04 - Minutes Board of Directors 2013-06-27 P rotecting our community’s health and the environ ment by providing solid waste and sewer collection services. www.cmsdca.gov C OSTA M ESA S ANITARY D ISTRICT M INUTES OF B OARD OF D IRECTORS R EGULAR M EETING J UNE 27 , 2013 ______________________________________________________________________ I. C ALL TO O RDE R The Board of Directors of the Costa Mesa Sanitary District met in reg ular session on June 27 , 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 Ooten led the Invocation. IV. R OLL C ALL D IRECTORS P RESENT : James Ferryma n, Robert Ooten, Art Perry , Arlene Schafer D IRECTORS A BSENT : Mike Scheafer (entered into the meeting at 6:10 p.m.) 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 : Joseph Jenkins, EEC ; Dean Ruffridge, CR&R; Lawrence Jones, CR&R ; Jim Mosher, Residen t; Tom Taleb, Business Owner V. C EREMONIAL M ATTERS AND P RESENTATIONS – President Ferryman read a proclamation from CMSD congratulating the City of Costa Mesa on its 60 th anniversary. VI. A NNOUNCEMENT OF L ATE C OMMUNICATIONS - General Manager Carroll indicated that staff received information from the California Special Districts Association (CSDA) after the agenda was posted regarding a vacant seat on CSDA’s Finance Corporation Board and Direc tor Arlene Schafer has expressed an interest to seek Board support for nominating her to the vacant seat. Mr. Carroll recommended that the Board approve this item arose after the agenda was posted and needs to be heard.
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 J UNE 27, 2013 ___________________________________________________________________________________ Mr. Carroll also recommended that this item be added to the agenda as Item 29 . District Counsel Burns advised that the Board needs to make a finding that the need to address the item arose after the agenda was posted, and that due to the nearness of the selection date, a need to take immediate action was present and therefore the item could b e voted on as item 29 on the agenda. Director Ooten moved to make those findings based on the above -mentioned facts; the motion was seconded and carried by a vote of 4 -0 -1, with Director Schafer absent. VII. P UBLIC C OMMENTS President Ferryman invited members of the public to address the Board. Mr. Jim Mosher provided public comment regarding reimbursement to the District fr om the City of Newport Beach for its assistance in responding to an emergency. General Manager Carroll responded to the public comment and noted that the District did receive reimbursement from the City of Newport Beach. Seeing no one further, Presiden t Ferryman closed public comments. VIII. C ONSENT C ALENDAR 1. Operations Committee Minutes of May 21, 2013 The Operations Committee Minutes of May 21, 2013, was approved as presented. 2. Board of Directors Regular Meeting Minutes of May 23, 2013 3. Board of Direc tors Special Meeting Minutes of May 28, 2013 The Board of Directors Regular Meeting Minutes of May 23 , 2013, was approved as presented. The Board of Directors Special Meeting Minutes of May 28, 2013, was approved as presented. 4. Occupancy report and pa yment to Costa Mesa Disposal The Board of Directors approved the occupancy report and payment to Costa Mesa Disposal for the month of May 2013. 5. Contract Payment to CR Transfer for Recycling and Disposal Services 6. Adoption of a Warrant Resolution No. 2013 -12 Approving District Warrant Registers The Board of Directors approved payment to CR Transfer for recycling and disposal services for the month of May 2013. The Board of Directors approved adoption of Warrant Resolution No. CMSD 2013 -12 approving District warrant registers for the month of May in the amount of $920,037 .15.
