MINUTES OF THE
REGULAR MEETING
OF THE BOARD OF
DIRECTORS OF THE
IRONHOUSE
SANITARY DISTRICT
April 5, 2016
The Board of Directors of the Ironhouse
Sanitary District (ISD) met in regular session on Tuesday, April 5, 2016, in
the Board meeting room at ISD’s offices at 450 Walnut Meadows Drive, Oakley,
California.
1. Call to Order
The
meeting was called to order by President Doug Scheer at 7:05 p.m.
Mr.
Davisson led the pledge of allegiance.
Roll
Call
Directors present: David Contreras, Chris
Lauritzen, Susan Morgan, Michael Painter and Doug Scheer
Members absent: None
Staff/Consultants Present:
Chad Davisson, General Manager
Susan
Walde, District Secretary
Michael
Welty, Financial Officer
Dave
Smith, Maintenance Superintendent
Louis
Solana, Maintenance Supervisor
Michael
Fuller, Equipment Mechanic
Dave
Dal Porto, Ranch, Reclamation & Levee Supervisor
Chris
Christean, Plant Manager
Interested Parties: Vanessa Perry, City of Oakley
Kevin
Rohani, Engineer, City of Oakley
Randy
Mager, DWR
Roni
Gehlke, Outreach Consultant
Staff Recognition
Employee
Service Award– Michael Fuller- 5 years
Mr. Fuller has been a vehicle and equipment mechanic
for the District for 5 years.
Employee Service Award – David Dal Porto – 15 years
Mr. Dal Porto has been the
Superintendent of Jersey Island overseeing the Cattle Operation and Levee
Management.
President Scheer on behalf of the Board presented
both with their service awards and thanked them for their service to the
District.
2. APPROVAL OF AGENDA
M/S D. Contreras,
C. Lauritzen and the Board voted to approve the agenda.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent none.
3. APPROVAL
OF THE MINUTES of the March 1, 2016 Regular Meeting, March 2,
2016 Board Workshop and the March 15, 2016 Special Meeting.
M/S C.
Lauritzen, M. Painter and the Board voted to approve the minutes of the March
1, 2016 regular meeting, the minutes of the March 2, 2016 special workshop and
the March 15, 2016 special meeting of the Board with amendments given to the
District Secretary.
In favor: C.
Lauritzen, M. Painter, Contreras, C. Lauritzen, S. Morgan, M. Painter and D.
Scheer. Opposed: None. Absent: None.
4. PUBLIC
COMMENTS.
Communications
from the public on subjects not on the agenda.
There were no
comments from the public in attendance.
5. CONSENT CALENDAR –
5A. Approval of Payment Order, Report on
Financial Position & Operating Performance.
M/S C.
Lauritzen, M. Painter, 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.
6. BUSINESS BEFORE THE BOARD
6A. CONSIDERATION
TO ACCEPT THE ISD ACTUARIAL STUDY OF RETIREE HEALTH LIABILITIES AS OF JULY 1,
2015 PREPARED BY TOTAL COMPENSATION SYSTEMS, INC. (Conference call with Geoff
Kischuk of Total Comp.)
Mr. Davisson reviewed that ISD contracted with Total
Compensation Systems, Inc. (TCS) to prepare an actuarial study of retiree
liabilities as of July 1, 2015 to comply with GASB 45 and reporting
requirements of CalPERS Ca Employers’ Retirement Benefit Trust (CERBT)
requiring an Actuarial valuation as of July 1, 2015. Mr. Welty has been working with Mr. Kischuk
of Total Compensation Systems, Inc. to perform the valuation and introduced
Geoff Kischuk via a conference call to review the valuation with the
Board. Mr. Kischuk gave a thorough and detailed
overview of the Actuarial Study prepared for ISD dated March 29, 2016. Mr. Kischuk reported that the costs of
liability are higher and interest on investment is lower, at 7.25%. CalPERS issued new demographic tables and the
most recent shows the mortality table has increased. The district has more retirees, several of
which are previous Board members or their relatives, which impacts the ongoing
costs related to retiree medical healthcare.
Director Contreras asked about the CalPERS investment
rate. Mr. Kischuk stated it is assumed
at 7.28%. Their strategic funding is
assuming 7% and the .28% to cover administrative costs. Discussion was held on what the trends are in
the industry and future impact on the District.
Staff recommended accepting the report.
M/S D. Contreras,
C. Lauritzen and the Board voted to accept the Actuarial Study from Total
Compensation Systems, Inc.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
6B. RECEIVE AN UPDATE ON THE MARSH CREEK RESTORATION PROJECT.
