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Minutes - Board - 2017-07-27 / 5A�4 Ipf tr \ { = ASI y' . sa \cOi_otit .-- COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JULY 27, 2017 Members present Arlene Schafer, Art Perry, Bob Ooten, James Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk), Alan Burns (District Counsel), Jacque Rogers (District Treasurer), Robin Hamers (District Engineer), Gina Terraneo (Management Analyst I) 1 I Others present David Vazquez (Vanguard University), Pat Courter (Newport-Mesa Schools Foundation) Meeting called to order at 5:37 P.M. A. OPENING ITEMS Receive and File: 1. Call to Order President Scheafer called the meeting to order at 5:37 P.M. Procedural: 2. Pledge of Allegiance President Scheafer led the pledge of allegiance. Procedural: 3. Invocation Vice President Ferryman led the invocation. Procedural: 4. Roll Call District Clerk, Noelani Middenway, conducted roll call and President Scheafer, Vice President Ferryman, Assistant Secretary Ooten, and Director Perry were r COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 present. Ms. Middenway noted that Secretary Schafer would be arriving late to the meeting. 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, 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. Action (Consent): 2. Approve the Board of Directors Study Session Meeting Minutes of June 13, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. Approve the Board of Directors Special Meeting Minutes of June 22, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve the Board of Directors Regular Meeting Minutes of June 22, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 5. Approve the preparation of a warrant to CR Transfer in the amount of $220,455.22 for June 2017 recycling and disposal services in the July 2017 warrant register Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $220,455.22 for June 2017 recycling and disposal 1 services to be ratified in the July 2017 warrant register. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 Action (Consent): 6. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 7. Approve Payroll Transparency Disclosure for June 2017 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 8. Approve Sewer Lateral Assistance Program (SLAP) Update Recommendation: That the Board of Directors approve and file the report. Action (Consent): 9. Adopt Warrant Resolution No. CMSD 2018-1 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2018-1 approving District warrants for the month of June 2017 in the amount of $1,394,072.82. Action (Consent): 10. 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 June 2017 collection. Recommendation: That the Board of Directors 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 June 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 July 2017 warrant list. Action (Consent): 12. Approve Investment Report for the Month of June 2017 Recommendation: That the Board of Directors approve the Investment Report for the month of June 2017. Motion: To approve the Consent Calendar as presented. Motion by Art Perry, second by Jim Ferryman. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer absent. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Not Present At Vote: Arlene Schafer Action (Consent): 11. Approve Vacating CMSD Sewer and Easement North of 1580- 1590 Scenic Avenue Recommendation: That the Board of Directors: 1. Re-approve vacating the sewer facilities and easement as shown in the attached quitclaim deed. 2. Approve and record the attached quitclaim deed with the legal description and map as attachments. 3. Require the property owner to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 4. Require the property owner to enter into a Hold Harmless Agreement, attached hereto, as prepared by attorneys for both parties. I 5. At the meeting, the Board advised CJ Segerstrom that they will be charged the engineering and legal fees borne by the District for this action. District Counsel, Alan Burns, requested to pull Item B11 for discussion after a vote was already taken for the approval of the Consent Calendar. President Scheafer requested permission for further discussion from the maker of the original motion, Director Perry, and the seconder of the motion, Vice President Ferryman. Director Perry and Vice President Ferryman confirmed permission for further discussion. President Scheafer re-opened Item B11 for discussion. Mr. Burns noted that he is currently in negotiations with the attorney for CJ Segerstrom & Sons to expand the indemnification language in the agreement. President Scheafer asked if it would be appropriate to pull the item and continue it to the next Board Meeting. District Engineer, Robin Hamers, recommended that the Board of Directors approve the item, subject to Mr. Burns' negotiation of the agreement language, as the agreement will remain substantially the same. Mr. Burns concurred with Mr. Hamers' recommendation and described the nature of the expansion of the indemnification language. President Scheafer noted that the approval would be contingent upon the acceptance of the agreement by CJ Segerstrom & Sons. Mr. Burns confirmed that the agreement would be brought back to the Board of Directors if rejected by CJ Segerstrom & Sons. Motion: To approve item B11, contingent upon the acceptance of the agreement by CJ Segerstrom & Sons. Motion by Art Perry, second by Jim Ferryman. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer absent. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Not Present At Vote: Arlene Schafer There were no further questions or discussion. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 C. PUBLIC HEARINGS None at this time. D. GENERAL MANAGER'S REPORTS Discussion: 1. Receive and File FY 2015-20 Strategic Plan Quarterly Update -4th Quarter Recommendation: That the Board of Directors receive and file this report. General Manager, Scott Carroll, presented the Strategic Plan Quarterly Update. He noted that the number of sewer hotspots has decreased to 23 and that the District is being considered for a grant from Orange County Waste & Recycling (OCW&R) to supplement its Anti-Scavenging Program, Organics Recycling Program, and the Citizens' Environmental Protection Academy. Mr. Carroll added that, if awarded, the grant project covers a 5-year period and is partially funded by OCW&R and partially funded by the District. Director Perry asked how much lockable carts cost. Mr. Carroll responded that they cost approximately $75 each. President Scheafer opened public comments. Seeing no one wishing to comment, he closed public comments. There were no further questions or discussion and the report was received. Action: 2. Consider Contribution Program Application for Newport-Mesa Schools Foundation's State of the Schools Breakfast Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Newport-Mesa Schools Foundation; and 2. Describe how the expenditures will advance CMSD's purpose; and 3. Consider contributing $1,000 for the State of the Schools Breakfast. General Manager, Scott Carroll, presented the Contribution Program Application and requested that the Board of Directors specify a District purpose that will be served if the Board of Directors wish to approve the contribution. He presented a list of potential promotional messages that applicants can share in their publications in exchange for the contribution. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 President Scheafer suggested that the Newport-Mesa Schools Foundation promote the District's Alkaline Battery Recycling Program at the State of the Schools Breakfast. Pat Courter, President of the Newport-Mesa Schools Foundation, shared that this will be the Foundation's fourth State of the Schools Breakfast and that it will be held at Costa Mesa High School. She noted that the Foundation can promote the Alkaline Battery Recycling Program. President Scheafer described the Alkaline Battery Recycling Program. Director Perry asked if the Foundation distributes a program for the event. Ms. Courter noted that a program is distributed and that she will coordinate with District staff to promote District programs. Vice President Ferryman suggested that the District promote the Christmas Tree Recycling Program in addition to the Alkaline Battery Recycling Program. The Board of Directors concurred that sponsoring the State of the Schools Breakfast would advance the District's purpose by utilizing the event program to promote the Battery Recycling Program and the Christmas Tree Recycling Program, as well as featuring the District's name and logo on the Foundation website and the welcome sign. Secretary Schafer entered the meeting at 5:49 P.M. President Scheafer opened public comments. Seeing no one wishing to comment, he closed public comments. Motion: To approve the contribution of$1,000 for the State of the Schools Breakfast in exchange for promotion of the District's Alkaline Battery Recycling Program and Christmas Tree Recycling Program. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer abstaining. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Abstention: Arlene Schafer There were no further questions or discussion. Action: 3. Consider Contribution Program Application for the Harbor-Mesa Lions Club Murder 3rd Annual Mystery Dinner Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Harbor-Mesa Lions Club; and COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 2. Describe how the expenditures will advance CMSD's purpose; and 3. Consider contributing $500 for the 3rd Annual Murder Mystery Dinner. General Manager, Scott Carroll, presented the Contribution Program Application and requested that the Board of Directors specify a District purpose that will be served if the Board of Directors wish to approve the contribution. He presented a list of potential promotional messages that applicants can share in their publications in exchange for the contribution. Secretary Schafer asked District Counsel, Alan Burns, if she is required to abstain from the vote since she is a member of the Harbor-Mesa Lions Club. Mr. Burns noted that there is no legal requirement for her to abstain from the vote. Secretary Schafer indicated that she would not abstain from the vote. Director Perry indicated concern with the amount requested. Secretary Schafer noted that the event is a fundraiser for local organizations and that the Harbor-Mesa Lions Club could publicize the District. President Scheafer commented that the Contribution Application did not indicate that the event would have a program or publication. Secretary Schafer noted that the event will have a program. Mr. Burns and Mr. Carroll reiterated the recommendation to include a promotional message in the event program if the Board of Directors wishes to approve the contribution. President Scheafer recommended using the following message if the Board of Directors approves the contribution: "Please do your part to protect the environment. Recycle your food scraps. Visit www.cmsdca.gov to learn more." Vice President Ferryman commented that the District should promote the Organics Recycling Program. Director Perry indicated concern that the contribution would not advance the District's purpose and that approving the contribution may set a precedent for approving vague contribution applications. President Scheafer opened public comments. Seeing no one wishing to comment, he closed public comments. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27, 2017 Motion: To approve a contribution of $350 for the 3rd Annual Murder Mystery, contingent upon District messaging being included in the event program. Motion by Jim Ferryman, second by Arlene Schafer. Final Resolution: Motion Fails 2-3 Aye: Arlene Schafer, Jim Ferryman No: Art Perry, Bob Ooten, Mike Scheafer There were no further questions or discussion. Action: 4. Consider Contribution Program Application for Vanguard University's 21st Annual Christmas Fantasia Concerts Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to Vanguard University; and 2. Describe how the expenditures will advance CMSD's purpose; and 3. Consider contributing $2,500 for the 21st Annual Christmas Fantasia Concerts. General Manager, Scott Carroll, presented the Contribution Program Application and requested that the Board of Directors specify a District purpose that will be served if the Board of Directors wish to approve the contribution. He presented a list of potential promotional messages that applicants can share in their publications in exchange for the contribution. { President Scheafer asked if the District contributed to this event last year. Mr. Carroll confirmed that the District contributed to the event last year. Secretary Schafer indicated support for contributing to the event due to the numerous attendees. President Scheafer noted that the application does not appear to be filled out in the item attachment. District Clerk, Noelani Middenway, presented the completed application on the projector screen. David Vazquez, Vanguard University Director of External Relations, introduced himself and described the Christmas Fantasia Concert event. Discussion followed regarding the religious tone of the event and whether the District can contribute to a faith-based organization. District Counsel, Alan Burns, noted that as long as the message of the university is not adopted as the message of the District, the District can contribute. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 Discussion followed regarding utilizing the concert program, Vanguard Magazine, social media, and printed and digital materials to promote the District's programs. President Scheafer asked if Mr. Vazquez would coordinate with District staff to put together a promotional message. Mr. Vazquez confirmed that he would coordinate with District staff to incorporate District messaging into the promotional materials. Director Perry asked what the sponsors would receive at the $1,500 sponsorship level. Mr. Vazquez described the $1,500 and $2,500 sponsorship levels. President Scheafer suggested that Vanguard students be invited to participate in the District's upcoming Citizen's Environmental Protection Academy. Mr. Vazquez added that Vanguard University would be interested in a larger partnership with the District. The Board of Directors concurred that sponsoring the Christmas Fantasia p 9 Concert would advance the District's purpose by utilizing the event program, digital and printed promotional materials, Vanguard Magazine, and social media postings to promote the Christmas Tree Recycling Program. Motion: To approve a contribution of $2,500 for the 21st Annual Christmas Fantasia Concerts, contingent upon District messaging being included in the concert's promotional materials. Motion by Jim Ferryman, second by Arlene Schafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer No: Art Perry There were no further questions or discussion. Action: 5. Consider Changing CMSD Operational Hours at Headquarters Recommendation: That the Board of Directors approve changing the operational hours at Headquarters to Monday through Thursday from 7:30 A.M. to 5:00 P.M. and Friday from 7:30 A.M. to 4:00 P.M. with every other Friday being closed to the public. General Manager, Scott Carroll, noted that staff was directed to place this item on the Board Meeting agenda during the July 18, 2017 Study Session. He noted that the Board of Directors directed staff to research the possible implementation of e-plan check and online payment functions. Mr. Carroll shared that the City of Newport Beach is in the process of implementing an e-plan check process, but COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27, 2017 District staff is unsure how long it will take to implement. He added that the parent company of the District's accounting and permitting software, Accela, has an e-plan check function, and that staff will do further research about the function once Finance Manager, Wendy Davis, returns from vacation. Lastly, Mr. Carroll recommended that the Board of Directors provide direction as to whether the District hours will remain the same (7:30 A.M. to 4:30 P.M. Monday through Thursday and 7:30 A.M. to 3:30 P.M. every other Friday) or be extended by one half hour daily to account for closing every other Friday (7:30 A.M. to 5:00 P.M. Monday through Thursday and 7:30 A.M. to 4:00 P.M. every other Friday). Director Perry indicated support for the e-plan check and online payment processes. The Board of Directors directed staff to maintain the current operational hours, but to close Headquarters every other Friday once the e-plan check and online payment processes are implemented. President Scheafer requested that staff give the public ample notice before implementing the change. Mr. Carroll noted that if the Board of Directors approve the recommended change in operational schedule, then District staff will contact Accela to obtain a proposal on the e-plan check system and then notify the public about the change. He added that the process may take several months to implement before the change would take place. Director Perry suggested that the change be publicized in the District's Quarterly Newsletter. Discussion followed regarding the proposed operational hours. Motion: To approve maintaining the operational hours at Headquarters (Monday through Thursday from 7:30 A.M. to 4:30 P.M. and Friday from 7:30 A.M. to 3:30 P.M.) and changing the operational schedule to be closed to the public every other Friday. 