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Minutes - Board - 2008-03-27• COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on March 27, 2008, at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: President Perry called the meeting to order at 5:30 p.m. Director Monahan led the Pledge of Allegiance. Mr. Fauth gave the invocation. Art Perry, Arlene Schafer, Bob Ooten, James Ferryman, Gary Monahan None. STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Marc Davis, Treasurer; Sherry Kallab, Management Analyst; Karl Dulake, Maintenance Supervisor; Denise Gilbert, Public Outreach Coordinator; Ron Shef, Ordinance Enforcement Officer OTHERS PRESENT: None . ............................... CONSENT CALENDAR . ............................... Ms. Revak requested a revision to the Regular Board Meeting Minutes of February 28, 2008. On page 20, under "Junk Mail Alternatives" the statement "Mr. Worthington provided a copy of an ordinance adopted in Menlo Park to prohibit items from being distributed to doorsteps." should be removed from the Minutes as no ordinance from Menlo Park was distributed. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 2 • Director Ooten pointed out a motion was erroneously attributed to Director Worthington. Ms. Revak stated that has been corrected in the Minutes. Mr. Burns stated he had given an opinion for the City of Fountain Valley regarding an ordinance in San Marino, but could not find one from Menlo Park. Director Schafer motioned to approve the Consent Calendar as corrected. Director Ooten seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Sewer System Committee The Minutes of the Sewer System Committee Meeting — Meeting of January 16, 2008, were approved as January 16, 2008 distributed. Minutes of Sewer System Committee The Minutes of the Sewer System Committee Meeting — Meeting of February 13, 2008, were approved as February 13, 2008 distributed. Minutes of Recycling Committee Meeting — The Minutes of the Recycling Committee Meeting of February 25, 2008 February 25, 2008, were approved as distributed. Minutes of Investment Oversight Committee The Minutes of the Investment Oversight Committee Meeting — Meeting of February 28, 2008, were approved as February 28, 2008 distributed. Minutes of Regular Meeting — The Minutes of the Regular Meeting of February 28, February 28, 2008 2008, were approved as corrected. Minutes of the Sewer System Committee The Minutes of the Sewer System Committee Meeting Meeting — of March 12, 2008, were approved as distributed. March 12, 2008 • is • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 3 MANAGER'S REPORTS REFUNDS There were no refunds for the month of February 2008. Occupancy Report and The Trash Occupancy Count documented an Payment of $196,236.84 increase of 10 units for the occupancy report for solid to Costa Mesa Disposal — waste collection as of March 1, 2008. Therefore, the March 2008 total for March is 21,434. Monthly Spill Report to State Water Resources Control Board Minutes of Safety /Loss Control Committee Meeting - February 20, 2008 Minutes of Human Resources Meeting - March 5, 2008 ENGINEER'S REPORTS Project Status Report TREASURER'S REPORTS Financial Report as of February 29, 2008 Treasurer's Report as of February 29, 2008 Board directed Staff to prepare a warrant for $196,236.84 for March 2008 collection based "on occupancy report. Said payment in the amount of $196,236.84 to Costa Mesa Disposal to be ratified on the April 2008 warrant register. The Monthly Spill Report to the State Water Resources Board (SWRCB) for February 2008 was accepted as submitted. The Minutes of the Safety /Loss Control Committee Meeting of February 20, 2008, were accepted as submitted. The Minutes of the Human Resources Meeting held March 5, 2008 were accepted as submitted. The Project Status Report dated February 2008 was accepted as submitted. The Financial Report as of February 29, 2008 was accepted as submitted. The Treasurer's Report as of February 29, 2008 was accepted as submitted. • 9 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 4 Warrant 2008 -09 for Warrant Resolution #CMSD 2008 -09 was approved, February 2008 in the authorizing the President and Secretary to sign the amount of $730,635.48 warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $730,635.48. Directors Expenses for the Director Compensation and Expense Month of February 2008 Reimbursements for the Month of February 