MINUTES OF THE REGULAR
MEETING
OF THE BOARD OF
DIRECTORS OF THE
IRONHOUSE
SANITARY DISTRICT
June 3, 2014
The
Board of Directors of the Ironhouse Sanitary District (ISD) met in regular
session on Tuesday, June 3, 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 6:00 pm.
Roll
Call was taken with Directors Contreras, Huerta, Lauritzen, Painter and Scheer
present.
Pledge of Allegiance: Led
by Director Lauritzen
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
6:50 pm, the President called for a short recess.
At
7:00 pm, the Board reconvened in open session.
Action Resulting from
Closed Session
The President reported that
in the closed session the Board decided to retain John Ralls, Ralls & Niece
LLP, as the District’s attorneys to proceed with the District’s case against
Harrison Engineering, and gave direction in the closed session to Mr. Ralls.
2. Roll Call:
Directors present: David Contreras, David Huerta, C.
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
Marc
Haefke, Operations Superintendent
Joe
Mueller, Environmental/Process Compliance Manager
Dave Dal
Porto, Ranch/Levee/Reclamation Superintendent
Dave
Smith, Maintenance Superintendent
John Abdilla,
Instrumentation Technician
Interested
Parties: Susan Morgan,
Oakley, CA
Roni
Gehlke, Outreach Consultant
3. Introduction
of New Employee – John Abdilla
Mr. Abdilla, Instrumentation
Technician introduced himself to the Board.
He stated that he is very excited to be an employee of ISD. President Huerta on behalf of the Board
welcomed Mr. Abdilla to the Ironhouse staff.
4. Approval of Agenda
Mr. Henn
addressed the Board. He explained that
the District first received notice of a curtailment of its water rights from
the State only yesterday, after the agenda had been posted and distributed. There was an immediate need to take action,
since a grant application was due tomorrow and the curtailment was leading
staff to recommend an additional water well on Jersey Island and that it be
included in the grant application. Also,
one or more Water Curtailment Certification Forms are required to be filed by
Monday, and since they may lead to curtailment of the District’s water rights,
require immediate attention and action.
Mr. Henn asked the board to add an emergency agenda item.
M/S M. Painter, D. Contreras, and the Board voted
unanimously to approve the Agenda with the addition of emergency item 8F. Water
Rights Filing and Related Water Supply steps.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed: None. Absent: None.
5. Approval of the Minutes of the May
6, 2014 Regular Meeting
Approval of the Minutes of the May 13, 2014 Special
Workshop Meeting
M/S D. Contreras, D. Scheer and the Board voted to
approve the minutes of the May 6, 2014 Regular Meeting and the May 13, 2014
Special Workshop Meeting of the Board.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed:
None. Absent: 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. Approval of Posting & Publishing of
Ordinance No. 54/Order No. 14-18 Trunkline and Capacity Fee Adjustments (B.O.
14-26)
C. Approval of
Posting & Publishing of 2014/2015 Sewer Service Charge Adjustment Public
Hearing (B.O. 14-27)
D. Acceptance
of Grant of Easement from Shea Homes Limited Partnership, a California
Corporation for Sanitary Sewer Easement, portion of Lot 141, as said lot 141 is
shown and so described on the official map of subdivision 7562, entitled,
“Cypress Lakes Phase 1A”. (Res. 14-10)
E. Acceptance
of Offer of Dedication from Shea Homes for Tract Name Bethel Island Road Force
Main – Bethel island Road between Cypress Lakes Pump Station 3 & Bethel
island Storage Ponds (Res. No. 14-11)
M/S M. Painter, C. Lauritzen and the Board voted to
approve the Consent Calendar.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed:
None. Absent: None.
8. Business
Before the Board
8A. PUBLIC HEARING AND
BOARD CONSIDERATION OF AN ORDINANCE AND ORDER ADJUSTING SEWER SERVICE FEE
(Ordinance No. 55, Order 14-28) ACTION ON PROPOSED SEWER USE FEE FOR FISCAL
YEAR 2014/2015.
