Minutes - Board - 2011-03-24•
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MARCH 24, 2011
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
March 24, 2011 at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF Director Ferryman led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION A moment of silence was held.
ROLL CALL DIRECTORS PRESENT: Robert Ooten, James Ferryman, Jim
Fitzpatrick, Art Perry
DIRECTORS ABSENT: Mike Scheafer was absent and excused.
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; Jacque Rogers, Assistant to
Treasurer
OTHERS PRESENT Dean Ruffridge, Vice President, CR &R Inc.
Patrick Schiavo, Consultant, CR &R. Inc.
Thomas Fauth
Costa Mesa
Karin De Jauregui
• San Diego
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COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
ANNOUNCEMENT OF LATE COMMUNICATIONS
Ms. Revak reported there were no late communications.
CONSENT CALENDAR
REPORTS
MINUTE APPROVAL
Minutes of Sewer System Committee The Minutes of the Sewer System Committee
Meeting — February 15, 2011 Meeting of February 15, 2011 were approved
as corrected.
Minutes of Recycling Committee Meeting The Minutes of the Recycling Committee
February 22, 2011 Meeting of February 22, 2011 were approved
as distributed.
Minutes of Regular Board Meeting —
February 24, 2011
FINANCIAL REPORTS
Refunds
Occupancy Report and Payment of
$197,097.45 to Costa Mesa Disposal —
February 2011
Contract Payment of $143,232.12 to
CR Transfer — February 2011
Contract Payment of $8,352.07
to CR Transfer — Santa Ana
• Heights /Newport Beach —
February 2011
The Minutes of the Regular Board Meeting of
February 24, 2011 were approved as
distributed.
There were no refund requests for the
month of February 2011.
The Trash Occupancy Count documented
an increase of four units for the occupancy
report for solid waste collection as of March
1, 2011. Therefore, the total for February is
21,528 and the payment of $197,097.45 was
ratified.
The contract payment of $143,232.12 to
CR Transfer for recycling services and
disposal for the month of February 2011
was ratified as submitted.
The contract payment of $8,352.07to CR
Transfer for recycling services and disposal
for Santa Ana Heights /Newport Beach for
the month of February 2011 was ratified as
submitted.
COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
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Warrant Register for the month of
February 2011 in the amount of
$793,610.31
Directors Compensation &
Reimbursement of Expenses for the
month of February 2011.
•
Investment Report for the month of
February 2011
ENGINEER'S REPORTS
Project Status Report
PAGE 3
Warrant Resolution #CMSD 2011 -9 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
$793,610.31.
Director Compensation and Expense
Reimbursements for the month of
February 2011 were approved and ratified
as follows:
President Ooten: $1,326.00 + $12.75
Vice President Ferryman: $1,326.00 +
$4.08
Director Scheafer: $1,326.00
Director Fitzpatrick: $1,326.00
Director Perry: $1,326.00
The Investment Report for the month of
February 2011 was approved as
submitted.
The Project Status Report dated February
2011 was accepted as submitted.
END OF CONSENT CALENDAR
Ms. Revak requested the February 14, 2911 Sewer System Committee meeting
minutes be corrected on page 4 under "Recent % of Rain Ingress into Sewer
System ", to read "OCSD's model is showing 4 — 16% rain ingress.
Vice President Ferryman moved to accept the Consent Calendar. Director Perry
seconded the motion. Motion carried 4 -0.
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COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
WRITTEN COMMUNICATIONS
Ms. Revak presented a letter from CR &R, Incorporated dated March 15, 2011 in
which it was stated they would not ask for a rate adjustment this year and,
therefore, will not have an increase for the fifth year. They continue to replace
their collection fleet with natural gas powered vehicles and will continue to
characterize the CMSD waste stream to improve the diversion from their MRF
processing.
Ms. Revak presented a letter from the Costa Mesa Chamber of Commerce
thanking the District for their continued support and encouraged the District to
contact the Chamber whenever they can be of service.
