ISD Board Meeting July 5, 2011 Minutes

MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS OF THE
IRONHOUSE SANITARY DISTRICT

July 5, 2011

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, July 5 2011.

The place of meeting was the Ironhouse Sanitary District office at 450 Walnut Meadows Drive, Oakley, California.

1. Call to Order
The meeting was called to order by President Michael Painter at 7:00 p.m.

2. Roll Call
Directors present: David Contreras, Doug Hardcastle, David Huerta, Chris Lauritzen, and Michael Painter

Directors absent: none

Staff/Consultants present: Tom Williams, General Manager
Dave Dal Porto, Reclamation, Levee and Ranch Superintendent
Jenny Skrel, District Engineer
Susan Walde, District Secretary
Fred Etzel, District Counsel

Interested Parties: Randy Pope, City of Oakley City Council
Marc Young, Oakley
P. Kemp, Oakley

3. Approval of the Agenda
President Painter asked the Board to move Item 7B before Item 7A. M/S D. Contreras, C. Lauritzen, and the Board voted to approve the Agenda with the change of moving Item 7B before Item 7A.


4. Approval of the Minutes of the June 7, 2011 Regular Meeting
President Painter requested that the minutes of the June 7, 2011 meeting be reviewed at the August 2, 2011 Regular Meeting of the Board. M/S D. Contreras, C. Lauritzen and the Board voted to review the minutes of the June 7, 2011 meeting at the August 2, 2011 general meeting of the Board.


5. Public Comments – Communications from the public on subjects not on the agenda.
There were no comments from the public at this time.
6. Consent Calendar
A. Approval of Payment Order, Income/Expense Statement & Bank Balances.
B. Approval of Posting & Publishing of Ordinance 44/Order 11-19 Decreasing Trunkline Capacity and Plant Capacity Fees.
M/S D. Huerta, D. Contreras and the Board approved the consent calendar.

Staff Report – Michael Welty – Mr. Welty reported the auditors will be here the second week in September to complete the audit. Beverly Dagneau will be returning from medical leave on the 20th of July. Staff will be busy in July and August preparing for the year end and the annual audit.


7. BUSINESS BEFORE THE BOARD

7B. CONSIDERATION OF RECOMMENDED PLAN FOR REMOVAL OF RECOGNIZED ENVIRONMENTAL CONDITIONS (REC’s) FROM LOT 1 ON JERSEY ISLAND.
Mr. Williams reported to the Board that, in November 2010, the Board gave direction authorizing the General Manager to move forward with the acquisition of Lot 1 of Jersey Island at the pre-determined price set in the original purchase agreement.
Mr. Etzel gave a summary of the Phase 1 report and stated a copy of the phase 1 report will be available at the district office for Directors to review. Mr. Etzel gave a summary of the 500 gallon underground storage tank located within the levee, he stressed care would be given to not jeopardize the integrity of the levee. He also reported on the two above ground storage tanks (ASTs) which were used to store diesel fuel. An empty container located near the Halsey Residence will be properly disposed by ISD. A 55-gallon drum with unknown contents which is contained in a shed on Lot 1 will be removed via a contract issued by ISD, in accordance with environmental rules and regulations. Mr. Etzel explained that the contractor hired would obtain the permits from the CCC Health Services Dept and the Levee Encroachment permit from RD830. He also stated that ISD would use its own resources to abandon the three septic systems on Lot 1.
Mr. Etzel asked the Board to authorize staff to go ahead and implement the plan to obtain, through a competitive bidding process, a contractor to remove and dispose of the 500 gallon UST and the 55 gallon drum. He asked for the Board’s support for the plan going forward to authorize staff to proceed with the project, with the estimate to complete the work between $10,000 - $15,000. ISD staff would remove the structures at a cost of approximately $40,000 to $50,000 at a later date. Ms. Skrel would be supervising the project and contract to remove the tanks.

President Painter asked for public comment, hearing no comment, he asked the Board for a motion.

M/S D. Hardcastle, M. Painter and the Board voted unanimously to authorize the General Manger to implement the plan for removal of recognized environmental conditions (REC’s) from Lot 1 on Jersey Island upon approval of purchase of said property. (B.O. 11-31)


7A. RATIFICATION OF AGREEMENT FOR PURCHASE OF LOT 1 ON JERSEY ISLAND FROM DELTA PROPERTIES, INC.
ISD General Council and ISD staff have been working with Delta Properties over the last 6 months on this purchase agreement, and can finally bring it before the Board tonight. With the finalization of this agreement, it will bring ISD to full ownership of Jersey Island. Mr. Etzel reported that on November 2, 2010, the Board authorized the General Manager to negotiate and finalize the purchase agreement. Staff brought the agreement back to the Board to review the agreement with two new ISD Directors and to have the agreement ratified by the now Board. The agreement has been signed by Delta Properties and awaiting date and signature of President Painter.
President Painter asked for public comment. Ms. Kemp asked why we would want to own the entire island. Mr. Williams responded that the purchase of the last 55 acres is essential to land access by staff for levees and cattle management. Discussion was held by the Board on the indemnification by the owner and the mineral rights held on the property.
M/S C. Lauritzen, D. Hardcastle and the Board voted unanimously to authorize the President to sign The Purchase and Sale Agreement of Lot 1 on Jersey Island. (B.O. 11-32)


