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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
DECEMBER 22, 2016
Members present:
Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Members absent:
None
Staff present:
Scott Carroll (General Manager), Noelani Middenway (District Clerk), Alan Burns
(District Counsel), Robin Hamers (District Engineer), Wendy Davis (Finance Manager),
Marc Davis (District Treasurer), Dyana Bojarski (Management Analyst II), Gina
Terraneo (Management Analyst I)
Others present:
Roger Faubel (Faubel Public Affairs), Peter Whittingham (Curt Pringle &
Associates), Jim Mosher(resident)
Meeting called to order at 5:30 PM
A. OPENING ITEMS
Procedural: 1. Call to Order
President Scheafer called the meeting to order.
Procedural: 2. Pledge of Allegiance
President Scheafer led the Pledge of Allegiance.
Procedural: 3. Invocation
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Vice President Perry offered the invocation.
Procedural: 4. Roll Call
Noelani Middenway, District Clerk, conducted roll call and all members of the
Board of Directors were present.
Procedural: 5. Ceremonial Matters and Presentations
None at this time.
Procedural: 6. Announcement of Late Communications
None at this time.
Procedural: 7. Public Comments
President Scheafer opened public comments.
Jim Mosher, a resident, provided comments regarding the swearing in of
Directors Perry and Ferryman at the Special Meeting held on December 2, 2016.
Additionally, Mr. Mosher commented that he had difficulty finding the District's
wastewater rates on the District website.
Alan Burns, District Counsel, replied to Mr. Mosher's comment and noted that
California state law specifies that elected officers must take office on the first
Friday of December following the election.
Wendy Davis, Finance Manager, noted that the District's rate structure is located
on the Finance page of the District website.
Director Ferryman commented that the website is continually being updated to
improve its transparency.
Art Perry noted that the District's address has not been updated on the Yahoo
search engine.
President Scheafer closed public comments.
B. CONSENT CALENDAR
Action (Consent): 1. Approve Consent Calendar
Recommendation: That the Board of Directors approve the Consent Calendar as
presented.
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Motion: To approve the Consent Calendar as presented.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
C. PUBLIC HEARINGS
None at this time.
D. GENERAL MANAGER'S REPORTS
Action: 1. Approve Board of Directors Nominations and Appointments
Recommendation: That the Board of Directors considers appointing new officers of the
Board, as well as appointing Board members to represent the District on local, regional,
and statewide committees and organizations.
Noelani Middenway, District Clerk, presented report details.
Assistant Secretary Schafer suggested that the Board of Directors appoint
officers once every year rather than once every two years.
Alan Burns, District Counsel, noted that the District could change its code to
reflect an annual officer appointment.
Discussion followed regarding bringing the proposed change to a future Study
Session for further discussion.
Motion: To appoint Mike Scheafer as Board President
Motion by Art Perry, second by Bob Ooten
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Art Perry as Vice President
Motion by Mike Scheafer, second by Arlene Schafer
Final Resolution: No vote was taken and a substitute motion was made.
Substitute Motion: To appoint Jim Ferryman as Vice President
Motion by Art Perry, second by Arlene Schafer
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Arlene Schafer as Secretary
Motion by Art Perry, second by Bob Ooten
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Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Bob Ooten as Assistant Secretary
Motion by Mike Scheafer, second by Jim Ferryman
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Art Perry as Director
Motion by Mike Scheafer, second by Art Perry
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Jim Ferryman as the Orange County Sanitation District
(OCSD) Board Member
Motion by Bob Ooten, second by Arlene Schafer
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Bob Ooten as the Orange County Sanitation District (OCSD)
Alternate
Motion by Art Perry, second by Arlene Schafer
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Art Perry as the Santa Ana River Flood Protection Agency
(SARFPA) Board Member
Motion by Jim Ferryman, second by Arlene Schafer
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To appoint Bob Ooten as the Santa Ana River Flood Protection Agency
(SARFPA) Alternate
Motion by Art Perry, second by Arlene Schafer
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
President Scheafer requested that staff find out if he was appointed as the
Independent Special Districts of Orange County's (ISDOC) representative for the
Orange County Council of Governments (OCCOG).
