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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
NOVEMBER 15, 2012
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
November 15, 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; 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
V. CEREMONIAL MATTERS AND PRESENTATIONS- None
VI. ANNOUNCEMENT OF LATE COMMUNICATIONS - None
VII. PUBLIC COMMENTS — There was one public comment concerning Item Nos. 6, 7
and 9.
General Manager Carroll responded to the public comment regarding Item No. 9
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and indicated that the disposition of District assets dealt with the SCADA system
monitors being resold to the original contractor as its services are no longer
required by the District.
VIII. CONSENT CALENDAR
1. Operations Committee Minutes of The minutes of the Operations Committee
October 16, 2012 Meeting of October 16, 2012, were
approved as presented.
2. Board of Directors Minutes of October The minutes of the Board of Directors
25, 2012 Meeting of October 25, 2012, were
approved as presented.
3. Occupancy Report and payment to The Occupancy Report and payment to
Costa Mesa Disposal — November Costa Mesa Disposal for November 2012,
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 October
October 2012 2012 was approved.
5. Adoption of Warrant Resolution No. Warrant Resolution No. CMSD 2013-5
CMSD 2013-5 Approving District approving District warrants for the Month of
Warrant Registers October 2012 in the amount of $465,713.71
was approved.
6. Directors' Compensation and This item was pulled from the Consent
Reimbursement, of Expenses for the Calendar for separate vote.
Month of October 2012
7. Annual Report of Expenses — Fiscal This item was pulled from the Consent
Year 2011-12 Calendar for separate vote.
8. Investment Report as of October 31, The Investment Report as of October 31,
2012 2012 was approved.
9. Resolution No. 2012-824 — Resolution No. 2012-824 authorizing the
Authorizing the Disposition of District disposition of District assets was approved.
Assets (SCADA Units)
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END OF CONSENT CALENDAR
Director Perry moved for approval of the Consent Calendar except for items pulled for a
separate vote (Item Nos. 6 and 7). Director Ferryman seconded the motion, which
carried 5-0.
Regarding Item No. 6, President Ooten responded to the public comment and confirmed
that he did attend the CSDA Annual Conference in San Diego and presented a report at
the Board meeting of October 25, 2012 on.
Regarding Item No. 7, Teresa Gonzalez, Accounting Manager, responded to the public
comment discussing the District's cell phone allowance policy.
Director Scheafer moved for approval .of Item Nos. 6 and 7. Director Ferryman
seconded the motion, which carried 5-0.
IX. PUBLIC HEARINGS - None
X. GENERAL MANAGER/DISTRICT CLERK REPORTS
10. Performance Audit of CR&R
General Manager Scott Carroll presented background and noted that the purpose of the
audit is to verify compliance with the terms of the contract between CMSD and CR&R.
He noted that the District has the right to audit any facet of CR&R's performance that
includes access rights to CR&R's facility and equipment, books and records relating to
the business operations and the right to demand an independent certified audit at
CR&R's cost.
Discussion followed regarding how a rate is determined to be favorable. It was noted
that rates are determined based on the services that are provided.
Ensuing discussion pertained to the cost system for collection per household versus
recycling and diversion, the ability to compare the cost of a two can system to a three
can system, and how to determine if the rates are favorable. It was questioned as to
how rates are determined to be reasonable and how a midpoint should be identified.
District Counsel, Alan Burns, responded that the term `reasonable' was not defined in
the contract and that a judgment as to what can be considered to be `reasonable' can
be made within the District.
Discussion followed regarding industry standards of what is considered to be
'reasonable' and the responsibilities of the Consultant to determine whether or not the
contractor is in compliance with the contract.
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Director Fitzpatrick expressed interest in discussing GPS technology to be used on the
hauler trucks.
District Counsel Burns identified areas of the RFP to be edited including the request for
additional details on types of audits previously performed by the consultant to ensure
that it is comparable to the nature of the CR&R audit. He addressed the necessity for
the addition of a confidentiality clause and Errors and Omissions insurance coverage.
There were no additional questions or comments.
Director Ferryman moved to authorize staff to proceed soliciting an RFP for auditing
services of CR&R Environmental Services. Director Scheafer seconded the motion,
which carried 5-0.
11. Davis Magnet School Source Reduction Program
Mr. Carroll presented details of the report and addressed the extraordinary sustainability
and recycling efforts made by Davis Magnet School. He highlighted different areas of
their program including their recycling center, composting efforts, and Eco education.
He attributed the success of the program to the involvement of the parents, staff, and
partnerships with other organizations.
Director Perry suggested that the school be offered a tour of the Materials Recycling
Facility.
Director Scheafer indicated that a letter of recognition from the District to the School
Board would be appropriate to highlight Davis Magnet Schools efforts.
Director Fitzpatrick discussed formulating a list of best practices and resources to be
circulated to other schools.
There were no additional questions or comments.
Members of the Board concurred to receive and file the report.
12. CIP Elements of the Asset Management Program
Mr. Carroll presented the report and recommendations as listed in the agenda report.
He noted methods by which maintenance, capital outlay, capital improvement and asset
management projects are funded.
There were no questions or comments.
Members of the Board concurred to receive and file the report.
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13. Adopt Ordinance No. 94 — Amending the District's Operations Code
Chapter 10.01
Mr. Carroll presented the report and noted that the amendment of Operations Code
Section 10.01 eliminated the need for a formal Safety/Loss Control Committee
There were no questions or comments.
