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Agenda Packets - Board - 2007-05-10Costa M64 Sam D150 Ct ... an Independent Special District Arlene Schafer Vice President Art Perry President Bob ®oten Secretary Jim Ferryman Gary Monahan Director Director Regular Meeting o Thursday, May 10, 2007 RECOMMENDED ACTION CALL TO ORDER — 6:00 p.m. — 628 W. 19" Street, Costa Mesa II. PLEDGE OF ALLEGIANCE — Jim Ferryman III. INVOCATION — Tom Fauth IV. 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.) V. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to be routine and will be enacted in one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board request specific items to be removed from the Consent Calendar for discussion, in which event the item will be removed from the Consent Calendar and considered in its normal sequence on the agenda. Reports Minute Approval City /Districts Liaison Committee Meeting Minutes— April 13, 2007 2. Recycling Committee Meeting — April 16, 2007 3. Sewer System Committee Meeting — April 18, 2007 Protecting our community's health 6y providing solid waste and sewer coQection services. www.crosdca.gov Costly M6a SanitarN Disvrict May 10, 2007 AGENDA Page 2 RECOMMENDED ACTION 4. Investment Oversight Committee — April 19, 2007 5. Regular Meeting — April 19, 2007 Manager's Reports 6. Refunds No Refunds 7. Occupancy Report and payment to Costa Mesa Disposal — April 2007 Approve 8. Monthly Spill Report to State Water Resources Board Receive & File 9. Additional Container Program Report Receive & File Engineer's Reports 10. Project Status Report Receive & File Treasurer's Reports 11. Financial Reports as of April 30, 2007 Receive & File 12. Treasurer's Reports as of April 30, 2007 Receive & File 13. Warrant Register for the month of April 2007 in the amount of Ratify Payments $529,412.04 14. Directors' Compensation and Reimbursement of Expenses for the Approve Compensation Month of April 2007 & Ratify Expenses ----------------------------------- - - - - -- -END OF CONSENT CALENDAR-------------------------------------- - - - - -- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Orange Coast College Recycling Center — Letter of Appreciation to Presentation Mike Carey B. Orange County LAFCO 1. Municipal Service Review (MSR) of the CMSD Presentation by LAFCO Executive Officer 2. LAFCO Hearing on CMSD MSR, June 20, 2007 Attendance by Manager/ District Engineer 3. CCM /Mesa /CMSD Joint Letter to LAFCO Approve Timecting out community's heaCth 6y providing soCuf waste and sewer collection services. www. crossdca gov C7SO IVI0"a SanitaYN Dismet May 10, 2007 AGENDA Page 3 RECOMMENDED ACTION C. Sewer System Financial Master Plan & 2007 -08 Budget Update D. CMSD Strategic Plan 1. Year 2007/2008 Strategic Planning Action Items Accept Report E. Increase in Director Compensation Accept Report & Direct Staff to Prepare Ordinance to Increase Director Compensation & Set Public Hearing F. Sewer System Committee Accept Report 1. Report on Committee Meeting held May 9, 2007 Accept Report G. District Yard 1. Update on Properties at: 1780 Whittier Avenue, 2314 Newport Blvd. Consider and Others (Possible need for closed session Pursuant to Government Code 54956.9(a)) H. Status of CMSD Website Accept Report I. Recycling Reports 1. Waste Diversion Report — April 2007 Receive & File J. Contract Payment to CR Transfer for Recycling Services and Disposal 1. Payment for April 2007 Services Ratify Subject to Verification of Diversion Report by Staff K. Ordinance Enforcement Officer's Report Accept Report L. Update on Monitor Video Accept Report M. Recycling Committee -- Monda�, May 7, 2007, 12:00 p.m., CMSD Board Room, 628 W. 19t Street, Costa Mesa (Director Ooten and Director Ferryman) 1. Recycling Committee Goals for 2007/2008 Receive & File 2. Guest Speaker — Paul Relis, CR &R, Sr. Vice President, Accept Report Environmental and Governmental Affairs 3. Earth Day Event at Orange Coast College on April 26, 2007 Accept Report 4. Water Conservation Accept Report Protecting our community's health by Ong solid waste and sewer coffection services. www. crosdcagov Qo'$' gMesa SanitaY D1And May 10, 2007 AGENDA Page 4 RECOMMENDED ACTION 5. Distribution of Outreach Material Accept Report IX. ENGINEER'S REPORTS A. General Waste Discharge Requirements (GWDR) Update B. Project #129 — Three Party Agreement between CM SD, OCDA and Approve Revisions City of Newport Beach C. OCSD Watson Avenue Sewer — Transfer to CMSD (Part 2) Approve Transfer Agreement D. OCSD California Avenue Sewer — Transfer to CMSD (Part 3) Approve Transfer Agreement E. Project #101 — Westside Pumping Station Abandonment — Results of Accept Report Meeting Held April 27, 2007 F. Memorandum of Understanding with Irvine Ranch Water District Consider X. TREASURER'S REPORTS A. Distribution of Revision #1 to Preliminary Budget for Fiscal Year Receive Document 2007 -08 XI. ATTORNEY'S REPORTS A. Astin v. CMSD (Sup. Court Case No. 06CC05755) Status Report Coverage and (Possible need for closed session pursuant to Government Code 54956.9(a)) Defense Status Report B. Car Damage by CR &R Trash Bin at St. Joachim School Accept Report C. Policy on Reimbursement for Toner & Ink Cartridges, etc. Update D. Senate Bill No. 343 and No. 964 - Amendments to the Brown Act Update & Consider Potential Impact on CMSD E. Soil Conditions on Construction Projects Accept Report XII. LOCAL MEETINGS (Includes Reports by all Directors Representing CMSD) A. Orange County Sanitation District (OCSD) 1. Meeting Held April 25, 2007 (Director Ferryman) Accept Report Protecting our community's health 6y Ong sofid waste and sewer collection services. www cros&c gov Costa, SG SlAhiAYiS YI C AGENDA B. Santa Ana River Flood Protection Agency (SARFPA) (Director Perry) C. Independent Special Districts of Orange County (ISDOC) (Director Schafer) D. Local Agency Formation Commission (LAFCO) (Director Schafer) E. California Special Districts Association (CSDA) (Director Schafer) F. California Association of Sanitation Agencies (CASA) G. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 XIII. OLD BUSINESS A. Request for Route Day Changes from CR &R XIV. NEW BUSINESS XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT May 10, 2007 Rage 5 RECOMMENDED ACTION Accept Report Accept Report Accept Report Accept Report Accept Report Report on Matters Pertaining to CMSD Consider Protecting our community's keafth 6y Ping soCuf waste and sewer colCection services. www.cros&a goV 4. • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING April 16, 2007 The Costa Mesa Sanitary District Recycling Committee met at 12:00 p.m. at 628 W. 19th Street, Costa Mesa. Directors Present: Bob Ooten; Art Perry Staff Present: Rob Harriers, Tom Fauth, Joan Revak, Denise Gilbert Director Ooten called the meeting to order at 12:00 p.m. RECYCLING COMMITTEE GOALS FOR 2007/2008 The Committee reviewed in detail the 2007/2008 recycling goals adopted by the Board of Directors at the February 7, 2007 regular Board meeting and set specific dates and events for events on the list. Item I. Encourage Recycling Projects by Non - Profit Organizations Promote CMSD projects at Earth Day event on April 26, 2007 and provide sign -up sheets. Target date for project — October 2007 Item II. Establish High School Recycling Programs and Education Hold education event with Estancia High School in October or November 2007. Sponsor tour of OCSD Groundwater Replenishment Facility in November 2007. Item IV. Research Food Recycling Ms. Gilbert to contact Orange County Integrated Waste Management Department and other resources with regard to food recycling with a target date of May 2007. Protecting our community's health d y providing solid waste and sewer collection services. w,aw.crosdcagov Costa Mesa Sanitary District Minutes of Recycling Committee Meeting April 16, 2007 Page 2 Item V. Update Award Winning "Working for You" Video Completion date is scheduled for June 2007. Item VI. Educate Residents on One - Container Mixed Trash Recycling Program. Include articles in 'newsletter and other publications. Item VII. Continue to Educate Students on the Importance of Recycling School telephone book recycling contest runs November through December. Item VIII. Continue to host tours of CRT, OC Landfill and OCSD for Costa Mesa residents including students and social service groups Contact OCSD with regard to providing bus for transportation to sites. 0 Item IX. Water Conservation Encourage reduction in water usage. Promote use of waterless urinals. Ms. Gilbert to research available products for low water usage. Refer residents to Mesa Consolidated Water District website. Item X. Source Reduction Goals Pamphlet on Source Reduction completed April 16, 2007. Distribute pamphlet at Earth Day event on April 26, 2007. Item XI. E -Waste Events Events held on February 24, 2007 and event scheduled for June 17, 2007. Earth Resource Foundation held event on March 3, 2007. is Contact Mike Carey at OCC Recycling Center regarding status of E -waste recycling at the Center. Protecting our community's health by providing solid waste and sewer collection services. wutw.crosdca.gov , I • Costa Mesa Sanitary District Minutes of Recycling Committee Meeting ' April 16, 2007 Page 3 Item XII. Invite individuals to Recycling Committee meetings Paul Relis of CR &R will make a presentation on recycling legislation at the May 7, 2007 Recycling Committee meeting. Costa Mesa Couricilperson Katrina Foley will be invited to June 11, 2007 meeting of the Recycling Committee. The meeting was adjourned at 1:08 p.m. Secretary President Protecting our community's health by providing solid waste and sewer collection services. www.crosdca, • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on April 19, 2007, at 6:00 p.m. at 628 W. 191h Street, Costa Mesa. President Perry called the meeting to order at 6:00 p.m. PLEDGE OF ALLEGIANCE Director Schafer led the Pledge of Allegiance. INVOCATION Mr. Fauth gave the invocation. ROLL CALL DIRECTORS PRESENT: Art Perry, Bob Ooten, Arlene Schafer, Gary Monahan, James Ferryman DIRECTORS ABSENT: None STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Marc Davis, Treasurer; Sherry Kallab, Accountant; Karl Dulake, Maintenance Supervisor; Debbie Bjornson, Permit Processing Specialist; Denise Gilbert, Public Outreach Coordinator; Ron Shef, Ordinance Enforcement Officer OTHERS PRESENT: Mr. Dan Worthington, 2963 Mindanao Drive, Costa Mesa . ............................... CONSENT CALENDAR . ............................... COSTA MESA SANITARY DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 2 Director Schafer motioned to approve the Consent Calendar as presented. Director Ooten seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Recycling The Minutes of the Recycling Committee Meeting Committee Meeting — of March 5, 2007, were approved as distributed. March 5, 2007 Minutes of Regular The Minutes of the Regular Meeting of March 8, Meeting — 2007, were approved as distributed. March 8, 2007 Minutes of Sewer System The Minutes of the Sewer System Committee Committee Meeting — Meeting of March 21, 2007, were approved as March 21, 2007 distributed. MANAGER'S REPORTS REFUNDS There were no refunds for the month of March 2007 Occupancy Report and The Trash Occupancy Count documented an Payment of $195,531.87 increase of 10 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of April 1, 2007. March 2007 Therefore, the total for April is 21,357. Board directed Staff to prepare a warrant for $195;531.87 for April 2007 collection based on occupancy report. Said payment in the amount of $195,531.87 to Costa Mesa Disposal to be ratified on the May 2007 warrant register. Monthly Spill Report to the The Monthly Spill Report to the State Water State Water Resources Resources Board for March 2007 was accepted as Board submitted. Additional Container The Additional Container Program report for March Program Report 2007 was approved as distributed. 0 • • r COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 3 ENGINEER'S REPORTS Project Status Report The Project Status Report dated April 2007 was accepted as submitted. TREASURER'S REPORTS Financial Report as of The Financial Report as of March 31, 2007 was March 31, 2007 accepted as submitted. Treasurer's Report as of The Treasurer's Report as of March 31, 2007 was March 2007 accepted as submitted. Warrant 2007 -10 for Warrant Resolution #CMSD 2007 -10 was March 2007 in the amount approved, authorizing the President and Secretary of $2,904,813.81 to sign the warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $2,904,813.81. Directors Expenses for the Director Compensation and Expense Month of March 2007 Reimbursements for the Month of March 2007 were approved and ratified as follows: Director Ferryman: $1020.00 President Perry: $510.00 Vice President Schafer: $1020.00 + $79.23 Director Ooten: $1020.00 + $82.45. Director Monahan: $1020.00 + $27.28 .......................... END OF CONSENT CALENDAR ......................... WRITTEN COMMUNICATION Ms. Revak reported a letter was received from Ms. Kathy Sanchez, Principal, Killybrooke Elementary School, dated March 26, 2007. Ms. Sanchez thanked Director Schafer for the presentation of $400.00 for participation in the telephone book,program. Ms. Sanchez stated the money will go toward supplies