Minutes of the ISD April 7, 2015 Board Meeting

MINUTES OF THE REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE

IRONHOUSE SANITARY DISTRICT

 

April 7, 2015

 

The Board of Directors of the Ironhouse Sanitary District (ISD) met in regular session on Tuesday, April 7, 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 7:00 pm.

 

          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

                                                            Michael Welty, Financial Officer

                                                Dave Dal Porto, Ranch, Levee, Reclamation Superintendent

                                                            Rick Vargas, Operator

                                                            Walter Haynes, Operator

                                                            Shana Whitford, Admin. Assistant

                                                            Chris Christean, Operations Supervisor

                                                            Brian Connelly, Maintenance Worker

                                                            Dominick Gardiner, Maintenance Worker

                                                            Jack Ossowski, Maintenance Worker

                                                           

            Interested Parties:                   Paul Marshall, Department of Water Resources

                                                           

            Pledge of Allegiance:              Led by Shana Whitford

 

2.       STAFF ACKNOWLEDGEMENTS

          Employee Service Awards       

Roshana Whitford and Jennifer Skrel, Ten-Year Service Awards

Mr. Phil Batchelor acknowledged Ms. Whitford for her interpersonal people skills and years of service to the District. Mr. Batchelor and President Contreras on behalf of the Board presented Ms. Whitford with a 10-year service award and thanked her for her service to the District.

Mr. Batchelor acknowledged Ms. Skrel for her commitment to the District recognizing the projects she has designed as in-house Engineer.  Mr. Batchelor and President Contreras on behalf of the Board presented Ms. Skrel with a 10-year service award and thanked her for her dedication and service to the District.

 

 

Introduction of New Employees – Enrique Vargas, Operator and Walter Haynes, Operator.

Mr. Chris Christean, Operations Supervisor introduced Rick Vargas who volunteer at ISD for 8 months during his completion of his education.  Rick has two years’ experience in the field and is an Operator III. 

The Board welcomed Mr. Vargas to the District.

Mr. Christean introduced Walter Haynes who has had 10 years’ experience in the wastewater field.  Mr. Haynes is happy to be here and the Board welcomed him to the District.

 

3.       APPROVAL OF AGENDA                                                      

M/S D. Scheer, 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.

 

4.       APPROVAL OF THE MINUTES of the March 3, 2015 Regular Meeting of the Board.

M/S S. Morgan, D. Scheer and the Board voted to approve the minutes of the February 3, 2015 Regular Meeting of the Board. 

In favor: D. Contreras, C. Lauritzen, S. Morgan, 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 public comments.

 

6.       CONSENT CALENDAR -

          6A.    Approval of Payment Order, Report on Financial Position & Operating Performance.

M/S M. Painter, C. Lauritzen 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.

 

7.       BUSINESS BEFORE THE BOARD                                         

           

          7A.     CONSIDER APPROVAL OF LEASE TO DEPARTMENT OF WATER RESOURCES OF ISD AND RD 830 LANDS FOR DROUGHT EMERGENCY TEMPORARY ROCK BARRIER FOR WEST FALSE RIVER, JERSEY ISLAND.

Mr. Henn reported that the Lease is in better condition than when the staff report was prepared.  He provided the Board with copies of a marked version of a revised draft dated April 7, 2015 showing the changes in the Lease. He gave the Board an update of the Barrier Lease and the progress with DWR in aggressively working to resolve the issues in the draft.  DWR has agreed to reimburse RD 830 for the $300,000 of additional costs of the last year’s levee strengthening program. Mr. Henn also called the Board’s attention to the addition of a Project Storage Area shown on the revised exhibit B-2.

