Minutes - Board - 2017-10-26 ye
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 26, 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), Wendy Davis (Finance Manager), Kaitlin Tran (Senior Accountant),
Marc Davis (District Treasurer), Robin Hamers (District Engineer)
Others present
None
Meeting called to order at 5:30 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order
President Scheafer called the meeting to order at 5:30 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 all Board Members
were present.
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Presentation, Procedural: 5. Ceremonial Matters and Presentations
President Scheafer presented a proclamation to District Treasurer, Marc
Davis, of Davis Farr, LLP for being recognized by the Orange County Business
Journal as one of the 50 most community-minded companies in Orange County.
Mr. Davis thanked the Board of Directors and discussed some of Davis Farr's
community-related programs.
Procedural: 6. Announcement of Late Communications
None at this time.
Procedural: 7. Public Comments
President Scheafer opened public comments. Seeing no one 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 September 12, 2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Approve the Board of Directors Regular Meeting Minutes of
September 21, 2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. 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): 5. Adopt Warrant Resolution No. CMSD 2018-04 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2018-04 approving District warrants for the month of September 2017 in the amount of
$2,869,285.87.
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Action (Consent): 6. Approve Payroll Transparency Disclosure for September 2017
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the
amount of $196,985.21 for September 2017 recycling and disposal services in the
October 2017 warrant register
Recommendation: Approve the preparation of a warrant to CR Transfer in the amount of
$196,985.21 for September 2017 recycling and disposal services to be ratified in the
October 2017 warrant register.
Action (Consent): 8. 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
September 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 September 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 October 2017 warrant list.
Action (Consent): 9. Receive and file CCTV (Closed Circuit TV) Program Report
Recommendation: That the Board of Directors receive and file the report.
Motion: To approve the Consent 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.
C. PUBLIC HEARINGS
None at this time.
D. GENERAL MANAGER'S REPORTS
Discussion, Receive and File: 1. Receive and File FY 2015-20 Strategic Plan
Quarterly Update - 1st Quarter
Recommendation: That the Board of Directors receive and file this report.
General Manager, Scott Carroll, presented the Fiscal Year 2015-20 Strategic
Plan Quarterly Update for the 1st Quarter. For clarification, he explained the
significance of each color used in the "Completion Timeline" column of the
report's attachment.
There were no questions or discussion and the report was received.
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Action: 2. Consider Approving Commercial Driver's License Pay
Recommendation: That the Board of Directors approve benefit pay for Wastewater
Maintenance classifications that are required to maintain a valid California Commercial
Driver's License for the performance of their assigned job duties.
Mr. Carroll presented a proposal to consider benefit pay for Wastewater
Maintenance classifications that are required to maintain a valid California
Commercial Driver's License for the performance of their assigned job duties. He
noted that the idea stemmed from an employee satisfaction survey that was
conducted recently by the District. He added that staff conducted research to find
out how much other similar agencies provide as a benefit for these licenses.
Lastly, Mr. Carroll noted that the purpose of this benefit would be to attract and
retain employees.
President Scheafer asked why Santa Margarita Water District provides such a
large benefit for the Class A License.
Mr. Carroll replied that it could be related to union negotiations. He noted that the
District does not require a Class A License for Wastewater Maintenance
classifications.
President Scheafer asked how often the District verifies that staff maintains these
licenses.
Mr. Carroll replied that the licenses are verified quarterly and that the Department
of Motor Vehicles notifies the District if Wastewater Maintenance staff
receive any points on their driving records.
Discussion followed regarding how often staff must re-apply for commercial
licenses.
Mr. Carroll noted that staff is proposing benefit pay of $260 annually, in order to
stay competitive with Irvine Ranch Water District and other local agencies.
Discussion followed regarding when staff will receive the benefit payment, should
the benefit be approved, and the costs of training and obtaining the licenses.
Motion: To approve benefit pay for Wastewater Maintenance classifications that
are required to maintain a valid California Commercial Driver's License for the
performance of their assigned job duties.
