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Minutes - Board - 2018-12-20COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING DECEMBER 20, 2018 Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Alan Burns (District Counsel), Marc Davis (District Treasurer), Noelani Middenway (District Clerk), Kaitlin Tran (Senior Accountant), Dyana Bojarski (Management Analyst II), Gina Terraneo (Management Analyst II) Others present Laura Kalty (Liebert Cassidy Whitmore), Jim Mosher (resident) Meeting called to order at 5:31 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Scheafer President Scheafer called the meeting to order at 5:31 P.M. r Procedural: 2. Pledge of Allegiance - President Scheafer President Scheafer led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Ferryman Vice President Ferryman led the Invocation. Procedural: 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 District Clerk, Noelani Middenway, conducted roll call and noted that all Board Members were present. Procedural: 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. General Manager, Scott Carroll, shared that Jim Mosher, a resident, provided comments via e-mail and copies of these comments were provided to the Board of Directors and to the public. He noted that District staff responded to Mr. Mosher's comments regarding the minutes and Item D5 on tonight's agenda. Mr. Carroll added that District Counsel, Alan Burns, will address Mr. Mosher's comments regarding Items G1 and G2 during that portion of tonight's meeting. Procedural: 6. Ceremonial Matters and Presentations President Scheafer presented lapel pins to recognize Secretary Schafer's, Vice President Ferryman's, and his own years of service to the District. He noted that they each have 20 years, 30 years, and 10 years of service respectively. Vice President Ferryman presented a plaque to President Scheafer for his leadership during his 4 year tenure as President of the Board of Directors. B. Public Comments Procedural: 1. Public Comments President Scheafer opened public comments. Seeing no one wishing to speak, he closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of November 13, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Special Meeting Minutes of November 26, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Action (Consent), Minutes: 4. Approve the Board of Directors Regular Meeting Minutes of November 29, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 5. 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): 6. Approve the preparation of a warrant to CR Transfer in the amount of $205,120.47 for November 2018 recycling and disposal services in the December 2018 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $205,120.47 for November 2018 recycling and disposal services to be ratified in the December 2018 warrant register. Action (Consent): 7. Accept the occupancy count as presented as 22,702 and direct staff to prepare a warrant to CR&R Environmental Services for $222,375.17 for November 2018 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,702 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for November 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,375.71 to be ratified in the December 2018 warrant list. Action (Consent): 8. Adopt Warrant Resolution No. CMSD 2019-6 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2019-6 approving District warrants for the month of November 2018 in the amount of $801,310.18. Action (Consent): 9. Approve and file the Payroll Transparency Disclosure for November 2018 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 10. Approve the Investment Report for the Month of November 2018 Recommendation: That the Board of Directors approve the Investment Report for the month of November 2018. Assistant Secretary Ooten commented that he thought Item C5 was not complete. He requested that staff look into this. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 President Scheafer concurred and noted that both attachments for the item were the same. Motion: To approve the Consent Calendar as presented. 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 comments or discussion. D. GENERAL MANAGER'S REPORTS Receive and File: 1. Receive and file the 2019 Certified Election Results Recommendation: That the Board of Directors receive and file this report. Ms. Middenway presented the 2019 certified election results for Directors Scheafer, Schafer, and Ooten. She congratulated the Directors and noted that this item is meant to be received and filed. President Scheafer asked when the Directors will receive their checks for their candidate statements. Director Perry commented that it may take a couple of months. There was no further discussion and the report was received. Action: 2. 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. Ms. Middenway noted that per the District's operations code, it is now an appropriate time for the Board of Directors to nominate and appoint officers. Motion: To nominate and appoint Jim Ferryman as President. 