MINUTES OF THE
REGULAR MEETING
OF THE BOARD OF
DIRECTORS OF THE
IRONHOUSE
SANITARY DISTRICT
November 3, 2015
The Board of Directors of the Ironhouse
Sanitary District (ISD) met in regular session on Tuesday, November 3, 2015, in
the Board meeting room at ISD’s offices at 450 Walnut Meadows Drive, Oakley,
California.
1. Call to Order
Board
Secretary Susan Walde called the meeting to order and adjourned the meeting
from 6:00 p.m. to 6:30 p.m. After obtaining consent of all Board of Directors, President
David Contreras called the meeting to order at 6:37 pm.
Susan
Walde led the pledge of allegiance.
Present
were Directors: Contreras, Lauritzen, Morgan, Painter and Scheer. General Manager Chad Davisson and General
Counsel Bob Henn.
At
6:38 p.m., the meeting was adjourned to closed session for Item 2A on the
agenda.
2. Closed Session
A. Conference
with Legal Counsel – Anticipated Litigation
Initiation of
litigation pursuant to paragraph (4) of subdivision (d) of
Section
54956.9: (1 case)
At
7:05 p.m. The Board took a short recess.
At
7:08 p.m. The Board met in open session.
3. Report of Actions (if any) Taken in Closed
Sessions
President
Contreras reported that no action was taken by the Board in Closed Session.
Roll
Call
Directors present: David Contreras, C. Lauritzen,
S. Morgan, Michael Painter and Doug Scheer
Members absent: None
Staff/Consultants
Present: Chad Davisson, General Manager
Susan
Walde, District Secretary
Bob
Henn, District Counsel
Michael
Welty, Financial Officer
Jenny
Skrel, District Engineer
Interested Parties: Vanessa Perry, City of Oakley
4. 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.
5. APPROVAL
OF THE MINUTES of the October 6, 2015 Regular
Meeting and the October 20, 2015 Special Workshop Meeting of the Board.
M/S S. Morgan,
D. Scheer and the Board voted to approve the minutes of the October 6, 2015 Regular
Meeting and the October 20, 2015 Special Meeting of the Board.
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
comments from the public in attendance.
7. CONSENT CALENDAR -
7A. Approval
of Payment Order, Report on Financial Position & Operating Performance.
7B. Approval
of 2016 Holiday and Board Meeting Dates.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8. BUSINESS BEFORE THE BOARD
8A. ACCEPTANCE OF THE ANNUAL FINANCIAL REPORT WITH
INDEPENDENT AUDITOR’S REPORT, MANAGEMENT REPORT, AND SAS 114 LETTER FOR THE
YEAR ENDED JUNE 30, 2015.
Mr. Chad
Davisson 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 no significant deficiency and a recommendation to staff to
update the procurement policy and update the inventory pricing.
Mr. Justin
Williams stated there were no material weaknesses and overall it was a very
clean audit. He thanked ISD staff for their
assistance with the audit and being so prepared.
It was noted on
page two of auditors report, reference of City should be changed to District.
M/S M. Painter, C.
Lauritzen and the Board voted to accept the Annual Financial Report with
Independent Auditor’s Report, Management Report and SAS Letter from the year
ended June 30, 2015 with change of City to District.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8B. POND
MANAGEMENT PROPOSAL.
Mr. Davisson reported that the District uses a 33-acre
storage pond to store the treated recycled water for irrigation on Jersey
Island and as a source of water for the commercial truck filling station. The storage pond is overgrown with vegetation,
which is affecting the water quality and causing the pH of the water to exceed
the permit limitation of 9.0. Staff
obtained recommendations from two firms for weed control/removal. Staff recommends the Board consider approving
a contract with Aquatic Environments in an amount of $33,446 to mechanically
harvest the bulk of the vegetation from the pond followed with chemical
treatment to manage vegetation growth.
The item is not included in the budget and staff
recommends using the budgeted funds for the influent cleaning which was
completed with in-house staffing.
Director Contreras asked how long the vegetation
issue has been going on and Mr. Davisson stated it has been developing for a
couple of years. Discussion was held on
the control process of maintaining the ponds going forward. The ponds are about three feet deep and about
as low as we operate. Staff are keeping
the ponds low in preparation of a possible wet winter for water storage.
Director Lauritzen stated this is the first he has known of us having a pH
issue. We have to stay between 6.5 and below 9.
Ms. Skrel stated she worked with the water board to allow us a pH limit
of 9. Board discussion was held on the
water quality needed in the pond for the pH requirements and quality for
recycled water. Discussion was held on
the extent of work needed to maintain the pond.
M/S M. Painter, D. Scheer and the Board unanimously
voted to authorize staff to reallocate $50,000 from Line 5440.60 of the
approved FY 2015/16 budget, originally approved for cleaning of the influent
wet well to be used for vegetation removal and management in the north pond and
approve a contract with Aquatic Environments, Inc. in an amount of $33, 446 and
use discretion to use the balance of line item for maintenance. The Board directed staff to contact the Water
Board to increase the pH limit in the permit.
8C. UTILITY VEHICLE
PURCHASE FOR WATER RECYCLING FACILITY.
Mr. Davisson reviewed with the Board that the use of
a utility vehicle provides a needed resource for District staff to effectively
perform daily maintenance and repair work at the WRF. The Board approved an allocation of $30,000
for the purchase of a utility vehicle and tools in the FY 2015/16 budget. Staff obtained quotes for pre-owned vehicles
but did not attempt to negotiate a lower price.