Mr. Williams gave a brief presentation regarding the
publication of rates in the newsletter; newspaper, notice to interested
parties, and postings on website. He
reviewed with the Board the documentation publicized in the newsletter notice
to the public, outlining items mentioned regarding how the district is working
to keep the rate affordable to the ratepayer.
He stated that the Public Hearing is to set the annual Sewer Service Fee
for the District.
At 7:09 p.m. President Huerta opened the public
hearing.
Hearing no additional comments from those in attendance;
At 7:10 p.m. President Huerta closed the public
hearing.
M/S D.
Huerta, M. Painter and the Board voted unanimously to adopt Ordinance No. 55 and
Order No. 14-28 setting the Sewer Service Fee for FY 2014/2015 at $637 per EDU.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed:
None. Absent: None.
8B. CONSIDERATION OF
FISCAL YEAR 2014/2015 PROPOSED BUDGET.
Mr. Williams reviewed the budget and reviewed the
updates to the budget since the budget workshop held on May 13, 2014. Key items being: 1) Staff medical insurance
decreased by $40,800 assuming no increase in the staff monthly medical cap of
$1,738. 2) Decrease salaries and related expenses by $33,460 delaying hiring of
assistant GM from July 1 to September 1. 3) Increased consulting fees by
$150,000 for Jersey Island material removal. 4) Changes for the items above
resulted in a decrease in the net revenue test surplus from $343,370 to
$267,630.
Mr. Williams asked the managers to review each
department’s capital expenditures with the Board.
Discussion was held on the material removal from Lot 1
on Jersey Island. Discussion was also
held on the proposed cost to clean out the I parcel on the mainland
property.
Director Contreras stated that before the budget
workshop the finance committee had the reserves in good shape for the District
and the committee is very concerned with the additional costs being presented
by staff for clean-up of Lot 1 on Jersey Island and I parcel. Director Scheer asked staff to pursue
different options for the removal of solids from the I parcel. Staff explained that the costs associated
with the clean-up of the I parcel are expansion funds and part of the plant
abandonment costs.
Director Contreras asked staff to submit hard numbers
for the Jersey Island Lot 1 clean-up project.
Mr. Smith reviewed with the Board the metal building
for the shop area to cover and protect equipment from the elements.
Director Scheer stated that he did a tour of the
proposed project and feels the numbers need to be increased to cover the costs
for an adequate building. Mr. Smith
stated he has put together some numbers and is working on getting more detail
of the project. He will need to put the
project out to bid to get an actual bid from a contractor.
Director Lauritzen stated he has questions about the
financial impacts, the interest earnings and the cattle sales being shown as
gross revenue. He applauds staff for the
implementation of the solar project and reduction in the lab costs to the
District. He questions our current interest
earning and would like to have staff look for alternatives. Mr. Welty reported that he will be meeting
with a financial institution representatives to look for ways to increase the
District interest income.
Director Lauritzen asked if the 150 connections
projected is a realistic forecast.
Director Contreras asked if this budget was to be
adopted how would this leave our reserve account. He stated we are still off from our Reserve
Policy but we are starting to fund our Reserve accounts.
Mr. Williams clarified how the Cash reserve analysis changed
with the addition of the $150,000 operating expense for J. I. Lot 1 cleanup,
stating the Capital Expenditure Reserve would be decreased by $120,000 (80% of
the added expenditure) and the Rate Stabilization Reserve would be reduced by
$30,000 (20% of the added expenditure).
M/S D. Scheer, M. Painter and the Board voted to
approve the proposed FY 2014/2015 budget as submitted.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed:
None. Absent: None.
8C. CONSIDERATION OF
DRAFT LETTER FROM THE BOARD TO THE BAY DELTA CONSERVATION PLAN (BDCP)
PROPONENTS COMMENTING ON THE DRAFT EIR/EIS.
