Minutes of the May 6, 2014 ISD Board Meeting

MINUTES OF THE REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE

IRONHOUSE SANITARY DISTRICT

 

 

May 6, 2014

 

The Board of Directors of the Ironhouse Sanitary District (ISD) met in regular session on Tuesday, May 6, 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 6:30 pm.

Roll Call was taken with Directors Contreras, Huerta, Painter and Scheer present; and Director Lauritzen absent.  

Pledge of Allegiance:             Led by President Huerta

 

President Huerta announced that the Board would go into the Closed Session shown as Item 1 on the meeting’s agenda.

 

Closed Session

Conference with Legal Counsel – Anticipated Litigation

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

 

At 7:30 pm, the President called for a short recess.

At 7:34 pm, the Board reconvened in open session.

 

            Action Resulting from Closed Session

The President reported that the Board gave direction to staff to seek an expert opinion.

 

 

2.        Roll Call:

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

 

            Members absent:                    Chris Lauritzen

 

Staff/Consultants present:      Tom Williams, General Manager

Jennifer Skrel, District Engineer

                                                            Susan Walde, District Secretary

                                                            Fred Etzel, District Counsel

                                                            Michael Welty, Financial Officer

                                                            Marc Haefke, Operations Superintendent

                                                            Joe Mueller, Environmental/Process Compliance Manager

                                                           

            Interested Parties:                   Susan Morgan, Oakley, CA

                                                            Al Adler, ABA Energy

        

         Introduction of New Employee – John Abdilla

Marc Haefke announced that Mr. Abdilla was unable to attend tonight but would attend the next meeting.                                                                       

 

3.        Approval of Agenda

M/S M. Painter, D. Contreras, and the Board voted unanimously to approve the Agenda with the slight rearranging of closed session item occurring after the pledge of allegiance, and the inclusion of the meeting minutes of March 19, 2014 for approval.

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

 

5.       Approval of the Minutes of the April 1, 2014 Regular Meeting

            Approval of the Minutes of the March 19, 2014 Special Meeting

M/S M. Painter, D. Scheer and the Board voted to approve the minutes of the April 1, 2014 Regular Meeting and the March 19, 2014 Special Meeting of the Board. 

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

 

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.       Approval of Posting & Publishing of 2014/15 Trunkline and Capacity Fee Adjustments (B. O. 14-17)

M/S D. Contreras, D. Scheer and the Board voted to approve the Consent Calendar.  In favor: D. Contreras, D. Huerta, M. Painter and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.

 

8.       Business Before the Board

 

8A.     PUBLIC HEARING AND BOARD ACTION ON PROPOSED ADJUSTMENTS ON PLANT CAPACITY AND TRUNKLINE CAPACITY FEES FOR FISCAL YEAR 2014/2015

Mr. Williams stated that this is our annual consideration for adjusting Trunkline and Plant Capacity Fees in accordance with the March edition of the Engineering News Record for the San Francisco Bay area. 

At 7:42 pm, President Huerta opened the Public Hearing.

Hearing no additional comments from those in attendance.

At 7:43, President Huerta closed the public hearing.

Director Contreras on behalf of the Finance Committee recommends going forward with adopting the increases.

M/S D. Contreras, M. Painter and the Board voted unanimously to approve the recommended increase to the Trunkline and Plant Capacity fees as noticed, and adopt Ordinance No. 54 and Order No. 14-18 implementing the fee increases effective July 7, 2014.

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

 

            8B.      CONSIDERATION OF AN ORDINANCE AND ORDER ADJUSTING TRUNKLINE CAPACITY, AND PLANT CAPACITY FEES (Ordinance 54 Order 14-18).

Mr. Williams stated that the purpose of Ordinance No. 54 and Order No. 14-18 is to state what the FY 2014/2015 rate for Trunkline and Plant Capacity Fees will be and, as adopted by the Board in Item 8A.   

M/S M. Painter, D. Contreras and the Board voted unanimously to accept the proposed increases on plant capacity and Trunkline capacity fees for fiscal year 2014/15 effective July 7, 2014.  The Board designated the District Secretary to publish a summary notice of the Ordinance to adopt the increase.  (Ordinance No. 54 and Order 14-18). 

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

 

8C.      CONSIDERATION OF A THREE-YEAR EXTENSION OF THE OIL AND GAS LEASE BETWEEN ISD AND ABA ENERGY CORPORATION. Res 14-09)

Mr. Etzel informed the Board that ABA Energy is seeking a three-year extension of the existing Oil and Gas Lease between ISD and ABA Energy Corporation.  Mr. Al Adler, President of ABA Energy gave a brief report on the existing history between ISD and ABA Energy.  He gave an overview of the history and future potential of the industry.  Staff’s recommendation is to extend the lease for an additional three years, which would extend the lease through December 24, 2017. 