Staff recommends authorizing the purchase of a 2016 Ford F250 with a
utility bed from Downtown Ford Sales for a CMAS certified price not to exceed $29,
488 and appropriate $5,000 for the purchase of tools and equipment. The Board recommended staff consider
purchasing a new 2015 if available.
M/S D. Contreras, M. Painter and the Board voted
unanimously to approve the purchase of a new 2015 or 2016 Ford F250 with a
utility bed from Downtown Ford Sales for a CMAS certified price not to exceed
$29,500 and appropriate $5,000 for the purchase of tools and equipment.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8D. CONSIDERATION OF
CHANGE ORDER PAYMENT FOR BRIDGEHEAD AND MAIN STREET SEWER CONSTRUCTION
Mr.
Davisson stated that the sewer along Main Street has historically had two
trouble spots, one at Bridgehead Road and the other at Live Oak Avenue. The District entered into a Reimbursement
Agreement with the City of Oakley and the work was contracted through the City
of Oakley that had scheduled a road reconstruction project in this area. The contractor was Knife River Construction. A design error by ISD’s consultants Carlson,
Barbee and Gibson was discovered that required installation of an additional 91
feet of sewer line requiring an increase of $20,197. Further, an unmarked and unknown gas pipeline
was discovered and resulted in a second change to the original scope of
work. Staff recommends reimbursing the
City of Oakley an amount not to exceed $264,376.45 as part of an approved
Reimbursement Agreement and direct staff to pursue recovery of all costs
associated with a design error and unmarked abandoned gas line owned by
PG&E.
Discussion
was held on who the design engineers worked for and who oversaw their work as
well as why the change orders for the two items were not brought to the Board
for a decision when the initial issues were discovered. The change orders were approved by staff as
the amount was below the approved amount of $255,000 approved by the
Board. Director Contreras stated that
all change orders need to come to the Board for their consideration. Mr. Davisson stated that going forward all
change orders will be considered by the Board and any increase of cost to be
carefully considered to be transparent going forward.
Director
Contreras stated that this project was placed on the fast track and was not
placed on a competitive bidding process
The governing body did not have an opportunity to approve the first change
order and although he supports honoring the agreement he wants the Board to be
fully aware of expenditures that go beyond the original contracted amount. He stated these added costs were significant and
might have been dealt with differently had the Board known the issues when they
arose several months ago.
Discussion
was held on options to recover costs associated with the two errors. Preliminary efforts have been addressed by
staff to recover the costs with the design error and unmarked abandoned gas
line.
M/S
D. Contreras, C. Lauritzen and the Board voted to reimburse the City of Oakley
an amount not to exceed $264, 376.45 as part of an approved Reimbursement
Agreement and direct staff to pursue recovery of all costs associated with a
design error and the unmarked abandoned gas line owned by PG&E.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
8E. ASSESSMENT
STATUS REPORT.
Mr. Davisson gave
an overview of the assessment items reported with discussion from the
Board. Item No. 17 formalize Contra
Costa Water District’s concurrence for ISD to utilize recycled water to
irrigate a portion of the District’s mainland farming areas was discussed. Staff are currently working with CCWD on this
item.
President
Contreras on behalf of the Board accepted the assessment report and thanked Mr.
Davisson.
9. STUDY AND DIRECTION
TO STAFF
9A. ESTABLISHMENT OF A JOINT POWERS AGENCY
BETWEEN IRONHOUSE SANITARY DISTRICT AND RD830.
Mr. Davisson
stated that in response to the Board’s inquiry of a sole landowner–voter of
Reclamation District 830, (RD 830) and what lawful method of control does the
ISD Board have of RD 830. The item was discussed
at the last Board meeting and District Counsel was asked to bring back to the
Board a Joint Powers Agency agreement between ISD and RD 830.
Mr. Henn gave an
overview of how the agreement would work and the cost of setting up the agency
and maintaining. He then offered an
alternative to setting up the JPA.
Mr. Henn reviewed
an alternative action that the Board have the trustees take instruction from
the ISD Board of their recommendation of Board action. The ISD agenda could have a section that
covers RD 830 action items for Board direction from the ISD Board.
Director Lauritzen
stated how important it is for all the Board to be at the forefront of the
Island making decisions. Mr. Henn stated
that procedurally we might need to revise the by-laws to lay out the requirement
requested by the Board. Director Morgan
stated we all as a Board members need to be involved in the decisions of Jersey
Island.
It was
recommended having a meeting every third Tuesday for consideration of Rd 830
business items for ISD Board review and direction to the RD 830 Board of
trustees. The ISD Board gave direction
to staff to adjust the bylaws and bring them back to the Board.
10. GENERAL MANAGER AND STAFF REPORT
Staff reports were provided in the Board packet.
11. BOARD
MEMBER ADVISORY REPORTS
Written reports submitted.
Director Painter – Reported that Pheasants Forever would be meeting at the District
Office Friday at 7 p.m.
12. Future Agenda Items for Consideration
Mr.
Davisson reported that a workshop would be held on Tuesday November 17th
at 6:00 p.m. to receive an update on the Marsh Creek Restoration Project. Staff will be working on questions on
elements on the project of ISD concern.
Closed Session will be held at 5:00 p.m. for GM evaluation.
13. ADJOURNMENT
President Contreras
adjourned the regular meeting at 9:35 p.m. until Tuesday, December 1, 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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