Loading...
Minutes - Board - 2010-03-25• COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 25, 2010 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on March 25, 2010 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF Director Monahan led the Pledge of ALLEGIANCE Allegiance. INVOCATION Mr. Fauth gave the invocation. ROLL CALL DIRECTORS PRESENT: Arlene Schafer, Robert Ooten, Gary Monahan, James Ferryman, Art Perry DIRECTORS ABSENT: STAFF PRESENT: Scott Carroll, General Manager; Joan Revak, Office Manager /Clerk of the District; Robin B. Hamers, District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Operations Manager; Marc Davis, Treasurer OTHERS PRESENT Shawn Dewane, Director Mesa Consolidated Water District Richard A. Freschi, Director Serrano Water District & Regional Water Quality Control Board Brett R. Barbre, Director Municipal Water District of Orange County • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 ANNOUNCEMENT OF LATE COMMUNICATIONS PAGE 2 Ms. Revak reported on late communications received after posting the agenda and mailing the Board packet. One of the items is a letter from President Schafer to CSDA members requesting support in her bid for re- election to her seat on the CSDA Board for Region 6. Ms. Revak also reported on a letter received from the Laguna Beach County Water District requesting support for John Withers and Charley Wilson for reappointment to the LAFCO Commission. CONSENT CALENDAR General Manager Scott Carroll requested item D2 and item D4 be pulled from the Consent Calendar. Director Ooten moved to approve the Consent Calendar with the exception of items D2 and D4. Director Monahan seconded the motion. Motion carried 5 -0 With regard to item D2, Treasurer's Reports, Mr. Carroll explained the attachments were not included in the report distributed in the Board packet. The attachments were provided as a handout at the meeting. Mr. Carroll explained to the Board that the Staff report for item D4, Directors Compensation and Reimbursement of Expenses for the month of February 2010 did not list Director Perry's expenses, however, the Expense Reimbursement Form for Director Perry was included in the Board packet. Director Monahan moved to approve the Consent Calendar as amended. Director Ooten seconded the motion. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Sewer System Committee Meeting — February 10, 2010 The Minutes of the Sewer System Committee Meeting of February 10, 2010 were approved as distributed. Minutes of Recycling Committee Meeting The Minutes of the Recycling Committee — February 22, 2010 Meeting of February 22, 2010 were approved as distributed. Minutes of the Strategic Planning The Minutes of the Strategic Planning Workshop — February 20, 2010 Workshop of February 20, 2010 were • approved as distributed. • • • COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 Minutes of Investment Oversight The Minutes of the Investment Oversight Committee Meeting — February 25, 2010 Committee Meeting of February 25, 2010 were approved as distributed. Minutes of the Regular Board of Directors Meeting — February 25, 2010 Refunds Occupancy Report and Payment of $196,786.16 to Costa Mesa Disposal — February 2010 Monthly Spill Report to State Water Resources Control Board Waste Diversion Report for February 2010 Contract Payment of $148,692.30 to CR Transfer - February 2010 Contract Payment of $9,314.49 to CR Transfer — Santa Ana Heights /Newport Beach — February 2010 Ordinance Enforcement Officer's Report The Minutes of the Regular Board of Directors Meeting of February 25, 2010 were approved as distributed. There were no refund requests for the month of February 2010. The Trash Occupancy Count documented no increase for the occupancy report for solid waste collection as of March 1, 2010. Therefore, the total for February is 21,494 and the payment of $196,786.16 was ratified. The Monthly Spill Report to the State Water Resources Control Board (SWRCB) for March 2010 was accepted as submitted. The Waste Diversion Report dated February 2010 was accepted as submitted. The contract payment of $148,692.30 to CR Transfer for recycling services and disposal for the month of February 2010 was ratified as submitted. The contract payment of $9,314.49 to CR Transfer for recycling services and disposal for Santa Ana Heights /Newport Beach for the month of February 2010 was ratified as submitted. The Ordinance Enforcement Officer's Report dated March 15, 2010 was accepted as submitted. • • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 ENGINEER'S REPORTS Project Status Report PAGE 4 The Project Status Report dated March 2010 was accepted as submitted. Howard S. Wright Contractors Invoice The Howard S. Wright Invoice for work in the amount of $169,475.83 performed through February 28, 2010 in the amount of $169,475.83 was ratified as submitted. TREASURER'S REPORTS Financial Report as of February 28, 2010 Treasurer's Report as of February 28, 2010 Warrant Register for the month of February 2010 in the amount of $1,052,312.51 Directors Compensation & Reimbursement of Expenses for the month of February 2010. The Financial Report as of February 28, 2010 was accepted as submitted. The Treasurer's Report as of February 28, 2010 was accepted as submitted. Warrant Resolution #CMSD 2010 -08 was approved, authorizing the President and Secretary to sign the warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $1,052,312.51. Director Compensation and Expense Reimbursements for the month of February 2010 were approved and ratified as follows: President Schafer: $1,326.00 + $15.00 Vice President Ooten: $1,326.00 + $16.00 Director Monahan: $884.00 Director Ferryman: $1,326.00 + $5.00 Director Perry: $1,326.00 END OF CONSENT CALENDAR • President Schafer motioned to consider a non - agenda item because the need arose after posting of the agenda. Director Monahan seconded the motion. Motion carried 