M/S M. Painter, D. Contreras and the Board voted unanimously to approve Resolution 14-09 approving the Modification Agreement and authorize the Board President to sign the Modification Agreement. 

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

 

          8D.     CONSIDERATION OF DRAFT LETTER FROM THE BOARD TO THE BAY DELTA CONSERVATION PLAN (BDCP) PROPONENTS COMMENTING ON THE DRAFT EIR/EIS.

Mr. Etzel reported on the meeting at Contra Costa Water for the BDCP preparedness that he, Board and staff attended.  He reported that the deadline for submitting comment letters to the state is June 13, 2014.  Mr. Etzel asked for final comments from staff and Board.  Mr. Williams reported that the latest information from DWR is to begin installation of the rock barriers on July 14 or 15^th, 2014.  Mr. Dal Porto will be commenting on mapping on prime farmland.  Mr. Etzel hopes to have a final letter for Board approval at the June meeting.  The Board directed staff to continue the reviewing the DBCP documents, continue collaborating with other interested parties and resubmit the draft letter for Board approval at the regular meeting on June 3, 2014.

 

            8E.      REVIEW AND DISCUSSION OF THE REVENUE/INCOME PORTION OF THE PROPOSED FY 14/15 BUDGET

Mr. Williams explained the Board had shown an interest in reviewing the budget well ahead of our June adoption date.  Discussing the revenue/income portion of the budget in early May gives the Board the opportunity to provide input to the Finance committee and staff ahead of the scheduled Budget Workshop May 13, 2014.  Mr. Welty reviewed the rate analysis with the Board.  He reviewed the revenue items starting with the service charge, and proceeded to the cattle and farming income. 

Director Scheer asked about the lease on Jersey Island for the Salinity barrier.  Mr. Williams stated that the costs to the District would equal the income.  Director Painter asked how the levee improvements for the rock barrier are paid.  Mr. Williams explained that Reclamation District 830 is reimbursed for the levee improvements.

Mr. Welty reviewed the cash reserves as of the end of FY 13/14 and the end of FY 14/15.  He explained that the Finance Committee added a Rate Stabilization reserve in accordance with the adopted policy for unrestricted designated financial reserves.  He noted that the draft budget passes the balance requirement for the net of Revenue Analysis. 

Director Contreras thank Mr. Welty, Mr. Williams and staff for getting the numbers together and providing the budget to the Board.

 

          8F.      APPROVE PURCHASE OF A NEW 16 FOOT ENCLOSED SAFETY TRAILER.

Mr. Smith presented a slide presentation of the current safety trailer in detail showing the inadequacies and extent of equipment needed for staff in confined space project work areas.  He showed how the trailer does not include restrooms facilities for staff.  He asked the Board to consider the authorization to bid for a 16’ safety/cargo trailer not to exceed $25,000.

M/S D. Contreras, D. Scheer and the Board voted unanimously to authorize the General Manger to bid and purchase a new 16’ safety/cargo trailer, not to exceed $25,000, using Capital Expenditures Reserve funds. 

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

 

          8G.     CONSIDERATION TO SET THE HEARING FOR SEWER SERVICE CHARGE INCREASE FOR FISCAL YEAR 2014/2015.  (Approve Notice to Set Hearing).

Mr. Williams reported that the District is setting the hearing date of June 3, 2014 to consider increasing the Sewer Service charge for FY 2014/2015. 

M/S D. Contreras, M. Painter, and the Board voted unanimously at accept the proposed sewer use charge for purposes of the notice and set June 3, 2014 for the public hearing on the said rate adjustment.  The hearing shall be held at the time and place of the regular meeting held June 3, 2014.  The District Secretary was directed to post and publish the required notices.  B.O. 14-20

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

 

          8H.     CONSIDERATION OF UPDATE TO POLICIES RELATED TO ISD FINANCIAL RESERVES, TRUNKLINE FEE CREDIT AND REIMBURSEMENT, NO VIOLENCE IN THE WORKPLACE AND BUSINESS WITH BOARD MEMBERS. 

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 continuing work to achieve this goal.  The committee has completed its review of five policies this month (eleven total) and have included those policies for review: 1)Unrestricted Designated Financial Reserves (with edits), 2) Restrict Financial Reserves, (with no changes), 3) Policy on Credits and Reimbursements For Sanitary Sewer Collection Facilities Construction, (with no changes), 4) Policy Against Violence in the Workplace, (with edits), 5) Policy On Doing Business with Board Members (suggest omitting).

