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03 - Minutes Regular Board Meeting 2014-01-23 FINAL DRAFT ITEM NO. 03 CMSD OSTA ESA ANITARY ISTRICT MBDRM INUTES OF OARD OF IRECTORS EGULAR EETING J23,2014 ANUARY ______________________________________________________________________ COThe Boardof Directors of the Costa Mesa ALL TO RDER Sanitary District met in study sessionon January 23, 2014at 5:30P.M. at 1845 Park Avenue, Costa Mesa. P President Ferryman led the Pledge of LEDGE OF A Allegiance. LLEGIANCE I NVOCATION Vice President Scheafer led the Invocation. RCDP: James Ferryman, Robert Ooten,Art Perry, OLL ALLIRECTORS RESENT Arlene Schafer, Mike Scheafer DA: None IRECTORS BSENT SP: Scott Carroll, General Manager;Colin Burns, TAFF RESENT Deputy District Counsel; Robin Hamers, District Engineer; Noelani Middenway, District Clerk;Marc Davis, District Treasurer; Wendy Davis, Interim Finance Manager OP: Nitin Patel, White Nelson Diehl Evans, LLP, THERS RESENT Dean Ruffridge, CR&R; Mike Silva, CR&R CMP- None EREMONIAL ATTERS AND RESENTATIONS ALC- General Manager Carroll indicated that Mr. NNOUNCEMENT OF ATE OMMUNICATIONS Jim Mosher had submitted written public comments and they were provided to the Board for review. PC- President Ferryman invited members of the public to address the UBLIC OMMENTS Board. CMSD P2 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ Seeing no one, President Ferryman closed public comments. CC ONSENT ALENDAR 1. Board of Directors Special Meeting The Board of Directors Special Meeting Minutes of December 9, 2013 Minutes of December 9, 2013, was approved as presented. 2. Board of Directors Study Session The Board of Directors Study Session Meeting Minutes of December 10, Meeting Minutes of December 10, 2013, 2013 was approved as presented. 3. Board of Directors Regular Meeting This item was pulled for discussion. Minutes of December 19, 2013 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 December 2013. 5. Contract Payment to CR Transfer The Board of Directors approved payment for Recycling and Disposal Services to CR Transfer for recycling and disposal services for the month of December 2013. 6. Adoption of a Warrant Resolution The Board of Directors approved adoption No. CMSD 2014-7 Approving of Warrant Resolution No. CMSD 2014-7 District Warrant Registers Approving District Warrant Registers for the month of December 2013 in the amount of $1,030,150.26. 7. The Board of Directors approved Directors' Reimbursement of Expenses compensation and reimbursement of expenses for the month of December 2013. 8. Fiscal Year 2011-12 Annual The Board of Directors received and filed Compliance Report for the Fiscal Year 2011-12 Annual Requirements of Government Code Compliance Report for Requirements of Section 66013 for Capacity Government Code Section 66013 for Charges Capacity Charges as presented. 9. Fiscal Year 2012-13 Annual The Board of Directors received and filed Compliance Report for the Fiscal Year 2012-13 Annual Requirements of Government Code Compliance Report for Requirements of CMSD P3 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ Section 66013 for Capacity Government Code Section 66013 for Charges Capacity Charges as presented. 10. Annual Report of Expenses Fiscal The Board of Directors accepted the Year 2012-13 Annual Report of Expenses for Fiscal Year 2012-13 as presented. ECC ND OF ONSENT ALENDAR Vice President Scheafer moved for approval of the Consent Calendar with the exception of Item 3 that was pulled for discussion. Director Schafer seconded the motion. MOTIONCARRIEDBYTHEFOLLOWINGVOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None Abstain: None Regarding Item No. 3, Director Ooten noted a typographical error and clarified that there are 20 pump stations, not 27 pump stations as the minutes indicated. Director Ooten moved to approve Item No. 3. Director Schafer seconded the motion. MOTIONCARRIEDBYTHEFOLLOWINGVOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None Abstain: None PH None UBLIC EARINGS GMR ENERAL ANAGERS EPORTS Financial Statements for Fiscal Year Ended June 30, 2013 11. Recommendation: That the Board of Directors receive and file the Government Auditing Standards for the fiscal year ended June 30, 2013. General Manager Carroll introduced the item and deferred to Mr. Marc Davis, District Treasurer, to provide report details. CMSD P4 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ Mr. Davis ce with Government Auditing Standards fiscal year ended June 30, 2013 has been presented to the Board and introduced Mr. Nitin Patel of White Nelson Diehl Evans, LLP who provided details of the audit results of the year. Mr. Patel presented the audit results and reviewed the sections of the audit opinion. Mr. Patel noted that there were no difficulties in performing the audit, the adjustments made to the material were not material in the financial reporting process, and there were no disagreements with management. There were no questions or comments and the report was received. 