5 -0 COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 • President Schafer moved to change the date for the Budget Review Meeting from May 13, 2010 to Thursday, May 20, 2010 at 5:30 p.m. Director Monahan seconded the motion. Motion passed 5 -0. WRITTEN COMMUNICATIONS Ms. Revak presented letters of appreciation from Paularino Elementary School and Kaiser Elementary School for the monetary award received from the District for their participation in the 2009 Telephone Book Recycling Program. PUBLIC COMMENTS President Schafer acknowledged the public and noted they were in attendance to present comments on Item XV.D. of the agenda. Mr. Shawn Dewane of the Mesa Consolidated Water District expressed his appreciation to the CMSD Board of Directors to allow them to speak and stated it is their pleasure to be in attendance. "As you may have heard Mr. Freschi and Mr. Dewane are running for the two LAFCO seats that are up for election on. April 29, 2010. Opponents are John Withers and Charley Wilson, who currently serve on the Local Agency Formation Commission of Orange County ( LAFCO)." Mr. Dewane gave his perspective on the situation: "I have served on the Independent Special Districts of Orange County for several years now and I am relatively new to the governance process. Mr. Dewane stated "I have served on the Mesa Consolidated Water District for five years and President for the last two years. In learning more about how special districts operate, I have become more convinced that this is a great form, probably the best form of governance that we have in the country. It provides the opportunity for local constituents to be close to the governing officials. The division of labor that is provided by having special districts provide single service and provides an economy of skill that simply can't be achieved through the central planning of large water districts. For those who have never read, I have brought two consolidation studies that were done in the past about the consolidation of water districts. Reading through this document, the logical extreme conclusion one could draw is that central planning philosophy of water management of the county would lead to one gigantic water agency with one governing board of directors. The problem I see with that, for example, yesterday Rich and addressed the Board at Emerald Bay. Emerald Bay is a small unique community that stands behind gates, a community exists since 1906 was purchased from James Irvine. As such they maintain their own streets, sewers and their own water supply. The special needs of that little community is better served by the people who live there, not by some central planning bureaucracy that governs the entire county. I.think where government fails most often is that in times of tragedy and disaster, much like New Orleans, a system • • COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 of great bureaucracy has consolidated the power into the hands of the few and the needs of that one little tiny group gets lost in the shuffle against the needs of many and the infrastructure itself gets ignored and over time begins to fail. That little tiny group tries to appeal to the logic of the governing body have but a small voice. In your case, the citizens of Costa Mesa, me being one of them, could walk in here and you perhaps could be my neighbor. We have a different type of relationship that is much closer to the people and much more accountable. In addition to that, I think that a little competition among the monopolies keeps us all honest with no basis of comparison in the gigantic monopoly we have unregulated, unchecked power to do what they wish with whatever they want. One of the things that concerns me is that 30% of all the electricity in California is used to move water alone. It takes about 3600 kilowatt hours of electricity to move one acre foot of water. Mesa moves something in the order of 15M acre feet of water per year. If you add 30 cents per kilowatt hour to the cost of production and move that down the supply chain to everything else, the cost of water and all the goods and services provided that use water as part of its component of production, rates are going to go up dramatically in the future. I brought this to the attention of the man who was giving the presentation and asked, `have you considered this in your rate and budget calculations and his answer was specious at best'. He replied yes, we have considered and we have great projections where the • electricity rates are going up 80% and I asked him if it includes the 30% taxes that are likely to be imposed on the cost of water and his reply was that `we want to be very careful about that because the bureaucracy that oversees us, the state and the federal government, are going to withhold the dollars, so who really has the powers, is it us, as local citizens, or is it some giant bureaucracy that is unanswerable to all of us? In my opinion it is unanswerable to all of us. I would hate to see, for the most conservative republican county in the United States to fall prey to the argument that centralized planning is the answer to everything. I think we have seen in the last year what happens when things become too big to fail. I think a County as large as Orange County with a population as great as it is, with one in every 100 Americans living here would soon find it tough and find ourselves where we would have one single governing body and the needs of a good many would be answered by a few very powerful directors who would then answer to no one other than themselves. I think there is a dramatic difference in philosophy of the LAFCO between the way Rich and I see this. The current philosophy is that Commission has used its judicial power to review the consolidations of these districts. I would be happy to provide copies of this document to anyone who would like to read it. There are some very interesting things. On