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 Motion: To nominate and appoint Bob Ooten as Vice President. 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 nominate and appoint Arlene Schafer as Secretary. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Motion by Jim Ferryman, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Perry verified that the District eliminated the position of Assistant Secretary. Director Scheafer passed the gavel to President Ferryman and they agreed to switch seats at the next meeting. Ms. Middenway noted that appointments should be made for the District's representatives and alternates on the Orange County Sanitation District (OCSD) Board of Directors and the Santa Ana River Flood Protection Agency (SARFPA) Committee Members. Motion: To nominate and appoint Jim Ferryman as the District's representative on the OCSD Board of Directors. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Motion: To nominate and appoint Bob Ooten as the District's alternate representative on the OCSD Board of Directors. 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 Motion: To nominate and appoint Art Perry as the District's representative on the SARFPA Committee. Motion by Jim Ferryman, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Motion: To nominate and appoint Jim Ferryman as the District's alternate representative on the SARFPA Committee. Motion by Mike Scheafer, 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. Action: 3. Consider Approving the Costa Mesa Sanitary District 2019 Meeting and Office Closure Calendar Recommendation: That the Board of Directors approve the Costa Mesa Sanitary District 2019 Meeting and Office Closure Calendar as presented. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Ms. Middenway presented the 2019 Meeting and Office Closure Calendar, which includes Study Sessions, Regular Board Meetings, Liaison Committee Meetings, and Citizens Advisory Committee (CAC) Meetings. She noted that the calendar only includes the first CAC meeting of the year, because the CAC will be considering changing its meeting schedule from monthly to quarterly meetings. Ms. Middenway added that she will provide an updated calendar to reflect the CAC's decision. Lastly, she noted that the Board Meetings in September, November, and December have been moved from the 4th Thursday of the month to the 3rd Thursday of the month to avoid conflicts with the California Special Districts Association's annual conference and the holidays. Director Perry verified that a correction was made to the date of the December Study Session. Vice President Ooten asked if the CAC's meeting schedule will require Board approval. Ms. Middenway noted that it does not require Board approval. Director Scheafer shared that he attended the last CAC meeting and commented that the CAC may need to be reminded that they are not tasked with giving the Board of Directors items to decide on, but rather they should be providing their input on District programs. He added that the monthly meetings put a lot of stress on District staff and noted that they were initially asked to meet quarterly. He also noted that he will be attending their January meeting. Director Perry asked when the new group of CAC Members will begin their term. Ms. Middenway confirmed that the 6 new CAC Members will begin their term on April 1st. Director Scheafer asked if the monthly one-on-one meetings with the General Manager will be included in this calendar. Ms. Middenway noted that those meeting dates will be provided on a separate calendar, since the 2019 Meeting and Office Closure Calendar only pertains to public meetings. Secretary Schafer asked if the Board needs to appoint a representative for the Independent Special Districts of Orange County (ISDOC). Director Scheafer explained that Secretary Schafer was elected as Second Vice President of ISDOC and therefore does not need to be nominated and appointed to ISDOC. He noted that her appointment to ISDOC continues. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Discussion followed regarding other District Ad Hoc Committees and the Board Members that represent the District on those committees. There was no further discussion and the report was received. Action: 4. Citizens Advisory Committee (CAC) December 12, 2018 Meeting Overview Recommendation: That the Board of Directors approve the Costa Mesa Sanitary District 2019 Meeting and Office Closure Calendar as presented. Mr. Carroll presented an overview of the December 12, 2018 CAC Meeting and welcomed questions. Director Perry asked if the CAC Members attend every meeting. Mr. Carroll noted that the CAC Member attendance is high and consistent. Director Perry asked how many Board Members attend the CAC meetings. Mr. Carroll noted that it varies, but either Director Scheafer or Secretary Schafer usually attend the CAC meetings. Director Scheafer commented that he gets the impression that the CAC likes having Board Members present to share in discussion. He also commented that his only disappointment with the CAC is that they seem to feel like they are telling