Minutes of the ISD February 16, 2016 Board Meeting

MINUTES OF THE REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE

IRONHOUSE SANITARY DISTRICT

 

February 16, 2016

 

The Board of Directors of the Ironhouse Sanitary District (ISD) met in regular session on Tuesday, February 16, 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 6:36 p.m.

Director Painter led the pledge of allegiance.

Present were Directors: Contreras, Lauritzen, Morgan, Painter and Scheer.  General Manager Chad Davisson and General Counsel John Moore. Absent: None.

At 6:38 p.m., the meeting was adjourned to closed session for Item 2A on the agenda.

 

2.       Closed Session

A.       Public Employee Discipline/Dismissal/Release – Government code Section 54954.5e

 

At 6:58 p.m. The Board took a short recess.

 

At 7:04 p.m. The Board met in open session.

 

3.       Report of Actions (if any) Taken in Closed Sessions

President Scheer reported that the Board in Closed Session took no action.

 

          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

                                                            John Moore, District Counsel

                                                            Michael Welty, Financial Officer

                                                            Dave Smith, Maintenance Supervisor

                                                            Dave Dal Porto, Ranch, Reclamation & Levee Supervisor

                                                            Vivian Housen, Contract Engineer

            Interested Parties:                   Vickie Smith, Oakley, Ca

                                            

4.       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.

 

5.         APPROVAL OF THE MINUTES of the January 5, 2016 Regular Meeting of the Board.   

M/S D. Contreras, M. Painter and the Board voted to approve the minutes of the January 5, 2016 regular meeting of the Board with edits given to the District Secretary. 

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.

Mr. Davisson introduced Vivian Housen, of V. W. Housen & Associates, Inc.  Vivian will be working with the staff to fulfill the Engineering needs of the District.

 

7.       CONSENT CALENDAR -

          7A.      Approval of Payment Order, Report on Financial Position & Operating Performance.

 

          7B.     Approve the investment policy, which authorizes the District to consider participation in higher yield, safe investment options including CalTRUST, and fixed income securities and direct the General Manager to develop an investment plan for consideration by the Board of Directors.

 

          7C.     Direct staff to establish all necessary accounts with Wells Fargo Bank and discontinue banking with both BAC Community Bank and Bank of America. 

 

          7D.     Authorize the General Manager and District Secretary to sign checks for non-recurring, discretionary payments in amounts up to $5,000 and direct the General Manager to provide scanned copies of invoices to all Board Members, electronically, for review, no less frequently than two times per month.

M/S M. Painter, 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.     CONSIDER APPROVING A GRANT WITH THE BAY AREA AIR QUALITY MANAGEMENT DISTRICT, WHICH PROVIDES GRANT FUNDS IN THE AMOUNT OF $249,000 THROUGH PARTICIPATION IN THE CARL MOYER PROGRAM FOR THE PURCHASE OF A NEW JOHN DEER 8370RT TRACTOR AT A CMAS PRICE OF $380,625.25 AND A BROKERAGE FEE OF $12,450 FOR A TOTAL COST TO THE DISTRICT OF $144,075.25.

Mr. Davisson reported to the Board regarding the grant with the Bay Area Air Quality Management District (BAAQMD) incentive program to upgrade heavy duty vehicles to reduce air emissions.  Through participation in the grant program, the district will agree to salvage two existing tractors that have been identified by the BAAQMD of contributing to air pollution.  The recommendation by staff is to approve the grant agreement, which provides grant funds in the amount of $249,000 through participation in the Carl Moyer Program for the purchase of a new John Deere 8370RT tractor at a CMAS price of $380,625.25 and a brokerage free of $12,450 to a total cost to the District of $144,074.25.

The item was placed on the FY 15/16 budget, reviewed and approved by the CIP committee.  The item was budgeted under the assumption that the grant revenue would be $284,000 and a total cost of the equipment was budgeted at $355,000, with a cost to the District of $71,000.  However, the final grant award ended up being $249,000, which created a net cost to the District of $144,075.25 for the purchase of the equipment. 

Mr. Davisson reported that the BAAQMD expects to close the grant application window in the next 30-60 days which would require ISD to reapply in FY 2017.  Mr. Davisson also reported that grant qualification requirements and funding levels could potentially change and recommended the Board consider these factors as well. 