7C. CONSIDERATION OF GRAND JURY REPORT DATED APRIL 6, 2011, AND DRAFT RESPONSE
Mr. Williams stated to the Board that in the later part of April he received a request from the Grand Jury to respond to a Grand Jury report related to Special District and City Council elected officials. The report is due back to the Grand Jury on the 25th of July. Mr. Williams stated by comparison the ISD Board stipend is below average of other Sanitary and Sanitation Districts in Contra Costa County and Alameda County. Mr. Etzel stated the full Grand Jury report is available to anyone and can be obtained from the District Secretary. Mr. Etzel stated he and staff have worked together to prepare the draft response to the Grand Jury.
Director Huerta stated the Grand Jury itself was not included in their own report and that the methodology of the report compared “apples to oranges,” and, therefore, skewed the results unfairly. The Board stated that the report should consider some Districts are more complex and need more Board involvement in conducting business.

Director Lauritzen stated he is happy to be on the Board and believes he works hard for the rate payers. He works at his business five days a week, and is always “on-call” to serve the rate payer. While he as an elected official in this case, he is not a volunteer. As a Director on the ISD Board, he is often called away from his business to conduct ISD Business and feels some compensation is appropriate. Also, Mr. Lauritzen mentioned he did not take medical compensation for 6 years and just recently did.

Director Hardcastle stated that he was in the Army and has served on many volunteer Boards, but that the ISD position is more than volunteer. He stated that he has not missed a meeting since elected in 2000 to the ISD Board of Directors. He stated that he is the ISD representative at the City Council meetings and feels that ISD and the City should be on the same team, and should honor each other. He feels very dedicated to the people of Bethel Island and the people of Oakley and works hard to represent them well.

Director Contreras directed staff to include in the District’s response to Grand Jury Report No. 1104 the statement that the Directors of sanitary districts, such as Ironhouse, which are experiencing and anticipating growth. As such, the ISD Board in their service areas, and are accordingly substantially upgrading their facilities to accommodate this growth, must devote significant time, attention and oversight to ensure that these facility upgrades are accomplished in a cost-effective manner which complies with state water quality standards, which are becoming increasingly more stringent to comply with.

President Painter asked for public comment, hearing no public comment, he asked for a motion.

M/S D. Contreras, D. Hardcastle and the Board voted unanimously to approve the response and included the following statement in the Grand Jury Report No. 1104 in Recommendation #3:

Ironhouse further notes that currently the District is substantially upgrading its facilities to accommodate the growth anticipated within its service area and the Directors must devote significant time, attention and oversight to ensure that these facility upgrades are accomplished in a cost-effective manner which complies with state water quality standards that are becoming increasingly more stringent over time. (B.O. 11-33)


7D. CONSIDERATION OF CONTINUED PARTNERSHIP IN BAY AREA RECYCLED WATER COALITION (TITLE XVI Funding Program) AUTHORIZING THE GENERAL MANAGER TO SIGN FIRST AMENDED AND RESTATED MEMORANDUM OF AGREEMENT.
Mr. Williams stated the amended and restated MOA is a continuation of ISD’s participation in this regional effort to seek Federal grants for recycled water projects. It is being amended and restated to include several new types of agencies, share the cost of the Lead Agency’s administrative expenses among the participants, and revises the cost sharing formula for Participating Agency costs for federal advocacy.
Discussion was held on the progress of the Recycled Water Master Plan and the participation in the future planning of recycled water in the City.
M/S D. Contreras, D. Huerta and the Board voted unanimously to approve the proposed Amended and Restated MOA and authorize the General Manager to sign the contract. (B.O. 11-34)

7E. CONSIDERATION OF AMENDING THE DISTRICT’S DENTAL INSURANCE TO INCLUDE IMPLANTS
Mr. Williams stated he contacted the insurance carrier to see if dental implants could be a covered item under our plan. The two options available to the District are 1) $902.12 per year with a lifetime cap option which would cover up to $5,000, and 2) a savings of $2,615.76 per year with an annual program that would cover all dental coverage up to $2,500 including coverage for implants.
Discussion was held regarding the coverage and savings to the District. President Painter asked for public comment, hearing no public comment, he asked for a motion.