for the classroom. COSTA MESA SANITARY DISTRICT t. MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 4 PUBLIC COMMENTS There were no comments from the public in attendance. MANAGER'S REPORTS CITY /DISTRICT RELATIONS - MEETING OF MARCH 27, 2007 Mr. Hamers reported on the March 27, 2007 City /District Relations meeting attended by the following: Directors Monahan and Ferryman, Mr. Hamers, Mr. Fauth, Mayor Allan Mansoor, Council Member Eric Bever and City Manager Allan Roeder. Mr. Hamers provided a brief overview of the meeting and expressed that Mr. Roeder committed to maintain the Sanitary District in the development approval process to provide the best possible service to property owners, developers and contractors. Staff presented to the Board a letter to the Mayor of the City of Costa Mesa expressing the District's appreciation to the City for their commitment to maintain the Sanitary District in the development approval process and for their cooperation with the CMSD over the years.. Director Schafer motioned to approve the letter for signature by President Perry. Director Ferryman seconded. Motion carried 5 -0. SEWER SYSTEM FINANCIAL MASTER PLAN Mr. Davis presented a synopsis of the Sewer components of the plan. Mr. Davis reported gathering and will have the document ready for for review prior to holding a special meeting t fiscal year 2007 -08. CMSD STRATEGIC PLAN System Financial Plan, outlining the he is almost finished with the data distribution to the Board in mid May o discuss the preliminary budget for YEAR 2007/2008 STRATEGIC PLANNING ACTION ITEMS Ms. Revak reported Staff is working on many of the items on the Strategic Planning Action Items list. SEWER SYSTEM COMMITTEE REPORT ON COMMITTEE MEETING HELD MARCH 21, 2007 Director Monahan reported the Sewer System Committee has met twice since the last regular Board meeting and reported sewer overflows have reduced as compared to last year and expectations are that they will continue to reduce as COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 l . r PAGE 5 cleaning of the sewer lines continues. Mr. Monahan reported the Committee discussed sewer lateral maintenance. Discussion was held regarding identifying the laterals most in need of repair as identified on the videotaping records and then working with the property owners and the City to repair the laterals. Director Schafer inquired whether discussion was held regarding working with realtors. Mr. Monahan reported they intend to continue working with the realtors. OCSD SEMINAR ON SEWER LATERAL OWNERSHIP - MARCH 15, 2007 Mr. Fauth presented notes from the OCSD Sewer Lateral Ownership Workshop held on March 15, 2007. Mr. Monahan reported Mr. Fauth prepared an overview on agencies with lateral programs. Four organizations presented an overview regarding their policies and approaches to lateral maintenance: City of Newport Beach - Ed Burt City of Santa Ana - Ray Burke El Toro Water District - Ralph Palomares 0 %i City of Fullerton - Bill Roseberry Discussion was held. Board directed Mr. Burns to research whether the District is able to assist property owners in the repair of damaged sewer laterals to prevent sewer overflows. Board directed Mr. Davis to set aside the sum of $100,000 in the budget for possible lateral repair, depending on the research of Mr. Burns as to whether or not the District is legally able to assist in the repairs. MEETING - WEDNESDAY, MAY 9, 2007 AT 10:30 A.M. The Sewer System Committee will meet on May 9, 2007 at 10:30 a.m. DISTRICT YARD UPDATE UPDATE ON PROPERTIES AT: 1780 WHITTIER AVENUE, 2314 NEWPORT BLVD, AND OTHERS (POSSIBLE NEED FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(A)) rMr. Fauth reported he and Mr. Dulake have .been investigating properties that would be suitable for a District Yard for the Costa Mesa Sanitary District. Mr. Fauth reported the suitable properties were not currently listed for sale and COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 6 the District would be cold - calling on the businesses to ascertain their interest in selling. Mr. Fauth reported Mr. Gregg notified him that the unresolved escrow at 1780 Whittier Avenue is no longer an 'issue. The four beneficiaries of the estate have agreed to a plan which would put the property in a position to close escrow in 60- 75 days. They have requested Mr. Gregg be their listing agent. The District had instructed Mr. Gregg to make an offer on the District's behalf on March 20, 2007. Mr. Fauth presented pictures of the Whittier Avenue property to Board members. The Board determined it would be best to continue the strategy discussion of purchasing 1780 Whittier Avenue, Costa Mesa, in closed session at the end of the meeting. STATUS OF CMSD WEBSITE Ms. Revak reported the District awarded the new Website project to VPI Net during the March 8, 2007 Board of Directors meeting. The agreement has been executed. Staff met with VPI Net representatives to coordinate the design of the CMSD website. Completion date is scheduled for June 2007. NEW DISTRICT HEADQUARTERS BUILDING AND GROUNDS AD HOC COMMITTEE Landscaping Installed in the Month of March 2007 Ms. Revak reported the landscaping has been completed and Staff is pleased with the outcome. Discussion was held regarding trespassers continuing to cut across the newly landscaped area. A fence and deterrent against skateboarders will be explored in the future if necessary. The Building and Grounds Ad Hoc Committee will be disbanded now that their goals are complete. RECYCLING REPORTS WASTE DIVERSION REPORT - FEBRUARY 2007 Ms. Revak presented the Waste Diversion Report for February 2007 showing a 50.42% diversion rate. Director Ooten motioned the Waste Diversion Report be received and filed. Director Schafer seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING j1 APRIL 19, 2007 PAGE 7 WASTE DIVERSION REPORT - MARCH 2007 Ms. Revak presented the Waste Diversion Report for March 2007 showing a 50.44% diversion rate. Director Ooten motioned the Waste Diversion Report be received and filed. Director Schafer seconded. Motion carried 5 -0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR MARCH 2007 SERVICES Ms. Revak presented the Invoices for March 2007 recycling services and disposal. Director Schafer motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of March 2007 in the amount of $168,561.98. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None Director Schafer motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of March 2007 in the amount of $11,894.14. