10 - Shared Services from OCSD Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors From: Scott Carroll, General Manager Date: October 23 , 2014 Subject: Shared Services from Orange County Sanitation District (OCSD) – Alternate District Engineer Summary The District is requiring its Alternate District Engineer, Bruce Mattern, a license public engineer, to carry errors & omission insurance. Errors & omission insurance is common among eng ineers, architects, planners, accountants, etc. because it covers judgments, settlements and defense costs after mistakes have occur red that resulted in a financial loss for the client. Special District Risk Management Authority (SDRMA) also recommends Mr. Mattern carries errors & omi ssion insurance. Mr. Mattern does not want to carry the insurance because it’s too expensive for his part -time consulting business. He gave the District notice that by December 31, 2014, he will no longer serve as the District Alternate District Engineer. Staff Recommendation That the Board of Directors authorizes the General Manager to proceed negotiating with OCSD staff for engineering services.
Board of Directors October 23 , 2014 Page 2 of 3 Analysis Section 3.01.045(a) of the Operations Code allows a private civil engineer to serve as District Engineer. Rob Hamers, of Robin B. Hamers & Associates, Inc. (RBH) is a private civil engineer who is serving as District Engineer. Section 3.01.045(b) of t he Operations Code requires the Alternate District Engineer to review and approve plans when the District Engineer is the engineer of record for private development within CMSD service area. Bruce Mattern is a licensed public engineer that has been servi ng as the Alternate District Engineer for more than five years. On the advice from SDRMA, the District is requiring Mr. Mattern to carry errors & omission insurance, but he does not want to carry the insurance because it’s too expensive for his part -time consulting business. He gave the District notice that by December 31, 2014, he will no longer serve as the District Alternate District Engineer. Orange County Sanitation District (OCSD) has an engineering permits office that reviews sewer plans from pri vate development . In the spirit of Orange County LAFCO’s (Local Agency Formation Commission) Sh ared Service Program, OCSD can share the services of their engineering permits office with CMSD by reviewing and approving RBH plans. The general managers from both agencies have discussed this idea and agreed to continue the discussion with OCSD’s engineering staff. Strategic Element & Goal This item complies with Strategic Element 3.0, Partnerships and Strategic Goal No.3.2, Strengthen our ties with local governments, special districts and educational institutions. This item also complies with the objective and strategy of Strategic Element 5.0, Administrative Management , which states: “Objective: To create, maintain and implement policies and procedures to ensure sound management of the District. Strategy: We will conduct periodic reviews, refine and implement policies and procedures, and assure the General Manager has the direction and tools necessary for successful District operations .” Leg al Review Not applicable at this time; however, District Counsel will review and approve an agreement if both agencies agree to terms.
Board of Directors October 23 , 2014 Page 3 of 3 Environmental Review The determination of who performs services for the District as the Alternate District Engineer is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The District could experience some cost savings by having OCSD serve as the District’s Alternate District Engineer. Bruce Mattern’s hourly rate is $133.00. The fully burden hourly rate for an engineer at OCSD is $83.91. Public Notice Process Copies of t his report are on file and will be included with the entire agenda packet for the October 23 , 2014 Board of Directors Study Session meeting at District Headquarters and on the District ’s website. Alternative Actions 1. Direct staff to seek proposals from pr ivate engineering firms to serve as the District’s Alternate District Engineer. 2. Direct staff to report back with more information.