Loading...
02 - MINUTES - BOARD OF DIRECTORS 2012-05-24ITEM 02 SAllt�q� U i COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MAY 24, 2012 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on April 16, 2012 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF President Ooten led the Pledge of ALLEGIANCE Allegiance. INVOCATION Director Scheafer led the Invocation. ROLL CALL DIRECTORS PRESENT: Robert Ooten, James Ferryman, Jim Fitzpatrick, Art Perry, Mike Scheafer DIRECTORS ABSENT: None STAFF PRESENT: Scott Carroll, General Manager; Anna Sanchez, Administrative Service Manager; Robin B. Hamers, District Engineer; Alan Burns, District Counsel; Marc Davis, District Treasurer; Teresa Gonzalez, Accounting Manager OTHERS PRESENT Dean Ruffridge, CR &R; Jim Mosher, Newport Beach resident; Maria Shafer, CCMS CEREMONIAL MATTERS AND PRESENTATIONS CITATION OF MERIT: Costa Mesa Police Department, Corporal Julian Trevino COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 President Ooten announced Corporal Julian Trevino was unable to attend the meeting and reported he will contact City of Costa Mesa CEO Tom Hatch to schedule another time or write a letter and send the certificate by mail. ANNOUNCEMENT OF LATE COMMUNICATIONS Director Perry reported he asked General Manager Carroll to include the minutes from the CASA Convention in the Board packet. CONSENT CALENDAR REPORTS MINUTE APPROVAL Special Board of Directors Meeting The minutes of the Special Board of Discussing Citizen Survey Questions — Directors Meeting Discussing Citizen Survey April 11, 2012 Questions of April 11, 2012, were approved as presented. Regular Board of Directors Meeting — The minutes of the Regular Board of April 16, 2012 Directors Meeting of April 16, 2012, were approved as presented. FINANCIAL REPORTS 40* Occupancy Report and payment to Costa Mesa Disposal — May 2012 Contract Payment to CR Transfer for Recycling Services & Disposal for April 2012 Adoption of Warrant Resolution No. CMSD 2012 -11 Ratifying Payment for the Month of April 2012 in the amount of $634,038.43 The Occupancy Report and payment to Costa Mesa Disposal for May 2012, was approved as submitted. The Contract Payment to CR Transfer for Recycling Services & Disposal for April 2012 was ratified. This item was pulled by Director Fitzpatrick for separate consideration. Directors' Compensation and Directors' Compensation and Reimbursement of Expenses for the Reimbursement of Expenses for the Month Month of April 2012 of April 2012, as listed in the Agenda Report dated May 24, 2012, were approved and ratified. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 Investment Report as of April 30, 2012 The Investment Report as of April 30, 2012 was approved. Budget Transfer for Solid Waste Fund The Budget Transfer for Solid Waste Fund Accounts Accounts was received and filed. Budget Transfer for Liquid Waste Fund The Budget Transfer for Liquid Waste Fund Accounts Accounts was received and filed. Budget Transfer for Temporary Staff The Budget Transfer for Temporary Staff Services Services was received and filed. END OF CONSENT CALENDAR Director Scheafer moved for approval of the Consent Calendar except for items pulled for a separate vote VII. B. 5. of the agenda. Director Fitzpatrick seconded the motion. The motion carried 5 -0. Director Fitzpatrick requested itemization of the legal fees related to the Quo Warranto issue. General Manager Carroll reported he will provide a summary of the charges before the next regular Board meeting. Director Fitzpatrick moved for approval of the Consent Calendar Item VII. B. 5. of the agenda. Director Scheafer seconded the motion. The motion carried 5 -0. PUBLIC COMMENTS Njjj�, President Ooten opened the Public Comments section of the meeting and invited those interested in addressing the Board to do so at this time. There was no response and President Ooten closed the Public Comments section of the meeting. GENERAL MANAGER'S REPORTS ADOPTION ORDINANCE NO. 91 PERTAINING TO PROCEDURES FOR PLACING AN ITEM ON THE AGENDA General Manager Carroll reported the proposed ordinance would amend Section 3.01.100 of the Operations Code and addressed current requirements for placing items on an agenda. Director Perry indicated a preference for Alternative Action No. 2, having the Board President and Vice President approving or denying a request to place items on the COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 agenda. Discussion followed regarding the purpose of this item having been placed on the agenda. Director Ferryman indicated that certain items have been placed on the agenda over and over again and those items have been voted on multiple times. After a while it becomes a waste of time and it's not constructive. Director Perry moved to accept Alternative Action No. 2 as stated in the agenda report dated May 24, 2012. Director Ferryman seconded the motion. Discussion followed regarding the possibility of setting up an Executive Committee. Depending on the option chosen, staff will return to the Board with an appropriate ordinance for consideration. Director Fitzpatrick indicated it is incumbent on each Board Member to place items on agendas. Director Fitzpatrick made a substitute motion to receive and file the report. District Counsel Burns indicated there should be a process that specifies what items can be placed on agendas. The substitute motion failed for lack of a second. Director Perry