the Board of Directors what to do, whereas his vision was to have the CAC provide input on things that the District does. Secretary Schafer commented that the CAC seems to feel that their recommendations should always be taken. She stressed the importance of reminding the CAC that the Board of Directors makes the final decisions. President Ferryman suggested that the Board sit down with the CAC and share their expectations. Vice President Ooten suggested that the CAC go over the purpose of the committee. Mr. Carroll noted that the CAC was given a CAC Handbook, which explains the purpose and policy associated with the CAC. He noted that District staff can remind them to review the handbook. President Ferryman and Director Scheafer noted that they appreciate the work that the CAC has done. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Discussion followed regarding how to reiterate the purpose of the CAC to the CAC. Director Perry suggested that President Ferryman meet with Chair Carey to go over the CAC Handbook. Mr. Carroll noted that a CAC Member orientation can be scheduled once the new CAC Members are appointed. There was no further discussion and the report was received. Action: 5. Consider Acquiring One Twelve Cubic Yard Wastewater Combination Cleaning Truck from Haaker Equipment Company for $411,364 Recommendation: That the Board of Directors approves acquiring One Twelve Cubic Yard Wastewater Combination Cleaning Truck from Haaker Equipment Company for $411,364 and Direct Staff to issue a Purchase Order. Mr. Carroll noted that this item was discussed at the December Study Session. He shared that the District's two current wastewater cleaning vehicles are unreliable due to unanticipated repairs and the wastewater crew faces challenges in meeting their cleaning goal for the year. He explained that District staff recommends the purchase of a twelve cubic yard wastewater combination truck from Haaker Equipment Company for $411,364. Mr. Carroll noted that there are safety concerns regarding the transfer case on the vehicles that the District currently has, and he noted that the recommended truck can engage the transfer case with the touch of one button. He shared that District staff researched the cost of adding an extended warranty to the vehicle (per the Board's request) and found that an extended warranty of 3 years would cost about $8500 and an extended 5 year warranty would cost about $17,000. He also noted that District staff researched the idea of compressed natural gas (CNG) vehicles at the Board's request. Mr. Carroll noted that the District is not required to use CNG trucks, but he noted that City of Newport Beach staff shared that they have had issues with the limited fuel capacity of CNG trucks. He also shared that Haaker Vactor trucks are widely used and preferred in the wastewater industry, but he noted that they are not without issues. However, Mr. Carroll commented that staff believes that Haaker Vactor trucks have less issues than other brands that were researched. He shared that this recommendation was brought to the CAC for review and the CAC made recommendations that the District look into getting an extended warranty or leasing a truck rather than purchasing. Mr. Carroll sought the Board's direction regarding the CAC's recommendations and reiterated staffs recommendation. Director Perry indicated support for purchasing the extended 5 year warranty. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 209 2018 Secretary Schafer asked for Mr. Carroll's opinion. Mr. Carroll commented that he believes the 5 year warranty is a good idea. Discussion followed regarding possible combinations of extended warranties that may result in a lower cost. Director Perry commented that it would be costly if the District faced an emergency and did not have an available wastewater truck to respond to the emergency. Director Scheafer commented that he is not in favor of leasing things and noted that owning the truck is his preference. Vice President Ooten reiterated that Vactor trucks are preferred in the wastewater industry and confirmed that the truck would be funded through the Asset Replacement Fund. A resident, Jim Mosher, provided comments. He commented that his understanding was that the CAC would provide non-binding public input about the items that came before them. He noted that the GAC requested to see a comparison between the costs of leasing versus buying a truck, as well as a comparison between the regular maintenance costs and the costs of unexpected repairs faced by the District's current wastewater trucks. Mr. Mosher also noted that the CAC requested to know how the vehicles are depreciated within District accounting. He noted that the staff report attachment regarding depreciation is missing the most recent two years of depreciation. President Ferryman requested that District staff follow up on Mr. Mosher's comments. Director Scheafer commented that it was helpful to have Wastewater Maintenance Worker III, Joel Ortiz, attend the Study Session and share his experience and thoughts regarding the safety of the Haaker Vactor truck. He also noted that the vehicle can be received quicker if the recommendation is approved tonight. Vice President Ooten commented that the District's former wastewater cleaning contractor, National Plant Services, did not follow the cleaning schedule that was set by the District and did not clean the system as well as District staff does now. He added that the cost to hire a wastewater cleaning contractor that cleans as well as District staff does would be much higher than the amount that was paid to National Plant Services. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Motion: To approve acquiring one twelve cubic yard wastewater combination cleaning truck from Haaker Equipment Company for $411,364, direct staff to issue a purchase order, and negotiate an extended warranty of either 3 or 5 years. 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: 6. Budget Appropriation and Transfer - CMSD 75th Anniversary Activities Recommendation: That the Board of Directors approve appropriating and transferring $15,000 for CMSD's 75th Anniversary Activities. Mr. Carroll noted that a 75th Anniversary Ad Hoc Committee was formed to discuss the District's 75th Anniversary activities in 2019. He shared that the committee held its first meeting on November 27, 2018 and discussed the idea of creating promotional videos for local movie theaters and creating a 75th Anniversary logo. Mr. Carroll noted that the 75th Anniversary activities were not budgeted for fiscal year 2018-2019, and staff is recommending the transfer of $15,000 ($7,500 from the Solid Waste Fund and $7,500 from the Liquid Waste Fund) for these activities. President Ferryman asked what would happen if the committee exceeds its budget. Mr. Carroll responded that staff would need to request additional funds from the Board of Directors. Director Perry commented that the committee can work within the recommended amount. Secretary Schafer noted that banners to promote the District's 75th Anniversary will be placed on CR&R's trash trucks and possibly on busy streets within the community. Director Perry shared that the committee is also seeking a representative from the City of Costa Mesa to join the committee. Mr. Carroll noted that District staff reached out to the City of Costa Mesa and the Interim City Manager responded that Mayor Foley will make an appointment at the time she makes all of her other committee appointments. Director Perry asked if the committee needs to bring the logo back to the Board of Directors for approval. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Mr. Carroll noted that it is up to the Board of Directors whether they would like to allow the committee to decide on a logo. Director Perry suggested that the committee narrow it down to 3 options and then bring it to the Board for approval at the next Study Session. Discussion followed regarding the 75th Anniversary promotional video. Motion: To approve appropriating and transferring $15,000 for CMSD's 75th Anniversary Activities. 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. E. ENGINEER'S REPORTS Receive and File: 1. Receive and File Monthly Capital Improvements Projects Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Carroll noted that District Engineer, Robin Harriers, is not present due to illness. He offered to answer questions regarding the report. Vice President Ooten noted that there are two projects listed in the Capital Improvements Projects Status Report that the Board of Directors agreed upon including in the budget two years ago. He requested that Mr. Carroll remind the Board of Directors periodically of projects that are upcoming. There was no further discussion and the report was received. F. TREASURER'S REPORTS None at this time. G. ATTORNEY'S REPORTS Action: 1. Ordinance No. 123 - Adoption of Rosenberg's Rules of Order Recommednation: That the Board of Directors adopt Ordinance No. 123 - Adoption of Rosenberg's Rules of Order Mr. Burns apologized and noted that Item G2 is not ready for adoption. He noted that comments were received from Mr. Mosher regarding Ordinance No. 123 and COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 typos within the ordinance were corrected. Mr. Burns commented that the adoption of Rosenberg's Rules of Order is intended to simplify the Board of Directors' processes by condensing Robert's Rules of Orders to about 7 pages. He noted that Rosenberg's Rules of Order may not address all circumstances, but the District's ordinance is a non-binding guide that allows for the District to hold a due process hearing for any situations that do not apply to Rosenberg's Rules of Order. He added that he believes the ordinance is ready for adoption if the Board chooses to adopt Rosenberg's Rules of Order. Director Scheafer noted that the Board of Directors and the public received a memo indicating which jurisdictions use Rosenberg's Rules of Order and Robert's Rules of Order. He noted that there are a few agencies that do not use either and he commented that it seems like many agencies