Ms. Revak presented a letter from the Principal of Paularino Elementary School
expressing their appreciation for the $300 earned by the school by participating
in the District's telephone book recycling program.
Ms. Revak also presented a letter from Kline School thanking the District for the
$1,500 check for participation and being the first place winner in the District's
telephone book recycling contest.
• PUBLIC COMMENTS
President Ooten requested any public comments and asked Mr. Fauth if he
would like to discuss the appeal of his dismissal. Mr. Fauth introduced Karin
De Jauregui, a non - practicing (inactive) attorney. Mr. Burns stated the Board of
Directors is not aware of any facts or details of Mr. Fauth's termination and they
will not be heard at this time. Mr. Burns stated, as one of the vested rights'
employees coming over from the City of Costa Mesa, Mr. Fauth is entitled to a
hearing as he has a vested property right to his job. Mr. Burns stated some of
the Board participated in a previous hearing and the length of that hearing was
one day. A time estimate from each side on the length of such a hearing was
requested and Mr. Carroll stated it would take at least one day and a maximum
of two days.
Ms. De Jauregui stated she would like to discuss the range of options. Ms.
Jauregui stated Mr. Fauth denies the allegations, and stated she is present as,
Mr. Fauth is not in a condition to fight at this point and would prefer not to go
through the same process again for reasons of the cost of a hearing to both
parties. Ms. De Jauregui stated Mr. Fauth dedicated over ten years of service to
the District, he had a strong performance review record and his personal motto is
to do the right thing at the right time, for the right reasons, and fully intended to
serve the District as well as he could until he retired. Ms. De Jauregui requested
instead of a trial that the Board hold a "mediation" and try to reach an honorable
resolution of this situation. Ms. De Jauregui stated a mediation type of process
could meet everyone's needs rather than spend the amount of time and cost as
previously took place.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
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Ms. De Jauregui stated her career has included mediation type processes and in
her opinion better resolutions are reached through mediation. Mr. Burns
requested a time estimate if the Board chooses to go forward with a hearing and
Ms. De Jauregui did not have a time estimate.
Mr. Burns stated the Board needs to have a plan of whether it chooses to go
forward with a hearing or a mediation. Mr. Burns explained a mediation would
involve a third party who would attempt to get two people to agree, it's not
binding, it is more like getting two sides to agree. There would be an outside
mediator and would probably include Mr. Fauth and Mr. Carroll. Ms. De Jauregui
stated she felt it should include the Board as well. Mr. Burns stated that would
involve Brown Act issues, and it would have to be an open session mediation.
Vice President Ferryman asked what kind of product the Board would be
expected to produce. Mr. Burns said this would be working toward a settlement
so then you would have to try to settle without the facts of what Mr. Fauth did or
did not do wrong. Mr. Burns stated the Board could choose to set a hearing
some weeks out and obtain a waiver from Mr. Fauth for any back pay. Mr. Burns
stated if the Board chooses the mediation approach it will slow down the process.
Mr. Hamers asked if two Board members were involved in the mediation does it
mean the hearing body is hearing the evidence for the first time, would it take
them away from being part of the hearing body and Mr. Burns answered that it
could. The Board could hire a hearing officer through the State Administrative
Appeals Board or hire a mediator agreed to by the Board and Mr. Fauth. Mr.
Burns stated the District does not have a formalized system as there were only a
few employees brought over from the City of Costa Mesa. Vice President
Ferryman stated, practically speaking, Mr. Carroll wouldn't have gone as far as
he did, without being sure of his action. President Ooten stated in his opinion a
mediation is an attempt to work out a settlement and asked if Mr. Fauth is open
to a settlement. Mr. Burns did not know if Mr. Carroll and Mr. Fauth have had
any settlement discussions, but that doesn't mean it couldn't happen if the Board
so desires. Mr. Fauth concurred there have been no discussions of a settlement
but he is open to a settlement. Ms. De Jauregui stated her opinion that It would
be in the best interests of both parties at the very least to sit down and talk rather
than bringing out mud - slinging to get to an end result.
