02 - MINUTES - BOARD OF DIRECTORS 2012-06-28COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 28, 2012
I. 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.
II. PLEDGE OF President Ooten led the Pledge of
ALLEGIANCE Allegiance.
III. INVOCATION Director Scheafer led the Invocation.
IV. 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; Javier Ochiqui, Management
Analyst
OTHERS PRESENT: Dean Ruffridge, CR &R; Lawrence Jones,
CR &R; Maria Shafer, CCMS; Debbie
Morris, HF &H /Resident; Thy Vo, Orange
County Register
V. CEREMONIAL MATTERS AND PRESENTATIONS
Environmental Excellence Awards:
Jose Hernandez, Mika Community Development Corporation
President Ooten and Members of the Board presented the Environmental Excellence
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Award to Jose Hernandez, who, in collaboration of the Mika Community Development
Corporation developed a community garden which is being used by twenty (20) families.
In addition, the Board offered him a compost bin for use in the garden.
VI. ANNOUNCEMENT OF LATE COMMUNICATIONS
Director Scheafer submitted an expense sheet to be placed into record, after the
agenda was posted and noted the need to take action at this time.
Director Ferryman moved to add the document to the Consent Calendar agenda.
President Ooten seconded the motion, which carried, unanimously.
VII. CONSENT CALENDAR
REPORTS
A. MINUTE APPROVAL
1. Operations Committee — May
2012
15, The minutes \the ay 15, 2012
Operations Committee were approved as
presented.
2. Special Board Meeting — Closed
Session to Discuss Existing Litigation
— May 16, 2012
3. Special Board Meeting — Customer
Satisfaction Survey Results — May
21, 2012
The minutes of the Special Board Meeting
of May 16, 2012, were approved as
presented.
The minutes of the Special Board Meeting
of May 21, 2012, were approved as
presented.
4. Regular Board of Directors Meeting — This item was pulled from the Consent
May 24, 2012 Calendar for separate vote.
B. FINANCIAL REPORTS
5. Occupancy Report and payment to
Costa Mesa Disposal — June 2012
6. Contract Payment to CR Transfer for
Recycling Services & Disposal for
May 2012
The Occupancy Report and payment to
Costa Mesa Disposal for June 2012, was
approved as submitted.
The Contract Payment to CR Transfer for
Recycling Services & Disposal for May 2012
was ratified.
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7. Adoption of Warrant Resolution No. This item was pulled by Director Fitzpatrick
CMSD 2012 -12 Ratifying Payment for for separate consideration.
the Month of May 2012 in the amount
of $799,180.49
8. Directors' Compensation and
Directors' Compensation and
Reimbursement of Expenses for the
Reimbursement of Expenses for the Month
Month of May 2012
of May 2012, as listed in the Agenda Report
dated June 28, 2012, were approved and
ratified.
9. Investment Report as of May 31,
The Investment Report as of May 31, 2012
2012
was approved.
10. Third Amendment to Agreement
e Third Amendment to Agreement — EEC
EEC
was approved.
11. Budget Transfer for Electrical System
The Budget Transfer for Electrical System
Survey of CMSD HQ Building
Survey of CMSD HQ Building was
approved.
END OF CONSENT CALENDAR
Director Fitzpatrick moved for approval of the Consent Calendar except for items pulled
for a separate vote (VII. A.4 and B.7.). Director Scheafer seconded the motion. The
motion carried 5 -0.
Regarding the minutes from the Regular Board meeting of May 24, 2012, Director
Scheafer noted a slight typographical correction.
Director Fitzpatrick requested expansion of the justification for consideration of Adoption
of Ordinance 91 under the minutes of May 24, 2012.
Director Fitzpatrick moved that the minutes from the May 24, 2012, Regular Board
Meeting reflect justification for consideration of Adoption of Ordinance 91 and that the
minutes be brought back for consideration of approval at the next meeting of the Board.
Director Scheafer seconded the motion, which carried 5 -0.
Regarding Warrant Resolution No. CMSD 2012 -12, Director Fitzpatrick referenced the
Household Hazardous Waste program.
