REGULAR BOARD MEETING
CORBETT WATER DISTRICT
BOARD OF COMMISSIONERS
February 27, 2018
PRESENT BOARD MEMBERS PRESENT: Jeff Hargens, Jack Garrison, Bob Gaughan and Sara Grigsby
BOARD MEMBERS ABSENT: Kevin Wilhelm
STAFF PRESENT: District Manager Jeff Busto and District Clerk Gail Griffith
AUDIENCE MEMBERS David Jacob of Hydra Engineering, William Tribe, Brandon Lanter and Mike Griffith
President Jeff Hargens called the meeting to order at 6:33 p.m.
APPROVAL OF THE AGENDA
Jeff Hargens asked if anyone had any changes or additions to the Agenda. Old Business item 3 “Variable Base Rate” and item #4 “Feasability Study” were removed. They will be kept as future items on the District Clerk’s office calendar. Jack Garrison made a motion to accept the Agenda as modified removing, items 3 and 4 from Old Business. Bob Gaughan seconded, all were in favor, motion carried. (4 yes votes: J.Hargens, J.Garrison, S.Grigsby & B.Gaughan 0 no votes)
President Hargens asked if there were any corrections to the January 23, 2018 regular Board meeting minutes. Jack Garrison made a motion the minutes of the January 23, 2018 regular Board meeting be accepted as presented. Jeff Hargens seconded, all were in favor, motion carried. (4 yes votes: J.Hargens, B.Gaughan , S.Grigsby & J.Garrison 0 no votes)
Account #2338-00: The Board reviewed the information including the Leak Adjustment Request summary and other documents in Board packets. The plumber, Brandon Lanter, who worked to repair the problem for the homeowner was in attendance. Pipe has all been replaced with 2” wirsbo except for a five foot section that is still schedule 80 pipe. Mr. Lanter stated that later in the year the final five foot section would be replaced. Jeff Hargens made a motion to adjust account #2338-00 January 4, 2018 billing of 2005 units down to 257 units, with the caveat that no further leak adjustments will be considered if the final five feet of schedule 80 pipe is not replaced. Sara Grigsby seconded, three yes votes and one no vote, motion carried. (3 yes votes: J.Hargens, B.Gaughan , S.Grigsby 1 no vote: J.Garrison)
Account #3560-00: Customer was present. Board reviewed information in their Board packets. The customer replaced the line from the meter box to the junction box. The rest of the line is still the original line from 1991. Jeff Hargens recommended the customer keep an eye on the rest of the system since the old pvc pipes do wear out over time. Jeff Hargens made a motion to adjust account 3560-00 January 1, 2018 billing of 972 units to their six month average of 50 units and the upcoming March bill to 50 units if it is also high due to the leak. Bob Gaughan seconded, all were in favor, motion carried. (4 yes votes: J.Hargens, J.Garrison, S.Grigsby & B.Gaughan 0 no votes)
Account #1925-01: Customer was not present. Board reviewed information in their Board packets. Jeff Hargens made a motion to adjust account 1925-01 January 4, 2018 billing of 251 units to their prior average from December 2016 and December 2015 of 18 units. Jack Garrison seconded, all were in favor, motion carried. (4 yes votes: J.Hargens, J.Garrison, S.Grigsby & B.Gaughan 0 no votes)
Sara Grigsby had no written Treasurers Report. Sara Grigsby reported she has the habit of visiting the office two to three times per month to sign checks and also review financial statements including bank statements, checks and invoices.
Sara Grigsby made a motion to accept the Financial Reports for both December 2017 and January 2018. Jack Garrison had a question as to whether the invoice to the school for the second part of the backflow had been paid yet. The District Clerk responded it had not been paid since it was sent out recently. The entire backflow assembly and all parts have been delivered to the school. District Manager Jeff Busto said the old unit will be pulled by a third party contractor.
