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Minutes - Board - 2014-02-25COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 25, 2014 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on February 25, 2014 at 5:30P.M. at 966 Sonora Road, 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, Robert Ooten, Art Perry, Arlene Schafer. Mike Scheafer DIRECTORS ABSENT: None STAFF PRESENT: Scott Carroll, General Manager; Alan Burns, District Counsel; Robin Hamers, District Engineer; Anna Sanchez, Administrative Services Manager; Noelani Middenway, District Clerk; Marc Davis, District Treasurer; Wendy Davis, Interim Finance Manager OTHERS PRESENT: Dean Ruffridge, CR &R; Mike Silva, CR &R; Members of the public CEREMONIAL MATTERS AND PRESENTATIONS - None ANNOUNCEMENT OF LATE COMMUNICATIONS President Ferryman announced that Mr. Dave Brooks is retiring from the Newport-Mesa Unified School District Board of Education and expressed the desire to provide Mr. Brooks with a proclamation in appreciation of his years of service. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 District Counsel indicated that the Board would need to make a finding by a two- thirds vote that the need to take action arose after the agenda was prepared and that there is a need to take immediate action. President Ferryman noted that Mr. Brooks' retirement ceremony is scheduled for March 11, 2014 and if the Board did not take action at this meeting the proclamation would not be prepared in time. President Ferryman requested a motion to consider the non - agenda item. Director Schafer moved for approval. Vice President Scheafer seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None President Ferryman requested a motion to adopt a proclamation honoring Mr. Brooks for his 16 years of service on the Newport-Mesa Unified School District Board of Education. Director Perry moved for approval. Vice President Scheafer seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None PUBLIC COMMENTS - President Ferryman invited members of the public to address the Board. Seeing no one, President Ferryman closed public comments. CONSENT CALENDAR 1. Board of Directors Special Meeting The Board of Directors Special Meeting Minutes of January 6, 2014 Minutes of January 6, 2014, was approved as presented. 2. Board of Directors Study Session The Board of Directors Study Session Meeting Minutes of January 14, Meeting Minutes of January 14, 2014, was 2014 approved as presented. 3. Board of Directors Regular Meeting The Board of Directors Regular Meeting COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 Minutes of January 23, 2014 Minutes of January 23, 2014, was approved as presented. 4. Occupancy report and payment to The Board of Directors approved the Costa Mesa Disposal occupancy report and payment to Costa Mesa Disposal for the month of January 2014. 5. Contract Payment to CR Transfer The Board of Directors approved payment for Recycling and Disposal Services to CR Transfer for recycling and disposal services for the month of January 2014. 6. Adoption of a Warrant Resolution The Board of Directors approved adoption No. CMSD 2014 -8 Approving of Warrant Resolution No. CMSD 2014 -8 District Warrant Registers Approving District Warrant Registers for the month of January 2014 in the amount of $623,760.76. 7. Directors' Compensation and The Board of Directors approved Directors' Reimbursement of Expenses compensation and reimbursement of expenses for the month of January 2014. 8. Investment Report for the Month of The Board of Directors approved the January 2014 Investment Report for the month of January 2014. 9. Annual Health Benefit Broker Fees The Board of Directors received and filed and Commission Disclosure the Annual Health Benefit Broker Fees and Commission Disclosure as presented. END OF CONSENT CALENDAR Director Schafer moved for approval of the Consent Calendar. Director Perry seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None PUBLIC HEARINGS — None COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 GENERAL MANAGER'S REPORTS President Ferryman moved Item No. 14 to this point in the agenda. 14. Costa Mesa Sanitary District 70th Anniversary — Oral Report Recommendation: That the Board of Directors receive and file the report. General Manager Carroll reported on the District's 70th Anniversary, provided background of the purpose that the District was created, announced scheduled anniversary activities, and thanked Director Schafer, Director Perry, and District staff members Javier Ochiqui, Elizabeth Pham, and Dyana Wick for their participation on the District's 70th Anniversary Committee. There were no additional questions or comments and the report was received and filed. 10. Environmental Review — Organics Recycling Program Recommendation: That the Board of Directors identifies the Organics Recycling Program as a "project," and determines that said project is categorically exempt from further CEQA review pursuant to CEQA Guidelines Section 15038. General Manager Carroll indicated that, in response to questions from the public received at the January Board meeting, an in depth review of the organics recycling program addressing the issues of noise, additional vehicles on the streets, traffic, and air quality, had been provided to the Board for review. Mr. Carroll reiterated that the purpose of CEQA review is to determine significant impacts to the environment and noted that the organics recycling program will not have significant impacts on the environment. Mr. Carroll recommended that the Board approve staff's recommendation and clarified that the CEQA guidelines code is 15308, not 15038 as cited in the staff report District Counsel Burns clarified for the record that the exemption allows for an ordinance that implements an environmental program. Director Ooten moved approval of the item. Director Schafer seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None District Counsel Burns noted that filing of a Notice of Exemption would be in conjunction with the Ordinance if the agreement is approved. There were no questions or comments and the report was received. