Minutes - Board - 2015-04-23 /SSA SANITq�` •
on, `° �
V
\ 4 AD
\�RPpRATE�`
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 23, 2015
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
April 23, 2015 at 5:30P.M. at 628 W. 19th
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, Arthur Perry, Robert
Ooten, Arlene Schafer, James Ferryman
DIRECTORS ABSENT: None
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; Elizabeth Pham,
Management Assistant
OTHERS PRESENT: Lawrence Jones, CR&R
CEREMONIAL MATTERS AND PRESENTATIONS—None
ANNOUNCEMENT OF LATE COMMUNICATIONS— None
PUBLIC COMMENTS— None
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 23, 2015
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of March 10, 2015 Meeting Minutes of March 10, 2015 was
approved as presented.
2. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of March 26, 2015. Minutes of March 26, 2015, 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 March 2015 in the amount of
$194,191.15 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 March 2015.
5. Adoption of a Warrant Resolution The Board of Directors approved adoption
No. CMSD 2015-10 Approving of Warrant Resolution No. CMSD 2015-10
District Warrant Registers Approving District Warrant Registers for
the month of March 2015 in the amount of
$453,630.85.
•
6. Directors' Compensation and The Directors' compensation and
Reimbursement of Expenses reimbursement of expenses for the month
of March 2015 were approved as
presented.
7. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
END OF CONSENT CALENDAR
Director Ferryman 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
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 23, 2015.
8. Website and Webhosting Update
Recommendation: That the Board of Directors receive and file this report.
Scott Carroll, General Manager, reported that Elizabeth Pham, Management
Assistant, was able to secure a vendor to monitor the District's website and
notify staff if the District's website were to become unavailable.
9. Proposed Sewer Lateral Assistance Program (SLAP) FY 2015-16
Recommendation: That the Board of Directors approves the parameters shown
below for the SLAP program for the fiscal year beginning July 1, 2015:
1. Change the maximum amount of reimbursement to $1,000.
2. Reaffirm the requirement for participation of one application once every five years
up to the approved reimbursement amount at the time of application.
3. Direct staff not to accept any SLAP applications once the $200,000 of SLAP
funding is expended for the 2015-2016 fiscal year.
Wendy Davis, Finance Manager, requested that the Board consider approving the
recommendations due to fiscal restraints. Ms. Davis reported that funding is available
for 22 SLAP applications through the end of the fiscal year and that an anticipated 200
applications will be paid. Ms. Davis confirmed that the applicant may apply once every
five years per residence.
Vice President Perry expressed favor of changing the reimbursement fee to $1,100.
Director Ferryman concurred with Vice President Perry and supported changing the
reimbursement fee of$1,100.
Discussion followed regarding possible changes to the parameters of the SLAP. Ms.
Davis noted that upon approval of the budget, the recommended SLAP changes will be
brought back to the Board for approval. Discussion ensued regarding benefits of the
program for residents,
General Manager Carroll requested that if the Board is considering changing the SLAP
budget to $220,000 that the decision is made after the budget is presented to the-Board.
Discussion followed regarding the timeline of rolling out the pilot program.
Vice President Perry made a motion to change the maximum reimbursement amount to
$1,100 and approve staff's recommendation. Director Ferryman seconded the motion,
which carried unanimously.
10. FY 2014-15 Budget Review— Third Quarter
Recommendation: That the Board of Directors receive and file the report.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 23, 2015
Ms. Davis provided report details noting expenditures in salaries were below what
was anticipated due to the vacancies, which were offset by the expenditures in the
professional and contract services. Ms. Davis reported a projected surplus balance
in the solid waste fund of $72,000 and $97,000 in the liquid waste fund. Ms. Davis
noted a contingency of $120,000 in the sewer fund that shows being fully expended
in anticipation of the fine to be paid for the sanitary sewer overflow at the Irvine
pump station.
Mr. Carroll provided information regarding the security patrol of District
headquarters and felt that the increased.patrol was beneficial.
There were no additional questions or comments and the report was received.
11. . FY 2015-20 Strategic Plan Draft Review
Recommendation: That the Board of Directors review and discuss the FY
2015-20 Draft Strategic Plan and give direction to staff.
