Minutes - Board - 2009-12-17•
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
DECEMBER 17, 2009
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
December 17, 2009 at 5:30 p.m. at 628 W.
19th Street, Costa Mesa.
President Schafer called the meeting to order
at 5:30 p.m. and stated she would like to
dedicate the meeting to Wes Bannister who
passed away on December 10, 2009 after a
long illness. Mr. Bannister immediate past
chairman of the board of directors of the
Metropolitan Water District of Southern
California, will be remembered as a
dedicated, focused and energetic leader Who
made numerous contributions to critical
issues regarding water supply reliability and
delivery to the residents of Orange County
and throughout the district's six - county
service area, particularly the advancement of
water recycling and desalination. MWDOC
through record drought on the Colorado
River.
PLEDGE OF Director Perry led the Pledge of Allegiance.
ALLEGIANCE
INVOCATION Mr. Fauth gave the invocation.
ROLL CALL DIRECTORS PRESENT: Arlene Schafer, Robert Ooten, Gary
Monahan, James Ferryman, Art Perry
DIRECTORS ABSENT:
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COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 17, 2009
PAGE 2
STAFF PRESENT: Donald McIntyre, Interim General Manager;
Robin B. Harriers, District Engineer; Alan
Burns, Legal Counsel; Tom Fauth,
Operations Manager; Joan Revak, Office
Manager /Clerk of the District; Sherry Kallab,
Administration Manager; Marc Davis,
Treasurer; Teresa Gonzalez, Accountant
Karl Dulake, Maintenance Supervisor
OTHERS PRESENT
INTRODUCTION OF NEW GENERAL MANAGER
Mr. Scott Carroll
276 Lazy Meadow Road
Orange, CA 92869
Mr. Nitin Patel, CPA
Diehl, Evans & Company, LLP
5 Corporate Park, Suite 100
Irvine, CA 92606 -5165
President Schafer introduced the District's new General Manager Scott Carroll. The
Board approved the terms of the offer extended to Mr. Carroll in closed session on
November 16, 2009 by a 5 -0 vote. The Board and Mr. Carroll recently concluded
negotiations and processing, which are contained in an employment agreement. Mr.
Carroll thanked the Board for the opportunity and stated he is looking forward to working
with the Board and Staff. Mr. Carroll will begin his duties with the CMSD on January 4,
2010.
CONSENT CALENDAR
Director Oaten moved to approve the Consent Calendar. Director Monahan seconded.
Motion carried 5 -0.
REPORTS
MINUTE APPROVAL
Minutes of Special Meeting —
November 15, 2009
The Minutes of the Special Meeting held
November 15, 2009 were approved as
distributed.
Minutes of Special Meeting — The Minutes of the Special Meeting held
November 16, 2009 November 16, 2009 were approved as
distributed.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 17, 2009
Minutes of Regular Meeting — The Minutes of the Regular Meeting of
November 16, 2009 November 16, 2009 were approved as
distributed.
Minutes of Recycling Committee The Minutes of the Recycling Committee
Meeting — November 23, 2009 Meeting of November 23, 2009 were
approved as distributed.
Minutes of Sewer System Committee The Minutes of the Sewer System
Meeting — November 24, 2009 Committee Meeting of November 24, 2009
were approved as distributed.
Refunds There were no refund requests for the
month of November 2009.
Occupancy Report and Payment of The Trash Occupancy Count documented
$196,841.10 to Costa Mesa Disposal — no increase for the occupancy report for
December 2009 solid waste collection as of December 1,
• 2009. Therefore, the total for December is
21,500.
Monthly Spill Report to State Water The Monthly Spill Report to the State Water
Resources Control Board Resources Control Board (SWRCB) for
December 2009 was accepted as submitted.
Waste Diversion Report for November The Waste Diversion Report dated
2009 November 2009 was accepted as submitted.
Contract Payment of $153,497.56 to The contract payment of $153,497.56 to CR
CR Transfer — November 2009 Transfer for recycling services and disposal
for the month of November 2009 was ratified
as submitted.
