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Minutes - Board - 2011-01-27COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 27, 2011 CALL TO ORDER PLEDGE OF ALLEGIANCE INVOCATION • ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: The Board of Directors of the Costa Mesa Sanitary District met in regular session on January 27, 2011 at 5:30 p.m. at 628 W. 19tn Street, Costa Mesa. Director Ferryman led the Pledge of Allegiance. Director Ferryman gave the invocation. Robert Ooten, James Ferryman, Art Perry, Jim Fitzpatrick, Mike Scheafer STAFF PRESENT: Scott Carroll, General Manager; Joan Revak, Office Manager /Clerk of the District; Robin B. Hamers, District Engineer; Alan Burns, Legal Counsel; Sherry Kallab, Administrative Manager; Marc Davis, Treasurer; Teresa Gonzalez, Accountant OTHERS PRESENT Dean Ruffridge, CR &R ANNOUNCEMENT OF LATE COMMUNICATIONS Ms. Revak reported there were no late communications. • • COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 CONSENT CALENDAR REPORTS MINUTE APPROVAL Minutes of Sewer System Committee Meeting — December 14, 2010 Minutes of Recycling Committee Meeting December 20, 2010 Minutes of Investment Committee Meeting — December 20, 2010 Minutes of Regular Board Meeting — December 20, 2010 Refunds Occupancy Report and Payment of $197,015.05 to Costa Mesa Disposal — December 2010 Monthly Spill Report to State Water Resources Control Board Waste Diversion Report for December 2010 The Minutes of the Sewer System Committee Meeting of December 14, 2010 were approved as distributed. The Minutes.of the Recycling Committee Meeting of December 20, 2010 were approved as distributed. The Minutes of the Investment Oversight Committee Meeting of December 20, 2010 were approved as distributed. The Minutes of the Regular Board Meeting of December 20, 2010 were approved as distributed. There were no refund requests for the month of December 2010. The Trash Occupancy Count documented an increase of one unit for the occupancy report for solid waste collection as of January 1, 2011. Therefore, the total for December is 21,519 and the payment of $197,015.05 was ratified. The Monthly Spill Report to the State Water Resources Control Board (SWRCB) for January 2011 was accepted as submitted. The Waste Diversion Report dated December 2010 was accepted as submitted. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 0 Contract Payment of $174,745.36 to CR Transfer — December 2010 The contract payment of $174,745.36 to CR Transfer for recycling services and disposal for the month of December 2010 was ratified as submitted. Contract Payment of $12,261.27 The contract payment of $12,261.27 to CR to CR Transfer — Santa Ana Transfer for recycling services and disposal Heights /Newport Beach — December for Santa Ana Heights /Newport Beach for 2010 the month of December 2010 was ratified as submitted. Ordinance Enforcement Officer's Report ENGINEER'S REPORTS Project Status Report • TREASURER'S REPORTS Warrant Register for the month of December 2010 in the amount of $914,875.87 Directors Compensation & . Reimbursement of Expenses for the month of December 2010. • The Ordinance Enforcement Officer's Report dated January 13, 2011 was accepted as submitted. The Project Status Report dated December 2010 was accepted as submitted. Warrant Resolution #CMSD 2011 -7 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 $914,875.87. Director Compensation and Expense Reimbursements for the month of December 2010 were approved and ratified as follows: President Ooten: $884.00 + $7.00 Vice President Ferryman: $663.00 Director Scheafer: $884.00 + $14.00 Director Fitzpatrick: $1,105.00 Director Perry: $442.00 • • • COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD .JANUARY 27, 2011 Annual Report of Expenses — Fiscal The Annual Report of Expenses for Fiscal Year 09 -10 Year 09 -10 was accepted. Investment Report for the Month of The Investment Report for the month of December 2010. December 2010 was approved. END OF CONSENT CALENDAR Vice President Ferryman moved to accept the Consent Calendar as submitted. Director Perry seconded the motion. Motion carried 5 -0. WRITTEN COMMUNICATIONS Ms. Revak reported there were no written communications. PUBLIC COMMENTS Vice President Ferryman requested any public comments. There were no public comments. GENERAL MANAGER'S REPORTS SOCIAL MEDIA POLICY Mr. Carroll stated Strategic Goal No. 4.1 is to develop a Facebook page for the District and the purpose for developing a Facebook page stems from public demand and the rapid growth of social media use by other local, state and federal government entities as an indication that social media can be used effectively to enhance constituent communications. Mr. Carroll noted the use of social media presents opportunity and risk to the District. In general the District supports the use of social media technology to enhance communication, collaboration and information exchange to meet District strategic goals. Mr. Carroll provided proposed District social media use policies, protocols and procedures intended to mitigate associated risks from use of this technology where possible. The Board of Directors directed Staff to continue focusing on enhancing the District website as a priority before expending efforts on a District Facebook. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 • QUARTERLY BUDGET REPORT Ms. Gonzalez provided the Board with the Quarterly Budget Report — a brief analysis of District expenditures for the second quarter (October - December) of the fiscal year. Ms. Gonzalez reported overall, the solid and liquid waste funds are projected to have a surplus by the end of the fiscal year. The Solid Waste Fund is projected to have a surplus balance of $134,590 and the Liquid Waste Fund is projected to have a surplus balance of $317,110. Ms. Gonzalez noted some line items are projected to exceed approved budget amounts and Staff is monitoring these expenditures closely and will request budget adjustments accordingly. Ms. Gonzalez reported to date in the solid waste fund, the District has expended $2,371,401 and are projecting full year expenditures to be $5,315,910 for a projected year -end balance of $134,590 resulting primarily from the salaries and benefits projected to be approximately $21,900 below budget, special programs projected to be approximately $26,760 below budget and the projected non -use of the entire annual contingency in the amount of $95,000 Ms. Gonzalez stated overall, personnel expenses are running under budgeted amounts by approximately $21,900 due primarily to the retirement of the permit processing specialist in the month of November and the Office Specialist II position staffed on a part-time basis during the first half of the fiscal year with temporary staffing planned for the remainder of the year. In the liquid waste fund to date the District has expended $1,320,874 and Staff is projecting full year expenditures to be $3,279,850 for a projected year -end balance of $317,110 resulting primarily from the vacant Maintenance Supervisor position and the delay in hiring the Lead Maintenance Worker. Salaries and benefits are projected to be approximately $202,950 below budget. There is also a projected non- use of the contingency budget in the amount of $154,760. Ms. Gonzalez stated overall, personnel expenses are running under budgeted amounts by approximately $202,950. Full time salaries and benefits are projected to be below budgeted amounts because of the vacant Maintenance Supervisor position, the delay in hiring of the Lead Maintenance Worker and the retirement of the permit processing specialist. The Maintenance Supervisor position became vacant around • • COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 mid - September and is expected to remain vacant during the remainder of the fiscal year. The Lead Maintenance Worker position was anticipated to be filled early in the fiscal year, however, it remained vacant until mid - November. Overtime salaries are expected to be below budget by approximately $11,550. Ms. Gonzalez provided charts for the liquid and solid waste funds. RECYCLING COMMITTEE Director Fitzpatrick reported on the Recycling Committee meeting held on January 24. 2011 with Directors Ferryman attending. The Christmas tree recycling program was discussed. Director Fitzpatrick stated there were exceptional success stories from the Davis Magnet School and there are plans to recognize the youth from their success. Staff will report back to the Board with regard to rewarding youth for their recycling efforts. Director Fitzpatrick stated recycling events were discussed and Staff will prepare a recycling event calendar for the year. A scavenging pilot program was discussed whereby residents could switch out their regular containers to lockable containers. Mr. Ruffridge offered the services of CR &R to assist in purchasing the lockable containers and to deliver and switch out the containers. Mr. Carroll reported a meeting with the City is scheduled on February 9, 2011 to discuss enforcement of scavenging laws. Director Ferryman questioned Mr. Burns on the law covering scavenging and Mr. Burns replied it is a misdemeanor. Director Fitzpatrick stated the next meeting date for the Recycling Committee is February 22, 2011. ENGINEER'S REPORTS EMERGENCY REPAIR - CANYON PUMPING STATION FORCE MAIN - JANUARY 8, 2011 Mr. Hamers reported District Staff and contractors successfully responded to a force main break that caused a sewer spill on Saturday, • January 8, 2011. Mr. Hamers provided the particulars of the District's force main break. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 Mr. Hamers noted the District has spent years developing the emergency contractor list and fostering beneficial relationships so mobilizing the work force occurred without any problems. Mr. Hamers stated this item supports achieving Strategic Element No. 1.0, Sewer Infrastructure "through the careful management of the collection infrastructure" and Goal 1.6, Evaluate Force Main Conditions on a Regular Basis. Director Fitzpatrick recommended a letter of appreciation be sent to the OC Fairgrounds and Staff will draft such a letter. SEWER SYSTEM COMMITTEE Director Ferryman reported on the Sewer System Committee meeting held January 25, 2011. A three -year agreement with National Plant Services was mentioned. Mr. Hamers reported on the CMSD SSMP Audit in May 2011 and a seminar on self -audit held on January 20, 2011 at a CWEA event in Huntington Beach. TREASURER'S REPORTS DEBRIEFING ON AUDIT OF CITY OF BELL Mr. Davis'provided information on the audit of the City of Bell. In July 2010, an LA Times reporter did some digging at the City of Bell and found salaries were higher compared to other jurisdictions. The State Controller learned of this and conducted four separate audits at the City of Bell. One audit focused on a quality control review of the financial statement audit conducted. by Mayer Hoffman McCann (MHM). Mayer Hoffman McCann is related to CBIZ. There is a staffing agreement between MHM and CBIZ whereby CBIZ provides staffing assistance to MHM. The State Controller contacted MHM to obtain copies of working papers to conduct their quality' control review as well as the other three audits they were conducting. MHM provided all the working papers to the State and after a three month review, the State issued a draft report to MHM on the quality of the audit. MHM responded to the draft report, provided additional information and it became very apparent that the level of review the state controller was at a much different level of skill and gave rise to the great disparity that exists between what a financial audit is and the public's perception of such. At the end of the. day, during this process, the State Controller was releasing information on the results of that audit. MHM management and leadership met with the State Controller's office to discuss the findings and • presented documentation as to how those findings were satisfied by reports and working papers. The gist of the meeting was that because of COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 • the comments made in the paper, the results needed to match, in an election year, what was presented in the newspapers. MHM, in response, accelerated its peer review and an external firm was hired to review the quality of work of the CPA firm. The review is on- going; results and a report will be provided by the end of February 2011. All past peer reviews of MHM have been clean. MHM is reviewed by federal and state agencies and there has never been any issue as to sub- standard work. On Friday, January 28, 2011, the leadership of MHM is going to Sacramento to meet with the State Controller's office to discuss what can be done in the industry and in public entities to close the gap between what the public perceives and what an audit actually entails. Procedures that are actually performed are not designed to uncover fraud, and when there are massive amounts of collusion, as occurred in the City of Bell, especially at city manager and city council levels, matters can easily get around the auditors and won't be detected in a normal audit. One of the things an audit does provide is reasonable assurance that the financial statements are free of material misstatement, and there are standards the auditors must follow to be able to provide that reasonable assurance. In doing that, auditors will at the beginning of the audit conduct a risk assessment to determine where there may be risk of material misstatement in the financial statements and that will vary from agency to agency as to what the level of risk might be. The opinion also states it provides reasonable and not absolute assurance. Auditors only examine whether the financial statements are put together appropriately, in accordance with. generally accepted accounting principals, and fairly stated. President Ooten arrived at 6:15 p.m. ATTORNEY'S REPORTS CITY COUNCIL NOT IMMUNE FROM LIABILITY FOR HAVING SPEAKER EJECTED (NORSE V. CITY OF SANTA CRUZ) Mr. Burns reported in Norse v. City of Santa Cruz, the Ninth Circuit reviewed an appeal of Norse, who was the speaker ejected for giving the Nazi salute at a Council meeting in response to City Council action. Previously, the federal court upheld the action of the City in ejecting Norse for the Nazi salute as disrupting the Council meeting. This case was appealed to the Ninth Circuit and it first reviewed whether the City's summary judgment motion was properly granted. The Court found it was not properly granted and that Norse had a right to due process to prepare opposition to the judgment. As part of the procedural argument, other • significant points were addressed by the Court that add to the body of law, if not reversed by the U. S. Supreme Court. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 Mr. Burns further stated, the City argued that only part of the City Council meeting was a limited public forum and that certain parts of a council meeting are not public for at all. The Court ruled against the City and ruled that the entire council meeting is a public forum and the public has a right to attend and participate in the entire meeting, subject only to reasonable time, place and manner regulations; and, therefore, Norse's salute was to be analyzed based on first amendment law. Mr. Burns presented the conclusions of the case: 1. This case was simply a reversal of a summary judgment motion and not a decision on the merits. Nevertheless, significant legal points are established. 