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04 - Minutes Board of Directors 2013-04-18 ITEM NO. 04 C OSTA M ESA S ANITARY D ISTRICT M INUTES OF B OARD OF D IRECTORS R EGULAR M EETING A PRIL 1 8 , 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 April 18 , 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 Vice President Scheafer led the Invocation. IV. R OLL C ALL D IRECTORS P RESENT : James Fe rryman, Mike Scheafer , 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 Engineer; Ala n Burns, District Counsel; Marc Davis , District Treasurer; Javier Ochiqui, Management Analyst O THERS P RESENT : Maureen Slick, Resident; Lawrence Jones, CR&R V. C EREMONIAL M ATTERS AND P RESENTATIONS – None . VI. A NNOUNCEMENT OF L ATE C OMMUNICATIONS - General Manager Carroll indicated that written public comments had been received from Mr. Jim Mosher and have been provided to the Board for their review. VII. P UBLIC C OMMENTS – None. VIII. C ONSENT C ALENDAR 1. Board of Directors Special Meeting Minutes of March 12 , 2013 The Board of Directors Special Meeting Minutes of March 12 , 2013 , was approved C OSTA M ESA S ANITA RY D ISTRICT P AGE 2 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ as presented. 2. Operations Committee Minutes of March 19, 2013 The Operations Committee Minutes of March 19, 2013, was approved as presented. 3. B oard of Directors Regular Meeting Minutes of March 28, 2013 The Board of Directors Regular Meeting Minutes of March 28, 2013, was approved as presented. 4. Occupancy report and payment to Costa Mesa Disposal 5. Contract Payment to CR Transfer for Recyclin g and Disposal Services The Board of Directors approved the occupancy report and payment to Costa Mesa Disposal for the month of March 2013. The Board of Directors approved payment to CR Transfer for recycling and disposal services for the month of March 2013. 6. Adoption of a Resolution Approving District Warrant Registers This item was pulled for further discussion. 7. Directors' Compensation and Reimbursement of Expenses The Board of Directors approved Directors' compensation and reimbursement of expenses for the month of March 2013. 8. Investment Report as of March 31, 2013 The Board of Directors received and filed the report. 9. Adoption of Resolution No. 2013 -828 a mending the District’s Deferred Compensation Plan (457) The Board of Director s adopted Resolution No. 2013 -828 amending the District’s Deferred Compensation Plan (457). 10. Adoption of Resolution No. 2013 -829 nominating Vice President Scheafer to serve on the Special District Risk Management Authority (SDRMA) Board of Directors T he Board of Directors adopted Resolution No. 2013 -829 nominating Vice President Scheafer to serve on the Special District Risk Management Authority (SDRMA) Board of Directors . E ND OF C ONSENT C ALENDAR Director Schafer moved for approval of the Consent Ca lendar with the exception of Item No. 6 that was pulled for separate discussion . Vice President Sch e afer seconded the motion. C OSTA M ESA S ANITA RY D ISTRICT P AGE 3 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ T he motion carried 5 -0. Regarding Item No. 6, General Manager Carroll provided Mr. Mosher’s com ments to th e Board rega rding payments made to the District Engineer for professional services , as well as payments made to Liebert, Cassidy, and Whitmore. Mr. Carroll responded to Mr. Mosher’s comment s and provided details of the payment s to Liebert, Cassidy, and Whitmore . Dir ector Bob Ooten moved to approve Item No. 6. Director Art Perry seconded the motion. The motion carried 5 -0. General Manager Carroll noted that the Public Hearing was scheduled to begin at 6:00 p.m. President Ferryman moved on to Item No. 13 in the in terest of beginning the Public Hearing at the noticed time of 6:00 p.m. 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 d eny Ms. Slick’s appeal to request reimbursement from the Sewer Lateral Assistance Program because it will set precedent for not complying with SLAP Guidelines. President Ferryman invited Ms. Slick to address the Board. Ms. Slick provided details of the process by which her se wer lines had been reviewed by the City of Newport Beach staff and why she had not submitted her SLAP application per the SLAP guidelines. District Counsel Burns asked clarifying questions regarding the City of Newport Beach staff’s involvement in checki ng Ms. Slick’s lines. Discussion followed regarding the communication between the District and the City