Jack Garrison continued regarding the District selling supplies of any kind to customers. He said he thought, as a commissioner, that the District needs to stop providing any more equipment or supplies to any of our customers so we don’t have a repeat of the District paying for a backflow test for a customer. District Manager Jeff Busto said we won’t be selling any supplies to customers. Short discussion of budgeted line items. Sara Grigsby restated her motion to accept the Treasurer’s Financial Reports for both December 2017 and January 2018 as presented. Jack Garrison seconded, all were in favor, motion carried. (4 yes votes: J.Hargens, J.Garrison, S.Grigsby & B.Gaughan 0 no votes)
HEALTH INSURANCE PREMIUM CONTRIBUTION
The Board received a packet of Health Insurance information. Wilson Heirgood Insurance representative Rich Allm addressed the Board. He went over requirements for hours as it relates to the affordable care act. The District needs to make sure they are in compliance with what the carriers allow and secondly we will need to look at the market in the future. Currently the District has Kaiser Insurance and they track only one contribution in their system for employees. If Kaiser reviewed their information they are one of the few that would allow for a pro-rated contribution for part-time but the District needs to make sure we are in compliance with the employee handbook as well. We don’t want to contradict the agreement we have with the insurance contract. In 2010 when the Affordable Care Act came in to effect the rules stated that employers must provide the same benefits the same contribution, the same probationary period to all employees and could not discriminate based on the type of job. Management versus hourly employees would have to be treated the same. The discrimination piece was delayed until further regulation was released and it has not been restated. In the small group market all the carriers went with the model that there would be on contribution for all starting in 2014. There have been some changes because the individual mandate will be going away in 2019. Mr. Allm went over information in the packet passed out earlier. The packet is included in the minute book. He continued that historically you would set your hours for full time employees between 17.5 and 40 hours. One carrier, PacificSource, thought that the State had removed the requirement but until we hear differently that is the requirement we work with. Small employers are not required to offer health insurance. If the employer chooses to offer health benefits then they must pick a number of hours an employee must work to qualify for the insurance benefit. Rich said he did not recommend a split contribution. Our current health insurance policy renews the end of 2018. We are currently with Kaiser Insurance. Jack Garrison asked if there is a problem we need to address between now and December 31st regarding our Health insurance contribution? Rich Allm said the only issue he could see is that the District needs to define what a full time employee is. Currently we have a resolution that states any employe who works 20 hours or more will be provide a prorated contribution for health insurance premiums compared to those working 40 hours. The District Clerk said she cannot find a personnel policy or resolution that defines what the District considers a full time employee. She did note that she has not looked at all of the policies. Jeff Hargens said his assumption was full time is 40 hours. He didn’t think any other number had been discussed for full time. Part-time was at 20 hours when you were offered the benefit and it was pro-rated. Jeff Hargens continued and said if we are legal with the law he didn’t think we should change anything. Jack Garrison agreed that things will be changing dramatically in the next few months and we shouldn’t make any changes. Rich Allm stated that there are no legal issues currently with the Kaiser contract. Jeff Hargens said we should stay with the current policy and the assumption that 40 hours is full time. Jack Garrison commented that the job descriptions give information on hours worked and what benefits employees are receiving. Sara Grigsby said the Employee Manual should be updated to state that full time employment is recognized at 40 hours. It can be edited if need be next year.
Rich Allm emphasized that carriers do have participation requirements so if enough employees do not sign up then the District would not meet the requirements. Typically they want 75% of eligible employees to participate. Sara Grigsby said we can have a further conversation prior to renewal to consider what we want to designate as full time. Rich Allm said it should be looked at and possibly setting 30 hours to receive the benefit and if you work under that you would not be offered benefits. This would eliminate the pro-rating. Jeff Hargens said he liked the idea of a cut line for offering benefits. Sara Grigsby asked Jeff Busto if a thirty hour work week, with our current positions, for offering health insurance would be fair to our employees. Jeff Busto said he thought it would work. Rich Allm said the problem with a twenty hours to start to receive benefits is that if you have temporary summer help they can end up qualifying for benefits if they work more than two months. Jack Garrison said the Board needs to consider not only health benefits and the number of hours worked but how that effects other benefits. Discussion of pro-rated benefits.
