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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 28, 2016
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
April 28, 2016 at 5:30 P.M. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF President Scheafer led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION President Scheafer 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 Bums,
District Counsel; Robin Hamers, District
Engineer; Wendy Davis, Finance Manager;
Marc Davis, District Treasurer; and Noelani
Middenway, District Clerk.
OTHERS PRESENT: Greg Ridge, resident and Orange County
League of Conservation Voters (OCLCV).
CEREMONIAL MATTERS AND PRESENTATIONS—NONE
ANNOUNCEMENT OF LATE COMMUNICATIONS—NONE
PUBLIC COMMENTS
President Scheafer opened public comments and invited Greg Ridge, a Costa Mesa
resident and Orange County League of Conservation Voters (OCLCV) representative,
to address the Board of Directors.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Mr. Ridge provided commentary regarding the upcoming OCLCV Awards Banquet on
May 6, 2016 at the University Club at the University of California, Irvine.
Vice President Perry made a motion to discuss the non-agenda item proposing the
Board of Directors' attendance of the OCLCV Awards Banquet. Assistant Secretary
Schafer seconded the motion, which carried unanimously with a 5-0 vote. The item died
for lack of a motion.
Seeing no other members of the public, President Scheafer closed public comments.
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of March 8, 2016 Meeting Minutes of March 8, 2016 was
approved as presented.
2. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of March 24, 2016 Minutes of March 24, 2016 was approved
as presented.
3. Occupancy Report and Payment to The Board of Directors accepted the
CR&R Environmental Services occupancy count as presented using
22,372 as the correct number of active
units and directed staff to prepare a
warrant to CR&R Environmental Services
in the amount of$219,142.69 to be ratified
in the April 2016 warrant list, for March
2016 collection.
4. Contract Payment to CR&R The Board of Directors approved payment
Environmental Services for to CR&R Environmental Services in the
Recycling & Disposal Services amount of $194,382.93 for recycling and
disposal services for the month of March
2016.
5. Adoption of Warrant Resolution No. The Board of Directors adopted Warrant
CMSD 2016-10 Approving District Resolution No. CMSD 2016-10 approving
Warrant Registers District warrants for the month of March
2016 in the amount of$939,634.27.
6. Payroll Transparency Disclosure for The Board of Directors approved the
March 2016 Payroll Transparency Disclosure for March
2016 as presented.
7. Directors' Compensation and The Board of Directors approved the
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Reimbursement of Expenses Directors' Compensation and
Reimbursement of Expenses for March
2016 as presented.
8. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
Vice President Perry made a motion to approve the Consent Calendar. Director
Ferryman seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
END OF CONSENT CALENDAR
PUBLIC HEARINGS—NONE
GENERAL MANAGER'S REPORTS
9. Art Wraps for Wastewater Pump Station Control Panels
Recommendation: That the Board of Directors approves the recommendation
from the Ad Hoc Committee and appropriate $7,300 from the Wastewater
Contingency Fund to support this program.
Scott Carroll, General Manager, presented staff's recommendation to appropriate
$7,300 from the Wastewater Contingency Fund to support the wrapping of 8 pump
station control panels through an art contest among local students.
Vice President Perry made a motion to approve the appropriation of $7,300 from the
Wastewater Contingency Fund to support the Art Wrap program. Assistant Secretary
Schafer seconded the motion, which carried unanimously with a 5-0 vote.
There were no further questions or comments.
10. Extension and Amendment to Employee Lending Agreement with Orange
County Sanitation District (OCSD)
Recommendation: That the Board of Directors approves the Agreement
allowing OCSD staff to service as CMSD's Alternate District Engineer.
Mr. Carroll presented an overview of the proposed Employee Lending Agreement with
OCSD for the Alternative District Engineer, Rudy Davila. He noted that the agreement
term is one year in length, with the option to extend for three additional one-year terms.
Lastly, Mr. Carroll added that if the Board of Directors approves the agreement, OCSD
will present the agreement to their Board of Directors on May 25, 2016.
Discussion followed regarding the length and frequency of Mr. Davila's work.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Vice President Perry made a motion to approve the Agreement allowing OCSD staff to
service as the Alternative District Engineer. Secretary Ooten seconded the motion,
which passed unanimously with a 5-0 vote.
There were no further questions or comments.
11. FY 2015-16 Budget Review—Third Quarter
Recommendation: That the Board of Directors receive and file the report.
Finance Manager, Wendy Davis, presented the third quarter budget review and noted
changes in staffing, as well as the upcoming opening of the Anaerobic Digestion
Facility.
There were no further questions or discussion and the report was received.
12. Third Quarter FY 2015-20 Strategic Plan Report
Recommendation: That the Board of Directors receive and file the report.
Scott Carroll, General Manager, presented the quarterly Strategic Plan update and
noted that since the last quarter, the following four goals have been completed: 1.1
Manhole Cover Maintenance Program, 5.1 Develop a Future Plan for Operational
Facilities Adequacy, 7.2 Develop a Long Term Capital Improvement Program (CIP), and
7.7 Create a Popular Report and Upload Document on the District's Website.
There were no further questions or discussion and the report was received.
13. Cit' of Newport Beach Encroachment Agreement for Emergency Generator at
23ra Street Pump Station
Recommendation: That the Board of Directors approve the Encroachment
Agreement.
Scott Carroll, General Manager, presented the Encroachment Agreement for the
emergency generator at the 23rd Street pump station. He noted that the generator will
be fully operational by next week.
Secretary Ooten made a motion to approve the Encroachment Agreement. Vice
President Perry seconded the motion, which passed unanimously with a 5-0 vote.
There were no furtherq uestions or comments.
