Minutes of the Ironhouse Sanitary District April 1, 2014 Board Meeting

MINUTES OF THE REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE

IRONHOUSE SANITARY DISTRICT

 

April 1, 2014

 

The Board of Directors of the Ironhouse Sanitary District (ISD) met in regular session on Tuesday, April 1, 2014, in the Board meeting room at ISD’s offices at 450 Walnut Meadows Drive, Oakley, California.

 

1.       Call to Order & Closed Sessions.

The meeting was called to order by President David Huerta at 5:00 pm.  All five directors were present.  President Huerta announced that the Board would go into the two Closed Sessions shown as Item 1 on the meeting’s agenda.

Closed Session pursuant to Government Code Section 54957:

Public Employee Performance Evaluation (General Manager).

 

Closed Session

Conference with Legal Counsel – Anticipated Litigation

Initiation of litigation pursuant to Government Code Section 54956.9 subdivision (d)(4) – one case.

 

At 7:00 pm the President called for a short recess.

At 7:06 pm the Board reconvened in open session. 

The President reported that no action had been taken in either closed session.

 

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

Jennifer Skrel, District Engineer

                                                            Susan Walde, District Secretary

                                                            Bob Henn, District Counsel

                                                            Michael Welty, Financial Officer

                                                            Joe Mueller, Environmental/Process Compliance Manager

                                                           

 

            Interested Parties:                   None

                                                           

                                               

            Pledge of Allegiance:             Led by Michael Welty

 

           

3.        Approval of Agenda

Mr. Williams asked the Board to move Item 8K to the second item on the agenda of new business and to pull Item 8L from the agenda. 

M/S D. Contreras, C. Lauritzen and the Board voted unanimously to approve the Agenda with the proposed changes.

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and D. Scheer.  Opposed: None.

 

4.       Report of Action Taken in Closed Session – President Huerta reported no action was taken.

 

5.       Approval of the Minutes of the March 4, 2014 Regular Meeting

            Approval of the Minutes of the March 11, 2014 Special Meeting

Director Contreras noted a change to the action taken in closed session of the March 4, minutes. 

M/S D. Contreras, C. Lauritzen and the Board voted to approve the minutes of the March 4, 2014 Meeting, with the change noted and the March 11, 2014 Special Meeting of the Board. 

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

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

There were no comments from the public at this time.

 

7.        Consent Calendar

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

            B.       Acceptance of Agreement for Acquisition and Construction of Improvements – Oak Ridge Family Apartments – Phase 6, 73 Carol Lane, 73 Carol Lane LLC. (B.O. 14-08)

Director Scheer asked about the three bulls for the herd.  Director Lauritzen asked about Ian Robertson as a guard and asked if he was certified.  He noted to staff to make sure future security have a card of authorization.  M/S C. Lauritzen, M. Painter and the Board voted to approve the Consent Calendar.  In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

8.       Business Before the Board

 

8A.     SOLAR PPA TIME EXTENSION AMENDMENT

Ms. Skrel explained to the Board that due to a delay of the transformers needed for the solar system, the Water Recycling Facility’s solar system will not be operable until June 20, 2014.  This is the second amendment to the Solar Power Purchase Agreement. Via a conference call with Attorney Sophie Adkins and the representative from Constellation who owns California PV Energy, the Board reviewed the conditions of the extension amendment. Delivery of the protective transformers needed for the solar system has delayed startup of the solar system until June 20, 2014.  Constellation is offering to compensate ISD $260 per day starting on April 30, 2014 and continue until the solar system is operational. 

Director Contreras asked what the original date of completion was and Ms. Adkins stated in the first amendment it is April 30, 2014. She explained that this proposal covers loss to the district until the system comes on-line.  With this offer it will keep the District whole.

Director Lauritzen asked how often the district will get reimbursed and asked about the language.  The payment is to be made in 30 days after the District becomes commercially operable.  Ms. Skrel stated our electrical power system coming into the WRF is at 21 Kilovolts (much higher than normal) and, is not typical for solar projects so, our project was a bit unusual.  Discussion by the Board followed. 