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None ORDINANCE ENFORCEMENT OFFICERS REPORT Mr. Shef provided a report for the period of March 2007. Mr. Shef reported the collection schedule was normal and courtesy notices were distributed with several resident contacts for explanation. Mr. Shef. checked over 60 addresses for verification to incorporate into the District computer system. Mr. Shef reported he finds the best resolution for resident compliance with the Costa Mesa Sanitary District Ordinance is a one -on -one conversation with the resident. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING �6. APRIL 19, 2007 PAGE 8 UPDATE ON MONITOR VIDEO Mr. Fauth reported he met with Monitor Video and went through the script and made modifications. The entry scenes for the individual modules are being written. Completion is scheduled for June 30, 2007. The completed video will be featured on the District's website. REQUEST FOR CONSULTANT RATE INCREASES MANAGER /DISTRICT ENGINEER/ROB HAMERS Mr. Hamers presented a request for compensation increase for the management and engineering services provided by Robin B. Hamers & Associates, Inc. to the District. An increase is requested as of July 1, 2007 to partially cover the increase in business related costs. Director Monahan motioned to approve the requested rate increase for the Manager /District Engineer, Mr. Rob Hamers. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None FUTURE CONSULTANT RATE INCREASES Mr. Dan Worthington suggested the Director's stipend be tied into the time that the District's consultants receive an increase in their rates. Mr. Worthington suggested the topic be put on the next agenda for discussion. Mr. Hamers stated Staff had also discussed having yearly increases and possibly tying the increases to the CPI for consultants and the Board as well. With a yearly system, the increases would be smaller and more frequent than the current system. • June 2004 Rate Current Rate Proposed Rate Management 80.00 /hr $82.40/hr $87.50/hr Engineering 80.00 /hr 80.00 /hr 85.00 /hr Draftsman 60.00 /hr 60.00 /hr 65.00 /hr Inspector 55.00 /hr 55.00 /hr 60.00 /hr Retainer $1,300 /mo $1,399.00/mo $1,400.00 /mo 2 -Man 185.00/hr 185.00/hr 220.00 /hr Survey Crew (union crew) Director Monahan motioned to approve the requested rate increase for the Manager /District Engineer, Mr. Rob Hamers. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None FUTURE CONSULTANT RATE INCREASES Mr. Dan Worthington suggested the Director's stipend be tied into the time that the District's consultants receive an increase in their rates. Mr. Worthington suggested the topic be put on the next agenda for discussion. Mr. Hamers stated Staff had also discussed having yearly increases and possibly tying the increases to the CPI for consultants and the Board as well. With a yearly system, the increases would be smaller and more frequent than the current system. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 • f PAGE 9 Director Monahan requested 'Mr. Burns investigate what the Board's options would be regarding an increase in rates for Board members. Mr. Fauth circulated before -and -after pictures of the humanitarian effort Mr. Worthington participated in. LAFCO MUNICIPAL SERVICE REVIEW (MSR) OF THE CAMS® Mr. Hamers presented the administrative draft of the LAFCO Municipal Service Review (MSR) of the CMSD. Mr. Hamers said it was not circulated to the Board because it is not yet completed. Ms. Joyce Crosthwaite wrote the review and Mr. Hamers is providing some edits and returning the review to Ms. Crosthwaite. The hearing will be held in June 2007. RECYCLING COMMITTEE — WEDNESDAY, APRIL 16, 2007 — 12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA (DIRECTORS OOTEN AND PERRY) RECYCLING COMMITTEE GOALS FOR 2007/2008 Director Ooten reported the Recycling Committee met on April 16, 2007 and reported Directors Ooten and Perry attended the meeting. Director Ooten reported the Committee reviewed their goals and developed a timetable for those goals. The Committee prepared a letter to acknowledge Mr. Mike Carey's efforts at the OCC Recycling Center. Mr. Carey was the guest speaker at the March Recycling Committee. SOURCE REDUCTION BROCHURE Director Ooten reported Ms. Gilbert will be present at the CMSD booth for Earth Day on April 26, 2007 and will distribute the new Source Reduction Brochure. Director Ooten presented the plastic container top that will be distributed to the public as a lid for cans or jars for collecting grease. The can or jar can then be disposed of in the trash instead of down the drain. The plastic top is reusable. Director Monahan left the meeting at 7.00 p.m. • COSTA MESA SANITARY DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING " APRIL 19, 2007 PAGE 10 • WATER CONSERVATION Director Ooten reported the Committee will address water conservation to extend the retention time in some of the smaller pump stations. Mesa Consolidated Water will provide a demonstration on xeriscape landscaping. ENGINEER'S REPORTS GENERAL WASTE DISCHARGE REQUIREMENTS (GWDR) Mr. Hamers reported he appreciates the Sewer System Committee looking into sewer spills and for their support of a Sewer System Financial Master Plan. Mr. Hamers reported the District's project #181 under construction on Newport Boulevard southbound at 19th Street will be night construction from 10:00 p.m. to 5:00 a.m. PROJECT #168 - IRVINE PUMP STATION RELOCATION MAKE FINDINGS FOR SOLE SOURCE PUMP MANUFACTURER Mr. Hamers recommended purchasing the pumps separately from the construction contract to ensure they are the same make and model as the District currently has in another pump station, the Elden Pumping Station. Mr. Hamers also noted the direct purchase lowers the cost of the pumps. Director Ferryman motioned to authorize up to $75,000 to purchase the pumps from the same manufacturer to ensure compatibility and save costs as outlined in Mr. Hamers' letter to the Board. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman Noes: None AGREEMENT WITH SOILS ENGINEER GEO -ETKA, INC. Mr. Hamers presented the agreement with soils engineer Geo -Etka, Inc. for approval. Director Ferryman motioned to approve the agreement. Director Schafer seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman Noes: None COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 11 PROJECT #173 - SOUTH COAST PLAZA FORCE MAIN REPLACEMENT - RECOMMENDATION TO DELAY PROJECT Mr. Hamers reported the plans for the replacement pressure sewer line (force main) at the South Coast Plaza Pumping Station are complete. It was discovered there is more life expectancy in the existing line than originally thought and it would be advantageous to move the project into the future. Director Schafer motioned to approve the delay in Project #173, South Coast Plaza Force Main Replacement. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman Noes: None REPORT ON EMERGENCY WORK: 19TH STREET PUMPING STATION, ELDEN PUMPING STATION 0 % BUDGET ADJUSTMENT Director Ferryman motioned to ratify the report and approve the budget adjustment of $176,411 as recommended in the report by Mr. Davis. Director Schafer seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman Noes: None PROJECT #129 - THREE PARTY AGREEMENT BETWEEN CMSD, OCDA AND CITY OF NEWPORT BEACH Mr. Hamers reported the revisions have not yet been returned to the District. The item was tabled and will be 'brought back to the next regular meeting. TREASURER'S REPORTS INVESTMENT OVERSIGHT COMMITTEE — APRIL 19, 2007 — 5:15 P.m. (DIRECTORS FERRYMAN AND MONAHAN) Mr. Davis reported the Investment Oversight Committee meeting was held on April 19, 2007, and provided a brief review of the topics of discussion: Review of the COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING Aga' APRIL 19, 2007 PAGE 12 Treasurer's Report, Update on Internal Controls, and Update on Financial Audit for 2006 -07. DISTRIBUTION OF PRELIMINARY !BUDGET FOR FISCAL YEAR 2006 -07 Mr. Davis distributed the preliminary budget to the Board. Mr. Davis reported an adjustment will be made for the $100,000 additional capital improvements. The budget is scheduled for adoption in June 2007. A special meeting date tentatively was set for May 29, 2007, pending the schedule of Director Monahan. BUDGET ADJUSTMENT TO MOVE FUNDS INTO PROMOTIONAL PRODUCTS Mr. Davis requested a budget adjustment to provide for promotional items to be given away at various events. Staff recommended $1,000 be moved from educational tours to provide for promotional products. Director Ooten motioned to approve moving $1,000 from educational tours to promotional products. Director Ferryman seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman No: None ATTORNEY'S REPORTS GOVERNMENT OFFICIALS CANNOT RELY ON THEIR ATTORNEYS ADVICE AS A DEFENSE TO CRIMINAL CONFLICT OF INTEREST CHARGES (PEOPLE V. CHACON Mr. Burns provided a brief synopsis of People v. Chacon. Mr. Burns related the case determined that counsel's advice may not be relied on to immunize a Board Member from criminal responsibility of conflict of interest laws. ASTIN, LOCKE V CMSD (SUP COURT CASE NO. 06CCO5755) STATUS REPORT (POSSIBLE NEED FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(A) Mr. Burns reported the trial has been continued to September 17, 2007. Mr. Hamers will be deposed in May. • �I Ll COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 13 PROPOSED LEGISLATION RE DISTRIBUTION OF REPORTS AT BOARD MEETINGS DISCUSS ALTERNATE DATES FOR REGULAR BOARD MEETING: THIRD OR FOURTH THURSDAY OF MONTH; OTHER Mr. Burns reported SB 343 is being proposed to prohibit late agenda reports and other writings that are not available to the public unless included in the agenda report distributed to the staff (and public). Mr. Burns will provide a further briefing if he is able to obtain the text of the bill itself. CAR DAMAGE BY CR &R TRASH BIN AT ST. JOACHIM SCHOOL Mr. Burns reported the District received a letter claiming a trash bin rolled away and struck a vehicle causing damage. The trash bin was in the parking lot of St. Joachim's Catholic School for the Telephone Book Recycling Program collection. CR &R claims it was due to the !high winds and was an "Act of God" and that they are not liable. In the Master Agreement with the District, CR &R has agreed to indemnify and defend the District for any liability arising out of the performance of the contract, therefore, Mr. Burns recommended the Board reject the claim and authorize the statutory letter to be sent regarding the rejection. Director Schafer motioned to reject the claim. Director Ferryman seconded. Motion carried 4 -0. REIMBURSEMENT OF DIRECTOR EXPENSES (TONER AND INK CARTRIDGES) Mr. Burns opened discussion with the Board regarding reimbursement of Director expenses such as toner and ink cartridges for fax machines and printers. In order to provide reimbursement, the Board must develop a policy. If the fax machine or printer is used for personal business as well as CMSD business, a proportional reimbursement would be made. Board directed Mr. Burns to develop a policy for the Board's review. DISCUSSION OF COMPTON .JURY AWARD IN TRASH HAULER LAWSUIT Mr. Burns provided a synopsis of a lawsuit by the franchisee trash hauler against the City of Compton for terminating the franchise. COSTA MESA SANITARY DISTRICT a. MINUTES OF BOARD OF DIRECTORS REGULAR MEETING -" APRIL 19, 2007 PAGE 14 LOCAL MEETINGS (INCLUDES REPORTS BY ALL DIRECTORS REPRESENTATING CMSD) ORANGE COUNTY SANITATION DISTRICT (OCSD) MEETING HELD MARCH 28,2007 (DIRECTOR FERRYMAN) Director Ferryman attended the March 28, 2007 OCSD meeting and reported the following: ❑ Design -build bill cleared committee ❑ All -hands meeting to be held Director Ooten attended the OCSD meeting and reported the following: ❑ Attempting to conclude negotiations with union SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) MEETING HELD MARCH 22, 2007 (PRESIDENT PERRY) President Perry and Director Ferryman attended the SARFPA meeting and reported the following: ❑ Budget discussion ❑ Slate of Officers ❑ Status of Prado Dam ❑ Herb Nakasone will go to Washington D.C. with Supervisor Campbell to request an increase in funding for the Santa Ana River Mainstem Project ❑ SARI line update - design within a year and built within two years INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (DIRECTOR SCHAFER QUARTERLY MEETING - THURSDAY; MARCH 29, 2007 Director Schafer attended the Quarterly meeting of ISDOC and reported the following: 0 ❑ New directory 11 Homeland Security COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 15 ❑ Certificate given for attending the training program ❑ Director Schafer provided a report on LAFCO and CSDA ❑ National Incident Management System Training for Special Districts ❑ Kelly Hubbard, Emergency Services Manager, Water Emergency Response Organization of Orange County (WEROC) Mr. Hamers discussed the CMSD emergency plan, reminding Directors their responsibility is to receive information, meet, and make decisions as appropriate. Mr. Burns suggested developing an Ordinance regarding emergency operations. Director Schafer provided her notes for the Board's perusal. LOCAL AGENCY FORMATION COMMISSION (LAFCO) (DIRECTOR SCHAFER) Director Schafer attended the March 14, 2007, LAFCO meeting and reported the following: ❑ Pat Bates sworn in as alternate CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (DIRECTOR