Minutes - Board - 2013-11-21COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
NOVEMBER 21, 2013
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
November 21, 2013 at 5:30 p.m. at 628 W.
19th Street, Costa Mesa.
PLEDGE OF President Ferryman led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION Vice President Scheafer led the Invocation.
ROLL CALL DIRECTORS PRESENT: James Ferryman, Mike Scheafer, Robert
Ooten, Art Perry, Arlene Schafer
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Anna
Sanchez, Administrative Service Manager;
Robin B. Hamers, District Engineer; Alan
Burns, District Counsel; Javier Ochiqui,
Management Analyst; Marc Davis, District
Treasurer /Interim Finance Manager; Noelani
Middenway, Deputy Clerk of the District
OTHERS PRESENT: Dean Ruff ridge, CR &R; Lawrence Jones,
CR &R; Mike Silva, CR &R; Bradley Zint,
Daily Pilot
CEREMONIAL MATTERS AND PRESENTATIONS — President Ferryman noted that a
proclamation would be presented to Mr. James Wahner in honor of his 20 years of
service on the Santa Ana River Flood Protection Agency (SARFPA).
Director Schafer moved to adopt Resolution No. 2013 -846 in honor of Mr. Wahner. Vice
President Scheafer seconded the motion. The motion carried 5 -0.
ANNOUNCEMENT OF LATE COMMUNICATIONS — None
PUBLIC COMMENTS - None
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD NOVEMBER 21, 2013
I. CONSENT CALENDAR
1. Board of Directors Special The Board of Directors Special Meeting
Meeting Minutes of October Minutes of October 1, 2013 were
1, 2013 approved and filed.
2. Board of Directors Closed The Board of Directors Closed Session
Session Minutes of October Minutes of October 9, 2013 were
9, 2013 approved and filed.
3. Board of Directors Special The Board of Directors Special Meeting
Meeting Minutes of October Minutes of October 9, 2013 were
9, 2013 approved and filed.
4. Board of Directors Study Board of Directors Study Session
Session Meeting Minutes of Meeting Minutes of October 15, 2013
October 15, 2013 were approved and filed.
5. Board of Directors
Regular
The Board of Directors
Regular
Meeting Minutes of
October
Meeting Minutes of October
24, 2013
24,
2013
were approved and filed.
6. Board of Directors Special The Board of Directors Special Meeting
Meeting Minutes of October Minutes of October 29, 2013 were
29, 2013 approved and filed.
7. Occupancy Report and The Board of Directors approved the
payment to Costa Mesa occupancy report and payment to Costa
Disposal Mesa Disposal for the month of October
2013.
8. Contract Payment to CR The Board of Directors approved the
Transfer for Recycling & Contract Payment to CR Transfer for
Disposal Services Recycling & Disposal Services for the
month of October 2013.
9. Adoption of a Warrant The Board of Directors adopted Warrant
Resolution No. CMSD 2013- Resolution No. CMSD 2013 -5 approving
5 Approving District Warrant District warrants for the month of October
Registers 2013 in the amount of $618,174.94.
COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD NOVEMBER 21, 2013
10. Directors' Compensation and
Reimbursement of Expenses
11. Investment Report
12. Refund of Sewer
Assessment No Service
PAGE 3
The Board of Directors approved
Directors' compensation and
reimbursement of expenses for the
month of October 2013.
The Board of Directors approved the
Investment Report for the month of October
2013.
Item pulled for separate discussion and
consideration.
Director Ooten moved for approval of the Consent Calendar except for the item 12 that
was pulled for a separate vote. Vice President Scheafer seconded the motion, which
carried 5 -0.
Discussion followed regarding Item No. 12 and it was noted that there is no limit to a
refund amount for the item to be placed on the Consent Calendar.
Director Perry moved for approval of the item. Vice President Scheafer seconded the
motion, which carried 5 -0.
END OF CONSENT CALENDAR
PUBLIC HEARINGS - None
GENERAL MANAGER/DISTRICT CLERK REPORTS
14. Alternate District Engineer
Recommendation: That the Board of Directors give staff direction on requiring
Bruce Mattern, Alternate District Engineer, to carry errors & omissions insurance.
