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Minutes - Board - 2013-03-28 �gPS0117:14y • c J.� r�� goo ^ Ad it moo ,�' f; U � y RPORA'Tti�` COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 28, 2013 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on March 28, 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 Director Scheafer led the Invocation. IV. ROLL CALL DIRECTORS PRESENT: James Ferryman, Mike Scheafer, Robert Ooten, Art Perry, Arlene Schafer DIRECTORS ABSENT: None STAFF PRESENT: Scott Carroll, General Manager; Anna Sanchez, Administrative Service Manager; Noelani Middenway, Deputy Clerk of the District; Robin B. Hamers, District Engineer; Alan Burns, District Counsel; Marc Davis, District Treasurer; Javier Ochiqui, Management Analyst OTHERS PRESENT: Jim Mosher, Resident; Dean Ruffridge, CR&R; Lawrence Jones, CR&R V. CEREMONIAL MATTERS AND PRESENTATIONS— None. VI. ANNOUNCEMENT OF LATE COMMUNICATIONS — None. VII. PUBLIC COMMENTS — None. VIII. CONSENT CALENDAR 1. Board of Directors Special Meeting The Board of Directors Special Meeting Minutes of February 4, 2013 Minutes of February 4, 2013, was approved as presented. • COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 2. Board of Directors Special Meeting The Board of Directors Special Meeting Minutes of February 19, 2013 Minutes of February 19, 2013, was approved as presented. 3. Operations Committee Minutes of The Operations Committee Minutes of February 19, 2013 February 19, 2013, was approved as presented. 4. Board of Directors Special Meeting The Board of Directors Special Meeting Minutes of February 22, 2013 Minutes of February 22, 2013, was approved as presented. 5. Board of Directors Regular Meeting The Board of Directors Regular Meeting Minutes of February 27, 2013 Minutes of February 27, 2013, was approved as presented. 6. Occupancy report and payment to The Board of Directors approved the Costa Mesa Disposal occupancy report and payment to Costa Mesa Disposal for the month of February 2013. 7. Contract Payment to CR Transfer for The Board of Directors approved payment. Recycling and Disposal Services to CR Transfer for recycling and disposal services for the month of February 2013. 8. Adoption of a Resolution Approving The Board of Directors adopted a resolution District Warrant Registers approving District warrants for the Month of February 2013 in the amount of $578,982.43. 9. Directors' Compensation and The Board of Directors approved Directors' Reimbursement of Expenses compensation and reimbursement of expenses for the month of February 2013. 10.Investment Report as of February 28, The Board of Directors received and filed 2013 the report. 11.Annual Health Benefit Broker Fees The Board of Directors received and filed and Commissions Disclosure the report. 12.Third Amendment to General The Board of Directors approved the third Manager Agreement amendment to the General Manager agreement. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 END OF CONSENT CALENDAR Director Perry moved for approval of the Consent Calendar. Director Schafer seconded the motion. The motion carried 5-0. IX. PUBLIC HEARINGS - None X. GENERAL MANAGER/DISTRICT CLERK REPORTS 13. Appeal to the Sewer Lateral Assistance Program (SLAP) Guidelines Recommendation: That the 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 to 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 was 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. 14. Proposed FY 2013/14 & 2014/15 Spending Plan 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, and a professional development program for the Accounting series that will create the positions of Associate Accountant 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 assistance in the field for the sewer crew. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 Discussion followed 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 building maintenance in order for the current Maintenance Assistant to assist the sewer crew full-time. General Manager Carroll went on to discuss the maintenance and operations of the proposed spending plan covering the anticipated expenditures of the Administration, District Clerk, Finance, Engineering, Solid Waste and Sewer departments. General Manager Carroll provided a report on the .FY2014/15 maintenance and operations spending plan, noted a decrease of $326,000 from the FY 2013/14 and discussed specifics of anticipated expenditures. General Manager Carroll requested that the Board direct staff to approve the reorganization of the 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 Employee 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 the 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 Ooten seconded the motion. The motion carried 5-0. 15. Proposed FY 2013/14 & 2014/15 CIP Recommendation: That the Board of Directors give staff directions on the proposed Capital 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 replacements, 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. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 16. City of Costa Mesa 60th Anniversary Recommendation: That the Board of Directors: 1. Discuss ideas to help promote the anniversary and special events; 2. Approve allocating the necessary funds 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 Costa Mesa's 60th 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 magazine. 