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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MAY 25,2017
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), Rob Hamers (District Engineer), Wendy Davis (Finance Manager),
Marc Davis (District Treasurer), Gina Terraneo (Management Analyst I)
Others present
Jim Mosher (resident)
Meeting called to order at 5:29 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order
President Scheafer called the meeting to order at 5:29 P.M.
Procedural: 2. Pledge of Allegiance
President Scheafer led the pledge of allegiance.
Procedural: 3. Invocation
Vice President Ferryman led the invocation.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Procedural: 4. Roll Call
District Clerk, Noelani Middenway, conducted the roll call and all Board Members
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. Seeing no one from the public
wishing to speak, he closed public comments.
B. CONSENT CALENDAR
Action (Consent): 1. Approve Consent Calendar
Recommendation: That the Board of Directors approve the Consent Calendar as
presented.
General Manager, Scott Carroll, noted that staff recommends pulling Items B2
and B3.
District Counsel, Alan Burns, added a recommendation to pull Item B4 in addition
to Items B2 and B3. He explained that the minutes are being pulled in order to
ensure that the adjournments from closed sessions are correctly noted.
President Scheafer indicated that Jim Mosher, a member of the public, requested
that Item B12 be pulled for public comment.
Action (Consent): 5. Directors' Compensation and Reimbursement of Expenses
Recommendation: That the Board of Directors approve the compensation and
reimbursement of expenses as presented.
Action (Consent): 6. Approve Payroll Transparency Disclosure for April 2017
Recommendation: That the Board of Directors approve and file the report.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Action (Consent): 7. Accept the occupancy count as presented as 22,518 and direct
staff to prepare a warrant to CR&R Environmental Services for $220,572.82 for
April 2017 collection.
Recommendation: Accept the occupancy count as presented using 22,518 as the
correct number of active units and direct staff to prepare a warrant to CR&R
Environmental Services for April 2017 collection based on this occupancy report so long
as the contractor fulfills the obligations of the agreement in the amount of $220,572.82
to be ratified in the May 2017 warrant list.
Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the
amount of $189,521.02 for April 2017 recycling and disposal services in the May
2017 warrant register
Recommendation: Approve the preparation of a warrant to CR Transfer in the amount of
$189,521.02 for April 2017 recycling and disposal services to be ratified in the May
2017 warrant register.
Action (Consent): 9. Receive and File Sewer Lateral Assistance Program (SLAP)
Update for April 2017
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 10. Adopt Warrant Resolution No. CMSD 2017-11 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2017-11 approving District warrants for the month of April 2017 in the amount of
$1,078,267.44.
Action (Consent): 11. Approve Investment Report for the Month of April 2017
Recommendation: That the Board of Directors approve the Investment Report for the
month of April 2017.
Motion: To approve the Consent Calendar with the exception of Items B2,
B3, B4, and B12.
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
Mr. Mosher commented that the minutes included in Items B2, B3, and B4
indicated that there was nothing to report after each closed session. He
commented further that the minutes should include the topic of the closed
session items to indicate what was discussed. Additionally, Mr. Mosher provided
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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comments regarding the costs described in the proposed second amendment to
the District's agreement with Roger Faubel Public Affairs in Item B12.
Action (Consent): 2. Board of Directors Study Session Meeting Minutes of April 11,
2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Board of Directors Special Meeting Minutes of April 14, 2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Board of Directors Regular Meeting Minutes of April 27, 2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Motion: To continue Items B2, B3, and B4 to the June 22, 2017 Board of
Directors Meeting.
Motion by Mike Scheafer, second by Arlene Schafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Action (Consent): 12. Roger Faubel Public Affairs, Inc. - Consider Approving
Second Amendment to Agreement
Recommendation: That the Board of Directors considers approving a second
amendment to agreement with Roger Faubel Public Affairs, Inc.
Motion: To approve Item B12.
Motion by Mike Scheafer, 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.
C. PUBLIC HEARINGS
None at this time.
D. GENERAL MANAGER'S REPORTS
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Action: 1. CMSD Contribution Program — Consider contributing $500 to Estancia
Boosters for Stadium Banner
Recommendation: That the Board of Directors:
1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High
School Boosters Program; and
2. Describe how the expenditures will advance CMSD's purpose; and
3. Consider contributing $500 to continue hanging a CMSD banner at Jim Scott
Stadium.
Director Perry recused himself from the meeting at 5:37 P.M. due to his
relationship with Estancia High School.
General Manager, Scott Carroll, presented the request for a contribution of $500
to the Estancia Boosters Program and noted that the Board of Directors must
establish a District purpose that would be served by the contribution.
Discussion followed regarding the banner design.
Motion: To approve the contribution of $500 to the Estancia Boosters Program in
order to continue hanging a banner that promotes the District's Organics
Recycling Program at Jim Scott Stadium.
Motion by Arlene Schafer, second by Mike Scheafer.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer
Abstention: Art Perry
There were no further questions or discussion.
Director Perry re-entered the meeting at 5:50 P.M.