M/S C. Lauritzen, D. Contreras and the Board voted to approve the second amendment to the Solar Power Purchase Agreement by and between Ironhouse Sanitary District and California PV Energy, LLC.  (B.O. 14-09)

In Favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and D. Scheer.  Opposed: None

 

            8K.     AWARD BID FOR BETHEL ISLAND BRIDGE FORCEMAIN REPAIR PROJECT TO PLEASANTON ENGINEERING CONTRACTORS, INC. FOR A COST NOT TO EXCEED $99,500 AND APPROVE A CONTINGENCY OF $9,950.

Ms. Skrel stated that in September of 2011 the expansion joint installed on the 14-inch force main as part of the Bethel Island Bridge project failed. She stated that the project went out to bid on March 25, 2014, receiving two bids.    Staff’s recommendation is to award the project to Pleasanton Engineering Contractors, Inc. for a cost not to exceed $99,500, approving $9,950 for project contingency and inspection and authorize the General Manager to sign the agreement.

M/S D. Scheer, D. Contreras and the Board voted unanimously to Award the Bid for the Bethel Island Bridge Forcemain Repair Project to Pleasanton Engineering Contractors, Inc. for a Cost not to exceed $99,500 and approve a contingency of $9,950.  Authorizing the General Manager to sign the agreement.  (B.O. 14-16) 

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

            8B.      CONSIDERATION OF LEASE AGREEMENT WITH DWR FOR JERSEY ISLAND SIDE OF FALSE RIVER TEMPORARY DROUGHT ROCK BARRIER ON JERSEY ISLAND (Res. 14-06).

Mr. Williams reviewed with the Board the critical condition of the Delta due to the on-going drought conditions.  The Governor’s Emergency Drought Proclamation and the immediate need to install Emergency Drought Salinity Barriers in three locations, including False River between Jersey Island and Bradford Island.  He presented a three-party agreement between DWR, RD 830 and ISD that is in draft form and proposed the Board establish an ad-hoc committee to work with General Counsel and the General Manager.  Director Scheer asked about the monitoring station and if it stays.  General Counsel agreed this is an item to be clarified.  Discussion was held that the barrier would be removed in November.  Further discussion was held on the placement and storage of the temporary barrier rock in the winter months and consideration of storage on Jersey Island.   Discussion was held on the sheet piles, their location and to determine if they will become permanent.  Director Lauritzen asked the Board to consider how to make the District whole with the possible costs the barrier will cause the District.

After discussion, it was recommended to approve the lease in the form submitted to the Board at its April 1, 2014 meeting; appoint an ad hoc committee for the DWR lease of Chris Lauritzen and Michael Painter and empowered by this Board to approve or disapprove changes in the terms of the DWR lease from those on the form submitted to the Board; authorizes the President of the Board to execute the DWR lease in the form submitted to the Board with the changes approved by such ad hoc committee.

M/S D. Contreras, M. Painter and the Board voted to approve the Lease in the form submitted to the Board at its April 1, 2014 meeting; appoint an ad hoc committee for the DWR Lease of Chris Lauritzen and Michael Painter empowered by this Board to approve or disapprove changes in the terms of the DWR lease from those on the form submitted to the Board; authorizing the President of the Board to execute the DWR lease in the form submitted to the Board  with the changes approved by such ad hoc Committee. Approve Resolution No. 14-06 including the above additions.

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

 

            8C.      CONSIDERATION OF CANDIDATES RUNNING FOR SPECIAL DISTRICT REPRESENTATIVE TO SERVE ON THE LAFCO BOARD, REGULAR MEMBER AND ALTERNATIVE MEMBER POSITIONS 2014 THROUGH 2018.

Mr. Williams reviewed with the Board that the District’s representative to vote for the LAFCO Special District Representative is President David Huerta, with all other Directors as alternates.  He reviewed with the Board the candidates for the positions available.  Candidate statements are included in the Board packets.  He stated that Dwight Meadows is also a candidate.  Mr. Meadows has 25 years as a Board member of ISD.  Staff’s recommendation is to review the candidates, and determine direction for voting officer on how to vote on April 21, 2014. 

M/S C. Lauritzen, M. Painter and the Board voted unanimously to designate David Huerta, President of the Board, to represent the District and David Contreras, Chris Lauritzen, Michael Painter and Doug Scheer, members of the Board of this District, as alternates, and vote on the District’s behalf at the Special Districts Representative election for Dwight Meadows as Regular Member, and George Schmidt as alternate member to the CCC LAFCO on April 21, 2014. (B.O. 14-10)

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

. 