Mr. Burns stated he understood from Mr. Carroll that it would take about six
weeks for counsel to be available to put on this matter which leaves some time
for the parties to discuss a settlement.
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COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
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Mr. Burns stated the Board could explore mediation while setting a hearing date
for six weeks out and authorizing the Manager to meet with Mr. Fauth to explore
settlement or to use his contractual authority within his limits to hire a mediator
and if that does not work, a date is set for a hearing that will make findings of fact
and the Board will review the record produced and after the hearing concludes
on, the Board will make a decision about discipline based upon the written
record. Mr. Burns stated a decision should be made about how the District will
proceed. Director Fitzpatrick questioned the process if it goes to mediation,
and there is agreement, it would come back to the.Board for approval and Mr.
Burns replied in the affirmative and stated if it did not, the Board could then be
the hearing body. Director Fitzpatrick stated he would not be able to make a two -
day commitment six weeks out. Director Fitzpatrick asked who the hearing
officer would be. Mr. Burns stated a hearing officer would be a lawyer /judge -type
person. It would be about evidence — a lay person with knowledge of the law and
what occurred would have to be proved. The record produced and the decision
is then reviewable, if there is a challenge within 90 days, by a Superior Court
judge. He would review and make sure the District has the legal weight of
evidence to support whatever decision has been made. If the judge were to find
it was wrong, the judge can overturn the decision of the Board. If the Board hires
a hearing officer, Mr. Burns would not be involved in the hearing and the District
would save on his cost. Mr. Burns would then advise the Board based on the
opinion of the hearing officer. The decision is whether the Board wants to hear
the case or retain a hearing officer at some expense. Mr. Carroll stated if a
hearing officer is retained the cost typically is $2,400 /day and typically is split by
the two parties.
It was proposed that Mr. Carroll and Mr. Fauth set a date to sit down and try to
work out a resolution. Ms. De Jauregui requested she be present at the meeting
and the Board and Counsel agreed.
Director Fitzpatrick requested an estimate on what the costs of a hearing might
be. Mr. Carroll stated the cost estimate of a two -day hearing would be about
$30,000.
Director Ferryman moved to direct Mr. Carroll to proceed with settlement
discussions, and mediation, if necessary, and if those efforts do not produce an
agreement between the parties that can be submitted to the Board for approval,
a hearing by the Board will be held Tuesday, May 10 and Wednesday, May 11,
2011. Director Perry seconded the motion. Motion carried 4 -0.
Mr. Fauth thanked the Board and Staff for their consideration.
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COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
GENERAL MANAGER'S REPORTS
PAGE 7
PROHIBITING THE USE OF EXPANDED POLYSTYRENE (COMMONLY KNOWN AS
STYROFOAM) IN DISTRICT FACILITIES AND DISTRICT - SPONSORED EVENTS
Mr. Carroll presented a policy prohibiting the usage of expanded
polystyrene (commonly known as Styrofoam) in District facilities and at
District - sponsored events. Mr. Carroll explained the purpose of the
proposed policy is to reduce the amount of polystyrene foam that enters
the waste stream and promote zero waste strategies. By prohibiting the
use of such products within District facilities and at District-sponsored,
events demonstrates the District's commitment and leadership to
protecting the environment. Vice President Ferryman moved to adopt
Administrative Regulation No. 10.00. Director Perry seconded the
motion. Motion carried 4 -0.
SPRINGBROOK CONFERENCE MAY 2011
Mr. Carroll recommended approval by the Board for attendance of
Teresa Gonzalez and Kaitlin Tran to the 2011 Springbrook Software
• Client Conference May 2 -5, 2011 in Portland, Oregon. The CMSD
Operations Code Section 3.02.070 Staff Expenses requires prior Board
approval for Staff to travel out of state for conferences, meetings,
seminars or related matters. Springbrook is the District's accounting
software provider and they hold an annual conference in Portland,
Oregon. Director Perry moved to approve attendance by CMSD
employees Teresa Gonzalez and Kaitlin Tran at the 2011 Springbrook
Software Client Conference May 2 -5, 2011 in Portland, Oregon. Director
Ferryman seconded the motion. Motion carried 4 -0.
