Minutes - Board - 2015-10-22 c�sn SANITI4
P
O
®PoRiF.OAS9 �
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 22, 2015
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
October 22, 2015 at 5:30 P.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: Alan Burns, District Counsel; Robin Hamers,
District Engineer; Wendy Davis, Finance
Manager; Marc Davis, District Treasurer;
Noelani Middenway, District Clerk
OTHERS PRESENT: Jim Mosher, Resident
CEREMONIAL MATTERS AND PRESENTATIONS-None
ANNOUNCEMENT OF LATE COMMUNICATIONS- None
PUBLIC COMMENTS
Jim Mosher, a member of the public, requested that Items 6 and 7 be pulled from the
consent calendar for discussion.
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
ADJOURN TO CLOSED SESSION
President Scheafer indicated that Item 15, closed session, would be moved to the
beginning of the agenda and adjourned to closed session at 5:30 P.M.
15. Discuss litigation with legal counsel pursuant to Government Code Section
54956.9:
(a) In regards to anticipated litigation entitled Costa Mesa Sanitary District — Santa
Ana Regional Water Quality Control Board Complaint No. R8-2015-0025.
(b) Anticipated litigation — significant exposure to litigation pursuant to Government
Code Section 5456.9(d)(2), (e)(1) [Number of potential cases: 1]
President Scheafer reconvened to open session at 5:37 P.M. and reported that the Board
of Directors has decided to appeal the decision of the Santa Ana Regional Water Quality
Control Board by a unanimous vote of 5 to 0. He added that Alan Burns, District Counsel,
will move forward with the appeal on October 23, 2015.
President Scheafer reconvened to open session at 5:37 P.M.
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of September 8, Meeting Minutes of September 8, 2015 was
2015 approved as presented.
2. Board of Directors Special Meeting The Board of Directors Special Meeting
Minutes of September 10, 2015 Minutes of September 10, 2015 was
approved as presented.
3. Board of Directors Regular Meeting President Scheafer pulled this item for
Minutes of September 17, 2015 discussion.
4. Occupancy Report and Payment to The Board of Directors accepted the
CR&R Environmental Services occupancy count as presented using
21,879 as the correct number of active units
and directed staff to prepare a warrant to
CR&R Environmental Services in the
amount of $212,594.07 to be ratified in the
October 2015 warrant list, for September
2015 collection.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
5. Contract Payment to CR&R The Board of Directors approved payment
Environmental Services for to CR&R Environmental Services for
Recycling & Disposal Services recycling and disposal services for the
month of September 2015.
6. Adoption of Warrant Resolution No. President Scheafer pulled this item for
CMSD 2016-04 Approving District discussion.
Warrant Registers
7. Directors' Compensation and President Scheafer pulled this item for
Reimbursement of Expenses discussion.
8. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
Assistant Secretary Schafer made a motion to approve the consent calendar, omitting
items 3, 6, and 7. Director Ferryman seconded the motion, which carried unanimously.
Regarding Item 3, President Scheafer indicated that he was not present at the September
17, 2015 Regular Meeting and would not participate in the vote to approve minutes of that
meeting.
Discussion followed regarding President Scheafer's ability to approve the minutes of a
meeting that he did not attend. Alan Burns, District Counsel, noted that President
Scheafer would be able to vote to approve the item if he listened to the tape/audio
recording of the meeting. President Scheafer indicated that he would abstain from voting.
Assistant Secretary Schafer made a motion to approve Item 3. Vice President Perry
seconded the motion, which carried with 4-0-1, with President Scheafer abstaining.
Regarding Items 6 and 7, Jim Mosher, a member of the public, complimented the District
on its commitment to transparency. Mr. Mosher sought clarification regarding the number
of days listed for reimbursement on Vice President Perry's Expense Reimbursement
form. Vice President Perry clarified that there were 6 days listed on the form and he
requested that staff provide him with the new Expense Reimbursement form to reflect the
updated per meeting day compensation rate.
Wendy Davis, Finance Manager, explained that the Expense Reimbursement form is
reviewed and corrected by staff before being processed for payroll.
Mr. Mosher expressed concern that the Warrant Register did not include the amount paid
for payroll.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
Ms. Davis explained that incidental expenses are not reimbursed until the Board of
Directors approves the expense reimbursement at the monthly Regular Meeting. The
expenses to which Mr. Mosher referred will appear on the Warrant Register at the next
Regular Meeting on November 19, 2015.