            The project started more than one year ago.  It was to have been a 10 year lease. It is now apparent that DWR wants to be able to continue the barrier project indefinitely after the 10 years.  Negotiation of an easement doing that has been deferred, and the Lease preserves each party’s freedom to agree or disagree on an easement. The Lease contains provisions about what happens to the Levee sheet pile wall and the river sheet pile wall (called the Abutment in the lease) if agreement is not reached on an easement by the end of the 10 year life of the Lease.  At the end of the 10 year period, ISD would like DWR to cut the Abutment down to ground level.  DWR is unwilling to do that, and instead doesn’t want to cut the barrier down to ground level until after the end of its useful life.  ISD is seeking reimbursement for the costs of moving the cattle and providing a haul road; DWR is reviewing ISD’s submittal.   

            There was discussion on the responsibility for levee damage.  DWR has said that it will store the Barrier’s rocks off site when not in use for the barrier, and so that will avoid on-Island storage and consequent risks that the weight could pose to the levee and the surface of the Island.  President Contreras addressed the Board’s concerns of the sheet piling causing damage to the levee and being covered by the indemnity. 

            Mr. Paul Marshall of DWR addressed the Board’s concerns.  DWR and ISD are working on continued negotiations.  He gave an update of the status of the drought and the timing of the installation of the barrier and addressed the Board’s concerns. 

            Director Lauritzen asked if the barrier is planned to be installed more than 3 times in the next 10 years.  Discussion was held on the future of the barrier.

            Mr. Henn stated that staff recommend seeking resolution of the monies owed by DWR to RD 830 and ISD before ISD and RD 830 sign and deliver the Lease to DWR.  Staff are also proposing that the Board adopt the revised Resolution giving authority to the Jersey Island ad hoc committee of Mike Painter and Chris Lauritzen to review and approve changes in the lease after the April 7 Board meeting and to authorize the President to sign the Lease.

            M/S M. Painter, C. Lauritzen and the Board voted to direct staff to seek resolution of the monies owed by DWR to RD 830 and ISD before ISD and RD 830 sign and deliver the Lease to DWR, giving authority to the ad hoc committee of Directors Painter and Lauritzen to review and approve changes in the lease and authorize the President to sign, and adopting Resolution No. 15-02 approving the lease to the Department of Water Resources of a portion of Jersey Island located on the south bank of False River for the False River Rock Barrier.  

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

 

          7B.     GENERAL MANAGER RECRUITMENT UPDATE.

President Contreras, on behalf of the ad hoc committee on recruitment, gave a report on the status of the General Manager recruitment.  Mr. Ives submitted a written report.  President Contreras stated that April 23, 2015 will be a special meeting for and May 15, 2015 has been scheduled for the interview process. 

 

          7C.     CONSIDERATION OF DESIGNATED SIGNERS ON DEPOSITORIES, PUBLIC AGENCY RESOLUTION FUNDS TRANSFER ON ORAL INSTRUCTIONS, BANK DEPOSITOR AGREEMENT AND CONTRACT FOR DEPOSIT OF MONIES.

Ms. Walde reported that the signature cards need to be updated due to changes in staff and Board members.  The updated would be to remove Mr. Tom Williams and David Huerta and add Susan Morgan. 

M/S M. Painter, D. Scheer and the Board voted to approve three proposed changes included in Board Order 15-21 authorizing the removal of David Huerta and Tom Williams and the addition of Susan Morgan as authorized Signers.

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

 

 

 

          7D.     PROPOSED LEVY OF FIRE PROTECTION ASSESSMENT BY THE EAST CONTRA COSTA FIRE PROTECTION DISTRICT.

Ms. Skrel stated the number of assessments has been revised to 7 parcels.  Should the Board authorize the levy of the East county Emergency Fire Response and prevention Assessment by the East contra Costa Fire Protection District on the seven parcels owned by Ironhouse Sanitary District (ISD) in the annual amount of $747.93 for a period of five years for a total sum of $3,739.65. 

Director Morgan stated the assessment is a general benefit treated as a special benefit.  Director Lauritzen stated the Fire District has run out of money.  If we don’t support them short term they will have to shut the doors on two stations. 

M/S C. Lauritzen, D. Contreras  proposed to direct the President to vote in favor of the Fire Suppression Assessment by so indicating on each of the seven Official Assessment Ballots and direct staff to return these ballots so that they are received prior to the close of the ECCFPD public hearing on April 27, 2015. 