page 11, at the very beginning of the Ralph Anderson Study, it starts off `the myths of consolidations — some individuals have the notion that special districts will automatically result in major cost savings for the public.' We spoke yesterday with one of the Districts Directors who had been through two consolidations through his District that they had absorbed to other agencies. His words to me were `we have yet to see one dollar in cost savings and it did nothing but drive up the • cost of the component of water and service through sewage that the constituents were paying for and the final result ended up with an island of 6,000 residents that are COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 unrepresented in the current governing structure of their Board.' I think in the scope of things, in the current standard the way the government functions, locally is probably better left to be the way it is. If there was something LAFCO could do it would be to encourage the independent districts themselves strengthen their financial position — if there were a Great disaster we would all be answerable to the public. If you have any questions ?" President Schafer asked "Is what you are saying, you are dissatisfied with LAFCOT' Mr. Dewane responded, "Not necessarily dissatisfied with LAFCO, but we think the MSR process has been used in a way that does not necessarily serve the best interests of all constituents." Director Ferryman asked if there are two seats up for election. President Schafer responded one is a voting seat and one is an alternate seat. Mr. Freschi stated his position is "special districts are truly unrepresented in LAFCO's operation and the special districts could have better representation and secondly, the Board the way it is now seems to be going against the philosophy that Shawn and I espouse. The Irvine Ranch Water District has taken over in the last several years five different water districts, Las Alisos, Santiago County, Carpenter, Santa Ana Heights and Orange Park Acres and are making moves on Serrano Water District. Serrano serves Villa Park and a little part of Orange and what LAFCO did was gave Villa Park a zero sphere of influence. We have 2000 residents in our little town, but in one weekend we got 1200 signatures and we went to LAFCO. The first page of signatures had the signature of the wife of Bill Campbell. It seems to me the group there now is not looking out for special districts, they are there to further their own agenda. The person I want to replace is a big -time lobbyist with Cal Strategies. He has been there since 1992 and is a good man, a family man and I like him personally and he is a lobbyist, and I think it is time for a change. I have been a business man and have started three companies, was CEO of two and took one company public. was on Villa Park City Council for twelve years, as mayor for two years. I have been on the Water Board for the last couple of years. I have the business point of view, the city government point of view and the district point of view and I think I am well qualified to serve you and will not be recusing myself because of conflicts of interest." President Schafer asked whose seat Mr. Freschi is going after. Mr. Freschi replied, he is going after John Withers seat. Mr. Freschi stated "Ed Royce has endorsed us, Rohrabacher has endorsed us; here is my resume and if you are interested; we also have a sample resolution and we would very much like to have your support as this is a very, very important issue." Mr. Dewane stated, "My concern for Mesa and the Sanitary District is that eventually the City will try to take us over and I think as a resident of the City, I think you folks are doing a fine job here and Mesa is doing a fine job when you compare our water quality, our water rate liability, the service we provide is outstanding when compared to any other agency around here. Our credit rating, our water loss ratio Is outstanding by any standard. We have a very well run district and currently would be viewed by somebody in COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING FIELD MARCH 25, 2010 a weaker financial position as a cash cow. Had other entities managed their finances properly, I don't think they would be in that same situation. There is plenty of money available for a well run city business to function in the black. I would hate to see the day come when our two districts would disappear, the history with them and the government process that goes into the craziness of the city council meetings." President Schafer stated she sits on the LAFCO Board and LAFCO doesn't go after anybody they come to us. If you don't apply, LAFCO does not touch you. Further, the districts you named actually were districts that said they would go along with it. Mr. Brett R. Barbre stated, as a Director of the Municipal Water Districts of Orange County, he slightly disagrees with that; "there is a systematic dismantling underway lead by Irvine Ranch and Santa Margarita Water District and the genesis of it is appointments to Metropolitan. In the late 1990's there were two Met agencies, MWDOC and Coastal. Coastal was not providing the services for their agencies and they wanted to consolidate with MWDOC and so they did. At the time one of the directors was Peer Swan. Peer systematically irritated and regularly ticked off every director and staff member at Metropolitan and every staff member at MWDOC and ultimately every board member at MWDOC and we took him off because we were told by the Chairman of Met if we expect to get anything done, get rid of Peer because he is hindering you, and he has never forgiven us for that. We had an opening 2006 and we put Steve Anderson on, former Chair of OC Sanitation District, worked in water and was imminently qualified. We were told by representatives of John Shotz who was the General Manager of Rancho Santa Margarita unless you put John on