SCHAFER) Director Schafer attended the March 8 -9, 2007 CSDA meeting and reported the following: ❑ Meeting in Sacramento for Legislative Committee Meeting ❑ Board of Directors meeting on March 9, 2007 ❑ Working on CSDA's Legislative Day Annual Meeting in Monterey CALIFORNIA WATER ENVIRONMENTAL ASSOCIATION (CWEA) CONFERENCE IN ONTARIO - APRIL 16-20,2007 Director Ferryman motioned to approve Director Ooten's attendance at the CWEA Annual Conference in Ontario California. Director Schafer seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman Noes: None • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING d APRIL 19, 2007 PAGE 16 OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE NO. 55, OPERATIONS CODE SECTION 3.01.030 WACO Director Schafer attended the March 2, 2007 WACO meeting at the Irvine Ranch Water District and reported the following: ❑ Director Schafer presented report on CSDA and LAFCO ❑ Orange County Groundwater Replenishment System construction update ❑ The Irvine Desalter Project: Enhancing Local Water Supply and Water Quality OLD BUSINESS There was no old business discussed. NEW BUSINESS 0 PROPOSED FY 2007 -2008 LAFCO BUDGET Mr. Hamers reported he provided comments as requested to Mr. Bob Aldrich, Assistant Executive Officer, Local Agency Formation Commission, on behalf of the District. COSTA MESA HISTORICAL SOCIETY MEMBERSHIP RENEWAL IN THE AMOUNT OF $100.00 Director Ooten motioned to approve payment of $100.00 for membership renewal to the Costa Mesa Historical Society. Director Schafer seconded. Motion carried as follows: Ayes: Perry, Schafer, Ferryman, Ooten Noes: None CHANGE OF REGULAR MEETING DATE FOR THE MONTH OF MAY 2007 Director Schafer motioned the May meeting be changed to May 8, 2007. Director Ooten seconded. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 19, 2007 PAGE 17 Discussion was held. Directors Schafer and Ooten removed their motion to change the May meeting to May 8, 2007. The meeting will remain on May 10, 2007. CASA SPRING CONFERENCE - MAY 2-5,2007 AT NAPA Ms. Revak reported the CASA Spring Conference will be held on May 2 -5, 2007 in Napa, California. Directors interested in attending will notify Ms. Revak. CSDA SPECIAL DISTRICTS LEGISLATIVE DAYS - MAY 14 -15, 2007 IN SACRAMENTO Ms. Revak reported CSDA Special Districts Legislative Days will be held May 1415, 2007, in Sacramento. Director Schafer will be attending. Director Ooten motioned to approve attendance for Director Schafer for the CSDA Special Districts Legislative Days Conference. Director Ferryman seconded. Motion carried 4 -0. ® 38TH CSDA ANNUAL CONFERENCE - OCTOBER 1-4,2007 IN MONTEREY Ms. Revak reported the 38th Annual Conference will be held October 1 -4, 2007, in Monterey. Ms. Revak will make hotel reservations in anticipation of Director attendance. The item will be brought back for discussion closer to the October event date. REQUEST FOR ROUTE DAY CHANGES FROM CR&R Mr. Hamers presented a request from CR &R to change the route pick up schedule affecting approximately 900 residents, altering their trash pick up by two days. Mr. Fauth provided a review of the areas requested for change and street sweeping schedules. The City of Costa Mesa regulates the street sweeping schedule. Board will consider supporting the change if CR &R can work with the City of Costa Mesa to alter the street sweeping schedule before the change of routes. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Mr. Dan Worthington, provided an update to the previously distributed photographs of the humanitarian effort to clean up and paint a residence for an elderly resident. CR &R donated trash bins for the clean -up effort. Director Ferryman suggested a press release on the event. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING -` APRIL 19, 2007 PAGE 18 • President Perry suggested Board write a letter to CR &R commending their donation of trash bins. ADJOURNMENT TO CLOSED SESSION President Perry adjourned the meeting to closed session at 8:09 p.m. in accordance with Government Code Section 54956.9(a) to discuss the District Yard. Opened closed session at 8:12 p.m. Reconvened to open session at 8:29 p.m. Action taken in closed session: Negotiators were given direction for purchase of property at 1780 Whittier Avenue. ADJOURNMENT President Perry adjourned the meeting at 8:30 p.m. ECRETARY PRESIDENT • j t{ • N COSTA MESA SANITARY DISTRICT MINUTES OF SEWER SYSTEM COMMITTEE MEETING APRIL 18, 2007 CALL TO ORDER Board members of the Costa Mesa Sanitary District met in Committee session on April 18, 2007, at 10:30 a.m. at 628 W. 19th Street, Costa Mesa. Director Monahan called the meeting to order at 10:30 a.m. DIRECTORS PRESENT: Jim Ferryman, Gary Monahan, Bob Ooten DIRECTORS ABSENT: STAFF PRESENT: ', Robin B. Hamers, Manager /District Engineer; Thomas A. Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Karl Dulake, Maintenance Supervisor; Paul Guzman, Inspector; Joe Limon, Inspector; Debbie Bjornson, Permit Processing Specialist; OTHERS PRESENT: None CMSD SEWER SPILL STATISTICS UPDATE Mr. Fauth presented the overall statistics for calendar years 2006 (33 Sanitary Sewer Overflows (SSOs)) and 2007 (5 SSOs) to date, noting the statistics for 2007 were not sufficient to identify a trend differential from 2006 statistics. ..Discussion covered representative causes and prevention activities for FSEs such as hydro - mechanical and gravity interceptors at hotspot locations. Director Ooten suggested a new brochure could be developed to notify residents of the primary lateral issue, roots: • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING e" APRIL 18, 2007 ' PAGE 2 Staff is continuing to verify the number of laterals within the District, currently estimated to be in the range of 25,500 — 30,000 based on two methods: 1. Direct counting, and 2. Estimation from the number of linear feet of known laterals and their average length. The Committee approved the proposed CMSD sewer lateral maintenance position letters to CASA and to the local realtors and property managers. CLEANING CREWS Staff verified National Plant Services, 'Inc. will provide maintenance cleaning of one -half of the CMSD main lines every year after the current televising project is complete. JIMNI Systems provides the primary maintenance on the 20 District pump stations. Mr. Fauth will update the annual cost estimate for a CMSD crew to provide hotspot cleaning for the next meeting. The intent is to keep National Plant Services, Inc., on board full - time for both maintenance operations through June 2008. Staff will budget the CMSD in- house crew to begin in January 2008 with a planned familiarization with District