12. Environmental Review Organics Recycling Program Recommendation: That the Board of Directors concurs with finding that the activity is to CEQA Guidelines Section 15038. General Manager Carroll introduced the item and deferred to Mr. Robin Hamers, District Engineer, to report the environmental review findings. District Engineer Hamers reported on the findings of the environmental review of the proposed collection and transportation of the organics and noted that the findings is an not an opinion for or against the organics recycling program. Mr. Hamers noted that there is no change in the tonnage being collected by the District; however, the existing waste collection is being redistributed in order for organics to be processed at C discussed the creation of renewable natural gas (RNG) as the byproduct of the organics recycling process and noted that RNG will be utilized by the CR&R fleet; highlighted that 10,000 tons per year would be diverted from the landfill and recycled at the Perris plant, which would move the District closer to reaching its goal of reaching a 75% diversion rate. Director Ooten noted that the 10,000 tons of waste being diverted to the Perris facility will reduce the amount of Methane produced in the landfill, thus creating a positive impact on the environment. Vice President Scheafer requested clarification of the timeline for filing the CEQA exemption and asked if denial of the CEQA exemption would impact the organics recycling program from moving forward. mendation is that the Board find under CEQA that the organics recycling program is not a project under CEQA due to the CMSD P5 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ minimal changes to the environment that would occur with the additional truck and additional mileage. Mr. Hamers indicated that if the filing for CEQA exemption is denied, program is not a project. Mr. Colin Burns, Deputy District Counsel, noted that he agreed with the analysis that District Engineer Hamers had provided to the Board. President Ferryman invited members of the public to address the Board regarding this item. Mr. Jim Mosher provided public comment and noted a discrepancy in the stated additional mileage to be incurred. Vice President Sc seconded the motion. Mr. Phil Morello, Costa Mesa rental property owner and resident, spoke in opposition of the impacts that the organics recycling program will have on the streets. Ms. Gail Carson Hedrick, Costa Mesa resident, spoke in favor of the organics recycling program. Ms. Beth Refakes, Costa Mesa resident, spoke in favor of holding additional Town Hall meetings and expressed concern regarding the organics recycling program. President Ferryman invited Mr. Dean Ruffridge, CR&R, to respond to public comment. Mr. Ruffridge addressed the concern of the increased number of carts, explained the breakdown of the additional miles incurred, and commented on the concerns of odors and attracting animals and transients. the District services properties with more than four units on a case by case basis and is reviewed by the District, the City, and CR&R. General Manager Carroll noted that 18% of the 21,000 residences that the District services are multi-family units of four units and that the District services a small number of more than four units. Director Perry expressed support of holding additional Town Hall meetings. General Manager Carroll confirmed that a minimum of three additional Town Hall meetings would be held regarding the organics recycling program. CMSD P6 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ MOTIONCARRIEDBYTHEFOLLOWINGVOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None Abstain: None nd 13. CR&R Environmental Services 2 Amendment to Exclusive Franchise Agreement Recommendations from Performance Audit and Organics Recycling Program Recommendation: That the Board of Directors considers one of the following: nd 1. Approves the 2 Amendment to the exclusive franchise agreement with CR&R Environmental Services; or 2. Direct staff to organize additional Town Hall meetings and report back to the Board on February 27, 2014. General Manager Carroll noted that a detailed report of the performance audit results had been provided to the Board; discussed