of Newport Be ach regarding the SLAP program and the plumbing charges incurred by Ms. Slick. Director Perry questioned District Counsel Burns if the District was limited by any legal limitations. District Counsel Burns responded to Director Perry and noted that there was a purpose that the Board had adopted such criteria. C OSTA M ESA S ANITA RY D ISTRICT P AGE 4 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ Director Ooten moved for Ms. Slick to work with staff to settle the matter. General Manager Carroll requested clarification of direction from the Board. Vice President Scheafer suggested that a courtesy letter be sent to the City of Newport Beach to address this matter. Director Ooten revised his motion and moved to d irect staff to award Ms. Slick the full benefits of the SLAP program up to $1,800. Director Perry seconded the motion. District Counsel Burns commented that the Board may make a finding that it encourages its constituents to be aware of the legal relatio nships between the governing entities and that this situation went beyond that where a different City responded and exceeded its jurisdiction. The Board unanimously agreed that due to misinformation by the entity that responded erroneously to Ms. Slick’s situation, the Board found it compelling to award Ms. Slick the full benefit of the SLAP program up to $1,800. District Counsel Burns indicated that this situation would be know n as an estoppel. The motion carried 5 -0. 1 4 . Sewer Lateral Assistance Program Analysis Recommendation: That the Board of Directors approves two of the following recommendations: 1. Start collecting at least 50% of the Permit Fee from SLAP participants in order to cover our indirect costs, and no longer allow CMSD staff to waiv e the plan check and tie -in fees; or 2. Continue to waive the Permit Fee from SLAP participants, and no longer allow CMSD staff to waive the plan check and tie -in fees. 3. Allocate $25,000 from the Liquid Waste Fund Balance to the SLAP Budget Mr. Javier Ochiqui provided report details and an illustration of SLAP program participants, noting that that the majority of participants were located on the East S ide Costa Mesa. Mr. Ochiqui discussed the District’s past practice of waiving permit and plan check fees. Director Perry commented that he agreed with the District Engineer’s suggestion of decreasing the reimbursement amount from $1,800 to $1600 and to not charge additional fees. Vice President Scheafer concurred. C OSTA M ESA S ANITA RY D ISTRICT P AGE 5 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ Discussion followed regarding the effective date of the reimbursement amount change to $1600.00 and it was agreed upon that the change would become effective upon approval. Director Perry moved to reduce the reimbursement amount from $1,800 to $1600 to assist in recouping fees. General Manager Carroll informed the Board that a second motion would be necessary to appropriate $25,000 as the SLAP program funds have been depleted. Mr. Ochiqui requested that the Board direct CMSD staff to no longer wa ive plan check and tie in fees as part of the motion. Director Perry revised his motion to reduce the reimbursement amount from $1,800 to $1600 and to no longer allow CMSD staff to waive plan check and tie in fees. General Manager Carroll noted that Mr. Jim Mosher had provided publ ic commen t regarding this item which had been provided to the Board for their review. The motion carried 5 -0. Vice President Scheafer moved to a llocate $25,000 from the Liquid Waste Fund Balance to the SLAP budget. Director Perry seconded the motion. T he motion carried 5 -0. 1 5 . Rewarding Ideas Program Recommendation: That the Board of Directors approves rewarding District employee Jaesen Alfassa $100.00 for his suggestion on creating a manhole cover awareness program. General Manager Carroll repor ted that Mr. Jaesen Alfassa had provided an employee suggestion on creating a manhole awareness program and recommended that he be awarded $100 for his suggestion. Director Ooten moved for approval. Director Perry seconded the motion. The motion carrie d 5 -0. IX. P UBLIC H EARINGS – President Ferryman opened the Public Hearing at 6:10 p.m. 11. Consideration of S olid Waste Annual Charges for FY 2013 -14 & FY 2014 - 15 to be collected with the General Taxes A. Presentation of Report B. Open Public Hearing C OSTA M ESA S ANITA RY D ISTRICT P AGE 6 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ C. Recommendation: That the Board