M/S M. Painter, D. Contreras and the Board voted unanimously to approve the submitted updates to the following policies; 1) Unrestricted Designated Financial Reserves (with edits), 2) Restricted Financial Reserves, with no changes, 3) Policy On Credits and Reimbursements For Sanitary Sewer Collection Facilities Construction, with no changes, 4) Policy Against Violence In The Workplace, with changes and 5) deleting the Policy On Doing Business With Board Members.  B.O. 14-21.

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

 

          8I.      AUTHORIZE ADDING $15,500 FOR CARETAKER TRAILER FOR A FRONT PORCH ADDITION.

Mr. Williams reported that the cost to date on the caretaker mobile home is $87,024, with the budget maximum of $92,000.  In order to provide a front porch structure he is asking the Board to approve up to an additional $16,000 ($15,500 for construction of the Jersey Island caretaker home porch, deck and roof structure, plus a $500 contingency) for a new maximum amount of $108,000. 

Director Contreras asked if this addition was part of the original plan for the caretaker.  Director Painter said that this item was necessary to keep the Moss family whole with what existed at the previous home.  

M/S M. Painter, D. Contreras and the Board voted unanimously to approve an additional $16,000 (15,500 plus a $500 Contingency) for construction of the Jersey Island caretaker home porch and roof structure.  B.O. 14-22.

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

 

          8J.      RATIFY CONTRACT AMOUNT FOR DEMOLITION OF MAINLAND PROPERTY OF BARN, CARETAKER HOME, CORRAL, CISTERN AND AERATORS APPROVING ADDITIONAL AMOUNT OF $1,000. 

Ms. Skrel reported to the Board that the lowest responsible responsive bid for demolition and salvage of the barn, home, corral, cistern and aerators came in over the Board approved amount of $30,000.  Staff’s recommendation to the Board is to ratify the award of the project to PARC Services, Inc. in the amount of $31,000.

M/S M. Painter, D. Contreras and the Board voted unanimously to ratify the award of the demolition and Salvage of Barn, Home, Corral, Cistern, and Aerators project to PARC Services, Inc. in the amount of $31,000.  B.O. 14-23.

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

 

          8K.     APPROVAL FOR PAVEMENT REHABILITATION AROUND EFFLUENT STORAGE PONDS.

Ms. Skrel stated to the Board that after the plant is complete, portions of the levee roads around the effluent storage ponds are in poor shape and need repair. 

M/S D. Contreras, D. Scheer and the Board voted unanimously to authorize the General Manager to sign a contract with the lowest responsible responsive bidder for a cost not to exceed $66,000 for pavement rehabilitation around the effluent storage ponds.  B.O. 14-24. 

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

 

          8L.      APPROVAL FOR REHABILITATION OF NINE MANHOLES.

Ms. Skrel presented to the Board nine manholes near Creekside Way that need rehabilitation due to hydrogen sulfide causing deterioration. 

Director Contreras asked about the plastic coating manhole repairs, T-Lock liners, and staff stated that they would not be a good use for this project.  Director Scheer suggested staff continue with the process we have been using. 

M/S M. Painter, D. Scheer and the Board voted to authorize the General Manager approve the contract with the lowest responsible responsive bidder for a cost not to exceed $28, 000 for manhole rehabilitation.  B.O. 14-25. 

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

 

9.         Staff Reports

Tom Williams – Mr. Williams reported he attended the CASA Public Policy Forum in Sacramento on April 28 and 29, 2014. It was well attended, had great speakers and provided opportunities for visits with our political representatives. 

 

10.      Board Members Advisory Reports

Director Contreras stated that he handed out his report to the Board and staff.  He reported on the CCSDA meeting with Dwight Meadows elected as the Special Districts representative and George Schmidt as the alternative representative to serve on the LAFCO Board.  Candice Andersen Supervisor of District II was spoke at the meeting.

 

Advisory reports were included with the Board packet.

 

Director Painter – Director Painter handed out a report on the CASA legislative days.  He attended along with Director Huerta and General Manager Tom Williams.  The first day started with a speaker who trains congressional representatives in writing bills.  They were able to watch Assemblyman Jim Frasier in action as he presented a bill he drafted in front of the transportation committee.  He reported that it was a very informative and educational opportunity to interact and see the legislative process at work. 

 

11.     Future Agenda Items for Consideration     

No Future Agenda Items were presented to the President.

 

 

12.      Adjournment

President Huerta adjourned the regular meeting at 9:15 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.