called for the question and the motion carried 4 -1, with Director Fitzpatrick, opposed. Staff will return to the Board with an ordinance at its next Board meeting. TERMINATE CONTRACT WITH CR &R ENVIRONMENTAL SERVICES General Manager Carroll provided options to consider regarding the item. He reported that if it is decided to terminate the contract without cause, the six (6) year evergreen clause would apply and expire on 2018. If the Board decides to terminate the contract with cause as in breach of contract, CR &R would have the right to correct the issue. Mr. Carroll noted that it would be very difficult to find a replacement hauler within thirty (30) days and would be liable for $800 thousand for the trash containers. A third option is no action. District Counsel Burns reported that if termination is for cause, the District would have to have cause and requested that a closed session be held to discuss the issue. Mr. Carroll indicated CR &R Representative Dean Ruffridge is in attendance and is prepared to provide a presentation. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 District within thirty (30) days. He referenced the staff report regarding an RFP costing $50,000 and stated it could be done at no cost to the District if it is a statement noting the winning bidder would be liable for the RFP costs. President Ooten deferred to CR &R Representative Ruffridge for a presentation. Mr. Ruffridge presented details of the agreement term noting it provides an environment of certainty for the company to sustain it high level of service to the community. He reported that evergreen clauses have been negotiated with other cities in Orange County. He stated that other cities have recognized that by providing business certainty, subject to stern review, CR &R has the ability to finance and invest money in recycling technology to keep its customers in compliance with State mandates at all times. Discussion followed regarding the importance of business certainty, results of the recent survey, looking at other services, testing the market and current rates being comparable to surrounding cities. Director Fitzpatrick commented that the District is currently in year twelve (12) of a ten (10) year contract and is thus, in the evergreen stage. He took exception with the 6 (six) year evergreen. District Counsel Burns reported the President controls the order of the meeting. Director Perry moved to accept the alternative action of not terminating the District's contract with CR &R. Director Ferryman seconded the motion. Director Ferryman addressed results of the recent survey where the provider received a high approval rating. He added the community is receiving a good service, that the price is getting better and that if an item is not broken, it doesn't need fixing. He stated the voters have indicated they are willing to pay more in order for less waste to go into landfills. Director Ferryman indicated he is not motivated to terminate a provider that is doing a good job. President Ooten addressed the rate to hauler and the need to charge a fee for administrative costs. He noted there have been no complaints, that the District fees are in the mid -range and questioned the value of going out for an RFP. He felt the District is in a strong negotiating position and recommended not terminating the contract but to consider a time certain to renegotiate the contract. He reiterated he saw no value in terminating the contract at this time. Director Scheafer addressed the $800,000 that would cost for the trash containers as well as $50,000 for the RFP and stated he does not see any reason to terminate the contract. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 Director Perry expressed agreement with President Ooten and felt the services provided are good. Director Fitzpatrick felt the District is at a critical junction, noted there are no formal dates to review the contract and no audits scheduled and felt it is bad business to negotiate with only one vendor. He opined there are plenty of people that could compete for the business and spoke in support of a competitive bid process. Director Fitzpatrick made a substitute motion to direct staff to draw up a six (6) year evergreen contract termination notice with CR &R, as soon as possible. The substitute motion died for lack of a second. Director Perry called for the question. The original motion carried 4 -1, with Director Fitzpatrick, opposed. ADOPT ORDINANCE NO. 90 PERTAINING TO AMENDING THE TERM LIMITATION FOR TRASH AND RECYCLING CONTRACTS General Manager Carroll presented the ordinance noting it calls to amend Section 4.04.070F of the Operations Code pertaining to a five (5) year term limitation for entering contracts with private vendors. He noted exceptions including the trash contract. The amendment would indicate that if and when the District goes out to bid on a new contract, the term would be for ten (10) years. Director Fitzpatrick inquired regarding the possibility of imposing the ten (10) year term at this time. Mr. Carroll responded that it would not impact the existing contract but would apply to any new contracts. Discussion followed regarding imposing the ten (10) year term limit now. District Counsel Burns indicated it could be done as long as the current contract is not impinged. Discussion followed regarding the importance of setting parameters and limitations, and outlining the benefits to rate payers. President Ooten noted that many agencies have long -term agreements and disagreed with listing justification for the agreement. Director Fitzpatrick felt the Board should adopt a document as to why it has or has not chosen certain actions. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 Director Perry moved to not approve Ordinance No. 90 without further Board discussion at a special meeting. Director Scheafer seconded the motion. Director Fitzpatrick made a substitute motion to defer the item to an Operations Committee meeting. After brief discussion, Director Fitzpatrick withdrew his substitute motion. The original motion carried 5 -0. This item will be scheduled for discussion at an upcoming special meeting of the Board. Director Fitzpatrick opined that since the Board didn't approve termination of the CR &R contract, Items IX. C, E, F and G of the agenda need no further discussion as they involve a substantial amount of money. District Counsel Burns noted the possibility that the Board may overturn its decision to terminate the contract after consideration of those items. General Manager Carroll indicated he will schedule a special meeting and advise Members of the Board. SOLID WASTE RATES FOR FISCAL YEAR 2012 -13 - DISCUSSION FOR LOWERING RATES Mr. Carroll presented background including previous consideration by the Board during presentation of the proposed budget. He noted the current reserve fund balance and reported that because the District has no capital expenditures, and recommends using those reserves to lower the rate payer rates. Mr. Carroll presented details of ten (10) year analysis noting that the rate of $19.00 per month could be maintained for the next seven (7) years. He suggested lowering the rate to $19.00 per month for the next four (4) years and re- evaluate slowly increasing those rates at that time. He noted that the recommendation assumes no rate increases by CR &R. He added that CR &R has affirmed there will be not rate increases during the next fiscal year. Director Perry suggested approving the rate for four (4) years but evaluating rates every year. District Counsel Burns indicated that Proposition 218 is involved but that no postcard hearing will be necessary since it is a rate decrease. President Ooten addressed accumulation of reserves and continual decreases in trash tonnage, and a rate stabilization fund created when the contract was created. Ensuing discussion pertained to ways to improve diversion. Director Scheafer moved to give staff direction to prepare a budget with a the solid COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 waste rate for FY 2012/2013 at $19.00 per month. Director Ferryman seconded the motion. The amended motion was agreed to by Director Scheafer and Director Ferryman and the motion carried 5 -0. AUTHORIZE STAFF TO PERFORM A CONTRACT PERFORMANCE AUDIT OF CR&R ENVIRONMENTAL SERVICES President Ooten moved to continue this item to an upcoming special meeting of the Board. Director Scheafer seconded the motion, which carried 5 -0. COST OF SERVICE STUDY FOR CR$R ENVIRONMENTAL SERVICES President Ooten moved to continue this item to an upcoming special meeting of the Board. Director Scheafer seconded the motion, which carried 5 -0. CONDUCT A SOLID WASTE /RECYCLING TECHNOLOGY STUDY THAT EVALUATES THE DIFFERENT TYPES OF TECHNOLOGY HAULERS ARE USING TO DIVERT REFUSE FROM LANDFILLS President Ooten moved to continue this item to an upcoming special meeting of the Board. Director Scheafer seconded the motion, which carried 5 -0. ADOPT DRESS CODE POLICY FOR BOARD OF DIRECTORS REGULAR MEETINGS Mr. Carroll presented the report with a proposed dress code policy. Director Scheafer moved to deny adoption of a dress code policy. Director Ferryman seconded the motion, which carried 4 -1, with Director Fitzpatrick opposed. PROJECT #190 - CANYON FORCE MAIN REHABILITATION Mr. Carroll presented the report noting the Board approved the project since there have been several breaks in the last few years. He addressed the budgeted amount, reported going out to bid and that no bids were received. Mr. Carroll reported negotiating with GCI Construction and addressed the price and recommendations. Director Perry moved to direct the General Manager to enter into a contract with GCI Construction in the amount of $104,540, approve a budget adjustment of $66,000 to cover construction, approve a 10% contingency for the project and approve contract administration and inspection services by Robin B. Hamers and Associates for 10% of the construction contract. Director Ferryman seconded the motion, which carried 5 -0. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 OPERATIONS COMMITTEE TUESDAY, MAY 15, 2012, 9:30 A.M. (DIRECTOR FERRYMAN AND DIRECTOR SCHEAFER) Director Ferryman presented an overview of items discussed at the May 15, 2012 Operations Committee. District Engineer Robin Hamers addressed the Mesa Consolidated rate decrease noting that action is needed by the Board. It was noted that the item will be placed on the June agenda of the Board. Director Fitzpatrick suggested structuring the Operations Committee agenda to consider the sewer first and then recycling following. He suggested considering noticing the meeting differently for increased participation. It was noted that if all five Board Members were to participate, the meeting would have to be noticed as a special meeting of the Board. Members of the Board provided direction to staff to place consideration of scheduling special meetings when there are substantive issues to discuss at the next special meeting of the Board. 