Aug 28, 2013

Board Meeting July 18, 2013


Draft
Gardiner Sanitary District
Board of Directors Meeting
July 18, 2013

     Meeting called to order by Jackie Degman, present were Board Members  Marc Fullhart, Dennis Conger, and Charlotte Hinshaw.  Also present were Mary Chambers, Mack Holman, Keith Anderson, Steve Snurbush, and Esther Siderman.

     Jackie conducted the swearing in of newly elected board members Dennis Conger, Charlotte Hinshaw and herself, and read the declination letter from Mike Quartararo due to relocation of primary residence.  Next was the election of officers, Charlotte nominated Jackie as chairman, Jackie nominated Dennis as vice-president and Jackie nominated Charlotte as secretary/treasurer.  All nominations were then voted on and passed by unanimous voice vote.

     Written copies of the previous minutes were passed out and read, Charlotte motioned to accept the minutes, seconded by Dennis, motion passed with a unanimous voice vote.

     Written copies of the financial report were passed out and read, Charlotte  motioned to accept the report and pay the bills excluding the Reedsport bill until after executive session, Dennis seconded and the motion passed by unanimous voice vote.

         
      Old Business:

         Ray was absent so there was no new report concerning the American Bridge easement and/or daily log reports.
                 
               
      New Business:

          With no daily log report and with Ray absent there was no new business to report on.

                          
       Safety Meeting: 

          There was also no new information to report for the safety meeting since Ray was not present.

       
                  
      Items not on the Agenda, Open to the Public:  

      Keith Anderson from the DEQ was granted time to approach the board with a question.  He asked what the board’s plan of attack was concerning the future project.  Jackie responded that they still plan to go with the “north to the IP site”.  Mr. Anderson responded that as far as the DEQ is concerned that the clear choice for the district would be to replace the pipeline going to Reedsport and would like the district to make an expeditious plan because the time has come to move one way or the other.  The MAO that the district entered into with the DEQ is past due and needs to be updated.  Jackie responded that we are unable to do anything without settling the dispute with Reedsport over what and/or how much is owed to them, so that is what they are moving to try to resolve now.

     Mack expressed concern over the growing costs and fluctuating numbers regarding the cost of the project.  He asked for clarification on how the district had calculated the overpayment amounts that had been paid to Reedsport in the past and also how the district has calculated what is currently owed to GSD by Reedsport.  Jackie said that most of that calculating had been done by Dennis and he would be able to get that information to him. 
      
Meeting went into executive session pursuant to ORS.192.660(1)(f) to discuss consultation with counsel concerning contract negotiations, then meeting returned from executive session.

          Jackie asked for a motion on whether to pay the Reedsport bill or not, Dennis made a motion to pay the current amount billed by the city, Marc seconded and the motion passed by unanimous voice vote.

Suggestions for Next Meeting:

-       Part time supervisor’s report
-       Update on the contract with City of Reedsport
-       Wet well meeting with Garrett Pallo
-       Update on American Bridge easement

     Marc made a motion to adjourn, Charlotte seconded and the meeting was adjourned.
             
Submitted by Mary Chambers (Office Manager)

     

Board Meeting June 20, 2013


Draft
Gardiner Sanitary District
Board of Directors Meeting
June 20, 2013

     Meeting called to order by Jackie Degman, present were Board Members  Mike Quartararo, Dixie Hash, and Charlotte Hinshaw.  Also present were Mary Chambers, Dennis Conger, Mack Holman, Ray Davenport, Garrett Pallo, and Esther Siderman.

     Written copies of the previous minutes were passed out and read, Charlotte motioned to accept the minutes, seconded by Dixie, motion passed with a unanimous voice vote.

     Written copies of the financial report were passed out and read, Mike motioned to accept the report and pay the bills excluding the Reedsport bill until after executive session, Dixie seconded and the motion passed by unanimous voice vote.

         
      Old Business:

         Dixie asked if there was any new information from American Bridge regarding the easement, Ray responded that he has not heard any more from them since talking to David Speakman a month ago.
                 