M/S D. Huerta, D. Contreras and the Board voted unanimously to authorize the General Manger to amend the District’s dental plan to include implants under “major services,” with the annual caps remaining unchanged and a F/Y 11/12 savings to the District of $2,615.76. (B. O. 11-35)

7F. CONSIDERATION OF ISD WWTP GRAND OPENING DATES & LEVEL OF EXPENDITURES. (Possible dates: October 8, 12, 15, 19, and 22.)
As the new wastewater treatment plant nears completion, Mr. Williams asked the Board to take into consideration the dates of October 8, 12, 15, 19 and 22 for consideration of holding the Grand Opening. Director Contreras stated he has had experience with grand openings and they have been highly attended if they are held on a weekend, which he would recommend. The Board discussed the date of October 15, 2011 for the grand opening. Mr. Williams discussed options for the budget for the event, with possible participation from others such as vendors and contractors. Discussion was held to have the Public Outreach committee bring back a budget for Board approval and possible partnering participation. President Painter asked for public comment. No public comment was made. Director Lauritzen stated it is very important to let the rate payers know the funds for this event will not come from rate payer fees. The funds should come from revenue sources such as reserves and other non-operating monies.

7G. CONSIDERATION OF REQUEST TO ADVERTISE FOR PROPOSALS FOR REMOVAL AND DISPOSAL OF SOLIDS FROM TREATMENT CELLS AND EFFLUENT STORAGE PONDS.
Ms. Skrel approached the Board asking for authorization to advertise the request for proposals for Removal and Reuse/Disposal of Treatment Ponds and Effluent Storage Ponds Solids at the Ironhouse Sanitary District Wastewater Treatment Plant. Ms. Skrel stated the District will be advertising for requests for proposals and has interested contractors wanting to submit a bid on the project. Staff is requesting the Board authorize the General Manager to award the project. The bids are due on the 20th of July. Discussion was held by the Board on the tonnage and possible locations for disposal of biosolids. Ms. Skrel responded to the board inquiries that the location of disposal is determined by the contractor.

After discussion, the Board determined the item should be brought back to the Board for approval.
M/S Hardcastle, Lauritzen and the Board voted unanimously to authorize the District Engineer to advertise an RFP for removal and reuse/disposal of treatment ponds and effluent storage ponds solids at the Ironhouse Sanitary District Wastewater Treatment Plant and set date of Tuesday, July 26, at 5:30 p.m. to hold a special meeting of the Board to award the bid to a contractor for air dry, load transport and reuse/disposal of treatment pond and effluent storage ponds solids. (B.O. 11-36)

7H. CONSIDERATION OF BOARD COMMITTEE ASSIGNMENTS
President Painter stated with the change in Directors, he would like to re-evaluate the committee assignment of Board Directors. The following committee assignments were determined:
Board Member Advisory Committees:
• Delta Science Center (Painter, Huerta)
• Collection Facilities (Contreras, Huerta)
• Finance (Lauritzen, Hardcastle)
• LAFCO (Hardcastle, Contreras)
• Special District Local Chapter (Hardcastle, Painter)
• City Liaison (Hardcastle, Huerta)
• East County Water Mgmt Governing Board (Hardcastle, Huerta)
• Public Outreach (Huerta, Contreras)
• JI Management Plan (Hardcastle, Painter)
• BIMID / BI MAC (Lauritzen Painter)

8. Staff Reports

Tom Williams - Mr. Williams reported to the Board that he has been working with the Outreach committee on the Cityhood Celebration. He has also been working with Ms. Skrel on the treatment plant process. He is working on the next newsletter with Roni Gehlke and plans to have it to the printer in July and out for publication in August. Mr. Williams reported that as president of RD830 he met with BIMID in a planning effort to come together as a team partnering with them to develop a mutual partnership in case of an emergency; stock pile rock, sand bags, and stock piles.
Mr. Williams has been working to set up a meeting with Mr. Bob Glover of the Building Industry Association and ISD’s consultant Bartle Wells Associates regarding opportunities for reduction of fees. Mr. Williams stated he would be attending the ground breaking for Radback Energy on July 12.

Fred Etzel – Mr. Etzel reported he has been following the Delta Stewardship Council and following the draft delta plan and how it relates to Jersey Island.

Dave Smith – Mr. Smith submitted a written report to the Board.

Marc Haefke – Mr. Haefke submitted a written report.

Jenny Skrel – Ms. Skrel submitted a written report.


9. Board Member Advisory Reports
Director Doug Hardcastle– Vice President Hardcastle reported that City Council temporarily reduced the developer’s fees by 50% for the next two years.

Director Chris Lauritzen – Director Lauritzen reported that west side of False River, Dutch Slough will be having water quality issues by the year 2012, so Department of Water Resources is again considering a damn of some sort in False River near Jersey Island.

Director David Huerta –Director Huerta reported regarding public outreach and how it has been a busy month working with Roni Gehlke on the newsletter. The committee is planning the grand opening and researching alternative funding for the event.

Director David Contreras – Director Contreras thanked staff for their hard work. He reported on the literature and grease can given out at the Cityhood Celebration on the 2nd of July. The outreach committee met on the 16th of June. ISD has applied for the Technological Innovation Achievement Award with CASA and thanked Mr. Williams and Ms. Skrel for their hard work on the application. Director Contreras thanked staff for their submitted reports and specifically Mr. Dal Porto for the information on the Video cattle sales stating how informative his report was.


10 Adjournment
President Painter adjourned the regular meeting at 9:15 p.m. until Tuesday, August 2, 2011 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.