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02 - Minutes Regular Board Meeting 2014-06-26 C OSTA M ESA S ANITARY D ISTRICT M INUTES OF B OARD OF D IRECTORS R EGULAR M EETING J UNE 26, 2014 ______________________________________________________________________ C ALL TO O RDER The Board of Directors of the Costa Mesa Sanitary District met in regula r session on June 26 , 2014 at 5 :3 0 P.M . at 628 W. 19 th Street , Costa Mesa . P LEDGE OF A LLEGIANCE I NVOCATION R OLL C ALL D IRECTORS P RESENT : D IRECTORS A BSENT : President Ferryman led the Pledge of Allegiance. Director Ooten led the Invocation. James Ferryman, Robert Ooten, Art Perry, Arlene Schafer , Mike Scheafer None S TAFF P RESENT : Scott Carroll, General Manager ; Alan Burns, District Counsel; Robin Hamers, District Engineer; Anna Sanchez, Administrative Services Manager; Wendy Davis, In terim Finance Manager ; Javier Ochiqui, Management Analyst O THERS P RESENT : Lawrence Jo nes, CR&R; Martin Pa i ne, Office of Senator Mimi Walters, Victoria Ju liano, Office of Senator Mimi Walters C EREMONIAL M ATTERS AND P RESENTATIONS – Martin Pa i ne and Vi ctoria Juliano of Senator Mimi Walters’ office , on behalf of the State Assembly and Senate, presented CMSD with a proclamation in honor of the District’s 70 th anniversary. A NNOUNCEMENT OF L ATE C OMMUNICATIONS – Scott Carroll, General Manager, noted that wr itten comments had been received from Mr. Jim Mosher and distributed to the Board for review . 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 26 , 2014 ______________________________________________________________________ P UBLIC C OMMENT S – President Ferryman invited members of the public to address the Board. Seeing no one, President Ferryman closed public comments. C ONSENT C A LENDAR 1. Board of Directors Study Session Meeting Minutes of May 13 , 2014 2. Board of Directors Regular Meeting Minutes of May 22 , 2014 3. Occupancy report and payment to CR&R Environmental Services 4. Contract Payment to CR Transfer Incorporated for Recyclin g and Disposal Services 5. Adoption of a Warrant Resolution No. CMSD 2014 -1 2 Approving District Warrant Registers 6. Directors’ Compensation and Reimbursement of Expenses 7. Investment Report for the Month of May 2014 8. Sewer Lateral Assistance Program (SLAP ) Update 9. Auditor Communication Letter Audit FY 2013 -14 The Board of Directors Study Session Meeting Minutes of May 13 , 2014, was approved as presented. The Board of Directors Regular Meeting Minutes of May 22, 2014 , was approved as presented. This i tem was pulled for further discussion . The Board of Directors approved payment to CR Transfer Incorporated for recycling and disposal services for the month of May 2014. The Board of Directors approved adoption of Warrant Resolution No. CMSD 2014 -1 2 Ap proving District Warrant Registers for the month of May 2014 in the amount of $958,904.27 . The Board of Directors approved Directors' compensation and reimbursement of expenses for the month of May 2014. The Board of Directors approved the Investment Rep ort for the month of May 2014. The Board of Directors approved the SLAP report as presented. The Board of Directors approved the Auditor Communication Letter Audit FY 2013 -14 as presented. 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 26 , 2014 ______________________________________________________________________ E ND OF C ONSENT C ALENDAR Director Perry moved to approve the consent calendar. Director Schafer seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Perry, Ooten, Schafer Noes: None Absent: Scheafer Regarding Item No. 3, Mr. Carroll reported that a discrepancy regarding the calculation of the hauler rate of $9.15 which has been amended and reduced to $8.90 and will be reflected in future reports. He also noted that the District will be credited for any invoices that were paid at the rate of $9.15 beginning in April 2014. Wendy Davis, Interim Finance Manager, noted that the credit would be $5,400 per month. Director Schafer moved to approve Item No. 3. Directo r Ooten seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Perry, Ooten, Schafer Noes: None Abs ent: Scheafer P UBLIC H EARINGS – None G ENERAL M ANAGER ’S R EPORTS 10. Alkaline Battery Recycling Pilot Program – Final Report Recommendation: That the Board of Directors approves implementing the Program District wide. General Manager Carroll deferred t o Javier Ochiqui, Management Analyst. Mr. Ochiqui reported on the success of the Alkaline Battery Recycling Program and noted the collection of over 5 ,400 pounds of batteries collected between the five schools that participated. Mr. Ochiqui requested tha t the Board of Directors approve replacing the existing Telephone Book Recycling Program with the Alkaline Battery Recycling Program . 