, 2013 Regular Board Meeting



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

May 7, 2013

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, May 7, 2013.

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 Lauritzen at 7:00 p.m.

2.       Pledge of Allegiance led by Randy Pope

          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
                                                Susan Walde, District Secretary
                                                Fred Etzel, District Counsel
                                                Michael Welty, Financial Officer
                                                Joe Mueller, Environmental/Process Compliance Manager

          Interested Parties:               Susan Morgan, Oakley
                                                Randy Pope, Oakley City Council
                                                Dave Best, Shea Homes
3.       Approval of Agenda

M/S M. Painter, D. Huerta and the Board voted to approve the agenda.

4.       Approval of the Minutes of the April 2, 2013 Regular Meeting.
Mrs. Walde noted corrected minutes available for the Board to review.  The minutes of the April 2, 2013 meeting were tabled to the June 2013 regular meeting.

5.       Public Comments – Communications from the public on subjects not on the agenda. 
There were no comments from the public at this time.  

6.       Consent Calendar
          A.      Approval of Payment Order, Report on Financial Position & Operating
     Performance.

          B.      Approval of Posting & Publishing of 2013/2014 Trunkline and Capacity Fee Adjustments (BO 13-09.

          C.      Approval of Posting & Publishing of Statewide Community Infrastructure Program Public Hearing (BO 13-10).

          Staff Report – Michael Welty – Utonomy
Mr. Welty reported that the finance committee met on April 3rd. to review the FY13/14 budget.  The Board will be holding a budget workshop on May 16th at 6:00 p.m. Mr. Welty gave a copy of the draft budget to the Board for their review before the budget workshop. 
President Lauritzen asked for comments from the finance committee.

David Contreras and David Huerta (finance committee) reported they reviewed and commented on three renditions of the budget.  The 4th edition was just handed out for Board review.  The committee discussed having cattle revenue included with “operating” revenue vs. being included as “other” revenue later in the budget.  Mr. Welty indicated he could make that change but, since he has structured the budget to parallel the annual audit report, he recommended not moving the “other revenue” to the front of the budget.  The committee is proposing no rate increase for FY 13/14 and the draft budget reflects keeping the rate flat.  Staff indicated some recent changes were included to clarify permitting costs and coalition costs, as well as addressing ISD laboratory budget numbers to reflect the recent decision by the Regional Water Quality Control Board (RWQCB) to reduce the amount of land based sampling required by ISD.  The committee is waiting for the fiscal review of certifying and operating the in-house ISD laboratory at a higher level with less outside laboratory reliance vs. certifying the ISD lab at a lower level and continuing to utilize an outside laboratory for most of ISD’s sampling analysis.     

Mr. Mueller reported to the Board on the update of the plans for the ISD lab, reviewing the initial concept for the lab during construction, to the new concept now that the RWQCB has reduced sampling needs. 

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


7.       Business Before the Board

7A.     Public Hearing and Board Action on Proposed Adjustments on Plant Capacity and Trunkline Capacity Fees for Fiscal Year 2013/2014.
Mr. Williams stated that this is our annual review of fees.  There was no change in the fee for the Plant Capacity and Trunkline Capacity Fees.  There was no change in the March Engineering News Record cost of construction Index for the San Francisco Bay Area.  He stated that the amount posted in June 2013 may be higher than the March 2013 posting and, the Board may wish to reconsider the TLC and PC fees at that time.  He also stated that the discounted rate that was adopted in September of 2011 will expire in September 2013 and will reset to the September 2011 rate as no construction cost index changes have been made since that time.  If the Board wishes, it may address the fee discount program, and possible adjustment and/or extension, prior to the September 30, 2013 expiration date. 

Dave Best of Shea Homes addressed that Board and stated that Diablo Water, City of Oakley, Contra Costa Water and the School Board met to discuss development fees and future lot build outs.  He encouraged the Board consider continuing the fee discounts.

At 7:22 p.m. President Lauritzen opened the public hearing.
Hearing no additional comments from those in attendance.
At 7:23 p.m. President Lauritzen closed the public hearing.