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
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There were no further questions or discussion and the recommendation was
approved.
Action: 3. Consider Approving the Costa Mesa Chamber of Commerce
Contribution Application for Costa Mesa Public Safety Recognition Celebration
Event
Recommendation: That the Board of Directors:
1. Establish the purpose CMSD is trying to serve as a contributor to the Costa Mesa
Public Safety Recognition Celebration Event; and
2. Describe how the expenditure will advance CMSD's purpose.
Mr. Carroll presented a Contribution Application that was received from the Costa
Mesa Chamber of Commerce to request $1,000.00 for the Costa Mesa Public
Safety Recognition Celebration. He noted that the Board of Directors must
establish the purpose the District is trying to serve as a contributor and describe
how the expenditure will advance the District's purpose. Mr. Carroll indicated
that the purpose stated on the application does not meet the District's criteria. He
added that the Board of Directors could take the following alternative actions if
they choose not to approve the application: approve a non-monetary contribution,
such as reusable grocery bags, or ask the Chamber to resubmit the application
form with an updated description of how the contribution would benefit the
District.
Secretary Schafer asked if staff considered contributing sharps containers.
Mr. Carroll replied that sharps containers are usually distributed as a service to
residents and they would not necessarily be beneficial to all public safety
employees.
Director Perry asked for confirmation of the event date.
Mr. Carroll noted that he was unsure of the exact date of the event.
President Scheafer indicated agreement with Mr. Carroll that the application did
not specify how the contribution would benefit the District or promote District
programs. He suggested that the District ask the Chamber of Commerce to
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submit an updated application with further information.
Director Perry asked if the District financially contributed to this event previously.
Mr. Carroll replied that the District had not contributed financially, but had
provided promotional items for last year's event.
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Secretary Schafer indicated agreement with President Scheafer's suggestion and
recommended that a letter to be sent to the Chamber of Commerce.
Motion: The Board of Directors directed staff to request additional information
from the Chamber of Commerce on how the District's purpose would be furthered
and bring the item back to a future agenda.
Motion by Arlene Schafer, second by Jim Ferryman.
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: 4. Receive and File the First Quarter Budget Review for FY 2017-18.
Recommendation: That the Board of Directors receive and file this report.
Kaitlin Tran, Senior Accountant, provided report details for the First Quarter
Budget Review for Fiscal Year 2017-18. She noted that 17.2% of the Solid Waste
budget and $43.1% of the Wastewater budget have been expended.
There was no discussion and the Board of Directors received the report.
Action: 5. Carryover Appropriations and Carryover Encumbrances from Fiscal
Year 2016-17 to Fiscal Year 2017-18
Recommendation: That the Board of Directors approve the re-appropriation of funds in
the Fiscal Year 2017-18 for the carryover items from the prior fiscal year as detailed in
Attachments A and B, and summarized as follows:
10 Solid Waste Fund Carryover Appropriations $15,000, Encumbrances $0
20 Wastewater Fund Carryover Appropriations $1,858,225, Encumbrances $101,301
Finance Manager, Wendy Davis, provided report details for the Carryover
Appropriations and Encumbrances from Fiscal Year 2016-17 to Fiscal Year
2017-18.
President Scheafer requested clarification regarding the pump station art wrap
appropriation and its account classification.
Assistant Secretary Ooten requested clarification regarding the President Pump
Station appropriation.
Motion: To approve the re-appropriation of funds in the Fiscal Year 2017-18 for
the carryover appropriation items from the prior fiscal year as detailed in
Attachment A and summarized as follows:
10 Solid Waste Fund Carryover Appropriations $15,000
20 Wastewater Fund Carryover Appropriations $1,858,225
Motion by Arlene Schafer, second by Art Perry.