 

          8D.     CONSIDERATION OF SETTING PUBLIC HEARING FOR TRUNKLINE AND PLANT CAPACITY FEE INCREASE FOR FISCAL YEAR 2014/2015.

Mr. Williams reported that according to our Ordinance 21 and 02, ISD must consider adjusting its Trunkline and Plant Capacity Fees each year in accordance with the Engineering News Record (ENR) Annual Cost of Construction Index for the San Francisco Bay Area.  ISD considers the fee adjustments in May each year as there is a 60 day waiting period for the fee to become effective.    ISD has in the past used the March index, but has also directed staff to review the June ENR index and select the month, which yields the lowest rate increase. Staff’s recommendation is to set the Public Hearing for May 6, 2014 at the regularly scheduled Board meeting, and direct the District Secretary to properly Notice and Advertise the Hearing.

M/S D. Contreras, C. Lauritzen and the Board voted to Set the Public Hearing for the Regular Meeting on May 6, 2014 to adjust the Trunkline and Plant Capacity Fees in accordance with Ordinance 21 and 02, and consider adjusting the Trunkline and Plant Capacity Fees in Accordance with the March and/or June ENR Cost of Construction Index, San Francisco Bay Area.  The Board directed the District Secretary to post, publish and mail the required notices. (B.O. 14-11)

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

            8E.      CONSIDERATION OF PREMIUM ONLY PLAN WITH ADP. (Res. 14-07)

Mr. Welty spoke to the Board regarding the conditions of a Premium Only Plan (POP).  Mr. Welty stated the Plan allows the deduction for health insurance premiums to be treated as pre-tax deductions for the employee for Federal and State income taxes and Medicare tax, resulting in tax savings to the employee.   He stated tax savings to the District offset the administrative costs of the plan.  Director Lauritzen asked about providing an opt-out clause of the employees.  Mr. Welty stated there are many creative opportunities for savings to the District and the employees.  Director Lauritzen asked the General Manager to send a memo to all staff asking what other options they may be aware of, and possibly what other District’s offer to benefit the District and staff.  

M/S M. Painter, D. Scheer and the Board voted unanimously to adopt the District Premium Only Plan (POP), adopt Resolution 14-07 approving the plan and authorize the General Manager to Sign the Record of Adoption.

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

 

          8F.      CONSIDERATION OF UPDATE TO POLICIES RELATED TO ISD USE OF VEHICLES, VEHICLE ALLOWANCE, PURCHASING POLICY AND STRATEGIC PLAN.

Mr. Williams stated, as part of the requirements to obtain recognition from the California Special Districts Association (CSDA) for the “District of Distinction”, part of the requirement is to review each of its policies within a year’s time of applying for the award.  The Policy committee is working to achieve this goal.  The committee has completed its review of 6 policies to date and have included those policies for review; 1) Vehicle Use Policy, 2) Vehicle Allowance Policy, 3) Use of Cell phone While Using a Motor Vehicle, 4) Vehicle Use Policy for the On-Call Pickup, 5) Employee Purchases from District Vendors and Use of Credit Cards, 6) Strategic Plan.

M/S D. Scheer, C. Lauritzen and the Board voted to adopt all policies presented as amended and updated by the committee.  (B.O. 14-12)

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

 

          8G.     APPROVAL OF AS-NEEDED GEOTECHNICAL SERVICES CONTRACT WITH HULTGREN TILLIS ENGINEERS.

Ms. Skrel stated the ISD needs geotechnical assistance throughout the year for soil analysis, soil compaction, advice on Jersey Island issues and other consulting items.  They have been working with us for the past 13 years and have working knowledge of the ISD lands and facilities. 

Director Huerta asked about a need for a RFP for their services.  Staff responded that for consulting services, the District is not required to competitively bid the contract, and that their knowledge and expertise is the key factor in selecting them.

M/S C. Lauritzen, M. Painter and the Board voted to approve the as-needed consulting agreement with Hultgren Tillis Engineers for on-going Geotechnical Assistance in an amount not to exceed $20,000 authorizing the General Manager to sign the agreement.  (B.O. 14-13)

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

 

          8H.     APPROVAL OF AS-NEEDED PROGRAMMING AND REPORT BUILDING SERVICES CONTRACT WITH WORK SMART AUTOMATION.

