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04 - Minutes Board of Directors 2013-01-24 C OSTA M ESA S ANITARY D ISTRICT M INUTES OF B OARD OF D IRECTORS R EGULAR M EETING J ANUARY 24, 2013 ______________________________________________________________________ I. C ALL TO O RDE R The Board of Directors of the Costa Mesa Sanitary District met in reg ular session on January 24, 2013 at 5 :3 0 p.m. at 628 W. 19 th Street, Costa Mesa. II. P LEDGE OF A LLEGIANCE President Ferryman led the Pledge of Allegiance. III. I NVOCATION President Ferryman led the Invocation. IV. R OLL C ALL D IRECTORS P RESENT : James Ferr yman, Robert Ooten , Art Perry, Mike Scheafer D IRECTORS A BSENT : None S TAFF P RESENT : Scott Carroll, General Manager; Anna Sanchez, Administrative Service Manager; Noelani Middenway, Deputy District Clerk; Robin B. Hamers, District Engineer; Ala n B urns, District Counsel; Marc Davis , District Treasurer; Javier Ochiqui, Management Analyst O THERS P RESENT : Dean Ruffridge, CR&R; Lawrence Jones, CR&R; Jessica Harris, Costa Mesa Resident; Mark Harris, Costa Mesa Resident; Jim Mosher, Newport Beach Resident V. C EREMONIAL M ATTERS AND P RESENTATIONS – N ONE VI. A NNOUNCEMENT OF L ATE C OMMUNICATIONS General Manager Carroll provided an article that was submitted by Jim Fitzpatrick to the Daily Pilot and the Board to be entered into the meeting record. C OSTA M ESA S ANITARY D ISTRICT P AGE 2 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ Direc tors Scheafer and Ooten made comments relative to the article that was submitted. VII. P UBLIC C OMMENTS – There two comments from members of the public. VIII. C ONSENT C ALENDAR 1. Operations Committee Minutes of December 11 , 2012 The minutes of the Operations Committee Meeting of December 11 , 2012, were approved as presented. 2. Board of Directors Special Meeting Minutes of December 20 , 2012 The minutes of the Board of Directors Special Meeting of December 20 , 2012 , were approved as presented. 3. Board of Directors Meeting Minutes of December 20 , 2012 4. Occupancy Report and payment to Costa Mesa Disposal – December 2012 The minutes of the Board of Directors Special Meeting of December 20 , 2012, were approved as presented. The Occupancy Report and payment to Costa Mesa Disposal for December 2012, was approved as submitted. 5. Contract Payment to CR Transfer for Recycling Services & Disposal for December 2012 The Contract Payment to CR Transfer for Recycling Services & Disposal for December 2012 was approved . 6. Adoption of Warrant Resolution No. CMSD 201 3 -06 Approving District Warrant Registers This item was pulled from the Consent Calendar for separate vote . 7. Directors' Compensation and Reimbursement of Expenses for the Month of December 2012 Th e Directors' C ompensation and Reimbursement of Expenses for the Month of December 2012 was approved as presented. 8. Adoption of Resolution No. 2013 -827 – Update to Records Retention Schedule This item was pulled from the agenda and tabled to the next regular Board meeti ng of February 27, 2013. E ND OF C ONSENT C ALENDAR Director Ooten moved for approval of the Consent Calendar except for the items pulled for a separate vote (Item No s . 6 and 8 ). Director Perry seconded the motion , which carried 3 -0. C OSTA M ESA S ANITARY D ISTRICT P AGE 3 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ Regarding Item No. 6 , General Manager Carroll indicated that he would work on listing the vendors by name in the warrant report. Regarding Item No. 8, General Manager Carroll noted that this item is being pulled from the agenda and that District Counsel will be working with the Deputy District Clerk on preparing a revised resolution and records retention program. Director Perry motioned to approve items 6 and 8. Director Ooten seconded the motion, which carried 3 -0. IX. P UBLIC H EARING S – N ONE President Ferryman reques ted to begin discussions with Item 17 . X. O PERATIONS C OMMITTEE 17. Tuesday, January 15, 2013, 9:30 a.m. - (Vice President Scheafer and Director Perry) Recommendation: That the Board of Directors accepts and files report. General Manager Carroll provide d a report on the items discussed at the Operations Committee meeting of January 1 5 , 201 3 , including the increase in diversion to 57 percent, the reported scavenging activity for the month, the receipt of three bids from consultants to conduct the CR&R aud it, and the presentation at the Senior Center for the Household Hazardous Waste program. Director Perry commented on the pilot program for citations of trash cans left in the alleys. Discussion followed regarding the current process in place for notici ng residents of the requirements to keep the trash cans out of the alleys. There were no further questions or comments and the report was accepted. XI. E NGINEER 'S R EPORTS 18. Project Status Report Recommendation: That the Board of Directors receive an d file the report. Mr. Hamers reported that all projects appeared to be moving along well. There were no questions or comments and the report was received and filed. C OSTA M ESA S ANITARY D ISTRICT P AGE 4 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ Director Scheafer entered the meeting at 5:55 p.m. 19. Elden Pumping Station Dow nspout on Incoming Gravity Line Recommendation: That the Board of Directors directs the General Manager to include replacement of the section of 37 -year piping and valves at the Elden Pumping Station in the District’s force main rehabilitation program and to install the second downspout when the piping and valves are replaced. Mr. Hamers provided information