Minutes - Board - 2015-01-22SANITgRY
F
��RPOMti�
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JANUARY 22, 2015
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
January 22, 2015 at 5:30P.M. at 628 W. 19�
Street, Costa Mesa.
PLEDGE OF President Scheafer led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION Vice President Perry led the Invocation.
ROLL CALL DIRECTORS PRESENT: Michael Scheafer, Robert Ooten, Arthur
Perry, James Ferryman
DIRECTORS ABSENT: Arlene Schafer
STAFF PRESENT: Scott Carroll, General Manager; Alan Burns,
District Counsel; Robin Hamers, District
Engineer; Wendy Davis, Finance Manager;
Marc Davis, District Treasurer, Javier
Ochiqui, Management Analyst, Noelani
Middenway, District Clerk
OTHERS PRESENT: Lawrence Jones, CR &R
Alan Burns, District Counsel, noted that Assistant Secretary Schafer was excused from
this meeting as she was on official District business in Sacramento.
CEREMONIAL MATTERS AND PRESENTATIONS— None
ANNOUNCEMENT OF LATE COMMUNICATIONS — Scott Carroll, General Manager, noted
receipt of written public comments from Mr. Jim Mosher and indicated that both Mr.
Mosher's remarks and Mr. Carroll's response has been distributed to the Board for their
review.
COSTA MESA SANITARY DISTRICT
PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JANUARY 22, 2015
PUBLIC COMMENTS — President Scheafer invited members of the public to address the
Board. Seeing no one, President Scheafer
closed public comments.
CONSENT CALENDAR
1. Board of Directors Study Session
The Board of Directors Study Session
Meeting Minutes of December 8,
Meeting Minutes of December 8, 2014 was
2014
approved as presented.
2. Board of Directors Regular Meeting
The Board of Directors Regular Meeting
Minutes of December 18, 2014.
Minutes of December 18, 2014, was
approved as presented.
3. Occupancy report and payment to
The occupancy report and payment to
CR &R Environmental Services
CR &R Environmental Services for the
month of December 2014 in the amount of
$193,763.69 was approved as presented.
4. Contract Payment to CR &R
The Board of Directors approved payment
Environmental Services for
to CR &R Environmental Services for
Recycling and Disposal Services
recycling and disposal services for the
month of December 2014.
5. Adoption of a Warrant Resolution
The Board of Directors approved adoption
No. CMSD 2015 -07 Approving
of Warrant Resolution No. CMSD 2015 -07
District Warrant Registers
Approving District Warrant Registers for
the month of December 2014 in the
amount of $850,654.45.
6. Directors' Compensation and
The Board of Directors approved the
Reimbursement of Expenses
Director's Compensation and
Reimbursement of Expenses for the month
of December as presented.
7. Sewer Lateral Assistance Program
The Board of Directors approved the SLAP
(SLAP) Update
report as presented.
8. Adoption of Resolution No. 2015-
The Board of Directors adopted Resolution
856
No. 2015 -856 as presented.
9. Adoption of Resolution No. 2015-
The Board of Directors adopted Resolution
857
No. 2015 -857 as presented.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JANUARY 22, 2015
END OF CONSENT CALENDAR
Secretary Ooten made a motion to approve the consent calendar as presented. Vice
President Perry seconded the motion, which carried unanimously.
PUBLIC HEARINGS - None
GENERAL MANAGER'S REPORTS
10. Financial Statements for Fiscal Year Ended June 30 2014
Recommendation: That the Board of Directors receive and file the
Comprehensive Annual Financial Report, auditors' report in accordance with
Government Auditing Standards, and the auditors' required communication
for the fiscal year ended June 30, 2014.
Wendy Davis, Finance Manager, provided details of the District's Financial
Statements and a letter from the auditor to the Board. She noted that the audit was
completed with no management comments.
Discussion followed regarding projections of flow based on data received from the
Orange County Sanitation District.
Secretary Ooten made a motion to receive and file the report. Vice President Perry
seconded the motion, which carried unanimously.
11. Strategic Plan Progress Report
Recommendation: That the Board of Directors receive and file the FY 2014-
15 2nd Quarter Report regarding the FY 2010 -15 Strategic Plan.
General Manager Carroll provided details of the quarterly strategic plan update
report and noted that the District is making progress in meeting the goals set by the
Board.
President Scheafer suggested removing the citizens academy from the future
strategic plan.
Vice President Perry suggested a specific time set aside to review of the District's
investment reports.
Marc Davis, District Treasurer, noted that the investment reports are discussed on a
quarterly basis at the Board's regular meeting.
