BCPUD - Board of Directors Meeting Minutes

Bolinas Community Public Utility District
A Regular Meeting Of The Board Of Directors
May 15, 2013 270 Elm Road, Bolinas

1.   Call to Order.

7:34 p.m.

2.   Roll.

Directors Amoroso, Bender, Kimball, Siedman and Smith present; director Siedman presiding.

3.   Manager’s Report.

-- Update on the Terrace Avenue Water Main Relocation Project.

Staff reported that the project is proceeding on schedule. The new main has been installed on Terrace and Park Avenues from the top of stairs to the intersection of Brighton and Park Avenues and disinfection is underway. The next step is for the contractor to install pressure regulators at each of the customer meters on the new line, complete the tie-ins, and then pave. Staff directed the Board’s attention to Change Order 2 for the replacement of the “dogleg” section of pipe in the ten-foot easement between Rafael and Park Avenues; that work has been completed at a cost of $7,500. In addition to this change order, there will be extra work charges for the realignment of the pipe on Park Avenue at the beginning of the job, as well as the installation of the new valve cluster/tie-in at Brighton and Park Avenues. Finally, staff directed the Board’s attention to the copy of the district’s Claim 2 submitted to the California Department of Public Health on April 26^th for reimbursement of $37,254.35 in engineering, permitting and construction management costs.

-- Update on the Terrace Avenue Bluff Stabilization Project

As previously reported, three test borings were completed last month at Surfer’s Overlook as a part of the second phase of geotechnical investigation conducted by Sanders & Associates Geostructural Engineers (“SAGE”). SAGE has indicated that its draft report on the second phase of the investigation will be submitted on May 24^th.

-- Update on the Wastewater Treatment Plant Pump Station and Electrical Upgrade Project.

Director Smith expressed his concerns about the cost of specifying stainless steel for the cabinet construction for the new electronic panels; he believes that a lesser-grade steel for the cabinets will be adequate if the district houses them inside a structure. Director Smith said that the electric panel at his house, which is located in a cubby outside his garage, is very well protected and an enclosure would make all the difference for the district’s panels. As such, the district could save thousands of dollars if the panels are made of a lesser-grade steel. Staff explained that the district’s electrical engineer and its insurance authority (ACWA/JPIA) have recommended stainless steel due to the site conditions and exposure to corrosive salt air; staff also has concerns about the maintenance required for the non-stainless panels (they will need to be regularly monitored and painted) and enclosure structure, particularly as the district will be experiencing a reduction in staff due to a pending retirement. After some discussion, staff agreed to ask the district’s electrical engineer to revise the bid specifications to require bidders to give prices for two options: (a) stainless steel control panels and (b) powder-coated steel control panels inside a protective enclosure.
Staff reported that water consumption is down slightly on the mid-Mesa from this time last year, but not appreciably lower than in past years. The lack of late rains this year, plus the on-going windy weather are resulting in dry gardens, so staff remains concerned about the potential impact of landscape irrigation on the district’s water supply this summer and fall.

Yesterday morning (May 14, 2013) at about 6:00 a.m. the district experienced a break in the raw water transmission line from the Arroyo Hondo; the treatment plant shut down because no water was coming in, which alerted staff to the problem. An investigation revealed a break where the transmission line is located under a steep gulley – fortunately, the break was in the blow-off line and not the main transmission line. However, the blow-off line also is very deep (approximately 8 feet) and down a steep gulley, so specialized equipment is needed to complete a repair. Staff contacted an outside contractor to do the work tomorrow on an emergency basis for approximately $6,800.

The district also experienced a leak in the water distribution system on the Mesa, on Cedar between Elm and Alder two nights ago and it has been repaired. Staff noted that this is a section of water main scheduled for replacement during the upcoming fiscal year.

Staff directed the Board’s attention to a copy of the district’s 2012 annual report to the California Department of Public Health (“CDPH”), which was timely submitted and accepted. Staff attended a Stage 2 Chlorine Disinfection Byproduct meeting at CDPH in Santa Rosa earlier in the month for a very helpful presentation by Janice Thomas, District Engineer. CDPH staff was on hand to help participating districts finalize their Stage 2 Monitoring Plan; a copy of the district’s approved plan is in the Board binders.

