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Minutes - Board - 2010-07-220 U 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 0 • • 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. • • • 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 • 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. • 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. • 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. L' 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 • 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. • 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 • 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. • 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