Vice President Perry requested to have a more in depth conversation regarding the
District's investments at a future study session. He also suggested incorporating the
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JANUARY 22, 2015
requirement of having a monitored alarm system on private pump stations.
There were no additional questions or comments and the report was received.
12. Schedule Special Meeting for Developing FY 2015 -20 Strategic Plan
Recommendation: That the Board of Directors schedule a special meeting.
The Board of Directors set a special meeting for Tuesday, February 24, 2015 at
8:00 A.M. to develop the FY 2015 -20 Strategic Plan.
13. Mid -Year Budget Update
Recommendation: That the Board of Directors receive and file the report.
Ms. Davis provided details of the mid -year budget update and noted that both the
sewer and solid waste fund are under budget, with most accounts projected to be
on target.
There were no additional questions or comments and the report was received
ENGINEER'S REPORTS
14. Proiect Status Report
Recommendation: That the Board of Directors receive and file the report.
Robin Hamers, District Engineer, noted that a report on the financials of Project
#206 for grade four repairs and funding for Project #101 for the pumping station
abandonment will be discussed at the February study session.
TREASURER'S REPORTS
15. Investment Report
Recommendation: That the Board of Directors approves the Investment
Report for the month December 2014.
Marc Davis, District Treasurer, provided details of the District's investment report.
Vice President Perry made a motion to approve the investment report as presented.
Secretary Ooten seconded the motion, which carried unanimously.
ATTORNEY'S REPORTS - None
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JANUARY 22, 2015
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman reported that the OCSD Board meeting for the month had not yet
occurred and that he and Secretary Ooten had attended the Board orientation.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Vice President
Perry)
Recommendation: That the Board of Directors accepts oral report.
Vice President Perry reported on his attendance of the SARFPA meeting and
discussed the budget update from the Army Corps of Engineers.
C. Independent Special Districts of Orange County ( ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported on the upcoming quarterly Executive Committee
meeting and discussed the applications received for the position of ISDOC Third
Vice President. He also commented on the LAFCO Collaborative Services Summit
on February 26, 2015.
D. California Special Districts Association (CSDA) - (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported on his attendance of the CSDA membership
committee meeting in Sacramento.
E. Special District Risk Management Authority ( SDRMA) — (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported on the upcoming SDRMA Board meeting, discussed
the budget review that may affect rates and possible workers compensation rates
adjustments.
Other Meetings Qualifying for Reimbursement under CMSD Ordinance No
55 Operations Code Section 3.01.030
Recommendation: That the Board of Directors accepts oral report.
Secretary Ooten reported on his and Vice President Perry's attendance of the WACO
meeting and discussed a report on the Salton Sea.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JANUARY 22, 2015
Vice President Perry reported on his and Director Ferryman's attendance of the
Chamber Breakfast.
OLD BUSINESS — None
NEW BUSINESS - None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Vice President Perry reported that the District has been assessed by the City of Costa
Mesa for the upgrade of manholes.
General Manager Carroll provided details of the assessment dated back to 2006 for
over $280,000. He noted that District Engineer Hamers confirmed the number of
manholes that were raised and was able to reduce the assessment to $250,000.
Discussion followed regarding a statute of limitations and the cost savings of the project
District Counsel Bums suggested having a discussion regarding this item at a future
meeting.
President Scheafer requested that the Board of Directors provide questions, goals and
comments for the General Manager's performance evaluation to be submitted to him at
the February 10 study session meeting.
President Scheafer requested support from his fellow Board members in support of Bill
Nelson's reappointment. He also noted that General Manager Carroll will meet with the
Mayor and City staff regarding hydraulic fluid leads from refuse trucks.
ADJOURN TO CLOSED SESSION TO DISCUSS LITIGATION WITH LEGAL COUNSEL PURSUANT TO
GOVERNMENT CODE SECTION 54956.9:
(a) In regards to existing /anticipated litigation entitled Costa Mesa Sanitary District —
Santa Ana Regional Water Quality Control Board Complaint No. R8- 2014 -0017.
(b) Anticipated litigation — significant exposure to litigation pursuant to Government
Code 5456.9(d)(2),(e)(1) [Number of potential cases: 1]
President Scheafer adjourned to closed session at 6:25 P.M.
President Scheafer reconvened to open session at 7:07 P.M. and reported out that the
General Manager has received direction from the Board on how to proceed.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JANUARY 22, 2015
ADJOURNMENT
There being no further business to come before the Board, President Schaefer
adjourned the meeting at 7:08 P.M.
Robert Ooten Michael Scheafe
Secretary President