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 26 , 2014 ______________________________________________________________________ Discussion followed regarding the publicizing of the program. The Board recommended that the collection requirement be changed from 125 pounds to 100 pounds. Director Ooten suggested that staff consider collection on a per student basis based on the size of the schools. Director Perry suggested creating categories for small and large schools. The Board of Directors directed staff to implement the Alkaline Battery Recycling Program districtwide. 11. Upgrade of CMSD’s Financial Software Recommendation: That the Board of Directors: 1. Approve the agreement with Springbook S oftware to upgrade the existing software; 2. Approve the purchase of the HR Lite and Employee Self Service Module; and 3. Appropriate an amount not to exceed $55,000 in the 2014 -15 fiscal -year from the Solid Waste Fund’s Retained Earnings and the Liquid Waste Fund’s Contingency. Ms. Davis pr ovided report details, noted that the District had not updated its financial software in over seven years, discussed the lack of support that the current system will have within the next year , provided comparison details of the two software systems, and re quested that the Board approv e staff’s recommendation. Discussion followed regarding budget for the software, the urgency and necessity to upgrade the system, and where the funds to purchase the upgrade would be allocated from. Director Ooten moved to approve the recommendation. Director Perry seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman, Ooten, Perry, Schafer Noes: None Absent: Scheafer 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 26 , 2014 ______________________________________________________________________ 12. Rewarding Ideas Program Recommendation: That the Board of Direc tors ap proves rewarding Brandon Joseph, Maintenance Worker I, $100 for his idea to improve emergency generator mobilization at President Pump Station. General Manager Carroll provided details of Brandon Joseph’s idea to improve response efficiency time by reloca ting the portable generator stationed from the Mendoza pump station to the President Pump Station . Director Perry moved to approve the recommendation. Director Schafer seconded the motion. MOTION CARRIED BY THE FOLLOWING VOTE: Ayes: Ferryman , Perr y, Ooten, Schafer Noes: None Absent: Scheafer 13. General Manager Performance Evaluation Recommendation: That the Board of Directors: 1. Receive and file General Manager’s 2013 performance goals and District achievements; 2. Direct President Ferryman to nego tiate an annual salary adjustment for the General Manager; 3. Develop 2014 performance goals for the General Manager; and 4. Report back to the Board on July 24, 2014 with the General Manager’s 2014 performance goals and proposed salary adjustment. Mr. Carroll provided the Board details of the 2013 goals and achievements, both personally and as an organization, suggested that an additional Board member be appointed to an evaluation committee to meet with President Ferryman and perform the General Manager’s eval uation , distributed an evalu ation form for the Board to use, and provided a list of goals for consideration. Mr. Carroll requested a discussion to consider his salary adjustment, indicated that a closed session would be scheduled on July 24 , 2014 before th e regular board meeting to discuss the evaluation committees findings along with proposed goals and salary adjustments . Mr. Carroll indicated that a report will be made in open session announc ing the findings and inform the public of the Board’s action , upon which District C ounsel will draft a fourth amendment to the General Manager’s agreement. Discussion followed regarding past practice of how the General Manager’s evaluations had been conducted. Director Perry suggested that Vice President Scheafer be on the evaluation 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 26 , 2014 ______________________________________________________________________ committee with President Ferryman. District Counsel noted that performance goals and achievements of the General Manager can be discussed in closed session . The Board can also meet with the General Manager in closed session and eval uate his performance; however, any discussion regarding compensation needs to be done without the General Manager in closed session and give authority to a Board member, typically the President, to meet with the General Manager to reach an agreement on com pensation . When an agreement is reached between the B oard member and General Manager a public announcement is made and a contract will be drawn up. Discussion followed regarding proposed goals for the General Manager. President Ferryman provided the Dist rict Clerk with copies of the goals submitted by Directors Ooten and Schafer. District Counsel suggested a special meeting date to allow all members of the Board to submit and discuss potential goals. Discussion followed to set a date and time for a spe cial meeting. The Board of Directors directed staff to schedule a special