Thursday, October 24, 2013

Minutes of the Septmeber 3, 2013 ISD Board Meeting



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

September 3, 2013

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, September 3, 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 6:00 p.m. who announced that the board would go into the Closed Session shown as Item 1 on the Agenda.  

          Closed Session
Conference with Legal Counsel-Significant Exposure to Litigation (pursuant to subdivision (d)(4) of Gov’t Code Section 54956.9 (one case)

At 7:00 p.m., the Board reconvened in Open Session

2.       Roll Call:

Directors present:                Chris Lauritzen, David Huerta, David Contreras, Michael Painter, and Doug Scheer

          Members absent:                None

Staff/Consultants present:     Tom Williams, General Manager
Jennifer Skrel, District Engineer
                                                Joe Mueller, Environmental/ Process Compliance Manager
                                                John Moore, District Counsel
                                                Elayna Whyte, Permit Planning Technician
                                               
          Interested parties present:     Susan Morgan, Oakley, CA
                                                Matthew Cline, Three Wine Company
                                                Joshua Roden, Brookfield Homes
                                               
          Interested parties via
          conference call:                  Abinash Tiwari, Constellation
                                                Sophie Atkins, Best, Best, Kreiger, LLP
                                                Jill Dvareckas, Smart Energy Capital, LLC

Pledge of Allegiance:                              Led by Tom Williams

3.       Report of Action Taken in Closed Session

President Lauritzen reported the Board directed the legal team to pursue the case.

 4.      Approval of Agenda

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

5.       Approval of the minutes of the August 6, 2013 Regular Meeting

M/S D. Contreras and D. Scheer and the Board voted to approve the minutes of the August 6, 2013 Regular Meeting with two corrections; page 2, Item 7A second sentence should state 14,567.16 units and fifth sentence should state an increase of 243.52 units.

6.       Public Comments – Communications from the public on subjects not on the agenda.

Matthew Cline of Three Wine Company spoke to the Board (and provided a handout) stating that his wine company has leased and dry farmed the 14 acre Carignane vineyard for the past 25 years.  He is in the process of trying to stop the state of California from mining the sand to use for the Dutch Slough Marsh Restoration Project.  This property abuts Marsh Creek, Immediately opposite ISD’s property and he is requesting an access agreement if he is successful in lobbying to keep this vineyard. 

Mr. Cline stated that beyond economic reasons there are cultural and historical benefits to preserving the vineyard.  He stated that the California Legislation in April passed HR9 which honors old wineries.  His winery picks 70 tons of grapes out of the 14 acre Carignane vineyard.  He has had previous discussions with Tom Williams regarding RD830’s involvement with the Department of Water Resources for dirt replacement source in upland habitat which is widely dispersed within the area.  He anticipates having upcoming meetings with assemblymen to work on this issue.  He stressed how important to the community it is to preserve this vineyard and other vineyards in the area.  Oakley used to provide 30% of the grapes used by California wineries and now only provides 4%.

Director Painter asked if he was trying to buy or lease the property.  Mr. Cline stated that he was leasing the property.  President Lauritzen told Mr. Cline to continue keeping Tom up to date with his progress.  As this item is not agenized, the Board cannot take any action. 
        
7.       Consent Calendar
A.   Approval of Payment Order, Report on Financial Position & Operating
     Performance.

 B.  Approval of Posting & Publishing of Summary of Ordinance No. 52 and Order No. 13-31 Adopting the Annual Sewer Use Report for Fiscal Year 2013/2014

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

8.       Business Before the Board

8A.     Consideration of Approving Proposed Solar Agreement Amendment No. 1 to Allow Additional Time to Complete the Solar Project.

Jennifer Skrel introduced the three parties participating in the discussion via conference call, Jill Dvareckas, Abinash Tiwari, and Sophie Akins.  Ms. Skrel stated that in June 2013 the Board approved the assignment of the Solar Agreement from SEC UBBOE Solar One, LLC to California PV Energy, LLC.  California PV Energy, LLC is requesting an amendment to this agreement.  The changes requested in the amendment are to extend the completion date; update the legal description; and update the equipment provided.    Staff initially had concerns regarding the request for an extension as no soil has been turned; why the need for additional time as the construction has not yet begun.  The original completion date is February 5, 2014 and the requested extension date is April 30, 2014. 