No changes made tonight in regards to health care benefits. Board will discuss designation of hours for full time employees, health benefits and how changes effect other employee benefits. The Board thanked Rich Allm for the information.
AGED RECEIVABLES QUARTERLY REPORT
Sara Grigsby commented that every number is understandable but questioned when the District can write off the places where there are bankruptcy or foreclosures. Jeff Hargens stated that at the bottom of the report the District Manager has recommended that all of the accounts listed as 360 or greater should be removed. These properties were either in bankruptcy or foreclosed on prior to the Board policy in 2015 that requires a delinquent bill stays with the property. Sara Grigsby asked if new owners are advised that they will be required to pay prior owners water bills if there is a balance left when they purchase the property. The District Clerk responded that people do call and ask if property is in our water district and if there is an outstanding bill. We do provide copies of water use history and let people know if there is an outstanding bill. When renters leave we do our best to get a forwarding address and send them a final bill and then one more if it isn’t paid. We also will call owners to let them know their renters have a balance due and remind them that they will be responsible if the renter does not pay the bill. Sara Grigsby made a motion to accept the recommendation of the District Manager and remove account numbers 3005-00, 5340-00 and 9770-00 from our receivables. Jack Garrison seconded, all were in favor, motion carried. (4 yes votes: J.Hargens, J.Garrison, S.Grigsby & B.Gaughan 0 no votes)
SANITARY SURVEY REPORT
Jeff Busto reported the Sanitary Survey was completed. We did receive our report from Oregon Health Authority late because their representative went on vacation right after the survey. He has given us an extension on our date to reach compliance. Jeff Busto continued and stated that the survey is a little confusing in the sense that some language under deficiencies listed came about because of regulatory changes so there was no way we could be in compliance. There is a line at the Treatment plant that was in compliance but with changes it is now required to not only have a double check but also an RP device. The “ no protocol for under-certified operators” has already been corrected as noted in handouts the Board received. Continued discussion of the survey. Jack Garrison asked what the timeline and cost is to bring us back in to compliance for the items still outstanding. Jeff Busto said he and David Jacob are working on the items and should be in compliance by August 1, 2018. We don’t have a cost estimate at this time.
Jack Garrison asked about the minor discrepancies on page 3 and 4 on the Sanitary Report. What is the go-forward plan for these so they are resolved. Jeff Busto replied we will have a punch list and document our corrections. Some of the items have been taken care of and others should be cleared by their deadlines.
Jack Garrison passed out a copy of the list of Corbett Water District violations posted on the Oregon Health Authority Website. Jeff Busto commented that our analytical violations come back on us even if it is a Lab problem. That has been happening recently. He said he is considering switching labs. Lab samples are time sensitive. The District has started requesting and receiving a copy of the signed chain of custody reports when we
drop off the samples. This won’t stop the violation, but, we can show that we have the chain of custody in our file to show we did our part. Jeff Hargens asked about the “late/non-reporting” violations. Jeff Busto reported those are shown as non-reporting because they were not received by the Oregon Health Authority by the required deadline. The samples are time and temperature sensitive and when they were mailed to the lab they were at the correct temperature but somewhere along the line they were allowed to get warm. We have to re-sample and the samples are then late. Discussion of options for labs. David Jacob stated there are three labs that are drivable from here, Alexis, Pixis and Test America. Pixis is 45 minutes away while the other two are on the west side and are about 1.5 hours travel time if traffic is good. David Jacob continued that there is a problem with all labs and the possibility of bad samples. Jeff Hargens said if it can be driven to a lab rather than mailed that would be better than mailing. David Jacob said that in the systems he runs when he takes samples he plans that day for samples and driving them to the lab. This occurs at least twice a month. Jack Garrison expressed his concern that we get more violations than other small districts and maybe they have a better process. Jeff Busto said we will look into other labs.