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Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Motion: To approve the re-appropriation of funds in the Fiscal Year 2017-18 for
the carryover encumbrance items from the prior fiscal year as detailed in
Attachment B and summarized as follows:
10 Solid Waste Fund Carryover Encumbrances $0
20 Wastewater Fund Carryover Encumbrances $101,301
Motion by Bob Ooten, second by Jim Ferryman.
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. Consider Adopting a Citizens Advisory Committee
Recommendation: That the Board of Directors:
1. Adopts Administrative Policy No. 60.00;
2. Give preliminary approval of the Citizens Advisory Committee Handbook; and
3. Authorize staff to finalize the document after receiving District Counsel edits.
Mr. Carroll presented the Administrative Policy and Citizens Advisory Committee
Handbook for the proposed Citizens Advisory Committee (CAC). He noted that
the CAC was brought to the Board of Directors for discussion on September 12,
2017 and that the Board directed staff to research the City of Costa Mesa's
committee policies and procedures and report back with findings. Mr. Carroll
described seven significant changes to the CAC policies that were made after
conducting the requested research. He added that an official policy and
handbook were established and are attached for consideration of approval.
Director Perry requested clarification regarding the recommendation of CAC
members by Board Members, as described in the staff report.
Mr. Carroll noted that the Board of Directors would vote on the appointment
of recommended members.
Secretary Schafer asked if CAC information was distributed during the State of
the District event on October 18, 2017.
Ms. Middenway noted that staff distributed informational material and collected
email addresses from interested individuals.
President Scheafer confirmed that the CAC will be promoted through social
media, the District newsletter, and other available promotional outlets.
Director Perry asked how many members the CAC will have.
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Mr. Carroll noted that the District is hoping to have up to eleven members on the
CAC.
Secretary Schafer asked when the CAC will begin.
Mr. Carroll replied that the CAC will begin on April 1, 2018. He added that the
District will promote the CAC and the Board of Directors will appoint CAC
members prior to this date.
Director Perry requested a copy of the CAC Handbook.
Discussion followed regarding the non-voting Board liaison to the CAC and the
District staff members that would be involved in the CAC.
Secretary Schafer confirmed that the District would need to record minutes and
follow regular meeting notification requirements for the CAC.
Motion: To adopt Administrative Policy No. 60.00, give preliminary approval of
the Citizens Advisory Committee Handbook, and authorize staff to finalize the
document after receiving District Counsel edits.
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: 7. Approve Request for Rate Adjustment for Davis Farr, LLP
Recommendation: That the Board of Directors approve Davis Farr request for a rate
adjustment and direct the General Manager to execute an amendment to the
Agreement between the Costa Mesa Sanitary District and Davis Farr, LLP.
Mr. Carroll presented the requested rate adjustment. He noted that the
adjustment was included in the approved Fiscal Year 2017-18 budget and that
staff is seeking direction to draft an amendment to the current Davis Farr, LLP
agreement to include this rate adjustment.
Motion: To approve Davis Farr's request for a rate adjustment and direct the
General Manager to execute an amendment to the Agreement between the
Costa Mesa Sanitary District and Davis Farr, LLP.
Motion by Art Perry, second by Jim Ferryman.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no questions or discussion.
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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, provided report details. He addressed Assistant
Secretary Ooten's prior comment regarding Project#317 and noted that there will
be an approximate savings of $200,000-$250,000 at the time of the project's
completion.
President Scheafer provided comments regarding the placement of the District's
emergency equipment and shared comments he received after the State of the
District event.
Discussion followed regarding the District's emergency operations plans.
There were no further questions or discussion and the report was received.
F. TREASURER'S REPORTS
Action: 1. Approve Investment Report for the month of September 2017
Recommendation: That the Board of Directors approve Investment Report for the month
of September 2017.
District Treasurer, Marc Davis, provided Investment Report details. He noted that
the total pooled cash and investments are down due to the District's dry period
and the acquisition of the property on Fairview Road.
Discussion followed regarding the collection of general property taxes.
Motion: To approve the Investment Report for the month of September 2017.
