Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

REGULAR MEETING OF THE BOARD OF THE BETHEL ISLAND MUNICIPAL IMPROVEMENT DISTRICT BETHEL ISLAND, CALIFORNIA 3085 STONE ROAD BETHEL ISLAND, CALIFORNIA

DATE: June 15, 2017

The Bethel Island Municipal Improvement District met in regular session lo cated at 3085 Stone Road, Bethel Island, CA at 7:00 p.m. Upon roll call, t he following were found to be present: Directors: Tony Berzinas, Bob Amrine, Bruce Smith, Lee Simpson, and Lisa Kirk. Interim District Attorne y Dave Larsen, Interim District Manager Jeff Butzlaff, District Engineers Mike Mirmazaheri and Jeff Twitchell (from GEI), were also in attendance.

BOARD DISCLOSURE OF POTENTIAL APPEARANCES OF CONFLICTS OF INT EREST None.

PRESIDENT’S MESSAGE President Smith stated regarding the District’s focus in our community. It is extremely important that we continue to focus on the betterment of our condition with the levees, staff and the community.

CONSENT CALENDAR A motion was made by Director Amrine and seconded by Director Berzinas to approve the minutes of the Special Meeting on May 18, 2017; approve the minutes of the Regular Meeting on May 18, 2017; and approve Maze & Associates Letter of Understanding for services associated with the preparation of the Fiscal Year Ending June 30, 2017 District Audit. The vote showed five directors in favor. Motion carried.

ANNOUNCEMENTS None.

PUBLIC COMMENT Mr. Michael Coe stated that his neighbor told him that there is a mole problem on the levee.

Mr. Phil Kammerer stated that he lives in the Willows Mobile Home Park and the ditch behind the propane tank has not been maintained for at least four years. There is a fire hazard with all the overgrown brush and tules.

Board approved 7/20/17 Page 1 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

Director Berzinas stated residents do not have to wait for a monthly board meeting to report issues with the levee or drainage on the island. People can call into the office or leave a message with the answering service.

Mr. Mark Whitlock gave an update on the Fire Department calls and issues. The Knightsen Station will be closing at the end of June which will leave three stations open. Weed abatement is in progress and the Fire Department will be sending out notices soon. BIMAC is working on a program to cut down on illegal fireworks on the island because of the extreme fire danger and the increased response times of the Fire Department. They are working on banners to educate the public regarding the felonies associated with illegal fireworks. On October 7th, 2017, BIMAC will be sponsoring the Health & Safety Fair, which will start at 10:00am.

MONTHLY UPDATE/PROGRESS REPORT BY DELTA COVES REPRESENTATIVES Mr. Ed Horn gave an update on the Bethel Island Road project. The road will be paved as soon as they are done with the water lines. The fire hydrants from Cypress Road to the Bethel Island Bridge are now working.

The representatives of DMB gave a brief update on the home construction phase of the Delta Coves project.

UPDATE ON BETHEL ISLAND CULVER/DRAINAGE/STANDING WATER ISSUES, AUTHORITY AND RESPONSIBILITIES, AND POSSIBLE COOPERATIVE INTERAGENCY AND VOLUNTEER COMMUNITY GROUP TO ADDRESS Interim District Manager Butzlaff stated he is working with Mr. Mitch Avalon from Contra Costa County Public Works to try and get other agencies involved in the efforts to solve this problem. Contra Costa Mosquito Vector Control District has not responded to various communication efforts. He would like to try to get these agencies together before he leaves the District in August. The District does not have the funding or the legal authority to maintain the private culverts and ditches which are the property owner’s responsibility.

There was a discussion on funding sources to research the seepage issues. There will need to be education provided to property owners on how important the private property ditches are to the overall drainage system. FEMA would maybe be another grant resource for the project.

Mr. Coe stated he would like to know what he can do to help fix the drainage problem because his house flooded this past winter.

