Minutes - Board - 2011-07-28•
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JULY 289 2011
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
July 28, 2011 at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF Director Perry led the Pledge of Allegiance.
ALLEGIANCE
INVOCATION Director Scheafer led the Invocation.
ROLL CALL DIRECTORS PRESENT: Robert Ooten, James Ferryman,
Mike Scheafer, Art Perry
DIRECTORS ABSENT: Jim Fitzpatrick
STAFF PRESENT: Scott Carroll, General Manager; Joan Revak,
Office Manager /Clerk of the District; Robin B.
Hamers, District Engineer; Colin Burns,
District Counsel; Sherry Kallab,
Administrative Manager; Marc Davis,
Treasurer; Teresa Gonzalez, Accounting
Manager
OTHERS PRESENT George Lazurak, CR &R Inc..
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COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
ANNOUNCEMENT OF LATE COMMUNICATIONS
There were no late communications.
CONSENT CALENDAR
REPORTS
MINUTE APPROVAL
Minutes of Sewer System Committee The Minutes of the Sewer System Committee
Meeting — June 14, 2011 Meeting of June 14, -2011 were approved as
distributed.
Minutes of Recycling Committee Meeting The,Minutes of the Recycling Committee
June 20, 2011 Meeting of June 20, 2011 were approved as
distributed..
Minutes of Regular Board Meeting — The Minutes of the Regular Board Meeting of
June 23, 2011 June 23, 2011 were approved as distributed.
ENGINEER'S REPORTS
Project Status Report
The Project Status Report dated July 2011
was accepted as submitted.
Occupancy Report and Payment of The Trash Occupancy Count documented no
$197,124.92 to Costa Mesa Disposal — increase of one unit for the occupancy report
July 2011 for solid waste collection as of July 1, 2011.
Therefore, the total for July is 21,531 and the
payment of $197,124.92 was ratified.
Contract Payment of $179,110.43 to CR
Transfer —June 2011
Contract Payment of $14,327.08
to CR Transfer — Santa Ana
Heights /Newport Beach — June 2011
The contract payment of $179,110.43 to
CR Transfer for recycling services and
disposal for the month of June 2011 was
ratified as submitted.
The contract payment of $14,327.08 to CR
Transfer for recycling services and disposal
for Santa Ana Heights /Newport Beach for
the month of June 2011 was ratified as
submitted.
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COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
Warrant Register for the month of June
2011 in the amount of $393,676.25
Directors Compensation &
Reimbursement of Expenses for the
month of June 2011.
Investment Report for the month of
June 2011
Quarterly Budget Reports
PAGE 3
Warrant Resolution #CMSD 2012 -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
$393,676.25.
Director Compensation. and Expense
Reimbursements for the month of June
2011. were approved and ratified as
follows:
President Ooten: $1,326.00 + $130.04
Vice President Ferryman: $1,326.00 +
$186.71
Director Scheafer: $1,326.00 + $150.91
Director Fitzpatrick: $1,326.00 + $112.71
Director Perry: $1,326.00 + $141.86
The Investment Report for the month of
June 2011 was approved as submitted.
The Quarterly Budget Report were
approved as submitted..
END OF CONSENT CALENDAR
Director Perry moved to accept the Consent Calendar. Director Scheafer
seconded the motion. Motion carried 4 -0.
WRITTEN COMMUNICATIONS
There were no written communications.
PUBLIC COMMENTS
There were no public comments.
PUBLIC COMMENTS
• President Ooten invited public comments. There were no public comments.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
GENERAL MANAGER'S REPORTS
CALPERS PLAN AMENDMENT
Mr. Carroll stated at the June 23, 2011 Board meeting the Board of
Directors directed Staff to return at the July 28, 2011 meeting with a
Resolution of Intent to amend the District's contract with the California
Public Employees' Retirement System (CaIPERS) to provide new
Miscellaneous Employees a benefit formula of 2% @ 60. In addition, under
the new plan, employees will pay their portion of the retirement contribution
(7% of PERSable wages) and their retirement benefits will be computed
based on the average of the thirty six highest paid consecutive months as
opposed to the current plan based on the twelve highest paid consecutive
periods. Mr. Carroll provided a resolution as the first step in the plan
amendment process. Mr. Carroll also provided a Cal PERS actuarial
study, detailing the annual dollar savings. Mr. Carroll explained the
change in pension formula for miscellaneous new hires is expected to
gradually decrease the District's retirement benefit expense. The District is
required by law to provide public notice of the actuarial study two weeks
• before adopting the final contract and at least 20 days must proceed the
final contract adoption. Director Perry moved to adopt the Resolution of
Intention of the Board of the Costa Mesa Sanitary District, stating its intent
to amend the contract between CalPERS and the Costa Mesa Sanitary
District to implement Section 20475 (2% @ 60 Full Formula) providing a
second tier of a different level of benefits for new Miscellaneous Employees
and at the August Board meeting adopt the final contract amendment.