on the challenges that prevented the installation of the second downspout at the Elden Pumping station. He informed the Board that a plan is currently being developed to be able to achieve the downspout installation. Discussion followed regarding a meeting with executive staff at south coast plaza to institute measures with the restaurants in the area that comply with the District's Operations Code. There were no additional questions or comments . Director Perry motioned to direct the General Manager to include replacement of the section of 37 -year piping and valves at the Elden Pumping Station in the District’s force main rehabilitation program and t o install the second downspout when the piping and valves are replaced. Director Scheafer seconded the motion, which carried 4 -0. XII. G ENERAL M ANAGER /D ISTRICT C LERK R EPORTS 9. Set a Public Hearing Date for Wastewater Rate Adjustment Recommendation: That the B oard of Directors sets a public hearing date for April 18, 2013 at 5:30 p.m. General Manager Carroll provided background on the item and recommended that the Board set a public hearing date for April 18, 2013. He indicated that if the Board selected the recommended meeting date, that staff will mail out public hearing notices during the week of February 4, 2013, and host a workshop on March 14, 2013 at the N eighborhood C ommunity C enter where HF&H Consultants, LLC will present their methodology and respon d to any questions. Discussion followed regarding the timeline of mailing the public hearing notices. General Manager Carroll indicated that the notices would be mailed in February to ensure that the 45 day noticing requirement is met. Discussion fol lowed regarding the date and time proposed for the public hearing. Mr. Carroll noted that the public hearing would be set for April 18, 2013 at 5:30 p.m. C OSTA M ESA S ANITARY D ISTRICT P AGE 5 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ Mr. Hamers indicated that he would be unable to attend the meeting on April 18 due to a conflict in schedule. He noted that the new rate stu dy provides exceptional detail and that the consultant would be capable of answering any questions during the public hearing . There were no additional questions or comments. Director Perry motioned to set a publi c hearing date for Thursday, April 18, 2013 at 5:30 p.m. Director Scheafer seconded the motion, which carried 4 -0. 10. Reschedule April 25, 2013 Board of Directors Regular Meeting – Oral Report Recommendation: That the Board of Directors reschedules the April 25 Board of Directors regular meeting to April 18, 2013. Mr. Carroll indicated that Director Scheafer would be out of town at the time of the currently scheduled meeting of April 25, 2013 and recommended that the meeting date be changed to April 18 , 2013. There were no questions or comments. Director Perry motioned to change the meeting date to April 18, 2013 at 5:30 p.m. Director Ooten seconded the motion, which carried 4 -0. 11. Adopt Ordinance No. 96 – Amending Section 3.01.030 of the Operations Code Recommendation: That the Board of Directors adopts Ordinance No. 96 amending the list of meetings the Board is eligible for per diem service. General Manager Carroll provided background on the request to amend section 3.01.030 of the Operations Co de to include additional meetings to be eligible for per diem. Discussion followed regarding numbers 28 and 29 of section 3.01.030 in the Operations Code. District Counsel noted that the intent of number 28 is to allow a per diem of service when a Dire ctor attends a meeting and the District is a named party or the subject of the meeting . He further explained item 29 requires the Director to identify how the subject matter relates to and affects the District. There was one public comment received on th is item regarding a typographical error in the code section number and a question regarding the Directors compensation when representing the District as a Board member of the Orange County Sanitation District. C OSTA M ESA S ANITARY D ISTRICT P AGE 6 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ Discussion followed and it was clarified that the Board member representing the District on the OCSD Board is paid a stipend from OCSD and does not receive per diem from the District for attending the meeting . It was also noted that if the other Directors were attendees of the meeting then they would receive payment for per diem service from the District. There were no additional questions or comments. Director Perry motioned to approve Ordinance No. 96 with the correction of the typographical error. Director Ooten seconded the motion, which carri ed 4 -0. 12. Mid -Year Budget Report Recommendation: That the Board of Directors receive and file the report. Gen eral Manager Carroll presented the quarterly mid -year budget report. He i ndicated that there was a projected surplus in the solid waste fund due to the $80,000 appropriation to fund the D oor to D oor Household Hazardous W aste collection program. He added that there is a projected deficit in the liquid waste fund primarily due to the Sewer Lateral Assistance P rogram (SLAP) that used more than half of the $200,000 budgeted amount within the first six months. He provided options of stopping SLAP reimbursements or the appropriation of additional funds once the $200,000 budget has bee n reached. Director Ooten suggested that the Operations Committee rec eive a quarterly report on the Sewer L ateral Assistance P rogram. There were no additional questions or comments. Members of the Board concurred to receive and file the report. 