meeting on Monday, July 7, 2014 at 9:00 A.M. E NGINEER ’S R EPORTS 1 4 . Project Status Report Recommendation: That the Board of Directors receive and file the report. Robin Hame rs, District Engineer, provided a status update of the Grade 4 repairs. President Ferryman requested that a special meeting be scheduled to meet with representatives from the Orange County Sanitation District (OCSD) to discuss the Westside Pump Station A bandonment P roject. Discussion followed regarding restoration costs and proposed dates for a special meeting. Vice President Scheafer entered the meeting at 6:15 P.M. The Board of Directors directed staff to schedule a special meeting on July 22, 2014 at 9am to discuss the OCSD abatement. District Counsel Burns noted that he will not be in attendance of the meeting, but will review the contract and provide the Board with a memo regarding any legal issues that they may need to be aware of. Mr. Burns requested that Mr. Hamers and Mr. Carroll provide an update on the Back Bay Center easement agreement. 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 26 , 2014 ______________________________________________________________________ Mr. Hamers provided a status update of negotiations with the Back Bay Center and noted that an easement agreement had been approved. Discussion foll owed regarding title insurance for the property. There were no additional questions or comments and the report was received. T REASURER ’S R EPORTS 15. Statement of Investment Policy for Fiscal Year 2014 -15 & Adoption of Resolution No. 2014 -851 Recomme ndation: That the Board of Directors adop t R e s o l ut i o n N o . 2014 -851 app r o v i n g th e Po licy an d de l e g at i n g th e i n v e s t m en t f un c t i o n t o th e Dis t r ict T r ea s u r e r f o r th e 2014 -15 f isc a l y ea r . Marc Davis, District Treasurer, provided information on the proposed resolution to adopt the investment policy for Fiscal Year 2014 -2015 that will delegate the investment function to the District Treasurer. Director Ooten moved approval of the item. Director Perry seconded the motion. MOTION CARRIED BY THE FOLLOWING VOT E: Ayes: Ferryman, Ooten, Perry, Schafer , Scheafer Noes: None Absent: None A TTORNEY ’S R EPORTS District Counsel Burns reported on his attendance of the City Attorney’s Lunch which discussed the Public Records Act as it applied to personal electroni c devices. L OCAL M EETINGS A. Orange County Sanitation District (OCSD) – (President Ferryman ) Recommendation: That the Board of Directors accepts oral report. President Ferryman reported on the approval of a $500 million dollar budget, the appointme nt of Tom Bemish as Chairman, and the honoring of Jim Silva and Steve Anderson on the Walk of Fame. B. Santa Ana River Flood Protection Agency (SARFPA) – (Secretary Perry) Recommendation: That the Board of Directors accepts oral r eport. 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 26 , 2014 ______________________________________________________________________ Director Per ry reported on the approval of the SARFPA budget and noted that he and President Ferryman had been selected to the Executive Committee. Discussion followed regarding the Westminster Watershed Project, flood insurance and premiums. 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 Executive Committee meeting, discussed the production of a lis t of water summits throughout the state, tour of the Water Emergency Response Organization of Orange County (WEROC), and future ISDOC quarterly meeting speakers. 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 a conference call for the Education and Membership Committees and discussed speakers at the upcoming annual conference. E. Special District Risk Manage ment Authority (SDRMA) – (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. Vice President Scheafer reported on his attendance of the SDRMA meeting in Sacramento and announced David Aranda’s last day at the North o f the River Municipal Water District. 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 WACO meeting, CMSD study session, CSDA Legislative Days, ISDOC, and the endorsement from the San Bernardino Municipal Water District Board of Directors for her candidacy as the CSDA Board of Directors Region 6 representative. O LD B USINESS - None N EW B USINESS - None 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 26 , 2014 ______________________________________________________________________ O RAL C OMMUNICATIONS AND D IRECTOR C OMMENTS Director Ooten requested a review of the policy pertaining to trash cans in public view and discussed the Code Enforcement Officer’s approach to citing residents. Director Schafer discuss ed trash service for new live -work developments and requested that this be discussed at a future study session meeting. A DJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 6:52 P.M. _________________________ _________________________ Art Perry James Ferryman Secretary President