2008 were approved and ratified as follows: Director Ferryman: $1326 President Perry: $1326 + $146.18 Vice President Schafer: $1,326 + 26.76 Director Ooten: $1105 + 110.45 Director Monahan: $442 .......................... END OF CONSENT CALENDAR ......................... WRITTEN COMMUNICATIONS Ms. Revak presented a letter dated March 23, 2008, from Mr. Kurt Suhr, Principal, Newport Heights Elementary School, thanking the District for the $400 check for the school's participation in the Telephone Book Recycling Program. PUBLIC COMMENTS There were no comments made. MANAGER'S REPORTS DISTRICT YARD -174 W. WILSON STREET - CMSD #187 UPDATE ON DESIGN PHASE Mr. Hamers reported the design phase is progressing smoothly, on schedule, and he feels confident the District will obtain the Gold LEED accreditation level for the District Yard. • Director Schafer inquired whether someone from Edison had contacted the District regarding a discount for services for the Gold LEED building. Mr. Fauth COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 5 • stated he had not been contacted. Director Schafer will provide contact information to Mr. Fauth. Mr. Hamers received an email from Mesa Water offering to assist in designing a water - saving landscape plan for the yard. CMSD STRATEGIC PLAN YEAR 2007/2008 STRATEGIC PLANNING ACTION ITEMS SPECIAL DISTRICT LEADERSHIP FOUNDATION (SDLF) Ms. Revak reported the Board voted to add to the District's Strategic Planning Goals the attainment of the District of Distinction under the Special District Leadership Foundation (SDLF) program. The SDLF is an independent, nonprofit collaborative effort of eight special district organizations formed to promote effective governance and best practices among California's special districts. In order to apply, Board members and the Manager must complete various governance courses and ethics training. Ms. Revak reported all Directors have attended the Governance Foundations class with the exception of Director Monahan. Ms. Revak also provided a list of date options when the required courses will be provided. The ethics training is also available on DVD. Mr. Hamers will need to complete a General Manager Training course which is available on November 13, 2008. Ms. Revak will provide additional dates to Director Monahan for opportunities between April and mid November in which to complete the Governance Foundations class. Director Perry attended his second Ethics class in February 2008. All remaining Directors will need to retake the ethics course before the end of 2008. "ZERO WASTE" Mr. Hamers reported the Costa Mesa Sanitary District is one of only nine Orange County agencies out of 35 that have achieved the state - mandated 50% waste diversion rate every year since the year 2000. The California legislature has been considering increasing the diversion rate to 70% and there are currently technologies available that can recycle 80 -90% of the • waste stream such as ArrowBio of Israel. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 6 The attempt to achieve "Zero Waste" is a concept being adopted by cities such as Irvine and Fullerton and other agencies who are taking a comprehensive approach to recycling and the conservation of natural resources. To reflect and continue the proactive and successful historical approach to recycling, Mr. Hamers recommended the Board of Directors adopt "Zero Waste" as a long -term goal and add it to the District's Strategic Plan. Director Ooten reported the Recycling Committee discussed Zero Waste and reported the Directors in attendance were unanimously in favor. Director Ooten suggested a meeting with the City of Costa Mesa tc discuss Zero Waste. Director Ooten stated he was in favor of the concept. Mr. Hamers will bring back additional information to the Board, the item will remain on the Recycling Committee's agenda, and will be added to the list of items to be discussed at the next Strategic Planning Session in January of 2009. SEWER SYSTEM COMMITTEE • REPORT ON MEETING HELD MARCH 12, 2008 Director Monahan reported the Sewer System Committee met on March 12, 2008 and discussed multiple items, the three most significant listed below. CMSD FTP SITE AS POTENTIAL HOST FOR REGIONAL EDUCATION MATERIALS Mr. Hamers reported Director Ferryman suggested OCSD be considered to host the Regional Education Materials. Mr. Hamers sent the suggestion to his contact at OCSD. Mr. Hamers stated