In favor: D. Contreras and C. Lauritzen.   Opposed: M. Painter, S. Morgan and D. Scheer.  Absent: None.  Motion Failed.

 

          7E.     SETTING PUBLIC HEARING FOR PLANT CAPACITY AND TLC INCREASE FOR FY 2015/2016.

Ms. Skrel reviewed with the Board the fee increases based on the March index of the ENR.  In accordance with ISD ordinance No. 21 and 22, 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.  Staff recommend the Board review the material and set the hearing for May 5, 2015, and direct the District Secretary to Notice and Advertise the Public Hearing. 

M/S M. Painter, D. Scheer and the Board voted to set the Public Hearing for May 5, 2015 and direct the District Secretary to Notice and advertise the Public Hearing.

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

 

          7F.     APPROVE NOTICE FOR PUBLIC HEARING FOR INSIDER NEWSLETTER.

Ms. Skrel reported the Outreach Committee recommended the notice for the sewer service charge be published in the Insider Newsletter.  The finance committee has approved a fee of $658 be noticed for the hearing.  The newsletter is scheduled to be delivered to users in late April 2015.  Staff recommends the Board approve the notice that will appear in the Insider Newsletter.

Discussion was held to add a bullet to the notice to upon recommendation of the Outreach Committee. 

M/S S. Morgan, D. Scheer and the Board voted to approve the Notice of Public Hearing on Setting the Sewer Service Charge for 2015/16 and publish in the Insider Newsletter in April 2015.

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

 

          7G.     SETTING DATE FOR BUDGET WORKSHOP.

Mr. Phil Batchelor suggested a date of May 19, 2015 to hold a Budget Workshop of the Board.  Discussion was held and the date and time set for the Workshop was Thursday, May 19, 2015 at 1:00 p.m.

 

 

          7H.     RATIFY THE AGREEMENT WITH CARLSON, BARBEE & GIBSON FOR GARDENIA AVENUE SEWER IMPROVEMENTS.

Ms. Skrel gave the details of the two trouble spots in the vicinity of Main Street and Bridgehead Road and Main Street and Live Oak Ave.  It is imperative that these trouble spots be corrected.  Carlson, Barbee and Gibson have the background to efficiently prepare the necessary plans and specs were requested in March 2015 to begin the work.  Staff is recommending the Board ratify the agreement with Carlson, Barbee & Gibson for the Bridgehead and Main Street Sewer Improvements for an amount not to exceed $21,500 for preparation of Plans and Specs for the Bridgehead and Main Street Sewer Improvements.

M/S D. Scheer, M. Painter and the Board voted to ratify the Agreement with Carlson, Barbee and Gibson for an amount not to exceed $21,500.

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

 

          7I.      CONSIDERATION OF AGREEMENT WITH CARLSON, BARBEE & GIBSON FOR THE BRIDGEHEAD AND MAIN STREET SEWER IMPROVEMENTS

Ms. Skrel reported that there are numerous trouble spots in the vicinity of Gardenia Avenue and Wildcat Way.  From Survey work done by Carlson, Barbee and Gibson, there appears to be several reaches of sewer that were installed with a reverse slope.  This is causing sewage to backup into the manholes.  The collection crew routinely monitor the area and clean this area. It is anticipated that over 1500 feet of 15-inch sewer may need to be replaced.  Carlson, Barbee and Gibson has completed the survey work and is poised to begin work immediately to determine a fix for the issue then prepare plans and specs.  Staff recommends the Board approve the Agreement with Carlson, Barbee and Gibson for an amount not to exceed $36,000 for Gardenia Avenue Sewer Improvement project.

M/S M. Painter, D. Scheer and the Board voted to approve the Agreement with Carlson, Barbee and Gibson for an amount not to exceed $36,000.   

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

 

          7J.      CONSIDERATION OF PROPOSED HAY CROP, PRODUCTION, USAGE AND SALES POLICY.

