Minutes - Board - 2009-02-26•
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
FEBRUARY 26, 2009
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
February 26, 2009, at 5:30 p.m. at 628 W.
19th Street, Costa Mesa.
Vice President Ooten called the meeting
to order at 5:30 p.m.
PLEDGE OF ALLEGIANCE Director Monahan led the Pledge of
Allegiance.
INVOCATION Mr. Fauth gave the invocation.
ROLL CALL DIRECTORS PRESENT: Art Perry, Arlene Schafer, Bob Ooten
James Ferryman, Gary Monahan
DIRECTORS ABSENT None.
STAFF PRESENT: Robin B. Hamers, Manager /District
Engineer; Alan Burns, Legal Counsel;
Tom Fauth, Assistant Manager; Joan
Revak, Board Secretary/Program
Manager /Clerk of the District; Marc Davis,
Treasurer; Teresa Gonzales, Accountant;
Sherry Kallab, Management Analyst;
Denise Gilbert, Public Outreach
Coordinator; Debbie Bjornson, Permit
Processing Specialist; Janel Jackson,
Office Specialist II; Kaitlin Tran,
Accounting Specialist I; Karl Dulake,
Maintenance Supervisor; Ron Shef,
Ordinance Enforcement Officer
0 OTHERS PRESENT: None
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Minutes of CMSD Regular Meeting — February 26, 2009
CONSENT CALENDAR
Page 2
Director Monahan motioned to approve the Consent Calendar. Director Perry
seconded. Motion carried 4 -0. (President Schafer not yet in attendance.)
REPORTS
MINUTE APPROVAL
Minutes of Sewer System The Minutes of the Sewer System Committee
Committee Meeting -- Meeting of January 14, 2009, were approved as
January 14, 2009 distributed.
Minutes of Recycling The Minutes of the Recycling Committee Meeting
Committee Meeting -- of January 20, 2009, were approved as distributed.
January 20, 2009
Minutes of Special The Minutes of the Special Meeting of January 26,
Meeting — January 26, 2009, were approved as distributed.
2009
Minutes of Regular The Minutes of the Regular Meeting of January 28,
Meeting -- January 2009, were approved as distributed.
28, 2009
MANAGER'S REPORTS
REFUNDS There were no refunds for the month of February
2009.
Monthly Spill Report to The Monthly Spill Report to the State Water
State Water Resources Resources Control Board (SWRCB) for February
Control Board 2009 was accepted as submitted.
Waste Diversion Report The Waste Diversion Report dated February 2009
was accepted as submitted.
Contract Payment of The contract payment of $162,052.24 to CR
. $162,052.24 to CR Transfer for recycling services and disposal for the
Transfer — February 2009 month of January was ratified as submitted.
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Minutes of CMSD Regular Meeting — February 26, 2009
Contract Payment of
$8,147.37 to CR Transfer
— Santa Ana Heights/
Newport Beach — January
2009
Ordinance Enforcement
Officer's Report
ENGINEER'S REPORTS
Project Status Report
TREASURER'S REPORTS
Financial Report as of
January 31, 2009
Treasurer's Report as of
January 31, 2009
Page 3
The contract payment of $8,147.37 to CR Transfer
for recycling services and disposal for Santa Ana
Heights /Newport Beach for the month of January
2009 was ratified as submitted.
The Ordinance Enforcement Officer's Report dated
February 15, 2009 was accepted as submitted.
The Project Status Report dated February 2009
was accepted as submitted.
The Financial Report as of January 31, 2009 was
accepted as submitted.
The Treasurer's Report as of January 31, 2009
was accepted as submitted.
Warrant 2009 -08 for Warrant Resolution #CMSD 2009 -08 was
January 2009 in the approved, authorizing the President and Secretary
amount of $819,771.34 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
$819,771.34.
Directors Expenses for the Director Compensation and Expense
Month of January 2009 Reimbursements for the Month of January 2009
were approved and ratified as follows:
President Schafer: $1,326.00 + $236.50
Vice President Ooten: $1,326.00 + $179.06
Director Perry: $1,105.00
Director Ferryman: $1,326.00 + $8.25
Director Monahan: $663.00
END OF CONSENT CALENDAR
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 4
• WRITTEN COMMUNICATION
Mr. Hamers presented a written communication from John Pastore requesting CMSD to
join SCAP following a free one -year membership. Mr. Hamers recommended not
joining due to CMSD's memberships in other similar organizations.
