MINUTES OF THE
REGULAR MEETING
OF THE BOARD OF
DIRECTORS OF THE
IRONHOUSE
SANITARY DISTRICT
June 2, 2015
The Board of Directors of the Ironhouse
Sanitary District (ISD) met in regular session on Tuesday, June 2, 2015, in the
Board meeting room at ISD’s offices at 450 Walnut Meadows Drive, Oakley,
California.
1. Call to Order
President
David Contreras called the meeting to order at 6:18 pm.
Roll
Call was taken with Directors Contreras, Lauritzen, Morgan, Painter and Scheer
present.
The
pledge of allegiance was led by Bob Henn.
At
6:20 p.m., President Contreras announced that the Board would go into the
Closed Session shown as Item 2 on the meeting’s agenda.
2. CLOSED
SESSION
2A.-CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957:
PUBLIC EMPLOYEE APPOINTMENT.
Title: General Manager
In
attendance All Directors, P. Batchelor, R. Henn, and J. Moore
2B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Paragraph (1) of Subdivision (d) of
Section 54956.9)
Name of case: Ironhouse Sanitary District
vs. Harrison Engineering
et
al (No. C13-010903).
At
6:35 p.m. J. Skrel joins meeting and J. Ralls via conference call.
At
6:48 pm, the Board reconvened in open Session and took a short Break.
At
7:00 pm, the Board reconvened.
3. Announcement of Action Taken in Closed Session, if any
There
was no reported action taken out of closed session.
Roll
Call
Directors present: David Contreras, C. Lauritzen,
S. Morgan, Michael Painter and Doug Scheer
Members absent: None
Staff/Consultants
Present: Phil Batchelor, Interim General
Manager
Jenny
Skrel, District Engineer
Susan
Walde, District Secretary
Bob
Henn, District Counsel
John
Moore, District Counsel
Michael
Welty, Financial Officer
Michael
McGormley, Ranch, Levee, Reclamation Supervisor
Chris Christean,
WRF Supervisor
Dominic
Gardiner, staff
Leon
Laucirica, staff
Interested Parties: Vanessa Perry, Councilwoman
4. APPROVAL OF AGENDA
M/S M. Painter, C.
Lauritzen, and the Board voted unanimously to approve the agenda.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent none.
5. APPROVAL OF THE MINUTES of the May 5, 2015 Regular Meeting of the Board.
M/S D. Contreras,
D. Scheer and the Board voted to approve the minutes of the May 5, 2015 regular
meeting with the corrections made by President Contreras.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, 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
public comments.
7. CONSENT CALENDAR -
7A. Approval
of Payment Order, Report on Financial Position & Operating Performance.
7B. Ratify
Financing of OPEB for FY 2014-15.
7C. Approval
of Posting & Publishing of 2015/16 Sewer Service Charge Adjustment Public
Hearing and Posting & Publishing of FY 2015/16 Budget Public Hearing (B.O.
15-33).
M/S C. Lauritzen, S.
Morgan and the Board voted to approve the Consent Calendar.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, 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. 59, Order 15-34) ACTION ON PROPOSED SEWER USE FEE FOR FISCAL
YEAR 2015/16.
Mr. Batchelor reported to the Board that in June,
2007 the District completed a Proposition 218 process that set the maximum
Sewer Service charge the District could charge at $680 to allow the plant to
operate. We have exceeded the time and
the reserves are under what they should be.
The proposed increase is below the maximum charge allowed. All revenue from the increase and the charge
will be used to meet District costs of providing sewer service.
The service charge proposes is $658, which is a $21
increase per EDU for FY 2015-16.
At 7:06 pm, President Contreras opened the
Public Hearing.
Hearing no additional comments from those
in attendance.
At 7:07 pm, President Contreras closed the
public hearing.
M/S D. Scheer, C. Lauritzen and the Board voted
unanimously to adopt Ordinance No. 59 and Order No. 15-34 setting the sewer
service charge for FY 2015/2016 at $658 per EDU, a $21 per EDU increase from FY
2014/2015 effective July 1, 2015.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8B. PUBLIC HEARING AND BOARD CONSIDERATION OF
ADOPTING FISCAL YEAR 2015/16 PROPOSED BUDGET.