There were no further questions or discussion.
Action: 2. Approve the 2017 Costa Mesa Sanitary District Meeting Calendar
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Recommendation: That the Board of Directors approve the 2017 meeting calendar as
presented.
Noelani Middenway, District Clerk, presented the 2017 Meeting Calendar and
noted changes made due to holiday closures and scheduling conflicts.
Assistant Secretary Schafer asked if the Newport-Mesa Unified School District
(NMUSD) would be included in future Liaison Meetings.
Discussion followed regarding adding an agenda item about NMUSD's
participation to the upcoming liaison meeting agenda.
Motion: To approve the 2017 meeting calendar as presented.
Motion by Art Perry, second by Arlene Schafer
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
Action: 3. Approve Engineering Technician Position
Recommendation: That the Board of Directors approves and adopts the Engineering
Technician position classification, salary range and job description.
Dyana Bojarski, Management Analyst II, provided report details and described
the classification and duties of the Engineering Technician.
Discussion followed regarding the job description and local schools that may
have curriculum fitting the job requirements.
Motion: To approve and adopt the Engineering Technician position classification,
salary range and job description.
Motion by Bob Ooten, second by Art Perry
Final Resolution: Motion carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
Action, Procedural: 4. Financial Statements for Year Ended June 30, 2016
Recommendation: That the Board of Directors receive and file the Comprehensive
Annual Financial Report, auditors' report in accordance with Government Auditing
Standards, and the auditors' required communication for the year ended June 30, 2016.
Wendy Davis, Finance Manager, presented the Comprehensive Annual Financial
Report (CAFR). She noted that the auditors did not find any significant
deficiencies.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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President Scheafer opened public comments.
Jim Mosher, a resident, provided comments about the District's Popular Annual
Financial Report (PAFR), information presented in the Optimal Governance
Structure Study by Arcadis U.S. Inc., and the location of the financial statements
on the District's website.
President Scheafer closed public comments.
Ms. Davis noted that the financial statements are available on the Finance page
of the District's website.
Secretary Ooten requested that staff provide an updated diversion rate.
Discussion followed regarding the diversion rate and the solid waste budget.
Scott Carroll, General Manager, described the difference between the CAFR and
the PAFR and indicated that the District is one of few agencies that produce a
PAFR.
There was no further discussion and the report was received.
Action: 5. Approve Extending Faubel Public Affairs Agreement
Recommendations:
1. That the Board of Directors considers extending the agreement with Faubel Public
Affairs.
2. That the Board approve the appropriation of $35,000 from fund balance in the solid
waste and $35,000 from contingency in the wastewater fund.
Scott Carroll, General Manager, presented report details and described the work
that Faubel Public Affairs has done for the District.
Discussion followed regarding the consolidation effort by Mesa Water District and
the benefits of maintaining the consulting services.
President Scheafer, Assistant Secretary Schafer, and Vice President
Perry indicated that they would like to see the consulting services continue.
President Scheafer opened public comments.
Jim Mosher, a resident, provided comments regarding the District's contract with
Faubel Public Affairs.
President Scheafer closed public comments.
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Motion: To extend the Agreement with Faubel Public Affairs by 6 months.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To approve the appropriation of $35,000 from fund balance in the solid
waste and $35,000 from contingency in the wastewater fund.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
Action: 6. Grease Control Device Installation Assistance Program
Recommendations: That the Board of Directors:
1. Does not approve a Grease Control Device Installation Assistance Program;
2. Direct staff to continue status quo cleaning of FOG related hot spots; and
3. Continue encouraging Food Service Establishments (FSEs) use best management
practices for Fats, Oil and Grease (FOG)
Scott Carroll, General Manager, presented report details and noted that upon
further analysis the Grease Control Device Installation Assistance Program
would potentially cost more than the status quo cleaning of FOG related hot
spots.
Discussion followed regarding specific hotspots and the definition of term
"significant offenders" as it is used in the staff report.
President Scheafer requested that staff invite EEC to attend a future Study
Session.
Discussion followed regarding the cost of inspections.
