Minutes - Board - 2010-07-220
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JULY 229 2010
CALL To ORDER y The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
July 22, 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; Sherry Kallab,
Administrative Manager
OTHERS PRESENT Jim Lamond
Newport -Mesa Unified School District
Bill Oatron
HMC Architects
Jim Fitzpatrick
Resident, Costa Mesa
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COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
ANNOUNCEMENT OF LATE COMMUNICATIONS
Ms. Revak reported there were no late communications.
CONSENT CALENDAR
Director Monahan moved to approve the Consent Calendar. Director Ooten seconded the
motion. Motion carried 5 -0.
REPORTS
MINUTE APPROVAL
Minutes of Sewer System Committee
Meeting —June 15, 2010
The Minutes of the Sewer System Committee
Meeting of June 15, 2010 were approved as
distributed. .
Minutes of Recycling Committee Meeting The Minutes of the Recycling Committee
—June 21, 2010 Meeting of June 21, 2010 were approved as
distributed.
Minutes of Regular Board Meeting —
June 24, 2010
Refunds
The Minutes of the Regular Board Meeting of
June 24, 2010 were approved as distributed.
There were no refund requests for the
month of June 2010.
Occupancy Report and Payment of The Trash Occupancy Count documented
$196,850.25 to Costa Mesa Disposal — no increase for the occupancy report for
June 2010 solid waste collection as of July 1, 2010.
Therefore, the total for June is 21,501 and
the payment of $196,850.25 was ratified..
Monthly Spill Report to State Water
Resources Control Board
Waste Diversion Report for June 2010
Contract Payment of $185,215.95 to
CR Transfer —June 2010
The Monthly Spill Report to the State Water
Resources Control Board (SWRCB) for July
2010 was accepted as submitted.
The Waste Diversion Report dated
June 2010 was accepted. as submitted.
The contract payment of $185,215.95 to
CR Transfer for recycling services and
disposal for the month of June 2010 was
ratified as submitted.
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COSTA MESA SANITARY DISTRICT PAGE 3
,MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
Contract Payment of $12.135.93 The contract payment of $12,135.93 to CR
to CR Transfer — Santa Ana Transfer for recycling services and disposal
Heights /Newport Beach —June 2010 for Santa Ana Heights /Newport Beach for
the month of June 2010 was ratified as
submitted.
Ordinance Enforcement Officer's
Report
ENGINEER'S REPORTS
Project Status Report
Howard S. Wright Contractors Invoice
in the amount of $268,871.52
TREASURER'S REPORTS
Financial Report as of June 30, 2010
Treasurer's Report as of June 30, 2010
Warrant Register for the month of June
2010 in the amount of $632,206:61
The Ordinance Enforcement Officer's Report
dated July 22, 2010 was accepted as
submitted.
The Project Status Report dated June 2010
was accepted as submitted.
The Howard S. Wright Invoice for work
performed through June 30, 2010 in the
amount of $268,981.52 was ratified as
submitted.
The Financial Report as of June 30, 2010
was accepted as submitted.
The Treasurer's Report as of June 30,
2010 was accepted as submitted.
Warrant Resolution #CMSD 2011 -1 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
$632,206.61
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COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
Directors Compensation &
Reimbursement of Expenses for the
month of June 2010.
PAGE 4
Director Compensation and Expense
Reimbursements for the month of June
2010 were approved and ratified as
follows:
President Schafer: $1,326.00 + $10.00
Vice President Ooten: $1,326.00 + $20.00
Director Monahan: $221
Director Ferryman: $884.00 + $4.50
Director Perry: $884.00
END OF CONSENT CALENDAR
NMUSD Request to Span Over CMSD Sewer Easement w/2 Id Floor of New
Building at Costa Mesa High School, 2650 Fairview Road, Costa Mesa
Mr. Hamers stated Mr. Jim Lamond of the Newport -Mesa Unified School District and Mr.
Bill Oatron of HMC Architects are present with a request to construct a 2nd floor span of
a new building over the CMSD sewer easement. Mr. Hamers reported Staff met with
the two gentlemen on June 18, 2010 to discuss the project that will provide classrooms
for expanding teaching methods in the History/English relationship and Math /Science
relationship. The location of the new buildings will also assist in creating a programmed
quad area while also improving campus security. The CMSD sewer and easement are
located in the center of the school campus thereby restricting development over the 20'
width of the easement. The request is to have a 2nd floor span over the CMSD
easement for a length along the easement of approximately 40'. Should the school
district be denied the ability to span the 2nd floor over the easement, there will be
additional costs for stairs, an elevator and utility runs (in the ground directly over the
CMSD sewer) amounting to approximately $400,000 in estimated costs. Staff has
determined the proposal will not adversely affect the sewer main or easement or the
District's ability to maintain, access or reconstruct the District's 18" sewer main in the
easement, if necessary, in the future.