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 70th anniversary in 2014 and encouraged the District to include City of Newport Beach's residents. President Ferryman closed public comment. Director Scheafer moved to appropriate a budget of $8,000 with the intent of $2,500 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 earnings. The motion carried 5-0. 17. City of Costa Mesa Mayor's Celebration —The Art of Leadership Recommendation: That the.Board of Directors: COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 1. Considers being a Bronze Sponsor 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 proposed that the District register as a Bronze Sponsor. Mr. Carroll discussed the District's involvement with the Anaheim MUZEO's `trash art' competition for local schools, as well as the possibility of involving Estancia High School and Costa Mesa High School'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 sponsorship, how the proceeds will benefit the schools, and how attendance at the Mayor's celebration would tie into the District's goals. Director Ooten moved to 1.) Approve the District becoming a Bronze Sponsor of the Mayor's Celebration The Art of Leadership supports the District's strategic plan for partnership, District branding 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 appropriate findings to justify sponsoring the Mayor's Celebration. District Counsel Burns identified 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 carried 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 accepting nominations to serve on its Board of Directors and recommended that the Board nominate one of its members. Director Schafer nominated Vice President Mike Scheafer to serve on the SDRMA Board of Directors. Director Ooten seconded the motion. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 The motion 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. Director 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 direct staff to work with the City of Newport Beach Building Department to ensure city staff directs 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 agenda. XI. OPERATIONS COMMITTEE 19. Tuesday March 19, 2013, 9:30 a.m. - (Vice President Scheafer and President Ferryman) Recommendation: That the Board of Directors accepts and files report. Chairman Scheafer reported on staff's presentation discussing alternatives to the telephone book recycling program and the District's involvement in the City of Costa Mesa's 60th anniversary celebration. Director Perry noted that. Estancia High School may 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. XII. ENGINEER'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 20. Protect Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Hamers 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 conduct 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. Hamers provided information about potential problems should the line need to be excavated and suggested conducting a soils test. President Ferryman expressed favor in conducting a soils analysis. Director Ooten moved to request from the Orange County Sanitation District (OCSD) the total Engineer's estimates for improvements and directed the General Manager to conduct a soils test. Director Schafer seconded the motion. General Manager Carroll recommended that the soils test be conducted first. District Engineer Hamers 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 tentative 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. TREASURER'S REPORT - None XIV. ATTORNEY'S REPORT 22. Deletion of Attorney's Fees Provisions in Standard CMSD Agreements Recommendation: That the Board of Directors approves deleting the COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 attorney's fees provisions from standard CMSD agreements. District 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 agreements. Director Scheafer seconded the motion. The motion carried 5-0. XV. LOCAL MEETINGS 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 Border 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 and 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 Interceptor (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 Association (CSDA) Recommendation: That the Board of Directors accepts oral report. Director Scheafer reported on his conference calls with the CSDA Membership Committee and Education Committee, and discussed the upcoming conference in September and future conference sites. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 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 the Board Members are invited to attend as representatives of the District do qualify for per diem of service payment. XVI. OLD BUSINESS - None XVII. NEW BUSINESS - None XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Schafer noted that she may arrive late to the April 3, 2013 special meeting. XIX. ADJOURNMENT TO CLOSED SESSION - 7:45 p.m. 21. Pursuant to Government Code Section 54956.9(b): CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION One potential case. Weisenberger vs. Costa Mesa Sanitary District XX. RECONVENE TO OPEN SESSION-8:12 p.m. President Ferryman reconvened to open session and indicated that there was nothing to report at this time. • XXI. ADJOURNMENT President Ferryman adjourned the meeting at 8:12 p.m. to the 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. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2013 "` /,� �. p/ _ ��1./�_���_ Art Perry Jartrs,Fe r r a i G ,u Secretary Pre:ldent