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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JULY 23, 2015
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
July 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
OTHERS PRESENT: Dean Ruffridge, CR&R; Lawrence Jones,
CR&R
President Scheafer announced the birth of District Clerk, Noelani Middenway's baby
girl. The Board of Directors congratulated her and wished her the best.
CEREMONIAL MATTERS AND PRESENTATIONS— None
ANNOUNCEMENT OF LATE COMMUNICATIONS— None
PUBLIC COMMENTS—None
CONSENT CALENDAR
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JULY 23, 2015
1. Occupancy report and payment to The occupancy report and payment to
CR&R Environmental Services CR&R Environmental Services for the
month of May 2015 in the amount of
$194,351.45 was approved as presented.
2. 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 June 2015.
3. Adoption of a Warrant Resolution The Board of Directors approved adoption
No. CMSD 2016-01 Approving of Warrant Resolution No. CMSD 2016-01
District Warrant Registers Approving District Warrant Registers for
the month of June 2015 in the amount of
$852,123.40.
4. Directors' Compensation and The Directors' compensation and
Reimbursement of Expenses reimbursement of expenses for the month
of June 2015 were approved as presented.
5. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
6. Investment Report for the Month of The Board of Directors approved the
May 2015 Investment Report for the Month of May
2015 as presented.
END OF CONSENT CALENDAR
Secretary Ooten made a motion to approve the consent calendar as presented.
Assistant Secretary Schafer seconded the motion, which carried unanimously.
PUBLIC HEARINGS— None
GENERAL MANAGER'S REPORTS
7. Preliminary FY. 2014-15 Year-End Budget (4th Quarter Budget Report)
Recommendation: That the Board of Directors receive and file the report.
Finance Manager, Wendy Davis, provided report details of the preliminary FY 2014-
15 year end budget and projected a smallsavings in the budget due to vacant
positions.
Discussion followed regarding CIP projects and projected expenditures by the end
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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of the year and carrying forward of funds for project completion.
8. Unfunded Other Post-Employment Benefits (OPEB)
Recommendation: That the Board of Directors approve a $120,000
appropriation from Retained Earnings towards paying down the District's
California Employers' Retiree Benefit Trust Fund (CERBT) obligation as of
June 30, 2015.
Finance Manager Davis provided background on the study session discussion
regarding OPEB and noted that the Board of Directors had expressed interest in
funding portions of OPEB.
Vice President Perry made a motion to approve the recommendation. Secretary
Ooten seconded the motion, which carried unanimously.
9. Ordinance No. 107 — Adding a Meeting that Qualifies for a Day's Service
Compensation
Recommendation: That the Board of Directors adopt Ordinance No. 107 that
will qualify Newport Mesa Unified School District meetings for a day's service
compensation.
Director Ferryman made a motion to approve the recommendation. Vice President
Perry seconded the motion, which carried unanimously.
ENGINEER'S REPORTS
10. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
General Manager Carroll indicated that an urgent item arose that requires
discussion.
District Counsel, Alan Burns, noted that under the Brown Act the Board can make
findings that action needed to be taken on an item after the agenda had been
posted.
General Manager Carroll provided details of the need for action to be taken on the
proposed change order for Project#196-D for the Irvine Pump Station generator.
District Engineer, Robin Hamers, provided additional details for the proposed
change order and noted that the change order exceeds the contingency budget. It
was noted that the cost of the change order is $17,796 and recommended that
change order no. 5 be approved in that amount and that the Board approve an
appropriation of$26,000.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Assistant Secretary Schafer made a motion to approve change order no. 5, move
$26,150 into the project fund, and give the General Manager new authority for
another 10 percent contingency. Vice President Perry seconded the motion, which
carried unanimously.
TREASURER'S REPORTS
11. Investment Report for the Month of June 2015
Recommendation: That the Board of Directors approve the investment
report for the month of June 2015.
Marc Davis, District Treasurer, provided, an overview of the District's investments
and earnings of the month of June.
Director Ferryman made a motion to approve the recommendation. Vice President
Perry seconded the motion, which carried unanimously.
ATTORNEY'S REPORTS- None
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD)— (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Vice President
Perry) Recommendation: That the Board of Directors accepts oral report.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
E. Special District Risk Management Authority (SDRMA) — (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
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.
OLD BUSINESS—None
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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NEW BUSINESS
12. SDRMA Board of Director's Election Ballot
Recommendation: That the Board of Directors authorize President Scheafer to
cast the vote on behalf of the District.
President Scheafer recommended voting for the following incumbent's — Ed Gray,
Michael Wright, and Sandy Raffelson.
Director Ferryman made a motion to approve President Scheafer's recommendation.
Vice President Perry seconded the motion, which carried unanimously.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Assistant Secretary Schafer noted that she will not be able to attend the August Board
meeting as she will be in Sacramento at a CSDA Board meeting.
Secretary Ooten commented on the misuse of the organics carts in multi-family units
and suggested discussing the matter with CR&R at the Organics Recycling Ad Hoc
Committee meeting.
ADJOURN To CLOSED SESSION — President Scheafer adjourned to closed session at 6:45
P.M.
13. 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 tolitigation
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, General
Manager Carroll, District Engineer Hamers, and District Counsel Burns.
RECONVENE TO OPEN SESSION
President Scheafer reconvened to open session at 6:53 P.M. and noted that no
reportable action had been taken.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 6:53 P.M.
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Robert Ooten Michael Scheafer
Secretary President