Staff noted that the Association of California Water Agencies (“ACWA”) is leading an effort vis-a-vis AB 145, which is a bill introduced in the California Assembly to move the state’s Drinking Water Program, currently within CDPH, to the State Water Resources Control Board. ACWA objects to moving the entirety of the Drinking Water Program out of CDPH and argues instead that only the Safe Drinking Water State Revolving Fund should be moved; ACWA requests that member districts submit letters to the state legislators to this effect. AB 145 evidently was a response by legislators to allegations that funds for improvements to drinking water systems in disadvantaged communities within the state have not been disbursed efficiently enough. After a brief discussion, Board member Kimball agreed to contact professional colleagues in the public health field for more information before the district takes a position on the issue.

On the wastewater side of operations, district customers have been proceeding with the repairs needed to their laterals per the notifications recently issued by the BCPUD. All repairs must be completed prior to the commencement of the County paving projects this summer. During the repair of one of the customer laterals, a crack was discovered in a “Y” fitting on the main; this fitting is directly below a section of the County storm drain that has a large hole in it. As such, during high tides seawater flows into the storm drain rather than out. This almost certainly has been a source of infiltration and inflow to the district’s sewer system. The cracked fitting has been replaced and the County was notified of the compromised storm drain. Finally, spray season is underway. The flows into the collection system are generally low right now and the fields are relatively dry due to the lack of rain this year.

The Board reviewed correspondence sent and received since the last regular meeting, including a notice of bankruptcy from Satcon, the manufacturer of the invertors at the water treatment plant solar arrays and an e-mail exchange between Mark Fraser and Supervisor Steve Kinsey concerning the possible rebuilding of the old groins on Brighton Beach. Supervisor Kinsey does not believe the Coastal Commission would support such an endeavor.

-- Drainage Project Manager’s Report.

The Board reviewed a report submitted by Drainage Project Manager Lewie Likover.

4.    Community Expression.

None.

5.    Expanded Water Use Permit Application – 23 Rafael Avenue (J. Coen).

The Board reviewed an expanded water use permit application submitted by Joel Coen in connection with a planned 440 square foot addition to an existing 885 square foot house. The addition involves the enlargement of the dining, entry and living rooms, with no additional bedrooms, bathrooms or kitchen fixtures. After a brief discussion during which it was noted that no water use was implicated by the project, director Siedman suggested an unconditional permit was appropriate.

D. Smith/B. Kimball      all in favor         to approve an unconditional expanded water use permit

6.   Shelter Agreement with American Red Cross (to Use the BCPUD Building on a Temporary Basis as an Emergency Shelter During a Disaster).

Bolinas Fire Chief Anita Tyrrell-Brown was present to answer questions on behalf of the American Red Cross, which is requesting permission to use the BCPUD building upon request as a temporary shelter in the event of an emergency. Staff explained that the American Red Cross conducted an inspection of the building with the Fire Chief last month; staff has no objection to the request, subject to notifying ACWA/JPIA to determine if any insurance issues are posed by the arrangement. Fire Chief Brown explained that the Board’s agreement to the request simply means that the BCPUD is added to the list of potential available shelters in the community and the BCPUD can refuse a request at any time.

B. Kimball/K. Bender                all in favor                     to approve the Shelter Agreement with the American Red Cross, subject to staff consultation with (and no objection from) ACWA/JPIA.

7.   Memorandum of Understanding between the BCPUD and the Bolinas Fire Protection District Regarding Shared Personnel for the Purpose of Emergency Response.

Staff explained that this MOU embodies an agreement between the BCPUD and the Bolinas Fire Protection District (“BFPD”) whereby the BCPUD agrees to allow interested employees to train in and then perform (on an as-needed basis) the operation of fire apparatus during the weekday workday when most of the BFPD’s authorized volunteers are not in town. In turn, the BFPD agrees to allow its interested employees and authorized volunteers to train in and then perform sewer spill response activities on an as-needed basis. BFPD employees and volunteers will be covered at all times by the BFPD’s workers compensation insurance; the BCPUD employees providing assistance to the BFPD also will be covered by the BFPD’s workers compensation insurance. Director Kimball proposed that the BCPUD employees agreeing to assist the BFPD in this way should be paid (both for training and actual response time) from the district’s “Community Benefit fund” (i.e., the sub-fund of proceeds from the sale of the district’s Pine Gulch Creek property to the National Park Service). Discussion ensued and in response to questions from director Amoroso, Fire Chief Brown explained that what the BFPD really needs are additional trained personnel to drive its fire engines and operate the engineer’s panel when the BFPD’s authorized volunteers are out of town at their regular jobs during the workweek. She anticipates that 2-3 hours of training per month will be needed for the first few months, and then perhaps 1 hour per month of training thereafter; unfortunately, the BFPD cannot pay the BCPUD employees for their time as it is a volunteer fire department. She noted that “mutual aid” programs like this between public agencies are extremely common throughout the County of Marin – each agency pays their own people for their training and response time.