Director motioned to deny the request to continue the membership. Director Ferryman
seconded. Motion carried 4 -0. (President Schafer not yet in attendance.)
Ms. Revak stated she would send a letter to SCAP declining the membership offer.
Ms. Revak presented CMSD's ad placed in the Costa Mesa Community News &
Recreation Review, March — June 2009.
PUBLIC COMMENTS
There were no public comments made.
President Schafer arrived at 5:48 p.m.
0 MANAGER'S REPORTS
DISTRICT YARD — 174 W. WILSON STREET — CMSD #187
UPDATE ON CONTRACTOR SELECTION PROCESS
Mr. Hamers reported the contractor selection process is underway.
Mr. Fauth reported on February 12, 2009 Staff opened the following bids: DPR, $2.4
million; Wright, $2.1 million; and Oltmans, $1.9 million.
Mr. Hamers informed the Board the three contractors were selected for bidding due to
the design team's conclusion the contractors have the ability to properly construct the
building and improvements in accordance with the LEED provisions and proceeding
with other bidders may jeopardize achieving the LEED accreditation. Director Monahan
stated his preference for using a well- experienced contractor for the project.
Mr. Hamers recommended two Board Directors attend a design team meeting to
discuss bid information from Wright. Vice President Ooten and Director Ferryman will
attend the meeting.
• Director Monahan inquired as to background checks and other projects completed by
Wright, DPR and Oltmans.
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 5
Vice President Ooten suggested taking the fuel tank out of the project to reduce costs.
Mr. Burns stated CMSD is not treating this as a public works bidding project because it
is non -sewer work.
President Schafer suggested the issue be discussed further at next month's meeting.
Directors Ooten and Ferryman will meet with the design team to further discuss the bids
and avenues to reduce costs.
STRTEGIC PLANNING FOR 2009-2010
Ms. Revak reported the Strategic Planning interviews with each of the Directors and
staff personnel are scheduled.
GRANT RESEARCH
Ms. Kallab reported the District Yard Project has been added to the State Water
Resources Control Board's list of "shovel ready" projects to be reviewed for possible
grant funds from the Economic Stimulus Bill. Ms. Kallab reported Staff is in the process
of filling out the financial assistance application form for the project.
Ms. Kallab also submitted applications for the SCADA Preliminary Update and the Irvine
Pump Station Force Main Rehab with the State Water Resource Control Board.
Ms. Kallab reported being in contact with the project managers.
CITY COUNCIL STUDY SESSION HELD ON FEBRUARY 10, 2009
Mr. Hamers reported attending the City Council Study Session held on February 10,
2009 with Mr. Fauth and Ms. Jackson and Mr. Fauth gave a Power Point presentation
on the Sewer Lateral Assistance Program and Staff answered questions.
Director Monahan reported several issues were discussed including tree root policies
and the status of the City /District MOU. Mr. Burns reported being in contact with Mr.
Hamers regarding the MOU. Mr. Burns will be drafting a letter to the City Attorney to
accompany the MOU.
SEWER SYSTEM COMMITTEE
REPORT ON MEETING HELD ON FEBRUARY 10, 2009
Director Monahan reported the Sewer System Committee met on February 10, 2009
• and gave a brief overview and update of the meeting.
Minutes of CMSD Regular Meeting — February 26, 2009 Page 6
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TRANSFER OF SEWERS FROM OCSD TO CMSD
Director Monahan reported no new information regarding the Transfer of Sewers from
OCSD to CMSD.
PROJECT #186 SEWER LATERAL ASSISTANCE PROGRAM
Director Monahan reported no new information regarding the Project #186 Sewer
Lateral Assistance Program. Mr. Hamers reported Ms. Jackson is doing an excellent
job with the program.
SPECIAL DISTRICTS LEADERSHIP FOUNDATION (SDLF)
Mr. Hamers reported dates are being considered regarding his attendance at a
governance class.
JOINT MEETING WITH MIDWAY CITY SANITARY DISTRICT HELD FEBRUARY 19,
2009
The Board of Directors of the Costa Mesa Sanitary District met with Midway City
Sanitary District on February 19, 2009. Ms. Revak reported the Minutes outlining
exchanged information between the two entities will be placed on next month's agenda
for approval.