Contract Payment of $9,716.06 The contract payment of $9,716.06 to CR
to CR Transfer — Santa Ana Transfer for recycling services and disposal
Heights /Newport Beach — November for Santa Ana Heights /Newport Beach for the
2009 month of November 2009 was ratified as
submitted.
Ordinance Enforcement Officer's The Ordinance Enforcement Officer's Report
• Report dated December 16, 2009 was accepted as
submitted.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
FIELD DECEMBER 17, 2009
ENGINEER'S REPORTS
Project Status Report The Project Status Report dated December
2009 was accepted as submitted.
Howard S. Wright Contractors Invoice The Howard S. Wright Invoice for work
in the amount of $132,446.00 performed through November 30, 2009 in the
amount of $132,446.00 was ratified as
submitted.
TREASURER'S REPORTS
Financial Report as of November 30, The Financial Report as of November 30,
2009 2009 was accepted as submitted.
Treasurer's Report as of November 30, The Treasurer's Report as of November 30,
2009 2009 was accepted as submitted.
Warrant Register for the month of
November 2009 in the amount of
$790,178.52
Directors Compensation &
Reimbursement of Expenses for the
month of November 2009.
Warrant Resolution #CMSD 2010 -06 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 $790,178.52.
Director Compensation and Expense
Reimbursements for the month of November
2009 were approved and ratified as follows:
President Schafer: $1,326.00 + $114.24
Vice President Ooten: $1,326.00 + $18.15
Director Monahan - $884.00
Director Ferryman: $663.00
Director Perry: $884.00
END OF CONSENT CALENDAR
WRITTEN COMMUNICATIONS
Ms. Revak advised there were no written communications.
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COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 17, 2009
PUBLIC COMMENTS
President Schafer noted there were no public present and, therefore, no public
comments.
President Schafer stated, if there were no objections, the Board would now consider the
Annual Financial Reports. Mr. Davis introduced Mr. Nitin Patel of Diehl, Evans &
Company, LLP, Certified Public Accountants & Consultants. Mr. Patel presented a
summary of the audited financials for the year ended June 30, 2009.
MANAGER'S REPORTS
PURCHASE OF SECOND BYPASS PUMP
Mr. Fauth presented the background for Staff's request for approval to purchase a second
fully functional, used bypass pump to meet the need to respond to multiple pump station
failures as identified in the 2009 -2010 adopted budget. Director Perry motioned to
dispense with the formal bid process in the public's best interest to approve the purchase
of a second fully functional used SPP QI 2— bypass pump for $41,781 (plus tax) from
Charles King to meet the District's need to respond to multiple pump station failures as
• identified in the 2009 -10 adopted budget. Director Ooten seconded the motion. Motion
passed 5 -0.
VEHICLE PARKING COMPLAINT
Mr. McIntyre reported a meeting was held between the homeowners having a complaint
with regard to parking the CMSD vehicle used by Mr. Dulake. In the short term the
problem is solved. In the long term, the District needs to ensure the vehicle is stored off
the street. Director Ferryman stated his opinion that it is not prudent for the District to set
a precedent to use the District yard as a storage area for a personal vehicle and other
solutions should be considered.
Mr. Dulake has volunteered to be on call for any District emergency and it would be best
to have the vehicle at his immediate disposal rather than having to drive to the District
office to pick up the CMSD vehicle. Mr. Burns stated there are many issues involved with
regard to District liability and the Board should instruct the Manager to come up with a
plan for dealing with the situation. The Board of Directors directed Staff to work on a
long -term solution to the problem.
STRATEGIC PLANNING SESSION FOR 2010
Mr. McIntyre reported dates are under consideration for the 2010 Strategic Planning
Session for 2010. Mr. Brent Ives of BHI Consulting, the facilitator, will be in touch with Mr.
Scott Carroll, the new General Manager, to select mutually - acceptable dates for the
session. Mr. Carroll will provide acceptable dates for the Session to Ms. Revak who will
coordinate with the Board of Directors.
