Tuesday, August 20, 2013

Minutes of the July 18, 2013 meeting Finance Committee



MINUTES
FOR THE FINANCE COMMITTEE
BOARD OF DIRECTORS
IRONHOUSE SANITARY DISTRICT

DATE:      July 18, 2013
TIME:       Meeting start time 10:08 a.m.
PLACE:     Ironhouse Sanitary District Office
450 Walnut Meadows Drive
Oakley, Ca. 94561
ATTENDANCE:  David Huerta, David Contreras, Tom Williams


A.      Public Comments
No public comment

B.       Review of Proposed Compensation Study by Koff and Associates
a.    Review of FTE Total & Cost Impact on Budget.
Mr. Williams provided a handout (a spreadsheet) showing estimated financial impact to ISD budget if the recommendations of the study were implemented over 2 years, and 3 years.  The handout was displayed via PowerPoint and real-time edits could be made, and impacts reviewed, if desired.  Mr. Williams discussed briefly the handout and its assumptions. The committee began discussing the methodologies used in the study, the validity of the comparator agencies used, and concern over ISD “efficiency” when looking at other comparators.  The discussion occurred for some time.  The committee ultimately indicated they were not ready to make a recommendation to the ISD Board on implementing the Compensation study until a “top to bottom” efficiency study was investigated.  The committee directed Mr. Williams to investigate the possible costs and timing of an efficiency study and report back to the committee. 


C.       Discussion on Reserve Policy.
This item was tabled until the next meeting.

D.      Discussion on Future Items for Finance Committee and Proposed Meeting Dates. 
Continue discussion on the Compensation study and possible efficiency study.  Also, discuss Reserve Policy at the next meeting.  No future meeting date was set at this time.

E.       Adjournment.
The meeting was adjourned at 11:55p.m.




Monday, August 19, 2013

Minutes of the July 2, 2013 Regular Meeting of the ISD Board



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

July 2, 2013

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, July 2, 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 7:03 p.m.

2.       Pledge of Allegiance led by Director David Contreras

          Roll Call:

Directors present:                David Contreras, David Huerta, Chris Lauritzen, Michael Painter and Doug Scheer
                                                Note: David Huerta arrived at 7:45 p.m.
          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
                                                Marc Haefke, Operations Superintendent

          Interested Parties:               John Cain, American Rivers
                                                Randy Mager, DWR
                                                Susan Morgan, Oakley
                                                Randy Pope, Oakley City Council
                                               

3.       Approval of Agenda

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


4.       Approval of the Minutes of the June 4, 2013 Regular Meeting and the June 18, 2013 Special Workshop Meeting.
Director Contreras noted corrections to the Minutes of the June 18, 2013 Special Workshop Meeting.
M/S D. Contreras, M. Painter and the Board voted to approve the minutes of the June 4, 2013 regular meeting; and the minutes of the June 18, 2013 special workshop meeting with the corrections as noted.


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


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

          B.      Approval of Posting & Publishing of Ordinance No. 51/Order No. 13-20 Sewer Service Charge Adjustment (BO 13-23). 

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


7.       Business Before the Board

7A.     Consideration of Solar PPA Modification.

          Ms. Skrel reviewed with the Board the Solar PPA assignment and assumption agreement with California PV Energy, LLC.  California PV has requested changes to the original agreement.  Ms. Sophie Akins was available via conference call to review the revisions in the PPA Assignment and assumption agreement with the ISD Board.
Director Lauritzen asked if we have enough recourse if the company is not able to service the equipment.  Ms. Adkins explained they have provisions written in the agreement that protect the District.  After discussion of the revisions;
          M/S M. Painter, D. Scheer and the Board voted to authorize the general manager to sign the Assignment and Assumption Agreement associated with the ISD Solar project.  D. Huerta was absent.  (B.O. 13-24).