Mr. Williams
updated the Board with the new extension to July 29, 2014 of the submittal date
for the Letter to the Bay Delta Conservation Plan proponents commenting on the
Draft EIR/EIS. Director Contreras stated
that the letter is a very well written and has his support.
Director
Lauritzen stated this is a great draft letter.
He stated that it is important that the District submit the letter to
protect Jersey Island and the rate payers.
Staff stated the
letter will be brought back to the Board in July for final consideration by the
Board.
8D. CONSIDERATION
AND ADOPTION OF RESOLUTION 14-12, CALLING THE GENERAL DISTRICT ELECTION ON
NOVEMBER 4, 2014 FOR THE ELECTION OF DIRECTORS.
(Res. 14-12)
Mrs. Walde stated that ISD is an even year election and,
in accordance with the elections department, ISD Directors need to call for the
General District Election on November 4, 2014 and submit its request for Consolidation. The Cost to each candidate for having a candidate’s
statement published, the estimated candidate fee is $287.50 for 250 words of
text at the time of filing. The election
cost to the District will be determined by the elections department after the
election is held. Staff has allocated
$21,000 in the budget for election expense for FY 2014/15.
M/S M. Painter, D. Scheer and the Board voted to adopt
Resolution No. 14-12, A Resolution Ordering Even-Year Board of Directors
Election, Consolidation of Elections and Specifications of the Election Order.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed:
None. Absent: None.
8E. CONSIDERATION OF SPECIAL DISTRICTS
NOMINATION FOR VACANCY ON LAFCO FOR A REGULAR SEAT AND CONSIDERATION OF
ISD DESIGNATING A REPRESENTATIVE AND ALTERNATE REPRESENTATIVE OF THE DISTRICT
TO VOTE FOR SPECIAL DISTRICT REPRESENTATIVE.
(Res. 14-13).
Mr.
Williams reported that LAFCO sent a letter announcing a vacancy of the Special
District regular seat, which became vacant by the passing of Mr. Meadows. He stated that the Board would need to submit
a Resolution stating the ISD voting delegate and alternates and submit to LAFCO
by June 27, 2014 for voting at the Special District’s meeting on July 21, 2014.
M/S
M. Painter, D. Scheer and the Board voted to adopt Resolution No. 14-13
appointing the Board President, David Huerta, as the ISD voting delegate, and
Directors David Contreras, Michael Painter, Chris Lauritzen and Doug Scheer as
alternatives to vote for Special District Representative.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed:
None. Absent: None.
8F. Water Rights Filing and Related Water
Supply Steps.
Mr. Williams
explained the Board that the District received a letter of water curtailment from
the state. This item arose after the
agenda was posted and it is being addressed as an emergency item. The District holds pre-1914 senior water
rights. The letter from the State
indicates senior water right holders could have their water allotments reduced
in the near future if water quality and drought conditions worsen. If the state
curtails ISD’s ability to draw water from the Delta, we will have an emergency in
regards to providing drinking water for the cattle and irrigation of our pasture
land. The District, in response to the
drought, is currently in the process of adding a third water supply well (water
for the cattle) on the west end of the island.
Staff planned to begin a fourth well on the east side of the island next
year but, staff now requests the Board authorize staff to accelerate its
installation in response to the worsening drought, decreasing water quality in
the western delta, and the State’s possible impact to senior/riparian water
right holders. Staff estimates the cost of the fourth well,
including permitting, drilling, the pump, piping, and troughs, at $50,000 and
will use the Capital Expenditure Reserve funds. Fresh water is important for
the health of the cattle.
Director
Lauritzen asked about possible grants to help with the overall recycled water
program. Ms. Skrel stated our current
draft of the Water Recycling Feasibility Study shows the cost for the projects
investigated very expensive, and it is not cost effective at this time.
