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Minutes - Board - 2011-08-25• • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 25, 2011 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on August 25, 2011 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF Director Fitzpatrick led the Pledge of ALLEGIANCE Allegiance. INVOCATION Director Scheafer led the Invocation. ROLL CALL DIRECTORS PRESENT: Robert Ooten, James Ferryman, Mike Scheafer, Jim Fitzpatrick, Art Perry DIRECTORS ABSENT: 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 Dean Ruffridge, CR &R Inc. Ed Burrell, Granicus Scott Williams, Costa Mesa • • is COSTA MESA SANITARY DISTRICT PAGE 2 MINJJTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 ANNOUNCEMENT OF LATE COMMUNICATIONS There were no late communications. Mr. Carroll requested continuation of Item VIII. E. to the regular September 2011 meeting as Ms. Cully is not present to give the report. Mr. Carroll requested to add item X. Engineer's Reports, item A. to the agenda, "Approval of Change Orders for Project No. 189, Rehabilitation of Six Sewers Transferred to CMSD ". Mr. Carroll reported the Contractor rehabilitating the sewer on South Coast Drive is requesting a $300,000 change order due to problems with the soil and action is being requested today so that the Contractor can proceed with the work. Mr. Carroll stated the District received $1.3M from OCSD for the sewer transfer and the contract is $267,300 so the project is under budget Mr. Carroll also stated the Contractor is already working in the street and the District doesn't want to run the risk of damages occurring if the work is halted for a month. Director Perry moved to place this item on the Agenda. Director Ferryman seconded the motion. Motion carried 5 -0. CONSENT CALENDAR REPORTS MINUTE APPROVAL Minutes of Sewer System Committee The Minutes of the Sewer System Committee Meeting — July 19, 2011 Meeting of July 19, 2011 were approved as distributed. Minutes of Regular Board Meeting — July The Minutes of the Regular Board Meeting of 25, 2011 July 25, 2011 were approved as distributed. ENGINEER'S REPORTS Project Status Report Occupancy Report and Payment of $197,124.92 to Costa Mesa Disposal — August 2011 The Project Status Report dated August 2011 was accepted as submitted. The Trash Occupancy Count documented no increase of one unit for the occupancy report for solid waste collection as of August 1, 2011. Therefore, the total for August is 21,531 and the payment of $197,124:92 was ratified. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 Contract Payment of $179,110.43 to CR The contract payment of $178,883.28 to Transfer —July 2011 CR Transfer for recycling services and disposal for the month of July 2011 was ratified as submitted. Contract Payment of $6,730.63 to CR Transfer — Santa Ana Heights /Newport Beach — July 2011 Warrant Register for the month of July 2011 in the amount of $1,176,243.82 Directors Compensation & Reimbursement of Expenses for the month of July 2011. Investment Report for the month of July 2011 Quarterly Budget Reports Budget Transfer for govDelivery Services Budget Transfer for Pump Station Study LJ The contract payment of $6,730.63 to CR Transfer for recycling services and disposal for Santa Ana Heights /Newport Beach for the month of July 2011 was ratified as submitted. Warrant Resolution #CMSD 2012 -2 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 $1,176,243.82. Director Compensation and Expense Reimbursements for the month of June 2011 were approved and ratified as follows: President Ooten: $1,326.00 Vice President Ferryman: $663.00 Director Scheafer: $1,326.00 + $9.43 Director Fitzpatrick: Director Perry: $1,326.00 The Investment Report for the month of July 2011 was approved as submitted. The Quarterly Budget Reports were approved as submitted. The Budget Transfer for govDelivery Services was approved. The Budget Transfer for a Pump Station Study was approved. C] COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 END OF CONSENT CALENDAR Director Ferryman moved to accept the Consent Calendar. Director Perry seconded the motion. Motion carried 5 -0. WRITTEN COMMUNICATIONS There were no written communications. PUBLIC COMMENTS President Ooten invited public comments. There were no public comments GENERAL MANAGER'S REPORTS CALPERS UPDATE Mr. Carroll stated the Board of Directors, on July 28, 2011, adopted the resolution of intention to amend the California Public Retirement System (CaIPERS) retirement formula to 2% @ 60, with retirement benefits based on the average of the thirty -six highest consecutive months of salary providing a second level of • benefits for newly -hired employees. The CalPERS actuarial study, detailing the annual dollar savings, was attached for your information and to provide public notice in accordance with Government Code Section 7507 at the July 28, 2011 Board meeting. The contract amendment could not be completed until 20 days after the adoption of the resolution of intent. Mr. Carroll reported all requirements have been met and the final resolution is available for adoption. Vice President Ferryman moved to adopt Resolution No. CMSD- 2011 -804. Director Scheafer seconded the motion. Motion carried 5 -0. AUDITOR COMMUNICATION REGARDING 2010 -2011 AUDIT Mr. Carroll stated the Board approved. On July 22, 2010, a Professional Services Agreement for Independent Audit services to Diehl Evans & Company, LLP for the total amount of $26,930 for the three fiscal years ending June 30, 2010, 2011 and 2012. Mr. Carroll presented a letter from Diehl Evans & Company, LLP disclosing their responsibilities under U. S. Generally Accepted Auditing Standards and Government Auditing Standards. 