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RECYCLING COMMITTEE - MONDAY, DECEMBER 14, 2009
Director Ooten reported on the Recycling Committee meeting held December 14, 2009.
The Recycling Committee will re- examine the goals after the Strategic Planning session
in January or February 2010.
Mr. Fauth provided a list of expenditures, totaling $36,691, made by the District with the
funds from the Regional Recycling and Waste Diversion Grant program. A check from
the County is forthcoming for the second grant. The grant is administered by the CMSD
and is a joint effort between the City of Costa Mesa, the City of Huntington Beach and the
CMSD.
Ms. Revak reported all participating schools have met the' /2 book per student
requirement and the results of the 2009 telephone book recycling program will be
reported at the January 2010 meeting.
ENGINEER'S REPORTS
WASTE DISCHARGE REQUIREMENTS (WDR)
Mr. Hamers reported the topic of discussion at the WDR meeting was disposal wipes
causing problems in the sewer system. This issue is a national problem and proposed
legislation may be forthcoming.
PROJECT #129 BRISTOL STREET SEWER CONSTRUCTION UPDATE
UPDATE ON CONSTRUCTION STATUS
Mr. Hamers reported the status of construction is the remaining item of the
suspended project is to reconstruct the property line fence between the golf course
and the Autoplex. Construction will probably be complete within the next week.
OCDA POSITION ON PHASE II WORK
Mr. Hamers reported this Item refers to the fact we can only construct two - thirds of
the project due to the proximity of the water line that prevented the last third of the
sewer line being constructed. Our three -party agreement with OCDA and the City
of Newport Beach is being reviewed by OCDA to see whether an amendment to
the agreement can be prepared to construct the remaining third of the sewer line
that is needed for capacity. No further agreements for this redevelopment area are
allowed at this point in time.
It is crucial they determine that an additional project would be approved for
0 designing construction to complete the last third of the sewer project.
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Mr. Hamers stated adding to the potential woes of this project is the Contractor's
attitude towards extra work which is virtually unparalleled in the industry. The
contractor takes the position if something doesn't appear as anticipated, or per the
plans, it is cause for additional work. The District received $288,000 worth of
proposed change orders on a $430,000 contract. Engineering Staff met with Alan
Burns and Mr. Burns has included important stop gaps in our construction
agreements part of which is the limitation on damages. Mr. Burns stated the
agreement allows contractor to get direct costs and does not allow contractor to
mark up things and charge the District inflated rates so it takes the incentive and
profit out of the change order process while still getting fair compensation.
Mr. Hamers presented a letter to the Contractor stating Paulus Engineering takes
the approach that anything other than perfect working conditions are cause for
extra work, which is not the industry standard or what the District has experienced
over the years with other licensed contractors performing public works
construction. This is in addition to Paulus Engineering's disregard for the contract
provisions requiring an independent investigation and financial limits on extra work.
The letter spelled out each of the change orders and the District's position on each
of them. Progress payments have been paid without consideration of change
orders #10 through #21.
is PROJECT #186 - SEWER LATERAL ASSISTANCE PROGRAM
"NOTICE" TO APPLICANTS WITH INCOMPLETE WORK
Mr. Hamers reported Staff sent letters to applicants for the sewer lateral assistance
program who have not finished their sewer lateral work and their files remain open.
Mr. Dulake reported only four responses to the letters have been received and the
letters have generated two or three of the applicants to go ahead with the work.
ORANGE COUNTY SANITATION DISTRICT (OCSD) TRANSFER OF SIX SEWERS TO CMSD
Letters to Property Owners
Mr. Hamers reported OCSD transferred six sewers to the CMSD and the District
received $1.3M. OCSD is in the process of gathering all of their records with
respect to the six sewer lines, including milar sets of plans, GIS layers, etc.
Upon receipt, Staff will prepare CMSD plans and specifications to re -work the
deficiencies to an acceptable condition while retaining as much of the $1.3M as
possible.