          7B.   Consideration of Agreement with RD 830 Regarding the proposed Marsh Creek Enhancement project on up to 100 Acres of ISD Land.
7:45 p.m. Director Huerta arrived

          Mr. Williams presented to the Board an overview of the Marsh Creek Project.  The project has been around since 1993/94 Environmental Project.  Mr. Williams reviewed the history of the project and the potential benefits it will bring to the community by the support of the ISD Board.  
          Director Contreras has questions about this being a three year project and changing the contract with RD 830 from a 5 year contract to a 3 year contract.  He would recommend the following term changes; change to term of three years with option for two one year extensions.
          Mr. John Cain of American Rivers spoke to the Board in support of the project.  He has been working in support of this project for 12 years, believing the project will help protect Marsh Creek and Western Delta water quality, while enhancing habitat for fish, wildlife and people.  He stated the project will be great for water quality from the Marsh Creek Watershed.  He first became involved in 1999 with Mr. Byer and Mr. Bauer from ISD.  In 2001 he presented the project to Mr. Williams and has had an ongoing working relationship with Mr. Williams.  In 2010 he worked with Mr. Williams on the RD 830 grant, and helped encourage the ISD Board to continue supporting the project. He stated that the project will bring $2.5 million to the ISD ratepayers, in addition to the environmental benefits.  The project will place ISD as an innovative leader in water management and bring strength to the institution.
          Mr. Williams stated the project became a reality when going to the Regional Water Quality Control Board (RWQCB) for the new Water Recycling Facility (WRF) river discharge permit. The partners ISD asked to speak on its behalf at the RWQCB meeting (DWR, City of Oakley and John Cain of the National Heritage Institute) all helped influence the decision of the RWQCB such that ISD received its permit in favor of the river discharge. 
          Mr. Mager of DWR stated that he became part of the project three years ago.  He indicated this project is very innovative; to restore Marsh Creek at this level is very unique.  He is very excited about working on this project and is eager to move forward.
          Director Painter stated that this is a unique opportunity and staff has done due diligence. He stated that timing is everything and now is the time to go forward with the project.
          President Lauritzen stated that as long as the project does not impact the ratepayer he can support it.  He emphasized our business is to collect, treat and dispose.  He voiced his concern regarding the relocated levee system the proposed project will create and its future maintenance; which has a possibility of impacting the ratepayer.  He emphasized that there cannot be a cost to the ratepayer.
          Director Contreras asked the District Engineer about her concerns.
          Ms. Skrel stated that Mr. Mager of DWR sent an email addressing how different concerns brought up by ISD can be resolved, and that recent edits to the ISD/RD 830 agreement have been included that protect ISD and, allow for changes if needed as the project progresses.

M/S M. Painter, D. Huerta and the Board voted unanimously to approve the agreement with Reclamation District 830, and authorize the President to sign the agreement with the recommended changes to agreement term of three years with two one year extensions. (B.O. 13-25)

          7C.   Consideration of Purchase of Dumpster-Veyor.  Authorize General Manager to enter into contract with D.R. Cordell & Associates, Inc. for purchase and installation for a cost not to exceed $95,000.

          Ms. Skrel reviewed with the Board the process of handling screenings from the 1mm drums screens at the WRF on a weekly basis.  Currently, the screenings compactor sends the screenings from the drum screens Monday through Friday into a 3 cubic yard dumpster that is emptied by our garbage hauler multiple times during the week.  On weekends, to eliminate the need for an operator to be on-site, the screenings compactor is removed from operation and a 20 yard dumpster is placed under the helix presses.  Without the screenings press helping to remove excess moisture, the very high moisture content coming from the Helix presses over the weekend results in standing water, as well as excess weight in the 20 yard dumpster.  To allow the screenings compactor to remain in operation 7 days per week, the location of the 20 yard dumpster is proposed to be located in the semi enclosed area under the drum screens.  To facilitate moving of the dumpster to allow complete filling of the dumpster, staff is proposing the purchase of the Dumpster-veyor.
          Director Contreras asked about the use of the presses and, did staff prepare a cost analysis of not purchasing the new equipment vs. the cost of paying staff overtime and continuing to use the 3 yard dumpsters.
Staff responded that the proposed dumpster-veyor was to utilize the screenings compactor 7 days a week, utilize the 20 yard dumpster 7 days a week, minimize standing water in the 20 yard dumpster,  improve the quality of screenings on the weekend, reduce truck trips to dump the screenings, and prepare for increased volume of screenings in the future.
          Director Contreras asked if we have operators on site on weekends and staff responded that we do not.  He also asked if the item is budgeted.  Mr. Welty stated we have adequate funds in the expansion reserves for the purchase of the Dumpster-Veyor.  Director Contreras asked Mr. Williams’ position and he stated he supports staffs proposal to reduce standing water, and reduce truck trips. 
Mr. Mueller stated that we are only running at half our capacity at this time and when development picks up this purchase will allow us to be better prepared to handle the additional flows. 
          Director Contreras is concerned that at this time that the current disposal is of no cost to the District, and the cost of the proposed project will have a significant effect on the reserve account.
          Discussion was held and Director Contreras asked staff to do a review of the projects proposed for the WRF.
          Director Painter stated he strongly supports having a septic station which provides the ability for the RV’s to have a dumping facility and it will be a service for the community.
          Mr. Mueller expressed the concerns of staff regarding implementing a receiving station for RV and septic waste.  Mr. Mueller stated he is most concerned with the affect suspended solids from RV and septic waste will have on our drum screens, as well as the overall plant processes.
          Director Contreras asked staff to look at the project, complete a cost analysis, review the bid, and return the item to the Board for consideration.
          President Lauritzen asked staff to review the septic receiving station, how many haulers in our area, how many loads a month, what kind of volume, etc…, and allow the Board to review.  He also asked staff to consider how much it impacts the local customers to be traveling to another facility. 
          Director Contreras asked for the dumpster-veyor item to be tabled until next month.