Motion: To not approve a Grease Control Device Installation Assistance
Program, direct staff to continue status quo cleaning of FOG related hot spots,
and continue encouraging Food Service Establishments (FSEs) to use best
management practices for Fats, Oil and Grease (FOG).
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
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Action: 7. Adopt Ordinance No. 2016-116 - Authorizing Recent CCTV Inspections
To Be Used For Other Construction Within The Year
Recommendation: That the Board of Directors adopt Ordinance No. 2016-116
Authorizing Recent CCTV Inspections To Be Used For Other Construction Within The
Year.
Scott Carroll, General Manager, presented Ordinance No. 2016-116 and noted
that the District currently requires CCTV Inspection for each construction project
permitted by the District.
Motion: To adopt Ordinance No. 2016-116 Authorizing Recent CCTV Inspections
To Be Used For Other Construction Within The Year.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
Action: 8. Acceptance of Improvements - 290 Paularino Avenue Facility
Improvements
Recommendation: That the Board of Directors approves the following action:
1. Approve Change Orders 34 and 35 totaling $8,237;
2. Accept improvements as completed and file a Notice of Completion;
3. Authorize payment of 5% retention 35 days after Notice of Completion is recorded;
and
4. 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.
Scott Carroll, General Manager, presented the Notice of Completion for the
improvements of 290 Paularino Ave. He noted that the total cost of the building
improvements remains under budget, but additional electrical and HVAC work
totaling $8,237 requires the Board's approval.
Motion: To approve Change Orders 34 and 35 totaling $8,237, accept
improvements as completed and file a Notice of Completion, authorize payment
of 5% retention 35 days after Notice of Completion is recorded, and 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.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
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Action: 9. Approve Estancia High School Baseball Team Contribution Program
Eligibility Application
Recommendation: That the Board of Directors approves the Contribution Program
Eligibility Application from the Estancia High School Baseball Team in the amount of
$500.00.
Vice President Perry recused himself from the vote due to his association with
Estancia High School and stepped out of the meeting at 6:39 P.M.
Scott Carroll, General Manager, presented the contribution request from the
Estancia High School Baseball Team. He noted that the contribution would
include a promotional banner in the baseball outfield.
Motion: To approve the Contribution Program Eligibility Application from the
Estancia High School Baseball Team in the amount of $500.00.
Motion by Art Perry, second by Jim Ferryman.
Final Resolution: Motion Carries 4-0-1 with Vice President Perry recusing himself
from the vote
Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer
Not Present at Vote: Art Perry
Vice President Perry returned to the meeting at 6:43 P.M.
There were no further questions or discussion.
Action: 10. Approve the Costa Mesa Community Run 10th Anniversary
Contribution Program Application
Recommendation: That the Board of Directors considers sponsoring the Costa Mesa
Community Run's 10th Anniversary at the $500 level.
Scott Carroll, General Manager, presented the contribution request from the
Costa Mesa Community Run. He noted that the District has participated in the
event for several years and typically promotes the District's recycling programs at
the event.
President Scheafer shared that Karen Barloon, the Costa Mesa Community
Run's event coordinator, apologized for not being able to attend the meeting.
Motion: To sponsor the Costa Mesa Community Run's 10th Anniversary at the
$500 level.
Motion by Bob Ooten, second by Arlene Schafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
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There were no further questions or discussion.
Action, Receive and File: 11. Project #313 Victoria Pump Station Force Main
Replacement Budget Transfer
Recommendation: That the Board approve the transfer of $133,000 from President
Pump Station Rehab Project #317 to Victoria Force Main Upgrade Project #313.
Scott Carroll, General Manager, presented report details and noted that there is
not currently enough funds in the Project #313 budget to award the contract to
the lowest bidder (plus a 10% contingency). He added that if the Board approves
the budget transfer of $133,000, he will approve the proposal from Robin B.
Hamers & Associates, Inc. for contract administration and inspection services.
Discussion followed regarding the District's force main replacement projects.
Motion to transfer $133,000 from President Pump Station Rehab Project #317 to
Victoria Force Main Upgrade Project#313.
Motion by Jim Ferryman, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
E. ENGINEER'S REPORTS
Action, Receive and File: 1. Project Status Report
Recommendation: The Board of Directors receive and file the report.