Director Ferryman seconded the motion. Motion carried 4 -0.
CALWARN MUTUAL ASSISTANCE AGREEMENT
Mr. Carroll presented a mutual aid agreement for sharing emergency
resources among water and wastewater member agencies statewide.
Mr. Carroll stated CalWARN stands for California Water/Wastewater
Agency Response Network. The mission of CalWARN is to support and
promote statewide emergency preparedness, disaster response and
mutual assistance matters for public and private water and wastewater
utilities. The statewide organization functions in coordination with Cal -EMA
and is organized along the geographical lines established by Cal -EMA
which includes six regions in the state. CMSD is located in Region 1.
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COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD .JULY 28, 2011
Mr. Carroll stated the purpose for establishing CalWARN is to provide its
members with:
• A standard omnibus mutual assistance agreement and process for
sharing emergency resources among members.
• A mutual assistance program consistent with other statewide mutual
aid programs and the Standardized Emergency Management
Systems (SEMS) and the National Incident Management System
(NIMS).
• The resources to respond and recover more quickly from a disaster.
• The resources to respond and recover more quickly from a disaster.
• New ideas from lessons learned from disasters.
Mr. Carroll explained if a catastrophic disaster occurred the District would
depend on the Water Emergency Response Organization of Orange County
(WEROC) to help coordinate mutual aid assistance, but if many agencies in
Orange County are impacted by the same disaster mutual aid from Orange
County agencies may be difficult to attain. The benefit from being a member
of CalWARN is that mutual aid is available from statewide agencies.
is Mr. Carroll presented a standard agreement all members must agree to. It
describes the procedures for requesting mutual aid and most importantly it
describes the reimbursable expenses and who is responsible for paying the
reimbursements which is the member requesting the mutual aid.
Mr. Carroll stated there is no cost to join CalWARN as it is supported by
volunteers from members across the state. However, if CMSD makes a
mutual aid request from CalWARN, expenses incurred by the responding
agencies must be reimbursed by CMSD.
Director Perry moved to adopt CMSD Resolution No. 2011 -801, approving
the California Water/Wastewater Agency Response Network (CalWARN)
2007 Omnibus Mutual Assistance Agreement. Director Ferryman seconded
the motion. Motion carried 4 -0.
VOLUNTEER PROGRAM FOR LITTER REMOVAL
Director Perry brought up the subject of "Litter Removal" for discussion.
President Ooten suggested Staff investigate the possibility of a volunteer
program for litter removal.
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COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
LOCKABLE CONTAINERS
Mr. Carroll stated, in an effort to reduce residential reports of scavenging and
to protect the privacy of residents, the Costa Mesa Police Department,
CMSD and CR &R Waste Services formed a partnership resulting in
improved communication and increased awareness of problem areas. Two
elements of the anti - scavenging campaign are the implementation of
lockable trash containers and stringent enforcement of the CMSD anti -
scavenging Ordinance 27.
The District ordered 120 lockable trash containers to protect discards and
valuable recyclables from scavengers and to improve the cleanliness of the
streets. The availability of locking bins was advertised in the CMSD
newsletter, the website and on Channel 24 and the District received 128
applications for the new containers. Residents wishing to participate in the
program will have one of their 60 gallon carts exchanged and will have a key
to lock the cart on their service day or whenever the cart is in public view and
not in use. The pull of gravity opens the lid once the automatic trash truck
lifts the cart to dump it.
. Mr. Carroll recommends the Board approve an expansion of the anti-
scavenging program to afford more residents the opportunity to benefit from
the security of a lockable trash container. Under his authority the General
Manager will transfer funds in the amount of $10,000 from the Capital Outlay
to the Scavenging Program account. The $10,000 transfer will allow for the
purchase of 120 additional lockable trash containers. President Ooten
suggested the program be placed on the website.
Discussion was held on the expanding the District program. Director.
Scheafer moved to authorize a limit of $10,000 for 120 lockable containers.
Director Perry seconded the motion.
SPOKESPERSON FOR THE DISTRICT
Director Perry requested this item be placed on the agenda for discussion.
Concern for Board members giving statements to the press was expressed.