Action: 2. CMSD Contribution Program - Consider contributing $1,000 to the City
of Costa Mesa Silent 4th of July Fireworks Show
Recommendation: That the Board of Directors:
1. Establish the purpose CMSD is trying to serve as a contributor to the proposed silent
fireworks display; and
2. Describe how the expenditures will advance CMSD's purpose; and
3. Consider contributing $1,000 for the proposed silent fireworks display.
Mr. Carroll presented the contribution request for $1,000 for the City of Costa
Mesa's Silent 4th of July Fireworks Show. He noted that the District would
be allowed to place informational materials about District programs at an
information booth during the event.
President Scheafer asked which entity the $1,000 contribution would be going
towards.
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Mr. Carroll noted that the request was made verbally by Councilman John
Stephens, but that it was unclear which entity the contribution would go towards.
Director Perry commented that the request should have been made in writing.
Discussion followed regarding the request being time sensitive and concern
about the entity receiving the contribution.
Vice President Ferryman suggested that the approval be made
contingent upon the entity receiving the contribution.
District Counsel, Alan Burns, noted that the Board of Directors can give Mr.
Carroll the authority to make the judgment to approve the contribution based on
whether the recipient is a valid foundation or legal entity.
President Scheafer indicated agreement that the Board of Directors should give
Mr. Carroll the authority to approve the $1,000 contribution with the contingency
that the contribution is made to the Costa Mesa Foundation rather than to the
City of Costa Mesa.
Discussion followed regarding whether or not a city can receive donations.
Director Perry requested that Mr. Carroll follow up with the Board of Directors
once he finds out which entity would receive the contribution.
President Scheafer opened public comments.
Jim Mosher, a resident, indicated concern about the vagueness of the request
and provided comments about the relevance of the event to the District's
functions.
Discussion followed regarding the event logistics, including the topics of parking
and admission.
Motion: To give Mr. Carroll the authority to approve the $1,000 contribution with
the contingency that the contribution is made to the Costa Mesa Foundation
rather than the City of Costa Mesa.
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.
Action: 3. Preliminary Budget Review For FY 2017-18 and FY 2018-19
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Recommendation: The Board of Directors requests Staff to bring back the Proposed
Biennial Budget for the Fiscal Year 2017-18 and 2018-19 to the June 22, 2017 Board
meeting for adoption.
Finance Manager, Wendy Davis, presented the preliminary budget and noted
that the Board of Directors requested further discussion about the Wastewater
Fund charging the Solid Waste Fund rent for the District headquarters building.
Ms. Davis added that the Solid Waste Fund is being charged $52,800 per year
and noted that the Board of Directors can lower the rent if they choose to.
Director Perry indicated concern with using Solid Waste Funds for rent.
Ms. Davis noted that the Board of Directors intended to utilize Solid Waste
reserves after the implementation of the Organics Recycling Program. She
added that it may be seen as inequitable if the Solid Waste Fund was not
charged for rental of the headquarters building.
President Scheafer indicated agreement with Ms. Davis.
Ms. Davis added that the rent will also help offset the costs of repairs to the
building. She then opened discussion of the proposed purchase of a mobile
generator to provide backup power to the headquarters building.
Discussion followed regarding the generator type, how District staff is notified of
power outages, and the cables needed for the mobile generator.
Assistant Secretary Ooten suggested that staff research the possibility of using
large batteries as an alternative form of backup power.
President Scheafer added that the Board of Directors have also discussed the
use of solar power.
Discussion followed regarding the use of solar energy.
Ms. Davis introduced a discussion of the proposed landscaping and sidewalk
improvements.
Mr. Carroll noted that pedestrians often walk in the street around the District's
headquarters. He recommended the installation of a permeable sidewalk and
drought tolerant landscaping.
Ms. Davis requested that the final discussion topic, the earthquake reserve, be
brought to either a Special Meeting on May 31 or the June 13 Study Session.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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President Scheafer requested that staff provide an assessment of the District's
infrastructure in terms of earthquake preparedness.
District Engineer, Rob Hamers, shared that he could provide an assessment and
noted that the District had a study of its pump stations done.
Ms. Davis noted that staff recommends adopting policies for the earthquake
reserve and asset management. She added that the District has paid off its other
post-employment benefits liabilities, but that the District still has the California
Public Employees' Retirement System (PERS) unfunded liability to pay off. Ms.
Davis specified that these liabilities include approximately $3,300 for the Public
Employees Pension Reform Act (PEPRA) plan, $12,000 for the PERS 2 plan,
and $320,000 for the Classic PERS plan. She added that her minimum request is
that the District pay off the PEPRA and PERS 2 liabilities and contribute
$120,000 toward the Classic PERS liability.
Discussion followed regarding the benefit of paying these liabilities off sooner
rather than later.
Ms. Davis added that staff is proposing an increase in the end salary range of
the SCADA Technician position due to the position being below the current
market value. She noted that there will be no additional cost at this time because
the current staff member is within the existing salary range, but that the
maximum salary of the range would increase.