RECYCLING COMMITTEE
Director Fitzpatrick reported on the Recycling Committee meeting held
on March 21, 2011. Mr. Patrick Schiavo, CR &R Consultant presented
insights in the trash industry including the waste characterization study,
diversion rate and the recycling report generated by CR &R. Mr. Schiavo
will capture this data in writing and submit it to the CMSD Board of
Directors.
Director Fitzpatrick reported the Recycling Goals will be coordinated with
the Strategic Plan.
• Director Fitzpatrick reported the Committee discussed going to the .
option of two call -in large item pickups instead of offering the summer
large item collection and will consider in 2012. This should eliminate a
great deal of scavenging.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
•
The Enforcement Officer's report was presented.
Director Fitzpatrick stated the next meeting date for the Recycling
Committee is April 25, 2011.
ENGINEER'S REPORTS
PROPOSED EMERGENCY SERVICES AGREEMENTS FOR TWO TRAFFIC
CONTROL COMPANIES
Mr. Hamers stated the District's emergency response plans include
implementing traffic control to insure workplace safety and to satisfy the
requirements of the governing agencies owning the streets where
District sewers are located. These agencies include the Cities of Costa
Mesa and Newport Beach, the County of Orange and Caltrans. Mr.
Hamers stated to properly design and implement traffic control during an
emergency, Staff recommends executing the CMSD standard
emergency services agreements with two local traffic control companies,
Coastal Traffic Systems and California Barricade.
. Vice President Ferryman moved to approve the recommendation of
executing the Emergency Service Agreements with Coastal Traffic
Systems and California Barricade. Director Perry seconded the motion.
Motion carried 4 -0.
SEWER SYSTEM COMMITTEE
Director Ooten reported on the Sewer System Committee meeting held
March 15, 2011 with all five Directors participating.
TREASURER'S REPORTS
Ms. Rogers stated she had nothing to report.
ATTORNEY'S REPORTS
Mr. Burns stated he had nothing to report.
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COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
CLERK OF THE DISTRICT REPORTS
RESOLUTION NO. 2011 -793, NOMINATING MICHAEL SCHEAFER AS A
CANDIDATE FOR ELECTION TO THE SPECIAL DISTRICT RISK MANAGEMENT
AUTHORITY (SDRMA) BOARD OF DIRECTORS
Ms. Revak provided CMSD Resolution No. 2011 -793, Nominating Michael
Scheafer as a Candidate for Election to the Special District Risk
Management Authority (SDRMA) Board of Directors. Director Perry
moved to adopt CMSD Resolution No. 2011 -793, Nominating. Michael
Scheafer as a Candidate for Election to the Special District Risk
Management Authority (SDRMA) Board of Directors. Vice President
Ferryman seconded the motion. Motion carried 4 -0.
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
Director Ferryman did not attend the OCSD meeting held on
March 23, 2011.
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry reported on the March 24, 2011 meeting of the Santa Ana
River Flood Protection Agency.
OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT
Director Fitzpatrick reported attending the Huntington Beach City Council
meeting, where they voted to increase the trash rate.
OLD BUSINESS
There was no old business to discuss.
NEW BUSINESS
COSTA MESA HISTORICAL SOCIETY ANNUAL MEMBERSHIP DUES IN THE
AMOUNT OF $100
Vice President Ferryman moved to approve the payment to the Costa
Mesa Historical Society of $100 for Annual Membership Dues. Director
Perry moved to second the motion. Motion carried 4 -0.
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• COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2011
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Discussion was held on the idea of holding a Board meeting at the
Historical Society sometime in the future as the Board has done in the
past.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
ADJOURNMENT
President Ooten adjourned the meeting at 6:50 p.m.
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Secretary
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