ISD Board Meeting June 7, 2011 Minutes

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

June 7, 2011

The Ironhouse Sanitary District (ISD) Board of Directors met in regular session on Tuesday, June 7, 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. Swearing In and Introduction of new Board Member - David Contreras
The District Secretary held a ceremony swearing in the newly appointed Board member David Contreras who accepted the oath of office.

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

Members absent: none

Staff/Consultants present: Tom Williams, General Manager
Dave Dal Porto, Reclamation, Levee and Ranch Superintendent
Marc Haefke, Operations Superintendent
Jenny Skrel, District Engineer
Susan Walde, District Secretary
Bob Henn, District Counsel

Interested Parties: Randy Pope, City of Oakley City Council
Roni Gehlke, Oakley
Peter Canepa, Oakley
Teresa Harris, Oakley
Robert Lee Harris, Oakley
Angelia Lowery, Oakley
Doreen Contreras, Oakley

4. Introduction of New Employees – Chris Christean, Operations Supervisor and Joe Mueller, Environmental/Process Compliance Manager
President Painter introduced Mr. Christean and Mr. Mueller to the Board. Each of the new employees gave their experience and background. Mr. Mueller stated he is excited to be part of a staff to help with the plant experience and process control. On behalf of the Board and staff President Painter welcomed them aboard.

5. Approval of the Agenda
President Painter asked the Board to move Item 9B before Item 9A. M/S C. Lauritzen, D. Hardcastle and the Board voted to approve the Agenda with the change of moving Item 9B before Item 9A.

6. Approval of the Minutes of the May 3, 2011 Regular Meeting
M/S Lauritzen, Hardcastle and the Board approved the minutes of the May 3, 2011 Regular Meeting of the Board, abstaining; member Contreras.
Approval of the Minutes of the April 22, 2011 Special Meeting
M/S Lauritzen, Hardcastle and the Board approved the minutes of the April 22, 2011 Special Meeting, abstaining; members Contreras and Huerta.
Approval of the Minutes of the May 17, 2011 Special Meeting
M/S Painter, Lauritzen and the Board approved the minutes of the May 17, 2011 Special Meeting of the Board, abstaining; member Contreras.
Approval of the Minutes of the May 24, 2011 Special Workshop Meeting
M/S Contreras, Huerta and the Board approved the minutes of the May 24, 2011 Special Workshop Meeting.

7. Public Comments – Communications from the public on subjects not on the agenda.
There were no comments from the public at this time.

8. 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.
c. Approval of Posting & Publishing of 2011/2012 Sewer Service Charge Increase Public Hearing.

M/S D. Huerta, D. Contreras and the Board approved the consent calendar.

9. BUSINESS BEFORE THE BOARD

9B. PUBLIC HEARING AND BOARD CONSIDERATION OF AN ORDINANCE AND ORDER INCREASING SEWER USE FEE (Ordinance No. 45, Order 11-25) ACTION ON PROPOSED SEWER USE FEE FOR FISCAL YEAR 2011/2012
Mr. Williams gave an overhead Power Point presentation and gave a brief history and timeline of how we have moved forward having serving Oakley since 1945 and Bethel Island since 1977. He presented a timeline showing adopting the final EIR Wastewater Facilities Plan in 1994 to loan re-payment in 2012. In November 2012 ISD begins re-paying 0% 20-year loan and explained how planning was key. He reported that the ISD Water Recycling Facility is on schedule and on budget with 0% financing. He gave details on the pay-as-you go financing plan for the new Water Recycling Facility. He gave details on the breakdown of the proposed service charge and operating costs. Mr. Williams reported that ISD used money earned from the cattle operation and ad valorem tax to help keep the rate down. He also gave a five year step of proposed rate fee increases at a cost saving to rate payers and a report of alternative saving for the future, solar, wind or both. The District is finding ways to support new homes and businesses utilizing District owned property to provide additional revenue and utilization and sale of new highly treated water.

At 7:28 pm President Painter opened the Public Hearing

Mr. Peter Canepa addressed the Board. Mr. Canepa represented the Eagle City Mobile Home Park, one owner of 143 units and a few public buildings. He thanked the Board for the consideration of the increase to $592 compared to the proposed rate. He stated his tenants will be pleased. The average size unit is 850 sq. ft., single individuals and a few 1200 sq. ft. unit. He stated that most tenants are on Social Security, fixed income with no raise. Mr. Canepa stated he would like the Board to consider a classification adjustment for the senior residents.