General Manager Carroll reported that staff is working on the matter and that analysis
regarding expansion of the program will be brought before the Operations Committee.
Director Fitzpatrick requested expansion of the Household Hazards program using Solid
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Waste Funds. He questioned the CR &R container collection.
Accounting Manager Teresa Gonzalez responded that amount reflects a 14% share for
additional containers.
Director Fitzpatrick commented on Myers -Nave charges noting they do not contain any
level of detail.
General Manager Carroll reported that details are shown in invoices but not in the
warrant.
Director Fitzpatrick indicated the need for details in order to understand what is being
paid.
Accounting Manager Gonzalez reported that must likely, Myers -Nave invoices will be
paid in June.
Director Fitzpatrick inquired regarding bills for quo Warranto actions.
Mr. Carroll reported that those items were presented to the board as part of his weekly
update and that he will provide the information, again to the Board.
Director Fitzpatrick commented on the increase in sewer lateral requests.
Mr. Carroll noted this has been the busiest year in that regard than previous years.
Director Scheafer inquired regarding Slater Builders charges.
Director Fitzpatrick moved to approve Consent Calendar Item B.7. Director Scheafer
seconded the motion, which carried 5 -0.
VIII. PUBLIC HEARING '%
President Ooten opened the Public Hearing. There being no one interested in
addressing the Board, President Ooten closed the Public Hearing.
A. Adoption of Solid and Liquid Waste Rates
1. CMSD Resolution No. 2012 -814 Adopting Annual Charges for Solid Waste
Director Perry moved to adopt Resolution No. 2012 -814, adopting annual charges for
Solid Waste. Director Scheafer seconded the motion, which carried 5 -0.
2. CMSD Resolution No. 2012 -815 Adopting Annual Charges for Liquid Waste
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Director Scheafer moved to adopt Resolution No. 2012 -815, adopting annual charges
for Liquid Waste. Director Ferryman seconded the motion, which carried 5 -0.
IX. PUBLIC COMMENTS
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.
X. GENERAL MANAGERS REPORTS
A. Adopt a Budget for Fiscal Year 2012 -2013: CMSD Resolution No. 2012 -816
General Manager Carroll presented details of the report addressing background and
noted that previous comments from the Board have been incorporated into the main
budget and that changes have been identified in the report. He addressed reductions in
trash tonnage, allocation of $25K to conduct a Sewer Survey and $20K for the Sewer
System Manage Plan audit and new office furniture for the reception area lobby. In
addition, new positions were incorporated into the budget as well as the Tuition
Reimbursement Program, Reward Ideas Program, long -term disability and life
insurance, the Zero -Waste Plan and the sewer vactor truck. Mr. Carroll addressed
rates for Solid Waste and reserves and noted that because of the rate reduction being
offered, there will be a loss in the Solid Waste Fund but it will be funded by the Solid
Waste Reserves. He added that rates will be reviewed every year. He reported on the
contract for a proposal with Inside - the - Outdoors and noted the costs are not yet
included in the budget. He recommended adding the approved amount into the budget.
Director Perry addressed monthly savings from Solid Waste rate changes.
Mr. Carroll thanked staff for their work on the budget and especially, Accounting
Manager Gonzalez. He reported receipt of an award on the budget from the
Government Finance Office Association and that staff will be submitting it for
consideration of another award.
Discussion followed regarding the due date for bids on the vactor truck and the
possibility of designating the loss of $83K as something other than a loss. Regarding
the later, Ms. Gonzalez stated that it must be designated as a loss on financial
statements because there is insufficient revenue to cover the expenses.
Mr. Carroll noted that it is a planned loss, but that the budget is balanced.
Director Fitzpatrick requested proper justification regarding rates, addressed the goal of
the trash contract and felt there is no plan. He pointed out that the contractor was
asked to participate in the rate reduction but that they refused. He asked for more
thoughtful consideration, moving forward, to critical milestones and didn't feel the
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asked to participate in the rate reduction but that they refused. He asked for more
thoughtful consideration, moving forward, to critical milestones and didn't feel the
District is doing sufficient documentation to the public nor are the mechanisms in place
to get to that documentation. He inquired regarding Solid Waste rate reduction and the
process for increasing rates next year.
