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Minutes - Board - 2012-09-20 Item 03 ASP so/T,gRy (�� ce � isfii ' d 'JO 9a 4 v - \ ...cbRPpRAT ` COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING SEPTEMBER 20, 2012 I. CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on September 20, 2012 at 5:30 p.m. at 628 W. l 9tn 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; Colin Burns, District Counsel; Marc Davis, District Treasurer; Teresa Gonzalez, Accounting Manager; Noelani Middenway, Deputy District Clerk; Javier Ochiqui, Management Analyst OTHERS PRESENT: Dean Ruffridge, CR&R; Lawrence Jones, CR&R, Alcira Dominguez, Resident; Jim Mosher, Resident; Debbie Morris, HF&H V. CEREMONIAL MATTERS AND PRESENTATIONS None. VI. ANNOUNCEMENT OF LATE COMMUNICATIONS None. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 VII. PUBLIC COMMENTS Public comment was received from Jim Mosher, resident of Newport Beach, regarding the Directors' compensation and reimbursement of expenses reports and questioned if the Directors were in compliance with the government code. VIII. CONSENT CALENDAR 1. Operations Committee — August 21, The minutes of the August 21, 2012 2012 Operations Committee meeting were approved as presented. 2. Regular Board of Directors Meeting — This item was pulled for a separate vote. August 20, 2012 3. Occupancy Report and Payment to The Occupancy Report and payment to Costa Mesa Disposal — August 2012 Costa Mesa Disposal for August 2012 was approved as submitted. 4. Contract Payment to CR Transfer for The Contract Payment to CR Transfer for Recycling Services & Disposal for Recycling Services & Disposal for August August 2012 2012 was ratified. 5. Adoption of Warrant Resolution No. This item was pulled for a separate vote. CMSD 2013-3 Ratifying Payment for the Month of August 2012 in the amount of$1,007,907.63 6. Directors' Compensation and This item was pulled for a separate vote. Reimbursement of Expenses for the Month of August 2012 7. Investment Report as of August 31, This item was pulled for a separate vote. 2012 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 8. Resolution No. 2012-821 — Amending Resolution No. 2012-821 — Amending District Cafeteria's Plan to Comply District Cafeteria's Plan to Comply with the with the 2010 Health Care Act 2010 Health Care Act was adopted. 9. Budget Transfer for Flooring. Repair The budget transfer of $20,000.00 from the at District Corporate Yard Sewer Contingency fund to the Sewer Building Maintenance fund for Flooring Repair at the District Corporate Yard was approved. END OF CONSENT CALENDAR Director Scheafer moved for approval of the Consent Calendar except for items pulled for a separate vote. Director Ferryman seconded the motion. The motion carried 5-0. Regarding the minutes from the Regular Board meeting of August 20, 2012, District Treasurer Marc Davis noted that the roll call listed him as having attended the meeting. He requested that the record reflect that Ms. Jacque Rogers, Assistant to the District Treasurer, was present in his absence on said meeting date. Director Fitzpatrick noted a typographical error in the header of the minutes. Director Scheafer moved to approve the minutes of the Regular Board meeting of August 20, 2012 with the requested corrections. Director Fitzpatrick seconded the motion, which carried 5-0. Regarding the Adoption of Warrant Resolution No. CMSD 2012-3, Director Perry noted that the record should reflect him as having been absent for the meeting of August 20, 2012. Director Fitzpatrick moved to approve the adoption of Warrant Resolution No. 2013-3 with the requested corrections. Director Ferryman seconded the motion, which carried 5-0. Regarding the Directors' Compensation and Reimbursement of Expenses, Director Fitzpatrick discussed what was customary when securing accommodation for out of town conferences. Discussion followed regarding the issue of urging education partners to utilize sites that are less expensive in consideration of the budget. President Ooten requested that staff provide an explanation as to whether or not the District is in compliance with the law. • COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 Director Scheafer indicated that the Government Rate is set for the Federal government and does not apply to the State or Local government. The Board of Directors requested that staff report back as to what is the allowed rate when attending conferences. Discussion followed regarding the content of the expense reports being made available to the public and the possibility of discussing which conferences should be attended at an upcoming Operations Committee meeting. Director Fitzpatrick moved to approve the Directors' Compensation and Reimbursement of Expenses. Director Scheafer seconded the motion, which carried 5-0. Regarding the Investment Report as of August 31, 2012, Director Fitzpatrick questioned if said report was a monthly or quarterly report. District Treasurer Davis responded that the report in question is a monthly report. He indicated that in lieu of a quarterly meeting with the Investment Oversight Committee, a quarterly report is placed on the agenda under the Treasurer's Report section for discussion. Director Scheafer moved to approve the Investment Report of August 31, 2012. Director Fitzpatrick seconded the motion, which carried 5-0. IX. PUBLIC HEARING None. X. GENERAL MANAGER'S REPORTS 10. Transfer of OCSD's Fairview Trunk to CMSD General Manager Carroll provided a report on the proposal to transfer Orange County Sanitation District's (OCSD) Fairview Trunk to CMSD. He noted that a letter from OCSD had been received indicating that OCSD will accept complete ownership and liability for the lines that run under the freeways and that the remainder of the trunk would be acquired by CMSD. He requested that the Board direct the General Manager to authorize the District Engineer to begin reviewing CCTV of the Fairview Trunk and report back with an estimated cost to rehabilitate the trunk. Director Ferryman moved the requested action. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 Director Fitzpatrick queried as to how it was determined that the 405 freeway widening had no impact Discussion followed regarding the studies that were performed to determine the impact, various lines that are impacted, projected revenue estimates, and the timeline to assume the transfer. Director Fitzpatrick commented that he felt that there was no need for a sense of urgency regarding this project. He expressed concern that project development was conditional upon the acceptance of the line. President Ooten indicated that OCSD would like to transfer ownership of the smaller lines to the agencies that handle smaller sewers as soon as possible. He directed staff to perform its due diligence on the system and to be aware that the acceptance of the Fairview trunk will not affect the development. Discussion followed regarding the term 'conditional' that was used in the communication from OCSD. General Manager Carroll suggested that the District Engineer be authorized to begin reviewing the CCTV and that he will contact OCSD's management to clarify that approving the development is not conditional of CMSD taking over the Fairview Trunk. There was no further discussion regarding this item. Director Perry moved to direct the General Manager to authorize the District Engineer to begin reviewing CCTV of the Fairview Trunk and report back with an estimated cost to rehabilitate the trunk. Director Scheafer seconded the motion, which passed 5-0. 11. New Signage on CR&R Trucks Management Analyst Ochiqui provided background on the item and presented renderings of new signage to be placed on the CR&R trucks. Discussion followed regarding the proposed renderings, other examples found on other hauler trucks and in the marketplace. President Ooten stated that he would like to pull this item and refer it to the Branding Committee for further discussion. General Manager Carroll noted that, per the discussion held at the last meeting, the size of the CMSD signage was identified as the main concern. President Ooten indicated that staff has a clear understanding of what the Board is COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 President Ooten indicated that staff has a, clear understanding of what the Board is looking to achieve. He pulled the item from the agenda to be addressed by the Branding Committee before coming back to the full Board for approval. 12. Green Guide Brochure Management Analyst Ochiqui provided a report on a new 12-page online comprehensive "Green Guide" brochure consisting of information on all CMSD programs. President Ooten indicated that he was in favor of moving forward with the development of the Green Guide brochure. Discussion followed regarding the potential design of the brochure and website. There were no further questions or comments regarding this item. The report was accepted and filed. 13. Household Hazardous Waste Collection Event Management Analyst Ochiqui provided a report on the Household Hazardous Waste collection event to be held on November 17, 2012 at Orange Coast College from 10am to 2pm. Director Fitzpatrick expressed his gratitude to staff for working with OC Waste & Recycling and OCC to coordinate an event that is the first of its type to be held in Costa Mesa. Discussion followed regarding the methods of advertising being utilized to promote the event, the cost to host such an event, and the use of banners for promotions. Director Fitzpatrick suggested that the Board approve staff to use a budget of up to $5,000.00 for advertising expenses. Director Perry made a motion to allocate up to $5,000.00 from the fund balance. Director Scheafer seconded the motion, which carried 5-0. 14. City of Newport Beach — Correspondence Regarding Balboa Island Channel Sewage Spillage President Ooten provided a.report on a letter received from City of Newport Beach City Manager, Dave Kiff, thanking CMSD for its assistance during the Balboa Island Channel sewage spillage. Director Fitzpatrick asked if there were any lessons learned from the incident. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 General Manager Carroll indicated that mutual aid procedures work well and are beneficial. There were no further questions or comments regarding this item and the report was received and filed. 15. Resolution No. 2012-822 Director Perry moved to adopt Resolution No. 2012-822. Director Scheafer seconded the motion, which carried 5-0. OPERATIONS COMMITTEE 16. Tuesday, August 21, 2012, 9:30AM — (Vice President Ferryman and President Ooten) Director Ferryman provided a report on the diversion for the month of August, e-Civis grant services, and the OCC recycling center expansion update. District Engineer Hamers provided an update on various projects, including the Grade 5 repairs to begin on October 1. There were no further questions or comments regarding this item and the report was received and filed. 17. Tuesday, September 18,s 2012, 9:30AM — (Vice President Ferryman and Director Scheafer) Director Ferryman highlighted the results of a recent composting workshop, the forthcoming audit and performance evaluation of CR&R. President Ooten reported on the telephone book recycling programs at schools and the phasing in of other recycling programs. Director Ferryman noted the District receiving an Innovation award from CSDA for the use of the PICA technology as well as the District of Distinction award. He also reported on the back up pump stations and generators. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 ENGINEER'S REPORTS 18. Project Status Report There were no comments or questions regarding this item. Director Ferryman, moved to accept and file the report. Director Perry seconded the motion, which carried 5-0. 