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Minutes - Board - 2011-05-260 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MAY 2652011 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 May 26, 2011 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. Director Perry led the Pledge of Allegiance. Director Scheafer led the Invocation. Robert Ooten, James Ferryman, Mike Scheafer, Jim Fitzpatrick, Art Perry STAFF PRESENT: Scott Carroll, General Manager; Joan Revak, Office Manager /Clerk of the District; Robin B. Hamers, District Engineer; Alan Burns, District Counsel; Teresa Gonzalez, Accountant; Marc Davis, Treasurer OTHERS PRESENT ANNOUNCEMENT OF LATE COMMUNICATIONS There were no late communications. Dean Ruffridge, CR &R Inc. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 • CONSENT CALENDAR REPORTS MINUTE APPROVAL Minutes of Sewer System Committee The Minutes of the Sewer System Committee Meeting — April 19, 2011 Meeting.of April 19, 2011 were approved as corrected. Minutes of Recycling Committee Meeting The Minutes of the Recycling Committee March 25, 2011 Meeting of April 25, 2011 were approved as corrected. Minutes of Special Meeting — April 27, The Minutes of the Special Meeting held April 2011 27, 2011 were approved as distributed. Minutes of the Investment Oversight Committee Meeting — April 28, 2011 • Minutes of Regular Board Meeting — March 24, 2011 FINANCIAL REPORTS Refunds Occupancy Report and Payment of $197,115.76 to Costa Mesa Disposal — April 2011 Contract Payment of $170,349.49 to CR Transfer —April 2011 • The Minutes of the Investment Oversight Committee Meeting — April 28, 2011 were approved as distributed. The Minutes of the Regular Board Meeting of April 28, 2011 were approved as corrected. There were no refund requests for the month of April 2011. The Trash Occupancy Count documented an increase of one unit for the occupancy report for solid waste collection as of May 1, 2011. Therefore, the total for May is 21,530 and the payment of $197,115.76 was ratified. The contract payment of $170,349.49 to CR Transfer for recycling services and disposal for the month of April 2011 was ratified as submitted. • • • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 Contract Payment of $8,390.71 to CR Transfer — Santa Ana Heights /Newport Beach — April 2011 Warrant Register for the month of April 2011 in the amount of $608,106.80 Directors Compensation & Reimbursement of Expenses for the month of April 2011. Investment Report for the month of April 2011 ENGINEER'S REPORTS Project Status Report PAGE 3 The contract payment of $8,390.71 to CR Transfer for recycling services and disposal for Santa Ana Heights /Newport Beach for the month of April 2011 was ratified as submitted. Warrant Resolution #CMSD 2011 -11 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 $608,106.80. Director Compensation and Expense Reimbursements for the month of April 2011 were approved and ratified as follows: President Ooten:' $1,326.00 + $382.49 Vice President Ferryman: $1,326.00 + $7.65 Director Scheafer: $1,326.00 + $12.75 Director Fitzpatrick: $1,326.00 Director Perry: $1,326.00 The Investment Report for the month of April 2011 was approved as submitted. The Project Status Report dated April 2011 was accepted as submitted. END OF CONSENT CALENDAR Director Scheafer requested the minutes of the regular meeting of April 28. 2011 be corrected to read "Director Scheafer abstained from voting to approve the regular Board of Directors meeting held on March 24, 2011 as he was not present" (the minutes incorrectly read Director Fitzpatrick). Mr. Burns, District Counsel requested the minutes of all the Committees be signed by the Chairman of each Committee and not the President and Secretary of the Board. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 • Mr. Burns requested the Recycling Committee minutes be revised to delete "the Board agreed" to "the Committee agreed" on page two. Mr. Burns also requested on page 4 of the April 28, 2011 Regular meeting minutes under "Written Communications" and the approval of the sewer lateral program post -facto reimbursement, it should be noted the Board made a finding that they wanted to show a public purpose was being served in the reimbursement to Mr. James D. Reynolds. The improvements were performed after the program was officially adopted in 2006. Improvements performed before 2006 are not eligible for reimbursement, but improvements. done after 2006 will be reviewed and approved by Staff on a case -by -case basis. Director Perry moved to accept the Consent Calendar with the requested changes. Director Scheafer seconded