General Manager Carroll reported that the Board gave direction to staff to review rates
every year. He affirmed the need for a Proposition 218 hearing when increases in rates
are proposed.
District Counsel Burns indicated that a Proposition 218 hearing is required when
increasing rates or when there is a change in the formula for calculating rates.
Discussion followed regarding the rate reductions being a temporary decrease and it
was noted that rates will eventually be increased.
Director Fitzpatrick felt that there is no process in place for notification.
Discussion followed regarding the possibility of having a separate session to explore
rates in detail.
Director Fitzpatrick felt that rate increases from the hauler have not been considered.
Mr. Carroll reiterated that rates will be considered on a yearly basis.
Director Fitzpatrick requested timeliness for Special Board meetings to consider Solid
and Liquid Waste strategic planning and asked that staff provide Members with a
calendar of upcoming meetings and their respective agendas.
District Counsel Burns indicated that the budget presentation was needed in order to
consider Items VIII. A. 1. and 2.
Director Ferryman commended staff on the budget.
District Counsel Burns suggested the Board adopt Items VIII. A. 1. and 2. first, before
adopting the budget.
Director Scheafer moved to adopt the budget for Fiscal Year 2012 -2013: CMSD
Resolution No. 2012 -816. Director Perry seconded the motion, adding the amount
budgeted for the Inside - the - Outdoor program.
Director Fitzpatrick noted that he was in support of adopting the budget but would like to
consider ways to increase Code Enforcement, specifically in relation to scavenger
trucks.
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Mr. Carroll reported that he will return with options for the Board to consider at a future
meeting.
Director Scheafer agreed to the addition to the motion. The motion carried 5 -0.
B. Refund of Sanitary Assessment Overpayment
Administrative Service Manager Anna Sanchez presented details of the report noting
that a refund of Sanitary Assessment Overpayment was requested by the property
owner of two -unit property that was erroneously assessed as a four -unit property. She
noted that the property owner has requested additional refunds for the last fifteen (15)
years at an annual interest rate of 6% totaling $6,300. She recommended continuing
with the current policy for providing a refund for a single fiscal year only. She added
that anything over that would be considered a gift of public funds.
Director Ferryman reported that the refund used provided for up to three years.
District Counsel Burns reported that would be a gift of public funds, addressed the
related code and noted the issue comes up frequently but there is a reason to have a
statue of limitations and that the law has changed making it a complicated issue.
Director Scheafer asked regarding not being able to return funds that were incorrectly
acquired.
Mr. Burns stated that the property owner did not assert their claim in a timely manner.
It was noted that CMSD never went back more than three (3) years and that the law has
changed.
Mr. Burns reported that the Board is bound by its ordinance to only go back one year.
District Engineer Hamers noted that CMSD refunds the current year by correcting
County records and that the County will reduce what they owe to CMSD.
Mr. Burns added that the ordinance provides different tests under the law.
Director Ferryman moved to approve a one -year refund. Director Perry seconded the
motion, which carried 5 -0.
C. Adopt Ordinance No. 90 pertaining to procedures for placing an item on the
agenda
General Manager Carroll presented the report including background and Board direction
to allow or deny placement of an item on an agenda by approval of the President and
Vice President. He added that District Counsel Burns stated the option may violate the
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Brown Act and suggested having the Operations Committee make a decision as to
adding an item on a Board agenda if the item is not brought up during a Board meeting.
If the item is denied by the Operations Committee, the requestor has the option to
appeal the decision to the entire Board. If an item is requested for a future agenda
during a regular Board meeting, the Board may either approve or deny the item.
Director Perry moved to adopt Ordinance No. 90 pertaining to procedures for placing an
item on the agenda. Director Ferryman seconded the motion.
Director Fitzpatrick felt that the item was placed for consideration in order to prevent him
from placing consideration of the trash contract on the agenda.