WORKERS COMPENSATION POLICY
The Board reviewed information from their Board packets. Jack Garrison said the Board needs to look at the classification of employees. He said the Manager should be listed in two job classifications rather than just Waterworks operators. The Board should be reviewing this information prior to the July 1, 2018 renewal. The information regarding claims history will be sent out for the March meeting with more information on how to split the Manager out into two classifications. The District Clerk commented that SDAO will not do split classifications.
District Manager Jeff Busto went over the Manager Report that was included in the Board packet. Jeff Busto said that gates, signage, camera monitoring will be placed at both Headworks for added security. We are waiting for snow melt to get better access to install the gates.
Divers will be inspecting Reservoirs 3, 4 and 5. They will be inspecting the spider wires inside the tanks and check for rust or anything that is loose. They also do minor cleaning.
Discussion that at least four meters have been replaced due to irregular or no reads.
Jack Garrison asked if there is a plan for replacing the Utility Worker II position. The District Manger stated that he did not plan to fill the position at this time. He said it would be more cost effective to bring contractors in to complete some of our bigger jobs. He said that he and the two other utility workers could take care of the small jobs. He continued that it is an employees market right now. There are many utility jobs being advertised close by that offer a benefit package that we cannot compete with. The offer $8-10 per hour more plus a better benefit package. Jeff said he will keep looking but unless he finds someone with certifications he is not going to do a general advertisement of the job.
Jeff Busto reported that four of the five community budget members and Sara Grigsby have all been given tours of the Treatment facility and Northfork Headworks. The all seemed pleased to get the information about our water system.
Jeff Busto said he is considering bringing a proposal to the Board to increase the District Clerk position to 40 hours per week.
ADJOURNMENT OF MEETING
Jeff Hargens made a motion to adjourn the meeting at 8:35 p.m. Jack Garrison seconded, all were in favor, motion carried. (4 yes votes: J.Hargens, J.Garrison, S.Grigsby & B.Gaughan 0 no votes)
REGULAR BOARD MEETING
CORBETT WATER DISTRICT
BOARD OF COMMISSIONERS
January 23, 2018
PRESENTBOARD MEMBERS PRESENT: Jeff Hargens, Jack Garrison and Kevin Wilhelm
BOARD MEMBERS ABSENT: Sara Grigsby and Bob Gaughan
STAFF PRESENT: District Manager Jeff Busto, Assistant Clerk Lynda Ronell and District Clerk Gail Griffith
AUDIENCE MEMBERS David Jacob of Hydra Engineering and Mike Griffith
President Jeff Hargens called the meeting to order at 6:30 p.m.
APPROVAL OF THE AGENDA
Jeff Hargens asked if anyone had any changes or additions to the Agenda. Jack Garrison made a motion to accept the Agenda as presented. Kevin Wilhelm seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes)
President Hargens asked if there were any corrections to the December 19, 2107 regular Board meeting minutes. Jeff Hargens made a motion the minutes of the December 19, 2017 regular Board meeting be approved as presented. Kevin Wilhelm seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes) President Hargens asked if there were any corrections to the December 27, 2017 special Board meeting minutes. Kevin Wilhelm made a motion the minutes of the December 27, 2017 special Board meeting be approved as presented. Jack Garrison seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes)
LEAK ADJUSTMENT ACCOUNT#4960-00
The Board reviewed the information including the Leak Adjustment Request Summary and other documents that were included in their Board packets. Jeff Hargens made a motion to adjust account #4960-00 October billing of 252 units and their January 2018 billing of 157 units to their three month average of 22 units per the recommendation of the District Manager. Kevin Wilhelm seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes)
Treasurer Sara Grigsby was not present at the meeting. Jack Garrison asked for clarification regarding a payment on December 20, 2017 to Bruton Backflow for a backflow test for account 5600-00. He asked for background on why the Water District is paying for a backflow test for a customer. District Manager Jeff Busto will review the information and get back to the Board. The Treasurer’s report was tabled until the next Board meeting.
