MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS OF THE
IRONHOUSE SANITARY DISTRICT
December 3, 2013
The Ironhouse Sanitary
District (ISD) Board of Directors met in regular session on Tuesday, December 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 7:00 p.m.
2. 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
Susan Walde, District
Secretary
Bob Henn, District Counsel
Michael Welty,
Financial Officer
Joe Mueller,
Environmental/Process Compliance Manager
Interested
Parties: Susan Morgan,
Oakley
Randy
Pope, City of Oakley
Bryan
Bertacchi, Radback Energy
Brian
Connelly, Maintenance Worker II
Louis
Solana, Lead Maintenance Worker
Jack
Ossowski, Maintenance Worker II
Leon
Laucirica, Maintenance Worker II
Eric
Robertson, Lead Vehicle/Equipment Mechanic
Lawrence
Ginochio, Lead Ranch Operator
Dominic
Gardiner, Maintenance Worker II
Pledge
of Allegiance: Led by President
Lauritzen
Employee
Awards – Louis Solana, Lead Maintenance Worker – 10 Year Service Award
Eric Robertson, Lead Vehicle/Equip. Mechanic – 10
Year Service Award
Lawrence
Ginochio, Lead Ranch Operator – 10 Year Service Award
On behalf of the Board, President Lauritzen
acknowledged each above staff member presenting them with a Certificate of
Merit and thanked each staff member for their hard work and dedication to the
District.
3. Approval
of Agenda
M/S D. Contreras, M. Painter, and the Board voted to
approve the agenda.
4. Approval
of the Minutes of the November 5, 2013 Regular Meeting.
M/S D. Contreras, D. Scheer and the Board voted to
approve the minutes of the November 5, 2013 Regular Meeting.
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.
M/S D. Huerta, D. Scheer and the Board voted to
approve the Consent Calendar.
7. Business Before the Board
7A. APPROVAL
OF IMPROVEMENT AGREEMENT FOR SEWER FACILITIES WITH CONTRA COSTA GENERATING
STATION LLC FOR THE OAKLEY GENERATING STATION.
Mr. Tom
Williams introduced Representative Bryan Bertacchi of Radback Energy for the
Oakley Generating Station. He spoke to
the Board regarding the agreement for Sewer Facilities for construction of
sewer improvements. This agreement is a
commitment to the future project. The
agreement has been approved by the attorneys and to request approval of the
Boart to move forward with the agreement to obtain financing for the
project. Mr. Bertacchi thanked staff for
their quick work to get the agreement done to help close financing on the
project.
President Lauritzen asked about the 3 percent inflator
provision. Director Painter asked about
the timing of the project. Mr. Bertacchi
stated he felt it would take approximately two – eight months to close the
financing and the project could start construction at that time.
M/S M. Painter, D. Huerta and the Board voted
unanimously to approve the Improvement Agreement for Sewer Facilities with
Contra Costa Generating Station LLC for construction of sewer improvements associated
with the Oakley Generating Station and the accompanying Notice of
Determination.
7B. CONSIDERATION OF OPTIONS FOR POSSIBLE STAFF COMPENSATION
ADJUSTMENTS IN RELATION TO THE DRAFT TCS STUDY BY KOFF AND ASSOCIATES.
Mr. Williams
spoke to the Board and at the Board’s request; staff has prepared alternates to
the TCS in the 43rd, 44th, and the 45th
percentiles. The 43rd and 45th
percentile alternatives were requested by the Board at its October 9, 2013
special meeting and the 44th percentile alternative was requested by
the finance committee at its November 9, 2013 committee meeting.
On behalf of the finance committee represented by
Director Huerta, the committee went over the numbers with great concern
regarding the bottom line, implementation of the numbers, and how it impacts
the next two years budget. The finance
committee recommends the Board use the 44th percentile alternative
that will leave the District with a sound number for budgeting purposes.
Discussion was held on the three alternatives and the
impact on the budget and the consideration for the future.
Director Contreras stated that the study will be used
to implement and in hopes of connections coming on, to increase in the
future. Director Painter stated that
every Board member here wants to keep the District in the 50 percentile, but we
have to stay within our budget numbers. President
Lauritzen stated that he is comfortable with the 50th percentile,
but stated that we can’t do it all in one year.
He stated that we need to keep and retain our folks. We understand that our staff has families and
our goal is to take care of our employees.
Director Scheer stated that the TCS needs to be reviewed more often than
every 7 years. Director Contreras stated
in the next five years, our goal is to visit the TCS annually to stay
current.
Director Painter thanked Director Contreras and
Director Huerta for their work. He
stated they have worked on this long and hard and have put a considerable about
of time and effort into the study.
Mr. Haefke spoke to the Board and asked, what is the
minimum amount number to meet the net revenue.
Director Huerta stated to meet the 45th percentile was not
enough to create a comfortable cushion for the finance committee. Mr. Welty stated there is not a solvent number
to meet the net revenue. Mr. Haefke
asked if we bring up the connections will the 50th percentile be
visited again.
President Lauritzen stated the Board will be more
fluid and more diligent to help take care of their employees. He thanked the Finance committee on behalf of
the Board for all their time.
Mr. Frank Casey asked the Board, by not raising the
rate and holding the rate at $618 he understands, but it has hurt the employees
by not allowing adequate annual COLA’s and raises.
President Lauritzen stated the Board has a
responsibility to be fiscally responsible to the ratepayer. At 14,600 connections each dollar makes a big
difference in this past economy. He also
stated that $2.5 million dirt project will help fund the projects reserve
account.