the organics recycling program and addressed concerns regarding odors from the organics; discussed the $5,000 annual cost increase and options to fund the increase in cost; noted that the rate for the anaerobic digestive (AD) facility is the lowest rate offered by CR&R and it is guaranteed that if another agency were to receive a lower rate that the District would receive the same low rate; noted that residents can opt out of the program on a case by case basis. Mr. Carroll indicated that he had received emails from members of the public both in support and opposition of the organics recycling program and had been provided said emails to the Board for review. is projected that the State will repeal the use of green waste as alternative daily cover and the District is being proactive in finding an alternative to recycle green waste while securing the most favorable rate. President Ferryman invited members of the public to address the Board. Mr. Morello expressed concern regarding the program and the additional carts. Ms. Bonnie Winslow, Costa Mesa resident, spoke in favor of recycling and of holding tightness of the organics cart lids. Ms. Flo Martin, Costa Mesa resident, expressed support of the organics recycling program. Mr. Ron Amburbey, Costa Mesa resident, inquired if the Board had considered creating sites throughout the City for residents to dispose of green waste and expressed support of not entering into a permanent contract. Seeing no on further, President Ferryman closed public comments. CMSD P7 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ Vice President Scheafer expressed support of the organics recycling program and of obtaining the lowest favorable rate. Vice President Scheafer expressed support of holding additional Town Hall meetings before the Board taking action. Director Schafer concurred with Vice President Scheafer. Director Ooten suggested that staff review and respond to the publics questions from all of the workshops and to provide a handout on the frequently asked questions as a handout at the workshops; discussed the financial impact of the District waiting to approve the program; expressed support of not delaying the decision for more than a month; and supported extra time for the District to educate the public on the program. Director Perry agreed with Director Ooten and felt it important to educate the public. General Manager Carroll noted that Vice President Scheafer would not be in attendance of the February 27 Board meeting and provided options of rescheduling the date of the February meeting or to hold additional workshops and place this item on the March agenda. President Ferryman expressed interest in changing the February board meeting date. Discussion followed. Deputy District Counsel Burns confirmed that the Board could change the date of the February meeting. General Manager Carroll suggested changing the meeting day to Tuesday, February 25. The Board agreed to change the meeting date to February 25, 2014. Vice President Scheafer moved to direct staff to organize additional Town Hall meetings as necessary and to change the Thursday, February 27 Board meeting date to Tuesday, February 25. Director Schafer seconded the motion. Discussion followed. MOTIONCARRIEDBYTHEFOLLOWINGVOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None Abstain: None th 14. Sponsorships: Costa Mesa Community Run & 7 Annual Gala of the Estancia & TeWinkle Schools Foundation Recommendation: That the Board of Directors considers: 1. Sponsoring the Costa Mesa Community Run at the $1,000 level. 2. General Manager Carroll presented the item and noted that the Board had indicated at its study session of January 14 that it felt that sponsorship of the Costa Mesa CMSD P8 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ th Community Run and the 7 annual Gala of the Estancia and TeWinkle Schools program. General Manager noted that nearly eighty percent of 1,000 Community Run participants are Costa Mesa residents; noted that there are up to 200 attendees of the Gala and advertising the Districts programs. th anniversary in the ad. seconded the motion. prioritized list of programs to be promoted. General Manager Carroll noted that he will provide a presentation at the Chamber MOTIONCARRIEDBYTHEFOLLOWINGVOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None Abstain: None ER NGINEERS EPORTS 15. Project Status Report Recommendation: That the Board of Directors receive and file the report. project status reports before the Board had not changed since the item was presented at the January 14 study session meeting. There were no additional questions or comments and the report was received. 