they are going to mess with you at LAFCO. I was told that by three different people including a now seating state senator and I happen to believe that. Systematically, from that point forward they have the MSR process. They try to dismantle MWDOC and create this false north /south issue when in reality if you want to look at the inequities in the Orange County water community it is basin vs. non - basin. If you do that you will end up with an entity in predominantly south Orange County that only purchases 36% of their water from MWDOC and Metropolitan. When you add Irvine Ranch, who is also a member of the Orange County Water District, pumps out of the groundwater basin, you bring that up to about 46 %. So that is why they have created this false north -south battle that has been going on and cost taxpayers hundreds of thousands of dollars on both sides and wasted countless hours and Mr. Withers said this morning at the Yorba Linda Water District that he has been absolutely "hands- off:" every step of the way and I reminded folks every issue dealing with MWDOC went through on a 4 -3 vote and John was the deciding vote on the "4" side to make it happen, to keep these studies going, to keep the dismantling of MWDOC in play. I think it is time there is a change. I think Arlene has done a very good job and her leadership statewide at CSDA and everyone recognizes and supports your leadership, but as Rich said, Irvine Ranch, since Withers has been on the Board, has systematically .. they pinched Santa Ana Heights, talk to the folks at Mesa, that wasn't a voluntary thing, they weren't terribly happy about that aren't talk to the folks in Newport Beach that are being spoken to by. Irvine Ranch, talk to Deborah Gavello who announced at a Tustin City Council meeting, `Irvine 0, COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 Ranch approached me and offered $42M to buy the Tustin Water Agency'; talk to Art Kidman who was the counsel for Santiago County Water and I said to him, `I was told by the Irvine folks that was voluntary and Art said I guess in the old vernacular, you sit down, you're handed a pen, with a gun to your head and something is going to be on the paper; yeah, it was a voluntary consolidation. Orange Park Acres, Los Alisos, Carpenter Irrigation; they are now in the. process of pinching East Orange County Water District and Serrano is next. Why, because Serrano has the gall to be a partial owner of Irvine Lake. They have been in existence over 100 years. They are systematically using LAFCO as a way of working the process from the inside and it is not in the best interests. It is doing what the Pringle legislation was going to do — create one water entity for Orange County and you know how hard we worked to kill that back in the 90s. I will implore you - this will send a critical message that we don't want a Hoover district in the county because once they are done taking Newport, they will take Mesa and Costa Mesa Sanitary. They have no problem doing that — Irvine Ranch has unlimited funds — over a billion in reserves. That is why I think you will see a lot of agencies that are frustrated - that don't like the continued growth of Irvine —that are supporting both Rich and Shawn. Mr. Barbre stated "many of these agencies feel threatened and use words like that when discussing the MSR process and feel that local control is going to go away. I believe • personally and very fundamentally in the individual liberty this country was founded on and I believe that special district governance is much like 200 years ago when our country was founded and we separated from England for specific reasons so we had local control and individual accountability to be able to pursue our own sense of liberty. I lived in Aliso Viejo, had a house in Coto de Casa and l moved to Costa Mesa for a reason. I don't want Costa Mesa to look like Irvine. There are very unique, very extraordinarily valuable characteristics to this community that have to be preserved and that will all be lost and we will end up with nothing but strip centers like every other place in the country because we will lose our sense of individual destiny. That is the single most important thing that can be said about all of this. It is part of this process — the control and power without respect for individual liberty is lost." President Schafer stated neither candidates have approached her and John and Charlie did two months ago. Mr. Dewane stated they were approaching the Board now. District Counsel Burns stated there are rules on "back and forth" and limits on time, but obviously Madame President is free to run the meeting as she sees fit. Mr. Freschi provided the Board with sample resolutions should the Board decide to support them. is • COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 President Schafer thanked the gentlemen for coming and stated item XV.D. would be considered at this time. President Schafer and Director Ferryman both stated they were approached a couple of months ago by Charlie Wilson and John Withers. Director Ferryman stated he did not know anyone was running against them and had given his support to Charlie and John and could not go back on his word, even though he is of the opinion either of the two gentlemen present would be excellent. President Schafer explained the procedure for voting at the ISDOC meeting on April 29, 2010. The candidates will be given time to speak at that time. Nominations from the floor will not be allowed. Ms. Revak stated nominations must be received by LAFCO no later than 3:00 p.m. on Monday, April 19, 2010. Discussion among the Board ensued. President Schafer stated a motion is in order. Director Ferryman moved to support John Withers and Charlie Wilson. President Schafer seconded the motion. Director Ferryman urged the other Board members to have an open mind and not be influenced by him and President Schafer. Director Monahan