District Counsel Alan Burns advised the Board the agreement should include a
statement the NMUSD will reimburse the District for preparation of the agreement and
also pay any legal and engineering costs, given that in the past the District has worked
with the NMUSD on a project that did not come to pass and the District bore the costs
and there should be an understanding that any expenses made by the CMSD should be
reimbursed by the NMUSD. Mr. Jim Lamond of the Newport -Mesa Unified School
District agreed to the stipulation.
Director Ooten moved to approve the project subject to the agreement being brought
back by District Counsel Burns after review by the NMUSD, including a statement that
• the NMUSD will reimburse the CMSD for preparation of the agreement, and any legal
and engineering costs will be paid for by the Newport -Mesa Unified School District.
Director Monahan seconded the motion. Motion passed 5 -0.
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COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
WRITTEN COMMUNICATIONS
Ms. Revak presented a thank you from Susan Kline of Kline School for the monetary
award from the District for their participation in the 2009 Telephone Book School
Recycling Contest. Ms. Kline stated the award made it possible for the school to buy a
high definition digital camera. The students make documentaries, tape an annual news
magazine and produce sitcoms. Ms Kline included a photo of telephone books that are
accumulating for the 2010 program.
PUBLIC COMMENTS
Mr. Jim Fitzpatrick commented on the CMSD website, stating the down -time of the
website was unacceptable, and, not understanding the full depth of why, no business
should operate in such manner. Mr. Fitzpatrick stated having reviewed the Strategic
Plan he thinks there is an opportunity to "beef it up" around technology so both the Staff
and District has access to that technology along with the public. Director Ferryman
acknowledged the Board has been upset about it as well, however, the website is now
95% completed. President Schafer stated the subject is on the agenda this evening.
GENERAL MANAGER'S REPORTS
• LEGISLATION
Mr. Carroll reported Staff works closely with the California Special Districts Association
(CSDA) on monitoring proposed state legislation and the impacts proposed laws will
have on the District. In the past, the CMSD has received requests from CSDA to offer
support or opposition to such legislation. Staff is proposing new procedures to
streamline the current process for submitting the District's positions on proposed
legislation. President Schafer stated her opinion the District's CSDA representative
should have the authority to send the letter of support. Director Perry stated his opinion
that the President of the CMSD Board should have that authority.
Director Monahan moved to give authority to the President of the Board to write support
or opposition letters on behalf of the Board if that position has been taken by an agency
the CMSD is a member. Director Ferryman seconded the motion. Motion carried 5 -0.
WATER EMERGENCY RESPONSE ORGANIZATION OF ORANGE COUNTY ( WEROC)
Mr. Carroll reported many water districts and the OCSD are using the Water Emergency
Response Organization of Orange County ( WEROC) to communicate with each other
during emergencies and /or disaster conditions. Mr. Carroll stated Staff made contact
with WEROC and they have agreed to allow CMSD to participate in the program.
• Director Monahan moved to approve the Indemnification Agreement allowing the CMSD
to participate in the WEROC program. Director Ooten seconded the motion. Motion
carried 5 -0.
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COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
COMMITTEES
Mr. Carroll requested direction to Staff with regard to the existing committee system.
The Board has established three standing committees: the Sewer System Committee,
the Recycling Committee and the Investment Oversight Committee to assist in guiding.
the Board in the decision - making process. The Sewer and Recycling Committees meet
quarterly to discuss related items and make recommendations to the Board for final
actions.
President Schafer recommended changing the date of the September Recycling
Committee due to the conflict of the CSDA Annual Conference.
Director Ooten expressed his opinion that it is too ambitious a change.
Director Monahan noted two of the committees rotate members and suggested the
same regular Board members attend all the meetings of each committee. The
committee members would then make recommendations to the full Board.
Mr. Fitzpatrick commented he attended the Recycling Committee this week and feels
the Recycling Committee represents one half of the District's business and stated he
• feels it is an important committee and should continue to meet on the same monthly
basis.
