03 - Minutes Board of Directors 2013-03-28 ITEM NO. 03 C OSTA M ESA S ANITARY D ISTRICT M INUTES OF B OARD OF D IRECTORS R EGULAR M EETING M ARCH 28 , 2013 ______________________________________________________________________ I. C ALL TO O RDE R The Board of Directors of the Costa Mesa Sanitary District met in reg ular s ession on March 28 , 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 Director Scheafer led the Invocation. IV. R OLL C ALL D IRECTORS P RESENT : James Ferryman, Mike S cheafer , Robert Ooten, Art Perry , Arlene Schafer D IRECTORS A BSENT : None S TAFF P RESENT : Scott Carroll, General Manager; Anna Sanchez, Administrative Service Manager; Noelani Middenway, Deputy Clerk of the District; Robin B. Hamers, District Eng ineer; Ala n Burns, District Counsel; Marc Davis , District Treasurer; Javier Ochiqui, Management Analyst O THERS P RESENT : Jim Mosher, Resident; Dean Ruffridge, CR&R ; Lawrence Jones, CR&R V. C EREMONIAL M ATTERS AND P RESENTATIONS – None . VI. A NNOUNCEMENT OF L ATE C OMMUNICATIONS - None. VII. P UBLIC C OMMENTS – None. VIII. C ONSENT C ALENDAR 1. Board of Directors Special Meeting Minutes of February 4, 2013 The Board of Directors Special Meeting Minutes of February 4, 2013 , was approved as presented.
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 M ARCH 28, 2013 ________________________________________________________________ 2. Board of Direct ors Special Meeting Minutes of February 1 9 , 2013 The Board of Directors Special Meeting Minutes of February 19 , 2013, was approved as presented. 3. Operations Committee Minutes of February 1 9 , 2013 The Operations Committee Minutes of February 19 , 2013, was approved as presented. 4. Board of Directors Special Meeting Minutes of February 22 , 2013 5. Board of Directors Regular Meeting Minutes of February 27, 2013 The Board of Directors Special Meeting Minutes of February 22 , 2013, was approved as presente d. The Board of Directors Regular Meeting Minutes of February 27, 2013, was approved as presented. 6. Occupancy report and payment to Costa Mesa Disposal The Board of Directors approved the occupancy report and payment to Costa Mesa Disposal for the month of February 2013. 7. Contract Payment to CR Transfer for Recycling and Disposal Services The Board of Directors approved payment to CR Transfer for recycling and disposal services for the month of February 2013. 8. Adoption of a Resolution Approv ing District Warrant Registers The Board of Directors adopted a resolution approving District warrants for the Month of February 2013 in the amount of $578,982.43. 9. Directors' Compensation and Reimbursement of Expenses The Board of Directors approved Di rectors' compensation and reimbursement of expenses for the month of February 2013. 10. Investment Report as of February 28 , 2013 The Board of Directors received and filed the report. 11. Annual Health Benefit Broker Fees and Commissions Disclosure The Board of Directors received and filed the report. 12. Third Amendment to General Manager Agreement The Board of Directors approved the third amendment to the General Manager agreement.
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 M ARCH 28, 2013 ________________________________________________________________ E ND OF C ONSENT C ALENDAR Director Perry moved for approval o f the Consent Calendar. Director Schafer seconded the motion. T he motion carried 5 -0. IX. P UBLIC H EARINGS - None X. G ENERAL M ANAGER /D ISTRICT C LERK R EPORTS 13 . Appeal to the Sewer Lateral Assistance Program (SLAP) Guidelines Recommendation: That th e Board of Directors: 1. Deny Ms. Slick’s appeal to request reimbursement from the Sewer Lateral Assistance Program because it will set precedent for not complying with SLAP Guidelines. 2. Direct staff to work with the City of Newport Beach Building Department t o ensure city staff directs residents within CMSD service area to District headquarters to obtain sewer permits. General Manager Scott Carroll indicated that the appellant, Ms. Slick, had confirmed her attendance of the meeting to speak to the item but wa s not present at the time the matter was being heard. Mr. Carroll suggested that the item be heard later in the meeting. President Ferryman concurred with Mr. Carroll’s suggestion and moved on to the next item on the agenda. 1 4 . Proposed FY 2013/14 & 2014/15 CIP Recommendation: That the Board of Directors give staff directions on the proposed two year spending plan for the District’s Solid and Liquid Waste Funds. General Manager Carroll presented the proposed spending plan for FY 2013/14 and 2014/15 noting this is the first time a two -year budget had been developed for the District. Mr. Carroll indicated that a budget summary would be provided to the Board at the preliminary budget hearing on May 23, 2013. Mr. Carroll further discussed the proposed increase to the personnel budget to accommodate the reorganization of the Finance Department , including the creation of the Finance Manager position, a professional development prog ram for the Accounting series that will create the positions of Associate A ccountant and Senior Accountant. Mr. Carroll also discussed the proposed reclassification of the Maintenance Assistant from part -time to full -time to provide building maintenance as well as assi stance in the field for the sewer crew .