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 11. CR &R Environmental Services 2n0 Amendment to Exclusive Franchise Aareement — Recommendations from Performance Audit and Organics Recycling Program Recommendation: That the Board of Directors considers approving the 2nd Amendment to the exclusive franchise agreement with CR &R Environmental Services. General Manager Carroll provided details of the public outreach, number of meetings held to discuss the organics recycling program, and clarified that the cost of a Compressed Natural Gas (CNG) truck was incorrectly stated in a previous report and was intended to read $250,000, not $250,000,000. Mr. Carroll requested that the Board approve staff's recommendation and noted that approval of the agreement will also amend the District's Operations Code. Discussion followed regarding the exemption process. President Ferryman expressed support of approving the agreement. Director Ooten expressed support of approving the agreement, suggested beginning the program in January 2015, and encouraged staff to continue public outreach to educate the public on the organics recycling program. Director Schafer thanked CR &R staff for their efforts and expressed support of approving the agreement. Vice President Scheafer thanked CR &R and staff for their time in organizing the Town Hall meetings and clarified that the public is not forced to participate in the program. General Manager Carroll clarified that exemptions for participation in the program do apply, but residents must meet the criteria before an exemption is approved. Mr. Carroll also indicated that all residents will receive an organics cart, but there is no penalty for food waste being placed into the mixed waste cart. Discussion followed. President Ferryman invited members of the public to address the Board. Three members of the public verbally commented about the organics recycling program. Discussion followed regarding the roll out of the program, resident's responsibility to notify the District of scavengers, and the public notification process informing residents of the implantation of the program. There were no additional questions or comments. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 Director Perry moved approval of the item. Vice President Scheafer seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None In response to Vice President Scheafer's question, General Manager Carroll indicated that an ordinance amending the Operations code to reflect the organics recycling program will be presented to the Board for approval at the March 27, 2014 Board meeting and an implementation plan will be presented to the Board at a future study session meeting. There were no additional questions or comments. 12. Mid -Year Budget Update — FY 2013 -14 Recommendation: That the Board of Directors receive and file the report. Ms. Wendy Davis provided report details of the mid -year budget report summarizing the expenses of the first six months of the year and indicated that the District is on target to have a balanced budget by the end of the year or have a slight surplus. Director Ooten requested that a Capital Improvement Project budget be created separate from the liquid waste and solid waste budgets. Ms. Davis indicated that she will include that information in the next quarterly report. There were no additional questions or comments. 13. Rewarding Ideas Program Recommendation: That the Board of Directors approve awarding Ms. Dyana Wick $100 for her rewarding ideas submission. General Manager Carroll discussed the rewarding ideas submission of Ms. Dyana Wick that encourages longevity with the District by recognizing staff annually on their employment anniversary. Director Ooten moved approval of the item. Director Perry seconded the motion. Discussion followed regarding the budgeted amount of $10,000 for the rewarding ideas program and the cost of the items to be given to staff on their anniversaries. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 There were no additional questions or comments. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None ENGINEER'S REPORTS 15. Project Status Report Recommendation: That the Board of Directors receive and file the report. Director Ooten requested that the bid amounts be included in the CIP reports. There were no additional questions or comments and the report was received. 16. Project #204 - Sewer Manhole Cover Repairs Recommendation: That the Board of Directors approves appropriating $100,000 from the Asset Management Fund to complete manhole cover repairs. District Engineer Hamers provided an update of the manhole inspection project, noted that half of the District's 4,700 manholes had been inspected and approximately 100 manholes were identified as needing immediate repair. Mr. Hamers requested that the Board approve staff's recommendation in order for staff to take action and proceed with repairs. Director Ooten requested to be involved in the design phase. Director Schafer moved to approve the item. Vice President Scheafer seconded the motion. Discussion followed regarding thorough inspection of each manhole and review of the asset management program. There were no additional questions or comments. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None TREASURER'S REPORTS - None COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 ATTORNEY'S REPORTS - None LOCAL MEETINGS A. Orange County Sanitation District (OCSD) — (President Ferryman) Recommendation: That the Board of Directors accepts oral report. President Ferryman reported that the OCSD Board will meet on February 26, noted that OCSD is celebrating their 60th anniversary, reported the hiring of a contractor to negotiate with employee union representatives, and noted that the Groundwater Replenishment program was honored with the Water Prize by the US Water Alliance. Director Ooten commented on the local sewer transfer program and discussed the detail of OCSD's budget schedule and reserve summary. B. Santa Ana River Flood Protection Agency (SARFPA) — (Secretary Perry) Recommendation: That the Board of Directors accepts oral report. Nothing to report. C. Independent Special Districts of Orange County ( ISDOC) — (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. Vice President Scheafer reported on his attendance of the ISDOC Executive Committee that discussed ISDOC continuing its membership in the Orange County Council of Governments (OCCOG), and noted that a survey regarding the quarterly meetings will be circulated. D. California Special Districts Association (CSDA) - (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. Nothing to report. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors accepts oral report. Nothing to report. 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. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 25, 2014 Vice President Scheafer noted that he attended his first meeting as a Board member of the Special District's Risk Management Authority (SDRMA), indicated that rates for property and casualty will remain neutral and projected an increase in workers compensation rates, and noted his attendance of the claims education day in Sacramento. Director Schafer reported on her attendance of CMSD, ISDOC, and CSDA meetings. Vice President Scheafer reported on his attendance of the WACO meeting. Director Perry reported that he attended the WACO meeting and felt it was very educational. Director Ooten reported on his attendance of the Santa Ana River Basin Section (SARBS) meeting. There were no additional questions or comments. OLD BUSINESS — None NEw BUSINESS — None ORAL COMMUNICATIONS AND DIRECTOR COMMENTS — None ADJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 6:35 P.M. Art Perry Secretary LIM*, J44es Ferryman PrWsident