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Minutes - Board - 2011-06-23COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE23, 2011 CALL TO ORDER PLEDGE OF ALLEGIANCE INVOCATION ° ROLL CALL The Board of Directors of the Costa Mesa Sanitary District met in regular session on June 23, 2011 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. Director Ferryman led the Pledge of Allegiance. Director Scheafer led the Invocation. DIRECTORS PRESENT: Robert Ooten, James Ferryman, Mike Scheafer, Jim Fitzpatrick, Art Perry DIRECTORS ABSENT: STAFF PRESENT: Scott Carroll, General Manager; Joan Revak, Office Manager /Clerk of the District; Robin B. Hamers, District Engineer; Alan Burns, District Counsel; Sherry Kallab, Administrative Manager; Jacque Rogers, Assistant to Treasurer OTHERS PRESENT Dean Ruffridge, CR &R Inc. George Lazurak, CR &R Inc. Debbie Morris, HF &H Consultants, LLC • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 2 ANNOUNCEMENT OF LATE COMMUNICATIONS There were no late communications. CONSENT CALENDAR REPORTS MINUTE APPROVAL Minutes of Sewer System Committee Meeting — May 17, 2011 The Minutes of the Sewer System Committee Meeting of May 17, 2011 were approved as corrected. Minutes of Recycling Committee Meeting The Minutes of the Recycling Committee May 23, 2011 Meeting of May 23, 2011 were approved as corrected. Minutes of Branding Committee Meeting The Minutes of the Branding Committee held May 25, 2011 Meeting of May 25, 2011 were approved as distributed. Minutes of Regular Board Meeting — May The Minutes of the Regular Board Meeting of 26, 2011 May 26, 2011 were approved as distributed . Minutes of Special Meeting — June 2, 2011 ENGINEER'S REPORTS Project Status Report Occupancy Report and Payment of $197,124.92 to Costa Mesa Disposal — May 2011 Contract Payment of $164,953.57 to CR Transfer —May 2011 The Minutes of the Special Meeting of June 2, 2011 were approved as distributed. The Project Status Report dated May 2011 was accepted as submitted. The Trash Occupancy Count documented an increase of one unit for the occupancy report for solid waste collection as of June 1, 2011. Therefore, the total for June is 21,531 and the payment of $197,124.92 was ratified. The contract payment of $164,953.57 to CR Transfer for recycling services and disposal for the month of May 2011 was ratified as submitted. • • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 3 Contract Payment of $10,462.80 to CR Transfer — Santa Ana Heights /Newport Beach — May 2011 Warrant Register for the month of May 2011 in the amount of $612,525.19 Directors Compensation & Reimbursement of Expenses for the month of May 2011. The contract payment of $10,462.80 to CR Transfer for recycling services and disposal for Santa Ana Heights /Newport Beach for the month of May 2011 was ratified as submitted. Warrant Resolution #CMSD 2011 -12 was approved, authorizing the President and Secretary to sign the warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $612,525.19. Director Compensation and Expense Reimbursements for the month of May 2011 were approved and ratified as follows: President Ooten: $1,326.00 Vice President Ferryman: $1,326.00 Director Scheafer: $1,326.00 + $57.87 Director Fitzpatrick: $1,326.00 + $55.00 Director Perry: $1,326.00 Investment Report for the month of The Investment Report for the month of May 2011 May 2011 was approved as submitted. AGREEMENTS Third Amendment to Agreement — TRC The Third Amendment to the Agreement with TRC is extended until June 30, 2012. First Amendment to Agreement - EEC The First Amendment to the Agreement with EEC is extended to June 30, 2012. END OF CONSENT CALENDAR Mr. Burns requested the signature line of the minutes of the May 17, 2011 Sewer System Committee meeting and the May 23, 2011 Recycling Committee be corrected to reflect the approval signature of the Committee's Directors and not the President and Secretary of the Board of Directors. Director Scheafer moved COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 4 to accept the Consent Calendar with the requested changes. Director Ferryman seconded the motion. Motion carried 5 -0. WRITTEN COMMUNICATIONS There were no written communications. PUBLIC COMMENTS There were no public comments. PUBLIC HEARING President Ooten opened the Public Hearing to consider the annual charges for Solid Waste and Liquid Waste. There was no public present. Ms. Revak advised notices of the public hearing were published in the Daily Pilot on June 9 and 16, 2011. Director Fitzpatrick questioned the