02 - Minutes Regular Board Meeting 2014-05-22
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MAY 22, 2014
______________________________________________________________________
CALL TO ORDER
The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
May 22, 2014 at 5:30P.M. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF
ALLEGIANCE
INVOCATION
ROLL CALL
DIRECTORS PRESENT:
DIRECTORS ABSENT:
Director Ooten led the Pledge of Allegiance.
Vice President Scheafer led the Invocation.
Robert Ooten, Art Perry, Arlene Schafer,
Mike Scheafer
James Ferryman
STAFF PRESENT: Scott Carroll, General Manager; Alan Burns,
District Counsel; Robin Hamers, District
Engineer; Anna Sanchez, Administrative
Services Manager; Wendy Davis, Interim
Finance Manager; Javier Ochiqui,
Management Analyst
OTHERS PRESENT:
Lawrence Jones, CR&R; Bill Nelson, Orange
County Cemetery District Board of Trustees
Chairman and California Special Districts
Association Board of Directors (Region 6)
CEREMONIAL MATTERS AND PRESENTATIONS – General Manager Carroll introduced Bill
Nelson, Orange County Cemetery District Board of Trustees Chairman and California
Special Districts Association Board of Director (Region 6), who presented the Gold
Recognition Certificate for Good Governance from the Special District Leadership
Foundation and noted that CMSD is the second special district in the state to have ever
received this award.
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
ANNOUNCEMENT OF LATE COMMUNICATIONS – None
PUBLIC COMMENTS – Vice President Scheafer invited members of the public to address
the Board.
Seeing no one, Vice President Scheafer closed public comments.
CONSENT CALENDAR
1. Board of Directors Study Session
Meeting Minutes of April 15, 2014
2. Board of Directors Regular Meeting
Minutes of April 24, 2014
3. Occupancy report and payment to
Costa Mesa Disposal
4. Contract Payment to CR Transfer
for Recycling and Disposal Services
5. Adoption of a Warrant Resolution
No. CMSD 2014-11 Approving
District Warrant Registers
6. Directors’ Compensation and
Reimbursement of Expenses
7. Resolution No. 2014-847 –
Publication of Ordinance No. 100
8. Resolution No. 2014-849 –
Authorizing the Disposition of
District Assets
The Board of Directors Study Session
Meeting Minutes of April 15, 2014, was
approved as presented.
The Board of Directors Regular Meeting
Minutes of April 24, 2014, was approved
as presented.
The Board of Directors approved the
occupancy report and payment to Costa
Mesa Disposal for the month of April 2014.
The Board of Directors approved payment
to CR Transfer for recycling and disposal
services for the month of April 2014.
The Board of Directors approved adoption
of Warrant Resolution No. CMSD 2014-11
Approving District Warrant Registers for
the month of April 2014 in the amount of
$864,946.71.
The Board of Directors approved Directors'
compensation and reimbursement of
expenses for the month of April 2014.
The Board of Directors adopted Resolution
No. 2014-847 ordering that publication of
Ordinance No. 100 amending the District’s
Operations Code pertaining to trash
regulations has occurred.
The Board of Directors approved
Resolution No. 2014-849 as presented.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
END OF CONSENT CALENDAR
Director Perry moved to approve the consent calendar. Director Schafer seconded the
motion.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
PUBLIC HEARINGS – None
GENERAL MANAGER’S REPORTS
9. Resolution No. 2014-850 – Designating the Enforcement Official under the
District’s Administrative Citations Chapter of the Operations Code
Recommendation: That the Board of Directors adopts Resolution No. 2014 -
850 designating the enforcement official under the District’s Administrative
Citations Chapter of the Operations Code.
Scott Carroll, General Manager, introduced the item and noted that the proposed
resolution will enable the contract code enforcement officer to write citations and
allow the General Manager to appoint another staff person to write citations, and
discussed the current recruitment of the code enforcement officer position.
Discussion followed.
Director Schafer moved to approve the item. Director Perry seconded the motion.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
10. Board of Directors Health Insurance
Recommendation: That the Board of Directors decides on one of the
following:
1. Direct staff to file a termination resolution for non-CalPERS
members to be filed in July 2014 that will take effect in January of
2015; or
2. Direct staff to do nothing whereby the District will maintain a hea lth
insurance plan for non- CalPERS members.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
General Manager Carroll provided background on the District’s health insurance
plan and noted that no board members currently participate in the health insurance
plan.
Director Perry expressed support of terminating the health insurance plan for non-
CalPERS members.
Mr. Carroll noted that if the District chooses to terminate the health insurance plan,
the District cannot reenroll in the plan for the next five years.
Director Perry withdrew his statement and expressed support of keeping the plan in
case future board members might need the coverage.
Director Ooten made a motion to terminate the Board of Directors health insurance
plan. Director Schafer seconded the motion.
Discussion followed.
MOTION FAILED BY THE FOLLOWING VOTE:
Ayes: Ooten, Schafer
Noes: Perry, Scheafer
Absent: Ferryman
The Board of Directors directed staff to bring the item back to the June 22, 2014
Board meeting.
11. Sewer Lateral Assistance Program (SLAP)
Recommendation: That the Board of Directors selects and approves the
options shown below for the SLAP program for the fiscal year beginning July
1, 2014:
1. Change the amount of reimbursement by selecting one of the
reimbursement options presented in the Analysis section.
