Ironhouse Sanitary District Approves Raises, GM Gets $13k Increase

At the January 7  Ironhouse Sanitary District Board meeting, directors approved a raise for General Manager Tom Williams of just over $13,000. They also increased staff salaries across the board to the 44^th percentile—up from the 34-40 percentiles.

Williams will now be paid $173,700 ($14,475 per month) which is up from his previous $160,296 salary. For staff, they are all increased at different amounts depending on their percentiles.

According to Sue Walde, District Secretary, Williams’s last raise occurred in 2006. He has also been given then same COLA adjustments as staff since that date. The last adjustment came July 1, 2013 which was at 2.4% COLA adjustment.

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Here are the minutes from the December 3 meeting.

7B.CONSIDERATION OF OPTIONS FOR POSSIBLE STAFF COMPENSATION ADJUSTMENTS IN RELATION TO THE DRAFT TCS STUDY BY KOFF AND ASSOCIATES.

Mr. Williams spoke to the Board and at the Board’s request; staff has prepared alternates to the TCS in the 43^rd, 44^th, and the 45^th percentiles.  The 43^rd and 45^th percentile alternatives were requested by the Board at its October 9, 2013 special meeting and the 44^th percentile alternative was requested by the finance committee at its November 9, 2013 committee meeting.

On behalf of the finance committee represented by Director Huerta, the committee went over the numbers with great concern regarding the bottom line, implementation of the numbers, and how it impacts the next two years budget.  The finance committee recommends the Board use the 44^th percentile alternative that will leave the District with a sound number for budgeting purposes.

Discussion was held on the three alternatives and the impact on the budget and the consideration for the future.

Director Contreras stated that the study will be used to implement and in hopes of connections coming on, to increase in the future.  Director Painter stated that every Board member here wants to keep the District in the 50 percentile, but we have to stay within our budget numbers.  President Lauritzen stated that he is comfortable with the 50^th percentile, but stated that we can’t do it all in one year.  He stated that we need to keep and retain our folks.  We understand that our staff has families and our goal is to take care of our employees.  Director Scheer stated that the TCS needs to be reviewed more often than every 7 years.  Director Contreras stated in the next five years, our goal is to visit the TCS annually to stay current.

Director Painter thanked Director Contreras and Director Huerta for their work.  He stated they have worked on this long and hard and have put a considerable about of time and effort into the study.

Mr. Haefke spoke to the Board and asked, what is the minimum amount number to meet the net revenue.  Director Huerta stated to meet the 45^th percentile was not enough to create a comfortable cushion for the finance committee.  Mr. Welty stated there is not a solvent number to meet the net revenue.  Mr. Haefke asked if we bring up the connections will the 50^th percentile be visited again.

President Lauritzen stated the Board will be more fluid and more diligent to help take care of their employees.  He thanked the Finance committee on behalf of the Board for all their time.

Mr. Frank Casey asked the Board, by not raising the rate and holding the rate at $618 he understands, but it has hurt the employees by not allowing adequate annual COLA’s and raises.

President Lauritzen stated the Board has a responsibility to be fiscally responsible to the ratepayer.  At 14,600 connections each dollar makes a big difference in this past economy.  He also stated that $2.5 million dirt project will help fund the projects reserve account.

Mr. Louis Solana spoke on the Proposition 218 that was passed with a 5 year projection of a rate increase to $680.  He stated as a rate payer he understands the cost of doing business.  For the service provided for $51.50 a month compared to other utilizes needed for a household it is reasonable and folks would pay for the increase to $680.  As an employee we work hard and shouldn’t be at the 35-40^th percentile.  We need to be taken care of.

Mr. Williams spoke to the Board and all attending on the rate proposed in the Prop 218 in F/Y 06/07 to a maximum of $680.  He stated the economy changed and we are still at a high rate as compared to other districts, and as other Districts perform upgrades they are catching up to ISD.  He stated the District is right where it needs to be for a rate.

Director Contreras stated the Board is trying to take care of the issues.  We have addressed transparencies, making the public more aware of our District.  Nothing is the same as it was and the economy has changed.

Mr. Dominic Gardiner asked if the Board is trying to catch up to the 50^th percentile in three years.

President Lauritzen stated if fuel stays down, the solar goes online and we obtain 300 connections, the Board will work to bring the employees up to the 50^th percentile.

Mr. Haefke stated he is looking for a commitment from the Board to bring staff to the 50^th percentile.

M/S D. Contreras, D. Scheer and the Board voted unanimously to implement the Total Compensation Study at the 44^th percentile approving an amount of $144,000.