Mr. Mosher requested clarification regarding the difference between the reported total
expenditures on the Warrant Register and the Quarterly Budget Report.
Ms. Davis explained that the Warrant Register contains every check that the District pays
under Accounts Payable, while the Quarterly Budget Report contains all of the synopses
under the regular operations of the District, such as salaries, maintenance, and
operations. She added that the Quarterly Budget Report does not include capital
improvement projects.
Vice President Perry made a motion to approve Items 6 and 7. Director Schafer seconded
the motion, which carried unanimously.
END OF CONSENT CALENDAR
PUBLIC HEARINGS—None
GENERAL MANAGER'S REPORTS
9. Quarterly Budget Report
Recommendation: That the Board of Directors receive and file this report.
Wendy Davis, Finance Manager, provided report details. Ms. Davis reiterated that the
Quarterly Budget Report contains the District's regular operations and excludes capital
improvement projects, which will be discussed later in the meeting by Robin Hamers,
District Engineer. She added that the District is currently on track with the budget.
There were no additional questions or comments and the report was received.
10. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2014-15
to Fiscal Year 2015-16
Recommendation: That the Board of Directors approve the re-appropriation of
funds in the Fiscal Year 2015-16 for the carryover items from the prior fiscal year
as detailed in Attachments A and B, and summarized as follows:
Appropriations Encumbrances
10 Solid Waste Fund $1,530 $21,368
20 Liquid Waste Fund $4,618,047 $819,682
Wendy Davis, Finance Manager, provided report details. She explained that the carryover
appropriations listed are budgeted items from Fiscal Year 2014-2015 that were not
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
completed as of June 30, 2015 and include capital improvement items, capital outlay
items, and Sewer Lateral Assistance Program (SLAP) reimbursements. Ms. Davis added
that carryover encumbrances are purchase orders that have been accounted for in Fiscal
Year 2014-2015, but have not been completed as of June 30, 2015.
Vice President Perry made a motion to approve the re-appropriation of funds in the Fiscal
Year 2015-16 for the carryover items from the prior fiscal year. Assistant Secretary
Schafer seconded the motion, which carried unanimously.
Secretary Ooten requested clarification regarding the Springbrook Software carryover
appropriation and Ms. Davis explained that Springbrook training lasted through July of
2015.
11. Strategic Plan Quarterly Progress Report (1' Quarter)
Recommendation: That the Board of Directors receive and file this report.
President Scheafer requested clarification regarding the difference between "in process'
and "on-going," as used in the Strategic Plan Quarterly Progress Report.
Ms. Davis explained that "in process" indicates that the District is currently working
towards a specific goal, while "on-going" indicates that the District continuously seeks to
work towards a broader goal.
Discussion followed regarding the meaning of "complete" and the color-coding of the
report.
There were no additional questions or comments and the report was received.
12. Ordinance No. 109 — Amending Operations Code Section 4.04.070(f), Five-Year
Limitation for GIS/CMMS services
Recommendation: That the Board of Directors approves adopting Ordinance No.
109.
Wendy Davis, Finance Manager, provided report details.
Jim Mosher, a member of the public, provided comments regarding the item's urgency,
the original language used in Operations Code Section 4.04.070(f), and the language,
spelling, and grammar in Ordinance No. 109. He proposed that the Board of Directors
review the ordinance further before approving it.
Vice President Perry added that he and Assistant Secretary Schafer may make changes
to the Ordinance after the next Ad Hoc Committee Meeting.
The Board of Directors tabled the item to be discussed further at a future meeting.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
ENGINEER'S REPORTS
13. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
Robin Hamers, District Engineer, provided report details. He noted that the Southern
California Gas Company locked their meter, which the District needed access to.
Discussion followed regarding the removal of the Southern California Gas Company's
locks in the event of an emergency. Additionally, Mr. Hamers shared that the Districts
third generator is out to bid and Project #194 Sewer Manhole Rehabilitation is nearing
completion.
Secretary Ooten requested that the bid totals be added to the Capital Improvement
Program document.
There were no additional questions or comments and the report was received.