General Manager Carroll advised the Board of Directors that Mr. Bruce Mattern who
serves as the Alternate District Engineer does not carry errors & omissions (E &O)
insurance and requested direction from the Board as to whether or not Mr. Mattern
should carry E &O insurance.
Vice President Scheafer noted his opposition of waiving the requirement for Mr. Mattern
to carry E &O insurance and expressed concern regarding Mr. Mattern continuing his
service as Alternate District Engineer if he did not possess E &O insurance.
Members of the Board agreed as to the importance of the matter.
Discussion followed regarding the steps necessary to hire an alternate District Engineer.
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General Manager Carroll noted that the Special District Risk Management Association
recommended that Mr. Mattern carry E &O insurance.
Director Ooten moved to continue the item and to retain Mr. Mattern's services until staff
provides additional information. Director Schafer seconded the motion.
Director Ooten clarified that he would like staff to provide the Board of Directors with a
list of alternate engineers for their consideration.
The motion carried 5 -0.
15. CR &R Environmental Services 2nd Amendment to Exclusive Franchise
Agreement — Recommendations from Performance Audit and Organic Recycling
Program
Recommendation: That the Board of Directors approves the 2nd Amendment.
General Manager Carroll provided a presentation on the proposed Organics Recycling
program.
Mr. Dean Ruffridge of CR &R indicated that CR &R is in the sixth year of the evergreen
contract, discussed the two -pass method, and noted that the organics program is the
only way to achieve a 75% waste diversion rate.
Mr. Mike Silva of CR &R provided an update on the construction of the CR &R facility in
Perris, CA, discussed how the anaerobic digestive (AD) program works, and provided a
description of the renderings of the AD facility.
Discussion followed regarding the need to complete a CEQA review prior to approval of
the amendment to the agreement.
District Counsel Burns stated that the District is not able to pre- commit ahead of the
CEQA legal review.
Discussion followed.
District Counsel Burns noted that the CEQA process does not dictate whether the Board
of Directors should approve or deny a project, however, it requires that the Board of
Directors thought about the environmental impact.
Discussion followed.
Vice President Scheafer moved to approve conducting a CEQA review. Director Ooten
seconded the motion, which carried 5 -0.
Vice President Scheafer moved to approve directing staff to conduct a community
outreach meeting in an evening timeframe within 30 days or before the CEQA review.
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Director Schafer seconded the motion, which carried 5 -0.
16. Finance Manager
Recommendation: That the Board of Directors give staff direction for filling the
Finance Manager vacant position.
District Counsel Burns noted that District Treasurer Davis requested to recuse himself
from the meeting as the discussion item would consider the possible hiring of his wife,
Ms. Wendy Davis, through Mr. Davis's company CBIZ MHM, LLC.
Mr. Davis exited the meeting at 6:46 p.m.
President Ferryman recessed the meeting at 6:47 p.m.
President Ferryman reconvened the meeting at 6:51 p.m.
General Manager Carroll noted that the position of Finance Manager is vacant, provided
options of methods to fill the vacancy, and discussed the possibility of hiring Ms. Wendy
Davis as the interim Finance Manager through CBIZ MHM, LLC.
Director Perry questioned if there was a legal requirement to revisit the candidate
eligibility list.
General Manager Carroll confirmed that it was not a legal requirement.
Counsel Burns reaffirmed there is no conflict of interest if Ms. Davis is the Interim
Finance Director as an employee of CBIZ. However, before the District considers
offering the position to Ms. Davis on a permanent basis the District should obtain an
opinion from the California Fair Political Practices Commission (FPPC) to determine if a
conflict of interest exists. Staff will request an opinion from FPPC in January 2014.
Discussion followed.
Vice President Scheafer moved to approve the hiring of Ms. Wendy Davis to serve as
Interim Finance Manager. Director Schafer seconded the motion, which carried 5 -0.
Mr. Davis re- entered the meeting at 6:59 p.m.
ENGINEERS REPORTS
17. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer Robin B. Hamers introduced the report and offered to respond to
questions.