1 3 . Establishing a Source Reduction (aka Recycling) Committee Recommendation: That the Board of Directors considers establishing a Source Reduction Committee. General Manager Carroll provided information on the Board’s request to consider establishing a So urce Reduction Committee in addition to the existing Operations Committee . Director Scheafer requested that additional workshops and study se ssions between meetings instead of creating an additional committee. Members of the Board concurred to remain st atus quo and maintain the Operations Committee. C OSTA M ESA S ANITARY D ISTRICT P AGE 7 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ 14 . School Telephone Book Recycling Program for 2012 Recommendation: That the Board of Directors receive and file the report. Mr. Ochiqui provided a final report on the school telephone book recycling pro gram. He noted Estancia High School and Kline School would receive the grand prize of $400 and that Kline School would receive an additional $500 for collecting between 10 -20 pounds per student. He further added that there has been a significant decrease i n the number of telephone books collected over the past four years. Discussion followed regarding other recycling program opportunities that would be able to either incorporate or replace the telephone book recycling program. Director Ooten suggested t hat CR&R create a case study of successful and unsuccessful recycling programs. Director Scheafer requested that a letter be sent to the Principal s of the low participating school s and request suggestions on what would encourage greater participation. Mr. Carroll indicated that the schools would qualify for a $300 award if the schools could prove that a good faith effort was made to advertise the program and encourage participation. Director Scheafer requested the schedule for the award presentation s . There were no additional questions or comments. Director Scheafer moved to approve the award in the amount of $7,000. Director Ooten seconded the motion, which carried 4 -0. 1 5 . California Association of Sanitation Agencies (CASA) Dues Recommendat ion: That the Board of Directors forego renewing CASA membership in 2013. Mr. Carroll provided information on the programs offered through CASA for the membership rate of $12,000 and compared it to the educational opportunities available through CSDA with the membership rate of $5,000. He recommended that the Board not renew its membership with CASA and continue to attend the CASA conferences as non -members. Discussion followed regarding the use of CSDA’s online trainings for staff . Director Scheafer e xpressed mixed emoti ons about not renewing the CASA membership and noted that CASA represents the District on a legislative level. C OSTA M ESA S ANITARY D ISTRICT P AGE 8 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ There were no additional questions or comments. Director Perry motioned to forego renewing CASA membership in 2013. Direct or Ooten seconded the motion, which carried 4 -0. 16 . General Manager Annual Performance Recommendation: That the Board of Directors receive and file the report. Mr. Carroll thanked the Board for the opportunity to continue to serve as General Manager . He acknowledged and thanked staff for their hard work and dedication. Director Ooten discussed the criteria that the General Manager was evaluated on, including leadership, management, communication, decision making, judgment, financial management, Mem ber/District and other relations. He noted that he and President Ferryman would complete the General Manager’s evaluations. Director Ooten continued to discuss the goals that were set and achieved by Mr. Carroll and recommended entering into closed sessi on to conclude the evaluation process and to discuss compensation. He highlighted Mr. Carroll’s innovation in regards to safety, his focus on compliance, and the professional growth of the organization. District Counsel addressed President Ferryman and i nformed him of his authority to proceed with the personnel evaluation with or without Mr. Carroll being present and to report out the results of the evaluation. He further noted that a separate closed session could be held to further discuss and negotiate compensation, of which the results shall be reported out for the public’s information. Members of the Board concurred to receive and file the report. XIII. T REASURER 'S R EPORTS 20. Investment Report as of December 31, 2012 Recommendation: That the Boa rd of Directors receive and file the report. District Treasurer Marc Davis provided an investment report as of December 31, 2012. Discussion followed regarding the possibility of the fiscal cliff having an effect on the District’s investments. It was n oted that the fiscal cliff had no effect. There were no additional questions or comments and the report was received and filed. C OSTA M ESA S ANITARY D ISTRICT P AGE 9 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ 21. Exercise Option Year 1 of Agreement for Audit Services Recommendation: That the Board of Directors exercises the f irst option year of the audit services agreement with White Nelson Diehl Evans, LLP (WHDE) to perform the District’s annual audit for year ending June 30, 2013 in the amount of $9,340. Mr. Davis provided background on the District’s contract with White Ne lson Diehl Evans for audit services. There were no questions or comments. Director Ooten motioned to approve first option year of the audit services agreement with White Nelson Diehl Evans, LLP (WHDE) to perform the District’s annual audit for year endi ng June 