Board approved 7/20/17 Page 2 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

Levee & Drainage Superintendent Martins stated their property is in a low spot and there used to be a ditch across the street that helped properties from flooding which is not there anymore. The property is lower than the road and the water gets trapped. Right across the street there is a DI and it would be a simple fix to put in a connection to the pipe. The pipe or culvert would need to go under the road (County).

President Smith asked staff to get a report back to the Interim District Manager explaining the solution, and who or what entities need to be involved and the cost to fix the Coe’s drainage issue.

Interim District Manager Butzlaff stated the County has been contacted but has not yet responded.

President Smith asked for an update at the next meeting.

CONTINUED DISCUSSION REGARDING INSTALLATION OF NEW LEVEE GATES The discussion continued regarding the new levee gates. It was stated that the new gates are being placed in the exact same place and at the exact same width as the old gates. The wood posts and cable that is being used now is very dangerous and the cable can’t be seen at night. The new gates are bright yellow and can be seen at night.

The Board agreed the new gates are more substantial and safer than the wood posts and cables. Staff can continue installing the new gates.

UPDATE ON BIMAC/FIRE DISTRICT WATER ACCESS COMMITTEE MEETINGS Interim District Manager Butzlaff submitted his report to the Board concerning his perspective of the meetings. The dry hydrants are a supplementary system per the Fire District. The primary system is the water tanks that are required in front of properties. All weather roads on the levee are secondary to the Fire District and that is why they did not contact BIMID. The all weather roads are not a high priority at this time compared to getting rock on the levee after years of inadequate funding. The all weather roads will be addressed when other levee projects are being completed including the Horseshoe Bend and Northwest Levee major DWR funded.

Ms. Belinda Bittner stated the water tanks are only required on new homes or if you tear down a house and rebuild. Everybody is thinking that these tanks have to be on everyone’s property which is not the case.

Board approved 7/20/17 Page 3 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

There was further discussion on the dry hydrants and levee access to them. It was mentioned that sod is not supposed to be on the crown of the levee because there is a lot of overwatering which causes ruts on the levee and vehicles getting stuck. Once sod is installed, it is no longer an all weather road. The issue for BIMID will be on how to educate people of the importance of an all weather access road on the levee and how there shouldn’t be any sod or lawns on the levee crown.

PUBLIC HEARING FOR BIMID LEVEE AND FLOOD CONTROL FACILITIES AND REPAIR ASSESSMENT DISTRICT ADOPT RESOLUTION NO. 17-06-15A “ACCEPTING THE FINAL ENGINEER’S REPORT AND ASSESSMENT DIAGRAM, AND ORDERING THE LEVY OF ASSESSMENT FOR FISCAL YEAR 2017-18 FOR THE BIMID LEVEE AND FLOOD CONTROL FACILITIES MAINTENANCE AND REPAIR ASSESSMENT DISTRICT” Interim District Manager Butzlaff stated this process is an annual requirement for the Assessment District. The CPI has resulted in an increase to a total of $229,077 for Fiscal Year 2017-18. When Delta Coves starts to be occupied, the properties will be reassessed accordingly.

Mr. Kyle Tankard from SCI went through the process for the Assessment District.

Interim District Manager Butzlaff explained the benefits of the Assessment District associated with the upcoming Horseshoe Bend Project ($5.1 Million total project cost; BIMID cost share $326,000 @ 6% cost share) and the Northwest Levee Improvement and Stone Road Levee Seepage Project ($7,642,903 Million total project cost; BIMID cost share $555,100 @ 7% cost share) and the CDBG Grant to upgrade and replace a pump and the corroded inlet pipe at the main pump station ($110,000 total project cost; BIMID cost share $34,500 @ 29% cost share).