Mr. Davisson stated at the workshop the Board held
on November 17, 2015, the Board asked staff to provide periodic reports on the
Marsh Creek Restoration project and potential of alternative uses for the
property. Mr. Davisson reported that he was
in contact representatives from Denova Homes who developed the Emerson and
Gilbert property. Based on very
preliminary analysis, estimates for the potential value of the District’s
property described in the Marsh Creek Restoration Project area is a broad range
of $50 – 80,000 per acre. Adjacent property
in the Emerson and Gilbert development areas was valued at approximately $100,000
per acre with full entitlements. There
are many factors to consider, including an environmental impact review, soils
testing, etc. to determine the development potential of the land prior to
additional discussion with a developer.
In January, the District received notice from the EPA that the proposed
Marsh Creek project would be compliant with the grant. In working with DWR, the District needs to
make a decision to determine if further efforts are to be made for
consideration of alternative projects for the property, and provide a clear
position to DWR by the end of the current fiscal year.
Randy Mager of DWR was available for discussion on
the project with the Board. He stated
the information from EPA is viable information for the project. Director Morgan stated the timing of the
project has slipped. Mr. Mager stated
the Dutch Slough project was able to get clearance and in 2017 they could be
moving forward with the dirt removal project.
M/S
D. Contreras, S. Morgan and the Board voted to accept the report on the Marsh
Creek Delta Habitat Project.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
6C. RECEIVE REPORT ON THE MAIN STREET SEWER PIPELINE CONDITION
ASSESSMENT AND PROVIDE DIRECTION TO STAFF REGARDING REPAIR RECOMMENDATIONS AND
POTENTIAL REIMBURSEMENT AGREEMENT RELATED TO CAPITAL IMPROVEMENT PROJECT NO.
165 WITH THE CITY OF OAKLEY.
At
7:40 p.m., Vivian Housen joined the meeting via conference call.
Mr.
Davisson reported this item is being brought back to the Board for
consideration and presented the revised report and laid out the three
alternatives, 1) Do Nothing; 2) Partial Rehabilitation for a total estimated cost
of $77,000; 3) Full Pipe and Lateral Replacement for a total estimated cost of
$460,609.
The
Maintenance Superintendent (Smith) stated that this pipeline requires cleaning
on a frequency of 6 week intervals. In February,
the District was notified by the City of Oakley that they were planning to bid
out an extensive downtown street improvement project on Main Street. Upon completion of the project, the City
communicated that they intend to impose a 10-year non-emergency street cut
moratorium within the downtown area.
At
7:53 p.m., Directors Scheer and Painter recused themselves from the action of
this item due to being property owners in the area of Main Street for the
proposed work.
Kevin
Rohani, Oakley City Engineer was in attendance.
Director Contreras asked for clarification from Mr. Rohani regarding the
City’s municipal code authority specific to street cut moratorium
duration. Mr. Rohani stated that the
City’s municipal code includes a 5-year moratorium, but due to the extensive
improvements planned for Main Street, the City intends to impose a 10-year
moratorium policy. There was discussion
about other utilities being improved as well as the City’s work to construct
stormdrain infrastructure within the project area. Although Mr. Rohani suggested that the City
planned to enforce a 10-year moratorium, he did confirm that this requirement
was not included within the City’s Municipal Code. Mr. Rohani went on to discuss that the driver
for this project was to attract business development and that the City is anticipating
commercial infusion in the downtown area.
Director
Contreras asked Ms. Housen about the current end of the system, asked for
clarification about whether the District is experiencing any capacity issues on
this pipeline at its current size. Ms.
Housen stated it starts at Norcross and there are no capacity issues with the
6” line. Ms. Housen also stated that a
6-inch diameter pipeline would not likely experience capacity related problems,
even with future development, the Board should be aware that it is no longer
the standard as it is difficult to clean.
Additionally, Housen reiterated that the existing laterals in the area
are 4-inch. Future developments may be
required to upgrade the lateral size to 6-inch based on their sewer discharge needs. In this situation, the existing pipe size may
be problematic because it is not standard to connect a 6-inch lateral to a
6-inch mainline. The Board members
considered this and communicated that at this time the City is unsure of what
the future development will be and what infrastructure improvements will be
necessary. There was consensus that
future development will be required to bear the expense of any required
improvements.
Director
Contreras also asked if the three laterals from the south could be connected to
the north side and could they be laid out and a change made in elevation. Ms. Housen said she couldn’t answer that
without knowing the elevation of the other utilities at that location.
Ms.
Housen had to leave the meeting via telephone conference.
Director
Lauritzen stated that this sewer system pipeline was installed back in 1947 and
his opinion was that it should be a complete replacement not just a band-aid.
Staff
confirmed that this pipeline has never been included in a capital improvement
plan, replacement schedule or budget, although it has required high-frequency
cleaning for at least the last 20-years.