General Manager Carroll presented the draft Strategic Plan for Fiscal Year 2015-20.
Vice President Perry requested an update from Environmental Engineering &
Contracting (EEC) at a future meeting regarding the District's Fats, Oils & Grease
(FOG) enforcement program..
Mr. Carroll confirmed that the final draft of the Strategic Plan will be brought to the
Board for approval at the May 28, 2015 regular meeting.
There were no additional questions or comments and the report was received.
ENGINEER'S REPORTS
12. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
There were no questions or comments and the report was received.
13. Project #204 Sewer Manhole Surface Repair Program — Phase I —
Acceptance of Improvements
Recommendation: That the Board of Directors approves the following action:
1. Accept improvements as completed and file a Notice of Completion.
2. Authorize payment of 5% retention 35 days after Notice of Completion is
recorded.
3. Exonerate Labor and Material Bond after Notice of Completion is recorded and
exonerate Faithful Performance Bond one year of Notice of Completion is
recorded.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 23, 2015
Rob Hamers, District Engineer, noted that the project was completed and indicated
that the recommendation is standard procedure for the completion of the project.
Secretary Ooten made a motion to approve the recommendation. Assistant
Secretary Schafer seconded the motion, which carried unanimously.
There were no additional questions or comments.
TREASURER'S REPORTS
14. Investment Report for the Month of March 2015
Recommendation: That the Board of Directors approves the Investment
Report for the month March 2015.
Marc Davis, District Treasurer, provided details of the investment report for March
2015.
Discussion followed regarding District reserves and investing in CalWest Industrial
Properties.
There were no additional questions or comments and the report was received. ,
ATTORNEY'S REPORTS
15. General Manager's Agreement— Fifth Amendment
Recommendation: That the Board of Directors approve the General
Manager's Fifth Amendment of his agreement.
Alan Burns, District Counsel, presented the fifth amendment to the General
Manager's agreement.
Secretary Ooten made a motion to approve the agreement. Vice President
Perry seconded the motion, which carried unanimously.
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman discussed the soliciting of insurance benefits that will potentially save
six to eight million dollars, the approval of a licensing agreement with Product and
Chemicals, Inc. for the operation of a hydrogen dispensing station, East Orange County
Water District's negotiation for sewer acquisition, and discussed groundwater
replenishment and security.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 23, 2015
Secretary Ooten discussed new OCSD perimeter fencing.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Vice President
Perry) Recommendation: That the Board of Directors accepts oral report.
Nothing to report at this time.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported on his attendance of the ISDOC Executive Committee
meeting and noted that the bylaw changes were approved and will be voted on in
May. He also noted that General Manager Carroll would be a key presenter at the
upcoming ISDOC quarterly meeting.
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer reported on her attendance of the CSDA Board
meeting and noted that she would be attending CSDA Legislative Days in May.
General Manager Carroll noted that meetings have been scheduled with
Assemblyman Harper and Senator Moorlach during Legislative Days.
E. Special District Risk Management Authority (SDRMA) — (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
Nothing to report at this time.
F. 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.
President Scheafer reported on his attendance of a meeting with General Manager
Carroll and Orange County Supervisor Michelle Steele.
Secretary Ooten reported on his attendance of the WACO meeting.
OLD BUSINESS— None
NEW BUSINESS — None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 23, 2015
President Scheafer requested a survey of Board of Directors stipend and compensation
to be presented at the May study session. He complimented staff on the recent
" newsletter, requested the schedule for the Directors attending upcoming town hall
meetings for the implementation of the Organics Recycling Program, and announced Ed
Fawcett's retirement.
ADJOURN To CLOSED SESSION — President Scheafer adjourned to closed session at 6:37
P.M.
16. 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]
All others exited the meeting with the exception of the Board of Directors, District
Counsel Burns, General Manager Carroll, and District Engineer Hamers.
RECONVENE TO OPEN SESSION
President Scheafer reconvened to open session at 6:55 P.M. and reported that no
reportable action was taken during closed session. -
ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 6:55 P.M.
AdOr
Robert Ooten Mic :el Scheafer/
Secretary President