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BOARD MEETING MINUTES

REGULAR MEETING
WEDNESDAY, APRIL 11, 2007

A.    CALL TO ORDER/ROLL CALL

Director Sapanai called a meeting of the Board of Directors of the Stinson Beach County Water District to order on Wednesday, April 11, 2007 at 5:10p.m., at the District Office located at 3785 Shoreline Highway in Stinson Beach, California.

Directors present:
Elizabeth Sapanai, President
Jim Zell, Vice President
Lawrence Baskin, Director
Barbara Boucke, Director
Scott Tye, Director

Staff present:
Toby Bisson, Interim Secretary
Christine Casper, Recording Secretary

B.    PUBLIC EXPRESSION

Director Baskin stated that he received a call from a reporter at the Point Reyes Light to comment on a story and asked what the District policy is regarding speaking to members of the press. Director Sapanai responded that calls from reporters should be forwarded to the general manager; in the absence of a general manager, calls should be forwarded to the board president. Director Tye stated that the same reporter from the Point Reyes Light has been calling staff repeatedly. Director Sapanai added that the reporter has also phoned her; she returned his call, left a message, but has not heard back from him. Director Sapanai stated that she would provide staff with a phone number for her that can be given to members of the press.

C.    SETTING OF AGENDA

Director Baskin made a motion to adopt the agenda as presented; motion approved by unanimous vote.

D.    GENERAL BUSINESS

  1. Review of Policy Regarding the Sale of Mailing List Labels: Director Sapanai, of the Legal Committee, stated that she confirmed with District counsel, Ray McDevitt, that the District can sell its mailing list and can charge different fees for non-profits vs. companies/individuals that are for profit; however, the District must communicate to its customers that the mailing list is sold, and must allow customers an easy method of removing themselves from the list. Director Sapanai added that the District must also communicate with those who have purchased the list to relate updated opt-out information; Director Boucke suggested that the District sell the list as "single use only" and, thus, the District would not be responsible for contacting purchasers with update information.

    Director Sapanai stated that she has a problem with customers purchasing the mailing list to advertise products not endorsed by the Water District; she suggested that in addition to the opt-out information sent to customers, that the District also include a disclaimer that none of the services or products advertised via use of the mailing list have been approved by the District.

    Director Boucke made a motion to adopt a policy that continues the ability of for-profits and non-profits to purchase the District's mailing list, that the District include an opt-out policy and a disclaimer stating that the District does not endorse any products or services advertised using the purchased list; fees would be $100.00 for non-profits and $250.00 for private companies/individuals. Motion seconded by Director Tye and approved by unanimous vote.

    The Board discussed the difficulty in maintaining a log of those who have purchased the District mailing list and informing them of opt-out updates and address changes. Director Baskin reiterated as a solution to the updating difficulty that at the list be sold as a single-use purchase; at point of sale it would be communicated to the purchaser that the list may only be used once, and for additional mailings the list must be repurchased. Though enforcement would be impossible, the District would fulfill its legal obligation with regards to keeping current with opt-out requests. Director Baskin made an amendment to Director Boucke's motion: In addition to selling the list to profits and non-profits on the basis indicated in the motion, the District shall provide that the sale is for a single use only and any subsequent use is prohibited and requires repurchasing the list. Amendment seconded by Director Boucke and approved by unanimous vote.

E.    COMMITTEE REPORTS

The Finance Committee gave a report:
Director Baskin reported that the Finance Committee reviewed February financial reports, and that there are still three areas of problems occurring with respect to financial reporting. The bookkeeper, Janice Payne, conducted a conference call with Harris, technical support for the District's accounting software, during which two of the three problems were resolved. Janice and Harris are currently working on the third problem. During the conference call, Janice discovered that the District is using version 12 of the software, whereas Harris is currently on version 20; the District has never upgraded its system, but is working on doing so. Another problem that was discovered is that the District is only backing up its data once a month. Harris offers a service that would force a back-up of the system every night; the service would also cover any necessary training of staff, etc. Janice is to obtain the cost information for the automated back-up service and present it to the Finance Committee.

Barbara Boucke reported that there are three items on the task list to be performed by Janice Payne that need to be addressed. First, at the Finance Committee meeting it was confirmed with Janice that she does not have to rerun January financials. Second, a voided check procedure is securely in place; Janice is obtaining Toby's signature on voided checks and a central file has been created to contain those checks. Third, the task list states that Christine will be trained on the payroll procedure; Director Boucke obtained the board's authorization to have Janice spend some time training Christine.

Director Boucke distributed the financial "dot" report to the board members. Director Boucke asked Christine to verify (from bank statements) the balances in those cash accounts.

Director Boucke distributed an updated draft 2007-2008 budget and explained that it includes existing staff salaries with a 3% cost of living increase only (merit pay increases are not reflected); the draft budget also includes projected increases in PERs and medical benefits. Director Boucke pointed out that the current draft budget shows an excess of $329,000 before depreciation; annual depreciation expense is approximately $148,000. Water continues to not fund itself; wastewater funds itself, and property tax represents the majority of the District's funding.

