Minutes - Board - 2011-10-270
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 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
August 25, 2011 at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
Director Fitzpatrick 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; Sherry Kallab,
Administrative Manager; Marc Davis,
Treasurer; Teresa Gonzalez, Accounting
Manager; AJ Cully, Management Analyst
OTHERS PRESENT Dean Ruffridge, CR &R
ANNOUNCEMENT OF LATE COMMUNICATIONS
Ms. Revak provided a revised copy of Director Fitzpatrick's August expense reimbursement
• form and a revised copy of Director Perry's October 2011 expense reimbursement form for
October 11 and 12, 2011 expenses at the CSDA Conference in Monterey.
•
r�
U
•
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
CONSENT CALENDAR
REPORTS
MINUTE APPROVAL
Minutes of Sewer System Committee The Minutes of the Sewer System Committee
Meeting — September 13, 2011 Meeting of September 13, 2011 were
approved as distributed.
Minutes of Recycling Committee Meeting
— September 19, 2011
Minutes of Regular Board Meeting —
September 22, 2011
ENGINEER'S REPORTS
Project Status Report
Occupancy Report and Payment of
$197,143.23 to Costa Mesa Disposal —
October 2011
The Minutes of the Recycling Committee
Meeting of September 19, 2011 were
approved as distributed.
The Minutes of the Regular Board Meeting of
September 22, 2011 were approved as
distributed.
The Project Status Report dated October
2011 was accepted as submitted.
The Trash Occupancy Count documented an
increase of one unit for the occupancy report
for solid waste collection as of October 1,
2011. Therefore, the total for October is
21,533 and the payment of $197,143.23 was
ratified.
Contract Payment of $160,599.28 to CR The contract payment of $160,599.28 to
Transfer — September 2011 CR Transfer for recycling services and
disposal for the month of September 2011
was ratified as submitted.
Contract Payment of $8,981.85 The contract payment of $8,981.85 to CR
to CR Transfer — Santa Ana Transfer for recycling services and disposal for
Heights /Newport Beach — September Santa Ana Heights /Newport Beach for the
2011 month of September 2011 was ratified as
submitted.
•
•
COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
Warrant Register for the month of
September 2011 in the amount of
$794,282.08.
Directors Compensation &
Reimbursement of Expenses for the
month of September 2011.
Investment Report for the month of
September 2011.
Quarterly Budget Report (July —
September 2011.
PAGE 3
Warrant Resolution #CMSD 2012 -4 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 $794,282.08.
Director Compensation and Expense
Reimbursements for the month of September
2011 were approved and ratified as follows:
President Ooten: $1,326.00 + $971.12
Vice President Ferryman: $1,326.00 + $4.44
Director Scheafer: $1,326.00 + $1,182.67
Director Fitzpatrick: $1,326.00 + $855.64
Director Perry: $1,326.00 + $1,093.53
For the Month of July:
Director Fitzpatrick: $1,105.00
For the Month of August 2011
Director Fitzpatrick: $1,326.00
The Investment Report for the month of
September 2011 was approved as
submitted.
The Quarterly Budget Report for July —
September 2011 was approved as
submitted.
END OF CONSENT CALENDAR
Director Ferryman moved to accept the Consent Calendar with the corrected
expense reimbursement forms for Directors Perry and Fitzpatrick. Director
Scheafer 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.
0
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
GENERAL MANAGER'S REPORTS
STRATEGIC PLAN PROGRESS REPORT - 2011 -12 - 1ST QUARTER
Mr. Carroll presented a quarterly progress report on the District's Strategic Plan.
BOARD OF DIRECTORS' HEALTH BENEFITS
Mr. Carroll reported on his research on health benefits for the CMSD Board of
Directors. Under the Public Employees' Medical and Hospital Care Act ( PEMHCA),
government agencies are required to pay a portion of public employees and elected
officials health premiums. PEMHCA specifically states: "In order to participate,
public agencies must agree to the regulations covering provisions of the benefits
under PEMCHA. A key consideration is that the employer must agree to provide
access to the health benefits to both active employees and annuitants on an equal
basis. This means the employer is required to make specified and equal
contributions towards premium costs for active employees and annuitants. The
contribution levels are set in statute."
