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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 25, 2012
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
October 25, 2012 at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
11. 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;
Noelani Middenway, Deputy District Clerk;
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; Debbie Morris, HF&F
V. CEREMONIAL MATTERS AND PRESENTATIONS- None
VI. ANNOUNCEMENT OF LATE COMMUNICATIONS - None
VII. PUBLIC COMMENTS - None
VIII. CONSENT CALENDAR
COSTA MESA SANITARY DISTRICT PAGE 2
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REPORTS
A. MINUTE APPROVAL
1. Board of Directors Minutes of Special The minutes of the September 11, 2012,
Meeting dated September 11, 2012 Board of Directors Special Meeting were
approved as presented.
2. Operations Committee Minutes of The minutes of the Operations Committee
September 18, 2012 Meeting of September 18, 2012, were
approved as presented.
3. Board of Directors Minutes of The minutes of the Board of Directors
September 20,2012 Meeting of September 20, 2012, were
approved as presented.
•
B. FINANCIAL REPORTS
4. Occupancy Report and payment to The Occupancy Report and payment to
Costa Mesa Disposal — October 2012 Costa Mesa Disposal for October 2012, was
approved as submitted.
5. Contract Payment to CR Transfer for The Contract Payment to CR Transfer for
Recycling Services & Disposal for Recycling Services & Disposal for
September 2012 September 2012 was approved.
6. Adoption of Warrant Resolution No. Warrant Resolution No. CMSD 2013-4
CMSD 2013-4 Approving District approving District warrants for the Month of
Warrant Registers September 2012 in the amount of
$622,419.88 was approved.
7. Directors' Compensation and Directors' Compensation and
Reimbursement of Expenses for the Reimbursement of Expenses for the Month
Month of September 2012 of September 2012, as listed in the Agenda
Report dated October 25, 2012, were
approved and ratified.
8. Plan to Reduce SSOs The plan to reduce SSOs was approved.
9. Quarterly Budget Reports for Quarterly Budget Reports for September 30,
September 30, 2012 2012 were approved.
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10.Strategic Plan for Fiscal Years 2010- This item was pulled from the Consent
15, Quarter Progress Report: 2012- Calendar for separate vote.
13 1st Quarter
11.General Manager Declaring a Public Received and filed.
Emergency to Repair Hatched Doors
at Harbor and Sea Bluff Pump
Stations
12.Budget Transfer per September Received and filed.
Quarter Budget Review
13.Budget Transfer for eCivis . User Received and filed.
License
END OF CONSENT CALENDAR
Vice President Ferryman moved for approval of the Consent Calendar except for items
pulled for a separate vote (Item No. 10). Director Perry seconded the motion. The
motion carried 5-0.
• Regarding Item No. 10, Director Fitzpatrick requested that staff generate a calendar of
the Strategic Plan budget decisions discussions on sewer rates and asset management.
He stated that it would be helpful to know when the various discussions will occur.
Director Fitzpatrick moved approval of Item No. 10. Director Scheafer seconded the
motion. The motion carried 5-0.
IX. ,PUBLIC HEARINGS- None
X. GENERAL MANAGER/DISTRICT CLERK REPORTS
14. Knowledge Transfer Consulting Services
General Manager Scott Carroll presented background and noted that a succession plan
works well for large organizations but not for small organizations as the CMSD. He
reported speaking with Mejorando Group representatives who suggested a knowledge
transfer. He distinguished between explicit and tacit plans and explained each and
presented recommendations to waive the bid procedures, enter into an agreement with
Mejorando Group to perform a Knowledge Transfer Program and appropriate $17,000
for the services.
Discussion followed regarding documentation of and chronicling the program for
subsequent and future use, ensuring documentation for pertinent positions and the
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•
value of the tool. It was noted that succession plans would be beneficial for key
individuals in the organization.
Ensuing discussion pertained to the bidding process and the ability of the Board to
waive it at its discretion and justification for the present request to waive the bidding
process.