Rob Hamers, District Engineer, presented report details and offered to answer
any questions.
There were no questions or discussion and the report was received.
Action: 2. Acceptance of Improvements - Project #200-B Harbor Pump Station
Sewer Force Main Replacement
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.
Rob Hamers, District Engineer, presented the Notice of Completion and
described Project#200-B.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Motion: To accept improvements as completed and file a Notice of Completion,
authorize payment of 5% retention 35 days after Notice of Completion is
recorded, and 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.
Motion by Bob Ooten, second by Arlene Schafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no questions or discussion.
Action: 3. Project #313 Victoria Pump Station Force Main Replacement; Bid
Opening and Award of Contract
Recommendation: That the Board of Directors:
1. Award a contract to the lowest responsive and responsible bidder, GCI Construction,
Inc. in the amount of $377,620.
2. Approve a contingency of 10% in the amount of $37,762.
Rob Hamers, District Engineer, presented the bid results for Project#313.
Motion: To award a contract to the lowest responsive and responsible bidder,
GCI Construction, Inc. in the amount of $377,620 and to approve a contingency
of 10% in the amount of$37,762.
Motion by Arlene Schafer, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no questions or discussion.
F. TREASURER'S REPORTS
Nothing to report at this time.
G. ATTORNEY'S REPORTS
Alan Burns, District Counsel, provided updates regarding an amendment to state
law about executive compensation decisions, a Supreme Court hearing about the
use of private devices for public business, and the delivery of the CalTrans
settlement check.
H. LOCAL MEETINGS:
In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a
Director for any meeting for which expense reimbursement of any kind is provided.
Note: For meetings for which the per diem compensation is sought, the Operations
Code provides that such compensation is authorized for each day's service rendered as
COSTA MESA SANITARY DISTRICT PAGE 12
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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a Director at the request of the Board (not to exceed six days in one month), and
certain meetings are specified as being eligible as set forth in District Operations Code
§ 3.01.030. For meetings not so listed, the Board must approve the service for it to be
eligible for the per day compensation.
Information: 1. Orange County Sanitation District (OCSD) - (Director Ferryman)
Director Ferryman noted that the Mayor of Fullerton was elected as Chairman of
OCSD. Additionally, he noted that improvements were proposed for an industrial
building that OCSD owns in Stanton, CA.
Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Vice President
Perry)
Nothing to report at this time.
Information: 3. Independent Special Districts of Orange County (ISDOC) - (President
Scheafer)
President Scheafer noted that the 2017 calendar was approved and the speaker
for the January 26, 2017 meeting will be Michelle Steel.
Information: 4. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Assistant Secretary Schafer noted that she was re-elected as Secretary of the
CSDA Executive Board.
Information: 5. Special District Risk Management Authority (SDRMA) - (President
Scheafer)
Nothing to report at this time.
Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
President Scheafer shared that he attended meetings with Ed Gilmet
(resident) and Charley Wilson (Santa Margarita Water District Board Member
and Local Agency Formation Commissioner).
Vice President Perry reported that he attended the Costa Mesa City Council
Special Meeting and the Water Advisory Committee of Orange County (WACO).
COSTA MESA SANITARY DISTRICT
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Discussion followed regarding sending letters to congratulate all of the local
newly elected officials.
I. OLD BUSINESS
None at this time.
J. NEW BUSINESS
None at this time.
K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Secretary Ooten reiterated his request to receive an update rearding the
District's diversion rate and to have EEC attend a future Study Session.
Scott Carroll, General Manager, noted that he will present the updated diversion
rate at the February Study Session.
Assistant Secretary Schafer congratulated Directors Perry and Ferryman on their
re-election.
Director Ferryman shared that his brother passed away last week.
President Scheafer thanked staff and the Board of Directors and wished
everyone happy holidays.
L. ADJOURN TO CLOSED SESSION
M. RECONVENE TO OPEN SESSION
N. CLOSING ITEMS
Procedural: 1. Adjourn
President Scheafer adjourned the meeting at 7:11 P.M.
Arlene Schafe— Mi. ael Scheaf:r
Secretary President