          7D.   Acceptance of Quail Valley Sewer System.  Authorize Board President to accept the Grant of Easement from Quail Valley Homeowners Association and sign the Quit Claim Deed between ISD and East Contra Costa Irrigation Dist.

          Ms. Skrel reported that when the Quail Valley Subdivision was constructed, no sewage outside of the subdivision flowed through it.  Today, a number of subdivisions have their collected sewage flowing into ISD’s collection system, which now flows through sewers installed within the Quail Valley subdivision.  ISD would like to be granted authority to own and maintain the sanitary sewers and forcemain within the Quail Valley subdivision.  In the process of reviewing the Quail Valley sewer system, staff discovered the parcel of land that the Quail Valley Pump Station is located on was originally dedicated in error to the East Contra Costa Irrigation District (ECCID). 
Staff recommends the Board authorize the Board President to accept the Grant of Easement from the Quail Valley Homeowners Association to allow ISD to construct, alter, operate, maintain and repair sewer lines within Quail Valley Subdivision, and to sign the Quit Claim Deed between ISD and ECCID.
          M/S D. Contreras, M. Painter and the Board voted unanimously to authorize the Board President to accept the Grant of Easement from the Quail Valley Homeowners Association to allow ISD to construct, alter, operate, maintain and repair sewer lines within the Quail Valley Subdivision and to sign the Quit claim Deed between ISD and ECCID.  (B.O. 13-26)

          7E.   Consideration of Outfall External Inspection.  Authorize General Manager to enter into a contract with Global Diving & Salvage, Inc. for external inspection of our outfall for a cost not to exceed $6,540.

          Ms. Skrel stated per our lease with the State Lands Commission, the outfall is required to have an external inspection every 2 years, and an internal inspection every 5 years.  The North coast Divers performed the water survey twice before and did excellent work.  Ms. Skrel highly recommends the Board consider entering into the contract.
          M/S D. Contreras, M. Painter and the Board unanimously voted to authorize the general manager to enter into a contract with Global Diving & Salvage, Inc. for external inspection of our outfall for a cost not to exceed $6,540.  The fees are to be charged to the WRF maintenance and repair account.  (B.O. 13-27).

          7F.   Consideration of Asset Management Services.  Ratify contract with Stantec Consulting Services, Inc. for a cost not to exceed $9,874 relating to monitoring preventative maintenance activities at the WRF. 

          Ms. Skrel reported to the Board that to monitor preventative maintenance activities at the WRF, ISD purchased NexgenAM, an asset management and computer maintenance management software.  Stantec Consulting has been hired to organize the WRF assets in the NexgenAM system and then assist with administration of a preventive work order process.  Staff will be trained on the use of NexgenAM and provide necessary support.  Staff is asking the Board to ratify the general manager’s decision to enter into a contract with Stantec Consulting Services, Inc. for Asset management Services.
          M/S D. Scheer, M. Painter and the Board voted unanimously to ratify ISD’s General Manager’s decision to enter into a contract with Stantec Consulting Services, Inc. for Asset Management Services associated with maintenance of the Water Recycling Facility for a cost not to exceed $9,874. (B.O. 13-28)