are moving toward using Rosenberg's Rules of Order. Mr. Burns reiterated that there is a trend toward moving to Rosenberg's Rules of Order. Mr. Mosher commented that he was disappointed in the review of Ordinances 123 and 124 by the CAC and noticed that they did not seem engaged. He commented that the change to Rosenberg's Rules of Order is positive, but noted that he wished the CAC had inquired about context of the Rules. He explained that the Rules make up only a small portion of a section within the District's Operations Code that lay out rules of conduct during public meetings. Mr. Mosher suggested that the CAC be asked to attend some of the Board of Directors meetings, so that they may provide input on the entire Section 3.01 within the Operations Code. Director Scheafer reiterated his disappointment that not many CAC Members have attended Board Meetings. Mr. Carroll noted that the CAC Handbook obligates CAC Members to attend at least one Board Meeting during their term. He commented that it may be a good time to go over the Handbook with the CAC once more. Mr. Burns noted that having a quorum of CAC Members at a Board Meeting would constitute a Brown Act Violation. Director Perry noted that the District could post the meeting as a Joint CAC and Board of Directors meeting if it was known ahead of time that 6 or more CAC Members were attending. Secretary Schafer noted that the CAC may not know when the Board of Directors meet. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Motion: To adopt Ordinance No. 123 - Adoption of Rosenberg's Rules of Order as amended. 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 There were no further questions or discussion. Action: 2. Ordinance No. 124 - Reenacting the Purchasing Provisions of the District's Operations Code Recommendation: That the Board of Directors adopt Ordinance No. 124 - Reenacting the Purchasing Provisions of the District's Operations Code. Mr. Burns apologized and noted that the ordinance is not ready to be adopted tonight. He noted that Mr. Mosher's comments were well -taken and the ordinance needs more work. Director Scheafer asked if a motion needs to be made to continue the item. Mr. Burns noted that the Board of Directors does not need to make a motion to continue the item, because staff pulled the item. There was no further discussion. 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. Information: 1. Orange County Sanitation District (OCSD) - (President Ferryman) President Ferryman provided updates regarding OCSD. He shared that two executive staff members are leaving OCSD. He also shared updates regarding the Orange County Council of Governments (OCCOG). He noted that OCCOG's General Assembly will be held at the Disneyland Hotel. Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry noted that SARFPA did not meet today. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 Information: 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer shared updates regarding ISDOC. She noted that she is the incoming Second Vice President of ISDOC. Director Scheafer noted that he is the ISDOC representative for OCCOG. He added that there was further controversy regarding the equity of Local Agency Formation Commission (LAFCO) dues at the last ISDOC meeting. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared updates regarding CSDA. She shared that CSDA is planning next year's legislative priorities. Information: 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Director Scheafer noted that SDRMA did not meet this month. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Perry shared updates regarding the Water Advisory Committee of Orange County (WACO). I. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Secretary Schafer shared that a City of Costa Mesa staff member passed away. She also shared that her grandson was just hired by the Costa Mesa Fire Department. President Ferryman commented that the Fire Department rescued a cat from a pine tree on his street. Director Scheafer thanked the Board and District staff for their support during his time as President. Discussion followed regarding Vice President Ooten and Director Perry's compensation checks. There were no further comments or discussion. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 20, 2018 J. ADJOURN TO CLOSED SESSION President Ferryman adjourned the meeting to closed session at 6:40 P.M. to discuss the following: CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: (1 potential case). Mr. Burns noted that the District is required to disclose the threat of potential litigation and the District has done so by making a contemporaneous memorialization of the threat made to the General Manager a part of the record. He noted that a redacted copy was made part of the record. K. RECONVENE TO OPEN SESSION President Ferryman reconvened the meeting to open session at 7:37 P.M. and reported that no action was taken and direction was provided. L. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting at 7:37 P.M. Arlene Schafer 4�y Secretary Michael Schetfer President