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Minutes - Board - 2015-05-12 4IViti /' A O /hamaoc 1 1 ' CI � f1 _ U$ aa i 'yooRPORAe COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION MAY 12, 2015 , CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in study session on May 12, 2015 at 9:30 A.M. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: Michael Scheafer, Arthur Perry, Robert Ooten, Arlene Schafer, James Ferryman DIRECTORS ABSENT: None STAFF PRESENT: Scott Carroll, General Manager; Robin Hamers, District Engineer; Wendy Davis, Finance Manager; Noelani Middenway, District Clerk; Javier Ochiqui, Management Analyst; Elizabeth Pham, Management Assistant; Denise. Martinez, Interim Administrative Services Manager OTHERS PRESENT: Dean Ruffridge, CR&R; Lawrence Jones, CR&R; Mike Carey, OCC; An Tran, OCWR; PUBLIC COMMENT — President Scheafer opened public comments. Seeing no one, he closed public comments. ITEMS OF STUDY 1. Recycling & Waste Diversion Reports—April 2015 Recommendation: That the Board of Directors receive and file the report. Javier Ochiqui, Management Analyst, provided report details. There were no questions or comments and the report was received. 2. Code Enforcement Officer Report—April 2015 Recommendation: That the Board of Directors receive and file the report. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 12, 2015 Ed Roberts, Code Enforcement Officer, provided report details and discussed scavenging activity. Vice President Perry questioned if offenders names should be listed as part of the public record. Mr. Roberts indicated that he would research that further. President Scheafer indicated that the Board would expect that Mr. Roberts to keep a list of names to identify repeat offenders and directed Mr. Ochiqui to consult District counsel on the legality of listing offender's names in the report. Discussion followed regarding enforcement of scavenging. There were no additional questions or comments and the report was received. 3. Amendment to Waste Disposal Agreement Recommendation: That the Board of Directors direct staff to bring this item back to the May 28, 2015 Board of Directors regular meeting for approval consideration. Elizabeth Pham, Management Assistant, provided details of the amendment to the 2009 Waste Disposal Agreement (WDA) that would allow for continued solid waste importation at the County landfills, allocation of future importation revenues and an extension of terms of the WDA through June 30, 2025. Ms. Pham noted that the District would receive a 1.48% allocation which is approximately $80,000 annually. General Manager Carroll noted that the District would receive revenues beginning in September 2016. An Pham, Orange County Waste & Recycling (OCWR), discussed a projected tonnage shortfall of 24 percent and noted that OCWR is looking at option to not raise landfill rates or reduce service. The Board of Directors directed staff to bring the item back to the regular Board meeting of May 25, 2015 for consideration. 4. OCC Recycling Center Expansion Update— Oral Report Recommendation: That the Board of Directors receive an oral report from Mike Carey. Mike Carey, Orange Coast College (OCC), reported a delay in the OCC Recycling Center Expansion. He indicated that a public meeting would be held on May 21, 2015 to discuss proposed student housing and the construction of a student center, and noted that the California Environment Quality Act (CEQA) and Environmental Impact Report (EIR) documents will be made available in early June, presented to COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 12, 2015 OCC's Board in August, and construction anticipated to begin in December with a completion date approximately 12 to 16 months after the beginning of construction. 5. Job & Salary Survey Findings & Recommendations Recommendation: That the Board of Directors accept the reports from Koff & Associates and provide direction to staff for the FY 2015-16 & 2016-17 Budget. Georg Krammer, Koff & Associates, presented details of the classification and compensation study draft final report for the District. He discussed the process, methodology, and outcome of the study. Mr. Krammer provided recommendations of six title changes to more clearly reflect the level and scopes of work performed and establish consistency with the labor market and industry standards. He also recommended four reclassifications of positions working out of class due to level and scope of work currently being performed, which includes the following: • Administrative Assistant I to Management Analyst I • Management Analyst to Senior Management Analyst • Management Assistant to Management Analyst II • Sewer Maintenance Supervisor to Wastewater Maintenance Superintendent Director Ooten suggested using the term collections instead of wastewater. Discussion followed regarding the change of the term from sewer to wastewater. Mr. Kramer indicated that the District's base salary market results are 3.4% above market and total compensation (salaries & benefits) results are 5.8% below market. He further discussed benefit findings of the comparator agencies, compensation structure and strategy development. Mr. Kramer recommended eliminating the District's existing "seven step" compensation structure and implement a range structure that has a minimum, midpoint, and maximum salary range. Discussion followed regarding the compensation structure and the addition of 15 percent to the District's cafeteria plan that pays for healthcare coverage. Mr. Kramer distributed information to the Board of Directors on the Board compensation for surrounding agencies. Denise Martinez, Interim Administrative Services Manager, provided details of the findings. General Manager Carroll requested direction from the Board to allow the recommended changes to be included in the budget. Discussion followed regarding transition from sewer to wastewater. The Board of Directors directed staff to change the term sewer to wastewater. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 12, 2015 General Manager Carroll requested direction on the reclassification of the four recommended positions. Vice President Perry expressed concern regarding having open salary ranges and indicated that he preferred having a step process. The Board of Directors directed staff to reclassify the four recommended positions. Discussion followed regarding the District's pay for performance system. The majority of the Board of Directors directed staff to approve using the open salary range, with Vice President Perry opposed. General Manager Carroll requested direction regarding adjusting the salary range for the identified positions who are below the market range. Discussion followed. The Board of Directors directed staff to move forward with adjusting the salary ranges. General Manager Carroll requested direction regarding increasing the cafeteria plan by 15%, which is equivalent to a total amount of$32,000. Vice President Perry expressed concern regarding "Cadillac Tax". Discussion followed and Vice President Perry requested that staff provide information on the "Cadillac Tax" at an upcoming meeting. The Board of Directors directed staff to move forward with the recommended 15% increase to the cafeteria plan. General Manager Carroll requested direction regarding adjusting the Board of Directors compensation. Discussion followed. Director Ferryman suggested changing the per meeting compensation rate to $290; President Scheafer suggested $295; Secretary Ooten suggested staying at the current rate of$221. The Board of Directors concurred to direct staff to change the Board of Directors per meeting compensation rate from $221 to $295. General Manager Carroll noted that the Consumer Price Index (CPI)for 2015 is 0.1 COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 12, 2015 percent and requested direction from the Board of Directors on whether or not to approve incorporating the CPI into the budget. The Board of Directors directed staff to add the 0.1 CPI to the budget. President Scheafer recessed the meeting at 11:00 A.M. and reconvened at 11:06 A.M. 6. Trash Carts Stored in Alleys - Update Recommendation: That the Board of Directors receive and file the report. This item was continued. 7. Alkaline Battery Recycling Program — Final Results Recommendation: That the Board of Directors receive and file the report. General Manager Carroll indicated that the check presentations are being scheduled with the schools and dates will be circulated to the Board. 8. OC Waste & Recycling Coordinator's Meeting — Update Recommendation: That the Board of Directors oppose AB 45 (Mullin) and direct staff to formally oppose this bill with State legislators. President Scheafer expressed opposition of AB 45. General Manager Carroll noted that the formal letter of opposition will be signed and personally discussed with the representatives in Sacramento during California Special Districts Association (CSDA) Legislative Days. Ms. Pham provided details of AB 45 which would mandate implementing a door to door house hold hazardous waste collection program for all residents. 9. Organics Ad Hoc Committee Update— Oral Report Recommendation: That the Board of Directors receive an oral report from Secretary Ooten. This item was continued. 10.Project #101 Westside Pump Station Abandonment Design and Engineering Phase— Oral Report Recommendation: That the Board of Directors consider options for the design and engineering phase of Project #101 - Westside Pump Station Abandonment. President Scheafer moved this item to be discussed after item 5. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 12, 2015 General Manager Carroll provided an update and noted that the City of Newport Beach would consider the agreement at its City Council meeting of May 26, 2015 and upon approval Orange County Sanitation District (OCSD) will present the agreement to its Board for approval. Robin Hamers, District Engineer, indicated that OCSD is anticipated to begin project design on January 31, 2016. Mr. Hamers provided a breakdown of the $500,000 contract noting that $200,000 would cover the engineering portion, $200,000 toward consultants, and $100,000 for processing. He provided details on how OCSD will not award the design phase to the same engineer who performed the preliminary engineering. Mr. Hamers emphasized that CMSD needs to begin final engineering by January 1, 2016 to be ahead of OCSD. He discussed the challenge of micro tunneling under Canyon Drive. Director Ferryman suggested that Mr. Hamers provide a proposal to oversee the contract and a separate proposal to perform the entire project. General Manager Carroll suggested that it would be appropriate for Mr. Hamers to be the project administrator and have him prepare and solicit proposals for design and engineering services. Mr. Hamers firm will not submit a proposal for design and engineering services Assistant Secretary Schafer exited the meeting at 11:21 A.M. Secretary Ooten expressed concern regarding the micro tunneling and indicated that he preferred that Mr. Hamers provide the project management. General Manager Carroll suggested that District Engineer Hamers submit a proposal to be the project manager Discussion followed regarding bidding and prequalification procedures. General Manager Carroll requested direction from the Board on how to proceed. The Board of Directors directed District Engineer Hamers to submit a proposal to be the project administrator for design and engineering services with the recommendation on how to proceed. Wendy Davis, Finance Manager, suggested bringing District Engineer Hamers proposal to the Board for approval at its next regular meeting as the funds have been budgeted for the project and the project could begin right away. • COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 12, 2015 General Manager Carroll suggested receiving request for qualifications (RFQ) to determine which firms are qualified, then have District Engineer Hamers administer the request for proposal (RFP) to the qualified firms, evaluate the proposals and provide a recommendation to the Board for approval, and then begin final engineering by January 1, 2016. 11.Future Study Session Items Recommendation: That the Board of Directors provide staff with direction on items to be placed on future study session agendas. President Scheafer requested a calendar of events for the District, and a list of required trainings for the Board of Directors. ORAL COMMUNICATIONS President Scheafer requested clarification on the appropriate time for the public to speak on agenda items during a study session as other agencies only allow for public comment at the beginning of the meeting. ADJOURNMENT There being no further business to come before the Board, President Scheafer adjourned the meeting at 11:45 A.M. Robert Ooten Michael Scheafe Secretary President