public hearing and lack of a dialog or justification for the rates. Vice President Ferryman stated the rates have been discussed at previous meetings available to the public. CMSD Resolution No. 2011 -796 Adopting Annual Charges for Solid Waste was presented. Director Ferryman moved to adopt CMSD Resolution No. 2011 -796 Adopting Annual Charges for Solid Waste. Director Perry seconded the motion. Motion carried 4 -1. CMSD Resolution No. 2011 -797 Adopting Annual Charges for Liquid Waste was presented. Director Ferryman moved to adopt CMSD Resolution No. 2011 -797 Adopting Annual Charges for Solid Waste. Director Perry seconded the motion. President Ooten called for discussion. Director Fitzpatrick stated his objection to the lack of justification for the rates and no plan of communicating to the public. Motion carried 4 -1 President Ooten closed the public hearing. PUBLIC COMMENTS President Ooten invited public comments. There were no public comments. • • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 5 GENERAL MANAGER'S REPORTS CALPERS UPDATE Mr. Carroll reported on his research into the possibility of amending the District's contract with CaIPERS to establish a two tier pension plan with new employees hired after July 1, 2011 receiving a benefit formula of 2% at 60 while current employees benefit would remain at the existing formula of 2% at 55. The Board of Directors previously directed Staff to research the possibility of adopting a formula similar to the Orange County Sanitation District with 1.667% at 57.5 for new District employees. Research found CaIPERS does not offer a formula similar to the OCSD plan. Staff recommended the Board of Directors direct Staff to prepare resolutions to amend the District's contract with CaIPERS for new employees hired after July 1, 2011 to receive the benefit formula of 2% at 60. Director Perry moved to direct Staff to return to the Board at the July 28, 2011 regular Board meeting with a resolution to amend the CMSD contract with CaIPERS. Director Scheafer seconded the motion. Motion carried 5 -0. AMENDMENT AND RECERTIFICATION OF SSMP Mr. Carroll reported an internal audit report of the. District's Sewer System Management Plan (SSMP) was provided by Environmental Engineering & Contracting, Inc. (EEC). There were minor nonconformance issues identified by EEC and amendments to the SSMP have been incorporated into the document. Mr. Carroll provided a strike through copy of the SSMP for the Board to view the amendments. Mr. Carroll recommended the Board of Directors approve the amendment and recertification of the Costa Mesa Sanitary District Sewer System Management Plan. Director Perry moved to accept the amendment and recertification of the Costa Mesa Sanitary District Sewer System Management Plan. Director Scheafer seconded the motion. Motion carried 5 -0. STANDING COMMITTEES Mr. Carroll stated the Board of Directors has established several standing committees that meet on a regular basis and these committees must comply with the Brown Act. Most committees have two appointed Board members but there have been occasions where as many as three Directors have been appointed to a committee such as the Sewer System Committee. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 6 Mr. Carroll recommended the Board of Directors appoint an alternate Board member to the Sewer System, Recycling and Branding Committees; and to withdraw the appointments to the Sewer System Sub - Committee. The following standing committees have been established by the Board of Directors: • Sewer System — President Ooten, Chair, and Directors Ferryman and Perry • Recycling — Director Fitzpatrick, Chair, and a rotating Director • Investment Oversight — Two Directors are assigned to attend this quarterly meeting on a rotating basis The Branding Committee was established at a Special Board meeting on March 17, 2011 as an ad hoc for achieving branding distinctions, and will meet as determined by Committee member. This Committee will eventually disband after achieving its objective. Mr. Burns provided a memo on the Brown Act's application to committees. Mr. Burns stated if the meeting is a standing committee meeting with two Board members on the committee and another Director attends, the Director may attend but will not be allowed to participate in the meeting. Director Fitzpatrick stated he would like to attend the sewer committee meetings to learn and stay abreast of sewer activities and questioned what would happen if the Board does not follow the Brown Act. Discussion