stated in listening to the discussion and after hearing Mr. Dewane and Mr. Freschi, he would not be supporting the motion. Director Perry agreed with Director Monahan. Director Ooten expressed concern with IRWD's approach to matters and noted they are extraordinarily difficult to deal with. President Schafer stated Ed Royce and Dana Rohrabacher support Shawn and Rich. Director Monahan made a substitute motion to endorse Rich Freschi as the regular Special District member representing ISDOC as LAFCO Commissioner and Shawn Dewane as Alternate Special District Member representing ISDOC on LAFCO. Director Perry seconded the motion. The substitute motion carried 3 -2. Director Ooten moved to appoint President Schafer as the voting member for the Costa Mesa Sanitary District at the ISDOC election on April 29, 2010. Director Ferryman seconded the motion. Motion carried 5 -0. MANAGER'S REPORTS LETTER OF OPPOSITION TO INDEPENDENT CONTRACTOR WITHHOLDING Mr. Carroll reported some State senators were proposing a new revenue mechanism that would require hiring entities, including local agencies, to withhold 3% of independent contractor's payments and remit that amount to the State Franchise Tax Board. The California Special Districts Association (CSDA) recommends its members to send an opposition letter to their state legislators. Mr. Carroll recommends the Board of Directors approve opposition letters and direct staff to mail said letter to the Districts state legislators. Director Ooten moved to approve the opposition letters and to direct Staff to mail said letter to the District's state legislators. Director Monahan seconded the motion. Motion carried 5 -0. Ms. Revak will mail the letters to the Honorable Chuck DeVore, Van Tran and Tom Harman. • COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 CSDA LEGISLATIVE DAYS Mr. Carroll reported the CSDA Legislative Days in Sacramento are being held on May 11 and 12, 2010 and requested approval for President Schafer, Director Ferryman and Mr. Carroll to attend the event. The forum is a good time to meet with state legislators to discuss any concerns and /or issues the District may have. Mr. Carroll presented a list of possible discussion points. The cost to send three District officials to the two -day conference in Sacramento is estimated to be $2,000/ Director Ooten moved to approve attendance at the CSDA Legislative Days in Sacramento on May 11 and 12, 2010. Director Monahan seconded the motion. Motion carried 5 -0. President Schafer informed the Board a dinner is set up with Jim Silva, Jim Ferryman, Scott Carroll, Joyce Crosswaithe and Carolyn Emery from LAFCO. CMSD RESOLUTION N0.2010-776 IN SUPPORT OF THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010 Mr. Carroll reported a major effort is underway to collect more than 1.1 million signatures • to ensure a ballot measure meets the required 694,354 valid signatures required to qualify a state constitutional amendment for the November 2010 ballot. The CSDA, a key partner to the Act, recommends local governments pass a resolution endorsing the constitutional amendment. If the Act is approved it will prevent Sacramento from. borrowing local government revenues and close the loop holes in Proposition 1A, passed in 2004. The Act will close the loop by forbidding the state to borrow from levy taxes, redevelopment money and transit funds. Director Monahan moved to approve CMSD Resolution No. 2010 -776 in support of the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. Director Ferryman seconded the motion. Motion carried 5 -0. DISTRICT WEBSITE UPDATE Mr. Carroll provided an update on the status of the District website. As the Board is aware, in mid - January 2010, Staff learned the District's website was out of service due to the financial setbacks of Visual Perspectives Internet, Inc. (VPI). VPI did not inform the District and further, Staff could not obtain from VPI a backup copy of the District's website which would have enabled Staff to restore the website quickly by finding a new host. The Board on February 25, 2010, authorized Staff to spend up to $15,000 to rebuild the District's website. After reviewing .several proposals, Staff selected Computer Masters to rebuild and host the website. Staff anticipates the website will be up and running again • by May 30, 2010. • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 CMSD YARD SECURITY AcouISITION PROTECTION ACT OF 2010 PAGE 12 Mr. Carroll summarized the need for the District to acquire an alarm system for the yard and recommended the Board of Directors approve the Greater Alarm Company proposal to coordinate with the yard contractor, Howard S. Wright, to install a turn -key Intrusion Alarm System, Video Surveillance System, Card Access System and Visitor Entry System and Fire Alarm Monitoring to ensure increased control over building access, risk and theft. Mr. Carroll reported bids were sought from Greater Alarm, UPS Security System (non- responsive), Bay Alarm Systems and ADT. Neither Bay Alarm nor ADT would offer quotes for security until after the building was completely built. The bid from Greater Alarm Security System is $25,554.95 and monthly monitoring fees of $29.95 and Staff recommends approval of the security system with building acquisition contingency funds during the construction of the CMSD Yard, expected to be completed by May 25, 2010. Mr. Burns advised Staff these are specialized contracts with licensing requirements and State law requires certain items to be included in the contracts and it will be different from our standard consultant contract. There is a State law requiring a government agency having security tapes are required to keep the tapes longer than 75 days Director Ferryman moved to approve an agreement with Greater Alarm Security System subject to legal approval at a cost of $25,554.95 and monthly monitoring fees of $29.95. Director Perry seconded the