               
      New Business:

          Ray did some maintenance on the pumps and everything is running smoothly at the moment.  The mounting system for the pumps is deteriorating and needs to be repaired, so Ray has plans to complete that project in the near future.  Mike questioned the pump volume readings, even though the readings between the Reedsport and Gardiner side are getting closer to even, the actual amount is reading higher than the draw down test, so he asked Ray if he has found a reason for that.  Ray is still working on figuring that out and Garrett Pallo volunteered that he has a few possible solutions for determining the difference and will work with Ray to get to the bottom of it.
                           
       Safety Meeting: 

          Ray is still working on updating the procedure manual per OSHA.

        Ray presented an opportunity to the board to partner with Winchester Bay Sanitary District to purchase a new camera system for pipe inspections.  Winchester Bay is need of an updated system and would be willing to split the cost and ownership of the new system with GSD.  The cost per district would be $2870.00.  Dixie made a motion to partner with Winchester Bay to purchase the new camera, Mike seconded and the motion passed by unanimous voice vote.

          Garrett made a report on the One-Stop meeting that was held in Salem on June 11th.  He explained that a refresher meeting was necessary because of how much time has passed since the last one.  He said that the DEQ had some faulty data regarding the districts patrons; they had a median income for the area as $46,000.00 when in reality the actual annual median income for GSD district patrons is closer to $28,000.00.  This was an important correction because a classification of  a “distressed” state will give the district a much better interest rate.  The two options discussed at the meeting were:   1)  taking the project south to Reedsport, assuming that the county would participate fully, there would be a $6.5 million dollar block grant available at a 1% interest rate.  The projected monthly billing rate per EDU would be $94.00.  Since no predesign has been done for this option, that would be an increased cost to the project.
            2)  taking the project north to the IP site.  There would be no county involvement if this option is chosen, so the block grant would not be an option.  The DEQ would require an additional hydrogeologic study for groundwater evaluation and some additional minor environmental studies.  But before committing to any funding options, the agents at the meeting agreed that the claim by Reedsport that the $1.6 million dollar owed them by GSD whether the project goes north or south, needs to be resolved.  Garrett also explained that if the project goes south and the IP property is ever developed in the future, the existing Reedsport plant is not big enough to handle an industrial expansion and the rebuilding of the GSD pump stations that would be part of the going south project, would also not be big enough to handle the expansion and would also not be upgradeable, so the whole cost of that would be wasted. 
          Garrett will contact the specialized groups that would be necessary for the additional studies that the DEQ is asking for and get an estimate of what that would cost.

           Jackie read the 2013-2014 budget that was recommended by the budget committee, Mike made a motion to accept the budget as recommended, Charlotte seconded and the budget was adopted by unanimous voice vote.

           Jackie read resolution 2013-1 amending the 2012-2013 budget, Dixie made a motion to adopt resolution 2013-1, Mike seconded and the resolution was adopted by unanimous voice vote.


         
      Items not on the Agenda, Open to the Public:  

          Mack Holman suggested that all board members should be on the same page about what the project options mean.  He said that Marc has been telling people that rates would be going down if the project goes north.  Jackie said that she would let Marc know that that was not appropriate.

Meeting went into executive session pursuant to ORS.192.660(1)(f) to discuss consultation with counsel concerning contract negotiations, then meeting returned from executive session.

          Jackie asked for a motion to contact the district’s attorney to request input on mediation vs arbitration regarding the Reedsport contract and billing issues.  Dixie made a motion to contact the attorney for input, Mike seconded and the motion passed by unanimous voice vote.

Suggestions for Next Meeting:

-       Part time supervisor’s report
-       Update on the contract with City of Reedsport
-       Wet well meeting with Garrett Pallo
-       Election of officers
-       Update on American Bridge easement

     Dixie made a motion to adjourn, Mike seconded and the meeting was adjourned.
             
Submitted by Mary Chambers (Office Manager)

     

Jul 18, 2013

Budget Committee Meeting May 16, 2013

Gardiner Sanitary District 
Budget Meeting 
May 16, 2013

Meeting called to order by Dennis Conger, present were Board Members Jackie Degman, Dixie Hash, Charlotte Hinshaw, Mike Quartararo, and Marc Fullhart.  