Director Fitzpatrick made a substitute motion to receive and file the report and maintain
the current process. President Ooten seconded the substitute motion, which failed, 2 -3,
with Directors Scheafer, Perry and Ferryman, opposed.
Director Perry called for the question on the original motion. The motion carried 3 -2,
with President Ooten and Director Fitzpatrick, opposed.
D. Contract with Inside the Outdoors Ahl�
General Manager Carroll presented the report addressing previous consideration and
recommendations by the Operations Committee, providing waste -free lunches to
encourage zero -waste behavior, providing the project to all classrooms in Costa Mesa
public schools, other programs offered the by the organization and the possibility of
coordinating with Newport Mesa. Brief discussion followed regarding making sure that
the contract has an "out clause" and that it reflects the Board's desire to pay -as- you -go.
Director Fitzpatrick moved to approve the contract with Inside the Outdoors. Director
Perry seconded the motion, which carried, 5 -0.
Brief discussion followed regarding having the contract reviewed by Legal Counsel.
E. Adopt Ordinance No. 91 to Expand the General Manager Scope of Work
and Employee Handbook
Administrative Service Manager Anna Sanchez presented details of the report including
the last updates, subsequent changes to State and Federal statues, combining existing
rules as well as administrative regulations and impacts to personnel costs or benefits.
She stated that the changes are outlined in detail in the report.
Discussion followed regarding stand -by policies, tiers of pay, review of the handbook
with a consultant.
President Ooten suggested an annual review of the handbook by a consultant.
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Ms. Sanchez reported the handbook was reviewed by staff and employees and
addressed changes to the General Manager Scope of Work.
Director Ferryman asked if employees will be affirming receipt and agreement. Director
Scheafer inquired regarding placing a requirement that all employees must be CPR
trained.
Mr. Carroll noted that the entire staff has been CPR trained and that the District will be
obtaining an AED.
Director Fitzpatrick suggested considering annual review of the handbook with major
updates performed very three (3) years.
Brief discussion followed regarding the travel per diem rate. Ms. Sanchez noted they
are comparable to those of surrounding cities.
Director Ferryman moved to adopt Ordinance No. 91 to expand the General Manager
Scope of Work and Employee Handbook. Director Perry seconded the motion, which
carried 5 -0.
F. Paperless Agenda Policy
The savings realized by the paperless agenda policy was noted.
Director Perry inquired regarding the cost related to his obtaining a hard copy of the
agenda packet.
Director Fitzpatrick addressed investments made by CMSD on technology to avoid
printing agenda packets as well as the related savings.
Director Fitzpatrick moved to direct staff to no longer print agenda packets. The motion
failed for lack of a second.
It was noted that at least one paper agenda must be printed for public review and that
the costs of printing an additional copy are insignificant.
Discussion followed regarding the possible policy violation if one Board Member uses a
paper agenda. It was noted that the policy allows for the printing of agenda packets
Director Fitzpatrick indicated the practice is disingenuous and falls in the face of the
spirit and intent of the policy.
President Ooten directed staff to review if there are additional costs not reflected in the
current staff statements.
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Director Fitzpatrick moved to direct staff to perform an evaluation of costs involved.
President Ooten seconded the motion which failed, 2 -3, with Directors Scheafer, Perry
and Ferryman, opposed.
Director Scheafer moved to receive and file the report. Director Perry seconded the
motion, which carried, 4 -1 with Director Fitzpatrick, opposed.
G. Review New Marketing Video of CMSD — Oral Report
General Manager Carroll stated that new marketing videos of CMSD are ready to share
with the Board.
Director Fitzpatrick felt that they should be reviewed by the Operations Committee.
Director Scheafer pointed out that he and Director Fitzpatrick were invited to view the
videos but that Director Fitzpatrick chose not to attend.
Director Fitzpatrick felt it is inappropriate to use Board time to review the item.
Director Fitzpatrick moved to present the item to the Operations Committee. President
Ooten seconded the motion, which carried 4 -1 with Director Ferryman, opposed.