Ms. Angela Lowery addressed the Board stating she works for a WWTP and asked if it was true the Board reduced fees for developers. Mr. Williams addressed Ms. Lowry’s question and gave a breakdown of fees for development. Mr. Williams expressed and explained the savings.
Ms. Lowry asked what our plans were to address future regulations.
Mr. Williams addressed our participation in the ECWMP, potentially a 3 ½ mile Bay Area Recycle Water Coalition and authorization of Draft Recycle Water Mater Plan working on the Finance Model for Recycle Water Plan. Ms. Lowery thanked the Board for answering her questions.

Ms. Theresa Harris addressed the Board stating she is a resident of Oakley and works for a Sanitation Agency in the area. She asked the Board to consider our rates as compared to Bay Point, Pittsburg and Brentwood. She stated that sewer service fee added to cable, garbage and water fees of $150 are out of sight. She is having trouble with a rate reduction to developers and a rate increase to rate payers from $574 to $592. Mr. Williams explained the process of new connections and stated this fee is reviewed and adjusted every 5 years. Ms. Harris stated she is concerned there might be a time when we will be approaching a fee of $700 going forward. Mr. Williams explained the loan process and how the future fee will be equated. Mr. Williams stated as a District we made the jump which has put us ahead of the game. As future regulations come along, the neighboring districts will have to comply and do the improvements. When that happens, there will be substantial increases

Randy Pope of the City of Oakley addressed the Board applauding the connection fee reductions. He asked the Board that before considering any fee increase to review that salaries are 62% of the operating budget and ask the Board to also consider the grand jury report for Board members and stated it is not fair or ethical that we have the “Golden Goose” and asked the Board to reduce their benefits since their positions are for public service.
At 7:50 p.m. M/S Lauritzen, Contreras and the Board voted to close the Public Hearing

Doug Hardcastle – The requirements are mandated by the State and we are obligated to make the required improvements. Regarding the mobile home park, as in taxes for the school district, we are required to pay even if we do not have children in school. Mr. Hardcastle also stated that the Board are public servants and do act on behalf of the rate payers.

David Contreras – In response to a question from the audience on why we have to do this, Member Contrertas stated that the State permit negotiated mandates the requirements. We have to provide the infrastructure for the city to grow. He stated he has been in the industry for 36 years. You do your homework, use your tools; public outreach and public education. He stated the employees have gone without increases and it is time to take care of them. The District is facing fines if we do not fulfill our program and regulations. Regarding the rates of districts close to ISD, they may not have the capability to address the future needs.

David Huerta – Mr. Huerta stated he has faced this kind of issue before and has had to bit the bullet to built up rates or go along and hit the wall and then the rate payers would be hit with triple rates to meet the standards. This facility will be state of the art and a rate of $592 is a savings ramping up the payment. Regarding the senior citizens, he feels for them and plans to address a program for discounts. Addressing the developers fees the fees are a very small portion of the overall cost of fees, 11 percent and with the deduction down to 8 percent.

Michael Painter – Mr. Painter stated the Board has thoroughly gone over this budget to cut as much as possible The board is looking at ways to lower rates and will continue to work as hard as they can to keep the rates low.

Chris Lauritzen – Mr. Lauritzen stated that in 2004 when he came on the Board they heard about the massive amount of growth the City would incur. The Board made the decision to build a new plant to stay ahead of development and not run out of room. Mr. Lauritzen stated that you can not compare region 5 with region 2 where salts are not an issue. The salt restrictions in region 2 require us to have much higher regulations.
Mr. Lauritzen stated he can sympathize with the rate payers as he is one himself. He asked the audience how many would like to see windmills by a show of hands – many hands were raised. He stated as a Board we are doing everything we can to keep the rate down for the rate payers. We are here today to tell you what the rates are and work every year to lower the rates from the proposed needed adjustment. Mr. Lauritzen invited all those in attendance to come to more meetings.