Budget Committee Members present were Dennis Conger (Budget Committee Chairman), Kathy Quartararo (Budget Committee Secretary), George Degman, also present Mack Holman, Steve Lindsley, Glenn Buickerood, Mary Chambers, and Steve Schnurbusch. Keith Andersen arrived 10 min late. Ray Davenport arrived 18 minutes late and Garrett Pallo arrived just as the meeting was ending.

Dennis called the meeting to order, and Kathy read a draft of the April 18th, 2013 Budget Meeting.

Dennis opened by suggesting the $79,425. in the budget to pay Reedsport should be increased $20,000. (to read $99,425). Rather than make a cash payment in April, we used a credit as per the Apr 16th email agreement with Reedsport. As for the months of May and June, Dennis recommends to also use credit for those 2 months. This ends the fiscal year adjusting cash balance in the budget by $20,000.  This brings the beginning cash to 184,055.


In negotiating with Reedsport, we’re not paying currently. Talks regarding next fiscal year are ongoing, because this fiscal year is over. Dennis asked for comments, explaining there will be more information during the executive session.

George asked, why the discrepancy? Dixie explained, due to flow rates, the estimates for flow rates are more than a year out. Not behind monetarily, just behind on the rate of flow. Flow rates are based off last years’ usage, not our current flow rates. Dixie said the contract with Reedsport has expired. As we go forward, Gardiner Sanitary District will continue to pay on a month-to-month basis honoring the expired contract.

George motioned to accept the suggested changes to the budget numbers from $79,425. to $99,425. Kathy seconded. Motion passed by unanimous voice vote.

The group then set up budget hearing to go over changes after executive session. George motioned the group meet again on Thursday, June 6th, 2013 at 6pm. Kathy seconded, and it was passed by unanimous voice vote.

Dennis then asked for further comments? There were none.

George moved to approve the budget with changes. Kathy seconded and the meeting was adjourned.


                        Submitted by Kathy Quartararo (Budget Committee Secretary)


Jun 28, 2013

Board Meeting May 16th, 2013


Gardiner Sanitary District
Board of Directors Meeting
May 16, 2013

     Meeting called to order by Jackie Degman, present were Board Members  Mike Quartararo, Dixie Hash, Marc Fullhart, and Charlotte Hinshaw.  Also present were Mary Chambers, Dennis Conger, Mack Holman, Ray Davenport, Glen Buickerood, Garrett Pallo, Keith Anderson, Steve Schnurbusch, and Steve Lindsley.

     Written copies of the previous minutes were passed out and read, Charlotte motioned to accept the minutes, seconded by Marc, motion passed with a unanimous voice vote.

     Written copies of the financial report were passed out and read, Dixie motioned to accept the report and pay the bills, Marc seconded and the motion passed by unanimous voice vote.

     Dixie made an adjustment to the agenda to move the Reedsport contract discussion to executive session and adjust the executive session notation on the agenda to ORS.192.660(1)(f).

    
      Old Business:

         Mike summarized the emails he has received from various sources (i.e. Sierra Club, Pipeline Safety Trust, DEQ, etc) regarding problems with underwater pipelines generally as being overwhelmingly against any such undertaking, especially if there is a feasible alternative available to avoid it.
                 