INSURANCE RENEWAL 2018 and Longevity Credit Decision
The Board reviewed the updated insurance information that was provided in the Board packets. Jack Garrison said he would like to have confirmation that the “insurer” has signed the Earthquake Endorsement prior to paying the bill in March. In the next three to six months the Board will review property values with the District Manager to confirm amounts are correct. Jack Garrison expressed concern that the power unit in the Treatment Plant does not show up in the insurance policy. Jeff Busto responded that the power unit is included in the insurance of the building. Short discussion of the Longevity Credit. Jeff Hargens made a motion the Board accept the SDIS longevity credit and rate lock agreement as presented. Kevin Wilhelm seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes)
WATER USAGE DEMOGRAPHICS REPORT
The Board received an updated graph, which was slightly different than the one sent out in their Board packet.
Kevin Wilhelm asked what the “private fire” column represents. It was explained those are the private firelines that some customers have. Some are for homes with sprinkler systems. Jeff Hargens was surprised the Parks used that much water and that there are enough commercial businesses to use as much water as they do. The District Clerk explained the commercial customers include the stores, restaurant, the Churches and the Camps.
It was noted the graph is not proportional. District Manager Jeff Busto said the Parks are very diligent and read their meters daily. They are adding a restroom at Women’s Forum. The “other public authority” column includes the schools, job corp, the County shop and the Post Office. Jack Garrison commented that it is “good info”.
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VARIABLE BASE RATE
Nothing to report tonight. This item will be postponed.
HEALTH INSURANCE DISTRICT PREMIUM CONTRIBUTION
Board reviewed the information that was emailed out prior to the Board meeting. The District Clerk explained that 17.5 hours and up is considered full time per the State. All Employees should be treated the same regarding the amount the employer contributes for health insurance. The Federal requirement under the Affordable Care Act does not require this for small employers. Currently the Water District pro-rates the contribution for employees working between twenty hours and forty hours per week. The Board decided a new resolution needs to be drafted to rescind Resolution 2012.08.01 “Health Insurance Cap” and state that the contribution will comply with State Law related to Health insurance. The Statute should be noted in the resolution. Discussion of the effective date. Jack Garrison said to be legal we should make it effective the date it is signed and not include anything about being retroactive. Jeff Hargens stated that to be fair we should make the resolution retroactive to January 1, 2018. Kevin Wilhelm agreed. Resolution will be prepared for the next meeting.
Nothing to report at this time. Table until next month.
FILTER POND #1 BASE RATE ORDINANCE 2014-11-01
The Board received a copy of the ordinance in their Board packets with information regarding the use of the funds collected under the Filter Pond Base Rate. The District Clerk reported the office needs clarification that the Filter Pond base rate will end with the February 2018 billing. The ordinance states that the base rate would run for 38 months or 19 billing cycles or “until the project is complete.” The Board agreed that the Filter Pond Base rate of $10 per billing cycle should be removed after the February 28, 2018 billing. The District Clerk, Gail Griffith noted if there were no objections the office will put a notice on the billing post cards that it would be the last charge for the Filter Pond Base Rate. There were no objections.
Discussion of how the Filter Pond 1b funds will be used. Jeff Hargens stated that per SDAO we can use the funds collected for other things related to distribution of water or system improvements. He further stated that this ties in with the feasibility study to show where this block of money should be spent and to have an explanation to customers as to where the money will be used. Jack Garrison asked if the $83,700.41 listed on the summary sheet is inclusive of what has been spent on the cleaning of Filter Pond 1. The money to clean Filter Pond 1 is not included in the $83,700.41.