Mr. Carroll further stated, the District covers more than the minimum for Staff due to
• the Cafeteria Plan allowance of $799 to $1199 per month. If the Board desires to
participate in the District's health plan, the District must make the minimum
contribution. The minimum contribution amount is adjusted annually to reflect any
change in the medical care component of the CPI. The minimum employer
contribution for 2011 was $108. In January 2011 the annual percentage change in
the CPI medical care component was 3.4 %, so the minimum contribution rate for
2012 will be $112.00.
Director Scheafer requested Staff to inquire on directors' health benefits at Mesa
Consolidated Water District and other districts in the county.
Mr. Carroll advised the Board if they wish to proceed by participating in the District's
health plan, a resolution must be adopted by the Board in which Staff will present
for approval consideration at the regular November 2011 meeting. The Board
requested Staff to bring back the results of a health care benefits survey and a
resolution for Board approval.
FIRST AMENDMENT TO AGREEMENT - CR &R, INC.
Mr. Carroll stated the Board of Directors recently approved revising the District's
Large Item Collection Program by discontinuing the summer event and replacing it
by allowing residents to call in for three large item collections at any time throughout
the calendar year with up to ten items at each pickup. CR &R has agreed to pay the
District an annual payment for the salvage value of metallic and white goods
collected in 2008, 2009 and 2010 of the program, which totals $17,171. The value
for the last ten years averaged $9,537 per year.
•
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
Mr. Carroll presented an amendment to the CR &R Agreement changing the scope
of work for large item collections and also changes the delivery charge for
additional containers. Currently, if a resident requests an additional container, a
delivery charge of $55 to $70 (depending on container size) is applied. The
Contract amendment stipulates that a delivery charge will not be applied for
additional and /or new and /or replacement containers. A rate of $8 per month will
still apply for a third or more containers.
Director Perry moved to approve the first amendment to the CR &R, Inc. agreement.
Director Ferryman seconded the motion. Motion carried 5 -0.
CAPITAL IMPROVEMENT PROJECTS CARRYOVER REQUEST
Mr. Carroll presented a capital improvement project (CIP) budget for consideration.
Mr. Carroll stated the nature of capital improvement projects is such that their scope
and size inherently precludes them from being completed within the fiscal year in
which funding was initially appropriated. Additionally, Mr. Carroll explained all
appropriations lapse at the end of each year. It is, therefore, necessary to request
the unspent capital improvement project appropriations be carried over in the
subsequent fiscal year. Director Perry moved to approve the carryover of capital
• improvement project appropriations in the amount of $2,996,756 from fiscal year
2010 -2011. Director Scheafer seconded the motion. Motion carried 5 -0.
REAPPROPRIATION OF FUNDS FROM FY- 2010 -11 To FY- 2011 -2012
Mr. Carroll reported several District projects were not completed in the last fiscal
year and all appropriations lapse at the end of each year. It is, therefore, necessary
to request the unspent budget appropriations be carried over into Fiscal Year 2011-
12. Staff recommended the Board approve expenditure carryovers as follows:
$33,100 for the balance of the fire damaged equipment to be replaced.
$6,720 for consulting services for the completion of the Records Management
System.
$32,100 for purchase of equipment for the Records Management System
$97,675 for unspent AB939 grant funds.
Additionally, Staff recommended the Board approve the following revenue
carryovers:
$449,643 to be received from the Orange County Development Agency upon
completion of Project #129 Bristol Street and
$97,675 of AB939 recycling grant revenue to be received for the joint agency
• agreement to provide compost bins and presentations to schools and the
community.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
•
Director Scheafer moved to approve the budget adjustment. Director Perry
seconded the motion. Motion carried 5 -0.
CATALOG CHOICE - PREVENT UNWANTED JUNK MAIL
Ms. Cully reported on "Catalog Choice ", a firm that deals with unwanted junk mail.
The company developed an innovative online service allowing residents to reduce
the amount of unwanted junk mail delivered to their homes. Catalog Choice is the
largest independent mail preference registry in the United States, servicing over 1.4
million households. Discussion was held on the topic. Vice President Ferryman
moved to give direction to formulate a junk mail management program for CMSD
residents. Director Perry seconded the motion. Motion carried 5 -0.