Mr.
Phil Batchelor gave a brief breakdown of the budget:
Total
revenue of $13,120,591 that reflects an increase of $690,540 more than FY
2014-15 budget. Total expenditures of
$11,758,346 that reflect a decrease of $711,075 less than FY 2014-15
budget. No increase in staff that
remains at the same staff level as existed in the 2010-11 FY. Decrease of $287,237 in the cost of total
salaries and benefits less than FY 2014-15.
The
Board held a public workshop on May 19, 2015 for the budget and staff took the
steps recommended at the workshop to establish a 5- year forecast of revenues
and expenditures.
At 7:15 pm, President Contreras opened the
Public Hearing.
Hearing no additional comments from those
in attendance.
At 7:16 pm, President Contreras closed the
public hearing.
Director
Lauritzen asked staff how we determined the allocation of Capital Reserve Fund
into the four categories. Mr. Batchelor stated staff looked at the value of all
assets to determine allocation.
Director
Morgan commended Mr. Batchelor and staff on a very well prepared and detailed
report.
Director
Lauritzen asked about the Solar program.
He stated we have a $2.5 million system which was to be a $90,000 saving
to the District. He asked for an update.
Mr.
Batchelor stated staff are working on preparing a report with the status of the
solar operation.
Director
Painter asked about the dirt sales to DWR and when are we to expect revenue
from the project. Mr. Batchelor stated
staff are working with DWR on checking on the status of the easements and
potential environmental issues to go forward with the project.
Ms.
Skrel stated that CCWD will need to complete the project to pipe the canal
before the project can move forward.
There is a potential income of $200,000 in 2016 and $400,000 in
2017.
M/S D. Contreras,
C. Lauritzen and the Board voted to adopt the FY 2015-2016 Budget with the
recommendations submitted by Mr. Batchelor.
Prepare a replacement schedule for all district vehicles and equipment,
establish a schedule and funding reserve to assist in financing the replacement
of the WRF equipment, establish a maintenance and repair schedule for ISD’s
connection infrastructure system which includes 119 miles of wastewater
pipelines, 15 miles of Forcemain, trouble spots and maintenance to lift
stations. Establish a maintenance and
repair schedule for buildings, roads and office furnishings. Prepare a 5-year forecast of revenues and
expenditures. Revise the district’s
investment policy, explore all avenues to minimize costs and maximize revenue. Approve dividing the existing Capital reserve
fund into designations and proposed allocations. Approve the development of a 10-year CIP,
approve allocation of $1,069,200 to purchase nine capital items in the
budget. Approve allocation of $5,145,376
in operating reserve to finance operations for seven months. Suspend the existing reserve policy and allow
all year-end operating fund balances to be allocated into the severally
underfunded Capital Reserve Fund and approve an appropriation of $721,245 a
part of the FY 2015-16 recommended budget to go into the Capital reserve fund
and approve a 3% COLA for ISD employees effective July 1, 2015 and a 2%
adjustment effective January 1, 2016.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8C. CONSIDER APPROVING
ASSESSMENT OF IRONHOUSE SANITARY DISTRICT.
Mr. Batchelor
stated that he has had a very positive experience working at the District. He is working with the Department Heads to
build an environment of trust, respect, integrity and positive
relationships. The assessment includes a
comprehensive look at the fiscal, operational and organizational needs of the
District and the formulation of a list of recommended actions that should be
taken to improve the overall functioning of the District. He reported that he has met with all staff to
obtain the 202 items for the assessment.
He has been meeting on a weekly basis with the department to anticipate
spreading out over a realistic timeline to be complete. If the Board approves the assessment Items,
staff will bring back a status report each month. Mr. Batchelor was very complimentary of
Department Heads and staff who work for ISD.
M/S
S. Morgan, D. Scheer and the Board voted unanimously to accept and move forward
with the Assessment Plan.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8D. RATIFY IRONHOUSE
SANITARY DISTRICT ENTERING INTO THE DELTA LANDS VOLUNTARY CONSERVATION PROGRAM.