Director Amoroso expressed concern about the amount of time BCPUD employees may spend on BFPD training activities and the potential cost to the district. Fire Chief Brown explained that she does not believe this will be at all time-consuming – she estimated that apart from training, the BFPD may call on the BCPUD employees a few times a year to help for 30 – 60 minutes at a time. Director Kimball moved that the district approve the MOU, subject to the cost of compensating BCPUD employees for training and response time be paid from the Community Benefit fund in an amount not to exceed $10,000. Director Smith proposed certain clarifying revisions to the MOU. Staff agree to provide quarterly reports to the Board of the amounts spent to pay BCPUD employees under the MOU.

B. Kimball/K. Bender                all in favor         to approve the MOU, subject to all costs of compensating BCPUD employees being paid from the Community Fund in an amount not to exceed $10,000.

8.   Asphalt/Concrete Grindings from Marin County Department of Public Works 2013 Paving Projects in Bolinas.

Staff reported that samples of asphalt/concrete from the roads to be repaved in Bolinas this summer were delivered to the lab for testing today and the results should be available in five days. Director Smith proposed that if the samples pass the applicable testing requirements, the district should agreed to accept the grindings. He reported that the Mesa Park Board has agreed that the grindings can be stored at its parking lot on Mesa Road.

D. Smith/K. Bender                   all in favor         to accept the grindings, subject to receipt of acceptable lab test results.

9.   Report on Chlorine Disinfection Byproducts in the BCPUD’s Drinking Water; Staff Recommendation for Implementation of Nano-Filtration Pilot Project at Woodrat Water Treatment Plant.

Staff presented a report prepared by Jonathan Van Bourg, a former water agency professional who is now working as a consultant to the district, as well as the Inverness Public Utility District (“IPUD”). The report is a comprehensive assessment of the BCPUD’s water treatment process and overall operations, with recommendations for moving forward to reduce chlorine disinfection byproducts (“DBP”s) below the applicable maximum contaminant levels. Staff commended the excellent work of shift operator Lewie Likover, who worked closely with Mr. Van Bourg on the preparation of the report, and continues to work with Director Smith to analyze the chemistry of the district’s treated drinking water. The report posits that the best (non-chemical) option for the district to reduce the chlorine DBP’s appears to be nano-filtration. The district has an opportunity to conduct a nano-filtration pilot study (as IPUD has done) and the preliminary tests on the district’s water are encouraging. The California Department of Public Health has approved the nano-filtration pilot study and the cost will be approximately $14,000 to rent and/or purchase the necessary equipment. In response to questions by the Board, Lewie explained that the nano-filtration is secondary to the micro-filtration process and will remove the organic precursors such that the amount of chlorine needed to disinfect the filtered water should be much less; in addition, district operators are implementing many of the other operational recommendations set forth in the report.

D. Smith/K. Bender       all in favor         to accept the Report on Chlorine Disinfection Byproducts in the BCPUD’s Drinking Water.
B. Kimball/K. Bender               all in favor         to approve the implementation of a nano-filtration pilot project at the Woodrat Water Treatment Plant.

10. Review Expanded Water Use Permit Limits and Historical Actual Water Use.

The Board reviewed data in the binders on historical water usage by customers with expanded water use permits (“EWUPs”). Director Siedman said that the Board requested this information due to a concern about the differing quarterly limits on water. Director Siedman noted that the large majority of EWUP holders are using water in amounts well below their quarterly limits. Director Kimball pointed out that the limits differ based on historical water usage, per the formula set forth in the moratorium resolution. Director Smith concurred, but suggested that perhaps the resolution should be revised so that the resulting limits on usage are not so disparate. Staff commented that the Board also should evaluate water usage data for all customers, not only those with EWUPs, to fully understand the differing water consumption across the district. After further discussion, the Board directed staff to provide water usage information throughout the district to director Smith, who agreed to graph the information for the Board’s consideration at the June meeting.

11. Revised Balance of Proceeds from District’s Sale of its Pine Gulch Creek Property to the National Park Service; Staff Recommendations for Allocation of Funds.

Staff presented an updated spreadsheet detailing the expenditures (past and planned) of the proceeds from the district’s sale of its Pine Gulch Creek property to the National Park Service, including recommendations for revised allocations based on Finance Committee discussions during the past several months.