RECYCLING COMMITTEE — MONDAY, FEBRUARY 23, 2009 —12:00 P.M., CMSD
BOARDROOM, 628 W. 19TH STREET, COSTA MESA (PRESIDENT SCHAFER AND
VICE PRESIDENT OOTEN)
RECYCLING COMMITTEE GOALS FOR 2009 -2010
Vice President Ooten reported the Recycling Committee Meeting was held on February
23, 2009 in which the goals were reviewed and revisions were requested and will be
incorporated by staff.
2008 SCHOOL TELEPHONE BOOK RECYCLING PROGRAM
Vice President Ooten reported a letter was sent to schools that did not qualify for a
monetary award in the 2008 Telephone Book Recycling Contest. No feedback has
been received from the schools.
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 7
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ORANGE COUNTY WASTE & RECYCLING SUB- REGIONAL MEETINGS AND
GRANT PROGRAM
Vice President Ooten reported on discussions involving making signs for public
awareness regarding locations of facilities that accept E- waste, batteries and bulbs and
placing them in high- traffic locations.
DISPOSAL OF RESIDENTIAL GREASE IN CMSD TRASH COLLECTION
PROGRAM
Mr. Fauth reported being in communication with Mike Carey of the OCC Recycling
Center regarding contractors providing drums for grease disposal at the site at no cost.
Mr. Fauth will provide updates to the Board as they are received.
TOURS OF CR &R AND FRANK L. BOWERMAN LANDFILL
UCI STUDENTS -THURSDAY, MARCH 5, 2009
The Tours of CR &R and Frank L. Bowerman Landfill for UCI students have been
scheduled for March 5, 2009.
MESA CONSOLIDATED WATER DISTRICT GENERAL MANAGER AND DIRECTORS -
THURSDAY, MARCH 12, 2009
The Tours of CR &R and Frank L. Bowerman Landfill for General Manager and Directors
of Mesa Consolidated Water District have been scheduled for March 12, 2009.
SEWER SCIENCE PROGRAM AT TEWINKLE SCHOOL
Vice President Ooten helped teach a Sewer Science Program at TeWinkle School.
Vice President Ooten is in communication with Huntington Beach High School and
Estancia High School for possible programs.
PLASTICS PRESENTATIONS AT TEWINKLE SCHOOL
Vice President Ooten reported due to the number of students attending the Plastics
Presentations and their interaction, a modification to the presentations was made. Vice
President Ooten reported Staff is proposing a Recycling presentation at Paularino
Elementary School.
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Minutes of CMSD Regular Meeting — February 26, 2009
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REPORT ON OTHER CMSD RECYCLING PROGRAMS
There were no reports on other CMSD Recycling Programs.
ENGINEER'S REPORTS
WASTE DISCHARGE REQUIREMENTS (WDR)
Page 8
Mr. Hamers reported hosting a seminar presented by Sancon Engineering, Inc.,
on February 19, 2009 in Garden Grove and gave a brief overview of other WDR
Education Topics.
TREASURER'S REPORTS
MID -YEAR BUDGET REVIEW
Mr. Davis reported the District's Solid Waste and Liquid Waste Funds were reviewed.
Mr. Davis reported the Solid Waste Fund is projected to have a budgetary savings
totaling approximately $637,610.00 and the Liquid Waste Fund is projected to have a
budgetary savings totaling approximately $441,420.00.
The Budget Study Session has been rescheduled for Friday, May 8, 2009 at 11:45 a.m.
2008/2009 THIRD QUARTER REVENUE FROM CR &R
Mr. Davis reported Staff has calculated the amount due to CR &R for Fiscal Year 2007-
08 and the first six months of Fiscal Year 2008 -09 to be approximately $28,200.00. Mr.
Davis reported Staff will process this amount for payment in March 2009.
BUDGET ADJUSTMENT FOR STRATEGIC PLAN
Mr. Davis recommended the Board of Directors approve the Budget Adjustment in the
amount of $14,000.00 to provide adequate funding for completion of the Strategic Plan.
Vice President Ooten motioned for approval of the Budget Adjustment for the Strategic
Plan. Director Perry seconded.