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 J UNE 27, 2013 ___________________________________________________________________________________ 7. Directors' Compensation and Reimbursement of Expenses The Board of Directors approved Directors' compensation and reimbursement of expenses for the month of May 2013. 8. Investment Report – May 2013 The Board of Directors received and filed the report as presented. 9. Adoption of Resolution No. 2013 -832 Ordering Publication of Ordinance No. 97 The Board of Directors adopted Resolution No. 2013 -832. 10. Claim No. 13 -00 4 – Ohlaker 11. Refund of Sanitary Assessment Overpayment – 2990 Airway Avenue The Board of Directors rejected the claim. The Board of Directors approved a refund for the previous year assessment 2012 -13 in the amount of $4,509.75. E ND OF C ONSENT C ALEN DAR Director Ooten moved for approval of the Consent Calenda r. Director Perry seconded the motion. T he motion carried 4 -0 -1, with Vice President Scheafer absent. General Manager Carroll suggested that Item 15 be heard prior to Item 12 in the interest of beginning the public hearings at the scheduled time of 6:00 p.m. President Ferryman heard Item 15 at this point in the agenda. 15. FOG Enforcement Appeal at 2590 Newport Blvd Recommendation: That the Board of Directors denies the appeal to reduce the invoice amount of $2,019.62 for Fats Oil Grease (FOG) enforcement. General Manager Carroll introduced the item and provided report details and recommended that the Board deny the appeal to reduce the invoice amount of $2,019.62 . President Ferryman r equested that the owner/appellant, Mr. Taleb, address the Board. Mr. Taleb appealed the clean -up cost invoice for a sewer interceptor that was in imminent danger of causing a sewer system overflow. A packet of information consisting of staff’s evidence was provided in the agenda packet and had previously been provided to Mr. T aleb . General Manager Scott Carroll, Jo s e ph Jenkins of EEC, and Rob Hamers, District Engineer, also testified as to the urgency of the matter, the need to take immediate action, and that the owner, Mr. T aleb , refused to act promp tly to avoid a sanitary sewer overflow (SSO).
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 J UNE 27, 2013 ___________________________________________________________________________________ Mr. T aleb testified as to why he should not have to pay. He submitted three documents in his defense which were made part of the record. He said he did no t believe EEC was representing the District because he has never had a sewer backup. Mr. Taleb did acknowledge that he did not check further to verify EEC is representing the District for FOG enforcement . He also believed he should have had more time to comply. The District witnesses established that the sewage level was rising, that time was of th e essence to avoid an SSO , and the public ’s health was in jeopardy if an SSO occurred on Mr. Taleb’s property. Vice President Scheafer entered the meeting at 6:10 p.m. The Board made inquiries of the persons testifying and determined that there was an imminent danger of an SSO and that the action of District’s contractor and staff was appropriate. However, after consideration of what Mr. T aleb presented, the Board determined to reduce the invoice to absorb District internal costs in the amount of $426.65 , leaving a balance due and payable of $1 ,592.97 . The Board determined that Mr. T aleb could have 30 days to pay the sum. Director Perry moved to reduce Mr. Taleb’s invoice in the amount of $426.65 from $2,019.62, leaving a balance due and payable of $1 ,592.97 within 30 days. Director Schafer seconded the motion, which carried 4 -0 -1, with Vice President Scheafer abstaining. I X. P UBLIC H EARINGS 1 2 . Consideration of Solid Waste Annual Charges for FY 2013 -14 & FY 2014 -15 to be Collected with the General Taxes A. Presentation of Report B. Reconvene Public Hearing C. Close Public Hearing D. Recommendation: That the Board of Directors Approves R esolution No. 2013 -833 Confirming and Adopting the Report and directing Clerk to File with County Auditor. President Ferryman reconvened the public hearing at 6:20 p.m. and requested that District Counsel Burns provide an overview of the public hearing procedures. District Counsel Burns read the Proposition 218 hearing requirements. President Ferryman deferred to General Manager Carroll for a presentation of report. General Manager Carroll provided report details and discussed the five key expense s of the District’s Solid Waste Program and how the annual charge is calculated. Mr. Carroll noted that staff performed a long term rate stabilization analysis and recommended that the Board approve Resolution No. 2013 -833 adopting the proposed solid waste annual rate of $216 or $18.00 a month. There were no additional questions or comments. President Ferryman closed the public hearing at 6:32 p.m.