0 COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 ON -LINE BOARD MEETINGS Mr. Carroll introduced Mr. Ed Burrell, Software Sales Executive with Granicus, who gave a graphic presentation on "On -Line Board Meetings" and services offered by Granicus. Mr. Burrell stated the main agenda of the company is to serve government and provide transparency and workflow efficiency with regard to agendas and meetings. A question /answer period was held. The initial cost to the District would be $7,212 with a monthly cost of approximately $1,280.00. The Board requested information on special districts currently utilizing the services of Granicus. President Ooten requested Granicus provide the CMSD with information on increased public participation as a result of using their tools. President Ooten stated the subject could be a strategic planning item. Staff was directed to obtain more information and report back to the Board. ASSEMBLY BILL 741 Mr. Carroll presented a review of Assembly Bill 741. The Bill provides new flexibility to wastewater agencies and options for willing property owners to finance sewer improvements, which if left unrepaired, would lead to groundwater contamination and result in abatement orders for the agencies to clean up. The legislation • authorizes public agencies to offer voluntary liens to property owners to finance septic and sewer improvements. The legislation that was just signed into law by the Governor expands the existing authorization under Section 5898 of the Streets and Highways Code, which currently allows public agencies to enter into contractual assessments with property owners to finance specific improvements. The expansion of the Streets -and Highway Code will include the costs to private property owners associated with conversion from septic systems to sanitary sewer systems and with the replacement of aging private sewer laterals that are already served by a community sewer system. Under the contractual assessments, property owners within a designated area would choose to assess themselves for the cost of designated on -site facilities — in this case sewer conversions and private sewer lateral replacements. The local government would then provide the up -front funds for the project, and the property owners would pay an annual assessment until those funds, plus interest, are repaid. The underlying purpose of the authority is to create a means by which the following can occur: • Projects on private property that provide both a public and private benefit can be financed without imposing costs on property owners in other parts of the service area. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 • ■ Property owners, in agreement with the local agency, can voluntarily finance costly but necessary sewer conversion and lateral replacement improvements on their property over time. The costs to customers of converting their septic systems to a community sewer system, or for replacing aging sewer laterals, are often prohibitive, costing $2,000 to $14,000 for septic conversions and $3,000 to $12,000 for laterals. If pumps or pump replacements are needed, this can be an additional $10,000. Sewer conversions costs may include, but are not limited to, the clean -up and removal or abandonment of the septic system as well as costs of building the facilities needed to connect to the community sewer system laterals, grinder pumps, etc. Over time, septic systems and private sewer laterals can become damaged and blocked, leading to leaking of wastewater into the ground, potentially threatening water quality and public health and safety. Additionally, damaged laterals can contribute to sewage blockages and backups in the public system. Providing additional options for the financing these important projects is vital to water quality and public health protection in our communities. The District's Sewer Lateral Assistance Program offers a reimbursement program of . up to $1,800 for sewer lateral improvements; however this program is not enough for lateral replacement and /or converting septic systems to the District's sewer system. Staff believes there are still eleven (11) private septic systems within the District. The passage of this legislation will give District property owners another tool to improve their sanitary system and assist the District in avoiding SSOs. Staff was directed to investigate the matter as it pertains to the District. AIR NATIONAL GUARD PROPERTY, 2651 NEWPORT BOULEVARD Mr. Carroll reported the Air National Guard wants to unload the property at 2651 Newport Boulevard. The City of Costa Mesa is unable to participate in an exchange authority program. Mr. Carroll suggested the District express an interest to the Government Services Administration (GSA). Mr. Carroll recommended authorizing him to send a letter of interest to the