motion. Motion passed 5 -0. RECYCLING COMMITTEE - MONDAY, MARCH 22, 2010 Director Ooten reported on the Recycling Committee meeting held February 22, 2010. One of the items discussed was a change in contractor to assist in the composting program. Mr. Patrick McNelly is no longer available to work with the CMSD. The services of Ms. Francine Kaplan will be utilized. Ms. Kaplan has a good background and will assist Mr. Fauth in developing the use of County funds. Discussion was held on the use of Styrofoam containers. Trisha Throop attended the Recycling Committee meeting and advised the brochures prepared by CR &R will be mailed to Costa Mesa Sanitary District customers in May 2010. Discussion was also held on new signage to be placed on CR &R trucks. Director Ooten reported Staff is in the process of replacing Stericycle with Curbside, Inc. as the Curbside program is more economical with a couple of obstacles to overcome. President Schafer presented an article on "Up cycling" for the Board's perusal and the topic was discussed. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 • Mr. Burns brought up the subject of using recycled paper and discussion ensued. Staff will ensure all paper used by the District is made from recycled products. Mr. Carroll brought up the Stericycle contracts with the pharmacies and the subject will be included in the April 22, 2010 agenda. ENGINEER'S REPORTS INFLOW REDUCTION PROGRAM STATUS REPORT Mr. Hamers presented a summary of the District' Inflow Reduction Program. The State Water Resources Control Board and the Orange County Sanitation District require agencies to develop programs that prevent Infiltration and Inflow (1 /1) from entering sewer systems. Mr. Hamers explained infiltration is ground water entering into sewer lines through cracks and /or separated joints. After recently televising the District's system, the system was found to be in good condition with no measureable infiltration. Inflow is surface water entering from manholes or from illegal connections. The District's Inflow Reduction program is.an attempt to reduce the amount of surface water entering the sewer system. Staff believes plugging and sealing manholes is the best course of action to prevent inflow, however, not all manholes are plugged and sealed in order to allow the sewer system to function properly. The Sewer System Committee reviewed this item on March 16, 2010 with no further comments. Director Monahan left the meeting at 6:59 p.m. REPORT ON BID SEWER WORK Mr. Hamers provided the Board with an update of recently occurring bid sewer work with a value less than $15,000, citing the CMSD Operations Code requiring specific actions when sewer work valued at less than $15,000 is completed. Mr. Hamers gave a summary of a sewer main in a back yard easement along Indus Street. Bids were requested from four contractors for the work and only Mike Kilbride, Ltd. responded with a proposal and was selected for the work at a cost of $14,900. Mike Kilbride, Ltd. Is a local contractor who has an ongoing emergency services agreement with the District. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 Mr. Hamers also reported the District is responsible for adjusting its sewer manholes to grade whenever a street owner such as the City of Costa Mesa, City of Newport Beach, County of Orange or CalTrans performs street repaving. Additionally, CMSD Staff monitors all 4,646 CMSD sewer manholes for wear and tear and stability under traffic loads and replaced rings and covers when appropriate. Mr. Hamers reported the District must presently adjust 21 sewer manholes and the a request for informal bids were requested from Manhole Adjusters and EBS. Only Manhole Adjusters responded with a proposal at $440 per manhole after which CMSD Staff negotiated the price down to $430 per manhole for a total cost of $9,030. Mr. Hamers reported the cost to raise the manholes is $14,900 and the cost to adjust 21 sewer manholes is $9,030. The work is budgeted under Project #164 Miscellaneous Sewer Work and adequate funds are available. Director Perry moved to accept the report. Director Ooten seconded the motion. Motion carried 5 -0. PROJECT #129 - BRISTOL STREET SEWER Mr. Carroll provided the Board with an update on CMSD Project #129 Bristol Street Sewer Replacement. On August 20, 2009, the District entered into an agreement with Paulus Engineering to replace 2,100 linear feet of sewer main from 8" to 15 ", located on Bristol Street from Autoplex to Birch Street. The contract price was for $775,048. During construction, Paulus Engineering discovered the 12" asbestos cement water line belonging to IRWD was closer to the sewer main than records indicated (the water line was inherited by IRWD from Santa Ana Heights Water Company when they merged in 1997). Because of the close proximity of the water line, Paulus stated they could not continue replacing the sewer main without damaging the water line, thereby preventing the project from continuing from this point. District and OC Public Works engineers all concur with Paulus' assessment because asbestos cement pipe tends to be very brittle and the slightest movement will cause the pipeline to crack and burst. Therefore, the project was halted with two - thirds of the sewer main line successfully replaced. The total cost to complete two- thirds of this project without change orders is $496,579. However, Paulus was requesting an additional $285,000 in change orders, which will bring the total cost of completion to $781,579. Staff successfully negotiated, and Paulus Engineering accepted, a reduction in the final cost to $720,000 contingent that Orange County Development Agency (OCDA), who is funding the project, approves the change orders. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 • On March 8, 2010, Staff met with top County officials to discuss Paulus Engineering's change orders. At the conclusion of the meeting, County officials tentatively agreed to approve the final cost of $720,000 contingent that the County can account for all requested expenditures per the limits of the agreement between OCDA and the District. On March 19, 2010, staff received confirmation from the County that they have approved all of Paulus Engineering's invoices and will be issuing payment of $720,000 to the District. The final cost for the Paulus Contract is $720,000. Funding for this contract has been approved and appropriated in the District's Liquid Waste Account. The cost of $720,000 will be fully reimbursed by OCDA. Director Ooten moved to approve 4th and final progress payment to Paulus Engineering in the amount of $217,237.58. (Said payment calculated as $720,000 less 5% retention of $36,000 less amount paid to date of $466,762.42 = $217,237.58). Director Perry seconded the motion. Motion passed 4 -0. Director Ooten moved to accept improvements as complete and file Notice of Completion. Director Perry seconded the motion. Motion carried 4 -0. Director Ooten moved to pay retention in the amount of $36,000 35 days after Notice of Completion is recorded. Director Perry seconded the motion. Motion carried 4 -0. Director Ferryman moved to exonerate Labor and Materials Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond 1 year after Notice of Completion is recorded. Director Ooten seconded the motion. Motion carried 4 -0. Director Ferryman moved to obtain reimbursement of all expenditures from Orange County Development Agency (OCDA) and continue seeking OCDA approval and funding for replacing remaining one -third of sewer main. Director Ooten seconded the motion. Motion carried 4 -0. SEWER SYSTEM COMMITTEE Director Ooten provided a report on the Sewer System Committee that met on March 16, 2010 and reported there were no monthly spills. Discussion was held on the 1/1 Program. Staff provided an update on the GIS with 70% on phase I completed. The SCADA update system is scheduled for completion March 31, 2010; however, that will not be completed as the antenna system at the yard must be installed. • COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 TREASURER'S REPORTS Budget Adjustment for Rehabilitation of Transferred Sewers Mr. Davis referred to the previously transferred ownership of six sewers from the Orange County Sanitation District (OCSD) to the Costa Mesa Sanitary District (CMSD) and the $1,300,000 provided to offset the cost of repairs to the transferred lines. Staff is requesting a budget adjustment to provide funding for the design work associated with the improvements. Mr. Davis reported the scope of design work includes preparing plans and specifications for the re- coating of manhole interiors, re- working channels and manhole bottoms, grinding off OCSD's name from manhole covers, replacing manhole frames and covers, adjusting manholes to grade, excavating and removing and replacing the sewer line where the major sag occurs in South Coast Drive easterly of Harbor Boulevard, obtaining easements for sewers on private property, repairing a sink ole over one of the sewers, and other miscellaneous work. The District Engineer estimates the total cost of this design work to be $48,800. Adequate funds are available from the contribution from OCSD for the repair of the transferred sewer lines. Mr. Davis stated after this appropriation there will be $1,251,200 remaining to be appropriated. Director Perry moved to transfer $48,800 from Account Number 20- 000000 -2907 to Account Number 20- 200889 -4300. Director Ooten seconded the motion. Motion passed 5 -0. ATTORNEY'S REPORTS Claim by Back Bay, Ltd. For Property at 2651 -1675 Irvine Avenue (CMSD Project #168 — Irvine Pump Station Relocation) Mr. Burns provided a progress report on the Back Bay litigation, indicating there has been significant progress on this case in the last month. A trial date of August 23, 2010 is scheduled, however, the attorneys are in the discovery process. Mr. Burns will continue to monitor the progress and report to the Board of Directors. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) Director Ferryman informed the Board the OCSD met March 24, 2010 and reported Larry Crandall and Doug Davert went back to Washington, DC to obtain more funding. Loretta Sanchez is sponsoring a $5M request for fuel cell technology to power the whole plant. Also, $600K for completion of secondary improvements will be requested. Funds will also be made available for the Visitors • COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 Center. Director Ferryman stated the current National Geographic magazine contains a write up on the groundwater replenishment system. Director Ferryman will be on the sub - committee for the Visitor's Center. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry stated he did not attend the meeting of the Santa Ana River Flood Protection Agency due to another commitment. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) Director Ooten reported on the ISDOC Board meeting held on March 2, 2010 and a new Directory is being published. Ms. Revak reported the District received a new directory and it is available on -line. Mr. Neil McCormick, CSDA CEO will speak at the next ISDOC quarterly meeting on April 29, 2010. LOCAL AGENCY FORMATION COMMITTEE ( LAFCO) Director Schafer reported on the LAFCO meeting held on March 10, 2010. The public hearing regarding Rancho Santa Margarita was continued to May 2010. Items discussed included a draft study on governance options. The study is the result of a good working relationship among Rancho Santa Margarita, Orange County, LAFCO and the communities of Coto de Casa, Las Flores and Stonecliff. The Commission also discussed revisions to the recently updated LAFCO policies and procedures handbook. An update on progress toward the completion of the 2009 -2010 OC LAFCO Work Plan; contributing to the sponsorship of the Center for