Minutes - Board - 2013-10-24ITEM NO. 05
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 24, 2013
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
October 24, 2013 at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF
ALLEGIANCE
INVOCATION
ROLL CALL DIRECTORS PRESENT:
President Ferryman led the Pledge of
Allegiance.
Vice President Scheafer led the Invocation.
James Ferryman, Mike Scheafer, Robert
Ooten, Art Perry, Arlene Schafer
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Anna
Sanchez, Administrative Service Manager;
Robin B. Hamers, District Engineer; Alan
Burns, District Counsel; Javier Ochiqui,
Management Analyst; Stacey Cuevas,
Finance Manager; Noelani Middenway,
Deputy Clerk of the District
OTHERS PRESENT: Jim Mosher, Resident; Marcus Lee,
Resident; Dean Ruffridge, CR &R;
Lawrence Jones, CR &R
CEREMONIAL MATTERS AND PRESENTATIONS — None
ANNOUNCEMENT OF LATE COMMUNICATIONS — None
PUBLIC COMMENTS
Mr. Marcus Lee reported recently moving into the City and wondered how the
government structure works relative to CMSD and the Orange County Sanitation
District.
District Counsel Burns noted that under the Brown Act the Board cannot discuss the
matter since it is not on the agenda.
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It was noted that complaints are received from residents and that CMSD would be more
than happy to report those complaints to OCSD.
Staff will follow up with the Mr. Lee regarding the matter.
Mr. Jim Mosher commented on three Consent Calendar items including a minor
correction to the minutes listed under Item No. 2. Relative to Item No 9, he addressed
the policy for retaining correspondence and made corrections to same. He addressed
email as not being part of the policy and expressed concerns with the matter. In
addition, he commented on Item No. 10 and suggested clarifying changes to it or
indicating there are none.
I. CONSENT CALENDAR
1. Board of Directors Special The Board of Directors Special Meeting
Meeting Minutes
of
Minutes of September 9, 2013 were
September 9, 2013
approved and filed.
2. Board of Directors
Study
The Board of Directors Study Session
Session Minutes
of
Minutes of September 9, 2013 were
September 9, 2013
approved and filed.
3. Board of Directors
Special
The Board of Directors Special Meeting
Meeting Minutes
of
Minutes of September 23, 2013 were
September 23, 2013
approved and filed.
4. Board of Directors Regular
The Board of Directors Regular
Meeting Minutes
of
Meeting Minutes of September 26,
September 26, 2013
2013 were approved and filed.
5. Occupancy Report
and
The Board of Directors approved the
payment to Costa
Mesa
occupancy report and payment to Costa
Disposal
Mesa Disposal for the month of September
2013.
6. Contract Payment
to CR
The Board of Directors approved the
Transfer for Recycling &
Contract Payment to CR Transfer for
Disposal Services
Recycling & Disposal Services for the
month of September 2013.
7. Adoption of a Warrant The Board of Directors adopted Warrant
Resolution No. CMSD 2013- Resolution No. CMSD 2013 -4 approving
4 Approving District Warrant District warrants for the month of
Registers September 2013 in the amount of
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$650,725.20.
8. Directors' Compensation and
Reimbursement of Expenses
9. Adopt Resolution No. 2013-
844 Amending the District's
Records Retention Schedule
10. Adopt Resolution No. 2013-
845 Amending the District's
Conflict of Interest Code
The Board of Directors approved
Directors' compensation and
reimbursement of expenses for the
month of September 2013.
The Board of Directors adopted Resolution
No. 2013 -844 amending the District's
records retention schedule.
Item pulled for separate discussion and
consideration.
Director Schafer moved for approval of the Consent Calendar except for the item 10
that was pulled for a separate vote. Vice President Scheafer seconded the motion,
which carried 5 -0.
Discussion followed regarding Item No. 10 and it was noted that it would be approved
subject to clarification from the District Counsel regarding substantive changes.
END OF CONSENT CALENDAR
PUBLIC HEARINGS - None
GENERAL MANAGER/DISTRICT CLERK REPORTS
11. Reschedule November 19, 2013 Board of Directors Study Session — Oral Report
Recommendation: That the Board of Directors cancels or reschedule the
November 19, 2013 study session because it falls on the same week of the
regular Board of Directors meeting.
The Board of Directors concurred to reschedule the November Study Session to
Tuesday, November 12.
12. Reschedule December 17, 2013 Board of Directors Study Session — Oral Report
Recommendation: That the Board of Directors cancels or reschedule the
December 17, 2013 study session because if falls on the same week of the
regular Board of Directors meeting.
The Board concurred to reschedule the December Study Session to Tuesday,
December 10, 2013.
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13. Lift Station Odor Control Plan
Recommendation: That the Board of Directors receive and file this report.
Director Ooten commented on calls received with complaints of odors and felt that they
could be dismissed quickly. He recommended documenting the calls in order to
respond in an expedited manner and not waste staff time.