A motion was made by Director Berzinas and seconded by Director Amrine to adopt Resolution No. 17-06-15A “Accepting the Final Engineer’s Report and Assessment Diagram, and Ordering the Levy of Assessments for Fiscal Year 2017-18 for the Bethel Island Municipal Improvement District Levee and Flood Control Facilities Maintenance and Repair Assessment District”. The vote showed five directors in favor. Motion carried.

Board approved 7/20/17 Page 4 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

ADOPT RESOLUTION NO. 17-06-15C “CONDITIONALLY ACCEPTING THE FIRST DELTA COVES FACILITY (THE BREACH STRUCTURE), AND AUTHORIZING AND DIRECTING THE DISTRICT ENGINEER TO SUBMIT THE REQUIRED DISBURSEMENT REQUEST FORM Attorney Dave Larsen presented the Amendment to the Agreement and the Resolution to conditionally accept the first Delta Coves facility. This will trigger the CFD payments that BIMID will receive, including the funds for Fiscal Year 2016-17. The District’s Engineer will need to submit a Disbursement Request Form. BIMID and Delta Coves agreed at the last meeting that it made more sense to accept facilities as they are completed instead of accepting all the facilities at one time. If BIMID didn’t accept the first facility by this board meeting, there would not have been a payment for the 2016-17 fiscal year, which would have prevented BIMID from providing the 15-month bridge funding now required to implement the Maintenance and Operations Agreement. The facility (breach structure) will be conditionally accepted based on other items be completed before fully accepting the facility.

Mr. Jeff Twitchell from GEI presented the engineering and testing of the breach structure.

There was a discussion on the other items that need to be completed.

Interim District Manager Butzlaff stated there wasn’t any budgeting for staff to be trained on the breach structure equipment. The budget should be modified to reflect the additional staff time for training.

There was a comment that the costs would not be that much more. Adding that into the budget would not be a problem.

A motion was made by Director Berzinas and seconded by Director Amrine to adopt Resolution No. 17-06-15C “Conditionally Accepting the First Delta Coves Facility (Breach Structure) and Authorizing and Directing the District Engineer to Submit a Disbursement Request Form”. The vote showed five directors in favor. Motion carried.

DISCUSSION OF ROCK MATERIAL STORED AT THE MITIGATION SITE Director Kirk stated she had spoken to Mr. Dean Moreland and asked if this item could be continued until the next meeting.

Director Berzinas stated that the appearance of potential hazardous material work was present and nothing had been brought to the Board so that questions could be answered from the public. This was an interagency arrangement and it should have had a one page document

Board approved 7/20/17 Page 5 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17 signed by the Board. Fortunately, the material tested clean and we will have a lot of material that can be used.

President Smith stated that BIMID employees are competent at their job. It is important to remember that if there had been issues with the materials, this would have been put off.

Director Berzinas stated there should have been an agreement in place. The staff did fine work and the donated material will benefit the District, however with no written agreement with roles and responsibilities, this arrangement could have gone badly.

Interim District Manager Butzlaff stated the matter was an oversight by staff and if something in the future comes up, like the District did with RD799 for sand, we will prepare a Memorandum of Understanding for the Board’s consideration and approval instead of the administrative Memorandum of Understanding we put in place.

Director Kirk stated the report from September or October 2016 did not list a site. The soil was taken from Bethel Island Road and put on the Mitigation Site and contained. She asked where the soil was tested at.

Mr. Ed Horn stated the soil that was taken out and tested in September or October 2016 was not the soil that was taken to the Mitigation Site. He had a meeting with Diablo Water who wanted a pipe pulled out and put in shallower. He then asked Levee & Drainage Superintendent Martins if he were interested in the used AB. He wrote the Memorandum of Understanding describing what was going to be done with the material. After the material was moved to the District’s Mitigation Site, they took a sample and the District just received the results today. There was no detection of any contaminates. He asked Berloger for a summary of the contents.

After much discussion, Director Berzinas asked that this item be put on next month’s agenda in order to correct the staff report with the appropriate data. Also put in the cubic yards and the value of the material in the report.