19. Emergency Work — Santa Ana Force Main Repair & 23rd Force Main Repair District Engineer Hamers provided a report on the emergency work to be performed at the Santa Ana Force Main and the 23rd Force Main. He discussed various methods to conduct the repairs and reviewed the estimates received from reputable contractors to execute the project. Director Ferryman questioned if District Engineer Hamer's professional opinion would suggest that the District take immediate action or to allow time to research other options. Discussion followed regarding lining options, fastest method of repair, and the necessity of taking action as soon as possible. General Manager Carroll commented that the estimated repair cost of $700,000.00 is a large amount. However, the results of the PICA data show that the wall thickness of the force mains are in critical condition and that a break would be inevitable. He suggested that the Board move forward as the risk was too high. Director Ferryman expressed favor in moving forward and making the repairs the fastest way possible as time is of the essence. Director Scheafer expressed favor in proceeding with the repairs without soliciting for other options or contractors. Director Fitzpatrick questioned if the formal bidding process could be suspended to seek alternate bids. He questioned the ability to get a timely competitive bid for dig and replace as well as the lining installation. Discussion followed regarding the timeline and process to obtain additional lining proposals and the decision to not go to bid as no one sources such services in a timely. manner. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 District Engineer Hamers noted that the Board would need to agree to a procedure to either mobilize the two companies who have submitted estimates to execute the work, or to seek a dig and replace proposal to be submitted in an additional couple of weeks. President Ooten recommended to proceed with the lining as soon as possible and evaluate the dig and replace method costs for different pipe sizes. Discussion ensued regarding the lining of other force mains within the region, comparison of alternatives for structural lining versus dig and replace, and any prior history of the comparisons to be used as justification to proceed without going out to bid. Director Fitzpatrick expressed opposition for this item as he felt he had not seen other alternatives for this project. General Manager Carroll noted that the due diligence will be conducted for the remaining force mains to be evaluated with the PICA technology and determine what other technology may be used at that time. He suggested that the Board proceed with District Engineer Hamer's proposal to repair the two force mains being discussed. Director Scheafer moved to approve the budget transfer of up to $700,000.00 from the Asset Management fund and direct staff to proceed reconstructing the Santa Ana and 23rd Street Force Mains. Director Ferryman seconded the motion, which carried 4-1, with Director Fitzpatrick opposed. District Engineer Hamers suggested that the Board direct the General Manager and • Project Manager to keep the asset management model. Director Fitzpatrick indicated that he would like to discuss what the plans are for use of the PICA technology at an upcoming Operations Committee meeting. TREASURER'S REPORT None ATTORNEY'S REPORTS 20. Ordinance No. 93 District Counsel Colin Burns provided details of Ordinance No. 93 which states that trash containers placed in an alley for collection must be removed by midnight on collection day and must be stored out of the public alley, completely on private property, and out of view from the public street. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 Discussion followed regarding the procedure to file a hardship, the support from the City for said ordinance, and enforcement of the ordinance. There were no further questions or comments regarding this item. Director Scheafer moved to adopt Ordinance No. 93. Director Perry seconded the motion, which carried 5-0. LOCAL MEETINGS A. Orange County Sanitation District (OCSD) Director Ferryman noted the upcoming OCSD meeting of Wednesday, September 26, 2012. B. Santa Ana River Flood Protection Agency (SARFPA) None C. Independent Special Districts of Orange County (ISDOC) Director Ferryman reported on the ISDOC meeting he attended, including details on ISDOC's upcoming election. D. California Special Districts Association (CSDA) None 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 Scheafer reported on the presentation by Colonel Mark Toy at the WACO meeting. Director Fitzpatrick reported on the quarterly meeting of SWANA SoCal and encouraged the Board to attend the meetings. He also reported on a MWDOC committee meeting he attended. He noted how they handled their proceedings with the full board being present and able to participate in discussions, yet only the Committee members being allowed to make motions to move items forward. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 20, 2012 District Counsel Burns indicated that he will look at the way other agencies conduct their meetings and report back. Director Fitzpatrick reported on his ride along with the District's Code Enforcement officer. He noted that a potential discussion item for an upcoming Operations Committee meeting would be to report on the proportions of cans to a household. He also indicated that he would like to discuss CMSD branded trash containers at an Operations Committee meeting. OLD BUSINESS None NEW BUSINESS NONE ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Ferryman noted his opposition of branding trash containers with the CMSD logo as CR&R owns the containers. Director Scheafer reported on a phone call he received regarding trash.containers. ADJOURNMENT President Ooten adjourned the meeting at 8:05PM Secrets / ^,,Presiders