. Letters to the property owners were sent on December 4, 2009 and only one
phone call was received with regard to the increase on the tax bill.
CMSD Inflow Reduction Program Proposal for Additional Inspection Services
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COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Mr. Hamers presented a proposal for an inflow reduction program implementation plan.
As there is a large part of the District within which to reduce 1 /I, it is proposed to have the
Inspectors seal manholes themselves since National Plant Services cannot always work
the areas where inflow is occurring. Mr. Hamers recommended in future work scheduling,
NPS be scheduled to clean the lines where inflow is occurring just prior to the rainy
season so they can seal the manholes.
The Inspection budget is proposed as three hours per day between January 1, 2010 and
March 31, 2010 — the end of the rainy season — and then two hours per day from April 1,
2010 until June 30, 2010 to continue searching for illegal connections, check on the
manhole sealing, insure records are available to produce a GIS Manhole Sealing Map,
and to plan for the next rainy season which begins on October 1, 2010.
The proposed budget from now until the end of the 2009 -2010 fiscal year is not to exceed
$20,962.50 with billing to be hourly. Cost for the District Engineer's time is already
included in the previously approved budgeted amounts for general District Engineer
services so no increase in this portion of the budget is proposed. Director Ooten
requested a report to the Board at the April 2010 Board meeting on the efforts impact on
the pump stations. Director Ooten moved to approve the CMSD Inflow Reduction
Program Proposal for Additional Inspection Services in the amount of $20,962.50 with
• hourly billing. Director Monahan seconded the motion. Motion carried 5 -0.
ORANGE COUNTY SANITATION DISTRICT (OCSD) OFFER OF AREA 7 SEWERS
There was nothing to report on the OCSD offer of Area 7 Sewers.
DISTRICT YARD -174 W. WILSON STREET - CMSD #187
Status of Construction
Mr. Hamers reported construction is coming along nicely. The contractors are
easy to work with, very organized and address items well in advance of when they
are instructed or installed. Mr. Dulake reported the foundation is poured.
SEWER SYSTEM COMMITTEE -TUESDAY, DECEMBER 22, 2009
Director Monahan, Chairman of the Sewer System Committee, was unable to
attend the meeting and meeting attendees presented the report. Agenda items
were discussed including CMSD Policy on Private Spill Reporting. Currently, the
Sewer System Management Plan states to report spills that are private spills when
they enter the public right of way. The Committee would like to amend the SSMP
to avoid unnecessary Staff time used for a non - spill. If it goes into the public right
• of way it has to be reported. Staff would like to change to "if it is
fully contained, even though it enters public right of way and doesn't enter into
COSTA MESA SANITARY DISTRICT PAGE 9
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surface waters, it does not have to be reported ". Approximately 50% of
jurisdictions having responsibility for liquid waste in Orange County follow this
policy.
District Counsel stated Staff should bring this item back to the Board for a formal
amendment to the SSMP to demonstrate due diligence in reviewing the SSMP.
TREASURER'S REPORTS
INVESTMENT OVERSIGHT COMMITTEE - THURSDAY, DECEMBER 17, 2009 AT 5:00 P.M.
Mr. Davis reported the Committee met and reviewed the Treasurer's Report as of
November 30, 2009. The Annual Audit for 2009 -10 was discussed and the District
will go out with a Request for Proposal for audit services.
CalPERS Rates for 2010 -11 were discussed. Notification was received from
CalPERS in October that rates will be decreasing from 12.605% to 11.889%
resulting in a budget savings of about $7,200.
FIVE -MONTH BUDGET REVIEW
After the first five months of the fiscal year the solid waste fund is projected to have
a budgetary savings totaling approximately $447,755 that is made up of additional
revenue of $234,000 and savings in expenses of $213,000.
On the revenue side, solid waste charges are projected to be greater than the
budget by approximately $2,800 due to the budget being adopted prior to the final
calculations of the charges to be placed on the tax roll. The levy for general
property taxes was approximately $205,400 and no general property taxes were
included in the adopted budget. Investment earnings are projected to be $12,000
less than budget based upon the drop in the earnings rate of the District's portfolio.