30, 2013 in the amount of $9,340. Director Scheafer seconded the motion, which carried 4 -0. XIV. A TTORNEY 'S R EPORT S District Counsel Burns provided a re port on the Pipeline litigation. XV. L OCAL M EETINGS A. Orange County Sanitation District (OCSD) – (Vice President Ferryman) President Ferryman reported on the attrition at OCSD , and noted that Jim Herberg will assume the position of General Manager upon the retirement of current General Manager Jim Ruth in April, 2013. B. Santa Ana River Flood Prot ection Agency (SARFPA) – (Director Perry) Director Perry reported that the SARI line will be ready to put into service at the end of 2013. C. Independent Special Districts of Orange County (ISDOC) – (Director Scheafer ) Director Scheafer reported on the e thics training availability through ISDOC, and the possibility of the District receiving a one percent refund of LAFCO fees. He also reported on a presentation on the possibility of ISDOC making committee available to the Grand Jury. D. California Speci al Districts Association (CSDA) There was nothing to report. C OSTA M ESA S ANITARY D ISTRICT P AGE 10 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ E. California Association of Sanitation Agencies (CASA) Director Ooten provided a report regarding the SDRMA presentation on assessment s of force mains. He also commented on a presentation re garding the knowledge transfer process. Discussion followed regarding permanent diesel engines and AQMD regulations. F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Scheafer reported on his attendance of the WACO meeting and discussed the presentation on the Salt and Sea. He also noted that the OC Water Summit will be held in Anaheim on May 17, 2013. XVI. O LD B USINESS - None XVII. N EW B USINESS 22. Options for filling Board of Director Vacan cy – Oral Report Recommendation: That the Board of Directors implements one of the following procedures as per California Government Code Section 1780:  Fill the vacancy by appointment; or  Call for a special election President Ferryman noted that a special election would be expensive to hold and felt that an appointment would appropriate. Director Perry motioned to fill the vacancy by appointment. Director Scheafer seconded the motion, which carried 4 -0. Discussion followed regarding the criteria to be developed, including the requirement of a candidate statement from the applicant and a detailed resume listing the candidate’s qualifications . Mr. Carroll provided suggestions of advertising methods to publicize the application process. District Couns el noted that the selection process would be done in open session. He also indicated that if the Board desired to edit the content of the proposed application form that the y would need to either hold a separate meeting to do so or authorize the President t o make the adjustments. President Ferryman suggested appointing an ad -hoc sub -committee to develop the candidate application requirements . C OSTA M ESA S ANITARY D ISTRICT P AGE 11 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ Directors Scheafer and Ooten volunteered to serve on the ad -hoc committee . Discussion ensued regard ing the scr eening of the applicants, scheduling of special meetings to discuss the received applications, and options of whether or not an interview would be necessary. Director Scheafer suggested that the notice of acceptance of applications be advertised on the D aily Pilot, Orange County Register, and on the District website. General Manager Carroll confirmed that the ad -hoc committee will develop the criteria and information that the applicants will need to be considered. The finalized criteria will then be adv ertised in the Daily Pilot, Orange County Register, and the District website. Public comment was received by Mr. Mosher regarding the ad -hoc committee. There were no additional questions or comments. President Ferryman recommended that a Board of Dir ectors Special Meeting be held on February 4, 2013 at 9:30 a.m. to further discuss the candidate application process. XVIII. O RAL C OMMUNICATIONS AND D IRECTOR C OMMENTS The February date for the regularly scheduled Board of Directors meeting has been changed to Wednesday, February 27, 2013 at 5:30 P.M. Director Scheafer commented on an article in the Daily Pilot regarding gross inaccuracies made by a former Director. Director Ooten also commented on the article referenced by Director Scheafer. There were no additional questions or comments. XIX. ADJOURNMENT TO CLOSED SESSION 23. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Conference with Labor Negotiator (Gov. Code §54957.6) Agency Negotiator: President Ferryman Unr epresented Employee: General Manager Public comment was received from Mr. Mosher on the closed session item . C OSTA M ESA S ANITARY D ISTRICT P AGE 12 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J ANUARY 24, 2013 ________________________________________________________________ The Board of Directors adjourned into Closed S ession at 7:30 P.M. RECONVENED TO OPEN SESSION - 7:55 P.M. President Ferryman reported that a Board of Directors Special Meeting will be held on February 4, 2013 at 9:30 a.m. to further discuss, in closed session, the General Manager’s evaluation and compensation. XX. A DJOURNMENT President Ferryman adjourned the meeting at 7 :57 p.m. to the next re gular meeting of the Costa Mesa Sanitary District Board of Directors on February 27, 2013 at 5:30 p.m. in the District's Board Room, 628 W. 19 th Street. _________________________ _________________________ Art Perry James Ferryman S ecretary President