The Ironhouse Sanitary District (“District”) engaged Municipal Resource Group, LLC (MRG) to review Jersey Island’s current revenue generating activities and provide the District with an analysis of Jersey Island’s suitability for alternative revenue generating uses. The District also requested MRG explore alternative ownership or stewardship options congruent with the District’s goals. Our report provides recommendations for potential additional uses, options for alternative ownership and/or stewardship, and an estimate of the timeframe for a full analysis of the recommendations.
Findings Overview – Jersey Island was originally purchased for effluent disposal through land application for the District’s original aerated pond treatment plant. The District’s regulating agency designated a location on the San Joaquin River at the north eastern end of Jersey Island that met its requirements. The Island could provide suitable locations for installation of the District’s facilities to serve the outfall requirement. In purchasing the Island, the District continued the cattle operation that existed on the Island to serve as a revenue generating opportunity. The District established the hay production on the Island to support nitrogen uptake of the District’s recycled water.
Based on our evaluations of the Island, we believe that the District would significantly benefit from exploring a number of partnership options and alternatives that would potentially:
- Generate additional revenue;
- Reduce ongoing expenses;
- Spread the costs for maintenance of the Island;
- Bring partners to jointly participate in the Island’s ownership and operations; and
- Spread the potentially significant economic risk the Island represents.
Prepared by: Mike Oliver, December 2017