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Minutes - Board - 2013-11-08CALL TO ORDER ROLL CALL PUBLIC COMMENT COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING NOVEMBER 8, 2013 The Board of Directors of the Costa Mesa Sanitary District met in special session on November 8, 2013 at 8:30A.M. at 628 W. 19th Street, Costa Mesa. DIRECTORS PRESENT: James Ferryman, Robert Ooten, Art Perry, Arlene Schafer, Mike Scheafer DIRECTORS ABSENT: None STAFF PRESENT: Scott Carroll, General Manager; Alan Burns, District Counsel; Noelani Middenway, Deputy Clerk of the District; OTHERS PRESENT: Jim Mosher, Resident President Ferryman invited members of the public to address the Board. Mr. Jim Mosher commented regarding the distinction between the Treasurer and Finance Manager and noted a potential typographical error in the Health and Safety Code section listed in the District's Operations Code. President Ferryman responded to Mr. Mosher's comment and noted that the Treasurer is in charge of investments and that the Finance Manager oversees the District's budget. Seeing no one further, President Ferryman closed public comments. Finance Manager Position — Oral Report Recommendation: That the Board of Directors receive an oral report from the General Manager and provide direction. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD NOVEMBER 8, 2013 General Manager Carroll announced the resignation of Ms. Stacey Cuevas from the position of Finance Manager and presented an interim plan of the Finance Department's operations. Mr. Carroll indicated that he met with Mr. Marc Davis, District Treasurer, Ms. Jacque Rogers, Senior Consultant with CBIZ MHM, LLC, and Ms. Kaitlin Tran, Associate Accountant, and noted that Ms. Rogers would work at the District two days a week and Mr. Davis would work one half day per week. Mr. Carroll provided recruitment options including the hiring of a recruitment firm, as well as the possibility of hiring Ms. Wendy Davis, a former District employee and Mr. Davis's spouse, as a CBIZ MHM, LLC employee, on an interim basis with the opportunity to be hired on as a full -time employee. Mr. Carroll addressed the concern of a possible conflict of interest of Mr. Davis acting as the District Treasurer and Ms. Davis as the Finance Manager and noted that Mr. Davis indicated that he would resign as District Treasurer in the event that a conflict of interest did exist and that Ms. Davis was hired on as a permanent full -time District employee. Mr. Carroll concurred that Mr. Davis should resign as Treasurer if a conflict of interest did exist. Mr. Carroll noted that Ms. Davis would also be able to serve as the District Treasurer as she had formerly served in that capacity. Director Perry questioned if the District is obligated in any way to the successful candidates who had previously applied and interviewed for the Finance Manager position. General Manager Carroll indicated that the District was not obligated. Director Perry questioned if there were a possibility to consider the individuals on the eligibility list and expressed favor of not spending additional funds on another recruitment if qualified candidates were still available. Director Schafer noted that it was common practice to use the next qualified candidate from the eligibility list within a short timeframe and noted that Mr. Davis and Ms. Davis previously worked together for the District for a number of years and that no conflict of interest existed. Ms. Anna Sanchez entered the meeting at 8:36 a.m. Discussion followed. President Ferryman expressed concern that a conflict did exist and deferred to District Counsel Burns for his opinion. Mr. Burns commented that neither Mr. Davis nor Ms. Davis should supervise the other. General Manager Carroll noted that Mr. Davis is part owner of CBIZ MHM, LLC and requested clarification as to whether there would be a conflict if Ms. Davis was hired in the interim as a CBIZ employee. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD NOVEMBER 8, 2013 Mr. Burns indicated that it would not be a conflict if Ms. Davis were hired as a CBIZ employee as she would not be a District employee. Mr. Burns also stated that Mr. Davis could not recommend Ms. Davis for the position as it would be a conflict for Mr. Davis. General Manager Carroll noted that there would not be any supervisory issues as Ms. Davis would report directly to Mr. Carroll and Mr. Davis would report directly to the Board of Directors. Discussion followed. Director Ooten questioned if Ms. Davis met the criteria to fit the Finance Manager position. Mr. Carroll noted that Ms. Davis had both accounting and management skills and did fit the criteria. Mr. Carroll indicated that he would work with District Counsel to amend the CBIZ contract as it currently pertains to only Treasurer type duties and bring the amendment to the Board on November 21. 2013. Discussion followed. Director Perry expressed favor of moving forward with recruiting Ms. Davis and questioned what her proposed rate of pay would be. Mr. Carroll indicated that Ms. Davis would be paid at the Senior Consultant rate of what he believes is $75.00 /hour, but that rate could change after reviewing the rate in CBIZ contract. Mr. Carroll noted that Ms. Davis has the opportunity to work up to 40 hours per week. Discussion followed. The Board of Directors directed Mr. Carroll to move forward with amending the CBIZ agreement and to place the review of the amendment on November 21, 2013 agenda. There were no additional questions or comments. Personnel Committee Discussion regarding creating a Personnel Committee. General Manager Carroll noted that he did not have anything to present on the item and deferred to District Counsel Burns for report details. President Ferryman invited Mr. Mosher to provide public comment on the item. Mr. Mosher provided comments regarding the difference between policy and administration and noted that Personnel is an administrative matter. Mr. Mosher COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD NOVEMBER 8, 2013 suggested that the full Board, and not a committee of two, would be the appropriate structure should the Board of Directors want to be involved in personnel matters and discussed decision authority. Director Schafer expressed favor in postponing discussions regarding this item until the conclusion of staff interviews to be conducted by Mr. Brent Ives of BHI Management Consulting as the results may change the direction of Personnel Committee. Director Perry concurred with Director Schafer and deferred to District Counsel Burns for his opinion. Mr. Burns concurred and felt that the Board would be better informed after receiving the report from Mr. Ives. General Manager Carroll noted that four members of the Board would be attending a Leadership Conference in Napa, CA that would provide a workshop on the Board's role in Human Resources and felt that would be helpful. President Ferryman expressed the importance of the Board of Directors role to focus on policy and not cross over the management line unless there is an extreme circumstance that requires the Board to hear an employee's complaint. Director Perry questioned when the report from Mr. Ives would be available. Mr. Burns indicated that the results should be available by mid - December or the beginning of the New Year. President Ferryman continued the item to a future meeting. ADJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 8:53 a.m. _1 ^ v' Art Perry imes Ferryman Secretary ident