Director Ferryman will probably discuss the issue at the OCSD Operations Committee level. POTENTIAL TRANSFER OF OCSD SEWERS TO CMSD Director Monahan stated he had no new information at the Committee level. Mr. Burns stated he had no update. Director Ferryman stated the transfer was on the OCSD agenda for discussion. PROJECT #186 SEWER LATERAL ASSISTANCE PROGRAM Director Monahan reported the list of residents utilizing the Sewer Lateral Assistance Program is growing and the program is very well received. • Mr. Hamers reported projecting the response to the program to the end of the fiscal year shows the program will exceed the budget. To date, the District has COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 7 spent $81,000 of the $100,000 budgeted. Mr. Hamers spoke to Mr. Davis and Ms. Kallab regarding the options for the program. Mr. Davis presented three different options to avoid a cost overrun for the program: A. Take funds from other approved capital projects and transfer to the sewer lateral assistance program. B. Use the reserve. C. Continue to take applications through the balance of the fiscal year and communicate that reimbursement is contingent upon funding by the Board, continuing to pay all approved reimbursements until the $100,000 funding is exhausted. Include the additional claims and factor them into the budget for the following year for payment. Discussion was held regarding the various options. Mr. Hamers stated he preferred the option of using the reserves and recommended adjusting next year's CIP to the level needed to fund the program. • Director Perry requested options B. and C. be placed on the agenda for the next month's regular meeting. Director Ferryman inquired whether or not a stream of income could be dedicated to fund this program. Director Monahan suggested Mr. Davis be directed to review the numbers and determine a way to fully fund the program for the remainder of the year. Mr. Hamers stated the program is a model for the state and reported a representative on the Regional Steering Committee stated the District's Sewer Lateral Assistance Program was the most comprehensive he had seen. Mr. Hamers encouraged keeping the program operating. RECYCLING REPORTS WASTE DIVERSION REPORT - FEBRUARY 2008 Ms. Revak presented the Waste Diversion Reports for February 2008 showing a 50.43% diversion rate. . Director Schafer motioned to accept the report. Director Ooten seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 8 CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR FEBRUARY 2008 SERVICES Ms. Revak presented the Invoices for February 2008 recycling services and disposal. Director Ferryman motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of February 2008 in the amount of $156,251.13. Director Monahan seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None Director Ferryman motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights /Newport Beach for the month of February 2008 in the amount of $6,745.25. Director Monahan • seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None ORDINANCE ENFORCEMENT OFFICERS REPORT Mr. Shef reported rain and wind contributed to knocked -over containers during this reporting period. Mr. Shef also noted residents from multi - family dwellings were lax about keeping containers out of view. Residents are continuing to leave bags of newspapers out for scavengers to collect and Mr. Shef recommended a continual educational process to residents. Mr. Shef reinstituted the detailed report for the various residences reported for complaints and /or District ordinance infractions. Director Schafer reported on her street the lids are not being closed when the trash containers have been emptied. Mr. Fauth reported Mr. Shef carries a form to record infractions witnessed as he follows a trash truck on its route. Using this form will • help build a data base to assist CR &R to make sure drivers are responsible on the routes. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 9 Mr. Shef has followed along on two separate routes and reported the drivers on these routes have been handling the containers correctly and efficiently. Mr. Hamers requested Mr. Shef follow along on the route that runs in Director Schafer's neighborhood to witness how the containers are being placed back onto the street. SUBCOMMITTEE TO LIAISON COMMITTEE ON CITY TREE ROOTS Mr. Hamers reported he does not have a response from Allan Roeder, City Manager, on his request regarding a date to continue discussing the issue of City tree roots. Director Monahan reported he spoke with Mr. Roeder who mentioned he had conversations with people from the parks department regarding the tree roots. Director Monahan anticipated the District should be hearing from the City soon. Mr. Hamers reported seeing "Tree City, USA" signs along the perimeter of the City of Costa Mesa. SDRMA • EQUIPMENT LOST IN FIRE Mr. Fauth reported Staff is continuing to compile the information on the equipment that was lost in the fire and estimated the work is 90% complete. The final total will be the replacement value of the items lost. THEFT OF POWER CABLES Mr. Fauth reported Ms. Kallab assembled the invoices to submit to SDRMA on the theft of the power cables and is waiting for a final invoice from the electrician for installation of the cable onto the generators to include with the claim. RECYCLING COMMITTEE — MONDAY, MARCH 24, 2008 — 12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA (DIRECTORS OOTEN AND MONAHAN RECYCLING COMMITTEE GOALS FOR 2007/2008 Director Ooten reported the Committee reviewed the goals for 2007/2008 and Staff is condensing them as requested. U COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 10 PARTNERSHIP WITH COSTA MESA HIGH SCHOOL LIFE SCIENCE ACADEMY: ASSIST IN EXPANDING RECYCLING PROGRAMS Director Ooten reported Ms. Jackson met with the Costa Mesa High School Life Science Academy and reported they are planning a trash collection event during earth day. IWMD SUB- REGIONAL MEETINGS AND GRANT PROGRAM Director Ooten reported the City of Costa Mesa and the Costa Mesa Sanitary District were each approved for a $20,000 grant from IWMD. In anticipation of the grant monies being approved, Mr. Fauth reported research has been completed regarding the cost and type of compost bins. Mr. Fauth had discussions with Curbside Inc. to insure they can provide service for collection of batteries and Mr. Fauth will also review an offer from another company to provide similar services as Curbside Inc. Mr. Harriers suggested some of the monies be slated to OCC Recycling Center to assist in filling the gap of battery collection and fluorescent tube collection. This will allow residents to take all a -waste materials to one location. • Mr. Fauth attended the IWMD meeting where the grants were discussed. He stated the format for distribution of future grants has not been decided and may not be distributed directly to the cities and districts in future years. Mr. Fauth recommended the District utilize another avenue for monies for a U -waste program. Director Monahan inquired as to how the District would distribute funds to OCC Recycling Center for the U -Waste program. Mr. Fauth reported no monies would be given directly to OCC Recycling Center, rather, the District would contract directly with a contractor to pick up the batteries and fluorescent tubes from OCC Recycling Center. Mr. Burns recommended a follow -up report on the grant issue. FINES FOR NONCOMPLIANCE WITH AB 939 Director Ooten reported cities and agencies are to recycle 50% by the year 2000. Director Ooten presented a report showing the cities that have not come into compliance and are receiving fines as high as $82,000. UNSOLICITED DOCUMENTS Director Ooten provided an informational sheet on how to control junk mail by obtaining a junk mail reduction kit. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 11 is "ZERO WASTE" Director Ooten had no additional information to add to the subject. REQUEST FROM MACY'S SOUTH COAST PLAZA HOME STORE TO PARTICIPATE IN COMPOSTING DEMONSTRATION ON APRIL 26, 2008 Director Ooten reported there will be a composting demonstration held at the Home Store in South Coast Plaza on April 26, 2008. Mr. Hamers reported Mr. Patrick McNelly, OCSD, will speak at the seminar and the CMSD will provide support. TOUR OF ORANGE COUNTY LANDFILL FOR UCI FOREIGN EXCHANGE STUDENTS THURSDAY, MARCH 6, 2008 Director Ooten reported Staff members hosted a tour of the Orange County Landfill with foreign exchange students from UCI. REPORT ON OTHER CMSD RECYCLING PROGRAMS Director Ooten reported the Committee also discussed water conservation and new toilets. Director Ooten reported a topic of discussion at the Recycling Committee Meeting and at the IWMD centered around the acceptance of a soil load that was contaminated with PCB pesticides. Director Ooten stated protocol would require all soil loads to be tested to insure the soil was acceptable at the landfill. ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS (WDR) Mr. Hamers reported the steering committee is assisting other agencies with their compliance efforts. Mr. Hamers thanked Director Ferryman for his suggestion that OCSD host the educational materials. PROJECT #168 — IRVINE PUMPING STATION RELOCATION Mr. Hamers reported the Irvine Pumping Station Relocation is progressing nicely. �1 I.J COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 12 • CONVERSION OF "FIXTURE FEES" TO "CAPACITY CHARGES" Mr. Hamers reported Director Ooten had requested at a previous meeting to receive a listing of fixture fee revenues. Mr. Hamers presented a memorandum listing the fixture fees for the periods covering 2002/2003 to 2006/2007. Mr. Hamers is currently in the process of writing the justification for the conversion now. Mr. Hamers will research Director Ferryman's suggestion that the capacity charges support the Lateral Assistance. Program. Mr. Hamers reported the item will be brought back to the Board in ordinance form along with a request to revise the fees to an appropriate level. TREASURER'S REPORTS BUDGET CALENDAR FOR FISCAL YEAR 2008 -09 BUDGET Mr. Davis distributed a preliminary budget calendar for fiscal year 2008 -09 and requested the Board set a date for the 2008 -2009 Budget meeting. A date of May 1, 2008 at 5:30 p.m. was set for a Special Meeting to discuss the budget. 0 CR &R - RESOLUTION OF CONTRACTUAL INTERPRETATIONS FISCAL YEAR 2006 -2007 Mr. Davis reported as he was closing out fiscal year 2006 -07, CR &R raised interpretation issues regarding the revenue from the extra container program. Staff met with CR &R on several occasions and discussed three main items: 1. Program dates. The determination of dates for the first year of the container program, which Staff agreed should be September 1, 2006 to August 31, 2007 in order to encompass a full twelve months. 2. Grandfathered containers. Subsequent to the adoption of the agreement with CR &R for additional containers, there were 171 grandfathered containers that were approved by the Board. CR &R believed they should be compensated for the containers. At the time Staff met with CR &R, the number was reduced to 153, or $13,300 of lost revenue. Mr. Davis reported Staff agreed with the interpretation. CR &R agreed to a one -time payment regarding the grandfathered containers and agreed not to make any future request for reimbursement for those containers in an effort to close out the first year. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 13 • 3. Delinquent accounts. During the first year, there were approximately 200 accounts that were delinquent in paying their additional container charge. Although there is no provision in the contract for delinquent accounts, Staff is in agreement for paying the delinquent accounts to CR &R upon closing the first fiscal year. Mr. Davis presented a signed agreement from Mr. Dean Ruffridge, CR &R, agreeing to a payment to CR &R of $30,593.25 to settle the first year of the extra container program. Discussion was held regarding the delinquent accounts. Mr. Hamers stated the delinquent containers are being removed from the residences. Mr. Hamers stated he would contact CR &R and state the $30,593.25 payment will not be made until the District has been paid for the revenue owed the District for the second year of the program. Mr. Fauth reported that Ms. Kallab will take over the performance evaluation of CR &R and create a more user - friendly form. Director Ooten motioned to pay $30,593.25 to CR &R to close out the first year contract. Director Schafer seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None Director Ooten requested a follow -up on the delinquent containers. Mr. Hamers stated he will investigate the matter and bring back a report. FISCAL YEAR 2007 -2008 Mr. Davis reported the agreement with CR &R calls for 100% of the revenue from the extra container program to come to the District for rate stabilization. In closing out the first year, CR &R provided a statement of their costs during the program and is seeking reimbursement for those costs in year two. Mr. Davis stated Staff is not in agreement with the costs CR &R is providing. Mr. Davis will have additional discussions with CR &R and the item will be brought back to the Board at a future date. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 14 EXTENSION OF /AUDIT SERVICES CONTRACT Mr. Davis recommended the Board exercise the first option year and approve an engagement letter with Diehl, Evans, & Company, LLP to perform the District's annual audit for the year ending June 30, 2008 in the amount of $9,820, subject to final approval as to form by District Counsel. Director Ferryman motioned to approve the extension of audit services contract with Diehl, Evans, & Company, LLP, in the amount of $9,820, subject to final approval as to form by District Counsel. Director Monahan seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None BUDGET ADJUSTMENT FOR PROJECT #168 - IRVINE PUMPING STATION RELOCATION • Mr. Davis presented a budget adjustment for Project #168, Irvine Pumping Station. Director Ferryman motioned to approve the budget adjustment for Project #168 in the amount of $200,000. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None BUDGET ADJUSTMENT FOR PROJECT #175 - TELEVISING CMSD SEWER LINES Mr. Davis presented a budget adjustment for Project #175 - Televising CMSD Sewer Lines. Director Ferryman motioned to approve the budget adjustment for Project #175 for $83,750. Director Monahan seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 15 BUDGET ADJUSTMENT FOR DISTRICT YARD CMSD #187 - SOILS ENGINEER Mr. Davis presented a budget adjustment for the hiring of a soils engineer. Director Ferryman motioned to approve the budget adjustment for the District Yard soils engineer in the amount of $3,250. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None ORANGE COUNTY INVESTMENT POOL - SEEKING TO RECOVER $80 MILLION INVESTMENT Mr. Davis reported the Orange County Investment Pool invested in a complex British fund that was forced into receivership last month after it defaulted on payments to creditors. Mr. Davis reassured the Board no CMSD funds were invested in the Orange County Investment Pool. Mr. Davis reported CMSD monies are invested in LAIF, whose policy does not allow similarly structured investment vehicles. 0 ATTORNEY'S REPORT SUBSTITUTION OF SUBCONTRACTORS UPHELD (TITAN ELECTRICAL CORPORATION y LOS ANGELES UNIFIED SCHOOL DISTRICT) Mr. Burns informed the Board that the Court of Appeal has upheld a substitution of subcontractors against a challenge that the process was flawed. (Titan Electrical Corporation v Los Angeles Unified School District) RESOLUTION NO. 2008 -749 — MAKING FINDINGS & CONCLUSIONS PERTAINING TO THE APPEAL OF SEWER SPILL ABATEMENT CHARGES FOR 3030 HARBOR BLVD. (ROYAL OAKS PROPERTY SERVICES) (APN 418 -151- 07 Mr. Burns introduced RESOLUTION NO. 749, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT MAKING FINDINGS AND CONCLUSIONS PERTAINING TO THE APPEAL OF SEWER SPILL ABATEMENT CHARGES FOR 3030 HARBOR BOULEVARD (ROYAL OAK PROPERTY SERVICES) (APN 418 - 151 -07) Director Schafer motioned to adopt Resolution No. 2008 -749. Director Ferryman seconded. • • 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 16 Motion carried as follows: Ayes: Perry, Schafer, Ferryman Noes: None Abstentions: Monahan, Ooten REQUEST FOR RATE INCREASE Mr. Burns requested a compensation increase for the attorney services provided to the District. It has been two years since the last increase, and Mr. Burns outlined the costs that have increased, including office expenses, personnel, malpractice and other insurance, workers compensation, utilities, books, and other supplies and services necessary to run a law office. The CPI increase during this period was approximately 6.2% Mr. Burns requested an increase of 6.2% as follows: Position Existing Rate Proposed Rate Senior Attorney, Partner $170 $181 _._ Attorney e soc Asiat Aney _ . _ _ ...__.__ _ _. _ _ . $125 $1.33 Law Clerk $80 `$85 _ Paralegal $75 ._. , $80 Director Ferryman motioned to approve the increase. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None LOCAL MEETINGS (Includes reports by all Directors Representating CMSD) ORANGE COUNTY SANITATION DISTRICT (OCSD) MEETING HELD MARCH 26, 2008 (DIRECTOR FERRYMAN Director Ferryman attended the March 26, 2008 OCSD meeting and reported the following: ■ Discussion regarding transferring OCSD sewer lines to the Costa Mesa Sanitary District COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 17 SANTA ANA DIVER FLOOD PROTECTION AGENCY (SARFPA) MEETING HELD MARCH 27, 2008 (PRESIDENT PERRY) Director Ferryman attended the March 27, 2008 SARFPA meeting and reported the following: ■ Discussion regarding the legislation introduced in the House and Senate regarding the creation of a flood plain and mandatory flood insurance. Approximately 1/3 of Orange County would fall in the flood plain. • Subvention funds requested - $44 million to complete purchase of property and $8 million to complete the dam. