Minutes of the ISD Board Meeting November 4, 2014

MINUTES OF THE REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE

IRONHOUSE SANITARY DISTRICT

 

November 4, 2014

 

The Board of Directors of the Ironhouse Sanitary District (ISD) met in regular session on Tuesday, November 4, 2014, in the Board meeting room at ISD’s offices at 450 Walnut Meadows Drive, Oakley, California.

 

1A.     Call to Order

President David Huerta called the meeting to order at 5:30 pm.

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

Pledge of Allegiance:             Led by Director Huerta

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

 

At 5: 39 pm, The President announced the Board would now go into Closed Session for agenda items 1C and 1B.

 

Closed Session To Consider:

          1B.     Closed Session Pursuant to Government Code Section 65957:

          Public Employee Performance Evaluation (General Manager)

 

          1C.     Conference with Legal Counsel-Anticipated Litigation

Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9 – one case.  

 

At 7:39 pm, the Board reconvened in open session.

 

            Action Resulting from Closed Session

The President reported that no action was taken in closed session.

 

Roll Call:

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

 

            Members absent:                    None

 

            Staff/Consultants

            Present:                                   Tom Williams, General Manager

                                                            Jenny Skrel, District Engineer

                                                            Susan Walde, District Secretary

                                                            Bob Henn, District Counsel

                                                            Michael Welty, Financial Officer

                                                           

            Interested Parties:                   Susan Morgan, Oakley, CA

                                                            Roni Gehlke, Consultant

                                                            Justin Williams, Mann, Urrutia, Nelson, CPAS & Associates, LLP

 

3.        Approval of Agenda

President Huerta asked for the staff report for Michael Welty be removed from the Consent Calendar.  M/S D. Contreras, C. Lauritzen, and the Board voted unanimously to approve the amended Agenda. 

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

 

4.       Approval of the Minutes of the September 23, 2014 Special Workshop and the October 7, 2014 Regular Meeting

M/S C. Lauritzen, D. Scheer and the Board voted to approve the minutes of the September 23, 2014 Special Workshop and the October 7, 2014 Regular Meeting. 

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

 

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

There were no comments from the public at this time.

 

6         Consent Calendar

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

 

            B.       Consideration of 2015 District Holidays.

 

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.

 

7.       Business Before the Board

 

          7A.     CONSIDERATION OF PRELIMINARY FISCAL YEAR END JUNE 30, 2014 ANNUAL FINANCIAL REPORT WITH INDEPENDENT AUDITOR’S REPORT FROM MANN, URRUTIA, NELSON, CPAS & ASSOCIATES, LLP. 

            Mr. Tom Williams introduced Justin Williams of Mann Urrutia Nelson, CPAs and Associates, LLP. Mr. J. Williams gave a presentation and overview of the audit process with ISD.  The process typically reviews controls, disbursements, payroll, and financial processes.  After ISD’s fiscal year closing, Mann Urrutia Nelson CPAs do testing of selected areas of the District’s operations to prepare an audited financial statement.  He gave an unqualified opinion and reported that the audit was a clear audit with no audit adjustments. 

He reported that the District had one significant deficiency and three recommendations given to staff as follows: 1) update the procurement policy, 2) formalize the hay sales process and 3) update the inventory pricing.  Mr. Williams stated that staff are in the process of updating the procurement policy. 

Director Scheer asked about the process of cattle and hay sales to employees and what is our policy on this.  Mr. Tom Williams stated that we do not sell cattle to employees, but we do offer hay to employees at the market price.  

Mr. Justin Williams stated there were no material weaknesses and overall it was a very clean audit.  He thanked ISD staff for being so prepared.

M/S D. Contreras, D. Scheer and the Board voted to accept the Annual Financial Report with Independent Auditor’s Report, Management Report and SAS Letter form the year ended June 30, 2014 as recommended by staff. 

 

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

 

            7B.     ADOPTION OF SALINITY POLLUTION PREVENTION PLAN.

Ms. Skrel stated that the Salinity Pollution Prevention Plan was tabled at the October Meeting to allow more time for Board review.  The District will be modeling our Ordinance after the Discovery Bay Ordinance recently adopted and the City of Brentwood will also be adopting one.

After the Board adopts the plan, staff will be working with the City of Oakley to develop an Ordinance specifically to fit our needs as an incentive for new development. 

Director Lauritzen asked about public awareness.  Ms. Skrel stated she is working with the Public Outreach Committee to write articles and publish in the newsletter, post on website and increase awareness at local public events.

Staff’s recommendation is to adopt the Salinity Pollution Prevention Plan.

M/S D. Contreras, C. Lauritzen and the Board voted to adopt the Salinity Pollution Prevention Plan.

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

 

          7C.     APPROVAL OF SCOPE OF WORK FOR RD 830 MARSH CREEK DELTA HABITAT ENHANCEMENT PROJECT.

Mr. Williams stated that in February 2014, the scope of work was submitted to the Department of Water Resources.  The RD 830 Marsh Creek Delta Habitat Enhancement Project Scope of Work (SOW) document; and ISD’s agreement with RD 830, requires RD 830 to seek ISD’s approval of certain steps prior to RD 830 proceeding.  RD 830 is presenting its SOW to ISD for approval and then RD 830 can submit to DWR for formal approval. 

Director Lauritzen asked about ISD water rights and are we giving up any rights.  Mr. Williams reported we have to re-route some PG&E lines and will still have access to water.

Director Lauritzen asked if the project will move along on schedule or will there be hick-ups.  Mr. Williams stated there could be some delays in the projects.

M/S M. Painter, D. Scheer and the Board voted to approve the RD 830 Marsh Creek Delta Habitat Enhancement Project Scope of Work as submitted.

 

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

 

          7D.     CONSIDERATION OF REVIEW AND UPDATES TO ISD’S BY-LAWS.

Mr. Williams stated that the policy committee has been working on changes and staff has been working with the attorney and recommended the item be tabled to the next meeting. 

 

            8.        Staff Reports

There were no additional reports given at the meeting.

 

 

 9.        Board Members Advisory Reports

There were no additional Advisory reports given at the meeting.

 

10.     Future Agenda Items for Consideration     

There were not future items for consideration at this time.

 

11.      Adjournment

President Huerta adjourned the regular meeting at 8:25 p.m. until Tuesday, December 2, 2014 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.