TREASURER'S REPORTS
14. Investment Report for the Month of September 2015
Recommendation: That the Board of Directors approves the Investment Report for
the month of September 2015.
Marc Davis, District Treasurer, provided report details. He noted that the District's
investment portfolio, as of September 30, 2015, was 1.79% and the yield to maturity of
the portfolio was 1.083%. He added that this is the first time year-to-date that the District
has been at above 1%. Additionally, Mr. Davis noted that two investments for home loan
banks were called and replaced with other securities. Lastly, he shared that the District
received its account number today for its investment in CaITRUST and the first deposit
will be made soon. Discussion followed regarding the District's interest rate with
CaITRUST.
There were no additional questions or comments and the report was received.
ATTORNEY'S REPORTS- None
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD)— (Secretary Ooten)
Recommendation: That the Board of Directors accepts oral report.
Secretary Ooten reported on a discussion about how to improve education and
communication with the public. Additionally, Secretary Ooten shared that OCSD
discussed decreasing odor complaints and approved their 5-Year Strategic Plan.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
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 a discussion regarding the flood insurance being paid
by each city in Orange County. Additionally, he shared that the Westminster Channel
Feasibility Study is due for discussion in October and a plan will be selected in January.
Further discussion followed regarding flood insurance.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported on a discussion about the California Special Districts
Association (CSDA) Conference and Gwenn Norton-Perry's departure as Executive
Director of the Orange County Council of Governments(OCCOG).Additionally, he shared
that Jeff Arbour, Environmental Compliance & Closed Site Manager at OC Waste &
Recycling, was the speaker at the 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 Water Advisory Committee
of Orange County (WACO) meeting on October 2, 2015, the Chamber Breakfast on
October 15, 2015, and the CSDA Conference from October 10-13, 2015. Additionally,
she shared that she will be attending a CSDA Legislative Meeting on November 6, 2105
and a CSDA Board Meeting on November 13, 2015.
Discussion followed regarding the October 15 Chamber Breakfast and the District's
economic interest disclosure.
Assistant Secretary Schafer shared that she won a position on the CSDA Executive
Board.
Discussion followed regarding the District's use of staff reports in relation to the Brown
Act and the District's goal of transparency.
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.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
Secretary Ooten reported that he attended the Fire and Police Association Meeting.
Vice President Perry reported that he, President Scheafer, Secretary Ooten, and
Assistant Secretary Schafer attended OCSD's State of the District on October 16, 2015.
He noted that it gave the Board ideas for how they would like to conduct the Costa Mesa
Sanitary Districts State of the District. Additionally, Vice President Perry shared that the
District may want to host the State of the District at the Costa Mesa Country Club as a
separate event from the Chamber Breakfast.
President Scheafer shared that the District may want to consider hosting the State of the
District at District Headquarters, similar to its past Town Hall Meetings.
Vice President Perry requested that the State of the District be put on the agenda at the
next study session.
OLD BUSINESS— None
NEW BUSINESS— None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Scheafer shared that he will be attending the Southern California Waste
Management Forum in Pomona on November 18, 2015. Discussion followed regarding
the Board of Directors attending and driving to the forum together.
Assistant Secretary Schafer noted that she identified potential dates for the District
Holiday Party and would like to find out when the Board is available, so that she can notify
Golden Dragon for the dinner reservation. She added that staff attendance is not
mandatory, but that awards will be given out to staff during the dinner.
President Scheafer shared that he understands that some staff members may not be able
to attend the dinner due to other engagements and priorities.
Noelani Middenway, District Clerk, shared that a survey was sent to staff and 16 staff
members voted to have a lunch, rather than a breakfast or dinner.
Discussion followed regarding the Holiday Party. The Board of Directors noted that the
District will move forward with having a dinner.
Assistant Secretary Schafer added that the potential dates for the dinner are December
9, 10, and 15, 2015.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD OCTOBER 22, 2015
Secretary Ooten requested a chart that shows the monthly organics tonnage collected
since the program began. Discussion followed regarding the trends in recent tonnage
reports.
Secretary Ooten shared that he has noticed CR&R drivers refraining from emptying
organics carts that contain visible contamination, such as plastic bags. Discussion
followed regarding providing this feedback to CR&R.
ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 6:34 P.M.
Robert Ooten Michael Scheafer r
Secretary President