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Minutes - Board - 2013-01-24 ��SPSA�y ON (�Q is coc ee .gyp - (ORPORA���` COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2013 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on January 24, 2013 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. II. PLEDGE OF President Ferryman led the Pledge of ALLEGIANCE Allegiance. III. INVOCATION President Ferryman led the Invocation. IV. ROLL CALL DIRECTORS PRESENT: James Ferryman, Robert Ooten, 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; Javier Ochiqui, Management Analyst OTHERS PRESENT: Dean Ruffridge, CR&R; Lawrence Jones, CR&R; Jessica Harris, Costa Mesa Resident; Mark Harris, Costa Mesa Resident; Jim Mosher, Newport Beach Resident V. CEREMONIAL MATTERS AND PRESENTATIONS- NONE VI. ANNOUNCEMENT OF LATE COMMUNICATIONS 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. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 Director Ooten made comments relative to the article that was submitted. VII. PUBLIC COMMENTS -There two comments from members of the public. VIII. CONSENT CALENDAR 1. Operations Committee Minutes of The minutes of the Operations Committee December 11, 2012 Meeting of December 11, 2012, were approved as presented. 2. Board of Directors Special Meeting The minutes of the Board of Directors Minutes of December 20, 2012 Special Meeting of December 20, 2012, were approved as presented. 3. Board of Directors Meeting Minutes of The minutes of the Board of Directors December 20, 2012 Special Meeting of December 20, 2012, were approved as presented. 4. Occupancy Report and payment to The Occupancy Report and payment to Costa Mesa Disposal — December Costa Mesa Disposal for December 2012, 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 December 2012 December 2012 was approved. 6. Adoption of Warrant Resolution No. This item was pulled from the Consent CMSD 2013-06 Approving District Calendar for separate vote. Warrant Registers 7. Directors' Compensation and The Directors' Compensation and Reimbursement of Expenses for the Reimbursement of Expenses for the Month Month of December 2012 of December 2012 was approved as presented. 8. Adoption of Resolution No. 2013-827 This item was pulled from the agenda and — Update to Records Retention tabled to the next regular Board meeting of Schedule February 27, 2013. END OF CONSENT CALENDAR Director Ooten moved for approval of the Consent Calendar except for the items pulled for a separate vote (Item Nos. 6 and 8). Director Perry seconded the motion, which carried 3-0 with Director Scheafer absent. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 Regarding Item No. 6, General Manager Carroll indicated that he would work on listing the Bank of America 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 Burns will be working with the Deputy District Clerk on preparing a revised resolution and records retention program. Director Perry moved to approve items 6 and 8. Director Ooten seconded the motion, which carried 3-0 with Director Scheafer absent. IX. PUBLIC HEARINGS- NONE President Ferryman requested to begin discussions with Item 17. X. OPERATIONS COMMITTEE 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 provided a report on the items discussed at the Operations Committee meeting of January 15, 2013, 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 audit, 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 noticing 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. ENGINEER'S REPORTS 18. Project Status Report Recommendation: That the Board of Directors receive and 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. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 Director Scheafer entered the meeting at 5:55 p.m. 19. Elden Pumping Station Downspout on Incoming Gravity Line Recommendation: That the Board of Directors directs the General Manager to include replacement of the section of 37-year old 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 moved 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 to install the second downspout when the piping and valves are replaced. Director Scheafer seconded the motion, which carried 4-0. XII. GENERAL MANAGER/DISTRICT CLERK REPORTS 9. Set a Public Hearing Date for Wastewater Rate Adjustment Recommendation: That the Board 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 Neighborhood Community Center where HF&H Consultants, LLC will present their methodology and respond 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 followed 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. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 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 study 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 moved to set a public 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 moved 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 Code 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 Burns noted that the intent of number 28 is to allow a per diem of service when a Director 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 this 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. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 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 moved. to approve Ordinance No. 96 with the correction of the typographical error. Director Ooten seconded the motion, which carried 4-0. 12. Mid-Year Budget Report Recommendation: That the Board of Directors receive and file the report. General Manager Carroll presented the quarterly mid-year budget report. He indicated that there was a projected surplus in the solid waste fund due to the $80,000 appropriation to fund the Door to Door Household Hazardous Waste collection program. He added that there is a projected deficit in the liquid waste fund primarily due to the Sewer Lateral Assistance Program (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 been reached. Director Ooten suggested that the Operations Committee receive a quarterly report on the Sewer Lateral Assistance Program. There were no additional questions or comments. Members of the Board concurred to receive and file the report. 13. 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 Source Reduction Committee in addition to the existing Operations Committee. Director Scheafer requested that additional workshops and study sessions between meetings instead of creating an additional committee. Members of the Board concurred to retain status quo and maintain the Operations Committee. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 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 program. 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 in 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 that CR&R create a case study of successful and unsuccessful recycling programs. Director Scheafer requested that a letter be sent to the Principals of the low participating schools 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 presentations. 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. 15. California Association of Sanitation Agencies (CASA) Dues Recommendation: 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 expressed mixed emotions about not renewing the CASA membership and noted that CASA represents the District on a legislative level. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 There were no additional questions or comments. Director Perry moved to forego renewing CASA membership in 2013. Director 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, Member/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 session 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 Burns addressed President Ferryman and informed 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. TREASURER'S REPORTS 20. Investment Report as of December 31, 2012 Recommendation: That the Board 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 noted that the fiscal cliff had no effect. There were no additional questions or comments and the report was received and filed. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 21. Exercise Option Year 1 of Agreement for Audit Services Recommendation: That the Board of Directors exercises the first 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 Nelson Diehl Evans for audit services. There were no questions or comments. Director Ooten moved 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 ending June 30, 2013 in the amount of $9,340. Director Scheafer seconded the motion, which carried 4-0. XIV. ATTORNEY'S REPORTS District Counsel Burns provided a report on the Pipeline litigation. XV. LOCAL MEETINGS 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 Protection 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 ethics 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 Special Districts Association (CSDA) There was nothing to report. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 E. California Association of Sanitation Agencies (CASA) Director Ooten provided a report regarding the Special District Risk Management Authority (SDRMA) presentation on assessments of force mains. He also commented on a presentation regarding 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 Water Advisory Committee of Orange County (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. OLD BUSINESS- None XVII. NEW BUSINESS 22. Options for filling Board of Director Vacancy— 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 moved 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 Counsel Burns 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 they would need to either hold a separate meeting to do so or authorize the President to make the adjustments. President Ferryman suggested appointing an ad-hoc sub-committee to develop the COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 candidate application requirements. Directors Scheafer and Ooten volunteered to serve on the ad-hoc committee. Discussion ensued regarding the screening 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 in the Daily 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 advertised 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 Directors Special Meeting be held on February 4, 2013 at 9:30 a.m. to further discuss the candidate application process. XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 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 Unrepresented Employee: General Manager Public comment was received from Mr. Mosher on the closed session item. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2013 The Board of Directors adjourned into Closed Session 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. ADJOURNMENT President Ferryman adjourned the meeting at 7:57 p.m. to the next regular meeting of the Costa Mesa Sanitary District Board of Directors on February 27, 2013at 5:30 p.m. in the District's Board Room, 628 W. 19th Street. Art Perry / James Ferryman Secretary President