XI. OPERATIONS COMMITTEE
A. Tuesday, June 19, 2012, 9:30 a.m. (Director Ferryman and Director Perry)
Director Ferryman reported on the June 19, 2012, Operations Committee noting there
were no standing reports. The Committee addressed trash cans in alleys and related
hazards regarding access by the Fire Department and traffic problems. The Committee
decided to place the item on a future Board agenda for discussion.
Director Perry reported comments from a member of the public expressing concerns
about the issue.
General Manager Carroll reported that the intent of the policy was to place trash
containers at curbsides, not in alleys. He added that staff is working with the City and
will present options for the Board to consider, adding that alleys are considered right -of-
ways.
Director Fitzpatrick reported speaking with the Fire Department and that trash cans in
alleys are considered a fire hazard. He felt that CMSD has not addressed the issue.
District Counsel reported it would be appropriate to review the CMSD ordinance, City
ordinance and State law. He stated the need to understand what the different
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ordinances are.
Mr. Carroll stated he will try to present the issue to the Operations Committee in July for
review by the Board at its August meeting.
Director Ferryman continued reporting addressing an update by District Engineer
Hamers and he expressed appreciation to Directors who attended the meeting. He
addressed sewer system action items.
Director Fitzpatrick inquired regarding the 1/1 program a quested an update on what
OCSD is willing to do.
Mr. Carroll responded that OCSD will agree to provide CMSD with supplies and
sealants but will not grant funding.
President Ooten addressed benefits to CMSD and noted that CMSD will remain
committed because it meets the requirements of State regulations.
Director Fitzpatrick requested a detail of benefits to CMSD, addressed technology and
discussions regarding grade 5's, addressed budget review of comparable years and
suggested monitoring the pace.
District Engineer Hamers reported that staff has created a four -year program and
addressed the projects completed. �
Regarding Project 129, Director Ferry man pipe- bursting technique
and the resulting savings.
Discuss oll ed regarding the life expectancy of a slip line.
Director Ferryman presented an update of the various projects.
Discussion followed regarding the expected front lobby sign -off, the Fairview trunk and
the OCSD process.
Director Fitzpatrick commented on the challenges of not being able to comment during
the Operation Committee meetings. He suggested bringing the issue to a future Board
meeting to make the Committee meetings full Board meetings. He commented on lost
momentum by combining the Sewer and Recycling Committees into the Operations
Committee.
President Ooten noted that he would like to see discussions on the recycling part of the
agenda.
Discussion followed regarding reconsidering having two Committee meetings or the
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possibility of two Board meetings in order to get the recycling program back to what it
was.
General Manager Carroll will present the issue at a future Board meeting.
Discussion followed regarding the process by Mid -way Cities.
President Ooten agreed for the need to expand participation at the Operations
Committee meetings including the Recycling part of the agenda as well as the
possibility of considering a second Board meeting per month for general discussion.
Director Fitzpatrick suggested sending notices through government mail.
XII. ENGINEERS REPORTS
A. Project Status Report
District Engineer Hamers referenced the report and related actions by the Operations
Committee. He offered to respond to questions from the Board.
B. Project #171 Irvine Force Main Rehabilitation
Mr. Hamers referenced a picture of the force main and noted that it was saved in the
nick of time. He addressed plans for additional state -of- the -art testing of force mains
and noted that additional Board discussion would be good. He noted that a fourteen
(14) inch main was too long and that now it is more efficient.
Discussion followed regarding the time needed to review pumping and the possibility of
notifying Newport Beach.
Mr. Carroll stated he will issue a Press Release.
Mr. Hamers addressed the installation of back -up pumping and the SCADA System.
Director Perry moved to accept improvements, file notice of completion and exonerate
bonds. Director Scheafer seconded the motion, which carried 5 -0.
C. Mesa Consolidated Water District Groundwater Well Automation and
Treatment Updates
Mr. Hamers presented recommendations.
Discussion followed regarding the amount waived and Director Fitzpatrick indicated he
would be in favor of not waiving fees, at all.
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Mr. Hamers suggested a review of the existing MOUs and noted reciprocal /mutual aid
agreements.