Director Lauritzen asked about the value of a new tractor versus a lease on a tractor.  He is also concerned that authorizing capital expenditures beyond what was approved in the annual budget could negatively impact the district’s ability to complete other maintenance, collections and WRF capital work. 

Director Contreras gave his recommendation to move forward with authorizing the grant. 

The Board would like staff to bring back the costs for leasing a tractor.  Davisson stated that he expects to and bring back options in March. 

M/S M. Painter, D. Contreras approved the grant agreement with the Bay Area Air Quality Management District which provides grant funds in the amount of $249,000 through participation in the Carl Moyer Program.  Bring back to the Board the purchase of a new John Deere 8370RT tractor at a CMAS price of $380,625.25 and a brokerage fee of $12,450, for consideration.

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

 

          8B.     APPROVE MID-YEAR ADJUSTMENTS TO THE ADOPTED FISCAL YEAR 2015/16 OPERATING AND CAPITAL IMPROVEMENT BUDGET.

Mr. Davisson provided the Board a mid-year budget review and recommendations for line item adjustments to the Fiscal Year 2015/16 Operating and Capital Improvement Budget.  The budget adjustment process is typical, and provides the Board with the opportunity to review the recommended adjustments and modify adjustments as determined appropriate.  He reviewed the recommended adjustments line by line with the Board. 

Staff recommends the Board approve the mid-year adjustments to the adopted fiscal year 15/16 operating and capital improvement budget.

M/S S. Morgan, C. Lauritzen and the Board voted unanimously to approve the mid-year adjustments to the adopted fiscal year 2015/16 operating and capital improvement budget.

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

 

8C.     DIRECT STAFF TO INITIATE A “REQUEST FOR PROPOSAL” SOLICITATION PROCESS FOR FIRMS TO PROVIDE DISTRICT LEGAL COUNSEL SERVICES.

Mr. Davisson stated that the District has used Henn, Etzel & Moore, Inc. for over 25 years without any periodic competitive solicitation process.  As a matter of prudent business practice, as well as changes that have occurred to the firm, the District desires to initiate a “Request for Proposal” (RFP) process for qualified firms to provide legal counsel.  The Board gave opinion that we should be applying this process for other vendors as well.  Mr. Davisson clarified for the Board that District legal counsel works directly for the Board and as such it is appropriate for the Board to consider this action and direct staff accordingly.

 

M/S M. Painter, S. Morgan and the Board voted to direct staff to initiate a “Request for Proposal” (RFP) solicitation process for firms to provide District legal counsel.

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

 

8D.     ASSESSMENT STATUS REPORT.

Mr. Davisson provided a list of the assessments with added notations and the assessments prioritized into buckets.  The top two priority assessments for staff are the procurement policy and personnel/human resources manual.  During the Months of April or May staff will develop a strategy of how to go forward.  Staff would like to have a visioning workshop with the Board to go forward with a District Vision.  Staff will be redefining the assessments process as we go forward. 

 

9.       GENERAL MANAGER AND STAFF REPORT                                                 

Staff reports were provided in the Board packet.  General Manager Chad Davisson thanked the Board for changing the date of the board meeting to accommodate his travel.  He reported on the NEWater process in Singapore.  He would like to work on water and best practices on a global scale in the future.  He is happy to have his program completed.

 

10.     BOARD MEMBER ADVISORY REPORTS

Written reports submitted.

 

Director Morgan – Ms. Morgan reported that the City is working on a clean energy program.  Our General Manager gave a report to the City Council that was well received.  She reported CCWD has a director retiring and will be opening a process to fill his position.  She attended the local Mayor’s conference, which was held in Oakley.  She reported on her attendance at the CASA Conference with one of the highlights on the flow of communication.  The Board should communicate with the General Manager, the General Manager to staff.  They stressed the importance of keeping the appropriate flow. 

 

Director Contreras – Director Contreras stated he agrees with all the reports on the CASA conference.  He will be submitting his report on the CASA conference for the Board to receive electronically.

He reported on the program committee for CASA and reported the committee received requests for the round table discussions to return.  He asked the Board to provide subjects of interest for future CASA meetings.

 

Doug Scheer – Director Scheer reported the Jersey Island Committee met on February 10^th and is working with staff to have a workshop in early March. 

 

11.     Future Agenda Items for Consideration

The Jersey Island committee met on February 10^th and will be having a workshop in early March. 

 

12.     ADJOURNMENT

President Scheer adjourned the regular meeting at 9:30 p.m. until Tuesday, March 1, 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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