K. Bender/B. Kimball                all in favor         to approve the revise balance of proceeds spreadsheet.

12. Update on Water Supply Augmentation Project.

Director Smith said there is nothing further to report until the rains begin again and the irrigation project commences so that the impact on the watershed surrounding the irrigation well can be evaluated.

13. Volunteer Committee Reports.

-- Alternative Energy: Nothing to report.

-- Bolinas Lagoon Advisory Committee: Director Amoroso said that the BLAC held a meeting but he did not receive notice of it as his name is no longer on the committee list; he noted Ralph Camiccia did not attend, either. Director Amoroso said it is unlikely the local group will survive in any significant way and that currently no one seems to know quite what to make of the new BLAC.

-- Community Path Update: Nothing to report.

-- Downtown Parking & Traffic Committee: Nothing to report.

-- Resource Recovery: The Board received an inspection report for April 2013; no violations or areas of concern are noted in the report.

-- West Marin Mosquito Control Coordinating Council: Director Kimball reported that the Council met on May 6^th and had a visit from a “sustainable mosquito control” product company. The Council has two new members, one from the National Park Service (to replace Natalie Gates) and one from the Stinson Beach County Water District. The Council is entering negotiations with the Marin/Sonoma Mosquito & Vector Control District (“M/S M&VCD”) to renew the non-toxic agreement applicable to West Marin for another 5-year term by January 2014. Finally, while the M/S M&VCD has agreed only to use mosquito control products that are safe for organic farms, there is no comprehensive database of organic farming entities outside of West Marin. The Council therefore is considering a letter encouraging all organic operators to register with the M/S M&VCD.

14.          Other Business.

a. Board Committee Reports.

-- Finance: Report on Draft Fiscal Year 2013-14 Budget; Minutes of the May 7, 2013 Meeting of the Finance Committee; Fiscal Year 2012-13 Audit Engagement Letter from Doran & Associates.

Staff presented the draft Fiscal Year 2013-14 budget and a proposed notice to customers explaining the budget (and noting that no rate increases are proposed for this year). The notice also details the district’s intention to embark on a “five year plan” with regard to its budget and invites customers to participate.

B. Kimball/V. Amoroso                all in favor         to approve the minutes of the May 7, 2013 meeting of the Finance Committee.

Staff presented the proposed engagement letter for the Fiscal Year 2012-13 audit from Doran & Associates. Staff noted that Doran & Associates offers to complete the district’s State Controller’s Office (“SCO”) report for an additional $500; staff believes this is a good price as the district’s outside CPA currently prepares the district’s SCO report at a slightly higher price. Staff recommended that the Board approve the engagement letter, including the additional work to complete the SCO report.

K. Bender/B. Kimball                   all in favor         to approve the audit engagement letter from Doran & Associates, including the completion of the SCO report.

Director Bender stated that the prior month she had offered to talk with people knowledgeable in the utility budgeting, investing and revenue generation process. She spoke with Bonnie Jones, a Bolinas resident who has worked for several different state regulatory and utility agencies. Ms. Jones advised director Bender that the “general wisdom” is not to freeze rates, but rather increase them slowly over time to match increasing costs. Ms. Jones noted that San Francisco currently is replacing sewer lines that date back to the 1920’s; all agencies face difficult questions about how to fund needed capital improvements. Overall, she advises that if the BCPUD has funds available, it should replace and/or upgrade as much infrastructure as possible; in addition, the BCPUD should continue to slowly build its reserves to finance additional projects in the future.

-- Legal: Nothing to report.

-- Mesa Septic, Flood Control and Roads: Nothing to report.

-- Operations: Nothing to report.

-- Park and Recreation: Director Amoroso attended the most recent Mesa Park Board meeting and noted that the County will require a coastal permit for the ballfield irrigation and public restroom project.

-- Personnel: Staff reported that the Memorandum of Understanding between the Board and employees regarding compensation and benefits will be included for Board approval on the June meeting agenda.

-- Sewer: Nothing to report.

b. Minutes of the April 17, 2013 Regular Meeting.

D. Smith/B. Kimball             all in favor         to approve the minutes of the April 17, 2013 regular meeting.

c. Warrants

K. Bender/D. Smith             all in favor         to approve the warrant list.

d. Scheduling of Next Meeting(s)

June 19, 2013 at 7:30 p.m.

Staff asked if the July meeting could be held on July 24^th rather than July 17^th due to vacation schedules; there was no objection.

15. Adjournment.

10:34 p.m.