Mr. Carroll stated that he believed that the appropriation requested is a reasonable one.
Discussion followed regarding other possible options, the possibility of contacting similar
service providers for quotes and obtaining a comprehensive list of applicable
experience from the suggested provider.
President Ooten noted that there is no hurry to complete the process and stated the he
would like to see other providers contacted to obtain input and quotes.
In response to Director Fitzpatrick's inquiry, Mr. Carroll stated that in doing his research,
the recommended consultant came up quite a bit.
Mr. Carroll will seek additional consultants and bring the item back to the Board for
consideration.
15. CMSD Branding
Mr. Carroll presented details of the report, including previous direction from the Board
on the matter. He addressed actions by the Branding Committee, review by the
Operations Committee and presented details of the recommendations as listed in the
agenda report.
Discussion followed regarding actions necessary to get the message out regarding all of
the services provided by CMSD to the public and the need for professional help towards
that goal. Brief discussion followed regarding truck signage opportunities, other options
available to communicate the organization's programs and the possibility of changing
the logo.
Director Scheafer moved to accept the report and recommendations made by the
Branding Committee. Director Fitzpatrick seconded the motion. The motion carried 3-
2, with Directors Ferryman and Perry, opposed.
16. Performance Audit of CR&R
Mr. Carroll presented the report and recommendations as listed in the agenda report.
He noted that the audit would be to verify compliance with the terms of the contract with
CR&R and was reviewed by the Operations Committee. Mr. Carroll reported that staff
is ready to issue the RFP and that costs for these services will be reimbursed by CR&R.
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Discussion followed regarding past procedures in performing the audit. Mr. Carroll
noted that the recommendation will provide for a more detailed audit.
Director Fitzpatrick commented on calculation of the rates and felt that the proposed
does not take the issue and all of the contract terms into account. He indicated that he
would like the opportunity to review the RFP.
Mr. Carroll indicated that he can bring the item back at the Board's meeting in
November, with the RFP attached.
Members of the Board concurred to direct staff to bring the item back at the Board's
meeting in November, with the RFP attached.
17. Capital Improvement Projects Carryover Request
Account Manager Teresa Gonzalez presented details of the report including
recommendations. She addressed the amount being requested as well as the
corresponding projects where the funds will be used.
Discussion followed regarding the Bristol Street pump station and the Irvine pump
station force main and Canyon force main rehab.
Ms. Gonzalez noted that the projects had been completed last fiscal year but additional
expenses came through in this fiscal year. She referenced the Project Status report
which lists the additional expenses.
Vice President Ferryman moved to approve the CIP carryover requested as listed in the
agenda report. Director Perry seconded the motion. The motion carried 5-0.
18. Reappropriation of Funds from FY 2011-12 to FY 2012-13
Account Manager Teresa Gonzalez noted that this item is similar to the previous item
but deals with operations and maintenance projects that have not been completed.
Director Scheafer moved to approve the budget adjustment as stated in the agenda
report. Director Perry seconded the motion. The motion carried 5-0.
19. Employee Pay for.Performance Program
Mr. Carroll addressed previous direction and actions by the Board on this item, provided
background and presented details of the report. He addressed changes made to the
program including adding performance goals to employee evaluations to encourage
employees to perform at the highest level.
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Discussion followed regarding guaranteed CPI increases, evaluation of various
scenarios and providing step increases.
Members of the Board concurred to receive and file the report.
20. Project#197 — System Wide Sewer Reconstruction Phase Ill -
Engineering and Design Proposal
Mr. Carroll presented the report noting that Phase I is complete and that Phase II will
begin November 5, 2012. He addressed the engineering and design proposal and
stated recommendations. Mr. Carroll reported that the contract is being awarded to
RBH and Associates because of its knowledge and experience in preparing designs for
Phases I and II and its ability to reduce costs. The services will be added to RBH and
Associates' existing contract with the District.
