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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.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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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.
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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.
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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.
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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:
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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.
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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
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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
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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.
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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.
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