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 J UNE 27, 2013 ___________________________________________________________________________________ Director Ooten moved to approve Resolution No. 2013 -833. Director Schafer seconded the motion, which carri ed 5 -0. 13. Consideration of Liquid Waste Annual Charges for FY 2013 -14 & FY 2014 -15 to be Collected with the General Taxes A. Presentation of Report B. Reconvene Public Hearing C. Close Public Hearing D. Recommendation: That the Board of Direct ors Approves Resolution No. 2013 -834 Confirming and Adopting the Report and directing Clerk to File with County Auditor. General Manager Carroll provided report details, discussed the proposed liquid waste annual charges, the calculation methodologies of revenue requirement projections, cost of service analysis, and rate design and bill analysis. Mr. Carroll recommended that that the Board approve Resolution No. 2013 -834 adopting the proposed increase of the liquid waste annual rate. President Ferryma n reconvened the public hearing at 6:41 p.m. Mr. Jim Mosher provided public comment regarding the increase of the liquid waste rates. President Ferryman closed the public hearing at 6:44 p.m. Deputy District Clerk Middenway indicated that 11 written p rotests out of 13,039 parcels had been received to date. President Ferryman confirmed that the protest failed. There were no additional questions or comments. Director Schafer moved to approve Resolution No. 2013 -834. Director Ooten seconded the motio n, which carried 5 -0. X. G ENERAL M ANAGER /D ISTRICT C LERK R EPORTS 14. Adopt FY 2013 -14 & 2014 -15 Budget Recommendation: That the Board of Directors approves Resolution No. 2013 -835 adopting the Budget for Fiscal Years 2013 -14 and 2014 -15. General Manag er Carroll provided report details of the proposed bud get of $10,741,860 for FY 2013 -14 and $10,913,940 budget for FY 2014 -15. Mr. Carroll discussed items related to the strategic plan goals that were incorporated into the budget and noted that the budget would be reviewed periodically should changes need to be made. There were no additional questions or comments . Vice President Scheafer moved to approve Resolution No. 2013 -835 adopting the budget for Fiscal
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 J UNE 27, 2013 ___________________________________________________________________________________ Years 2013 -14 and 2014 -15. Director Ooten sec onded the motion, which carried 5 -0. 16. Sewer System Management Plan (SSMP) Self Audit Recommendation: That the Board of Directors: 1. Accepts the SSMP self -audit performed by EEC; and 2. Direct staff to report back with an implementation plan for the minor corrective actions identified in the audit; and 3. Direct staff to bring back the SSMP with amendments for recertification approval. General Manager Carroll deferred to Mr. Joseph Jenkins of EEC for report details . Mr. Jenkins provided an overview of the audit process and discussed the results of the SSMP Audit noting various opportunities for enhancements. Discussion followed regarding the review of the sewer permit process and District Counsel Burns requested that he be involved in the process prior to its approval as he and District Engineer Hamers have been making changes to the process. General Manager Carroll noted that an implementation plan would be brought back to the Board. There were no additional questions or comments and the report was ac cepted. 17. Memorandum of Understanding with the County of Orange - AlertOC Notification System Recommendation: That the Board of Directors authorize the General Manager to enter into a Memorandum of Understanding (MOU) between the County of Orange and Costa Mesa Sanitary District for use of AlertOC, a countywide mass notification system. General Manager Carroll deferred to Ms. Anna Sanchez for report details. Ms. Sanchez provided background on the MOU between the County of Orange and Costa Mesa S anitary District for use of AlertOC, Orange County’s public mass notification system utilized to notify the public of emergency events and actions that should be taken in response to those events. There were no questions or comments. Director Ooten move d to authorize the General Manager to enter into a Memorandum of Understanding (MOU) between the County of Orange and Costa Mesa Sanitary District for use of AlertOC. Vice President Scheafer seconded the motion, which carried 5 -0. 18. Rewarding Ideas Pro gram Recommendation: That the Board of Directors approves rewarding District employees Steve Cano, Joel Ortiz and Alex Arreola $75.00 each, a total of $225.00 for their idea to enhance safety on the sewer combination truck. General Manager Carroll prov ided details of District employees Steve Cano, Joel Ortiz and Alex