the motion. Motion carried 4 -0. WRITTEN COMMUNICATIONS PUBLIC COMMENTS There were no public comments. • Mr. Carroll requested the Board await the arrival of President Ooten before going ahead with the General Manager's Reports and instead hear the report for the Recycling Committee. Vice President Ferryman requested Director Fitzpatrick present the Recycling Committee report. RECYCLING COMMITTEE Director Fitzpatrick reported on the Recycling Committee meeting held on May 23, 2011. The Enforcement Officer's report was presented. Director Fitzpatrick stated the next meeting date for the Recycling Committee is June 20, 2011. ENGINEER'S REPORTS Mr. Hamers stated he had nothing to report. • COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 SEWER SYSTEM COMMITTEE Mr. Hamers reported on the Sewer System Committee meeting held May 17, 2011 with all five Directors participating. Mr. Hamers reported on alternatives to the SCADA system andthe District may be able to find a vendor to take over the existing system resulting in better operation. President Ooten arrived at 5:50 p.m. GENERAL MANAGER'S REPORTS FISCAL YEAR 2011 -12 BUDGET Mr. Carroll noted a preliminary budget for Fiscal Year 2011 -12 was presented to the Board on April 27, 2011 at which time the Board directed Staff to make several modifications. Modifications made were: Appropriate $30,000 for a Zero Waste Implementation Plan. • Remove $150,000 for the Stromboli Sewer Improvements from the CIP budget. Separate the $1 million Earthquake Reserve Fund from the Asset Management Fund. Identify contract employees in the Organization Chart. Replace the word "Miscellaneous" in line items. Promotional positions were presented along with salary increases. The proposed budget projects $13,013,250 in revenues and $13,012,335 in expenditures leaving a projected balance of $915. Staff is also looking into revisions in the District's CalPERS pension plan for new employees with 2% at 60. Discussion was held on various pension plans and Mr. Carroll was directed to look into other plans offered by CalPERS and report back to the Board on his findings for a 1.675% at 57 -1/2% pension program for new employees. • Director Fitzpatrick requested the reason for the increase in the budget from 2010 -2011, and if the strategic plan impacted the increase. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 • Mr. Davis explained last year the District was looking at $8.5 million and this year $9 million, a difference of around $500,000 and that increase compared to what actuals were is split out between an increase in salaries and benefits of $70,000, an increase in operations and maintenance of $415,000 that is comparing actuals and does not bring into play what the budget was last year. Mr. Carroll reported savings in salaries and operations and maintenance. The actual budget last year excluding capital improvements was a little over $8.7 million and will go from $8.7 million in budget to just a little over $9 million; only about a $300,000 increase comparing budget to budget. Vice President Ferryman moved to adopt Resolution No. 2011 -795 Adopting a Budget for the Fiscal Year 2011 -12, Director Perry seconded the motion. Motion carried 5 -0. FIRE DAMAGED EQUIPMENT BUDGET ADJUSTMENT Mr. Carroll requested a budget adjustment for fire damaged equipment in the Santiago Canyon fire in October 2007. Miscellaneous equipment parts stored at Jimi, the District's pump station maintenance contractor's • yard. A claim was filed with the District's insurance provider, Special District Risk Management Authority ( SDRMA) and in November 2008 the District received $154,369 for the actual cash value of the equipment loss. Mr. Scott explained to receive the entire replacement cost of $235,773, all of the damaged equipment must be replaced and SDRMA supplied with proof of purchase. Staff requests Board approval of a budget adjustment in the amount of $130,701 to fund the entire replacement of the fire - damaged equipment. Director Ferryman moved to approve the budget adjustment in the amount of $130,701 to fund the entire replacement of the fire - damaged equipment. Director Scheafer seconded the motion. Motion carried 5 -0. AUTHORITY TO TRANSFER FUNDS FROM ACCOUNT TO ACCOUNT CMSD ORDINANCE NO. 82 Mr. Carroll requested approval of an Ordinance giving the General Manager authority to transfer up to $50,000 from account to account within the existing adopted budget with transfers over $50,000 requiring approval by the Board of Directors. President Ooten requested notification to the Board when such a transfer is made by the General