           Dixie reported on the 4th engineering study and summarized it’s findings as the cost of going north vs going south would be about equal and that whichever way the project goes, Reedsport would still bill GSD 1.2 million dollars for debt service.  Dixie stated that she has issues with regards to both of these findings, we need better counsel for interpretation of the contract on whether we would still be liable for the 1.2 million if the project goes north.  Garrett responded to a question regarding pipeing under the river and stated that crossing the river is feasible, but the difference would be that if the project goes south, the 1.2 million would be incorporated into the monthly rate, and if the project goes north, the 1.2 million would be required to be paid up front.  Dixie stated that per our attorney, the issue is political, not financial or engineering.  Ray asked if collection system degradation is included in the cost estimates and Garrett said that it was not.
     Dixie stated that the funding that the district has been trying to obtain with the county as a sponsor is completely off of the table, the county has made the decision that it will not support the district’s efforts to go north.  Therefore, they will be attending a one-stop meeting on June 11th to see what other options are available.  Garrett explained that the purpose of the one-stop meeting is to bring all of the options and sources together to see what “real” options are available.  There are 3 possible scenarios:
1)   going south with the project with block grant funding (county sponsored)
2)   going north with the project with block grant funding (county sponsored)
3)   going north with the project with some other funding source (no county sponsorship)
The district needs to determine what the impact to rate payers will be with each scenario.  And since option #2 seems to be off the table they will be concentrating on the other two options at the one-stop meeting.

     Keith Anderson, DEQ, wanted to let the district know that while they understand how this project has not moved forward as quickly as anyone would have liked and that it has had many setbacks that have been out of the district’s control, the DEQ needs to see that it moves forward one way or the other so that the schedule gets back on track and the MAO is set.  He is pleased to see that the board is working hard to make sure that the most economical solution is found.  He explained that the EPA is pressuring the DEQ to see some progress being made, so they feel the need to let the district know that progress needs to start happening soon.

     Mack Holman had a question for Garrett regarding the difference in cost to go north vs south and Garrett explained that the difference was really only about $50,000.00 and that the latest thinking is to not use the outflow pipe on the IP site and that would save about $200,000.00.  Mack also questioned the “bond” monies that the Gardiner residents had voted in and what had happened to that money; it was explained that he was mistaken, there was no bond, but there was a local option tax rate that was approved by the voters in 2009 and that 2013 would be the final year of that assessment, so the voters would most likely be asked to vote on extending that this coming year.  Mack also questioned how much more in engineering fees would need to be expended if the project were to go north and Garrett stated that the environmental studies and the engineering pre-design has already been done, so they would not need to be done again.

     Ray reported that he has met with American Bridge again regarding the easement and gave them a copy of the easement agreement, the manager took it and said he would pass it on to whomever needed it to get it signed.
     He is also, still working on the pressure main project and will probably have it finished in a couple of weeks.  He still need to make arrangements with Reedsport to flush the force main.  The meter readings are still showing a much greater flow rate than the draw down test indicated, so he is still investigating that difference.
     There is nothing extroadinary to report from the daily logs; the grouting was done on Pitt St but there is a big problem with the pipe bowing because it is basically a swamp under the pipe so it gets no support.  He dye-tested the apartments next to the welding gallery and located the lateral.  The owner’s at 250 Spring St are working on disconnecting their gutters from the sewer drain, and Jewett School is working on locating a leak and will contact Ray when they have resolved that.           
        
      New Business: 

          
                             
       Safety Meeting: 

          Ray is still working on updating the procedure manual per OSHA.

         
      Items not on the Agenda, Open to the Public:  

          Mike asked Ray to get an estimate of cost for an inspection of the outfall pipe at IP.
          The Fire Department would like the district to stuff a flyer in the next billing for 4th of July fireworks donations.  Dixie made a motion to allow that, Mike seconded and the motion passed by unanimous voice vote.
          Mr.Anderson asked if we had planned for a project manager and the board responded that they have but have not been able to start looking for one since the project has been stalled for so long.  But as soon as a decision has been made to start the project, that will be done.

Meeting went into executive session pursuant to ORS.192.660(1)(f) to discuss consultation with counsel concerning contract negotiations, then meeting returned from executive session.

Dixie made a motion to withhold May and June payments to Reedsport in lieu of amounts owed to us being repaid, Marc seconded and the motion passed by unanimous voice vote.

Suggestions for Next Meeting:

-       Part time supervisor’s report
-       Update on the contract with City of Reedsport
-       Adopting next year’s budget
-       One Stop Meeting update
-       Update on pressure main project
-       Update on American Bridge easement

     Dixie made a motion to adjourn, Charlotte seconded and the meeting was adjourned.
              
Submitted by Mary Chambers (Office Manager)