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
II
There were no further questions or discussion.
G. ATTORNEY'S REPORTS
Discussion: 1. Provide Update on CR&R Agreement Negotiations - Oral Report
Recommendation: That the Board of Directors receive and file the oral report.
President Scheafer addressed District Counsel, Alan Burns, and indicated that
the Board of Directors may want to go into closed session regarding this item.
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Mr. Burns noted that the District does not have all of the documents necessary to
make a final recommendation to the Board of Directors. He noted that the closed
session item is not agendized. He explained that in order for the Board of
Directors to go into closed session, a motion must be made to address the non-
agendized item and a finding must be made that there is a need for the Board of
Directors to take immediate action (a need that did not exist when the agenda
was prepared).
President Scheafer commented that there may not be a need to take immediate
action if the District does not have all of the necessary information.
Director Perry suggested that a recurring closed session item be added to future
Board Meetings, while the District is in negotiations with CR&R.
President Scheafer asked Mr. Burns which document the District is missing.
Mr. Burns noted that the District is missing Exhibit A from a 2012 agreement
between CR&R and the city in question. He noted that the city in question claims
that the document does not exist.
Discussion followed regarding the urgency of the matter.
The Board of Directors expressed interest in holding a Special Meeting, if
necessary, to resolve the matter.
Mr. Burns provided an update regarding the District's Court of Appeals case
regarding a regional water quality control fine.
There were no further questions or discussion and the report was received.
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.
Discussion: 1. Orange County Sanitation District (OCSD) - (Vice President
Ferryman)
Vice President Ferryman shared that OCSD and Orange County Water District
(OCWD) entered an agreement for the final expansion of the Groundwater
Replenishment System (GWRS). Additionally he added that there were strides
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made in OCSD's negotiations with Orange County Transportation Authority
(OCTA).
Assistant Secretary Ooten shared an update regarding OCSD's Strategic Plan.
Discussion followed regarding OCSD's State of the District Breakfast.
Discussion: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director
Perry)
Director Perry noted that there was no SARFPA meeting.
Discussion: 3. Independent Special Districts of Orange County (ISDOC) -
(President Scheafer)
President Scheafer noted that he and Secretary Schafer attended the Executive
Committee Meeting and the Quarterly Luncheon. He added that ISDOC is in the
process of obtaining non-profit status and discussed an emergency operations
presentation given by a representative from John Wayne Airport.
Discussion: 4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer shared that she attended a CSDA regional tour of Orange
County Water District, Orange County Cemetery District, and the Orange County
Mosquito and Vector Control District. Additionally, she noted attending a meeting
regarding portable restrooms for the homeless with Vice President Ferryman and
a meeting regarding addressing homelessness in Costa Mesa.
Discussion: 5. Special District Risk Management Authority (SDRMA) - (President
Scheafer)
President Scheafer noted that the SDRMA Board Meeting will take place next
week.
Discussion: 6. Other Meetings Qualifying for Reimbursement under CMSD
Ordinance No. 55, Operations Code Section 3.01.030
Director Perry noted attending the Chamber of Commerce Breakfast.
Secretary Ooten noted attending the Water Advisory Committee of Orange County
(WACO) meeting.
I. OLD BUSINESS
None at this time.
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J. NEW BUSINESS
None at this time.
K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Scheafer requested that staff create and distribute a press release for
the Citizens Advisory Committee.
j Assistant Secretary Ooten noted that he joined the Newport-Mesa Unified School
District's (NMUSD) Citizens Oversight Committee.
Director Perry requested an update regarding the inclusion of Mesa Water
District and NMUSD in the discussion of mobile restrooms in Costa Mesa.
President Scheafer noted that he will not be present at the November 14, 2017
Study Session.
L. CLOSING ITEMS
Procedural: 1. Adjourn
President Scheafer adjourned the meeting at 6:45 P.M.
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Arlene Schafer I ael Schea er
Secretary President