M/S M. Painter, D. Huerta and the Board voted unanimously on no change to the Trunkline and Plant Capacity Fees and the fees would stay the same.

          7B.   Consideration of An Ordinance and Order Adjusting Trunkline Capacity, and Plant Capacity Fees (Ordinance No. 50 and Order No. 13-11).
Mr. Williams stated that the purpose of Ordinance No. 50 and Order No. 13-11 is to state what the FY 2013/2014 rate for Trunkline and Plant Capacity Fees will be and, as adopted by the Board in Item 7A, the Plant Capacity and Trunkline Capacity fees will remain unchanged at this time.    

M/S M. Painter, D. Huerta and the Board voted unanimously to adopt Ordinance No. 50 and Order No. 13-11 keeping the discounted rate for Trunkline and Plant Capacity fees unchanged at this time.

          7C.     Public Hearing for Entering into Participation in The Statewide Community Infrastructure Program (“SCIP”), which is sponsored by the California Statewide Communities Development Authority (“CACDA”). 
Ms. Skrel stated that the District was approached in 2011 to become a participant in the Statewide Community Infrastructure Program (SCIP).  At the time both the City of Oakley and Diablo Water District did join.  In 2013, ISD was notified by Brookfield Homes that they would like to utilize SCIP for development of homes in the East Cypress Corridor.
 
Dave Best of Shea Homes commented that it would be beneficial to them for the District to participate in the program.

Director Contreras asked District Council if he is familiar with the program.  Mr. Etzel stated that he has been involved with the program for years and is delighted to see the developers interested in this program.  He commented that the interest shows strength in the economy.

Director Scheer asked if there would be a cost to the District to enroll in the program.  Ms. Skrel stated there would be no cost or fees to the District.

At 7:32 p.m. President Lauritzen opened the public hearing.
Hearing no comments from the public or those in attendance;
At 7:33 President Lauritzen closed the public hearing.

M/S D. Huerta, D. Contreras and the Board voted unanimously to adopt Resolution 13-03, authorizing the District to join the Statewide Community Infrastructure Program (SCIP); Authorizing the California Statewide Communities Development Authority to Accept Application from Property Owners, Conduct Special Assessment Proceedings and Levy Assessments within the Territory of the Ironhouse Sanitary District; Approving Form of Acquisition Agreement for use when applicable; and authorize Related Actions; and authorize the General Manager to become a participating member agency in the SCIP. 

          7D.     Consideration to Set the Hearing for Sewer Service Charge Increase for Fiscal Year 2013/2014.  (Approve Notice to Set Hearing).
Mr. Williams reported that the District is setting the hearing for the Sewer Service charge for FY 2013/2014.  The Finance Committee is working diligently with staff to keep the rate flat. 

M/S M. Painter, C. Lauritzen and the Board voted unanimously at accept the proposed sewer use charge for purposes of the notice and set June 4, 2013 for the public hearing on the said rate adjustment.  The hearing shall be held at the time and place of the regular June 4th meeting.  The District Secretary was directed to post and publish the required notices.

          7E.     Central Valley Regional Water Quality Control Board Issuance of an Administrative Civil Liability Complaint.
Ms. Skrel reported to the Board that on October 20, 2011 the new Water Recycling Facility became fully operational when discharge to the San Joaquin river commenced. Staff had start-ups issues related to reporting data extraction that needed to be worked out.  Mr. Mueller reported the data extraction issues to the state at the time (in 2011) and advised the District was working to correct the issue.  Staff worked diligently at the time with the District’s programming consultant, JSP, to resolve the data extraction issue but, the information was not extracted in time to file the monthly report.  The initial problem was with historical data not available from the SCADA computer.  Ms. Skrel reported that she has been working with Wendy Wyels recently, Supervisor of the Compliance and Enforcement Section of the Central Valley Regional Water Quality Control Board (RWQCB), and Ms. Wyles is recommending that Ironhouse pay the $3,000 Administrative Civil Liability and waive its right to a hearing.