Abinash Tiwari stated that Constellation has received internal Board approval to finance the construction.  However, environmental considerations are still on-going and need to be finalized prior to starting construction.  Equipment orders cannot be released until environmental studies have been completed.  Once ordered, equipment can take 6-8 weeks for delivery.   Constellation has $7,000,000 invested in the project and is eager to move forward.  Mr. Tiwari stated that it is possible that the project can be completed by the end of 2013.  He stated it will take 4-6 months from the first dirt turn to completion of the project.  He stated that 95% of the work is done and after finalizing the environmental studies its full steam ahead.

Ms. Skrel stated that all due diligence has been done and California PV Energy, LLC has been working non-stop to move forward with this project.  The Mitigated Negative Declaration is complete.  However, Constellation wanted additional environment studies done since the project is a 25 year investment.  Ms. Skrel stated that we have agreed to contract with Constellation and that they are entirely responsible for not only the initial investment but the unknowns that may occur.  It is not typical for our side to ask for a liquidated damages clause.

Tom Williams stated that Constellation has more on the line than ISD and that ISD will continue to closely monitor the project to make sure that they are moving along.  Ms. Skrel added that there are milestones in place to ensure movement on their part.

President Lauritzen asked why a SWPP was necessary when the project would not impact storm drains.  Ms. Skrel stated that the state requires a SWPP for every project that dirt will be turned.  President Lauritzen also asked where the equipment is coming from.  Ms. Skrel stated that the panels were manufactured in China and the U.S.   Mr. Tiwari stated that Power 1 is manufactured in the US as well as Europe.  President Lauritzen asked if it was normal in the solar industry to have this type of hiccup in the process.  Sophie Akins stated that yes it was normal to request amendments during a project.  President Lauritzen wanted to know where the financing was coming from.  Mr. Tiwari stated that the Constellation is located in Chicago. 
Director Contreras asked Mr. Tiwari if the environmental controls that are causing the need for the proposed changes were Constellation’s internal controls and beyond ISD control.  Mr. Tiwari stated that they indeed were.
Director Contreras expressed his concerns regarding the timeline.    He asked about the process to choose another contractor out of the 6 proposals obtained.  Jenny Skrel stated that Real Good Solar is still overseeing the work, only the financing portion changed.  She stressed that the work has been on going and closely monitored by District staff.  Director Contreras asked if there were any financial consequences for the District if the completion day was extended.  Jenny Skrel stated that the District will lose $24,000 if the project is completed April 30.  Director Contreras asked how the District would be compensated for this loss.  Abinash Tiwari stated that there is nothing in place to reimburse the District.  Jenny Skrel stated that all initial capital investments are made by Constellation and it is not typical for our side to ask for damages.
President Lauritzen stated that our goal is to move forward with the solar project.  The ultimate goal is to save the rate-payers money.  Director Scheer asked if we have a termination option.  Jenny Skrel stated that while we do have a termination option, terminating the agreement at this point is not desirable.  Ms. Skrel stressed that milestones are in place and that staff has been and will continue to closely monitor progress.
Director Contreras stated he was not looking to seek liquidated damages but wanted the Board to be aware of his concerns:
          1. ISD’s solar Agreement is no longer with SEC UBBOE Solar One, LLC whom we originally contracted with
          2. We are not getting the equipment specified in the original agreement
          3. The completion date proposed is nearly three months from the completion date in the original agreement.
          4. There is potential for a $24,000 financial consequence to ISD if the project is completed on April 30.

M/S M. Painter, D. Huerta voted to accept the Amendment.  In favor:  M. Painter, D. Huerta, C. Lauritzen, and D. Scheer.  Opposed: D. Contreras.

          8B.     Review and Consideration of Exiting the Temporary Fee Incentive Program for District’s Plant Capacity and Trunkline Capacity Fees.

In order to continue to meet the state mandate for debt service net of revenue test, the program should not be extended.  Mr. Williams stated that two years ago ISD, Diablo Water District, the City of Oakley, and the Contra Costa Transportation Authority all offered the temporary fee incentive program in an effort to attract development in Oakley.  Mr. Williams stated that although ISD’s discount program is due to expire, the Plant Capacity and Trunkline Capacity fees were permanently reduced by approximately 22% just prior to the temporary fee discount program being implemented.  ISD was the only entity to implement a permanent fee reset.  Also, the annual sewer service charge has remained unchanged for this fiscal year, which makes ISD’s budget more challenging; and ISD has drawn down reserves in the last several years to help stabilize rates. During the course of this discount program ISD has had 235 units connect.  Of those, 14 have been conversions from septic to sewer.  An additional 126 units that were pre-paid have connected during this time period as well.  Mr. Williams stated that letters went out to property owners on Raye Avenue, Malicoat, Douglas, and Hill Avenue advising them of the pending expiration of the fee incentive program. 