Manager. • COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 Mr. Davis stated this practice is common in other organizations. Vice President Ferryman moved to approve CMSD Ordinance No. 82, Amending Section 4.03.010 of the Operations Code to Allow Budget Transfer. Director Perry seconded the motion. Motion carried 5 -0. TREASURER'S REPORTS Mr. Davis stated he had nothing to report. ATTORNEY'S REPORTS PROPOSED ORDINANCE ESTABLISHING LEGAL DUTIES TO MAINTAIN SEWER LATERALS SO AS TO NOT DAMAGE DISTRICT PROPERTY OR CAUSE.SEWER SPILLS AND PROHIBITING DUMPING DEBRIS INTO DISTRICT'S SYSTEM Mr. Burns presented an Ordinance to strengthen existing ordinances and add additional authority to ensure that sewer spills do not occur by improper maintenance of private laterals, including roots and other conditions. The proposed ordinance would also make it a misdemeanor • to damage District property or to dump debris in the District's system. Director Perry moved to approve CMSD Ordinance No. 83, Providing for the Abatement of Conditions Caused by Improperly Maintained Laterals or Dumping Debris in District's System. Director Scheafer seconded the motion. Motion carried 5 -0. CLERK OF THE DISTRICT REPORTS Ms. Revak presented a Records Management and Retention Schedule provided by Consultant Diane Gladwell, President of Gladwell Governmental Services, Inc. The retention schedule is the first step in the process of creating a records management and retention program. The Board of Directors previously approved a budget amount of $32,100 for this project and an additional $7,000 is in the 2011 -2012 budget. Director Scheafer moved to adopt the Records Management and Retention Schedule. Director Fitzpatrick seconded the motion. Motion carried 5 -0. • • COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) Director Ferryman reported on the OCSD meeting held on May 25, 2011. Incumbents Chairman Larry Crandall and Vice Chairman Troy Edgar were elected for another term. Vice President Ferryman reported on the passing of Tom Woodruff with memorial services being held on June 4, 2011 SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry reported on the meeting of the Santa Ana River Flood Protection Agency held on May 26, 2011 at 4:00 p.m. Fourteen bids were opened for the SARI line and the bids came in lower than anticipated. Two candidates were interviewed for the Executive Director, position — Herb • Nakasone and Carl Nelson. Director Perry`reported they are both excellent candidates. CWEA Annual Conference in Ontario — April 13, 2011 President Ooten attended the CWEA Annual Conference in Ontario on April 13, 2011 and requested reimbursement approval. Vice President Ferryman moved to approve President Ooten's attendance and reimbursement. Director Perry seconded the motion. Motion carried 5 -0. OLD BUSINESS There was no old business to discuss. NEW BUSINESS There was no new business to discuss. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Fitzpatrick reported he completed the California Resource Recovery Association (CRRA) grant funded training and will graduate upon completion of his class project. � ]l COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2011 • Director Fitzpatrick and Scheafer reported on the Branding Committee that met on May 25, 2011. Director Perry also attended as an observer. Mr. Carroll presented the unfinished video at the meeting and discussion was held on required revisions. Director Scheafer stated the video was well done and professional with revisions required. Director Perry also attended a couple of Costa Mesa City Council meetings with outsourcing as a major topic and. suggested the CMSD Board be sensitive to the citizens and employees of the City in how the CMSD approaches it. President Ooten also attended the last Costa Mesa City Council meeting. President Ooten reported on the Legislative Days in Sacramento attended by himself, Vice President Ferryman, Secretary Mike Scheafer, Director Fitzpatrick and General Manager Scott Carroll. Director Fitzpatrick complimented Mr. Carroll on his outreach in communicating the District's position to the legislative group and observed Mr. Carroll developing relationships that could facilitate the District's business in the future. Director Scheafer reported he and Director Fitzpatrick attended the Orange County Water Summit on May 20, 2011. The meeting was primarily a history lesson and • was informative. Director Fitzpatrick reported he and General Manager Scott Carroll will be meeting with Bob Ghirelli to discuss food waste digester on June 7, 2011. ADJOURNMENT President Ooten adjourned the meeting at 6:40 p.m. Secreta • f LL- President