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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 26, 2014
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
June 26, 2014 at 5:30P.M. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF President Ferryman led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION Director Ooten led the Invocation.
ROLL CALL DIRECTORS PRESENT: James Ferryman, Robert Ooten, Art Perry,
Arlene Schafer Mike Scheafer
DIRECTORS ABSENT: Mike Scheafer (arrived at 6:15 P.M.)
STAFF PRESENT: Scott Carroll, General Manager; Alan Burns,
District Counsel; Robin Hamers, District
Engineer; Anna Sanchez, Administrative
Services Manager; Wendy Davis, Interim
Finance Manager; Javier Ochiqui,
Management Analyst
OTHERS PRESENT: Lawrence Jones, CR&R; Martin Paine, Office
of Senator Mimi Walters, Victoria Juliano,
Office of Senator Mimi Walters
CEREMONIAL MATTERS AND PRESENTATIONS — Martin Paine and Victoria 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 70th anniversary.
ANNOUNCEMENT OF LATE COMMUNICATIONS — Scott Carroll, General Manager, noted that
written comments had been received from Mr. Jim Mosher and distributed to the Board
for review.
•
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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• PUBLIC COMMENTS - President Ferryman invited members of the public to address the
Board.
Seeing no one, President Ferryman closed public comments.
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of May 13, 2014 Meeting Minutes of May 13, 2014, was
approved as presented.
2. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of May 22, 2014 Minutes of May 22, 2014, was approved
as presented.
3. Occupancy report and payment to This item was pulled for further discussion.
CR&R Environmental Services
4. Contract Payment to CR Transfer The Board of Directors approved payment
Incorporated for Recycling and to CR Transfer Incorporated for recycling
Disposal Services and disposal services for the month of May
2014.
5. Adoption of a Warrant Resolution The Board of Directors approved adoption
No. CMSD 2014-12 Approving of Warrant Resolution No. CMSD 2014-12
District Warrant Registers Approving District Warrant Registers for
the month of May 2014 in the amount of
$958,904.27.
6. Directors' Compensation and The Board of Directors approved Directors'
Reimbursement of Expenses compensation and reimbursement of
expenses for the month of May 2014.
7. Investment Report for the Month of The Board of Directors approved the
May 2014 Investment Report for the month of May
2014.
8. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
9. Auditor Communication Letter Audit The Board of Directors approved the
FY 2013-14 Auditor Communication Letter Audit FY
2013-14 as presented.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES,OF THE BOARD OF DIRECTORS REGULAR MEETING
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END OF CONSENT CALENDAR
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. Director Ooten seconded the motion.
MOTION CARRIED BY THE FOLLOWING VOTE:
Ayes: Ferryman, Perry, Ooten, Schafer
Noes: None
Absent: Scheafer
PUBLIC HEARINGS-None
GENERAL MANAGER'S REPORTS
10. Alkaline Battery Recycling Pilot Program — Final Report
Recommendation: That the Board of Directors approves implementing the
Program District wide.
General Manager Carroll deferred to 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 that the Board of Directors approve
replacing the existing Telephone Book Recycling Program with the Alkaline Battery
• Recycling Program.
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• 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 Software 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 provided 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 requested that the Board approve 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
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12. Rewarding Ideas Program
Recommendation: That the Board of Directors approves 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 relocating 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, Perry, 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 negotiate 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 evaluation, distributed an evaluation 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 the 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 announcing the
findings and inform the public of the Board's action, upon which District Counsel 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
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD.TUNE 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 evaluate 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 compensation. When an
agreement is reached between the Board 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 District 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 special meeting.
The Board of Directors directed staff to schedule a special meeting on Monday, July 7,
• 2014 at 9:00 A.M.
ENGINEER'S REPORTS
14. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
Robin Hamers, 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 Abandonment Project.
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.
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•
Mr. Hamers provided a status update of negotiations with the Back Bay Center and
noted that an easement agreement had been approved.
Discussion followed regarding title insurance for the property.
There were no additional questions or comments and the report was received.
TREASURER'S REPORTS
15. Statement of Investment Policy for Fiscal Year 2014-15 & Adoption of Resolution
No. 2014-851
Recommendation: That the Board of.Directors adopt Resolution No. 2014-851
approving the Policy and delegating the investment function to the District
Treasurer for the 2014-15 fiscal year.
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 VOTE:
Ayes: Ferryman, Ooten, Perry, Schafer, Scheafer
Noes: None
Absent: None
ATTORNEY'S REPORTS
District Counsel Burns reported on his attendance of the City Attorney's Lunch which
discussed the Public Records Act as it applied to personal electronic devices.
LOCAL MEETINGS
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
appointment 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 report.
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• HELD JUNE 26, 2014
Director Perry 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 list 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 Management 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 of 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.
OLD BUSINESS- None
NEW BUSINESS - None
410
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2014
• ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
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 discussed trash service for new live-work developments and requested
that this be discussed at a future study session meeting.
ADJOURNMENT
There being no further business to come before the Board, President Ferryman
adjourned the meeting at 6:52 P.M.
jyL
Art Perry Ja es Ferryman
Secretary Pre;.ident
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