M/S Painter, Contreras the Board unanimously voted to adopt Ordinance No. 45 and Order No. 11-25 designating the District Secretary to publish a summary notice of the Ordinance to adopt the increase. (Ordinance 45 and B.O. 11-25)

9A. CONSIDERATION OF FISCAL YEAR 2011/2012 PROPOSED BUDGET.
Mr. Williams stated the Board had a workshop on May 24th and staff brought back the changes and implemented them in the budget.
Mr. Hardcastle stated he is opposed to staff receiving the proposed 2% COLA and also opposed to the raise in medical fees as the staff has had no lay-offs or furlough days. Mr. Contreras stated compared to our industry the budget is very fair. Mr. Williams state the industry average is running 3% compared to the proposed 2%. Mr. Huerta stated the 2% is something necessary or we will see reversals in staffing. Mr. Lauritzen stated the 2% COLA is $29,000 per 1% or $.34 per month to the rate payer. He has owned a marina for 24 years has not been able to give his staff a cost of living increase. ISD needs to stay in step. If we don’t, we start seeing changes in staff. He is in favor of a 2% COLA. Mr. Painter stated that the 2% COLA means staff are still losing 3-4% per year. We built this plant and have an excellent staff. We gave to rate payers $900,000 made on cattle and stated he is in favor of the 2% COLA. Mr. Hardcastle stated he, Mr. Lauritzen and staff worked on the budget and did a great job. Hearing no public comment, Mr. President asked for a motion.
M/S Contreras, Lauritzen and the Board voted to adopt the FY 2011-2012 Budget with Mr. Hardcastle opposed. (B.O. 11-27)

9C. AUTHORIZING GENERAL MANAGER TO ACCEPT BIDS AND AWARD CONTRACT ON PAVEMENT REHABILITATION PROJECT ON JERSEY ISLAND TO BE COMPLETED BY JUNE 30, 2011 – PROJECT NO. ISD-11-01
Ms. Skrel reported to the Board that one bid was submitted and asked the Board to authorize the General Manager to award the bid to ALB, Inc. General Contractors for the amount of $48,000. M/S Contreras, Lauritzen and the Board voted to authorize the General Manager to accept the bid and award the contract on pavement rehabilitation project on J.I. to ALB, Inc., General Contractors for the amount of $48,000 and for the work to be completed by June 30, 2011. (B.O. 11-26)

9D. AUTHORIZING GENERAL MANAGER TO ACCEPT BIDS AND AWARD CONTRACT ON SECURITY SYSTEM AT WASTEWATER TREATMENT PLANT.
Ms. Skrel reported to the Board she received three bids on the Security System for the WWTP. The three bidders were Bay Area Alarm, ADT and Scheer Alarm. The highest bidder was $71,443 and the lowest bidder was $63,309. Ms. Skrel stated the bids were not comparable and two did not include the wire. Mr. Hardcastle stated his preference would be to accept the local bid.
M/S Hardcastle, Lauritzen and the Board unanimously voted to authorize the General Manager to accept the bid and award the contract on the Security System at the WWTP after Ms. Skrel contacts bidders for amounts on equal terms and contends of bids. (B.O. 11-28)

9E. AUTHORIZING GENERAL MANAGER TO ACCEPT BIDS AND AWARD CONTRACT ON A 40 FOOT BY 160 FOOT STEEL BUILDING KIT. PROJECT NO. ISD-1102
Ms. Skrel reported to the Board that she received one bid for the pole barn and the bid was for $66,000 to provide the building and an additional $39,000 to erect the building. Ms. Skrel reported the budget only allows for $50,000 for the structure. Staff recommends the Board to take no further action. M/S Lauritzen, Hardcastle and the Board voted to table and reject the bids due to the amount being outside the budget amount. (B.O. 11-29)


10. Staff Reports
President Painter thanked staff for submitting their written reports. The information was very informative for the Board.

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.

Tom Williams - Mr. Williams reported to the Board that he and Mr. Painter met with the City Development committee. They met with Jim Frasier, City Manager, DWD, High School Dist, CC Water all met with the interest of commercial aspects to address rates to attract business into the area. Times have changed and old formulas have changed.

11. Board Member Advisory Reports
Michael Painter – President. Painter officially appointed David Contreras and David Huerta to the Public Outreach committee.

David Contreras – Member Contreras reported the Public Outreach committee met today. He reported the rate payers deserve recognition of what is being done and is working on developing a stronger public outreach program.

David Huerta –Member Huerta reported regarding public outreach, the committee is exploring the idea of piggybacking with other agencies to share costs for publications. He also reported the committee is working on applying for awards for the District.

Doug Hardcastle– Member Hardcastle reported that the grand opening is approaching rapidly and asked the progress on getting a committee together. He suggested possibly getting the schools involved and having an essay contest with the winner being involved in the grand opening.

David Huerta – Member Huerta reported on attendance at the CASA conference reporting it was doom and gloom. He reported on taking advantage of social media for getting information out to the public.

12. Adjournment
Chairman Painter adjourned the regular meeting at 9:00 p.m. until Tuesday, July 5, 2011 at 7:00 p.m. for the next regular meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.