operations, sewer systems, pump stations and equipment through June 2008 when the District crew is scheduled to take over the hotspot maintenance from National Plant Services, Inc. Overall, Mr. Fauth also will update the cost analysis sheet comparing contractor costs to in -house crew costs including National Plant Services, Inc, JIMNI Systems, Inc. and C &R Drains to respond to Maintenance Cleaning, Hotspot Cleaning, Pump Station Maintenance and Emergency Response. This update will incorporate the known hourly contractor costs specified in each agreement with CMSD. SEWER LATERAL ISSUES Mr. Fauth stated an accurate Cleanout Assistance Program can be prepared, but the Committee first needs to define the program. The Committee narrowed the program options to the following considerations for costing purposes: 1. A cleanout is best placed near the property line. Mr. Guzman highly recommended a two -way cleanout instead of two separated cleanouts. Mr. Hamers stated CMSD requires a cleanout at the property line. Currently, most newly constructed facilities 'have a cleanout in the garage area and a cleanout at the property line. Director Monahan pointed out the most benefit of implementing a two way cleanout would be to the existing older properties. • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING APRIL 18, 2007 PAGE 3 Mr. Dulake noted the cost of installing a cleanout five feet deep at the property line would cost approximately $1500 for a private contractor. 2. The upper lateral maintenance (between the cleanout at the property line and the facility) would remain the 'homeowner's responsibility. 3. Mr. Hamers verified an inspection fee with CCTV averages $350 and CMSD does not charge to inspect a lateral video. 4. Director Monahan stated a cleanout assistance program would need to be tied in with the sewer lateral inspection program. The Committee estimated the costs as follows: a. $350 - CCTV to prevent breaking a lateral; b. $350 - If roots or repairs are needed, must clean the lateral; c. $350 - Repeat the CCTV to avoid a "punch- hole "; d. $600 - Cost to install a two -way cleanout; e. unk - Variable cost to repair a lateral; f. $1,650 - Total estimated cost less the lateral repair costs; 5. Director Ooten pointed out an average lateral replacement cost is $5,000- $7,000 and the City of Santa 'Barbara provides a $2,000 rebate. 6. Mr. Hamers confirmed CMS'D requires cleanouts at the property line, including two -way cleanouts. The City of Newport Beach requires the resident to install the cleanout, but the City of Newport Beach maintains and cleans the laterals. 7. Director Monahan proposed CMSD could ask for bids to conduct two CCTV inspections for $350 with an unknown cost for a lateral cleaning between the two video tapings to motivate the owner to install a cleanout. CMSD could possibly share the cost of the total $1,650 for CCTV, line cleaning and two - way cleanout installation. 8. Mr. Hamers presented a shared cost possibility for the combined lateral CCTV and two -way cleanout installation by setting an annual limit of $100,000.00 to fund 80 laterals with an estimated cost of $1200.00 per unit. The owners would have to show proof of lateral issues through a valid receipt. Mr. . Guzman concurred this could be a good approach after the District completes the CCTV videos for all District main lines. 9. Mr. Dulake pointed out CCTV of the Royal Palm main line showed every lateral has roots. The Committee agreed on the need to involve the City of Costa Mesa in the process, noting City trees can buckle sidewalks, curbs and gutters. Directors Ooten and Monahan recommended showing the video of the Royal Palm main line and the impacts at the next District -City meeting. 10. Director Monahan stated this approach would only best serve areas CMSD knows there are problems and has inspection data to validate the issues. The program qualification criteria need to be developed. Mr. Hamers and Mr. Fauth will draft the qualification criteria and note the impact on senior citizens with low incomes. Mr. Fauth will seek representative costs and actions other Districts and cities have experienced with similar programs. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING !" APRIL 18, 2007' PAGE 4 CMSD EMERGENCY RESPONSE - DISTRICT YARD UPDATE The District Staff continues to work with realtors to acquire a parcel of City of Costa Mesa property for a CMSD Yard. The minimum District Yard requirements to respond to SSO emergencies remain as follows: a. Location: Centralized District location for equalized response; b. Lot Size: 9,000 to 12,000 sq ft for outside storage and parking; c. Building Size: 2,500 to 5,000 sq ft for office, hoist repairs and storage; The District is pursuing the 1780 Whittier Ave location through Don Gregg and Alan Burns and the Ward's Attorney, Bennett Jackson. CMSD first offered $950,000.00 for the property on January 31, 2006 for a 12,000 sq ft lot with two free - standing buildings totaling 2,720 sq ft, equating to $349 per sq ft. Electrical power, security, HVAC, parking lot paving, hoist installation, block wall fencing, interior drywall, painting and garage door upgrades will add an estimated $300,000.00. CMSD paid for the Phase I Site Assessment in February 2006, but due to late seller disclosures (undisclosed prior purchase agreement with another buyer, prior purchaser threat of litigation, and unknown authority for seller to sell the property), CMSD objected to the sale until the noted problems are rectified to the satisfaction of the District and prior to the District finding an alternate site at a minimum. An available property at 2314 Newport Blvd has potential and is currently undergoing construction to build a "shell building" with bay doors and sufficient outdoor parking. The property has a 20 -year plus cell pole lease which generates a monthly income, but the property is priced high at $1,995,000.00 for a 9,000 sq ft lot with a 2,500 sq ft building, equating to $798 per sq ft of building. The follow -on required action would be to finish the empty shell at additional expense. OCSD PARTICIPATION IN WESTSIDE PUMP STATION ABANDONMENT The meeting between OCSD and CMSD was held March 29, 2007 at 9:00 a.m. at the OCSD Administration Building. Representatives discussed the next steps towards abandoning six additional CMSD pump stations and replacing them with a gravity line. Mr. Fauth gave a brief overview of the meeting as follows: 1. There are six CMSD pump stations, one private pump station and one City of Newport Beach pump station to be abandoned and replaced with a gravity line to 19th Street and under the Santa Ana River. 