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 J UNE 27, 2013 ___________________________________________________________________________________ Arreola’s idea to enhance safety on the sewer combination truck. There were no questions or comments. Director Ooten moved to approve rewarding District employees Steve Cano, Joel Ortiz and Alex Arreola $75.00 each, a total of $225.00 for their idea to enhance safety on the sewer combination truck. Vice President Scheafer seconded the motion, which carried 5 -0. 19. Contract Administration for Project # 197 – System Wide Sewer Reconstru ction – Phase III Recommendation: That the Board of Directors receive and file this report. The General Manager is approving the contract administration proposal from Robin B. Hamers & Associates (RBH) for $17,269. RBH will perform said services under h is existing contract with the District. General Manager Carroll provided report details. There were no questions or comments and the report was received and filed. 20. CR&R Audit Implementation Plan Recommendation: That the Board of Directors a pproves the CR&R Audit Implementation Plan. General Manager Carroll deferred to Mr. Javier Ochiqui for report details. Mr. Ochiqui provided report details and discussed the implementation plan to address the unclear areas mentioned in the CR&R audit report. Director Perry questioned if the implementation plan could be accomplished by the dates that had been set. Mr. Ochiqui responded to Director Perry’s question and noted that the set goals are achievable. There were no additional questions or comments. Director Sch afer moved to approve the CR&R Audit implementation plan. Vice President Scheafer seconded the motion, which carried 5 -0. XI. OPERATIONS COMMITTEE 21 . Tuesday June 18, 2013, 9:30 a.m. - (Vice President Scheafer and Director Oot en) Recommendation: That the Board of Directors accepts and files report. Vice President Scheafer reported on the presentation by Mr. Acker of D’mand Systems. There were no questions or comments and the report was received. XII. ENGINEER’S REPORTS
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 J UNE 27, 2013 ___________________________________________________________________________________ 22. Project Status Report Recommendation: That the Board of Directors receive and file the report. There were no questions or comments and the report was received and filed. 23. Encroachment Agreement at 1661 Indus Street, Newport Beach Re commendation: That the Board of Directors approves the agreement. District Engineer Hamers provided report details of the E nc roachment A greement to satisfy the property owner ’s proposal to cantilever a removable deck over the slope, sewer, and easement t o better utilize his backyard. There were no questions or comments. Director Ooten moved to approve the encroachment agreement at 1661 Indus Street, Newport Beach. Vice President Scheafer seconded the motion, which carried 5 -0. 24. Project #197 – S ystem Wide Sewer Reconstruction – Phase III – Awarding Contract Recommendation: That the Board of Directors: 1. Award a contract to the lowest responsible bidder, Charles King Co., Inc., of Signal Hill, in the amount of $228,700.00. 2. Approve a 10% continge ncy budget of $22,870. District Engineer Hamers noted that this item is standard procedure recommending award of the contract to the lowest bidder, Charles King Co., Inc. Mr. Hamers noted that the work would be completed within 90 days. There were no ad ditional questions or comments. Director Schafer approved staff’s recommendation as stated. Director Perry seconded the motion, which carried 5 -0. XIII. TREASURER’S REPORTS 25. Statement of Investment Policy for Fiscal Year 2013 -14 Recommendation: That the Board of Directors adopt Resolution No. 2013 -836 approving the Policy and delegating the investment function to the District Treasurer for Fiscal Year 20 13 -14 . District Treasurer Davis provided details of the proposed Investme nt Policy for FY 2013 -14 and noted that the proposed resolution approves the policy and delegates the investment function to the District Treasurer. Director Ooten moved to adopt Resolution No. 2013 -836 approving the Policy and delegating the investment f unction to the District Treasurer for Fiscal Year 2013 -14. Director Schafer seconded the motion, which carried 5 -0. XIV. ATTORNEY’S REPORTS 26. Dissolving Operations Committee and Instituting Study Session Special Meeting
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 J UNE 27, 2013 ___________________________________________________________________________________ Procedures That the Boa rd of Directors adopts the following: 1. Resolution No. 2013 -838 dissolving the Operations Committee and directing that periodic study sessions be held of the full Board. 2. Ordinance No. 98 amending Operations Code Section 3.01.110 pertaining to procedures for placing an item on the agenda. District Counsel Burns provided details of the proposed resolution and ordinance dissolving the Operations Committee and instituting a District procedure to hold special meetings as study sessions. Mr. Burns noted that the ordinance will revise the procedure for placing matters on the agenda. Discussion followed regarding the structure of the study sessions, the frequency, day and times for the meetings to be held, and method by which items are placed on the agenda. Vice President Scheafer recommended that the content of the agenda be discussed at the first study session. General Manager Carroll clarified that study sessions should focus on sewer and trash and will continue to be held on the third Tuesday at 9:30 a.m. T he Board concurred. There were no additional questions or comments. Director Schafer moved to adopt Resolution No. 2013 -838 dissolving the Operations Committee and directing that periodic study sessions be held of the full Board. Director Ooten seconde d the motion, which carried 5 -0. Director Schafer moved to adopt Ordinance No. 98 amending Operations Code Section 3.01.110 pertaining to procedures for placing an item on the agenda. Director Ooten seconded the motion, which carried 5 -0. XV. LOCAL MEET INGS A. Orange County Sanitation District (OCSD) – (President Ferryman) Recommendation: That the Board of Directors accepts oral report. President Ferryman reported that the OCSD Board elected Mr. Troy Edgar as Chair and John Anderson as Vice Cha ir, reported on a discussion regarding union negotiati ons , and a retirement party for retired OCSD General Manager, Jim Ruth . B. Santa Ana River Flood Protection Agency (SARFPA) – (Secretary Perry) Recommendation: That the Board of Directors accepts oral report. Director Perry reported on flood zone policies, the anticipated completion of