Members of the Board concurred to receive and file the report.
21. Refund of Sanitary Assessment Overpayment— Moller
Administrative Service Manager Anna Sanchez presented the report noting the refund is
a result of overcharges to the Moller residence, which is connected to a septic tank and
was improperly billed for sewer services. Although the property is now connected to the
sewer system, the overcharges cover previous years where they were not on the
system. Ms. Sanchez presented recommendations.
Discussion followed regarding similar requests for overpayment and the distinguishing
criteria for the length of time for assessment. Ensuing discussion pertained to charges
for connecting to the CMSD system and whether the septic tank will be removed.
Director Scheafer moved to approve a refund in the amount of$859.74 for the sewer
assessment from 1998 through current in accordance with State law, as stated in the
agenda report. Director Perry seconded the motion. The motion carried 5-0.
22. Resolution No. 2012-823 Ordering Publication of Ordinance No. 93
Mr. Carroll presented details of the report noting that the ordinance was published in the
newspaper.
Director Scheafer moved to adopt Resolution No. 2012-823 ordering publication of
Ordinance No. 93. Director Perry seconded the motion. The motion carried 5-0.
23. MWDOC Hybrid Committee
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23. MWDOC Hybrid Committee
President Ooten noted ongoing discussions on the item.
Mr. Carroll presented details of the report in order to allow all Board members to speak
during committee meetings. The item would be posted as a Special Board meeting.
District Counsel Alan Burns indicated that he is opposed to the item, noted that the
Board has the ability to hold special meetings and that through a hybrid committee,
Members would be depriving themselves of the ability to vote. He recommended
holding special Board meetings for discussions and actions or holding a study session
for discussion.
President Ooten felt that the Board needs a vehicle where all Directors could comment
as well as vote.
Vice President Ferryman noted that committees provide recommendations to the Board
where Members could fully discuss issues and take action.
Director Fitzpatrick stated his rationale for bringing the item forward.
Discussion followed regarding the pros and cons of the various alternatives and the
benefits of holding study sessions.
Director Scheafer indicated that he would like study sessions to focus on specific issues
and stressed the importance of all Members being able to discuss issues before coming
formally, before the Board.
Vice President Ferryman agreed with Director Scheafer's comments.
Director Perry moved to maintain the status quo at this time. Vice President Ferryman
seconded the motion. The motion carried 5-0.
24. Telephone Book Recycling Program
Management Analyst Javier Ochiqui presented details of the report including
background and findings. He noted decreased participation in the program since 2008
and review and recommendations by the Operations Committee. He addressed the
2013 budget for the program and award amounts.
Discussion followed regarding letters distributed to schools, the need to send updated
information if the policy changes, program start date and setting a requirement fora
minimum amount of books.
Ensuing discussion pertained to setting criteria for qualifying for awards and
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Director. Fitzpatrick commented on the possibility of obtaining a status report on the
industry from Catalog Choice.
Discussion followed regarding decreases in the use of print phone books and trends
towards on line information. The Board directed staff to consider awarding funds to
schools for their behavior towards the program. If schools demonstrated good faith
effort in promoting the programs (i.e. emails, posters, assigning key personnel, etc.)
then they would be eligible to receive the minimum amount.
XI. OPERATIONS COMMITTEE
25. Tuesday, October 16, 2012, 9:30 a.m. - (Vice President Ferryman and
Director Perry)
Vice President Ferryman presented a summary of items considered at the October 16,
2012 Operations Committee meeting. He addressed the various reports, upcoming
events, and a composting survey and referenced an article from the "Los Angeles
Times" regarding recycling fraud.
Discussion followed regarding changes needed within the industry regarding out-of-
state redemptions of recyclable materials.
Vice President Ferryman addressed the Asset Management program and the date of
the next regular meeting of the Operations Committee meeting.