Other revenue should exceed the budget by approximately $25,000, primarily due
to receipt of a County grant which was not included as part of the adopted budget.
On the expenses side, salaries and benefits are projected to be approximately
$55,620 below budget, due to vacancies and the retirement of the Ordinance
Enforcement Officer. Operations and maintenance are projected to be
approximately $150,190 below budget and the primary components of this savings
include the reduction in contracted services for Treasurer and
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transcription, resulting in savings of approximately $15,600, and less tonnage
resulting in savings of approximately $29,000 in recycling /disposal costs and non-
use of a majority of the annual contingency in the amount of $101,900.
Programs are projected to be under budget by approximately $7,375 due primarily
to projected savings in telephone book recycling ($5,000), education tours ($1,500)
and used tire roundup ($875).
In the Liquid Waste Fund, there is a projected budgetary savings totaling
approximately $1,302,039, virtually all from receipt of the $1.3M from the Orange
County Sanitation District for transfer of the sewers.
Mr. Davis provided an analysis of the budgetary savings as follows:
In Revenues, liquid waste charges are projected to be $101,100 greater than the
budget, due to the budget being adopted prior to the final calculations of the
charges to be placed on the tax roll. Investment earnings are projected to be
$4,000 greater than the budget. Contributions are projected to exceed the budget
by $1,300,000 as a result of a capital contribution made by OCSD to the District for
needed repairs to the transferred sewers. These funds are restricted and can only
be used to fund these repairs. Once the repairs are completed, any unspent funds
will be available to the District for other use.
On Expenses, salaries and benefits are projected to exceed the budget by
approximately $101,100 as a result of hiring a full -time General Manager, as well
as salary increases provided as part of the reorganization effected by the Interim
District Manager. A budget adjustment will be prepared to fund the additional
salaries and benefits.
Operations and maintenance is projected to be under budget by a net amount of
approximately $13,629. Capital improvement costs are projected to be fully
expended over the lives of the individual projects. Mr. Davis, however, pointed out
the Bristol Street Pump Station Project ( #129) has received change orders totaling
approximately $300,000. The actual amount of allowable change orders has not
yet been determined. As this project was fully funded by the Orange County
Development Agency (OCDA), Staff will be seeking additional funding for allowable
change orders. Should the OCDA not fund the change orders, the District will
need to reallocate funding for its capital improvement projects to fund the change
orders.
Mr. Davis reported on the financial situation beyond fiscal year 2009 -10 and noted
due to the conservative budget practices employed by the District over the past
• few years, the Solid Waste Fund has generated unrestricted available funds
totaling approximately $3,180,000. It is expected the contract with CR &R for trash
hauler and recycling /disposal services will be eligible for an increase in fiscal year
2010 -11. In the Liquid Waste Fund, currently unrestricted available
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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funds totaling approximately $625,000 have been generated. During this fiscal
year, these unrestricted funds have been reduced by approximately $154,000 and
will be further reduced by approximately $166,000 for budget adjustments to fund
additional salaries. Mr. Davis pointed out, in order to continue to provide service at
existing levels and provide for an adequate capital improvement program,
continued increases in sewer rates will be required in future years.
BUDGET ADJUSTMENT FOR ADDITIONAL SALARIES AND OTHER EXPENSES
Mr. Davis requested approval of a budget adjustment to reallocate costs and
provide adequate funding at the account level for the remainder of the 2009 -10
fiscal year. In the solid waste fund, a request to appropriate an additional $26,000
is requested. Director Ferryman moved to appropriate an additional $26,000 in the
solid waste fund. Director Ooten seconded the motion. Motion carried 5 -0.
In the liquid waste fund, Mr. Davis requested a budget adjustment to provide
funding for increased salaries and benefits associated with the District
reorganization and the hiring of a full -time General Manager. Director Monahan
moved to approve the budget adjustment in the liquid waste fund in the amount of
$166,080. Director Ooten seconded the motion. Motion carried 5 -0.