2. Reaffirm the requirement for participation of one application once every
five years up to the approved reimbursement amount at the time of
application.
3. Direct staff not to accept any SLAP applications once the $200,000
of SLAP funding is expended for the 2014-2015 fiscal year.
Wendy Davis, Interim Finance Manager, provided a report and requested the Board
to approve staff’s recommendation.
Discussion followed.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
Director Ooten moved to approve the change of the reimbursement amount from
$1,600 to $1,250, waive $240 in fees, and approve staffs’ recommendation. Director
Perry seconded the motion.
Director Ooten requested that staff provide the Board with an update of the SLAP
status on a quarterly basis.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
ENGINEER’S REPORTS
12.Project Status Report
Recommendation: That the Board of Directors receive and file the report.
Robin Hamers, District Engineer, indicated that the third phase of grade five repairs
has been completed and that phase 1 of grade four repairs will begin July 1, 2014.
There were no additional questions or comments and the report was received.
13.Anaheim Avenue Sewer Re-Direction Project
Recommendation: That the Board of Directors approves appropriating $30,000 from
the Asset Management Fund Retained Earnings to relocate the sewer mainline on
Anaheim Avenue that will allow the City of Costa Mesa to complete their storm drain
improvements.
Director Ooten moved approval of the item. Director Perry seconded the motion.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
TREASURER’S REPORTS
14.Investment Report for the Month of April 2014
Recommendation: That the Board of Directors approves the Investment Report
for the month of April 2014.
Marc Davis, District Treasurer, provided a quarterly review of the investment report.
Director Schafer moved to approve the item. Director Perry seconded the motion.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
15.White Nelson Diehl Evans, LLP - Exercise Option Year Two of Agreement
for Audit Services
Recommendation: That the Board of Directors approves the second option year of the
audit services agreement with White Nelson Diehl Evans, LLP to perform the District’s
annual audit for the year ending June 30, 2014 in the amount of $9,52 5.
Mr. Davis noted that White Nelson Diehl Evans, LLP has provided financial audit
services for the past nine years and recommended that the Board approve the
recommendation.
Director Schafer moved approval of the item. Director Perry seconded the motion.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
ATTORNEY’S REPORTS
Alan Burns, District Counsel, informed the Board that the Supreme Court recognized
that invocations may be appropriate in an appropriate setting.
Discussion followed.
There were no additional questions or comments.
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) – (Assistant Secretary Ooten)
Recommendation: That the Board of Directors accepts oral report.
Director Ooten reported on his attendance of the Administrative Committee meeting
and noted that OCSD is celebrating its 60th anniversary.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
B. Santa Ana River Flood Protection Agency (SARFPA) – (Secretary Perry)
Recommendation: That the Board of Directors accepts oral report.
Director Perry reported on his attendance of the SARF PA meeting and discussed
the approval of an agreement with James O’Conner.
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 meeting, noted that Mr. Bill Nelson announced that the CMSD would be
receiving the Gold Recognition Certificate for Good Governance from the Special
District Leadership Foundation, and indicated that CSDA has grouped its districts
into regions.
Vice President Scheafer indicated that ISDOC will be releasing a quarterly e -
newsletter and encouraged staff to subm it an entry to be the first district featured.
D. California Special Districts Association (CSDA) - (Vice President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
Vice President Scheafer reported on his attendance of CSDA Legislative Days in
Sacramento.
General Manager Carroll provided details of the meetings he and members of the
Board had with Assemblyman Mansoor’s staff where they discussed bills that the
District supported.
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.
Director Schafer reported on her attendance of ISDOC, WACO, CMSD study session
and board meeting, and check presentations for the battery recycling program.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
OLD BUSINESS
16. OC Local Agency Formation Commission (LAFCO) Elections
Recommendation: That the Board of Directors support one of the two
candidates running for the alternate seat on LAFCO and direct President
Ferryman to vote on behalf of the District.
Vice President Scheafer noted that the item is to authorize President Ferryman to vo te
on behalf of the Board for the LAFCO election.
Director Ooten made a motion to nominate Jim Fisler for the alternate seat on LAFCO.
Vice President Scheafer seconded the motion.
Discussion followed.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
Director Perry made a motion to nominate Vice President Scheafer to be the alternate
voting party. Director Ooten seconded the motion.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Scheafer, Perry, Ooten, Schafer
Noes: None
Absent: Ferryman
NEW BUSINESS
17. Digital Advertising in Costa Mesa Libraries – Oral Report
Recommendation: That the Board of Directors considers making a donation to
the Costa Mesa Friends of the Library for the purchase flat screen lobby displays
where District programs and services can be displayed to the public.
Director Ooten discussed digital advertising at the Costa Mesa libraries.
Discussion followed.
Members of the Board expressed support of purchasing flat screen lobby displays and
requested Director Ooten to bring back costs for discussion and consideration.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 22, 2014
______________________________________________________________________
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Director Ooten requested that contact methods to advertise the organics program be
placed on the next study session agenda.
Director Perry requested an update of the battery recycling program.
Director Ooten requested an update of the Household Hazardous Waste (HHW)
program.
Mr. Ochiqui noted that the last two HHW collection events have diverted over 56,000
pounds of HHW from the landfills.
ADJOURNMENT
There being no further business to come before the Board, President Ferryman
adjourned the meeting at 7:05 P.M.
_________________________ _________________________
Art Perry James Ferryman
Secretary President