was held on violations of the Brown Act. Mr. Hamers reported the Sewer System Committee originally appointed two Directors to the Committee. Vice President Ferryman stated the committees were established to give the Board advice on special subjects and, If necessary, a special meeting can be called. Mr. Carroll requested clarification on the status of the Branding Committee and it was determined the Branding Committee would be an ad hoc committee. Mr. Burns recommended bringing the subject back to the next regular meeting to make permanent decisions on "Committees" • • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 7 AMEND ALTERNATE DISTRICT ENGINEER'S RESPONSIBILITIES Mr. Carroll provided a proposed Ordinance to eliminate the need for an Alternate District Engineer. The Board was previously served by a Manager /District Engineer who fulfilled both roles of Manager and Engineer for the District. The previous Manager- District Engineer was required to prepare and recommend the District's capital improvement plan (CIP); and the previous Manager- District Engineer was the principal in his own engineering firm, creating the potential for conflict issues and public perception concerns with any attempt to recommend a CIP which increased the paid work for his firm. To ensure that _ conflicts would not occur, the Board established an independent review process that required an independent Alternate District Engineer to review those CIPs for appropriateness and reasonableness of cost. As a result of a reorganization of the District, the manager and engineer functions are now separate, and the District now employs a full - time General Manager while continuing to retain a private engineer as its District Engineer. The District's General Manager is experienced in public works matters and is competent to independently review the CIP from a management perspective and make recommendations to the Board regarding the same. Therefore, the need for an Alternate District Engineer is eliminated. Director Perry moved to adopt CMSD Ordinance No. 84, Amending Section 3.01.045 of the Operations Code Pertaining to the Alternate District Engineer. Director Scheafer seconded the motion. Motion carried 5 -0. CONTRACT ASSIGNMENT AND ADDENDUM No. 3 —WASTE MANAGEMENT Mr. Carroll stated the Agreement for a Household Hazardous Waste (HHW) program expires on June 30, 2011. Mr. Carroll recommended the Board of Directors approve the Contract Assignment and approve Addendum No. 3 to the Agreement with WM Curbside, LLC thereby extending the term for an additional one -year period expiring on June 30, 2012. Mr. Carroll explained, Waste Management, on October 11, 2010, successfully purchased the assets of Curbside and assumed the role of door -to -door HHW collection services as WM Curbside, LLC. A Contract Assignment between CMSD, Curbside and WM Curbside was provided. Mr. Carroll explained, due to the diligent work of District Counsel, the contract provides additional assurance to CMSD that WM Curbside is not just taking the assets of Curbside and disavowing the liabilities (e.g. claims for illegal dumping of hazardous materials). The contract protects CMSD from such liabilities. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 8 Mr. Ruffridge stated CR &R made a proposal to the District several years back to collect household hazardous waste. CR &R provides the service to four cities in Orange County and would be happy to expand their services to CMSD. Discussion was held on extending the contract to allow more residents to participate in the program. Director Fitzpatrick moved to (1) approve the Contract Assignment and (2) approve Addendum No. 3 to the Agreement with WM Curbside, LLC, extending the term for an additional one -year period expiring on June 30, 2012, provided the original contract contains a short-term termination clause. Director Perry seconded the motion. Motion carried 5 -0. ATTENDANCE AT SWANA ANNUAL CONFERENCE, NASHVILLE, TENNESSEE Mr. Carroll announced the District was selected to receive the 2011 Bronze Education Excellence Award from SWANA (Solid Waste Association of North America) for its Telephone Book Recycling Program, and to publicly honor the District for their outstanding achievements and contributions at the SWANA Awards Brunch to be held in conjunction with the program activities of WASTECON 2011, August 23 -25, in Nashville, Tennessee. Mr. Scott reported the conference would cost approximately $1,600 per person. Director Fitzpatrick and Director Scheafer stated they would