0 ATTORNEY'S REPORTS
CLAIM BY BACK BAY CENTER, LTD. FOR PROPERTY AT 2651 -2675 IRVINE AVENUE (CMSD
PROJECT #168 - IRVINE PUMP STATION RELOCATION
Mr. Burns gave an update on the Back Bay lawsuit. Mr. Hamers reported Staff is
monitoring the damage to the slope in the wall of the pumping station and Mr. Dulake
noted the wall is pushing against the pump station and the doors have to be pried open to
access the pump station. Survey work may be required. The door has moved more
since the rainfall. Mr. Hamers noted the attorneys, that do not include Mr. Burns, are
working very slowly and the issue will go on for a long time. Staff is tracking the potential
damage and Mr. Burns has written a letter putting them on notice that the pump station
has sustained a little damage to which they replied they did not acknowledge any damage
or that they are responsible. The District will have to take action soon.
ORDINANCE ENFORCEMENT OFFICER - PROPOSED MOU
Mr. Burns reported receiving a response from Kim Barlow, Attorney for the City of Costa
Mesa. Ms. Barlow requested backup documents and a copy of the proposed MOU. Ms.
Barlow acknowledged wanting to provide the District with Code Enforcement services on
a two -year trial basis.
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LAWSUIT ISSUES WITH RANCO CORPORATION - PRESIDENT PUMP STATION
Mr. Burns reported the City agreed to settle with Ranco Corporation and the paperwork is
being prepared by the City and Ranco Corporation.
ADMINISTRATIVE REGULATIONS
Mr. Burns reported, partly as a result of the Ranco Corporation case, Staff prepared two
different administrative regulations on handling a public records act request and a
subpoena and those regulations are in place. Each employee will be required to read and
sign the regulation to acknowledge they are aware.
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
Director Ferryman reported the OCSD Board meeting was held December 16,
2009. The North County facility will be knocked down and the OCSD will rebuild a
20,000 sq. ft. facility at a cost of $12M. There was discussion on the painting
contract and a contract was approved. Janet Nguyen is the Chair of the Orange
County Board of Supervisors and she will be the representative to the OCSD.
0 SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry reported there was not a meeting of the Santa Ana River Flood
Protection Agency in December.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC)
President Schafer reported on the November 3, 2009 meeting and there was
discussion on the October 29, 2009 quarterly meeting. President Schafer
presented her report on LAFCO and CSDA.
LOCAL AGENCY FORMATION COMMITTEE ( LAFCO)
Director Schafer was unable to attend the LAFCO meeting on November 14, 2009
due to a CSDA Planning meeting at Lake Tahoe.
ORANGE COUNTY COUNCIL OF GOVERNMENTS
President Schafer had nothing to report on OCCOG.
CHAMBER OF COMMERCE
• President Schafer reported the Chamber did not meet in November 2009.
COSTA MESA SANITARY DISTRICT PAGE 13
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CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA)
President Schafer reported on the CSDA meeting at Lake Tahoe where Brent Ives
was the facilitator. Goals and objectives were discussed. President Schafer
reported she will be the Vice Chair of the Legislation Committee and the Chair of
the Education Committee. President Schafer will also be the Chair of the 2010
Annual Conference at the Marriott Hotel in Newport Beach
WACO
At the WACO meeting on November 6, 2009 Director Schafer reported on CSDA
and LAFCO. Director Ooten reported on the December 11, 2009 meeting he and
Director Perry attended. There were two speakers and an update on the Delta Fix
was provided.
OLD BUSINESS
There was no old business to discuss.
NEW BUSINESS
CSDA MEMBERSHIP DUES FOR YEAR 2010 IN THE AMOUNT OF $4,088.00
Director Monahan moved to approve the CSDA Membership Dues for Year 2010 in
the amount of $4,088.00. Director Ooten seconded the motion. Motion carried 5-
0.