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (DIRECTOR SCHAFER Director Schafer attended the March 4, 2008 ISDOC meeting and reported the following: • ■ $14.5 billion state budget deficit ■ Director Schafer discussed CASA ■ CSDA legislation committee forming partners with CASA, ACWA, League of Cities, and others to talk to the Governor ■ Shawn Dewane from Mesa Consolidated Water District gave a presentation to the committee on technology and production ■ Director Schafer reported on CSDA's annual conference LOCAL AGENCY FORMATION COMMISSION (LAFCO) (DIRECTOR SCHAFER) Director Schafer attended the March 13, 2008 LAFCO meeting and reported the following: • Public Hearing • Rossmoor workshop ■ , 600 people present to address the Board ■ Next public hearing in June where LAFCO will decide on moving forward on incorporation of Rossmoor area COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 18 • CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (DIRECTOR SCHAFER) Director Schafer attended the March 13, 2008 Legislative Committee meeting and March 14, 2008 Board meeting and reported the following: ■ 70% exhibitors filled for annual conference ■ Mayor of Irvine will give the opening welcome at the annual conference ■ Golf tournament - Bagit, which stands for Business Affiliates Golf Tournament, to be held on Monday, September 22, 2008 at Monarch Beach Golf Links in Dana Point at 10:00 a.m. - $125 per player ■ Meetings April 10 and 11, 2008 CWEA CONFERENCE IN SACRAMENTO - APRIL 13-16,2008 Director Monahan motioned to approve attendance by Director Ooten at the CWEA Conference in Sacramento to be held on April 13 -16, 2008. Director Schafer seconded. Motion carried 5 -0. OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030 OCCOG Director Schafer did not attend the meeting but made materials available for the Board's perusal. WACO Director Schafer attended the March 7, 2008 and March 18, 2008 meetings and reported the following: Update on CSDA ■ Program - Metropolitan Water District Water Supply Allocation Plan - What it means to Orange County Speakers Brandon Goshi, Manager, Water Resource Analysis, Metropolitan Water District and Mathew Stone, Associate General Manager, Municipal Water District of Orange County ■ Speakers for future meetings discussed • Water Festival • Lunch meeting OCWD /MWDOC May 2 • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 19 CHAMBER OF COMMERCE MEETING Director Schafer attended the Chamber of Commerce meeting on March 5, 2008 and reported the following: • Director Schafer reported on CMSD, LAFCO, and CSDA • Discussed with Edison Company contacting Mr. Fauth regarding a rebate for the District Yard due to energy- savings design Director Schafer attended the Chamber of Commerce Meeting on March 5, 2008. CSDA GOVERNANCE FOUNDATION MEETING Director Ooten attended the CSDA Governance Foundation Meeting and reported the following: ■ Duties of Board and Staff members OLD BUSINESS There was no old business discussed. NEW BUSINESS CHANGE OF REGULAR MEETING DATE FOR APRIL 2008 The April 2008 Regular Meeting was changed to Monday, April 21, 2008 at 5:30 p.m. CHANGE OF REGULAR MEETING DATE FOR JUNE 2008 The June 2008 Regular Meeting was changed to Monday, June 23, 2008 at 5:30 p.m. COSTA MESA HISTORICAL SOCIETY MEMBERSHIP DUES IN THE AMOUNT OF 100 Director Ferryman motioned to approve payment of membership dues to the Costa Mesa Historical Society in the amount of $100. Director Schafer seconded. • 0 • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2008 PAGE 20 Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None LIFETIME ACHIEVEMENT AWARD FOR BECKY BAILEY- FINDLEY BY COSTA MESA CHAMBER OF COMMERCE ON APRIL 4, 2008 Director Monahan motioned to approve the District's proclamation for Ms. Becky Bailey - Findley. Director Schafer seconded. Motion carried 5 -0. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Mr. Hamers stated Staff greatly appreciates the Board's wisdom and enjoys working with Board members. ADJOURNMENT President Perry adjourned the meeting at 7:25 p.m. ... ECRETARY RESIDENT