Director Perry indicated agreement that the position's salary range should
increase to be competitive with the market.
Ms. Davis shared that staff applied for a grant to receive funding for its
Household Hazardous Waste (HHW) programs but did not receive the grant. She
noted that staff is in the process of negotiating with CR&R to provide the HHW
services in lieu of the grant funding.
Discussion followed regarding the District's HHW programs and HHW drop off
locations.
Ms. Davis asked when the Board of Directors would like to discuss the remaining
budget item.
The Board of Directors directed staff to bring the remaining budget item back for
discussion at the June 13 Study Session.
Ms. Davis noted that Assistant Secretary Ooten emailed staff with questions
about the budget. She explained that there are carryovers in the budget for the
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HELD MAY 25,2017
current year's Capital Improvement Projects for any unfinished Grade 5 and
manhole repairs.
Discussion followed regarding the closed circuit television of the wastewater
system, the timeline for the completion of the Master Plan, the force main
evaluation, and the potential solid waste rate increase.
Assistant Secretary Ooten requested that staff provide a schedule indicating
when the solid waste rate increase will occur.
There were no further questions or discussion.
E. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File Capital Improvement Projects Status
Report
Recommendation: The Board of Directors receive and file this report.
District Engineer, Rob Hamers, presented the CIP report.
There were no questions or discussion and the report was received.
F. TREASURER'S REPORTS
Nothing to report at this time.
G. ATTORNEY'S REPORTS
Nothing to report at this time.
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 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.
1. Orange County Sanitation District (OCSD) - (Vice President Ferryman)
Assistant Secretary Ooten shared that he attended the OCSD meeting because
Vice President Ferryman was not able to attend. He noted that the 405 freeway
widening project was discussed.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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District Engineer, Rob Hamers, noted that the project will not impact the District's
wastewater system.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry shared the he, Vice President Ferryman, and Assistant Secretary
Ooten attended the SARFPA meeting. He noted that there was a legislative
report stating that the omnibus bill had passed. Additionally, he shared that he
and Vice President Ferryman are being nominated to be part of the Executive
Committee.
3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer)
President Scheafer shared that ISDOC's Secretary position is open due to Leslie
Keane's resignation. Additionally, he noted that ISDOC was able to decrease
its cost for membership in the Orange County Council of Governments
(OCCOG).
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer provided an updated regarding CSDA's Legislative Days
conference in May. Additionally, she noted that she is running for re-election on
CSDA's Executive Board.
5. Special District Risk Management Authority (SDRMA) - (President Scheafer)
President Scheafer shared that SDRMA's most recent meeting included
presentations regarding investments and workers compensation. Additionally, he
noted that he is up for re-election.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Vice President Ferryman noted that he attended a tour of Costa Mesa's parks
with City Manager, Tom Hatch, and Councilman John Stephens.
President Scheafer shared that he enjoyed presenting rewards to participants of
the Alkaline Battery Recycling Program.
Assistant Secretary Ooten suggested that the District provide parents with
battery collection pails during the next cycle of the Alkaline Battery Recycling
Program.
I. OLD BUSINESS
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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None at this time.
J. NEW BUSINESS
Action: 1. Independent Special Districts of Orange County (ISDOC) - Proposed
Amendments to Bylaws
Recommendation: That the Board of Directors authorizes President Scheafer to cast a
"Yes" vote on behalf of CMSD for approving the bylaw amendments.
General Manager, Scott Carroll, presented the proposed amendments to the
ISDOC bylaws.
Motion: To authorize President Scheafer to cast a "Yes" vote on behalf of CMSD
for approving the bylaw amendments.
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 further questions or discussion.
K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Discussion: 1. Oral Communications and Director Comments
Assistant Secretary Ooten noted that the Orange Coast College Recycling
Center renovation will be complete in July. He added that the District may be
able to use the center's classrooms for the proposed Citizens Environmental
Protection Academy.
Secretary Schafer requested that District staff promote the pump station art
wraps.
President Scheafer noted that the Lions Club Fish Fry will take place from June 2
to 4.
L. ADJOURN TO CLOSED SESSION
President Scheafer adjourned the meeting to closed session at 7:06 P.M. to
confer with Real Property Negotiators (Gov Code §54956.8) for the property
at 2252 Fairview Road, Costa Mesa. The agency negotiator was Scott Carroll
and the other negotiating party was Mike Johnson.
M. RECONVENE TO OPEN SESSION
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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President Scheafer reconvened to open session at 7:32 P.M. He reported that
the Board of Directors authorized the General Manager to make an offer on the
property at 2252 Fairview Road after a 3-2 vote (Ayes: President Scheafer,
Secretary Schafer, Assistant Secretary Ooten; Noes: Vice President Ferryman,
Directory Perry) subject to the terms and conditions of the sale of the property.
N. CLOSING ITEMS
Procedural: 1. Adjourn
President Scheafer adjourned the meeting at 7:33 P.M.
1 ±1' /4/I/
A nre 'chafer 11F 1' Mi•'ael Scheaf
Secretary President