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 9
Motion carried as follows:
Ayes: Schafer, Ooten, Perry, Ferryman
Noes: Monahan
EXERCISE OPTION YEAR #2 FOR AUDIT SERVICES
Mr. Davis recommended the Board of Directors exercise the second option year and
approve an engagement letter with Diehl, Evans & Company, LLP to perform the
District's annual audit for the year ending June 30, 2009 in the amount of $9,970.00,
subject to final approval as to form by the District's Counsel.
INVESTMENT OVERSIGHT COMMITTEE MEETING HELD FEBRUARY 26, 2009
Mr. Davis reported on the Investment Oversight Committee Meeting held on February
26, 2009 in which the review of the Treasurer's Report as of January 31, 2008 and the
Audit Services Contract Option were discussed.
• ATTORNEY'S REPORT
COST ACCOUNTING METHOD OF CONSTRUCTION
Mr. Burns reported Staff will propose an alternative method to bid public works projects,
known as the "Uniform Cost Accounting Method." Mr. Burns presented a memo as an
early alert to the subject before a proposed ordinance is presented.
Mr. Burns reported the benefits to the process allows many projects to be bid from pre-
determined lists and reduces the preparation costs of formal plans and specifications
and also shortens the time to have construction performed.
Mr. Burns reported the disadvantage is the Board gives up some control over projects
and any "force account" work done by District employees has to be accounted for using
the accounting system that forces a government agency to obtain a true comparison of
having employees perform the work versus contract labor.
REVIEW OF CMSD OPERATIONS CODE, ADMINISTRATIVE RULES &
REGULATIONS AND PERSONNEL RULES
Mr. Burns reported on the request to review CMSD's Operations Code, Administrative
• Rules & Regulations and Personnel Rules. Mr. Burns reported on a checklist of minor
things but concluded CMSD is in substantial compliance. Mr. Burns reported CMSD is
eligible for a premium decrease based on his certification.
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 10
Mr. Hamers recommended the Board of Directors accept the certification by legal
counsel subject to his comments. Mr. Burns suggested the verbiage "There are no
material or legal deficiencies that came to our attention."
Director Ferryman motioned for approval of the certification by Legal Counsel with
wording as stated by Mr. Burns. Vice President Ooten seconded. Motion carried 5 -0.
2009/2010 STRATEGIC PLANNING AGREEMENT
Mr. Burns presented a draft letter with attached Agreement for Consultant Services to
be sent to BHI Management Consulting regarding the proposed Costa Mesa Sanitary
District 2009/2010 Strategic Plan.
Mr. Burns recommended the Board of Directors approve the 2009/2010 Strategic
Planning Agreement.
Director Ferryman motioned for approval of the 2009/2010 Strategic Planning
Agreement with BHI Management Consulting. Vice President Ooten seconded.
iMotion carried as follows:
Ayes: Schafer, Ooten, Perry, Ferryman
Noes: Monahan
LICENSE AGREEMENT FOR SHORT TERM USE OF REAL PROPERTY AT 174
WILSON STREET WITH D. M. KISLING CONSTRUCTION
Mr. Burns recommended the Board of Directors ratify the License Agreement for Short
Term Use of Real Property at 174 Wilson Street with D. M. Kisling Construction.
Vice President Ooten motioned to ratify the License Agreement. Director Ferryman
seconded. Motion carried 5 -0.
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 11
• LOCAL MEETINGS (INCLUDES REPORTS BY ALL DIRECTORS
REPRESENTATING CMSD)
ORANGE COUNTY SANITATION DISTRICT (OCSD) (DIRECTOR FERRYMAN)
Director Ferryman reported Orange County Sanitation District is considering selling
farmland in Kings County and is actively marketing the property.
Director Ferryman reported on a meeting with the City of San Jose and Santa Clara
Valley Water District regarding the ground water replenishment system.
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) (DIRECTOR
PERRY
There was no meeting in February.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC)
(PRESIDENT SCHAFER)
• President Schafer attended the January 6, 2009 ISDOC meeting and reported on
legislation updates. President Schafer also gave an update on Sacramento and OCSD
and answered questions. President Schafer discussed the luncheon for ISDOC held on
January 29, 2009 and gave an update regarding CSDA, LAFCO and Sacramento.