President Smith stated the Board will accept the amended report at the next meeting.

Board approved 7/20/17 Page 6 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

DISCUSSION OF SELECTION OF UP TO FOUR (4) CANDIDATES AND ADOPT RESOLUTION NO. 17-06-15B “FOR THE ELECTION OF DIRECTORS TO THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY BOARD OF DIRECTORS” A motion was made by Director Berzinas and seconded by Director Kirk to adopt Resolution No. 17-06-15B “For the Election of Directors to the Special District Risk Management Authority Board of Directors” voting for Michael J. Karen, David Aranda, Cindi Beaudet and Jean Bracy. The vote showed five directors in favor. Motion carried.

ADOPT FINAL FY 2017-18 BIMID BUDGET, AND ON AN INTERIM BASIS REAFFIRM ANNUAL DELTA COVES OPERATION AND MAINTENANCE BUDGET IN ITS CURRENT FORM Interim District Manager Butzlaff stated, as he mentioned earlier, staff training for the breach structure wasn’t included in the budget; he had understood that would be a totally contracted function. He stated the Delta Coves budget when finalized will be adjusted accordingly. He also raised the issue that prior to the Delta Coves Maintenance and Operations Agreement being signed in February 2016, BIMID had a Reimbursement Agreement with Delta Coves. which was to pay for staff, engineering, legal fees for the project in contractual support of Delta Coves efforts to bring their facilities up to condition for ultimate BIMID acceptance. However, under the Maintenance and Operations Agreement provision for the First Deposit of the advance of first year funding (as a firewall to protect BIMID’s financial structure from “bridge funding gaps”) within 60 days of the February 2016 Agreement, the Reimbursement Agreement was terminated. Yet such (primarily Engineering review costs) continued, which Delta Coves subsequently told us to simply take out of the First Deposit funds. At the time, with no other recourse, we did so, still with the expectation that such remaining costs would be incidental at most given the expectation that facility completion was imminent and on schedule. However, the unanticipated extreme delays have left us, over a year later, in the position of having incurred over $130,000 in such costs with no end in sight until all facilities are brought up to standard for BIMID acceptance. This represents to a significant depletion of the $274,900 First Deposit of our first year advance to be used at BIMID’s discretion, an order of magnitude we now feel needs to be addressed and restored. The increase from the 6-month “bridge funding” (on which the February 2016 Maintenance and Operations Agreement was predicated) to now 15 months also makes it even more imperative to remedy this situation. Interim District Manager Butzlaff also stated he would put something in writing and send it to our attorney.

Attorney Dave Larsen stated this should be discussed in Closed Session.

Board approved 7/20/17 Page 7 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

It was agreed that a Closed Session be set up to discuss Delta Coves issues.

A motion was made by Director Berzinas and seconded by Director Simpson to adopt the Final FY 2017-18 District Budget and the Delta Coves Operation and Maintenance Budget. The vote showed five directors in favor. Motion carried.

STAFF REPORTS INTERIM DISTRICT MANAGER REPORT – UPDATE ON GOALS, STRATEGIES, PROBLEM AREAS, WORK COMPLETED A written report was available for the public.

LEVEE AND DRAINAGE SUPERINTENDENT MONTHLY REPORT OF WORK PERFORMED A written report was available for the public. Rock placement is being done on Willow Road between Bethel Harbor and Piper Pointe.

DISTRICT CLERK MONTHLY REPORT OF WORK PERFORMED Date Address Concern Response/Action 5/18/17 3537 Willow Rd Will BIMID be No. Rock placement replacing the damage to lawn 5/18/17 3597 Willow Rd Would like to be Staff met with PO and will present during rock work with them. placement 5/22/17 3800 Stone Rd Smashed drop inlet Staff forwarded the info to cover Delta Coves 5/22/17 1882 Taylor Rd Tree fell over @ 1878 Staff notified PO to call a can we come and tree service pick it up 5/25/17 3073 Willow Rd W 3073, 3065, 3089 Added to work list levee erosion, beaver damage 6/1/17 51 Taylor Place Complaint of dock Staff investigated and gave repair without the PO number of Army permits Corps and submittal of BIMID project app

Since the last meeting, the District has received and approved 3 project applications.