ENGINEER'S REPORTS
14. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
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District Engineer, Robin Hamers, presented the Project Status Report and displayed
two photos: a photo of a 35-year-old valve that will be replaced during Project #202
Elden Piping and Valve Replacement and a photo of the 23rd Street Pump Station
generator.
Discussion followed regarding the regular inspection and maintenance of valves.
Mr. Hamers noted that Project #202 Elden Piping and Valve Replacement will start on
May 15, 2016 and Project#200-B Harbor Force Main will start on June 1, 2016.
There were no further questions or comments and the report was received.
15. Conflict of Interest Report
Nothing to report at this time.
There were no questions or discussion.
16. Project #311 Sewer Manhole Surface Repair Program — Phase II — 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 35 days after Notice of Completion
is recorded and exonerate Faithful Performance Bond one year after
Notice of Completion is recorded.
District Engineer, Robin Hamers, presented the Notice of Completion for Project #311
Sewer Manhole Surface Repair Program.
Secretary Ooten made a motion to accept the improvements as completed and file a
Notice of Completion, authorize the payment of 5% retention 35 days after the Notice of
Completion is recorded, and exonerate the Labor and Materials Bond 35 days after the
Notice of Completion is recorded and exonerate the Faithful Performance Bond one
year after the Notice of Completion is recorded. Vice President Perry seconded the
motion, which passed unanimously with a 5-0 vote.
Discussion followed regarding how to address the future replacement of Grade 4
manholes.
There were no further questions or comments.
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TREASURER'S REPORTS
17. Resolution No. 2016-880 - Intent to Lease-Purchase Financing
Recommendation: That the Board of Directors adopt Resolution No. 2016-880
authorizing the execution and delivery of an installment sale agreement, and
authorizing and directing certain actions in connection with the acquisition of an
administrative facility.
District Treasurer, Marc Davis, presented Resolution No. 2016-880 to move forward
with the lease purchase financing of the new administrative facility through the
California Special Districts Association (CSDA) Finance Corporation. He noted that the
resolution would delegate signing authority to the Board President, General Manager, or
other designees, and that CSDA Finance Corporation would be able to fund the lease
purchase by June 30, 2016.
Discussion followed regarding the escrow closing date of the new administrative facility.
Assistant SecretarySchafer made a motion to adopt Resolution No. 2016-880. Vice
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President Perry seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
18. Investment Report for the Month of March 2016
Recommendation: That the Board of Directors approves the Investment Report
for the month of March 2016.
District Treasurer, Marc Davis, presented the report details and noted that the weighted
average stated rate of return for the District's investment portfolio was 1.167%.
Additionally, Mr. Davis expanded upon the District's pending ability to put funds into
CaITRUST through wire transfer.
Secretary Ooten made a motion to approve the Investment Report for the month of
March 2016. Vice President Perry seconded the motion, which passed unanimously
with a 5-0 vote.
There were no further questions or comments.
ATTORNEY'S REPORTS- NONE
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD)— (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman provided an overview of the OCSD meeting on April 27, 2016. He
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noted that Troy Edgar, Blake Anderson, and Mary Sue Thompson will have their names
added to the honor walk at a ceremony before the next Board Meeting on May 26,
2016. Additionally, Director Ferryman noted that East Orange County Water District was
approved to acquire the sewer system in North Tustin/East Orange.
B. Santa Ana River Flood Protection Agency (SARFPA)— (Vice President Perry)
Recommendation: That the Board of Directors accepts oral report.
Vice President Perry shared that there was no SARFPA meeting this month.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer provided an overview of the ISDOC meeting and noted that the
meeting on May 3, 2016 has been moved to May 10, 2016.
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer noted that CSDA's Legislative Days are coming up on May
16-18, 2016.
E. Special District Risk Management Authority(SDRMA)— (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported that the next SDRMA meeting will take place next week.
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.
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Secretary Ooten noted that he went to the Water Advisory Committee of Orange County
(WACO) meeting on April 1, 2016, which focused primarily on legislative updates.
Vice President Perryadded that he also attended the WACO meetingon April 1, 2016,
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and shared information regarding the drought and drought legislation.
Assistant Secretary Schafer shared that she attended the Costa Mesa Community Run
on April 23, 2016.
OLD BUSINESS—NONE
NEW BUSINESS—NONE
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ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Scheafer provided comments regarding a letter from the Board President of
Mesa Water District, Shawn DeWane, asking the District to participate in a joint study
about consolidation.
Vice President Perry requested that a letter be sent to Greg Ridge (OCLCV) to thank
him for his invitation to the Awards Banquet and provide an update regarding the
District's Organics Recycling Program and the opening of the Anaerobic Digestion
Facility in Perris, CA.
President Scheafer requested that CR&R be contacted regarding updating the signage
on their organics collection trucks.
ADJOURN TO CLOSED SESSION
19. Discuss litigation with legal counsel pursuant to Government Code Section
54956.9: Costa Mesa Sanitary District v. Santa Ana Regional Water Quality
Control Board, OCSC#
20. Conference with Real Property Negotiators
Property: 628 W. 19th Street, Costa Mesa
Agency Negotiators: Scott Carroll and Jack Faris
Negotiating Parties:
1. Daniel Webb, MacJones Holdings LLC;
2. Mohammad Gharavi Ghouchani;
3. Livia de los Rios
4. Peter J. Shea
Under Negotiation: Price and terms of payment
President Scheafer adjourned to closed session at 6:45 P.M.
RECONVENE TO OPEN SESSION
President Scheafer reconvened to open session at 7:01 P.M. and indicated that there
was no reportable action for Item 19. In regards to Item 20, he noted that the Board of
Directors reached an agreement to sell the building at 628 W. 19th Street, Costa Mesa.
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ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 7:02 P.M.
( 41`41( CQA)-3L- I
Robert Ooten Mic-lel Sche.'e(
Secretary President