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. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 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, Robin Hamers, presented the Capital Improvement Projects Status Report and offered to answer any questions. Director Perry asked how the District has reduced the number of hotspots to 23. Mr. Hamers noted that hotspots are different from Grade 5 sewer pipe sections. He noted that the District is in Phase 9 of fixing Grade 5s. Vice President Ferryman suggested that the District create a press release or an article in the Quarterly Newsletter about the District's improvement and maintenance of wastewater infrastructure. President Scheafer complimented District staff on the recent Daily Pilot article about pump station art wraps and the District's Facebook page. There were no further questions or discussion and the report was received. F. TREASURER'S REPORTS Nothing to report at this time. G. ATTORNEY'S REPORTS District Counsel, Alan Burns, asked if the Board of Directors are receiving e-mails through their District accounts. Director Perry noted that the Board of Directors will utilize their District accounts once they are able to take their iPads home. Discussion followed regarding the Board of Directors' iPads. 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 COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 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) - (Vice President Ferryman) Vice President Ferryman noted that he attended an OCSD Board Meeting. He added that OCSD purchased a building and is in the process of purchasing another building for the construction of their new administrative offices. Director Perry shared that OCSD's State of the District will take place on Friday, November 17 at 8:00 A.M. at Milesquare Golf Course. Vice President Ferryman added that OCSD hired Brent Ives to update their Strategic Plan. Assistant Secretary Ooten noted that OCSD has made progress in their negotiations with Orange County Transportation Authority (OCTA). Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry noted that there was no SARFPA meeting this month. Information: 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) President Scheafer noted that he was not able to attend the last ISDOC meeting. Secretary Schafer noted that ISDOC has a new Board Secretary. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared information about the CSDA Annual Conference in Monterey. She noted that she is running for re-election on the CSDA Executive Board and that the election results will be available on August 7. Lastly, she added that she plans to meet with the Costa Mesa Fire Chief to discuss legislation and provide a tour of the District's headquarters. President Scheafer shared that he attended the Special Districts Leadership Foundation's (SDLF) workshop in Napa and noted that they did not offer refresher courses like they did in the past. He added that CSDA is staying updated on the proposed consolidation effort by Mesa Water District. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 Information: 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer noted that the SDRMA Board Meeting will take place next week. He added that he is up for re-election and the results will not be available until August. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer noted that he and Director Perry attended a Water Advisory Committee of Orange County (WACO) Meeting. Director Perry shared that he will report on the WACO Meeting at the next meeting because he did not have his notes present. I. OLD BUSINESS None at this time. J. NEW BUSINESS None at this time. K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Procedural: 1. Oral Communications and Director Comments Director Perry asked how the Board of Directors plan to travel to Monterey for the CSDA Conference. Discussion followed regarding the Board of Directors' travel plans for the CSDA Conference and the conference schedule. President Scheafer asked District Counsel, Alan Burns, if it would be appropriate to speak about the public records request submitted to the District by Mesa Water District. Mr. Burns noted that it was not included in the agenda, but that the Board of Directors could make comments on the subject. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 27,2017 President Scheafer commented that he found it odd that a request was made for any correspondence between himself and his personal attorney. He noted that he does not discuss District business with his personal attorney. Discussion followed regarding the process of replacing Mesa Water Board President, Ethan Temianka. L. CLOSING ITEMS Procedural: 1. Adjourn President Scheafer adjourned the meeting at 6:35 P.M. i i I c1.0-tic ( 124-t ., Arlene Schafer Micha "Scheafer ' I Secretary President