Per the ISD Board’s request, Ms. Skrel advised that ISD can apply part of the fine toward a Supplemental Environmental Project (SEP).  However, Ms. Skrel advised the State, due to the minimal nature of the fine, recommended paying the fine as ISD would end up paying more for the SEP than it would if it simply paid the fine.  Ms. Skrel also indicated she would be willing to prepare the request to the RWQCB indicating ISD wanted to select the SEP option.
When asked about the recent letter from the RWQCB, and the events leading to the late reporting, Ms. Skrel stated that during the verbal and written communications in late 2011 between the RWQCB staff and Mr. Mueller from ISD, a misinterpretation of reporting criteria occurred.  However, Mr. Mueller indicated ISD fully complied with reporting criteria in submitting the report. 
Director Contreras asked staff to refer to what is stated in the permit from the State Water Board and reminded staff that even with verbal communication with the Water Board, it is always important to submit an email or other written form of communications with the State to create a record. 
Director Contreras asked staff to make the Board of Directors aware of all previous fines and SSO’s the District has had over the last 5 years.  Mr. Mueller stated the District has had minor corrected violations and he writes an action plan and submits to the Board for review.
Director Contreras would like to see what other violations the District has and would like to review the SSO’s. 
Director Contreras asked Staff to consider requesting the Water Board staff provide options for bundling all SSO’s and violations over the last five years together into one fine that can address all issues.   
Discussion was held on potential options the District has to submit for the Administrative Civil Liability. 
Fred Etzel asked the Board to consider the expertise of Director Contreras and have a special meeting to review the action. 
Director Contreras stated he does understand the time and expense of having staff prepare a Supplemental Environmental Project. He would like to have staff make the ISD Board aware of violations present and let the Board determine at the budget workshop meeting the action to be taken. 
Director Painter stated that Delta Science Center would be happy to partner in a SEP.
Ms. Skrel reviewed with the Board the two options available to the District for resolving the fine.  They are 1) pay the fine or 2) pay half of the fine ($1,500) to the Regional Board and pay the other $1,500 to an entity for a SEP.  Ms. Skrel indicated that the Water Board must allow ISD’s request for an SEP.
M/S M. Painter, D. Huerta and the Board voted unanimously to direct staff to contact the RWQCB and pursue the option of paying a partial fine of $1,500 and applying $1,500 for a Supplemental Environmental Project. Set a subcommittee of Director Painter and Director Contreras to work with staff to determine a project and report back to the Board at the budget workshop on May 16, 2013.

          7F.     Consideration of an ISD Sponsorship for Cityhood Celebration Event, July 6, 2013.
Mr. Williams reported that the City of Oakley is annually holding the Cityhood Celebration event on July 6, 2013.  ISD has participated in the event over the last three years.  The Outreach committee recommends we participate at a Children activities sponsorship package: $500 with an additional 10’ x 10’ event booth at $30.
M/S M. Painter, D. Huerta and the Board voted unanimously to authorize ISD sponsorship at the $500 level with an additional 10’ x 10’ event booth.

          7G.     Ratify Award of Paving Contract on Bethel Island in the amount of $20,513.
Ms. Skrel stated that the bids came in for the Harbor Road paving project and were received on April 9, 2013. The project was authorized at a cost not to exceed $15,000 at the April Board meeting.  All the bids received were above the authorized amount.  Due to time restraints, the General Manager awarded the project to Grade Tec for a cost of $19,536.  Staff is asking the Board to ratify the award to Grade Tec in the amount of $19,536 and award a 5 percent change order contingency for the project for an authorized amount of $20,513.
M/S D. Scheer, D. Huerta and the Board voted unanimously to ratify the General Manager’s decision to award the Harbor Road paving project to Grade Tec in the amount of $19,536 and authorize a 5 percent change order contingency bringing the authorized amount not to exceed $20,513. 

          7H.     Consideration of Water Recycling Facility Improvement Project (For a cost not to exceed $200,000).
Ms. Skrel stated that as part of the 2012/13 budget process a list of improvements for the WRF were considered.  The projects are; modify piping to improve drum screen operations; conversion of backpulse tank to an equalization tank to improve UV disinfection metering accuracy and operations and paving improvements.  She explained that more work is involved to reroute flow around the backpulse tank while working in the backpulse tank is in progress; additional paving has been requested by staff and the cost of asphalt has increased.
Mr. Mueller explained to the Board the process of improvements needed to the equalization tank.  Director Huerta asked if the modifications would void the warranties and Ms. Skrel noted they would not. 
M/S M. Painter, D. Huerta and the Board voted to authorize the General Manager to advertise to bid the Water Recycling Facility (WRF) Improvement Project and sign an agreement with the lowest responsible, responsive bidder for a cost not to exceed $200,000. 