LOCAL AGENCY FORMATION COMMISSION (LAFCO) (PRESIDENT
SCHAFER
There was no meeting in January 2009. President Schafer reported LAFCO's Best
Practices Meeting will be held on March 27, 2009 and MSRs and boundary changes will
be discussed. President Schafer will be unable to attend the March 27, 2009 meeting.
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (PRESIDENT
SCHAFER
President Schafer flew to Sacramento to attend a CSDA meeting and gave a brief
overview.
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 12
0 CALIFORNIA ASSOCIATION OF SANITATION AGENCIES CASH
President Schafer reported on the CASA Conference held in Indian Wells and gave a
written report on the conference, meetings and workshops attended.
OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD
ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030
Vice President Ooten attended the OCSD Operations Committee meeting and reported
on the budget assumptions that were enacted. Vice President Ooten presented Mr.
Hamers a copy of the budget assumptions.
Director Monahan attended a City Council meeting and a League of Cities meeting two
weeks ago and reported on the discussion of the stimulus package and the state budget
resolution.
CHAMBER OF COMMERCE
President Schafer attended the January 7, 2009 Chamber of Commerce meeting and
reported all representatives gave updates from Chamber, Gas, Edison, City, State and
• Federal. President Schafer gave an update on the District, LAFCO and CSDA.
OCCOG
President Schafer did not attend the meeting.
WACO
President Schafer was unable to attend the January 9, 2009 meeting. President
Schafer attended the January 20, 2009 planning meeting for WACO and gave CSDA
and LAFCO reports.
Vice President Ooten attended the last WACO meeting and reported John Lewis was
the speaker on the state of water in Orange County. Mr. Lewis conducted a survey of
conservation awareness.
OLD BUSINESS
There was no old business discussed.
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Minutes of CMSD Regular Meeting — February 26, 2009 Page 13
NEW BUSINESS
INVOICE FROM COUNTY OF ORANGE FOR 11/4/08 GENERAL ELECTION IN
THE AMOUNT OF $58,285.54
Vice President Ooten motioned to ratify payment for the Invoice from County of Orange
for 11/4/08 General Election in the amount of $58,285.54. Director Ferryman seconded.
Motion carried 5 -0.
ISDOC MEMBERSHIP DUES FOR 2009 IN THE AMOUNT OF $50.00
Director Ferryman motioned to ratify payment for ISDOC Membership Dues for 2009 in
the amount of $50.00. Director Monahan seconded. Motion carried 5 -0.
COSTA MESA CHAMBER OF COMMERCE ANNUAL MEMBERSHIP
INVESTMENT FOR 04/01/2009 TO 04/01/2010 IN THE AMOUNT OF $440.00
Director Monahan motioned to ratify payment for Costa Mesa Chamber of Commerce
Annual Membership Investment for 04/01/2009 to 04/01/2010 in the amount of $440.00.
Vice President Ooten seconded. Motion carried 5 -0.
CITY CLERKS ASSOCIATION OF CALIFORNIA (CCAC) ANNUAL
CONFERENCE APRIL 22-24,2009 IN SONOMA COUNTY
Ms. Revak requested the Board of Directors approve attendance by the District Clerk to
the City Clerks Association of California (CCAC) Annual Conference, April 22 -24, 2009
in Sonoma County. Vice President Ooten motioned for approval for attendance by the
District Clerk. Director Ferryman seconded. Motion carried 5 -0.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Vice President Ooten added to his Recycling Committee report by stating OC Waste &
Recycling entered into negotiations with representatives of Orange County cities and
special districts for new Waste Disposal Agreements in which a proposed increase in
disposal rates from $22.00 per ton to $29.95 per ton adjusted annually by CPI for a 10-
year term beginning July 1, 2010 was discussed.
Director Perry stated resident Dan Worthington has "no soliciting" signs available for the
Mesa Verde homeowners. Director Perry reported the signs state, "Dan Worthington of
the Costa Mesa Sanitary District." Vice President Ooten plans to attend the next
meeting to address issues regarding the signs created by Mr. Worthington.
Minutes of CMSD Regular Meeting — February 26, 2009 Page 14
• ADJOURNMENT
President Schafer adjourned the Regular Meeting at 7:43 p.m.
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