Discussion followed regarding an article indicating that most cities will be going to a
single-can system in the future, commodity revenue and continuing discussions
regarding the value of recyclables and resolving the issue with the contracted hauler.
President Ooten felt that the latter would be a good study-session topic.
Discussion followed regarding the percentage paid by CMSD for recyclables and the
50% recycling requirement by the State.
XII. ENGINEER'S REPORTS
26. Project Status Report
Mr. Carroll noted no oral reports at this time.
XIII. TREASURER'S REPORTS
27. Investment Report as of September 30, 2012
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District Treasurer Marc Davis presented details of the Investment Report as of
September 30, 2012. He addressed security replacements, benchmarks and portfolio
earnings.
Discussion followed regarding five-year treasury notes and the election's bearing on the
organization's return on investment.
XIV. ATTORNEY'S REPORTS - None
XV. LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Vice President Ferryman)
Vice President Ferryman presented an update on a recent meeting of the Orange
County Sanitation District. He addressed the ocean-outflow repair completion, an
upcoming leadership development program and a vendor outreach event.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Director Perry)
Director Perry provided an update of a recent SARFPA meeting. He addressed the
surrey line, the railroad bridge below the dam and a Westminster watershed study.
Brief discussion followed regarding the status of litigation.
C. Independent Special Districts of Orange County (ISDOC) — (President
Ooten)
D. California Special Districts Association (CSDA)
President Ooten provided an update on the recent CSDA conference and addressed
safety classes. He reported that CMSD received three awards and presented details of
each.
He reported attending the Chapter meeting and provided a brief update.
It was noted that liability issues are of concern.
Director Scheafer commented positively on a webinar in which he participated and will
present a report next month.
E. California Association of Sanitation Agencies (CASA)
F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
Director Fitzpatrick reported attending a SWANA SOCAL meeting commented positively
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on the event. He also attended a tour of the Newport Beach transfer station as well as
a recent Newport Beach City Council meeting regarding median landscaping.
XVI. OLD BUSINESS- None
XVII. NEW BUSINESS
Mr. Carroll commented on a Liaison Committee with the City of Newport Beach and
Mesa Consolidated. He reported that the Newport Beach City Manager and Mayor are
interested in implementing a Liaison Committee. He presented possible dates for
meetings and requested direction on who the Board would like to represent CMSD as
well as an alternate. The item arose after publication of the agenda and Mr. Carroll
indicated the need to take action at this time.
Vice President Ferryman moved to declare that the item arose after publication of the
agenda and that there is a need to take action on this item at this time. Director
Scheafer seconded the motion. The motion carried 5-0.
Discussion followed.regarding keeping possible dates for meeting, open.
Discussion followed regarding assigning Director Scheafer as the rotating Board
member representing CMSD on the Liaison Committee and Director Fitzpatrick as the
alternate.
Director Perry moved to assign Director Scheafer as the rotating Board member
representing CMSD on the Liaison Committee and Director Fitzpatrick as the alternate.
Director Scheafer seconded the motion. The motion carried 5-0.
XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Ooten addressed downspouts and stressed the importance of minimizing
them. He requested that staff return with a report and recommendations on the use of
downspouts.
Director Perry indicated that he is scheduled for jury duty and was not sure that he will
be able to attend the Board of Directors meeting of November 15, 2012.
Director Fitzpatrick requested items to promote the Household Hazardous Waste
collection event and addressed the elements of the trash contract including pick-up at
households and recycling and diversion. He noted that Mesa Water recently voted to
censure a Board member and requested comments from the General Manager.
District Counsel Burns reported that he will provide an update to the Board at a future
meeting regarding applicable policies.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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XIX. ADJOURNMENT
President Ooten adjourned the meeting at 6:51 p.m. to the next regular meeting of the
Costa Mesa Sanitary District Board of Directors on November 15,2012 at 5:30 p.m. in
the District's Board Room, 628 W. 19th Street.
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