The Board gave direction for the General Manager or the President to handle
communications with the press; however, if a Staff person responsible for the
particular program is contacted, it is appropriate for that person to respond.
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COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
UPCOMING CAR PURCHASE
Director Perry stated he requested this item be placed on the agenda and
suggested the District look into purchasing a vehicle from the City of Costa
Mesa as they have an excess of vehicles. General Manager Carroll stated a
purchase had not been made and he was looking into an electric vehicle in a
step toward purchasing an alternative fuel vehicle. The vehicle the District
was looking into is an electric plug -in vehicle and also uses gasoline. The
vehicle gets about 40 miles per gallon on a fully- charged battery. The life -
span of the vehicle is 10 -12 years. The Directors agreed the District should
go "green" in their purchases where possible. The purchase of the electric
vehicle is in the budget for 2011 -12 and direction from the Board is to go
ahead with the purchase of an electric vehicle.
RECYCLING COMMITTEE
The July 25, 2011 Recycling Committee meeting was cancelled.
Vice President Ferryman requested another Director take his place for the
August 22, 2011 meeting. Director Perry will switch dates with Vice
President Ferryman and President Ooten will chair the meeting as Director
Fitzpatrick will be at the SWANA Conference.
ENGINEER'S REPORTS
Project #185 System Wide Sewer Reconstruction — Phase 1
Bid Opening & Recommendation for Award of Construction Contract
Mr. Hamers reported on the bid opening results for Project #185 for the first
phase of reconstructing the Grade 5 deficiencies in the District's sewer
system. Mr. Hamers recommended the Board of Directors award a contract
to the lowest responsible bidder, Sancon Engineering, Inc. of Huntington
Beach, in the amount of $455,683.00 and approve a contingency budget of
$45,568. Director Ferryman moved to award a contract to Sancon
Engineering, Inc., in the amount of $455,683.00. Director Perry seconded
the motion. Motion carried 4 -0.
Contract Administration /Inspection Services for Project #185
System Wide Sewer Reconstruction Phase 1
In addition to the construction contract, the District is required to contract out
• for the contract administration /inspection services to successfully administer
the project. Staff obtained three informal written quotes from qualified
engineering firms for contract administration /inspection services. The quotes
obtained were:
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COSTA MESA SANITARY DISTRICT PAGE 8
M114UTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
Robin B. Hamers & Associates, Inc. $24,003
Dudek $47,700
Lee & Ro, Inc. $51,948
Mr. Carroll reported he reviewed the quotes and based on his purchasing
authority awarded the contract to Robin B. Hamers & Associates, Inc. for an
amount not to exceed $24,003. Director Perry moved to approve the award
of the Contract Administration /Inspection Services for Project #185 System
Wide Sewer Reconstruction Phase 1 to Robin B. Hamers & Associates, Inc.
Director Scheafer seconded the motion. Motion carried 4 -0.
SEWER SYSTEM COMMITTEE
President Ooten and Mr. Hamers reported on the Sewer System Committee
meeting held July 19, 2011.
TREASURER'S REPORTS
INVESTMENT OVERSIGHT COMMITTEE MEETING
Mr. Davis reported on the Investment Committee Meeting held July 28, 2011.
President Ooten and Director Perry were the alternating Directors
participating in the meeting. Mr. Davis presented a review of Investment
Report as of June 30, 2011.
CMSD RESOLUTION NO. 2011 -802 - INVESTMENT POLICY FOR FISCAL YEAR
2011 -12
Mr. Davis presented the Investment Policy for Fiscal Year 2011 -12. Director
Perry motioned to adopt CMSD Resolution No. 2011 -802. Director
Ferryman moved to second the motion. Motion carried 4 -0.
ATTORNEY'S REPORTS
Mr. Colin Burns stated he had nothing to report.
CLERK OF THE DISTRICT REPORTS
ASSIGNMENT OF DIRECTORS TO COMMITTEES
Ms. Revak stated this report addresses the assignment of Directors and
alternates to various CMSD Committees, as directed by the Board of
is Directors at the June 23, 2011 regular Board meeting, and advised:
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COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
The CMSD Recycling Committee Chairman is currently Director Fitzpatrick
who attends every meeting and a second Director attends on a rotating
basis.
CMSD Sewer System Committee members are currently President.Ooten
and Vice President Ferryman.
CMSD Sewer System Sub - Committee members are currently President
Ooten and Director Perry.
CMSD Investment Oversight Committee is attended by two Directors at the
quarterly meeting on a rotating basis.