Josh Roden of Brookfield Homes addressed the Board representing the development community.  Mr. Roden expressed concern about the expiration of the temporary fee Incentive program and its impact on developers.  Mr. Roden expressed that while the real estate market has recently improved, the sale prices of homes in Oakley are still not where they need to be to encourage continued development.   He also stated that with each new home that connects, ISD receives additional revenue from the annual service charge and, again, encouraged the ISD Board to extend the fee incentive program for two more years.

President Lauritzen thanked Mr. Roden.  He stated that ISD has made financial commitments and have kept the discount as long as possible.  He stated that the service charge was not raised to help maintain affordability.

M/S D. Contreras, D. Painter and the Board voted to let the Temporary Fee Incentive Program expire September 30, 2013.

8C.     Report on Providing a Septage Receiving Facility at ISD’s Water Recycling Facility.

Jennifer Skrel reported that installing a septage receiving facility at ISD’s Water Recycling Facility would cost approximately $500,000.  Ms. Skrel stated that there are four such facilities that are available:  Delta Diablo Sanitation District, East Bay Municipal Utility District, Central Contra Costa Sanitary District and Dublin San Ramon Services District.    Ms. Skrel stated that each of these wastewater treatment plants utilize different technologies and have significantly greater influent flows than ISD.  Ms. Skrel stated that Williams Sanitary currently uses Delta Diablo Sanitary District’s facility and Rotor Rooter uses both Central San and EBMUD’s facility.

President Lauritzen stated that adding a facility would be labor intensive and would impact our equipment.

President Lauritzen stated that the board will revisit this item at a later date.

9.       Staff Reports

Tom Williams – Mr. Williams reported on the CASA Conference in San Diego.  He spoke of the massive project in the Sacramento Region.  They are constructing a facility that will take 10 years to complete at a cost of $1.7 billion.    Approximately 300-400 people will be on the job site with trucks entering and exiting about every 75 seconds.  Mr. Williams also mentioned a project in Milwaukee that spent $58 million on a monitoring project alone to better determine pollutant sources. 

Joe Mueller – Mr. Mueller reported that for the past 7 months no discharge to the river has occurred.  He is hoping to complete the month of September without discharging to the river.  Mr. Mueller also spoke about changes to the certification programs for operators. 

10.     Board Members Advisory Reports

Michael Painter – Mr. Painter reported on his attendance at the CASA Conference.  He spoke of the new technologies in water recycling.  He stated that our job is to keep looking into the future.

Chris Lauritzen – President Lauritzen reported on the CSDA Webinar on the Brown Act.  He stated that the webinar was not only a great way to stay informed but saves time and money.

Dave Contreras – Mr. Contreras reported on the CASA Conference and spoke of the opening day CSRMA training seminar.  Mr. Contreras indicated the CSRMA presentation was on succession planning with a focus on private vs. public agencies.  He stated that new technologies are not always embraced because they can be cost prohibitive for many entities.

11.     Adjournment

President Lauritzen adjourned the regular meeting at 8:35 p.m. until Tuesday, October 1, 2013 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.


Minutes respectfully submitted by Elayna Whyte.

Wednesday, October 2, 2013

Minutes of the Maint-Coll Committee mtg 9-25-2013



MINUTES
FOR THE MAINTENANCE AND COLLECTIONS COMMITTEE MEETING
BOARD OF DIRECTORS
IRONHOUSE SANITARY DISTRICT

DATE:           Thursday, September 25, 2013
TIME:            8:30 AM
PLACE:         Ironhouse Sanitary District Office
                        450 Walnut Meadows Drive
                        Oakley, California  94561

ATTENDEES: Michael Painter, Doug Scheer, David Smith, Neil Sterud,  
______________________________________________________________________________

A. Public Comments---No public comments

B. The Minutes of the August 29, 2013 Meeting were approved.

C. Overview of the Sewer System Management Plan (SSMP) Chapters 9, 10, and 11 were discussed in detail.  The State of California Water Resources Control Board ORDER NO. WQ 2013-0058-EXEC amending the monitoring and reporting program for the statewide general waste discharge requirements for sanitary sewer systems was presented and discussed in detail as to the impact on the District.  This Board Order was effective on September 9, 2013.
 .     

D.  Next Meeting Agenda Items.  The next meeting was set for October 29, 2013 at 8:30 and a site visit of a lift station undergoing an annual inspection and maintenance was chosen for the next meeting.   

E.  Adjournment. The meeting adjourned at 10:05 a.m.