Director Perry moved to adopt Ordinance No. 94 amending Chapter 10.01. Director
Scheafer seconded the motion, which carried 5-0.
14. Assessing Force Mains
Mr. Carroll presented the report and recommendations as listed in the agenda report.
He indicated that the assessment costs and timeline were included in the report.
Director Fitzpatrick congratulated General Manager Carroll and District Engineer
Hamers on a well compiled report.
Director Ferryman moved to approve the proposed plan for assessing force mains.
Director Perry seconded the motion, which carried 5-0.
15. Election Results
Mr. Carroll presented the report of the 2012 election results and congratulated Directors
Ferryman and Perry on their re-election. He noted that that Oath of Office would be
administered to the re-elected officials on Friday, December 7, 2012.
Discussion followed regarding the date that official results will be finalized.
There were no additional questions or comments.
Members of the Board concurred to receive and file the report.
Xl. OPERATIONS COMMITTEE
16. Tuesday, November 13, 2012, 9:30 a.m. — (Vice President Ferryman and
Director Fitzpatrick)
Director Ferryman reported on the Operations Committee meeting of November 13,
2012. He addressed a recent scavenging citation, commodity revenue with CR&R,
recycling analysis, enforcement of trash cans stored in alleys, spill statistics, and
enforcing of force mains.
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Director Scheafer commented that a circulated flyer addressing the enforcement of
trash cans stored in alleys would be an effective method of notification to the residents.
Members of the Board concurred to receive and file the report.
XII. ENGINEER'S REPORTS
17. Project Status Report
District Hamers indicated that the Santa Ana and 23rd force mains had been lined
successfully and that all other projects are moving forward as scheduled.
There were no questions or comments.
Members of the Board concurred to receive and file the report.
18. Sewer Cleaning Program 2012-13
President Ooten noted that this item had been discussed at the Operations Committee
meeting of November 13, 2012.
There were no questions or comments.
Director Scheafer moved to approve 1.) Addendum No. 2 for the fiscal year 2012-13
with an estimated cost of $112,460 and approve a 2-year extension to the National
Plant Services contract for fiscal years 2013-14 and 2014-15, and 2.) Authorize the
General Manager to use a portion of the saving to fund the additional consultant
services to revise the District's cleaning program from its current 3-year cleaning cycle
to a more efficient 2-year cleaning cycle and to prepare work orders for both CMSD and
NPS for the cleaning work. Director Ferryman seconded the motion, which carried 5-0.
XIII. TREASURER'S REPORTS- None
XIV. ATTORNEY'S REPORTS
19. Encroachment Agreement at 2331 Tustin Avenue
District Counsel Burns provided background on the request for an Encroachment
Agreement at 2331 Tustin Avenue.
Discussion followed regarding the process of obtaining signatures and recordation of
the Encroachment Agreement.
There were no additional questions or comments.
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Director Perry moved to approve the Encroachment Agreement. Director Scheafer
seconded the motion, which carried 5-0.
20. Adopt Ordinance No. 95 — Amending Operations Code with Regard to
Public Meeting Rules
District Counsel presented the details as listed in the staff report and Ordinance No. 95
addressing public meeting rules.
There were no questions or comments.
Director Scheafer moved to adopt Ordinance No. 95. Director Perry seconded the
motion, which carried 5-0.
XV. LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Vice President Ferryman)
Director Ferryman indicated that the OCSD meeting was to be held later in the week.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Director Perry)
Director Perry provided an update on the recent SARFPA meeting and addressed the
Prado Dam.
Director Ferryman reported on a tour he took of the Prado Dam and commented on the
amount of work that has been done. He also noted that the SARFPA meeting was
adjourned in memory of Mr. Frank Fry.
C. Independent Special Districts of Orange County (ISDOC) — (President
Ooten)
President Ooten provided an update on his recent attendance of the ISDOC meeting
and noted that it was his last meeting as an official Board member. He indicated that the
ISDOC Committee encourages all Special Districts to offer the Grand Jury a tour.
D. California Special Districts Association (CSDA)
Director Scheafer reported on a CSDA workshop he attended that addressed issues
concerning the Brown Act.
E. California Association of Sanitation Agencies (CASA)
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F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
Director Perry reported on a recent WACO meeting he attended.
Director Fitzpatrick reported on his recent attendance of the Newport City Council
meeting. He also reported on his attendance of the South Coast Metro Alliance
workshop and encouraged the Board to attend future meetings.
District Counsel Burns recommended that the South Coast Metro Alliance meetings be
added to the Ordinance listing approved meetings for reimbursement.
XVI. OLD BUSINESS- None
XVII. NEW BUSINESS
General Manager Carroll informed the Board that the District office will be closed at
noon on December 24, 2012. He announced that this was Accounting Manager, Teresa
Gonzalez's last day with CMSD as she has accepted a position with the City of Fountain
Valley. He thanked her for her years of service and wished her well in her new position.
Director Scheafer announced that he had been re-appointed to the CSDA Board
Committee.
XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
XIX. ADJOURNMENT
President Ooten adjourned the meeting at 6:49 p.m. to the next regular meeting of the
Costa Mesa Sanitary District Board of Directors on December 20, 2012 at 5:30 p.m. in
the District's Board Room, 628 W. 19th Street.
1r.•
Secretary