M/S
S. Morgan, D. Contreras motioned to authorize staff to proceed with Alternative
2 for the north pipeline, and repair of the south pipeline, and authorize the
General Manager to finalize and execute a Reimbursement Agreement related to
Capital Improvement Project No. 165 with the City of Oakley, for an estimated
amount of $70,800. In addition, approve
$6,200 for District costs for soils testing and construction inspection, as
required by the City, for a total project cost ceiling of $77,000.
In favor: D.
Contreras, and S. Morgan. Opposed: C.
Lauritzen. Absent: None. Recused: M. Painter and D. Scheer.
At 8:25 p.m.,
Directors M. Painter and D. Scheer joined the meeting.
6D. EVALUATE THE PROPOSED JERSEY ISLAND PHASE II CRITERIA AND DIRECT
STAFF TO PROCEED WITH THE JERSEY ISLAND PHASE II ANALYSIS PLAN.
Mr. Davisson reviewed that on March 2, 2016 at the
Board workshop for Phase I of the Jersey Island an analysis approach was
given. At the meeting, direction was
given to staff to proceed with Phase II of the Jersey Island Plan. Staff are working to establish a more direct
connection between Jersey Island and treat and dispose, and are reviewing the
options that have been summarized for the Board.
Mr. Dal Porto reported that a more efficient way for
hay production is to eliminate production of small hay bales and is immediately
implementing this Staff will put the hay
up in large bales only, which will save staff and equipment costs. Consideration of changes to staffing level is
being reviewed.
Staff are looking into Biosolids processing and
disposal on Jersey Island as a potential for cost savings to the District.
Director Lauritzen applauds Mr. Dal Porto and staff
for all the hard work on this project.
He asked what would be the feed costs if we did not farm our own
hay. Mr. Dal Porto stated that it varies
by year. Last year it would have been a
savings but not two years ago. The feed
costs vary each year. The cattle farmers
with their own feed resources are the ones that have survived. Mr. Davisson redirected the conversation and
reiterated that proper analysis was required in order to provide reliable
information to the Board.
Discussion was held on the potential of biosolids
disposal options and diversification.
Mr. Davisson assured the Board that he is pursuing options through his
CASA contacts.
Mr. Davisson reported he will have a status update
at the May meeting regarding staffing, recreation and changes to the hay
production options, and will have a report for the Board.
Director Painter suggested staff talk to the East
Bay Regional Parks Department in regards to recreational options.
M/S
D. Contreras, M. Painter and the Board voted to accept the report on the
proposed Jersey Island Phase II criteria and direct staff to proceed with the
Jersey Island Phase II Analysis Plan as approved by the Board.
In favor: D.
Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed: None. Absent: None.
7. GENERAL MANAGER AND
STAFF REPORT
Staff reports were provided in the Board packet.
Mr. Davisson reported on an incident at the WRF plant
on March 31, at 2:00 p.m. It was a
serious incident and could have been a tragic incident. Response needs to be as though it could have
been a worse case scenario. He reported
that secure covers have been made and a life ring has been secured with safety
ropes, and ladders are in the process of being mounted. CSRMA will send out a safety representative
to evaluate any other safety issues there may be at the facility. Mr. Davisson will continue to do an
investigation. He reported the safety
officer has been out and he will continue to work with him on this issue.
Mr. Davisson thanked Louis Solana and Leon Laucirica
for their immediate response and work well done to secure the grates.
Mr. Davisson reported on the new John Deer tractor
that it has been received at Jersey Island and waiting for the grant process to
complete.
Director Contreras asked about the restoration
management replacement of toys reported in the GM staff report. Mr. Davisson reported that staff were
cleaning a line on Main Street and 2 weeks later, the owner reported sewage in
the basement. Staff had restoration
management come in to clean and replace damaged items. Back flow preventers were
put on the laterals for future prevention.
Director Contreras stated that backflow preventers on private laterals
reduce risk to the District and should be a standard requirement.
He reported staff received a settlement from PG&E
for the Bridgehead and Main Street project.
8. BOARD MEMBER ADVISORY REPORTS
Written reports submitted.
Director Morgan
– Ms. Morgan reported that she attended a Strategic Planning meeting on April
19, 2016 at 6:30 at Freedom high School to engage in Oakley.
She reported that Mr. Davisson attended the last City
council meeting and asked the City to evaluate an option to included recycled
water in the Main Street improvement project.
Director Contreras – Director Contreras reported he and Mr. Davisson are scheduled to
attend the CASA Water ReUse Public Forum tomorrow. He attended the BIMAC meeting and the Delta
Coves project is moving forward.
David Smith stated the new safety trailer is complete
and welcomed the Board to take a tour to review the completed safety trailer.
9. Future Agenda Items for Consideration
There
were no future agenda items discussed.
10. ADJOURNMENT
President Scheer adjourned
the regular meeting at 9:12 p.m. until Tuesday, May 3, 2016 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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