like to attend. Mr. Hamers stated Ms. Revak has managed the school program since its inceptionl5 years ago and should be a part of the award acceptance. Agreement by the Board of. Directors was expressed. President Ooten stated Ms. Revak should be designated to accept the award. Director Fitzpatrick stated justification for attendance by Board and Staff includes the fact that it is the District's first national award, and the opportunity to participate is consistent with the District's Strategic Plan. The Board gave approval for Directors Fitzpatrick and Scheafer and Ms. Revak to attend the conference. RECYCLING COMMITTEE Director Fitzpatrick reported on the Recycling Committee meeting held on June 20, 2011. Director Scheafer requested changing the meeting date of the Recycling Committee meetings. Mr. Carroll stated Staff will look into providing some alternate dates for the regular Recycling Committee meetings as well as changing the July 2011 meeting date. • • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 9 ENGINEER'S REPORTS Mr. Hamers stated he had nothing to report. SEWER SYSTEM COMMITTEE Mr. Hamers reported on the Sewer System Committee meeting held June 14, 2011. TREASURER'S REPORTS Ms. Rogers stated she had nothing to report. ATTORNEY'S REPORTS Mr. Burns stated he had nothing to report. CLERK OF THE DISTRICT REPORTS CMSD RESOLUTION No. 2011 -798, ORDERING THAT PUBLICATION OF ORDINANCE No. 82 HAS OCCURRED Ms. Revak presented CMSD Resolution No. 2011 -798, Ordering that Publication of Ordinance No. 82 Amending Section 4.03.010 of the Operations Code has occurred. Director Perry moved to approve CMSD Resolution No. 2011 -798. Director Scheafer seconded the motion. Motion carried 5 -0. CMSD RESOLUTION No. 2011 -799, ORDERING THAT PUBLICATION OF ORDINANCE No. 83 HAS OCCURRED Ms. Revak presented CMSD Resolution No. 2011 -799, Ordering that Publication of Ordinance No. 83 Adding Section 6.02.050, Section 6.02.060, Section 6.02.080, Section 6.02.090 and Chapter 6.09 Damage to District Property, has occurred. Director Perry moved to approve .CMSD Resolution No. 2011 -798. Director Scheafer seconded the motion. Motion carried 5 -0. SEWER REFUND - PARCEL #427 - 291 -01 B6 Ms. Revak reported on an overpayment of sanitary assessment charges on parcel number 427 - 291 -01, 3158 Red Hill Avenue for the past nine years. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 10 The owner was erroneously charged fees using the calculation of the land area instead of the structure improvement area. The land area of 56.541 square feet is more than twice the structure improvement area of 21.328 square feet. Ms. Revak provided documentation received from the property owner. District Counsel opined that 2010 -2011 sanitary assessment should be refunded, however, as the statute of limitations ran out on previous years, refunds of overpayments for years prior to 2010- 2011 could constitute a gift of public funds and should not be issued. The total overpayment for the past nine years is $8,192.64 and the refund for property tax year 2010/2011 in the amount of $1,356.41 is being processed by the County. The remaining total overpayment, $6,836.23 for property tax years 2002 -2010, is requested by Ms. Kincaid. Director Scheafer moved to deny the request for a refund of property taxes paid for tax years 2002 -2010, in keeping with the District's Operation Code that it could be perceived as a gift of public funds. Director Ferryman seconded the motion. The motion carried 5 -0. The refund for property tax year 2010 -2011 in the amount of $1,356.41 was processed by the County. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) Director Ferryman reported on the OCSD meeting held on June 22, 2011. The Board approved a proposed, revised budget of $405,724,550. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry reported on the meeting of the Santa Ana River Flood Protection Agency held on June 23, 2011 at 4:00 p.m. Confirmation of the appointment of Herbert I. Nakasone as SARFPA's Executive Director was made. The Vice Chair is Cathy Green. Election of Officers for FY 2011 -2012 was held. A review and approval of the 2011 -2012 SARFPA budget occurred. A video of Seven Oaks Dam testing was presented by Lance Natsuhara. Status of the Westminster Watershed Feasibility Study was presented by Lance Natsuhara. A field trip to Prado and Seven Oaks Dam was proposed. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 11 INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) Ms. Revak reported on the ISDOC Quarterly Meeting and Luncheon scheduled for Thursday, June 30, 2011 and requested names of those planning to attend. The program will feature Todd Spitzer, former State Assemblyman, County Supervisor and Assistant District Attorney who will speak on the subject of Government Transparency & Accountability: The Changing Dynamics of Public Service. Vice President Ferryman and General Manager Scott Carroll will attend. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) Ms. Revak reported the CASA 56th Annual Conference is being held August 10 -13, 2011 in San Diego, and requested names of those planning to attend so that hotel reservations can be made. All Board members plan to attend the CASA conference and Ms. Revak will make the reservations. SPECIAL DISTRICT & LOCAL GOVERNMENT INSTITUTE ADMINISTRATION SEMINAR - JUNE 9 -11, 2011 (DIRECTORS OOTEN, FERRYMAN, SCHEAFER, FITZPATRICK AND PERRY) President Ooten reported he will submit a written report on the conference. Discussion was held on contingency plans for the District in the event of an emergency. The Board requested knowledge of their role and Staffs role should an emergency occur. Mr. Carroll stated the Board previously adopted an Emergency Operations Plan. In theory, whoever is the first one at headquarters is in charge until the General Manager arrives. Staff will be scheduling Emergency Operations training as the Board does have a role in the event of an emergency. Mr. Burns stated the Operations Code, Chapter 10.03 spells out succession plans and who takes over in the event of an emergency. Mr. Carroll stated Staff members have received SIMs and NIMs training and are certified as having completed the training and testing. Director Scheafer and Fitzpatrick stated the education value received at the Administration conference and the other Directors agreed. The Directors expressed the desire to attend the Finance conference administered by. the Special District & Local Government Institute Administration. • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 12 MEETING WITH BOB GHIRELLI OF OCSD Director Fitzpatrick reported on a meeting he and General Manager Scott Carroll had with Bob Ghirelli of OCSD on the subject of an anaerobic digester. OLD BUSINESS Director Perry questioned the suspension of the summer large item collection. Mr. Carroll reported the Board approved this at one of the budget meetings held earlier. Director Perry and Vice President Ferryman expressed concern as this is such a popular program with residents. NEW BUSINESS SDRMA 2011 -12 INVOICE IN THE AMOUNT OF $57,900.44 Ms. Revak presented the SDRMA 2011 -12 Invoice in the amount of $57,900.44 and pointed out the District received the maximum number of points to reduce the amount of dues. Director Scheafer moved to approve payment to SDRMA in the amount of $57,900.44. Director Ferryman seconded the motion. Motion carried 5 -0. SDRMA 2011 ELECTION Ms. Revak presented CMSD Resolution No. 2011 -800 for the Election of Directors to the Special District Risk Management Authority Board of Directors. The SDRMA ballot calls for voting for three of the candidates for the position. Director Fitzpatrick moved to endorse the candidacy of Mike Scheafer and Director Perry seconded the motion. Motion carried 5 -0. As the ballots are not due until September, the Board will consider the other candidates and make a decision on voting for two other candidates at the July 2011 regular Board of Directors meeting. PROPOSED CSDA BYLAWS AMENDMENTS Ms. Revak presented the proposed CSDA Bylaws Amendments for voting by the CMSD Board of Directors. The recommended changes only affect one section of the bylaws, Article VIII — Local Chapters. The main reason for the proposed change to the bylaws is to require all newly formed chapters to have 100% of their members as dues paying members of the state association (CSDA) as well. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2011 PAGE 13 Director Perry moved to adopt the 2011 Proposed CSDA Bylaws Amendments. Director Scheafer seconded the motion. Motion carried 5 -0. SPECIAL MEETING - CALPERS RESOLUTION TO REVISE BENEFITS FOR NEW HIRES Ms. Kallab requested a meeting date be set for a Special Meeting on adopting a proposed CaIPERS Resolution to Revise Benefits for New Hires. The date of July 11, 2011 at 10:00 a.m. was set. (To be noted: It was later decided the July 11, 2011 meeting would not be necessary.) ORAL COMMUNICATIONS AND DIRECTOR COMMENTS ADJOURNMENT President Ooten adjourned the meeting at 8:06 p.m. • President