Mr. Louis Solana spoke on the Proposition 218 that was
passed with a 5 year projection of a rate increase to $680. He stated as a rate payer he understands the
cost of doing business. For the service
provided for $51.50 a month compared to other utilizes needed for a household
it is reasonable and folks would pay for the increase to $680. As an employee we work hard and shouldn’t be
at the 35-40th percentile. We
need to be taken care of.
Mr. Williams spoke to the Board and all attending on
the rate proposed in the Prop 218 in F/Y 06/07 to a maximum of $680. He stated the economy changed and we are
still at a high rate as compared to other districts, and as other Districts perform
upgrades they are catching up to ISD. He
stated the District is right where it needs to be for a rate.
Director Contreras stated the Board is trying to take
care of the issues. We have addressed transparencies,
making the public more aware of our District.
Nothing is the same as it was and the economy has changed.
Mr. Dominic Gardiner asked if the Board is trying to
catch up to the 50th percentile in three years.
President Lauritzen stated if fuel stays down, the
solar goes online and we obtain 300 connections, the Board will work to bring
the employees up to the 50th percentile.
Mr. Haefke stated he is looking for a commitment from
the Board to bring staff to the 50th percentile.
M/S D. Contreras, D. Scheer and the Board voted
unanimously to implement the Total Compensation Study at the 44th
percentile approving an amount of $144,000.
7C. CONSIDERATION
OF ACCEPTING PROPOSED CHANGES TO THE STRATEGIC PLAN.
Mr. Williams stated that the Board
packet includes a track change version of the edits made to the Strategic Plan
at the November 21, 2013 Special Workshop meeting. Staff’s recommendation is for the Board to
review and accept the changes to the Strategic Plan as of November 22,
2013.
M/S D. Contreras, D. Huerta and the
Board voted unanimously to accept the changes to the Strategic Plan and advise
staff to review annually with the Board of Directors.
7D. CONSIDERATION
OF SECURITY UPDATES FOR JERSEY ISLAND AT HEADQUARTERS AND NEW CARETAKER’S AREA.
Mr. Dave Dal Porto spoke to the Board regarding the
security exposures to the Island at headquarters location with the caretaker
moving to the new location. ISD should
be taking possession of the new mobilehome for the caretaker mid-December. He has been doing research on security
systems to cover the office and the equipment at headquarters. He presented the Board with a two-fold
security proposal using a wireless system and a hardwire system from Electrical
Protection Inc.
Director Contreras asked staff if the cost is in the
budget and also asked for a professional opinion from Director Scheer. Mr. Dal Porto stated that staff can provide a
considerable amount of in-house work i.e., labor to complete the trenching. The funds would be covered by the capital
reserve account. Director Scheer advised
the Board that in his opinion, hardwiring systems are always better.
Discussion was held on the placement of gates and
camera’s. There was also discussion on
the need for temporary security at the caretakers’ site after delivery of the mobilehome,
and during the process of the move of the caretaker family to protect the new mobilehome. The temporary security coverage is included
in the budget for the cost of the mobilehome.
Mr. Dal Porto stated that the cost of the new security updates would be
$21,000 including ISD labor.
M/S D. Contreras, D. Huerta and the Board voted
unanimously to approve installing additional security protection at the Jersey
Island headquarters and new caretaker areas for a cost not to exceed
$22,000.
7E. CONSIDERATION
OF ATTENDANCE AT CASA 2014 WINTER CONFERENCE January 15, 2014 – January 17,
2014.
Mrs. Walde asked the Board to let her
know who is considering attending the conference to make the appropriate
arrangements. Director Contreras stated
he would be attending and Director Scheer showed interest in attending.
7F. ANNUAL ORGANIZATIONAL MEETING OF THE BOARD
OF DIRECTORS TO ELECT A PRESIDENT AND VICE PRESIDENT.
President Lauritzen called for nominations to elect a
President and Vice President as stated in the ISD Board By-Laws Item 4.4. Director Contreras nominated Director Huerta
for President. Director Painter
nominated David Contreras for Vice President.
Hearing no other nominations, the nominations were closed.
The President called for a secret ballot vote, and the
result of the voting was unanimous, with Director David Huerta elected to the
position of President and Director David Contreras elected to the position of
Vice President.
Director Lauritzen surrendered his position of
President to Director Huerta.
8. Staff Reports
Tom Williams – Mr. Williams reported that he included a report in
the Board packet with a detail of his November General Manager duties. He reported he attended the General Manager’s
round table meeting at East Bay Mud. He
reported that in Region II there is a nutrient level issue; the water is
becoming clearer and the algae are becoming more prominent. There is much concern over the nitrates,
ammonia, and phosphorous. He reported
that 23 facilities will have to upgrade to a nutrient removal level in the
distant future.
Joe Mueller – Mr. Mueller reported that his written staff report is
one month behind in reporting. He
reported that the discharge was very similar to the report of October. It was a split month between river discharge
and irrigation.
Bob Henn – Mr. Henn reported that he has been working with
staff on the Improvement Agreement for Sewer Facilities associated with the Oakley
Generating Station.
9. Board Members Advisory Reports
Director Painter – Director Painter reported that on Jersey
Island they released 80 pheasants before Thanksgiving and there are
approximately 20 left. There will be a junior
hunt on this Saturday and estimates there will be 30-40 hunters.
Director Contreras – Director Contreras thanked
Chris Lauritzen for his Presidency and acknowledged what a nice job he did as
serving the office.
10. Future Agenda Items for Consideration
There were no items for consideration at this time.
11. Adjournment
President Huerta adjourned
the regular meeting at 8:50 p.m. until Tuesday, January 7, 2014 at 7:00 p.m.
for the next regular meeting in the Ironhouse Sanitary District offices at 450
Walnut Meadows Drive, Oakley, California.
APPROVED ____________________________
President District
Secretary