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 J UNE 27 , 2013 ______________________________________________________________________ the Santa Ana Regional Interceptor (SARI ) line by the end of 2013 , and the approval of the SARFPA budget . President Ferryman reported that there was a vote for th e Executive Board. C. Independent Special Districts of Orange County (ISDOC) – (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. Vice President Scheafer reported that ISDOC may contact Genera l Manager C arroll regarding AC8, S BA11 and comments on the Grand Jury report. Vice President Scheafer also r eported on a presentation on the affordable health care act and how it affects the public records act. Vice President Scheafer noted that Derek Johnson of the Orange County Transportation Authority (OCTA) will speak at the August 29 th quarterly meeting . D. California Special Districts Association (CSDA) Recommendation: That the Board of Directors accepts oral report. Vice President Scheafer reported on his a ttendance of the Membership Committee and Education Committee meetings and noted that extensive discussion was held regarding the upcoming CSDA Annual Conference, General Manager’s Summit, and Clerk of the Board Conference. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors accepts oral report. Nothing to report 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 reported on her attendance of the following meetings: Chamber of Commerce Legislative Committee , Water Advisory Committee of Orange County (WACO ), Local Agency Formation Commission (LAFC O ), Costa Mesa City Council, CMSD Board and ISDOC luncheon. Director Ooten reported on his attendance of the Chamber of Commerce breakfast.
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 J UNE 27 , 2013 ______________________________________________________________________ XVI. OLD BUSINESS 27. Special District Risk Management Authority (SDRMA) 2013 Board of Directors Election Recommendation: That the Board of Directors adopts Election Resolution No. 2013 -837 for the selection of up to four (4) candidates to the SDRMA Board of Directors. General Manager Carroll introduced the item and noted that up to four candidates could be selected for election to the SDRMA 2013 Board of Directors. Vice President Scheafer recommended adoption of Resolution No. 201 3 -837 electing Muril Clift, Mike Scheafer, Tim Unruh and David Aranda to the SDRMA Board of Directors. Director Schafer moved for approval of Vice President Scheafer’s recommendation. Director Ooten seconded the motion, which carried 5 -0. XVII. NEW BUSINESS 28. CSDA Board of Directors Elections Recommendation: That the Board of Directors approves casting a ballot for Ope n Seat B of Region 6 for the California Special Districts Association Board of Directors. General Manager Carroll introduced the item. Vice President Scheafer moved to cast the ballot for Mr. Bill Nelson for the CSDA Board of Directors Open Seat B. Dire ctor Ooten seconded the motion, which carried 5 -0. 29. Nomination of Director Schafer to the CSDA Finance Corporation Board Recommendation: That the Board of Directors approves Director Arlene Schafer to run for the open seat on the CSDA Finance Corporation Board. General Manager Carroll reported that all supporting documentation for all persons interested in applying for the open seat on the CSDA Finance Corporation Board ne eds to be submitted by July 15 , which justified that this item be discuss ed at this time . Director Schafer noted that she had served on the CSDA Finance Corporation Board before and would like the opportunity to serve on the board again. Director Ooten moved to nominate Director Schafer to the CSDA Finance Corpora tion Board. Director Perry seconded the motion, which carried 5 -0.
C OSTA M ESA S ANITARY D ISTRICT P AGE 12 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD J UNE 27 , 2013 ______________________________________________________________________ XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Vice President Scheafer reported that the City of Costa Mesa 60 th Anniversary events begin Friday, June 28 and discussed scavenging in his neighborhood. Director Ooten discussed the need for inspectors to provide identification when in the field conducting inspections, his receipt of a request for financial donation from a foundation, and requested that a discussion on the Board’s health b enefits be placed on an upcoming meeting agenda. Discussion followed regarding sponsorships and a policy to ensure that sponsorship s tie into the function of the District. President Ferryman requested that the topic of sponsorships be placed on an upco ming meeting agenda for discussion. XIX. ADJOURNMENT President Ferryman adjourned the meeting at 8:1 0 p.m. to the next regular meeting of the Costa Mesa Sanitary District Board of Directors on July 25 , 2013 at 5:30 p.m. in the District’s Board Room, 628 W. 19 th Street. _________________________ _________________________ Art Perry James Ferryman Secretary President