Demographic Research; a position on the OCCOG as an ex-off iceo or non - voting member quarterly project calendar and status of current and future LAFCO projects. ORANGE COUNTY COUNCIL OF GOVERNMENTS President Schafer attended a meeting of OCCOG today, filling in for Phil Anthony in his absence, and was impressed with all the good speakers. There was a large audience at the meeting. Mark is the new president CHAMBER OF COMMERCE President Schafer attended the March 3, 2010 meeting of the Chamber of Commerce. Reports were given by representatives of Tom Harmon and Dana Rohrabacher. Carol Proctor reported the City has a $9M deficit and are looking at making more cuts. President Schafer reported on the progress of the new CMSD . Yard building. It was reported the Chamber Board voted to support the initiative effort for the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. • COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) President Schafer attended meetings in Sacramento on March 4, 5, 2010, March 12 and March 18, 19, 2010 attending the Fiscal Committee, Executive Board meeting, a Legislative Committee meeting and a Finance Corp. meeting. President Schafer reported on progress in planning for the CSDA conference being held in Newport Beach in September 2010. Mr. Carroll informed the Board District Staff will be submitting applications for an Innovation Awards for the CMSD Sewer Lateral Assistance Program as well as an application for an Outstanding Public Outreach award. The CSDA Board of Directors sent a "Call for Nominations, Seat B ". President Schafer's term representing Region 6, Seat B will expire. Director Ooten moved to nominate President Arlene Schafer for CSDA Region 6, Seat B. Director Perry seconded the motion. Motion carried 4 -0. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) The CASA Spring Conference is being held at the Newport Beach Marriott Hotel April 28 -30, 2010. Ms. Revak will make reservations for President Schafer, Director Ferryman and Scott Carroll to attend on Wednesday, April 28 and Friday, April 30, 2010; Director Perry will attend on Friday, April 30, 2010; and Director Ooten will attend on Wednesday, April 28, 2010. SWANA Director Ooten reported on the SWANA meeting he attended in Arcadia on March 19, 2010.. Topics included trends of waste haulers; cities with zero waste plans 16 %. The County has seen a 30% decrease in tonnage from 2005 to 2008. Director Ooten stated he was the only elected official at the meeting. OLD BUSINESS There was no old business to discuss. NEW BUSINESS P_ resentation of Plaque from the CMSD honoring Ed Fawcett, Costa Mesa Chamber of Commerce, at Mesa Verde Golf Classic on April 19, 2010. Ms. Revak reported on April 19, 2010 the Mesa Verde Golf Classic will be held to raise money for Costa Mesa youth sports through Costa Mesa United and Ed Fawcett, CEO of the Chamber of Commerce will be honored for his longstanding work to better our community. In recognition of Ed's outstanding, dedicated service and leadership to the City of Costa Mesa, Staff recommends Board approval for purchasing a plaque to honor Ed on behalf of the Costa Mesa Sanitary 0 COSTA MESA SANITARY DISTRICT PAGE 19 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 District. Director Ooten moved to approve purchase and presentation of a plaque for Ed Fawcett. Director Perry seconded the motion. Motion passed 4 -0. Director Ferryman will attend the banquet and present the plaque to Mr. Fawcett. Special Meeting with Brent Ives for Draft Strategic Plan Mr. Carroll requested the Board of Directors to approve scheduling a special meeting to review the draft Strategic Plan. The Board agreed on a meeting date of Wednesday, April 7, 2010 at 10:00 a.m. with Consultant.Brent Ives. 39th Annual SWANA Western Regional Symposium Ms. Revak reported the 39th Annual SWANA Western Regional Symposium is being held in San Luis Obispo April 19 -22, 2010 and Staff recommends Board approval for AJ Cully, Program Assistant, to attend the conference. Ms. Revak reported the Conference features many technical sessions that will be beneficial to District Staff, including Food Waste Composting, Waste Conversion Technology, Special Wastes and a Tour of the Cold Canyon Landfill. Director Ferryman moved to approve attendance by AJ Cully at the 39th Annual SWANA Western Regional Symposium in San Luis Obispo April 19 -22, 2010. Director Ooten seconded the motion. Motion passed 4 -0. City Clerks Association of California Annual Conference Ms. Revak reported the City Clerks Association of California Annual Conference is being held in Ventura April 27 -30, 2010 and requested approval to attend. The conference offers the District Clerk the opportunity to network with City /District Clerks throughout the State of California and gain knowledge about practices of other cities /districts. Session topics include: eDiscovery, Electronic Public Records; Social Media in the 21 st Century; the City Clerk's Role as a Public Information Officer and Better Laws — Better Government, Using the Legislative Process to Improve Local Government. Director Ooten moved to approve attendance by Joan Revak at the City Clerks Association of California Annual Conference in Ventura, April 27 -30, 2010. Director Ferryman seconded the motion. Motion passed 4 -0. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS President Schafer reported on a request from Estancia & TeWinkle Schools Foundation • for the CMSD to be included in an event celebrating and supporting a foundation set up by the City of Costa Mesa to administer an educational endowment. Legal Counsel suggested the General Manager to look into the matter to determine if the CMSD could participate as a sponsor. Mr. Carroll will investigate and report back to the Board. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2010 • President Schafer adjourned the meeting at 7:55 p.m. 11t � 1 r President PAGE 20