          7I.      Appointment to Board Established Subcommittees for Personnel and Human Resources and Capital Projects.
President Lauritzen appointed the following Board members to serve on the newly established Board subcommittees:
          Personnel/Human Resources – David Contreras and David Huerta
          Capital Projects – Doug Scheer and David Huerta


8.       Staff Reports
Fred Etzel – Mr. Etzel reported that he is continuing to monitor the Bay Delta Conservation Plan.  He has been working with Mr. Williams on the license agreement with Delta Science Center and working with RD830 on an agreement with ISD.

Jenny Skrel – Ms. Skrel submitted her written report in the Board packet.

Susan Walde – Mrs. Walde reported on the Science week event at ISD.  She reported that the new FOG building was well received and many interested people received information for future involvement in the program.

Tom Williams – Mr. Williams reported he was on vacation the week of April 22nd. He has been working with the Outreach committee and the Finance subcommittees. He attended CSDA training on the Board’s role in Human Resources with Director Scheer.  He also attended the CCSDA quarterly meeting with Directors Huerta and Contreras.  Being on the programs committee, he arranged for Jim Fielder, Chief Operating Officer of Santa Clara Water District, to speak on recycled water and how the SCVWD is utilizing recycled water to help meet it present and future water demands.  Mr. Williams has been working diligently with Mr. Welty on the budget process.  He is also working with Brent Ives to finalize the Performance Management plan.  He reported that he is working with Georg Kramer of Koff and Associates to move forward with the compensation study update. On April 29th he attended a meeting with the Contra Costa County Flood Control and Water Conservation District (CCCFC & WCD) on the RD 830/ISD proposed Marsh Creek enhancement.  The discussion focused on how the proposed project would be coordinated with CCCFC&WCD and the possible timing for implementation. A follow-up meeting has been set for June.
Mr. Williams also reported that staff is getting geared up for the internship program on Jersey Island.

RD830 – Mr. Williams is reviewing the draft document between RD830 and ISD on the Marsh Creek project.  RD830 is planning to bring the agreement forward to the ISD Board for consideration.  He is working with DWR on request for advance funds for refundable deposit for the ISD dirt use by RD830.


 9.      Board Members Advisory Reports
Director Contreras – Attended CASA and submitted a written report.  He further reported on speaker Danielle Hutchings Mieler, who spoke on the likelihood (94% chance) of a major earthquake in California in the near future (next 20 years) and the need for the wastewater industry plan and be prepared.  David Patzer spoke on Contingency Planning for Wastewater Treatment Plants.
The outreach committee published the notice of public hearing for Sewer Use Fee in the newsletter and saved the District almost $7,000 for publishing and postage.  He reported on the Oakley Science week event at ISD on April 27th and thanked staff for their participation and help with the event.  It was the opening of the ISD Fog House and was well received.  Staff handed out funnels for fog material collection. The event was well received with at least 300 youth and 450 total in attendance.

President Lauritzen – Attended the Bay Planning Coalition Decision Makers Conference with Mr. Williams on Friday May 3rd.  The discussion was on dredging and the shipping goods in the Bay and the Delta.  The Port of Stockton and City of Pittsburg were in attendance.  The conference was very beneficial as related to our Jersey Island ownership.

Mike Painter – Director Painter reported that the project on Jersey Island has been eventful.  He has been working on the Delta Science Center rice project and working out details with the weather.  They will have the first class of 20 students on Thursday.  At the end of May they will be planting the rice.
He invited the Board to visit the Island stating the island is in full swing harvesting crops.



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


11.     Adjournment
President Lauritzen adjourned the regular meeting at 9:27 p.m. until Tuesday, June 4, 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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