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 M ARCH 28, 2013 ________________________________________________________________ Discussion follow ed regarding the proposed reorganization of the Finance Department, the desired educational and experience background of the Finance Manager and its salary range . Director Perry questioned if an outside vendor would be beneficial to contract with for bui lding maintenance in order for the current Maintenance Assistant to assist the sewer crew full -time. General Manager went on to discuss the maintenance and operations of the proposed spending plan covering the anticipated expenditures of the Administrati on, District Clerk, Finance, Engineering , Solid Waste and Sewer departments. General Manager Carroll provided a report on the FY 2014/15 maintenance and operations spending plan, noted a decrease of $326,000 from the F Y 2013/14 and discussed specifics of anticipated expenditures. General Manager Carroll requested that the Board direct staff to approve the reorganization of Finance Department to be able to begin recruitment and fill the Finance Manager position by July. Mr. Carroll also requested that the Board approve the amendment of the E mployee Handbook to allow for the amendment of the Maintenance Worker job description to include welding capabilities . Director Scheafer recommended technology upgrades within the District’s headquarters be added to t he District’s spending plan. Director Scheafer moved to direct staff to begin the Finance Manager recruitment and approve amending the Employee Handbook to increase Maintenance Worker III compensation by $200 a year for welding certification. Director Oo ten seconded the motion. The motion carried 5 -0. 1 5 . Proposed FY 2013/14 & 2014/15 CIP Recommendation: That the Board of Directors give staff directions on the proposed C apital Improvement Plan. General Manager Carroll presented details of the proposed FY 2013/14 and 2014/15 Capital Improvement Projects (CIP). Mr. Carroll discussed proposed forced main upgrades, pump station equipment replacement, valve and pipe replaceme nts, and the installation of an emergency generator at the District yard. Discussion followed regarding the upgrade of sewer lines and addressing of hot spots. There were no additional questions or comments and the report was received.
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 M ARCH 28, 2013 ________________________________________________________________ 1 6 . City of Costa Mesa 60 th Anniversary Recommendation: That the Board of Directors: 1. Discuss ideas to help promote the anniversary and special events; 2. Approve allocating the necessary fun ds for promotional programs; and 3. Direct staff to work with the Anniversary Celebration Planning Committee to implement the ideas approved by the Board at tonight’s meeting. General Manager Carroll presented suggestions on ways to promote the City of Cost a Mesa’s 60 th anniversary that would tie into the District’s solid waste and sewer functions. Discussion followed regarding the use of a banner to be placed on the CR&R trucks, creating reusable tote bags, and providing a full page ad in the celebration m agazine. President Ferryman opened the item for public comment and invited Mr. Jim Mosher to comment on the item. Mr. Mosher addressed the Board and commented on the District’s involvement with the City of Cost Mesa’s event, suggested that the District make note of the District’s 70 th anniversary in 2014 and encouraged the District to include Cit y of Newport Beach’s residents. President Ferryman closed public comment. Director Scheafer moved to appropriate a budget of $8,000 with the intent of $2,50 0 to purchase a full page ad, bags and a street banner. District Counsel Burns requested that the Board also include in its recommendation that the finding satisfies the strategic plan goal , as outlined by General Manager Carroll , as well as serving the District ’s purpose in education about recycling. Director Scheafer confirmed District Counsel’s request as part of his motion. Director Schafer seconded the motion. District Treasurer Davis noted that the funds would be appropriated from retained earni ngs. The motion carried 5 -0.