2. OCSD originally intended to fund the project until the Orange County bankruptcy occurred. COSTA MESA SANITARY DISTRICT "^ MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING APRIL 18, 2007 - PAGE 5 3. A proposed 19th Street bridge remains in controversy due to perceived traffic issues from residents from both the cities of Costa Mesa and Huntington Beach. 4. In 1989, the estimated costs to abandon and to upgrade were $2 million and $3.4 million. 5. Mr. Hamers presented the lines CMSD previously constructed and the proposed gravity lines to be constructed. Required participants include the Department of Fish and Gagne, Department of Wildlife, Corps of Engineers and Orange County. 6. OCSD noted project justification would be based on providing "regional' service and the concept of SSO abatement. 7. The next steps include preparing cost estimates of the two options and then meeting again to discuss the feasibility. CLOSURE The next meeting is scheduled for May 9, 2007 at 10:30 a.m. ADJOURNMENT ® Chairman Monahan adjourned the meeting at 12:10 p.m. SECRETARY • PRESIDENT ® i �, a �� • COSTA MESA SANITARY DISTRICT MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING April 19, 2007 CALL TO ORDER The meeting was called to order at 5:30 p.m. by Board President, Art Perry ROLL CALL Committee Members Present: President Art Perry (rotating committee member) Director Gary Monahan (rotating committee member) Director Arlene Schafer Staff Members Present: Mr. Rob Harriers, Manager /District Engineer Mr. Marc Davis, Treasurer /Finance Director Ms. Joan Revak, Board Secretary /Clerk of the District Ms. Sherry Kallab, Accountant NEW BUSINESS Review of Treasurer's Report Mr. Davis discussed the long term investments entered into by the City prior to 2004 and/the resulting low yield reflected on the April 2007 Treasurer's Report. One of the District's long term investments will be maturing 5/14/2007 and the proceeds will be deposited into LAIF to provide liquidity in the event a district yard is located. Director Monahan noted that the next maturing District investment would be in September of 2007 and Mr. Davis stated that those proceeds would likely be placed in LAIF, as well. Mr. Davis reported that the District's cash flow should be sufficient until the 07/08 trash and sewer charges are received in November 2007. Mr. Davis informed the committee members that the District's Investment Policy will be presented at the next investment oversight committee meeting. Update on Financial Audit for 2006 -2007 Mr. Davis reported that the interim portion of the 2006 -2007 audit will begin Monday, April 23, 2007 and will focus on internal controls and testing of transactions. The 2006 -2007 audit should be completed in the fall of 2007. The fiscal year 2006 -2007 represents the last contract year with the audit firm of Diehl Evans and staff anticipates requesting that the board exercise the one year audit extension option. Page 2 L� Update on Internal Controls District Manager Rob Harriers requested a review of the District's internal controls and Mr. Davis reported that Alison Smidt, a member of Mr. Davis' firm, is in the process of performing cycle memos that document current procedures, requests for payments and posting of transactions. Mr. Davis added that the timing is good for the review because the transition from the City is now complete. Director Perry asked if the District has a two signature check requirement. Mr. Davis stated that the District does have a two signature requirement. In addition, staff is in the process of having the check signatories updated to Director Perry and Mr. Davis. PUBLIC COMMENTS There were no items discussed under public comments. ADJOURNMENT The meeting adjourned at 5:55 p.m. Approved by: • Secretary, Costa Mesa Sanitary District`, President, Costa Mesa Sanitary District Board of Directors Board of Directors • AV "Pui R w M11 UA PROJECT STATUS RET'OR'T' May 2007 Project 1 1 1 21 00 -1 01 West Side Pumping Station Abandonment Study Directors Ferryman and Ooten along with Manager /District Engineer Rob Harriers, Assistant Manager Tom Fauth and Inspector Paul Guzman met with OCSD General Manager Jim Ruth and executive engineering staff on March 29, 2007 to discuss OCSD's participation in the project. It was agreed that the two agencies will work together to determine an approximate project cost and then meet again to discuss the feasibility. The cost estimate is being prepared. Project 1112100 -129 Bristol Street Sewer The County of Orange plans on widening Irvine Avenue from Bristol Street to University Drive, which will cause relocation of the CMSD Irvine Pumping Station. The District can upgrade the station to a level able to serve the redevelopment of the area. The upgrade alleviates the need for the Bristol Street Pump Station and the project can be reduced to construction of a new gravity sewer only. These findings were submitted to the Orange County Development Agency and as requested the Sanitary District prepared a new three party agreement reflecting these findings. The agreement has been signed by the Sanitary District and is at the City of Newport Beach for approval. Project 1112100-135 Reconstructin Force Main for Elden Pumping Station Phase II Construction is complete. The State Department of General Services (DGS) has committed to recording the sewer easement. Proiect 1112100-159 Televising Sewer Lines Program Years 98 -99 99 -2000 Areas are televised as needed. Project 1112100-168 Irvine Pumping Station Remodel or Relocation The construction of the Phase I gravity sewers is complete and the District Engineering Staff is designing the new pumping station. The project will be out to bid on May 14, 2007 with bid opening on June 4, 2007. Project 1112100-171 Irvine Pumping Station Force Main Rehabilitation -Phase I 0 The design phase is continuing. Project 1112100-173 South Coast Plaza Pump Station Force Main Replacement • The Manager /District Engineer prepared a letter to the Board recommending delaying the project. The delay was recommended due to additional life expectancy found in the force main. The Board approved the delay on April 19, 2007. Project 1112100-175 OCSD Cooperative Project Grant - Televising CMSD Sewer Lines The televising is continuing. Project 1112100-176 WDR Grease Control Program Phase III The project was awarded to EEC at the January 2006 regular meeting and EEC is successfully managing the District's FOG Program. Project 1112100-181 Sewer Replacement Project Newport Boulevard at 19th Street Construction is continuing. • • Protecting our community's health by providing soUd waste and sewer coffection seavices. crosdcagov