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Minutes - Board - 2018-04-04 Hwy o, LI 9 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING APRIL 4,2018 Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Alan Bums (District Counsel), Noelani Middenway (District Clerk), Gina Terraneo (Management Analyst II) Others present Fred Adjarian (El Toro Water District) Meeting called to order at 9:02 A.M. A. Opening Items President Scheafer called the meeting to order at 9:02 A.M. District Clerk, Noelani Middenway, conducted roll call and all Board Members were present. B. Public Comments President Scheafer opened public comments. Seeing no one wishing to speak, President Scheafer closed public comments. C. Reports Action: 1. Nomination Process for OC LAFCO Regular and Alternate Special District Member Seats Recommendation: That the Board of Directors considers the following: 1. Approve authorizing President Mike Scheafer to vote in the Orange County Special District Selection Committee election (regular and alternate member); and 2. Approve designating Vice President Jim Ferryman to serve as the alternate voting member; and 3. Consider nominating Assistant Secretary Bob Ooten for the alternate special district member seat. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 4,2018 General Manager, Scott Carroll, provided report details. He noted that the Orange County Local Agency Formation Commission (LAFCO) is holding special elections for Regular and Alternate Special District Member seats. Mr. Carroll explained that LAFCO is requesting submission of a Declaration of Qualification to Vote Form and a 2018 Nomination Form by April 9, 2018. Director Perry asked who is running for the Regular Special District Member seat. Mr. Carroll responded that Doug Davert of East Orange County Water District, Duane Cave of Moulton Niguel Water District, and Fred Adjarian of El Toro Water District are running for the seat. He added that Jim Fisler of Mesa Water District and Assistant Secretary Ooten are running for the Alternate Special District Member seat. Director Perry asked when the ballots are due to LAFCO. Mr. Carroll noted that the ballots are due on May 25, 2018. Discussion followed regarding recent LAFCO meetings. Assistant Secretary Ooten provided comments about his experience running for the LAFCO Alternate Special District Member seat. Secretary Schafer commented that it is possible for candidates to run for both the Regular and Alternate Special District Member seats at the same time. Motion: To approve authorizing President Michael Scheafer to vote in the Orange County Special District Selection Committee election (regular and alternate member) and to approve designating Vice President Jim Ferryman to serve as the alternate voting member. 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 consider nominating Assistant Secretary Bob Ooten for the alternate special district member seat. 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 Discussion followed regarding Assistant Secretary Ooten's candidacy. There were no further comments or discussion. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 4, 2018 D. Adjourn to Closed Session President Scheafer adjourned the meeting to closed session at 9:11 a.m. to confer with legal counsel regarding the following: Anticipated Litigation — Significant exposure to litigation pursuant to Government Code Section 54956.9(2)- (1 case). District Counsel, Alan Burns, noted that the closed session will include discussion about the "existing facts and circumstances" creating a significant exposure to litigation that are set forth in a letter from Attorney Kevin Shenkman, dated March 26, 2018 and received on March 29, 2018. There were no comments or discussion. E. Closing Items Procedural: 1. Reconvene to Open Session and Report out of Closed Session President Scheafer reconvened the meeting to open session at 9:31 a.m. and reported that the Board of Directors gave direction to their legal representative to obtain more information about the closed session item. President Scheafer opened public comments. Director Fred Adjarian of the El Toro Water District provided comments about his candidacy for the LAFCO Regular Special District Member seat. He noted that he has 42 years of experience in the water industry, 27 years as a General Manager of 5 different agencies, and direct experience with LAFCO processes. Additionally, Director Adjarian stated that he is a proponent for local control by local agencies and thanked the Board of Directors for their time. Discussion followed regarding the available LAFCO Special District Member seats. There were no further comments or discussion. F. Adjournment President Scheafer adjourned the meeting at 9:41 a.m. - A ft Arlene Schafer Mic�ael Scheaf:r Secretary President