CASA MEMBERSHIP DUES FOR YEAR 2010 IN THE AMOUNT OF $8,000.00
Director Ooten moved to approve the CASA Member ship Dues for Year 2010 in
the amount of $8,000.00. Director Perry seconded the motion. Motion carried 5 -0.
ORANGE COUNTY FAIRGROUNDS
President Schafer and Director Monahan reported on the status of the subject of
sale of the Orange County Fairgrounds. Director Monahan reported the State has
not rescinded the sale of the Fairgrounds. January 8, 2010 is the due date for
bids. The bids will be reviewed between January 8 and 14, 2010. On January 14,
2010 the highest responsive bid starts a voice auction by the Department of
General Services (DGS). If the bid is determined to be responsive the DGS would
go into negotiations with the highest voice auction bidder. The CCM and County of
Orange have signed an MOU to submit a joint bid for financing and governance of
the OC Fairgrounds property. One of the more important determinations is that the
32nd Agriculture District will remain in charge of whatever happens on the property.
Members of the City and the County will probably be represented at the auction on
January 14, 2010.
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PAGE 14
Director Monahan reported the City Attorney has been directed to prepare a ballot
initiative for the citizens of Costa Mesa to vote to tighten the general plan through
the voting process in June, so if a private investor came in and purchased the
property one of the defenses is it would be out of the hands of City Council and in
the voting process. The first line of defense is for the State to pull the sale of the
Fairgrounds. It is most likely going forward. The City of Costa Mesa is partnering
with the County to purchase the Fairgrounds.
District Counsel Burns reported that Mesa Consolidated Water District passed a
resolution urging the Governor not to sell the land and had called for other agencies
to also adopt and send resolutions. As this request was made after the agenda was
prepared, the item would qualify as a non - agenda item since the need to take action
(adopting a resolution) arose after the agenda had been prepared, and there was a
need to take immediate action in that the sale of the property might otherwise occur
before the next regular Board meeting.
Mr. Burns, therefore, recommended that the Board adopt such a resolution making
those findings if it desired to act on such a resolution.
Director Ferryman moved to consider a non - agenda item needing immediate
action:
"Resolution of the CMSD Board of Directors Supporting the Cancellation of the
Sale of the O. C. Fairgrounds. The need to take immediate action is justified as
follows:
1. The item only arose after the agenda was posted in that the County adopted an
MOU seeking to cancel the sale made to the County and City of Costa Mesa on
December 15, 2009. The Mesa Consolidated Water District passed a
resolution supporting the County and City in this action and requesting other
public agencies to join on December 14, 2009.
2. The State will consider the proposals to purchase property (or alternatively to
cancel the sale) after the bids are opened on January 8, 2010. Today's Board
meeting is the last CMSD Board meeting before the State opens the bid and
makes its decision.
For all of the above reasons, Director Ferryman requested the non - agenda item be
added to the agenda and that the above findings be made.
Director Ooten seconded the motion. Motion carried 5 -0.
Director Ooten moved adoption of CMSD Resolution No. 2009 -774. Director Perry
seconded the motion. Motion carried 5 -0.
Director Monahan moved a letter be drafted and signed by President Schafer to
the Governor and all local elected state officials. Director Perry seconded the
motion. Motion carried 5 -0.
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C
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
There were no oral communications.
ADJOURNMENT TO CLOSED SESSION
President Schafer adjourned the meeting to Closed Session at 8:00 p.m.
CLOSED SESSION
The Board of Directors met in Closed Session at 8:05 p.m. for evaluation of the Interim
Manager pursuant to Government Code §54957.
The Board of Directors adjourned from Closed Session at 8:15 p.m.
Legal Counsel, Mr. Burns, reported the starting date for Mr. Scott Carroll is Monday,
January 4, 2010 and that will be the last day Mr. Don McIntyre will function as Interim
General Manager.
ADJOURNMENT
President Schafer adjourned the meeting at 8:17 p.m.
Se etary