Vice President Scheafer noted that CMSD is proactive in addressing the matter.
The Board of Directors received and filed the report.
14. Smart Covers — Ultrasound Sensors for Detecting High Water in Sewer System
Recommendation: That the Board of Directors approves appropriating $26,985
from the undesignated unreserved Liquid Waste Fund to the Capital Outlay
budget for procuring and installing six smart covers.
General Manager Scott Carroll presented t
October 15, 2013 study session in which the
for approval consideration.
ie report noting prior consideration at the
Board directed staff to bring this item back
Members of the Board agreed as to the importance of the matter.
Director Perry moved to approve appropriating $26,985 from the undesignated
unreserved Liquid Waste Fund to the Capital Outlay budget for procuring and installing
six smart covers. Director Ooten seconded the motion. The motion carried 5 -0.
15. Quarterly Budget Report
Recommendation: That the Board of Directors receive and file this report.
Finance Manager Stacey Cuevas provided details of the report addressing the Solid
Waste Fund, expected savings in personnel and special projects, the Asset
Management Fund, offsets from budget in full -time and part-time salaries, Year -End
Balance and savings in PERS costs.
Director Ooten requested information regarding the Engineer's estimate, the bid and
start and completion dates of construction projects in the Capital Improvement Report,
going forward.
Brief discussion followed regarding the balance in the Hazardous Waste Fund and the
possibility of the Police Department collecting pharmaceuticals.
The Board of Directors received and filed the report.
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16. Operating and CIP Carry Forward Request - FY 2013 -14
Recommendation: That the Board of Directors approves the carry forward
appropriations from fiscal year 2012 -13 in the following amounts
1. Operations $97,222.02
2. Capital Improvement Projects $3,652,884
Finance Manager Cuevas addressed Capital Improvement Projects not completed in
the previous fiscal year, noting that by their very nature, they can often span over
several fiscal years. She noted unspent funds for both Operations and Capital
Improvements Projects, addressed each, and made an adjustment regarding the correct
balance in Fund 196.
Director Ooten moved to approve the carry forward appropriations from fiscal year
2013 -2013 from Operations in the amount of $97,222.02 and from Capital Improvement
Projects in the amount of $3,652.884. Vice President Scheafer seconded the motion.
The motion carried 5 -0.
ENGINEER'S REPORTS
17. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer Robin B. Harriers introduced the report and offered to respond to
questions.
The Board of Directors received and filed the report.
18. Grant of Easement to Costa Mesa Sanitary District for a Standby Diesel
Generator at Canyon Lift Station — Project #196B
Recommendation: That the Board of Directors approves and executes the
easement agreement.
District Engineer Harriers presented details of the report and stated that an easement
with two property owners has been successfully negotiated and that an easement
agreement has been signed. He addressed costs, terms and reported that the project
plan and specifications are currently out to bid with the bid opening on November 5,
2013. He added that there has been trouble with Southern California Edison regarding
the subject pumping station and that the item will rectify same.
Discussion followed regarding the payment due date and Mr. Harriers reported that the
5 -year term will be effective as of the date of the agreement, which will be tonight,
depending on the Board's actions at this time.
Mr. Harriers added this will be a binding agreement and binding on any successors of
the property and runs with the land.
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Director Ooten moved to approve and execute the easement agreement. Director Perry
seconded the motion. The motion carried 5 -0.
19. Addendum No. 3 to National Plant Services Agreement for Annual Sewer
Mainline Cleaning
Recommendation: That the Board of Directors approves Addendum No. 3 to
National Plant Services Agreement in the amount of $123,891.02
District Engineer Hamers presented details of the report noting that the program was
revised when the District acquired its new vector truck. He addressed yearly savings
and reported that the addendum is for National Plant Services' share of the footage and
that CMSD crew has started the cleaning for this fiscal year.
General Manager Carroll reported the truck is currently out for repair but recommended
approve the matter, nonetheless. He added that there is the possibility that the truck
will be out for some time and that another amendment may be brought to the Board for
National Plant Services to do the work that CMSD is supposed to do.
It was noted that the truck is still under warranty and that the contract's term is one year.
Cleaning must be done by June 30, 2014.
Director Ooten commented on the contract and the amount of CCTV required. He
hoped that in the future a GIS coordinate on the manholes to be plugged and sealed be
provided and have staff check that the work has been done.
Director Perry moved to approve Addendum No. 3 to National Plant Services
Agreement in the amount of $123,891.02. Vice President Scheafer seconded the
motion. The motion carried 5 -0.
TREASURER'S REPORT
20. Investment Report
Recommendation: That the Board of Directors approves the Investment Report
for the month September 2013.
General Manager Carroll reported that the District Treasurer was not available to attend
the meeting and therefore, presented the report.
He reviewed the CMSD portfolio performance and investment rates.