Mr. Hamers stated he feels the Sewer System Committee is a great avenue for
understanding of the sewer system and the education is of benefit to the Board
members. Mr. Hamers stated he believes the Board is stronger in their understanding
of the sewer system since the inception of the Sewer System Committee. Director
Monahan agreed with Mr. Hamers and withdrew his previous comments.
Director Ferryman stated his opinion that the subject should be delayed until after the
election as there may be a change in Directors. President Schafer directed Staff to
bring the matter back to the Board after the November election.
NEW PERSONNEL EVALUATION FORMS
Mr. Carroll presented a new Administrative Regulation 2.7 for Employee Performance
Evaluations along with a redesigned employee evaluation form. The new regulation
provides for a sliding scale merit increase where employees will be rated in 16 areas on
a point based system. A merit increase between 2% and 5% will be possible dependent
upon the number of points earned by the employee. Employees with below average
point totals will not be eligible for a merit increase.
• Mr. Carroll stated Staff reviewed several evaluation forms and found the forms used by
the City of Fountain Valley are user friendly and provide employee incentive.
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COSTA MESA SANITARY DISTRICT PAGE 7
(MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
Director Ooten stated his opinion the employees should be provided with specific goals
to meet during the review period and the supervisor should review with the employee at
the half -year point to determine the employee's progress in meeting the goals.
Director Monahan moved to approve the new Administrative Regulation 2.7 (Employee
Performance Evaluation) with the recommendation that supervisors are to provide
updates with the employee during the year to confirm the employee is progress in
meeting his /her goals. Director Ferryman seconded the motion. Motion carried 5 -0.
COMPETITIVE BIDDING AND PURCHASING
Mr. Carroll presented a PowerPoint presentation on competitive bidding and
purchasing. Mr. Carroll provided an analysis of a public works project which is defined
as all work, construction, alteration, repair or improvement other than ordinary
maintenance. For instance, replacing or relining an existing sewer line, remodeling or
constructing a building, installing a new pump station, repairing a deteriorated rooftop,
constructing a new park, street resurfacing, etc. are considered public works projects.
Ordinary maintenance is defined as work performed on a regularly scheduled basis to
service items that are not broken. The District's sewer lining cleaning program is
considered maintenance. Differentiating public works and maintenance projects is
is important to know because it establishes procedures to follow for bidding and awarding
contracts.
Sanitary Districts adhere to California Public Contract Code Section 20800 -20806 and
the CMSD Operations Code mirrors California code which states: "For public works
projects in excess of $15,000 in value, the project shall be let to the lowest responsive
bidder in accordance with the procedures set forth in Public Contract Code Section
20800 et seg."
The Uniform Public Construction Cost Accounting Act (UPCCAA) gives public agencies
more leeway in the execution of public works projects; speeds up the award process,
will improve timeliness of project completion and will greatly reduce bureaucratic red
tape and cumbersome paperwork.
Mr. Carroll recommended several modifications which are more stringent than the
UPCCAA.
Mr. Burns noted a substantial amount of money would be saved on plans and specs.
Director Ooten moved to give Staff the authority to do the competitive bidding and
purchasing of public works as represented and request Staff come back at the
August 26, 2010 Board meeting with a resolution to adopt the Uniform Public
• Construction Cost Accounting Act (UPCCAA) and revise the bidding ordinance that
complies with the Act, with change order authority to the General Manager up to 10%
and if over 10% the General Manager must come back to the Board for approval; and to
direct Staff to revise the bidding ordinance which requires obtaining three bids for
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COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
greater than $5,000 and less than $30,000. Director Perry seconded the motion.
Motion carried 5 -0.
Mr. Carroll discussed the "Best Value" Evaluation Method for non - public works and /or
maintenance projects. Non - public works and /or maintenance projects do not have to
follow the California Public Contract Code or the UPCCAA, and, as such the District
does not have to award a bid solely on low bid. Other criteria can be used such as
contractor's financial stability, quality of product or effectiveness of service, years of
operational experience of company or personnel, etc. to award a bid. Mr. Carroll
recommended the bidding process for non - public works and /or maintenance projects
over $30,000 uses the "Best Value" evaluation method. The "Best Value" evaluation
criteria must be determined before bids /quotes are published or distributed to potential
bidders. Evaluation after bids /quotes are received and, be based only on predetermined
criteria. Cost will normally be weighted at least equally with the most highly weighed
criteria. Select the evaluator(s) best able to judge the criteria and defend a decision if
challenged. The completed evaluation form will be approved by the General Manager.