of Directors approves continuing the P ublic H earing to June 27, 2013 and direct staff to negotiate with CR&R on lowering the hauler and/or recycling/disposal rates . President Ferryman deferred to District Counsel Burns to provide an overvi ew of the public hearings. District Counsel Burns provided details of the procedural requirements for both the solid an d liquid waste public hearings per the Proposition 218 regulations. President Ferryman deferred to General Manager Carroll for report d etails. General Manager Carroll provided report details regarding the solid waste revenues and discussed the five key expenses including the hauler rate, recycling/disposal rate, salaries and benefits, operations and maintenance, and programs. Mr. Carroll further discussed expenses, revenues, and the proposed decrease of the annual charge per residential parcel to $216 per year or $18 per month. Discussion followed regarding the amount of the f und balance and its fluctuation during the fiscal year. Direc tor Ooten indicated that he would like two million dollars to be allocated as an unrestricted reserve. General Manager Carroll informed the Board that the preliminary draft of the CR&R audit had been received and that staff will analyze and determine if a rate decrease needs to be negotiated. Discussion followed regarding the cost of advertising the P roposition 218 hearing. General Manage r Carroll recommended to the Board that the public hearing be continued to June 27, 2013 and to direct staff to negoti ate with CR&R on lowering the hauler and/or recycling/disposal rates. Vice President Scheafer moved to continue the public hearing to June 27, 2013. Director Perry seconded the motion. The motion carried 5 -0. General Manager Carroll informed the Board that Mr. Jim Mosher had provided written public comment on this item which had been provided to them for their review. 12. Consideration of Liquid Waste Annual Charges for FY 2013 -14 & FY 2014 -15 to be Collected with the General Taxes C OSTA M ESA S ANITA RY D ISTRICT P AGE 7 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ A. Presentation of Report B. Open Public Hearing C. Recommendation: That the Board of Directors approves continuing the public hearing to June 27, 2013. General Manager Carroll provided report details and discussed the liquid waste projected revenues, expenditures, and the A sse t M anagement F und. Mr. Carroll provided his proposed spending cuts for FY 2013 -14 and FY 2014 -15 and addressed concerns regarding the proposed Finance Manager position. Discussion followed regarding the anticipated savings from the approved changes to t he SLAP program , the recruitment of the Finance Manager and the desired qualifications for the position. Administrative Services Manager Anna Sanchez provided clarifying details of the desired qualifications of the Finance Manager. Discussion followed re garding the District Treasurer’s role in the Finance D epartment. Director Perry noted that he did not feel the proposed reduction of pump station maintenance, smart covers, and office supplies should be cut from the budget. Discussion followed regarding the proposed budget cuts and District branding. The Board concurred with Director Perry’s suggestions. General Manager Carroll confirmed that the Proposition 218 procedures had been met. General Manager Carroll noted that Mr. Jim Mosher had provided co mments regarding this item which have been provided to the Board for review. Deputy District Clerk Noelani Middenway reported that eleven written protests had been received. Vice President Scheafer moved to continue the public hearing to June 27, 2013. Director Schafer seconded the motion. The motion carried 5 -0. C OSTA M ESA S ANITA RY D ISTRICT P AGE 8 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ XI. OPERATIONS COMMITTEE 16 . Tuesday April 16, 2013, 9:30 a.m. - (Vice President Scheafer and Director Schafer ) Recommendation: That the Board of Directors accepts and files re port. Vice President Scheafer report ed on the Fairview Development Center sewer maintenanc e, trash cans stored in alleys and noted no updates to the CIP projects. General Manager Carroll noted that Mr. Jim Mosher had provided written public comment rega rding this item suggesting that the Operations Committee meetings be held as a study session to allow the other members of the Board to participate. Discussion followed regarding the ability to hold a workshop/study session in lieu of the current Operations Committee meeting. There were no additional questions or comments and the report was received. XII. E NGINEER 'S R EPORTS 17. Project Status Report Recommendation: That the Board of Directors receive and file the report. There was nothing to report. There were no questions or comments and the report was received. 