RESCHEDULE NOVEMBER 17, 2011 REGULAR BOARD MEETING
Mr. Carroll reported on a nomination the District submitted to the Orange County
Business Council. On November 17, 2011 OCBC is hosting a reception at Mastro's
Steakhouse in Costa Mesa honoring all nominees and presentation of awards to
the top six programs. November 17, 2011 is the date of the regular CMSD Board of
Directors meeting and Mr. Carroll questioned the Board on their preference of re-
scheduling the regular meeting. Director Scheafer moved to change the November
regular meeting date to Wednesday, November 30, 2011 at 5:30 p.m. Director
Ferryman seconded the motion. Motion carried 5 -0.
EARLY CLOSING ON NOVEMBER 23, 2011, DECEMBER 23, 2011 AND DECEMBER 30,
2011
Mr. Carroll requested the Board consider closing the District office at noon on
November 23, 2011, December 23, 2011 and December 30, 2011, as has been the
tradition in the past. Director Ferryman moved to approve closing the District office
at noon on November 23, 2011, December 23, 2011 and December 30, 2011.
Director Scheafer seconded the motion. Motion carried 5 -0.
RECYCLING COMMITTEE
The Recycling Committee meeting met on October 18, 2011. Director Fitzpatrick
and President Ooten attended and gave a report on the meeting.
A discussion on Zero Waste and developing key objectives within control and
influence of the CMSD was discussed.
A variable refuse rate was discussed and the possibility of establishing a variable
• rate system for refuse.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
•
ENGINEER'S REPORTS
Mr. Hamers stated he had nothing to report.
SEWER SYSTEM COMMITTEE
President Ooten reported on the Sewer System Committee meeting held on
September 13, 2011
An update on all CMSD projects was provided.
TREASURER'S REPORTS
INVESTMENT OVERSIGHT COMMITTEE MEETING - OCTOBER 27, 2011
Mr. Davis reported on the Investment Oversight Committee meeting held at
5:00 p.m. this date. A discussion was held on the necessity for continuing the
Committee that was initially formed at the time of the Orange County bankruptcy.
The Board agreed to discontinue the Committee and receive quarterly reports from
Staff on investments.
ATTORNEY'S REPORTS
STANDING COMMITTEES
Mr. Burns presented CMSD Resolution No. 2011 -805, Establishing Standing
Committees. As discussed at the Investment Oversight Committee meeting the
Board reviewed the necessity of the Investment Oversight Committee.
Mr. Burns stated four standing meetings have been identified and the Resolution
was drafted to clarify the various Committees. Mr. Davis stated the Board annually
discusses and votes on the investment policy. Vice President Ferryman moved to
eliminate the Investment Oversight Committee. Director Fitzpatrick seconded the
motion. Motion carried 5 -0.
Mr. Burns will revise the proposed Resolution to eliminate the Investment Oversight
Committee and bring the Resolution to the November regular Board of Directors
meeting.
CLERK OF THE DISTRICT REPORTS
Ms. Revak stated she had nothing to report.
0
COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
•
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
PAGE 8
Director Ferryman attended the OCSD meeting held on October 26, 2011,
and gave a brief report.
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry reported the Santa Ana River Flood Protection Agency did not
hold a meeting this month.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC)
The ISDOC Quarterly meeting was held on September 29, 2011. President
Ooten reported discussion was held on OCCOG and fees.
CALIFORNIA SPECIAL DISTRICT ASSOCIATION CONFERENCE - OCTOBER 10 -13
2011
Reports were given by Board members on the CSDA Annual Conference
held in Monterey October 10 -13, 2011. Director Scheafer reported on the
Governance class he and Vice President Ferryman attended.
CITY OF COSTA MESA, MESA CONSOLIDATED WATER DISTRICT AND COSTA MESA
SANITARY DISTRICT LIAISON COMMITTEE MEETING - OCTOBER 14, 2011
Reports were given by Directors who attended the Liaison Committee
meeting held at CMSD headquarters on October 14, 2011.
OLD BUSINESS
There was no old business discussed.
NEW BUSINESS
There was no new business discussed.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Director Perry requested the item "Incompatibility of Office" be placed on the
November 2011 agenda.
•
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 27, 2011
•
ADJOURNMENT
President Oaten ad 0urned the meeting at 7:49 p.m.
oon
',Secreta President
•