Mr. Dal Porto
discussed the salt testing we have done around the island, and the how the
water is becoming higher in electrical conductivity (EC). If water quality gets worse, it will become
unhealthy for the cattle and pasture and felt the fourth well was needed sooner
rather than waiting for a year.
Ms. Skrel stated
that the District is possibly eligible for a 75 percent reimbursement for the
cost of the wells, with a cost to the District of $7,000 for grant writing. Staff’s recommendation is to authorize the
Jersey Island Management Committee, Directors Painter and Lauritzen, to act on
behalf of the Board regard the process to meet the required process for the
curtailment to be submitted by Monday June 9, 2014, authorize the additional well
on the east end of Jersey Island, authorize the funds from the Capital
Expenditures Reserve and authorize staff to prepare the grant for reimbursement
of the two new wells.
M/S D.
Contreras, D. Scheer and the Board voted to authorize the Jersey Island
Management committee to act on behalf of the Board regarding the process to
meet the required process for the curtailment to be submitted by June 9,
2014. Authorize the second well to be
put in on Jersey Island and amend the FY 2014/2015 budget to include $50,000 in
Capital Expenditures for the well and $7,000 for grant writing in consulting
services.
In favor: D. Contreras, D. Huerta, C. Lauritzen, M.
Painter and D. Scheer. Opposed:
None. Absent: None.
9. Staff
Reports
Jenny Skrel – Ms. Skrel reported there was a $900 a month savings
on the PG&E bill for the administration and shop buildings due to the new
solar panels. The Solar panels for the
plant should be online in late June or early July.
Marc Haefke – Mr. Haefke reported that he and Mary Ellen attended
a membrane conference outside of Minneapolis.
They participated in round table discussions and were registered for
user groups that will be helpful to the Water Recycling Facility personnel going
forward.
Director Contreras asked
about the status of the Trojan UV system.
Mr. Haefke stated staff recently replaced two panels with updated circuit
boards. The new boards seem to be
working okay, as well as staff had recently implemented improvements to flow
control and have been able to reduce the number of UV channels that come on
line and the system and problems are occurring less frequently. In addition, the reduced number of UV lights
needed to treat the water has resulted in significant electrical cost savings.
Bob Henn – Mr. Henn reported
that Mr. Etzel has been preparing drafts on the BDCP comment letter. He is collecting comments from Mr. Dal Porto
and comments from the Board to add to the comment letter. Mr. Henn commented that regarding the State
drought, the curtailment notice is possibly a sign of things to come and things
could become very contentious. It is
important to relay to the public how ISD is conserving and recycling water. He thought it may be important for ISD to
remind people it is putting a good percentage of its high quality recycled water
back in the river system via its river discharge.
Director Contreras asked Mr.
Dal Porto about Asta Construction. Mr.
Dal Porto stated Asta Construction is the contractor working on the levee
project. Phase 1 of the trucking should
be finished next week and they are making progress with improving the slope on
the levee.
10. Board Members Advisory Reports
Director Contreras - Director Contreras reported
that the LAFCO meeting went well. The
MSR’s were all approved as well as the Fiscal Year budget.
Director Scheer – Director Scheer reported on the City
Council meeting. The Community garden
was approved.
Advisory reports were included with the Board
packet.
11. Future Agenda Items for Consideration
Director
Lauritzen asked staff to come up with a plan as to who we send a letter to use
or sell our recycled water. We as a
District need to find an opportunity in this time of drought to use this water. It has always been the vision of this Board
to have the best tertiary water for reuse.
Now, how do we get grants to put in purple pipe and sell our water? Do we contact local contractors,
municipalities? Do we put it on a barge
and move it where someone can use it? Let’s
do it!
12. Adjournment
President Huerta adjourned
the regular meeting at 9:20 p.m. until Tuesday, July 1, 2014 at 7:00 p.m. for
the next regular meeting in the Ironhouse Sanitary District offices at 450
Walnut Meadows Drive, Oakley, California.
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