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 M ARCH 28, 2013 ________________________________________________________________ 17 . City of Costa Mesa Mayor’s Celebration – The Art of Leadership Recommendation: That the Board of Directors: 1. Considers being a Bronze Spo nsor to the Mayor’s Celebration – The Art of Leadership. 2. Approve budget adjustment in the amount of $2,500 to provide adequate funding for the sponsorship. General Manager Carroll provided information on the City of Costa Mesa’s Mayor’s Celebration and pro posed that the District register as a Bronze S ponsor. Mr. Carroll discussed the District’s in volvement with the Anaheim MUZEO’s ‘trash art’ competition for local schools, as well as the possibility of involving Estancia High School and Costa Mesa Hig h Scho ol’s students in creating a new District logo, and how these activities ties into the Mayor’s Art of Leadership celebration. Discussion followed regarding the cost of the sp onsorship, how the proceeds will benefit the schools , and how the attendance of t he Mayor’s celebration would tie into the District’s goals. Director Ooten moved to 1.) A pprove the District becoming a Bronze Sponsor of the Mayor’s Celebration – The Art of Leadership supports the District’s strategic plan for partnership , District bra nding with the potential logo change, and promoting recycling, and 2.) Approve the budget adjustment in the amount of $2,500. Director Perry did not believe the District has a ppropriate findings to justify sponsoring the Mayor’s Celebration. District C ounsel Burns identif ied findings sponsoring this event such as promoting recycling, the strengthening of the City/District relationship, and artwork such as designing a logo for the District . There were no additional questions or comments. The motion c arried 4 -1, with Director Perry opposed. 18. Notice of Nominations for the Special District Risk Management Authority (SDRMA) Board of Directors 2013 Election Recommendation: That the Board of Directors considers nominating a representative from CMSD to serve on SDRMA Board of Directors and direct staff to prepare a resolution for the April 18, 2013 Board of Directors meeting. General Manager Carroll noted that SDRMA is accep ting nominations to serve on its Board of Directors and recommended that the Board nominate one of its members.
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 M ARCH 28, 2013 ________________________________________________________________ Director Schafer nominated Vice President Mike Scheafer to serve on the SDRMA Board of Directors. Director Ooten seconded the motion. The mot ion carried 5 -0. Regarding Item No. 13, General Manager Carroll indicated that the appellant , Ms. Slick, was still not present at this point in the meeting and requested direction from the Board to continue the item to the Board’s next regular meeting. D irector Scheafer moved to discuss the item as the Board’s April meeting. Director Schafer seconded the motion. The motion carried 5 -0. Director Ooten moved to d irect staff to work with the City of Newport Beach Building Department to ensure city staff di rects residents within CMSD service area to District headquarters to obtain sewer permits. Director Scheafer seconded the motion. The motion carried 5 -0. Director Ooten discussed placing SLAP information on the City/District Liaison Committee meeting age nda. XI. OPERATIONS COMMITTEE 19. Tuesday March 19, 2013, 9:30 a.m. - (Vice President Scheafer and P resident Ferryman) Recommendation: That the Board of Directors accepts a nd files report. Chairman Scheafer report ed on staff’s presentation discussing alternatives to the telephone book recycling program and the District’s involvement in the City of Costa Mesa’s 60 th anniversary celebration. Director Perry noted that Estanci a High School m ay not be able to participate in the bottles and cans recycling program and discussed Estancia’s battery recycling program. There were no additional questions or comments and the report was received.