Director Baskin noted that cost of new meter connections was budgeted at $15,000 (up from $10,000). Director Baskin and Boucke added that they met with the Wastewater Committee and also increased several wastewater- related fees. Christine stated that apportionment tax revenue is budgeted at $75,000 for next year; for this fiscal year to date (9 months) the District has received $61,000 in tax revenue.

Director Baskin concluded that the 2007-2008 fiscal year budget is nearly set, except for personnel changes that may occur as staff negotiates for merit pay increases and benefits packages.

The Board discussed the budgeted increase in meter connection fees. Director Baskin suggested that the District increase new connection fees to $19,750; Director Tye stated that increasing from $10,000 to $19,750 is too much, but that he would be willing to support an increase to $15,000. Director Tye added that fees were last increased about three years ago from $7,500 to $10,000. Director Baskin suggested a compromise by raising new connection fees to $17,500; fee increase to $17,500 approved by unanimous vote.

The Personnel Committee gave a report:
Director Zell reported that he and Director Boucke met with Buck Meyer, the official designated representative for the empoyees, and received from him the employees' requests for compensation for fiscal year 2007-2008. Buck confirmed that the employees are requesting a 2.7% at 55 retirement benefit, a 3% cost of living increase, and individual merit pay increases. Toby and Chris have asked to maintain their temporary/interim pay increases, Buck and Donny have asked for a 10% merit pay increase, Jackie has asked for a 12% increase, and Christine has submitted a letter regarding her request. Director Zell stated that an actuarial evaluation has been ordered from PERs to determine the cost to the District of increasing the employee benefit to 2.7% at 55.

Director Zell stated that Donny Melendy is slated to increase his certifications this year; historically, the District has awarded additional certifications with an increase in pay. Buck Meyer, due to the current staffing situation in the District, has taken on additional field supervisory responsibilities. Christine has provided a letter that provides some justification for her request; Director Boucke added that the board/staff is continuing to layer on increasing responsibilities to Christine. Director Zell confirmed with Buck Meyer that the staff's priority is the PERs retirement benefit increase. Christine has provided the Personnel Committee with some spreadsheets reflecting the staff's requested pay increases. Director Zell to bring spreadsheets with salary information to the next board meeting (April 21), during which a closed session will be held.

Director Baskin stated that it is typical in the event of retirement benefit increases to have staff contribute to the retroactive buy back. For example, Toby has been employed with the District for 12 years; if the PERs benefit is increased to 2.7 percent, the District would pay the increased rate going forward, but in order to realize the2.7 percent after the requisite years of service, employees would have to go back to their first day of employment and contribute .7 percent more for the years of service to date.

Director Tye noted that due to attrition of staff over the past several years, cross-training has become much more critical; that cross-training is a benefit to the District that is compensable to the current staff.

The Water Operations Committee gave a report:
Toby Bisson stated that he met with Alan Richards, of Stetson Engineering, Inc., regarding the new water treatment plant; and created a list of projects to be completed this summer. The first project is to realign the District's fence onto the property line and have the Sherfey's remove their chicken coops (since they are on the District's property). Mr. Sherfey agreed to move the coops, but asked the District to plant some trees that were promised several years ago; Toby stated that the District will plant the trees. Second, the culvert at the existing plant needs to be fixed or replaced. Third, there is a slide area on the property with a big tree that has to be removed. Toby stated that WRA has been contacted about performing an environmental site evaluation, and indicated that the District may have to do another survey of the site.

Director Boucke asked Toby to provide her with costs for the tree removal and culvert project, as those two projects should be funded out of the operations budget, and not the capital improvements project. Toby distributed the water treatment plant replacement project timeline to the board and stated that there has to be a meeting to discuss what parts of the projects will be performed by staff, then costs for the project can be calculated. Toby added that he may plan a fieldtrip to an existing Pall and Koch facility before awarding the bid for the filtration system.

Toby Bisson stated that part of Alan Richard's evaluation of files for the water treatment plant replacement project involves developing a rationale for the project. Mr. Richards is to provide a report on his determinations to ensure that everyone is on board as the project proceeds.

The Wastewater Committee gave a report:
Director Sapanai stated that Director Boucke, on behalf of the Finance Committee, attended the last Wastewater Committee meeting and discussed increasing some wastewater fees for the next fiscal year. Director Sapanai stated that for the next board meeting (April 21), the Wastewater Committee will have some draft changes to the wastewater code for board consideration. Director Sapanai suggested emphasizing at the next board meeting the policy issue of customers repeatedly dropping by the District and demanding engineering time and other staff time without an appointment. Toby Bisson stated that he received a $2,100 invoice from E & M for next year's Wonderware tech support; Director Sapanai asked Toby to refer the invoice to the wastewater engineer.

Toby Bisson reported that two local people expressed interest in securing a gardening contract with the District. The Board discussed parameters of the contract and requirements for applicants and decided that the Personnel Committee would refine the job description then discuss it at a regular board meeting.

F.    ADJOURNMENT

The next regular meeting was set the next workshop meeting for Wednesday, March 14 and the next regular board meeting for Saturday, March 24. Motion to adjourn made by Director Baskin at 6:45pm, seconded by Director Tye and approved by unanimous vote.

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