The quarterly City /Districts Liaison Committee is attended by President
Ooten and one other Director on a rotating basis.
Director Ferryman nominated Director Perry as an Alternate for the Sewer
System Committee. Director Scheafer seconded the motion. Motion carried
4 -0.
. President Ooten nominated Director Scheafer as an Alternate to the Sewer
System Sub - Committee. Director Perry seconded the motion. Motion
carried 4 -0.
Director Scheafer asked for confirmation that any Director can attend a
meeting but may not speak or comment at such a meeting. This was
confirmed by Attorney Colin Burns.
Director Perry moved to reaffirm the appointments and alternates to the
committees and approve all assignments. Director Scheafer seconded the
motion. Motion carried 4 -0.
To keep track of Directors serving on a rotating basis, the Clerk of the
Board will maintain a list of Directors assigned to the Committees and the
list will be provided to the Board on a monthly basis. Ms. Revak provided a
sample list for the Investment Oversight and City /Districts Liaison
Committees.
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
Director Ferryman reported on the OCSD meeting held on July 27, 2011.
Discussion was held on OCSD negotiating with Administrative Committees
on changes to retirement system. A closed session was held on dismissal of
two employees.
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COSTA MESA SANITARY DISTRICT PAGE 10
MIJVUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 28, 2011
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry reported the Santa Ana River Flood Protection Agency
meeting was cancelled this month.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) .
A report on the ISDOC Quarterly Meeting and Luncheon held on Thursday,
June 30, 2011 was provided by attendees, Vice President Ferryman and
General Manager Scott Carroll. Director Ooten was appointed to the ISDOC
Executive Committee. The next ISDOC Quarterly meeting is scheduled for
September 29, 2011.
CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA)
Ms. Revak reported the CASA 56th Annual Conference is being held August
10 -13, 2011 in San Diego, and requested names of those planning to attend
so that hotel reservations can be made. All Board members plan to attend
the CASA conference and Ms. Revak will make the reservations.
• CITY DISTRICTS LIAISON COMMITTEE)
The City- Districts Liaison Committee met on August 29, 2011 at Mesa
Consolidated Water District. Committee members attending were President
Ooten and Director Perry and General Manager Carroll.
MUNICIPAL WATER DISTRICT OF ORANGE COUNTY
Director Scheafer attended the Water Policy Forum and Dinner on July 21,
2011. The keynote speaker was Dr. Jerry Meral, Deputy Secretary of the
California Natural Resources Agency who provided an update on the
development of the Bay Delta Conservation Plan (BCDP)
OLD BUSINESS
There was no old business discussed.
NEW BUSINESS
SDRMA 2011 ELECTION
• Ms. Revak presented CMSD Resolution No. 2011 -800 for the Election of
Directors to the Special District Risk Management Authority Board of
Directors. The SDRMA ballot calls for voting for three of the candidates for
the position.
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COSTA MESA SANITARY DISTRICT PAGE 11
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
't HELD JULY 28, 2011
Vice President moved to vote for candidate Mike Scheafer and Director
Perry seconded the motion. Motion carried 4 -0.
LAFCO COSTS FOR 2011 -2012 IN THE AMOUNT OF $18,880.76
Director Scheafer moved to approve LAFCO costs for 2011 -2012 in the
amount of $18,880.76. Director Perry seconded the motion. Motion carried
4 -0.
CSDA 2011 ANNUAL CONFERENCE - OCTOBER 10-13,2011 IN MONTEREY
Ms. Revak reported on the 2011 CSDA Annual Conference being held
October 10 -13, 2011 at the Monterey Marriott Hotel & Monterey Conference
Center and requested approval of Board and Staff members to attend.
All five Directors, Mr. Carroll and Ms. Revak were approved to attend the
conference.
Ms. Revak also reminded the Board the CMSD was accredited as a Special
District Leadership Foundation's District of Distinction in June 2009. This
accreditation is valid for two years at which time it must be reaccredited.
The CMSD Districts of Distinction designation expires on June 30, 2011 and
may be renewed by submitting a renewal application, supporting
documentation and a $250 renewal fee. The Governance Foundations class
will be offered on October 10, 2011 during the CSDA annual conference.
CSDA Executive Director Neil McCormick has generously extended the June
30, 2011 deadline to October 2011.
Directors Ferryman, Scheafer and Fitzpatrick will be required to take the
class at the CSDA Annual Conference on October 10, 2011 in order for
CMSD's accreditation as a District of Distinction to be renewed.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
ADJOURNMENT
President Ooten adjourned the meeting at 6:47 p.m.
(ka,-,
President