Mr. Carroll also recommended that no service agreement or contract shall extend for a
period of more than five (5) years, including any authorized extensions, unless
otherwise approved by the Board of Directors. The "Best Value" method would not
is apply for purchasing supplies and equipment such as vehicles, HVAC systems, pumps,
etc. These materials will be awarded based on the lowest responsive bid.
Director Ooten moved to direct Staff to report back in August with revised bidding
ordinance that includes the "Best Value" evaluation method, require services not to
exceed five years, with the exception of refuse and recycling collection services.
Director Ferryman seconded the motion. Motion carried 5 -0.
RECYCLING COMMITTEE
Director Ooten gave a report on the July 19, 2010 Recycling Committee meeting.
Discussion of the Orange County Waste & Recycling funding and grant program was
held. Director Ooten reported Mr. Fauth is having dialog with the Isabel Rios on the
current grant and asking for authorization to use the funds to support other schools that
are in Orange County. The grant includes schools within the CMSD, the City of Costa
Mesa and the City of Huntington Beach.
Trisha Throop of CR &R, Inc. reported on the MRF that is up and running in South
County. CR &R is considering getting into street sweeping contracts. Ms. Throop gave
an update on the food waste recycling pilot program grant. The program will be
concluded in a few months and a report will be provided at that time.
• Mr. Fauth presented a list of items that can be used in composting.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
ENGINEER'S REPORTS
PLAN CHECK, INSPECTION, PERMIT AND ANNEXATION FEES - CMSD RESOLUTION No. 2010-
788
Mr. Hamers reported at a previous meeting the Plan Check, Inspection, Permit and
Annexation Fees were revised, however, upon additional review Staff proposes other
changes as noted in the proposed CMSD Resolution No. 2010 -788. Director Monahan
moved to adopt CMSD Resolution No. 2010 -788. Director Ooten seconded the motion.
Motion carried 5 -0
SEWER SYSTEM COMMITTEE
Director Monahan reported on the Sewer System Committee meeting held on Tuesday,
July 13, 2010. There was one sewer spill in the reporting period. Oversight of private
pumping stations was discussed as well as the conversion of the sewer atlas to GIS
with the Atlas 98% complete. Updates on projects were provided.
President Schafer requested an update on the Yard and Mr. Hamers reported the LEED
accreditation is not finalized and it is still undetermined if the rating will be Gold or
• Platinum. The final determination is made by the United States Green Building Council.
Mr. Hamers presented a series of photos of the Yard, the solar panels, etc. The District
is attempting to obtain signoffs from the City on 14 permits and as soon as they are
finalized the District will receive certificate of occupancy. The District will be submitting
documentation to the United States Green Building Council to accredit the District Yard
at the platinum level.
Mr. Fitzpatrick reported the City of Costa Mesa has a "Green Design Award" and he
encouraged the District to apply. Also, the Costa Mesa Green Task Force that is
effective in assisting in solar projects and in "Green" LEED certified opportunities.
The next meeting of the Sewer System Committee is August 17, 2010 at 9:00 a.m.
TREASURER'S REPORTS
AGREEMENT FOR INDEPENDENT AUDIT SERVICES
Mr. Davis reported the District is required to undergo an audit of its financial statements
on an annual basis. The existing agreement for audit services expired with the
completion of the annual audit for the year ended June 30, 2009. Staff solicited
proposals for audit services from qualified certified public accounting firms. Mr. Davis
. recommended awarding a Professional Services Agreement for Independent Audit
Services to Diehl, Evans & Company, LLP in the amount of $26,930 for the fiscal years
ending June 30, 2010, 2011 and 2012.
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COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
Director Ferryman moved to award a Professional Services Agreement for Independent
Audit Services to Diehl, Evans & Company, LLP in the amount of $26,930 for the fiscal
years ending June 30, 2010, 2011 and 2012. Director Ooten seconded the motion.
Motion carried 5 -0.
ATTORNEY'S REPORTS
Mr. Burns stated he had nothing to report.
CLERK OF THE DISTRICT REPORTS
2010 LARGE ITEM COLLECTION
Ms. Revak reported on the 2010 annual Large Item Collection Program that began on
June 21 and will conclude on August 20, 2010.