The next agenda cutoff will be Tuesday, July 11, 2017. Please have agenda items submitted to staff by that time.

Board approved 7/20/17 Page 8 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

The next Regular Board Meeting will be on July 20, 2017 at 7:00pm.

Safety Days: 1467 days with no accidents.

Please note: AB1234 – Ethics Compliance Training Directors, key staff and standing committee members must complete the Ethics Compliance Training every two years in accordance with Government Code sections 25008, 365124.5 and added sections beginning with 53232. If your name is in BOLD, your certification is due. The training can be taken on the FPPC website and at the District’s SDRMA online training site. These two training opportunities can be completed on your own schedule. Please contact the office for your username and password for the SDRMA website login. A completion certificate MUST be filed with the District office.

Directors and Staff Tony Berzinas 3/3/16, due 3/2/18 Denece Bixby 11/18/15, due 11/17/17 Julie Hugel 12/19/16, due 12/18/18 Bob Amrine 11/18/15, due 11/17/17 Lee Simpson 11/18/15, due 11/17/17 Bruce Smith 5/31/17, due 5/30/19 L. Jeff Butzlaff 2/25/15, due 2/24/17 Lisa Kirk due by 12/31/17

Brown Act Compliance Training Brown Act Training is a useful tool in local governance. Every Board Member needs to know about the Brown Act. It is complex, with many intricacies and yearly changes to the Act itself. Brown Act Training is recommended for every Board Member and Executive Employee every year to keep compliant with recent changes in the Act.

Brown Act Training is available on the CSDA web site (as an on-demand webinar; and is free to SDRMA members (as is BIMID)). Staff recommends that each Board Member take a refresher course on the Brown Act. Please contact Denece if you wish to register for the on- demand webinar.

REPORT OF MONTHLY WORK TO BE PERFORMED A written report was available to the public.

TREASURER’S REPORT Balances as of 5/31/17: Checking Account is $36,045.54 Money Market Account is $102,958.64 Includes: Operating Reserve $ 100,000.00

Board approved 7/20/17 Page 9 of 10 Bethel Island Municipal Meeting Minutes Improvement District Regular Meeting of 6/15/17

Unrestricted Funds $ 2,958.64 Park Account is $3,929.59 House Number Account: $388.42 Delta Coves First Deposit is $117,067.15 Special Project #2 Money Market is $2,502.17 (Unrestricted Funds) LFCF Repairs and Improvements: $51,953.37 LFCF Maintenance: $7,438.71

Advance Funding from DWR Special Project #3 Money Market is $1,565,719.36 (HSB Project)

June 2017 Accounts Payable after 5/31/17: $136,861.41 General Account

A motion was made by Director Simpson and seconded by Director Berzinas to pay the bills. The vote showed five directors in favor. Motion carried.

BETHEL ISLAND PARK Nothing to report.

WEBSITE Nothing to report.

BIMAC/BETHEL ISLAND FIRE STATION UPDATE Nothing to report.

BETHEL ISLAND PARK COMMITTEE (AD-HOC) Nothing to report.

DELTA INTERGOVERNMENTAL WATCHDOG COMMITTEE (AD-HOC) Nothing.

CORRESPONDENCE None was discussed.

SUGGESTION FOR FUTURE AGENDA ITEMS None.

A motion was made by Director Berzinas and seconded by Director Kirk to adjourn the meeting. The vote showed five directors in fav or. Motion carried.

The regular meeting adjourned at 10:45pm.

Submitted by Denece Bixby, District Clerk

Board approved 7/20/17 Page 10 of 10