Director Fitzpatrick retracted his comments based on the MOU. He reported attending
a Mesa study group and commented on colored water treatment and the possibility of
evaluating the practice with Mesa.
Mr. Harriers indicated he would like to review the issue and noted that it is at their
treatment plant where they probably have a discharge through OCSD.
Director Scheafer moved to support Mesa's project and waive a portion of the fees.
Director Fitzpatrick seconded the motion, which carried 5 -0.
RECESS /RECONVENE
President Ooten called for a brief
7:58 p.m. with all Members, present
XIII. TREASURER'S REPORTS
fhe a embly reconvened at
District Treasurer Davis reported no Treasurer's Report at this time.
XIV. ATTORNEY'S REPORT
District Counsel Burns reported no Attorney's Report at this time.
XV. LOCAL MEETINGS
A. Orange County Sanitation District (OCSD)
Director Ferryman reported on the OCSD new chairman and that they held a contest for
high schools for a PSA regarding, "Don't flush bad stuff down the toilet" and awards.
The PSA will be shown on local TV and cable.
Director Fitzpatrick suggested contacting TV24 for show the PSA. Staff will check
regarding copyright issues.
Director Ferryman reported that Intercheck was placed on formal notice but staff wants
to negotiate to continue their research. Staff will return with the issue at an upcoming
meeting. In addition, he stated their two -year budget was passed. In addition, a
contract award was recommended for Tully Ranch for sludge but another company
presented information so the item will be considered next month.
B. Santa Ana River Flood Protection Agency (SARFPA)
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Director Perry reported attending SARFPA but there were not enough members present
to approve the budget. They elected their Executive Committee and Director Perry
presented the status of the Santa Ana river main stream and surrey (CHECK
SPELLING) line. He noted that a field trip for the surrey line will occur next month and
that they presented a micro - tunneling video.
C. Independent Special Districts of Orange County ( ISDOC)
President Ooten reported on an ISDOC meeting notin they have begun their plan
responses for the Grand Jury.
D. California Special Districts Association
Director Scheafer reported on a CSDA meeting noting there was discussion regarding a
conference in San Diego and future sites, legislative days and dates to save for 2013.
He addressed a General Manager Leadership Summit, awards and a grant locator
company (eCIVIS) presentation. It was suggested that they present to the CMSD
Operations Committee and addressed a special district mapping system.
E. California Association of Sanitation Agencies (CASA)
None
F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No.
55, Operations Code Section 3.01.030
Director Fitzpatrick reported attending a California Research Recovery Association
noting they are set up for multi- containers but could retool to accommodate CMSD as
well as new technology. He addressed Terra Verde for organic waste as well as
feedback from OCSDarding anaerobic digesters.
XVI. OLD BUSINESS
None
XVII. NEW BUSINESS
A. CSDA Region 6 Elections — Select a candidate of choice and direct
President Ooten to vote on CMSD's behalf
Ensuing discussion pertained to selection of candidates for President Ooten to vote at
an upcoming CSDA Region 6 election.
By a majority vote (3 -2), President Ooten was directed to vote on CMSD's behalf for Jo
MacKenzie and Cheryl Brothers.
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XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Director Scheafer reported a neighbor spoke to him regarding large item pickups; noting
that she put a mattress out for pickup but got fined by the City.
President Ooten indicated the item should be brought before the liaison committee.
Director Scheafer asked if the August Board meeting date could be changed.
Discussion followed regarding the possibility of setting the Board meeting date to
August 20, 2012.
Director Perry moved to consider the following item at this time, noting it was submitted
after publication of the agenda and the need for action at this time. Director Fitzpatrick
seconded the motion, which carried 5 -0.
Director Scheafer requested the opportunity to attend an upcoming CSDA seminar on
the Board's role in Human Resources and General Manager Evaluations.
Director Perry moved to allow Director Scheafer to attend the CSDA seminar. Director
Fitzpatrick seconded the motion, which carried 5 -0.
Director Fitzpatrick requested an update of meeting schedules including COC and other
local meetings.
XIX. MCI.
President Ootert, Ijourned the meeting at 8:28 p.m.
Secretary
President