Ms. Skrel stated the ISD needs programming and report building services at the Water Recycling Facility through-out the year and would like to have a general as-needed consulting agreement in place with Work Smart Automation.  She added that it is based on needed changes implemented by the new NPDES permit reporting.

M/S D. Contreras, C. Lauritzen and the Board voted to approve the as-needed programming and report building consulting agreement with Work Smart Automation for an amount not to exceed $20,000 authorizing the General Manager to sign the agreement. (B.O. 14-14)

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

 

          8I.      SALARY SCHEDULE ADJUSTMENT TO INSTRUMENTATION AND ELECTRICIAN TECHNICIAN POSITION.

Mr. Mueller spoke to the board and asked for an 8-step salary range for the position.  He reported there were five applicants, none of which possessed all of skills needed.  He reported that on the previously lowered salary by the Board for the position, he was not able to acquire the fully experienced level of technician originally considered.  He stated two of the applicants had adequate levels of knowledge needed, and would be a good fit for the District.  Staff would like to offer the position to the top applicant and bring him in at a lower level, and invest in training for the individual to effectively grow our own high-level technician from within over the next several years. 

Director Contreras stated that as a representative of the Personnel/HR committee, staff has consulted with our personnel attorney on the expansion of the salary range, and the process of writing the offer letter.  Director Lauritzen asked if the candidates have electrical background and Mr. Mueller responded that not so much in instrumentation.  He would like to propose to send the candidate to 2-3 day classes identified.  The candidate cannot advance to step four until they obtain their completion of certification.  The District will pay for the shorter-term classes and training, while the applicant will be required to enroll in and complete their certificate program at an 18-month class at Los Medanos College. 

M/S D. Scheer, D. Contreras and the Board voted to extend the salary range of the newly created Electrical and Instrumentation Technician Position to eight steps with a salary range of $56,148 to $79,000 annually. (B.O. 14-15)

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

 

 

          8J.      APPROVAL OF INSTALLATION OF A DRINKING WATER WELL ON JERSEY ISLAND FOR THE CATTLE FOR A COST NOT TO EXCEED $40,000 (Res. 14-08)

Mr. Dal Porto gave a report to the Board of the status of the wells on Jersey Island used for watering cattle, watering at the shop, as well as watering at the caretaker’s home.  With the emergency drought conditions and the threat of salinity, he proposes the addition of a fresh water well for the purpose of drinking water for cattle.  Installation of this well on the west side of Jersey Island is necessary to protect our cattle investment.  The $40,000 cost includes drilling the well, a solar system to power the well. Storage tank and water troughs. 

M/S D. Contreras, C. Lauritzen and the Board voted to approve the installation of a drinking water well on Jersey Island for the Cattle for a cost not to exceed $40,000, approve Resolution No. 14-08 finding project exempt from CEQA and declaring work as an Emergency.

In favor: D. Contreras, D. Huerta, C. Lauritzen, M. Painter and Doug Scheer.  Opposed: None.

         

          8L.      APPROVE PURCHASE OF A NEW OR USED 24 FOOT ENCLOSED SAFETY TRAILER.

This item was pulled from the agenda.

 

 

9.         Staff Reports

Susan Walde – Ms. Walde reported we have a new report included in the Board packet.  This report includes reimbursements to the Board and staff in amount exceeding $100.

 

Jenny Skrel – Ms. Skrel reported that she prepared a staff report on the use of Recycled Water for the Board. 

 

Tom Williams – Mr. Williams reported he has been working with DWR on the agreement with RD 830 and ISD for the temporary barrier at False River.

 

10.      Board Members Advisory Reports

Advisory reports were included with the Board packet.

 

 

Director Painter – Director Painter voiced that he would like to attend the CASA legislative days in Sacramento on April 28 and 29, 2014. 

 

 

11.     Future Agenda Items for Consideration     

No Future Agenda Items were presented to the President.

 

 

12.      Adjournment

President Huerta adjourned the regular meeting at 9:25 p.m. until Tuesday, May 6, 2014 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.