2. The entire Board meeting is a limited public forum. 3. An actual disturbance must occur before a rule of decorum can be enforced. 4. Board members are not immune from liability when ejecting persons from the Board chambers and can face a federal civil rights lawsuit if found to have violated a person's constitutional rights. Mr. Burns also noted the CMSD has rules of decorum and, on occasion, has had disruptive speakers. The Board, to date, has not ever ejected a speaker. CLERK OF THE DISTRICT REPORTS 2010 SCHOOL TELEPHONE BOOK RECYCLING PROGRAM REPORT Ms. Revak provided a final report on the 2010 School Telephone Book Recycling Program, including weekly collection data, recommended Contest Awards for 2010, Designated Use of Awards and a History of the School Telephone Book Recycling Program through 2010. Mr. Revak noted a minimum of one -half book per student is required to qualify for the minimum $300 participation award. Sixteen of the twenty - two schools participating met the program's minimum requirement. Upon recommendation of Staff in the 2009 program, the Board voted to give a participation award of $300 only to the schools collecting at least one -half book per student; a grand prize award to one school in each category, elementary, middle and high school, and an award to the schools collecting 10 -20 lbs. per student An Exceptional Effort Award was given to schools collecting over 20 lbs. per student. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD .JANUARY 27, 2011 PAGE 10 The same guidelines of the 2009 program were adhered to in the 2010 program. Staff recommends a grand prize in the amount of $400.00 be awarded to Monte Vista High School and Kline Elementary School. An $800 Exceptional Effort Award is recommended for Harper Preschool Center and Kline Elementary School. Director Perry brought up the guidelines of not rewarding a school if they didn't collect at least' /2 book per student. The item will be agendized for further examination of the guidelines. A suggestion was also made to perhaps combine the program with a bottle and cans recycling program. Ms. Revak stated upon approval of the Board, awards totaling $7,200.00, will be distributed to the schools. Dates will be scheduled for the Directors to present the checks. Director Perry moved to approve awards totaling $7,200.00. Director Fitzpatrick seconded the motion. Motion carried 5 -0. RESOLUTION NO. 2011 -792 - ORDERING THAT PUBLICATION OF ORDINANCE No. 81 AMENDING THE DISTRICT'S OPERATIONS CODE WITH RESPECT TO SEWER LATERAL MAINTENANCE HAS BEEN PUBLISHED Ms. Revak presented Resolution No. 2011 -792 — Ordering that publication of, Ordinance No. 81 Amending the District's Operations Code with Respect to Sewer Lateral Maintenance has been published. Director Ferryman moved to adopt Resolution No. 2011 -792. Director Perry seconded the motion. Motion carried 5 -0. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) Director Ferryman gave a report on the OCSD meeting held on January 26, 2011. The OCSD Board established a budget for the Joint GWRS Microfiltration Backwash Redirection Project and approved a reimbursement agreement with the Orange County Water District for half the project expenditure for an estimated amount not to exceed $1,061,000. The Board adopted a resolution authorizing emergency repairs to the Santa Ana River Interceptor (SARI) Pipeline Protective Cover and Ratifying the General Manager's Use of Emergency Purchasing Authority. 40 • COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry reported on the SARFPA meeting held at 4:00 p.m. on January 27, 2011. Director Perry advised of the passing of Don Martinson, Executive Director. Herb Nakasone of the Orange County Flood Control District will take over as Executive Director for six months as the Agency seeks a new Executive Director. Lance Natsuhara gave a presentation on the December 2010 storms. Modjeska Canyon, Aliso Viejo and Laguna Beach had greater than 100 - year rainfall; Irvine and San Juan Capistrano had greater than 50 -year rainfall and Irvine Lake, Bee Canyon, Agua Chinon and El Toro had greater than 25 -year rainfall. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) ISDOC QUARTERLY MEETING - .JANUARY 27, 2011 Directors Ooten, Ferryman and Perry and General Manager Scott Carroll attended the ISDOC quarterly meeting held at 11:30 a.m. January 27, • 2011. Election of the ISDOC Regular and Alternate Representative to LAFCO was held. Charlie Wilson was elected to the Regular seat on LAFCO and Jim Fisler was elected as the Alternate. ISDOC MEMBERSHIP DUES IN THE AMOUNT OF $200.00 Director Perry moved to ratify payment of the ISDOC Membership Dues for 2011 in the amount of $200.00. Director Ferryman seconded the motion. Motion carried 5 -0. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) CALL FOR NOMINATIONS - BOARD OF DIRECTORS REGION 6, SEAT B CSDA is conducting a call for nominations for a Region 6, Seat B Director to replace Arlene Schafer. The CSDA Board of Directors is the governing body responsible for all policy decisions related to CSDA's member services, legislative advocacy, education and resources. The Board of Directors is crucial to the operation of the Association and to the representation of the common interests of all California's special districts before the Legislature and the State Administration. The deadline for receiving nominations is February 4, 2011. Nominated candidates will then be interviewed by the Region's existing directors and the successful • candidate will be appointed by vote of the CSDA Board. r1 LJ COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 Director Scheafer expressed an interest in becoming a nominee for the open CSDA seat. Director Scheafer noted he is involved in legislative matters in his industry. Director Fitzpatrick moved to nominate Director Mike Scheafer for Region 6, Seat B Director of the CSDA Board of Directors. Director Ooten seconded the motion. Motion carried 5 -0. Director Scheafer will provide a letter of experience or resume to Ms. Revak who will submit the nomination form to CSDA. California Association of Sanitation Agencies (CASA) CASA Mid -Year Conference in Palm Desert — January 12 -14, 2011 President Ooten, Directors Scheafer and Perry attended the CASA Mid - Year Conference in Palm Desert January 12 -14, 2011. Other Meetings Qualifying for Reimbursement Directors Fitzpatrick and Scheafer attended the CSDA event on "How to be an Effective Board Member" and completed the AB 1234 Compliance Training for Special Districts. Director Fitzpatrick and Scheafer also attended the Delta Tour in Sacramento and toured the State Capitol among other sites. Director Fitzpatrick reported he will be at Newport-Mesa High School where they have a "green" class "who are the students who got the Styrofoam ban going and will probably attend a meeting at the CMSD and champion their ideas. OLD BUSINESS There was no old business to discuss. NEW BUSINESS General Manager Scott Carroll brought up a matter that came to Staff's attention after the agenda posting. Director Ferryman moved to hear this item as the need arose to take action after preparation of the agenda. Director Perry seconded the motion. Motion passed 5 -0. General Manager Scott Carroll reported C. J. Segerstrom & Sons and the Costa Mesa Chamber of Commerce are holding a reception and dinner to celebrate the career of Allan Roeder on March 3, 2011 at the Westin South Coast Plaza Hotel. Event Sponsorship in the amount of $2,500 for a table of 10, logo and verbal recognition and an event gift are offered as well as Table Sponsorship in the amount of $1,250 and individual tickets in the amount of $90. Proceeds will benefit Mr. Roeder's charities of COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 • choice. Discussion was held. Director Fitzpatrick suggested supporting individual attendance of Board members, the General Manager and certain Staff members. Director Ferryman moved to support the event with individual attendance by the Board of Directors and Staff members up to ten tickets in the amount of $90.00 or for a Table Sponsorship at $1,250 if this allows the CMSD to verbally recognize Allan Roeder and present a proclamation. Director Perry seconded the motion. Motion carried 5 -0. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Perry announced he will not be present at the February 24, 2011 meeting and he was excused by the Board. Director Scheafer announced he will not be present at the March 24, 2011 meeting and he was excused by the Board. Director Scheafer asked for confirmation on who is the public information officer for the CMSD and Staff confirmed it is the.General Manager. Director Scheafer brought up the use of I -Pads for use by the Board and Staff for District meetings. General Manager Carroll stated one of the items he plans to place in the budget is for the CMSD to go paperless with the Agenda and the subject will be discussed during budget meetings for 2011 -12. ADJOURNMENT President Ooten adjourned the meeting to Closed Session at 7:20 p.m. to discuss personnel performance evaluation pursuant to Government Code Section 54957 for the General Manager President Ooten reconvened the regular meeting at 8:00 p.m. and stated the Board gave General Manager Scott Carroll an above average performance evaluation. President Ooten adjourned the meeting to Closed Session at 8:05 p.m. for a conference with labor negotiators pursuant to Government Code Section 54957.6 for the General Manager President Ooten reconvened the regular meeting at 8:30 p.m. and announced the Board directed President Ooten to negotiate a compensation adjustment with the General Manager. • COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2011 President Ooten adjourned the meeting at 8:35 p.m. <: Secret President •