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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 27, 2013
I. CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
June 27, 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 Ooten led the Invocation.
IV. ROLL CALL DIRECTORS PRESENT: James Ferryman, Robert Ooten, Art Perry,
Arlene Schafer
DIRECTORS ABSENT: Mike Scheafer(entered into the meeting at
6:10 p.m.)
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: Joseph Jenkins, EEC; Dean Ruffridge,
CR&R; Lawrence Jones, CR&R; Jim
Mosher, Resident; Tom Taleb, Business
Owner
V. CEREMONIAL MATTERS AND PRESENTATIONS — President Ferryman read a proclamation from CMSD
congratulating the City of Costa Mesa on its 60th anniversary.
VI. ANNOUNCEMENT OF LATE COMMUNICATIONS - General Manager Carroll indicated that staff received
information froth the California Special Districts Association (CSDA) after the agenda was posted
regarding a vacant seat on CSDA's Finance Corporation Board and Director 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 which arose after the agenda was posted and needs to be
0
Protecting our community's health and the environment by providing solid waste and sewer collection services.
www.crosdca.gov
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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heard.
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 be 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. PUBLIC COMMENTS
President Ferryman invited members of the public to address the Board.
Mr. Jim Mosher provided public comment regarding reimbursement to the District from 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, President Ferryman closed public comments.
VIII. CONSENT CALENDAR
1. Operations Committee Minutes of The Operations Committee. Minutes of May
May 21, 2013 21, 2013, was approved as presented.
2. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of May 23, 2013 Minutes of May 23, 2013, was approved as
presented.
3. Board of Directors Special Meeting The Board of Directors Special Meeting
Minutes of May 28, 2013 Minutes of May 28, 2013, was approved as
presented.
4. 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 May 2013.
5. 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 May 2013.
6. Adoption of a Warrant Resolution No. The Board of Directors approved adoption
2013-12 Approving District Warrant of Warrant Resolution No. CMSD 2013-12
Registers approving.District warrant registers for the
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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month of May in the amount of$920,037.15.
7. Directors' Compensation and The Board of Directors approved Directors'
Reimbursement of Expenses 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 The Board of Directors adopted Resolution
Ordering Publication of Ordinance No. 2013-832.
No. 97
10.Claim No. 13-004 — Ohlaker The Board of Directors rejected the claim.
11.Refund of Sanitary Assessment The Board of Directors approved a refund
Overpayment — 2990 Airway Avenue for the previous year assessment 2012-13
in the amount of$4,509.75.
END OF CONSENT CALENDAR
Director Ooten moved for approval of the Consent Calendar. Director Perry seconded the motion.
The 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 requested 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. Taleb.
General Manager Scott Carroll, Joseph 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. Taleb, refused
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to act promptly to avoid a sanitary sewer overflow (SSO).
Mr. Taleb 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 not 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 the 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. Taleb 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. Taleb 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.
IX. PUBLIC HEARINGS
12. 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 Resolution 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 expenses 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.
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President Ferryman closed the public hearing at 6:32 p.m.
Director Ooten moved to approve Resolution No. 2013-833. Director Schafer seconded the motion, which
carried 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 Directors 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 Ferryman 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 protests 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 motion,
which carried 5-0.
X. GENERAL MANAGER/DISTRICT CLERK REPORTS
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 Manager Carroll provided report details of the proposed budget 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.
•
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Vice President Scheafer moved to approve Resolution No. 2013-835 adopting the budget for Fiscal
Years 2013-14 and 2014-15. Director Ooten seconded 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 accepted.
17. Memorandum of Understanding with the County of Orange - AIertOC 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 AIertOC, 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
Sanitary District for use of AIertOC, 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 moved 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
AIertOC. Vice President Scheafer seconded the motion, which carried 5-0.
18. Rewarding Ideas Program
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.
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General Manager Carroll provided details of District employees Steve Cano, Joel Ortiz and Alex
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 Reconstruction — 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 its 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 approves 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 Schafer 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 Ooten)
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.
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XII. ENGINEER'S REPORTS
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
Recommendation: That the Board of Directors approves the agreement.
District Engineer Hamers provided report details of the Encroachment Agreement to satisfy the
property owner's proposal to cantilever a removable deck over the slope, sewer, and easement to
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 — System 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% contingency 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 additional questions or comments.
Director Schafer moved to approve staffs 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
2013-14.
District Treasurer' Davis provided details of the proposed Investment 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 function to the District Treasurer for Fiscal Year 2013-14. Director Schafer seconded the
motion, which carried 5-0.
XIV. ATTORNEY'S REPORTS
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26. Dissolving Operations Committee and Instituting Study Session Special Meeting
Procedures
Recommendation: That the Board 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.
The 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 seconded 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 MEETINGS
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 Chair, reported on a discussion
regarding union negotiations, 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.
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Director Perry reported on flood zone policies, the anticipated completion of
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 the 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 General Manager
Carroll regarding AC8, SBA11 and comments on the Grand Jury report. Vice
President Scheafer also reported 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 29th quarterly meeting.
D. California Special Districts Association (CSDA)
Recommendation: That the Board of Directors accepts oral report.
Vice President Scheafer reported on his attendance 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 (LAFCO), Costa Mesa
City Council, CMSD Board and ISDOC luncheon.
Director Ooten reported on his attendance of the Chamber of Commerce
breakfast.
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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. 2013-837 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
Open 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. Director 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
needs to be submitted by July 15, which justified that this item be discussed 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
Corporation Board. Director Perry seconded the motion, which carried 5-0.
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XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Vice President Scheafer reported that the City of Costa Mesa 60th 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 benefits be placed on
an upcoming meeting agenda.
Discussion followed regarding sponsorships and a policy to ensure that sponsorships tie
into the function of the District.
President Ferryman requested that the topic of sponsorships be placed on an upcoming
meeting agenda for discussion.
XIX. ADJOURNMENT
President Ferryman adjourned the meeting at 8:10 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. 19th Street.
Art Perry J. ► es Ferryman
Secretary
esident