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Director Ooten requested that the bid results be included in future updates.
The Board of Directors received and filed the report.
18. Proiect #196 -D Irvine Pumping Station Generator — Proposed Agreement with
Pacific Data Electric for Construction Design Services
Recommendation: That the Board of Directors approves the following:
1. Sole sourcing construction design services for Project #196 -D because
alternative procedures are in the best interest of the District in accordance
with Operations Code Section 4.04.120(f); and
2. The agreement with Pacific Data Electric (PDE) for performing construction
design services for Project #196 -D.
District Engineer Hamers presented details of the report, provided an update on the
Irvine Pumping Station Generator, and discussed sole source findings based on
familiarity with the project.
Brief discussion followed regarding the cost of the easement and appraisal.
Director Ooten moved to approve part one of the recommendation. Director Perry
seconded the motion, which carried 5 -0.
Director Ooten moved to approve part two of the recommendation. Director Perry
seconded the motion, which carried 5 -0.
TREASURERS REPORT - None
ATTORNEYS REPORT - None
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (President Ferryman)
Recommendation: That the Board of Directors accepts oral report.
President Ferryman reported attending the recent meeting and that Vice President
John Anderson is resigning from his position on the Board of Directors as he has
accepted a new position. Additionally, President Ferryman noted that Mayor Keith
Curry of the City of Newport Beach was appointed to the Steering Committee,
OCSD has settled with SAWPA (Santa Ana Watershed Project Authority after
nearly 13 years, and that OCSD is going to impasse with union negotiations.
The Board of Directors accepted the oral report.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Secretary
Perry)
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Recommendation: That the Board of Directors accepts oral report.
President Ferryman reported that Mr. Jim Wahner was honored for his years of
service and discussed budget concerns.
C. Independent Special Districts of Orange County ( ISDOC) — (Vice
President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
Vice President Scheafer reported that ISDOC met on November 15, 2013, and
noted that he acted as Chair because the President and Vice President were
absent at that meeting. Vice President Scheafer indicated that Mr. Jim Fisler
announced a vacancy on the LAFCO Board.
District Counsel Burns noted that Ms. Cheryl Brothers won the November 14, 2013
election.
Additionally, Vice President Scheafer discussed his attendance of the OCCOG
(Orange County Council of Governments) meeting and that he had provided his
vote on behalf of the District approving the ISDOC Bylaws.
The Board of Directors accepted the oral report.
D. California Special Districts Association (CSDA)
Recommendation: That the Board of Directors accepts oral report.
Vice President Scheafer reported that he was reappointed to the CSDA Education
Committee and Leadership Committee and discussed his attendance of the Napa
Leadership Conference. Vice President Scheafer encouraged the other Board
members who attended the Napa conference to complete the conference survey.
The Board of Directors accepted the oral report.
E. California Association of Sanitation Agencies (CASA)
Recommendation: That the Board of Directors accepts oral report.
No report was provided as CASA has not met recently.
F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
Recommendation: That the Board of Directors accepts oral report.
Director Ooten reported attending the WACO (Water Advisory Committee of Orange
County) meeting.
Director Schafer reported attending the CMSD special meeting, Chamber of Commerce
Legislation, WACO, CMSD closed session, study session and update with the General
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Manager. Additionally, Director Schafer noted that the adopted Warrant Resolution
noted her reimbursement of her luggage delivery.
Director Perry commented on his attendance of the Napa Leadership Conference.
The Board of Directors accepted the oral reports.
OLD BUSINESS - None
NEW BUSINESS - None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Director Schafer provided a reminder of the District's holiday party to be held on
December 12, 2013 at 5:00 p.m.
Director Perry questioned if a Chamber breakfast would be held in January as he would
like to distribute information regarding the organic recycling program.
ADJOURNMENT
There being no further business to come before the Board, President Ferryman
adjourned the meeting at 7:29 p.m. to the next regular meeting of the Costa Mesa
Sanitary District Board of Directors on December 19, 2013 at 5:30 p.m. in the District's
Board Room, 628 W. 19th Street.
Art Perry Jarnes Ferryman
Secretary President