18 . Fairview Development Center (Fairview State Hospital on Harbor Blvd) – Inflow Reduction Program Recommendation: That the Board of Directors approves one or more of the fo llowing recommendations: 1. Receive and file this report. 2. Consider working with state officials and urging the state to clean the system and comply with the statewide Waste Discharge Requirements. Poor performance of private and state -owned wastewater colle ction systems inside the District will reflect negatively on the District and will be noticed by the state water board regulators. 3. Consider a cost -sharing or trade of services agreement with the state for sewer line cleaning that would benefit both parties . 4. Consider additional actions as determined by the Board upon consideration of this matter. C OSTA M ESA S ANITA RY D ISTRICT P AGE 9 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ General Manager Carroll provided report details regarding the Fairview Development Center sewer line cleaning and noted that the Operations Committee recommended consider ing a cost -sharing or trade of services agreement with the state for sewer line cleaning that would benefit both parties. The Board did not approve the Operations Committee’s recommendation, but instead, d iscussion followed to allow the Development Center the opportunity to clean their sewer, the anticipated cost to clean the sewer line, and creating dialogue with the Developmental Center. There were no additional questions or comments and the report was received. XIII. T REASU RER 'S R EPORT - None XIV. A TTORNEY 'S R EPORT - None XV. L OCAL M EETINGS A. Orange County Sanitation District (OCSD) – (President Ferryman) Recommendation: That the Board of Directors accepts oral report. No reports at this time. B. Santa Ana River Flo od Protection Agency (SARFPA) – (Secretary Perry) Recommendation: That the Board of Directors accepts oral report. No reports at this time. C. Independent Special Districts of Orange County (ISDOC) – (Vice President Scheafer) Recommendation: That the Bo ard of Directors accepts oral report. Vice President Scheafer reported that Mr. David Cordero is moving on from ISDOC. He is now the chief of staff for the City of Irvine’s mayor. D. California Special Districts Association (CSDA) Recommendati on: That the Board of Directors accepts oral report. Vice President Scheafer reported that he has completed the sexual harassment training. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors acce pts oral report. No reports at this time. C OSTA M ESA S ANITA RY D ISTRICT P AGE 10 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD A PRIL 18, 2013 ________________________________________________________________ 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. Vice President Schafer repor ted on her attendance of the WACO meeting and Chamber of Commerce breakfast. XVI. O LD B USINESS - None XVII. N EW B USINESS Director Perry reported that he and Director Ooten would be attending the CWEA meeting in Palm Springs on Friday, April 19, 2013 and requested Board approval. Vice President Scheafer moved to address a non -agenda item which arose after the agenda had been prepared as there was a need to take immediate action. Director Schafer seconded the motion. The motion carried 5 -0. Vice President Scheafer moved to allow Directors Ooten and Perry to attend a meeting in Riverside County. Director Schafer seconded the motion. The motion carried 5 -0. XVIII. O RAL C OMMUNICATIONS AND D IRECTOR C OMMENTS Vice President Sc heafer noted that he would not be able to attend the Mayor’s dinner. Discussion followed regarding the number of sewer laterals in Newport Beach, the circulation of the District’s newsletter to Newport Beach residents, and the International Christian A ca demy Montessori of Costa Mesa’s involvement in the Muzeo’s Trash Art contest. XXI. A DJOURNMENT President Ferryman adjourned the meeting at 7:23 p.m. to the next regular meeting of the Costa Mesa Sanitary District Board of Directors on May 23 , 2013 at 5 :30 p.m. in the District's Board Room, 628 W. 19th Street. _________________________ _________________________ Art Perry James Ferryman Secretary President