          7G.   Consideration of CSDA Board of Directors Election 2013.
          Ms. Walde stated the ballot was for the ISD Board to vote for the CSDA 2013 elections.  Director Contreras recommended the Board vote for Sherry Sterret of the Pleasant Hill Recreation and Park District.
          M/S D. Contreras, C. Lauritzen and the Board voted unanimously to vote for Sherry Sterret for the CSDA Board of Directors Election 2013.  (B.O. 13-29)

          7H.   Consideration of Attendance at CASA 2013 Annual Conference August 21 – 24, 2013. 
          Mrs. Walde stated the CASA 58th Annual Conference is August 21-24 and asked if any Board members will be attending.  Mr. Williams stated he will be attending.  Director Contreras will be attending as representative of the CASA programs committee, and Director Painter showed interest in attending.


8.       Staff Reports
Jenny Skrel – Ms. Skrel reported that for the next Board meeting she will have an update from Millennium on the removal of the Halsey structures and well pumps on Jersey Island.  The initial engineer’s estimate from Millennium came in at $205,000, and she is reviewing the project with staff to determine what can be done, using in-house staff and subcontractors, to reduce potential costs.

Fred Etzel – Mr. Etzel reported he has been following the Delta Plan and how it relates to ISD and Jersey Island.  There has been a suit filed against the Delta Plan and he will have a memo for the Board.  He has been working with Mr. Williams on the water rights for Jersey Island.

Marc Haefke – Mr. Haefke reported that the WRF is still having issues with the UV and are working with Trojan to work this out.  The problem may be due to the location of high voltage wires and Trojan communication lines.  Trojan staff has indicated to ISD staff that we could have interference issues with the close proximity to high voltage wires.

Joe Mueller – Mr. Mueller reported Trojan staff made a decision to modify the UV board wiring to possibly address the communication issues, and ISD staff is working with Trojan to make the changes to the UV system occur.   

Tom Williams – Mr. Williams reported that on June 3rd he attended the breakfast with the mayor.  On June 12th he attended the Jersey Island Management committee meeting on Jersey Island; on June 13th he attended a General Managers Round Table meeting, and on June 18th he attended the workshop with the Board and DWR on the contract with RD830 regarding the Marsh Creek Habitat Enhancement Project.   He reported that he has been working with Mr. Welty on the management agreement between ISD and RD 830.  He met with the Finance Committee working on the Koff compensation study and will meet again on July 18th. 
The RD 830 levee project near Blind Point just went out to bid.  The bids came in at $1.5 million which is $100,000 under the engineers estimate.  The project is located between levee stations 580+00 and 660+00 (about 8,000 feet) and will start in about three weeks.
Levee drains were installed near headquarters as recommended by Hultgren-Tillis to solve a localized seepage issue, and the drains are working well.  Mr. Williams indicated he asked Mr. Moss to begin looking at mobile homes for purchase and placement on the new elevated pad on Jersey Island. 
Mr. Williams notified the Board that he will be on vacation from July 3 until July 18 and Ms. Skrel will be in-charge of the office.


9.       Board Members Advisory Reports
Director Contreras – Director Contreras stated to staff how much he appreciates the staff reports and how they keep the Board informed about the District.
He reported that the District has applied for the CASA Outreach award.  He also reported that the CSDA insider has a great article on Brent Ives regarding Assessing Organizational Efficiency.
July 6th is the Cityhood Celebration.  The Maintenance Collections department will help with the set-up and take down.  Directors Contreras, Huerta and Painter will be available to help with the booth and will have funnels, beach balls and bags available for give away.

Director Scheer – Director Scheer reported that he is very impressed with the rice project on Jersey Island.  He reported that more builders are stepping up with residential construction in the Oakley area.

Director Painter – Director Painter reported on the Delta Science Center project on Jersey Island.  He reported that he has been working with Ms. Gehlke and they moved the rice from the hot houses to the fields.
He reported that he attended the Jersey Island Management Committee.  He reported that they discussed the financial options and determined to wait to initiate the J.I Management plan until after the land management plan for the mainland is completed.


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


11.     Adjournment
President Lauritzen adjourned the regular meeting at 9:15 p.m. until Tuesday, August 6, 2013 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.