Air National Guard. Mr. Burns stated the item as stated on the agenda is for an oral report with no action being taken. Mr. Carroll will obtain more information on the subject and report back to the Board. • COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 • RECYCLING COMMITTEE The Recycling Committee meeting met on August 22, 2011. President Ooten and Director Perry attended and gave a report on the meeting. Items discussed were the lockable containers and the large item collection program. Ms. Revak will provide a final report on the 2011 large item collection program at the next Recycling Committee meeting. The subject of combining the Recycling Committee and the Sewer System Committee and holding an additional Board meeting each month to cover these topics was discussed. Director Ooten suggested the topic be deferred to the Strategic Planning meeting. ENGINEER'S REPORTS APPROVAL OF CHANGE ORDERS FOR PROJECT NO. 129, REHABILITATION OF SIX SEWERS TRANSFERRED TO CMSD Mr. Hamers reported on the situation at South Coast Drive and stated the job • needs to be shut down or extra work awarded to the Contractor. Mr. Hamers recommended authorizing the General Manager to award extra work to the Contractor and stated it is an emergency situation. The cost is approximately $300,000. The Orange County Sanitation District gave the CMSD $1.3M to cover any costs incurred in the rehabilitation of the six sewers transferred to the CMSD. Director Ferryman moved to authorize the General Manager to approve up to $300,000 on the project and authorize the General Manager to shut the job down if necessary. Director Scheafer seconded the motion. Motion carried 5 -0. SEWER SYSTEM COMMITTEE President Ooten and Director Perry reported on the Sewer System Committee meeting held August 16, 2011. Mr. Hamers stated he believes the District should get a new estimate of the District's sewer population and suggested going to the Census Staff in Fullerton for a correct number of the District's sewer population. Director Scheafer reported he observed the sewer crew cleaning the Elden pump station and was very impressed by staff's adherence to safety measures and how well they work together. i COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 TREASURER'S REPORTS IMPACT OF DOWNGRADE OF U. S. CREDIT RATING Mr. Davis reported on the impact of Standard & Poor's (S &P) downgrading the credit rating of the United States government from AAA to AA +. Mr. Davis stated the downgrade of the U. S. government credit rating marks the first time in history the credit rating has slipped below AAA. After giving an analysis of the situation, Mr. Davis stated the District will not be impacted by the U. S. downgrade as the District currently has no debt: Virtually all of the District's investments outside of the Local Agency Investment Fund (LAIF) are in federal agency securities (FHLB, FNMA, FHLMC and FFCB). ATTORNEY'S REPORTS Mr. Burns stated he had nothing to report. CLERK OF THE DISTRICT REPORTS RESOLUTION NO. 2011 -803, ORDERING THAT ORDINANCE NO. 84 HAS BEEN • PUBLISHED Ms. Revak requested approval of Resolution o. 2011 -803, Ordering that Ordinance No. 84 has been published. Director Perry moved to adopt CMSD Resolution No. 2011 -803. Director Scheafer seconded the motion. Motion carried 5 -0. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) Director Ferryman attended on the OCSD meeting held on August 24, 2011, however, there was nothing of importance to the CMSD to report. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry reported there was not a meeting of the Santa Ana River Flood Protection Agency meeting this month. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) The next ISDOC Quarterly meeting is scheduled for September 29, 2011. • • • • COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 25, 2011 CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) The CASA 56th Annual Conference was held August 10 -13, 2011 in San Diego. All five members of the Board and Mr. Carroll attended the meeting and a report was given. Director Scheafer suggested a meeting of the Board with Attorney Alan Burns to discuss conflict of interest issues. SOLID WASTE ASSOCIATION OF NORTH AMERICA (SWANA) Directors Scheafer and Fitzpatrick and Clerk of the District Joan Revak attended the SWANA Annual Conference in Nashville, Tennessee where the District was awarded the bronze public education award for its school telephone book recycling program. A report on the conference was presented by the attendees. Director Ferryman reported, on August 25, 2011, he and Mr. Carroll attended a meeting at Orange County Water District where U. S. Senator Dianne Feinstein gave a Washington Report. Director Ferryman expressed how impressed he was with the Senator. OLD BUSINESS There was no old business discussed. NEW BUSINESS There was no new business discussed. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Mr. Scott Williams, Costa Mesa resident, raised questions about the District's pension and health care benefits. Director Ferryman informed Mr. Williams if he has questions regarding the Costa Mesa Sanitary District he should submit a public records request. ADJOURNMENT President Ooten adjourned the meeting at 8:15 p.m. Sec': �ry -M (k-'t President