Mr. Batchelor
stated that the State Water Resources Control Board has indicated it will
likely issue curtailment notices for riparian water rights claimants in the
Delta sometime in 2015. The State
offered a volunteer program of a 25% reduction with the completed application
to be filed by the June 1st deadline. Mr. Batchelor state he signed the application
on May 29, 2015 on the Board’s behalf and is recommending the Board ratify our
application filed by the June 1st deadline reducing our diversion of
surface water by 25%.
Director Lauritzen
stated that with the implementation of the rock barrier, the current water
issues are very serious.
M/S M. Painter, C.
Lauritzen and the Board voted to Ratify Ironhouse Sanitary District entering
into the Delta Lands Voluntary Conservation Program.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8E. CONSIDERATION OF
SPECIAL DISTRICTS NOMINATION FOR VACANCY ON LAFCO FOR AN ALTERNATE SEAT AND
CONSIDERATION OF ISD DESIGNATING A REPRESENTATIVE AND ALTERNATE REPRESENTATIVE
OF THE DISTRICT TO VOTE FOR AN ALTERNATE SPECIAL DISTRICT REPRESENTATIVE. (Res. 15-05).
President Contreras reported that the
District received a letter from LAFCO announcing a vacancy of the special
district alternative seat formerly held by George Schmidt, and seeking
nominations to fill the unexpired term of the seat vacated, ending May 7,
2018. President Contreras asked if
anyone was interested in being nominated.
There being no interest, President Contreras stated that in the past,
the District appointed its president as the voting delegate and the other Board
members as alternates.
Ms. Morgan stated that Mr. Williams is
being shown as the voting candidate for RD 830 and staff stated that the RD 830
would need to appoint a trustee at their next meeting.
M/S D. Scheer, M. Painter and the Board
voted to appoint President David Contreras as ISD’s voting delegate, and
Directors Chris Lauritzen, Susan Morgan, Michael Painter, and Doug Scheer as
alternates at the July 20, 2015 election held at the Contra Costa Special
Districts Association meeting.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
9. STAFF REPORTS
Chris Christean – Mr. Christean reported that he issued a revised
staff report to the Board. He reported
that in April they received a violation for a missed sample and the other
violation is for high nitrates. The lab
person left early that day and the sample didn’t get picked up by the contract
lab. President Contreras asked why the
sample had not been picked up and Mr. Christean indicated that he had called in
the instruction to the lab, and he thought there may have been a
misunderstanding. President Contreras
suggested that written confirmation from the lab indicating receipt of ISD
request for sample pick up might help and would provide a good paper trail. Mr.
Christean stated that he has put new procedures in place since that incident and
that this suggestion would be added. Also,
the NPDES effluent nitrate limit is 10 and we had a test showing 11. Staff’s opinion is this exceedance was due to
the draining of the basin and ponding of residual sludge. Director Scheer asked about the status of the
cameras at the WRF. Staff will be
working on updating the equipment.
Bob Henn – Mr. Henn reported that Fred Etzel retired as of May
31, 2015. He introduced John Moore to the
Board and staff and stated that Mr. Moore will be helping with ISD and
attending Board meetings.
Mr. Henn has been working
with the adhoc committee for the hiring of a new General Manager. He has been working with Mr. Batchelor to
revise the GM contract and has revised the by-laws which will be included on
the July agenda.
10. BOARD
MEMBER ADVISORY REPORTS
Director Contreras – Mr. Contreras reported he and Director Lauritzen
attended the Diablo Water District meeting with their Board of Directors and
General Manager on April 16th and they verbally supported and approved
working with ISD and a Recycle Water Program.
The Board was very supportive of ISD’s proposed recycled water
program. The picture is clear that it is
a good time to move forward working together with other agencies for the future
of recycled water use.
He reported that he attended
the CASA legislative days in Sacramento.
They are working with the cosmetics industries on changing the bead
contents in their projects. Mr.
Christean doesn’t see it as a concern in our WRF process. CASA is working on source control and
stopping it at the source. Regarding
Recycled Water, Central Sanitary District asked for a shorter process to
provide water to industry.
11. Future Agenda Items for Consideration
Revisions to the By-Laws.
12. ADJOURNMENT
President Contreras
adjourned the regular meeting at 8:08 p.m. until Tuesday, July 7, 2015 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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