Vice President Scheafer moved to approve the Investment Report for the month of
September 2013. Director Perry seconded the motion. The motion carried 5 -0.
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ATTORNEY'S REPORT
21. Agreement with BHI Management Consulting
Recommendation: That the Board of Directors approves the agreement with
BHI Management Consulting to assess District communications.
District Counsel Alan Burns presented details of the report noting it was placed on the
agenda at the request of President Ferryman for the Board's approval. The intent is to
improve communications between the Board, CMSD staff and outside persons who
serve as officers from the District.
Discussion followed regarding inclusion of employment issues, improving the
communications process and the need for legal interpretations of matters. Vice
President Scheafer hoped that a legal component would be included in the scope
relative to employment issues and felt that BHI Management Consulting does not have
that expertise.
President Ferryman felt that BHI Management Consulting is the right vendor for the job.
Ensuing discussion pertained to the contract timeframe.
Director Schafer stated she feels confident since BHI has gone through the process
previously with CMSD.
Discussion followed the qualifications of the firm and the contract timeframe and scope
President Ferryman opened public comments.
Jim Mosher stated he does not understand what problem the matter is addressing and
commented positively on the General Manager's ability to communicate.
President Ferryman closed public comments.
Vice President Scheafer indicated he will not support the motion, adding that a legal
component should be included.
Director Schafer approved the agreement with BHI Management Consulting to assess
District communications. Director Perry seconded the motion. The motion carried 4 -1,
with Vice President Scheafer, opposed.
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LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (President Ferryman)
Recommendation: That the Board of Directors accepts oral report.
President Ferryman reported attending the recent meeting and that OCSD is
currently conducting various audits. Legislation will be introduced soon to allow
Yorba Linda Water District to have a seat on the Board, replacing the City of Yorba
Linda. Additionally, he briefly addressed their negotiation with the union and noted
they are encouraging.
District Counsel Burns added that the Orange County Water District is close to
negotiating a deal with the Yorba Linda Water District, the City of Anaheim and the
Irvine Ranch Water District.
The Board of Directors accepted the oral report.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Secretary
Perry)
Recommendation: That the Board of Directors accepts oral report.
No report was provided as SARFPA has not met recently.
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 met on October 8, 2013, and
discussed approval of the By -laws and comments were received regarding changes
to the By -laws. He added that focus of discussions related to the Orange County
Water District and Mesa Water District noting that both sent letters in opposition to
an appointed Board Member serving on the Executive Committee.
The Board of Directors accepted the oral report.
D, California Special Districts Association (CSDA)
Recommendation: That the Board of Directors accepts oral report.
Vice President Scheafer reported there was no recent meeting but referenced a
questionnaire regarding an upcoming conference. He encouraged Board Members
to respond as soon as possible.
The Board of Directors accepted the oral report.
E. California Association of Sanitation Agencies (CASA)
Recommendation: That the Board of Directors accepts oral report.
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No report was provided as SARFPA has not met recently.
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.
President Ferryman reported attending the Ground Water Replenishment Committee
meeting and received a report regarding being behind on the schedule.
Director Ooten reported attending the OCSD Strategic Planning workshop where
discussions were held regarding initiatives within the plan. He reported a white paper
on odor control and addressed local sewer transfers. He referenced notes from the
CSDA conference in Monterey that he provided to the Board and staff.
General Manager Carroll was congratulated for receiving the General Manager of the
Year Award.
Director Schafer reported attending the ISDOC meeting and that Joan Finnegan is still
out. Discussions focused on the budget amount and speakers for upcoming meetings.
Additionally, she reported attending a recent Chamber of Commerce meeting, a
meeting of WACO and the CSDA conference in Monterrey.
The Board of Directors accepted the oral reports.
OLD BUSINESS - None
NEW BUSINESS - None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Vice President Scheafer announced the upcoming ISDOC quarterly meeting on October
31, 2013 at 11:30 a.m. He added that he will be attending his first SDR meeting and will
provide an update at an upcoming Board meeting.
Director Schafer commented on positively on Community meetings and noted that logo
concepts will be provided to the Board for review.
CLOSED SESSION — 6:42 p.m.
22. August 31 2013 Sanitary Sewer Overflows — Oral Report
To discuss anticipated litigation in the matter of the Back Bay spill occurring on or
about August 31, 2013, and any attempt to levy administrative fines arising there
from pursuant to Government Code Section 54956.9(b).
RECONVENE TO OPEN SESSION — 6:57 p.m.
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REPORT ON CLOSED SESSION ACTIONS
President Ferryman indicated that no reportable action had been taken during closed
session.
ADJOURNMENT
There being no further business to come before the Board, President Ferryman
adjourned the meeting at 6:57 p.m. to the next regular meeting of the Costa Mesa
Sanitary District Board of Directors on November 21, 2013 at 5:30 p.m. in the District's
Board Room, 628 W. 19th Street.
AA
Art Perry
Secretary
James Ferryman
President