As of July 10, 2010, 88.26 tons were landfilled at a total cost of $2,123.29. Recyclable
White Goods collected during this period totaled 27.31 tons, for a credit of $1,092.40
($40.00 /ton) amounting to a net debit to -date of $1,030.89. Ms. Revak presented a
• chart illustrating the weekly progress of the collection.
CMSD RESOLUTION NO. 2010 -785 - ADOPTING AN INVESTMENT POLICY FOR FISCAL YEAR
2010 -2011
Mr. Davis presented CMSD Resolution No. 2010 -785 — Adopting an Investment Policy
for Fiscal Year 2010 - 2011. Director Monahan moved to adopt the Resolution No. 2010-
785. Director Ooten seconded the motion. Motion carried 5 -0.
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
Director Ferryman reported the OCSD meeting will be held July 28, 2010 and he
will give a report at the next CMSD regular Board meeting.
Director Ferryman reported on the OCSD website. The OCSD originally
contracted with a firm for $120,000 to develop the website and they added 60
more pages at an additional cost of $21,000. Director Ferryman reported it will
be a state of the art website.
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry reported on the June 24, 2010 and provided copies of the minutes
of the meeting. The budget and the proposed slate of officers for fiscal year
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COSTA MESA SANITARY DISTRICT PAGE 11
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
2010 -20,11 were approved. An overview of the current status of the Santa Ana
River Mainstem Project was presented and discussion of alternatives for the
future role of SARFPA was held.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC)
President Schafer attended a Board meeting on July 6, 2010. The quarterly
ISDOC luncheon will be held on July 29, 2010.
LOCAL AGENCY FORMATION COMMITTEE ( LAFCO)
President Schafer reported LAFCO did not hold a meeting in July. A Strategic
Planning meeting will beheld on August 11, 2010 at the Ebell Club in Santa Ana.
CHAMBER OF COMMERCE
President Schafer reported on a meeting held on July 7, 2010 with State,
Council, Utilities and CMSD where discussion with all representatives occurred.
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA)
• President Schafer reported on a Webinar of the CSDA Legislative Committee on
July 9 & 10, 2010 President Schafer attended a Finance Corp meeting on July
15 -16, 2010 and will be attending a Fiscal Committee meeting on July 23, 2010.
President Schafer continues to work with the Sacramento office on the Annual
Conference in September 2010 at the Newport Beach Marriott. President
Schafer reported Director Perry was of assistance in obtaining the Costa Mesa
Golf Course for the CSDA Golf Tournament.
WACO
The WACO meeting was held on July 9, 2010. Jack Foley gave an update on
the budget. John Withers presented a LAFCO update and Peer Swan gave a
report on ACWA. President Schafer gave. a CSDA Report. Heather Dion
reported on the Program on Waste Management and flood control efforts at
Prado Dam. Ed DeMesa, Water Resources Branch Chief from the LA District
U.S. Army Corps of Engineers; Craig Miller, Executive Director of OCWD and'
Lance Natsuhara, Manager, Santa Ana River Mainstem Project/ OC Public
Works were in attendance.
CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA)
Ms. Revak reminded Directors of the CASA Annual Conference being held in
• Monterey. President Schafer, Directors Ooten, Ferryman and Perry plan to
attend as well as General Manager Scott Carroll. Ms. Revak made the hotel
and conference reservations.
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COSTA MESA SANITARY DISTRICT PAGE 12
,MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 22, 2010
CALIFORNIA WATER ENVIRONMENT ASSOCIATION (CWEA)
Director Ooten reported on attending the CWEA State Collection System
Committee 2010 Mid-Summer meeting on July 16 and 17, 2010. A seminar was
held on the topics of CWEA's Collaborated Efforts with other entities on
Regulations and a TCP Training Update; Proposed Requirements for Public and
Private Lateral Marking; State Water Resources Control Board regulations and
enforcement; Sanitary Sewer Management Plan (SSMP); Rethinking your
Maintenance Program due to Budgetary Challenges. A workshop was also held
on how the State Collection System Committee can help with SSMP Training
Requirements.
OLD BUSINESS
WEB SITE UPDATE
Mr. Fauth provided a visual website update and the Board of Directors
complimented Staff. on their efforts in getting the website up and running again.
Mr. Carroll stated he will be forming a website committee comprised of Staff
excluding the Supervisors. The Committee will meet monthly and have a
continual improvement and updating process for the website.
• NEW BUSINESS
There was no new business.
ADJOURNMENT
President Schafer adjourned the meeting at 8:10 p.m.
Secretary
President