'N* ENGINEER'S REPORTS PROJECT STATUS REPORT District Engineer Harriers referenced the report and related actions by the Operations Committee. TREASURER'S REPORTS District Treasurer Davis reported no Treasurer's Report at this time. ATTORNEY'S REPORT PROVIDE DIRECTION ON PUBLIC RECORDS ACT REQUEST TO THE CITY OF COSTA MESA REGARDING FORMER CITY ATTORNEY KIM BARLOW'S WRITTEN OPINION REGARDING COMPATIBILITY /INCOMPATIBILITY OF OFFICE District Counsel Burns stated he is seeking direction on the letter he prepared that was rescinded. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 Director Fitzpatrick noted that the item was discussed during a regular Board meeting and that Counsel has time to prepare for that discussion. He expressed disappointment regarding the work product being inconsistent with Board director. He noted the direction was to rescind and resend the letter. President Ooten indicated he gave direction to rescind, but not resend. Director Ferryman moved to send the letter to the City of Costa Mesa in its present form. Director Perry seconded the motion. Director Fitzpatrick made a substitute motion to have Legal Counsel take action as originally directed at the last Board meeting. The motion died for lack of a second. The original motion carried 4 -1, with Director Fitzpatrick, opposed. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) 4iI� President Ooten reported the election of Joint Chairs and a Vice Chair. He addressed a discussion on SARFPA's contract with OCSD where they are in violation by contracting with a mining waste company and OCSD will issue a letter of violation. He noted a number of operations issues approved involving instrumentation and internet upgrades and there was also a meeting to conduct orientation. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry reported discussions pertained to dues, approval of the budget by the Board and a resolution to Brian Moore who is retiring from the Corps of Engineers. He noted there is concern regarding his replacement. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) President Ooten reported discussion occurred regarding the Grand Jury report on Special Districts and a consensus occurred to bring in LAFCO for further discussion at the next meeting in mid -June. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) None CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) Director Scheafer commented on the CASA Conference, thanked Director Perry for compiling notes and stated he was impressed with the sessions regarding electronic COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 reporting. He added there was a presentation regarding different types of generations and felt it would help boards to be more cognizant of their target markets. Discussion followed regarding the number of anaerobic digesters in the south coast. Director Ferryman reported the Conference included a highlight of a community college that offers sewer instruction and an AS degree program. They have partnered with many districts for sponsorships and Director Ferryman addressed a shortage of qualified people in the future and suggested they contact Orange Coast College to consider developing a program there. OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE NO. 55, OPERATIONS CODE SECTION 3.01.030 Director Fitzpatrick reported attending a Feed -to -Fire forum and reported there is an open primary on June 5, 2012. In addition, he reported on a City liaison meeting where cost allocation was presented. OLD BUSINESS None NEW BUSINESS DISCUSS DISTRICT COUNSEL AGREEMENT Director Fitzpatrick addressed exemptions currently in the Operations Code regarding the District Counsel and trash. He suggested implementing a formal performance review of the District Counsel and requested consideration of the contract agreement regarding term limits. Discussion followed regarding the benefits of regular performance reviews and providing evaluations and feedback. Staff was directed to place the item on a future agenda. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Scheafer reported receiving notice regarding a special meeting to consider the 73/405 freeway widening. He inquired regarding possible impacts to OCSD. Mr. Hamers reported it will not impact the sewer lines but may impact the entrance to OCSD. Director Scheafer reported seeing an OCSD truck on Giesler every morning and COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2012 wondered about it. District Counsel Burns inquired regarding the process to take until the Board can review his performance and provide feedback. Board Members responded for Mr. Burns to continue his activities in regards to the Board. Director Ferryman addressed the upcoming Fish Fry. In response to Director Fitzpatrick's inquiry regarding the trash hauler performance review, Mr. Carroll reported he would like to give that responsibility to the new Management Analyst who will start on May 4, 2012. Director Fitzpatrick reported an unsafe practice by a contractor, Southwest Pipe Line. Mr. Carroll stated staff will follow up. Mr. Carroll will advise Board Members regarding scheduling a presentation for Corporal Julian Trevino_ ADJOURNMENT President Ooten adjourned the meeting at 7:45 L Secretary President