Mr. Welty spoke to the Board that during the FY 13/14 year-end financial audit, the auditors noted that ISD did not have a formal written policy over the hay crop production process as mentioned in their management report to the Board.  The proposed policy meets the recommended requirements and provides an effective operating policy and enhances ISD’s controls related to the production, usage and sale of hay. 

Mr. Batchelor stated to remove the appearance of a conflict of interest, he has added a pricing and sales updated clause to the policy.  ISD will contract with a licensed and bonded hay broker to evaluate three times a year the value of the hay crop.  The broker will be selected after phone interviews with at least three candidates.  The broker will determine a FOB price for each type, quality, and bale size of hay.  The cost of a broker to the District is estimated to be $500.00 each evaluation at a cost not to exceed $1,500.00 a year.  

M/S M. Painter, D. Scheer and the Board voted to adopt the ISD Hay Crop Production, Usage and Sales Policy with the inclusion of the Hay Crop Pricing and Sales clause.

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

8.       STAFF REPORTS 

Phil Batchelor – Mr. Batchelor thanked the Board for inviting him to join the district.  He very much enjoys working with the ISD staff.  He is working with the Department Heads on developing respect, integrity and a workplace of excellence.  He will be meeting with all the employees this next week and will be preparing an assessment to present to the Board with updates each month.

 

Dave Dal Porto – Mr. Dal Porto reported that DWR would have a possible curtailment of water.  He discussed the Pre 1914 Water Rights held by ISD and staff is waiting for curtailment notices.  Discussion was held on the effects it would have on the Island and how the cattle operation would be managed using well water.  He reported that a 25% curtailment would be manageable, but a full curtailment would affect the crops to feed the cattle.  It was asked if we have the delivery system to use reclaimed water on island.  Our permit has a clause to expand on Island and staff will need to meet conditions to get approval from SWRCB. 

Director Painter asked staff to look into the option of being able to sell our water rights that ISD owns.  Staff will do some research and get back to the Board.

 

9.       BOARD MEMBER ADVISORY REPORTS

Susan Morgan – Director Morgan welcomed Mr. Batchelor to ISD.

 

Chris Lauritzen – Director Lauritzen reported that he attended the BIMAC meeting in Bethel Island and the RD 830 meeting.  He reported on the EC’s on Jersey Island.  He attended the meeting in Walnut Grove on the Emergency Barriers.  There is grave discern.  DWR needs to do more outreach in the Community of Bethel Island.

 

Michael Painter – Director Painter reported on the Science week and the event being held at ISD on Saturday, April 25^th.  He invited all to come attend.

 

Doug Scheer – Director Scheer reported he has been busy with the Budget Committee, the Capital Improvements Committee and the HR/Personnel committee.

 

David Contreras – Director Contreras reported that he has been working with the Consultant and attorney for the process of hiring a new GM.  He will be working with Mr. Batchelor and the board for the review on April 23, 2015.  CASA will be holding legislative days on April 27^th and for any Board members interested in attending to contact the District Secretary.

 

Chris Lauritzen – Director Lauritzen stated that with the notice from the Governor he is concerned we missed the boat in helping the drought with our recycled water.  60 million gallons of water go in the river and what have we done.  How do we get the word out that we have this water.  We cannot afford to use potable water for construction and street sweepers.  Now is the time to possibly generate some revenue.

Director Contreras stated that we need to put our barriers down and work together as agencies.  He would like staff to work with Mr. Batchelor to bring together the local agencies.

Director Lauritzen asked staff to work with Assembly member Jim Frazier to get help on the State level.

 

 

10.     FUTURE AGENDA ITEMS FOR CONSIDERATION

There were no future agenda items at this time.

 

11.     ADJOURNMENT

President Contreras adjourned the regular meeting at 8:55 p.m. until Tuesday, May 5, 2015 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.

 

 

 

 

APPROVED                                                                       ____________________________           

                                   President                                                          District Secretary

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