Jeff Hargens continued that it would be good to include the money in the feasibility study to show that it has a purpose, whether it goes for new meters, which we are in dire need of, or another project. If the meters are purchased at one time we can get the software and training included. New meters will show us more accurately how much water we are using. Jack Garrison asked if we would be replacing bigger meters like Job Corps. District Manager Jeff Busto replied we would have to refurbish the large meters in place. The current meters were at end of life when the District purchased them. When the meters wear out they read lower or stop completely. The District Clerk asked why the District can’t replace the larger meters as well as the ¾” meters. David Jacob stated that two inch or smaller could be replaced, anything bigger would have to be refurbished in place. District Manager Jeff Busto stated we only have one three inch meter. Jack Garrison asked if there is any guess of what the cost would be. District Manager Jeff Busto replied that industry wide the manufacturers are going to radio read and touch read will be obsolete. They are in the transition of changing all of their promotional information. In the next month or two they should have it complete and there will be some great incentives on the radio read program. Radio read is a proven product. Jack Garrison said it may be opportunistic to jump on this and possibly get the discounts and incentives. District Manager Busto said he is working on it. Jeff Busto said he is leaning more towards replacing all the meters in the system at once since our meters are failing so rapidly. The cost of a ¾” meter is about $150.00. Approximate cost for meters is $150,000. There software and training is included if we purchase all of the meters at once. Discussion of paring up with another entity for a larger purchase. Further discussion. Jeff Busto noted that with radio read meters instead of two employees taking 3.5 to 4 days to read the meters one employee could read the entire district in a few hours.
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BUDGET CALENDAR AND APPOINTMENT OF 2018- 2019 BUDGET OFFICER
Jack Garrison made a motion to appoint Jeff Busto the 2018-2019 Budget Officer. Kevin Wilhelm seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes) There were no objections to the Budget Calendar.
Regarding the Budget Committee Glenda Hagan was on the volunteer list from last year but was not chosen for the committee and is still very interested. Chris Witka has lived in the community for some time and is very excited to be on the committee and said she is very interested in finding out more about the Water District. Both of them will be receiving information about the Budget process. Jack Garrison said both new members should get budget training. Jack Garrison made a motion that Chris Witka and Glenda Hagan be appointed to the Budget committee. Kevin Wilhelm seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes)
The January Manager’s report was included in the Board packets and a copy is filed with the minutes. The District Manager read from the report. Discussion of security signs with gates at both headworks. Tyler Sletterink completed his probationary period and will be offered regular full time employment.
There was a water main break on Christmas eve which has been temporarily repaired.
The meter program was discussed earlier.
Jack Garrison asked if there was any information about the Sanitary Survey. District Manager Busto said the final report has not been received yet. Jack Garrison passed out some information regarding the Most Recent Water System Survey from the Oregon Health Authority Website. Short Discussion. Jeff Busto will provide the Board with the full report at the next Board meeting. David of Hydra Engineering stated that the survey requires an action plan. Jack Garrison asked why the District got two more write ups in October of raw source non- reporting and returned to compliance the end of December. District Manager Jeff Busto replied that it was due to the fire. David Jacob commented regarding the late reporting violations in October. Those are tests that are a “one off” deal. They are called “long term enhanced service treatment water level II”. It was done five years ago and this was a repeat of that. When it was completed previously they sent out information on how to complete the tests and where to submit the information. This year they just said remember to do them. The samples were taken, delivered, but not processed in accordance with the proper methodology. That resulted in a non-reporting result at the State. Jack Garrison noted it would be good to have a list in the office of those items that need to be completed so the office staff could do a double check so we can avoid late reporting violations.
Jack Garrison asked if the anything had been resolved with the backflow preventer at the school. They should be billed.
PUBLIC COMMENTS ON ITEMS NOT LISTED IN AGENDA
FUTURE AGENDA ITEMS
Jack Garrison said he would like to review the Workers Comp Policy. Would it be possible to get a copy of the current policy and cost at next months meeting to review and consider getting bids for when we renew in July. Jack Garrison said we need to review the policy and see if we are covering to much or to little and then look for quotes with other carriers. The District Clerk stated that Workers Comp is based on the amount of payroll for each class of employees. When considering workers comp the categories are set. Jack Garrison said we should review job descriptions and see if the classification match and take a look at our policy.
ACTION ITEMS FOR NEXT MONTH
BOARD MEMBER ADDITIONAL ITEMS FOR THE GOOD OF THE ORDER
Jeff Hargens made a motion the meeting be adjourned at 7:25 p.m. Jack Garrison seconded, all were in favor, motion carried. (3 yes votes: J.Hargens, K.Wilhelm & J.Garrison, 0 no votes)
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