16. Project #199 Proposed OCSD Transfer of Fairview Trunk to CMSD Status Report Recommendation: That the Board of Directors considers: 1. Respectively declining the transfer of OCSD Fairview Trunk at this time, but leave open the possibility that CMSD would likely accept transfer of the trunk should OCSD rehabilitate the trunk to CMSD standards. 2. Notify the Home Ranch property owners of the resolution of the matter and explain the various sewer connection possibilities. CMSD P9 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ 3. Direct staff to provide future updates to the Board of Directors regarding events affecting the Fairview Trunk. District Engineer Hamers noted that this item was discussed at the January 14 study session; indicated that the staff report is in agreement with all that was discussed; and offered to respond to questions from the Board. Hamers noted that the proposed letter to OCSD declining the transfer of the Fairview Trunk had been included in the agenda report. Schafer seconded the motion. MOTIONCARRIEDBYTHEFOLLOWINGVOTE: Ayes: Ferryman, Scheafer, Perry, Ooten, Schafer Noes: None Absent: None Abstain: None TR REASURERS EPORTS . 17Investment Report for the Month of December 2013 Recommendation: That the Board of Directors approves the Investment Report for the month of December 2013. investments. There were no questions or comments and the report was received. AR- None TTORNEYS EPORTS Vice President Scheafer of identifying each Board Members vote for the record. General Manager Carroll noted that District Counsel had provided a memo regarding the new requirement and that the District is in compliance. LM OCAL EETINGS A.Orange County Sanitation District (OCSD) (President Ferryman) Recommendation: That the Board of Directors accepts oral report. President Ferryman reported on his attendance of the meeting and discussed the hiring of a consultant to conduct negotiations with the union, CMSD P10 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ and reported on the settlement of litigations. B. Santa Ana River Flood Protection Agency (SARFPA) (Secretary Perry) Recommendation: That the Board of Directors accepts oral report. Director Perry reported on his attendance of the SARFPA meeting with President Ferryman, noted that the main line of the SARI line is scheduled for completion by June of 2014 and that the main street projects are scheduled for completion in 2016. Director Perry noted that the SARFPA Board approved representatives to go to Washington D.C. to request additional funds for the SARI line. C. Independent Special Districts of Orange County (ISDOC) (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. Vice President Scheafer reported on his attendance of the ISDOC Executive Committee, discussed CSDA grants and LAFCO vacancies, and noted that the ISDOC quarterly meeting would be held on January 30. D. California Special Districts Association (CSDA) - (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. Vice President Scheafer reported on his attendance of the CSDA Membership and Education Committees in Sacramento. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors accepts oral report. Director Ooten reported on his attendance of the CASA conference with Director Perry, discussed the presentation on inflow and infiltration, and reported on a presentation from OCSD on their internship program. Director Perry suggested inviting other City officials to the organics recycling program workshops. 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. th Director Schafer reported on her attendance of Anniversary Committee meeting, study session, the City/Districts Liaison meeting, Town Hall meeting, and Board meeting. CMSD P11 OSTA ESA ANITARY ISTRICTAGE MBDRM INUTES OF THE OARD OF IRECTORS EGULAR EETING HJ23,2014 ELD ANUARY ______________________________________________________________________ Vice President Scheafer noted that he attended his first meeting as a Board indicated that the District receives credits for completed safety courses. OB None LD USINESS NB None EW USINESS OCDC RAL OMMUNICATIONS AND IRECTOR OMMENTS Vice President Scheafer expressed appreciation father in law. Director Perry announced that Estancia High School is hosting a game versus Mesa High on February 5 and will recognize former athletes. President Ferryman thanked staff for a job well done on coordinating the offsite Board meeting. A DJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 7:20 p.m. _________________________ _________________________ Art Perry James Ferryman Secretary President