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 M ARCH 28, 2013 ________________________________________________________________ XII. E NGINEER 'S R EPORTS 2 0 . Proj ect Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Hamer's noted nothing to report at this time. There were no questions or comments and the report was received. 21. Proposed OCSD Transfer of Fairview Trunk – Condition Assessment and Engineer’s Estimate to Rehabilitate Recommendation: That the Board of Directors considers the Engineer’s Report and directs the General Manager to cond uct a soils test. District Engineer Hamers informed the Board that a condition assessment and an engineer’s estimate to rehabilitate the Fairview line had been completed. Mr. Hamers discussed the results of the condition assessment with the Board . Mr. Ha mers provided information about potential problems should the line need to be excavated and suggested conducting a soils test. President Ferryman expressed fav or in conducting a soils analysis. Director Ooten moved to request from the Orange County Sani tation District (OCSD) the total Engineer’s es timates for improvements and direct ed the General Manager to conduct a soils test. Director Schafer seconded the motion. General Manager recommended that the soils test be conducted first. District Engineer H amers suggested that the Board recommend that the District inform OCSD of its findings to date and indicate to them that a soils test will be conducted. Director Ooten revised his motion and moved to inform OCSD of the Engineer’s estimated costs and the t entative approval of the Fairview Trunk transfer contingent upon the results of the soils test analysis. Director Schafer seconded the motion. The motion carried 5 -0. XIII. T REASURER 'S R EPORT - None XIV. A TTORNEY 'S R EPORT
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 M ARCH 28, 2013 ________________________________________________________________ 22. Deletion of Attorney’s Fees Provisions in Standard CMSD Agreements Recommendation: That the Board of Directors approves deleting the attorney’s fees provisions from standard CMSD agreements. Distric t Counsel Burns provided information on the request to delete the attorney’s fees provisions from standard CMSD agreements. There were no questions or comments. Director Ooten moved to approve deleting the attorney’s fees provisions from standard CMSD ag reements. Director Scheafer seconded the motion. The motion carried 5 -0. XV. L OCAL M EETINGS A. Orange County Sanitation District (OCSD) – (President Ferryman) Recommendation: That the Board of Directors accepts oral report. President Ferryman reported that Jim Herberg is now the OCSD General Manager, and discussed the passing of the rate increase. President Ferryman noted that he is OCSD’s representative on the Orange County Council of Governments (OCCOG) and that he was appointed to the San Diego Bord er Committee that negotiates with the Native American tribes and Mexico on border issues. B. Santa Ana River Flood Protection Agency (SARFPA) – (Director Perry) Recommendation: That the Board of Directors accepts oral report. Director Perry reported on his attendance of the SARFPA special meeting of March 27, 2013 a nd discussed FEMA’s insurance fee increase . President Ferryman reported on a presentation by Colonel Toy from the Army Corps of Engineers and announced that the new Santa Ana Regional Interce ptor (SARI ) line should be operational in 2014. C. Independent Special Districts of Orange County (ISDOC) – (Director Scheafer) Recommendation: That the Board of Directors accepts oral report. No reports at this time. D. California Special Districts A ssociation (CSDA) Recommendation: That the Board of Directors accepts oral 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 M ARCH 28, 2013 ________________________________________________________________ Director Scheafer reported on his conference calls with the CSDA Membership Committee and Education C ommittee, and discussed the upcoming conference in September and future conference sites. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors accepts oral report. No reports at this time. F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Recommendation: That the Board of Directors accepts oral report. Director Schafer requested clarification of meetings that are approved to receive per diem of service payment. Director Scheafer noted that meetings and events that th e Board Members are invited to attend as representatives of the District do qualify for per diem of service payment. XVI. O LD B USINESS - None XVII. N EW B USINESS - None XVIII. O RAL C OMMUNICATIONS AND D IRECTOR C OMMENTS Director Schafer noted that she may arrive late to the April 3 , 2013 special meeting. XIX. A DJOURNMENT TO C LOSED S ESSION – 7 :4 5 p.m. 2 1 . Pursuant to Government Code Section 54956.9(b): CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION One potential case. Weisenberger vs. Costa Mesa Sanitary District XX. R ECONVENE TO O PEN S ESSION – 8:12 p.m. President Ferryman reconvened to open session and indicated t hat there was nothing to report at this time. XXI. A DJOURNMENT President Ferryman adjourned the meeting at 8 :12 p.m. to t he next regular meeting of the Costa Mesa Sanitary District Board of Directors on April 18 , 2013 at 5:30 p.m. in the District's Board Room, 628 W. 19th Street.
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 M ARCH 28, 2013 ________________________________________________________________ _________________________ _________________________ Art Perry James Ferryman Secretary President