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Minutes - Board - 2007-02-07• COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on February 7, 2007, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. President Perry called the meeting to order at 6:00 p.m. PLEDGE OF ALLEGIANCE Director Ferryman led the Pledge of Allegiance. INVOCATION Mr. Fauth gave the invocation. • ROLL CALL DIRECTORS PRESENT: Art Perry, Arlene Schafer, Bob Ooten, James Ferryman, Gary Monahan, DIRECTORS ABSENT: None STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Marc Davis, Treasurer; Sherry Kallab, Accountant; Karl Dulake, Maintenance Supervisor; Debbie Bjornson, Permit Processing Specialist; Ron Shef, Ordinance Enforcement Officer OTHERS PRESENT: Mr. Dan Worthington, 2963 Mindanao Drive, Costa Mesa Mr. Allan Mansoor, Mayor of the City of Costa Mesa • • • • n. \ COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 2 . ............................... CONSENT CALENDAR . ............................... President Perry acknowledged the presence of Allan Mansoor, Mayor of the City of Costa Mesa. Mayor Mansoor acknowledged Costa Mesa Sanitary District Maintenance Supervisor Karl Dulake for his service to the City of Costa Mesa since 1979 in traffic operations, maintenance worker, street sweeper and as a member of the Sanitary District maintenance operations field crew before leaving the City for his present position as Maintenance Supervisor with the Costa Mesa Sanitary District. Mr. Mansoor presented Mr. Dulake with a plaque honoring his service to the City of Costa Mesa. Mr. Hamers expressed his appreciation to Mayor Mansoor for his outstanding job in serving the City of Costa Mesa. REPORTS Minutes of City /Districts Liaison Committee Meeting — January 12, 2007 Minutes of Recycling Committee Meeting — January 17, 2007 Minutes of Regular Meeting — January 17, 2007 Minutes of Special Meeting — January 22, 2007 MINUTE APPROVAL The Minutes of the City /Districts Liaison Committee Meeting of January 12, 2007, were approved as distributed. The Minutes of the Recycling Committee Meeting of January 17, 2007, were approved as distributed. The Minutes of the Regular Meeting of January 17, 2007, were approved as distributed. The Minutes of the Special Meeting of January 22, 2007, were approved as distributed. Minutes of Sewer Lateral The Minutes of the Sewer Lateral Sub - Committee Sub - Committee Meeting — Meeting of January 24, 2007, were approved as January 24, 2007 distributed. t AAA.\ COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 3 Minutes of Special The Minutes of the Special Meeting of January 27, Meeting — January 27, 2007, were approved as distributed. 2007 MANAGER'S REPORTS REFUNDS There were no refunds for the month of January 2007. Occupancy Report and The Trash Occupancy Count documented an Payment of $195,312.14 increase of 6 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of February 1, 2007. February 2007 Therefore, the total for February is 21,333. Board directed Staff to prepare a warrant for $195,312.14 for February 2007 collection based on occupancy report. Said payment in the amount of $195,312.14 to Costa Mesa Disposal to be ratified on the March 2007 warrant register. Monthly Spill Report to The Monthly Spill Report to the State Water State Water Resources Resources Board for January 2007 was accepted Board as submitted. Additional Container The Additional Container Program Report showing Program Report 2,397 barrels as of February 7, 2007 was accepted as submitted. The total number of residents being billed for these 2,397 additional barrels is 1,959. Engineer's Reports Project Status Report Treasurer's Reports Financial Report as of • January 2007 The Project Status Report dated February 2007 was accepted as submitted. The Financial Report as of January 2007 was accepted as submitted. 1�1 • C, „ COSTA MESA SANITARY DISTRICT r` MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 Y F PAGE 4 Treasurer's Report as of The Treasurer's Report as of January 2007 was January 2007 accepted as submitted. Warrant 2007 -8 for Warrant Resolution #CMSD 2007 -8 was approved, January 2007 in the authorizing the President and Secretary to sign the amount of $613,334.69 warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $613,334.69. Directors Expenses for the Director Compensation and Expense Month of January 2007 Reimbursements for the Month of January 2007 were approved and ratified as follows: President Perry: $1,020 Vice President Schafer $1,020 + $4.85 Director Ooten $1,020 + $125.55 Director Ferryman $850 Director Monahan $1,020 .......................... END OF CONSENT CALENDAR ......................... WRITTEN COMMUNICATIONS Ms. Revak reported congratulatory letters to Directors Schafer, Ooten and Monahan were received from City of Costa Mesa Mayor Allan R. Mansoor. Vice President Schafer reported congratulatory letters were also received by the newly - elected Directors from Councilperson Katrina Foley. PUBLIC COMMENTS Mr. Worthington expressed his desire to address the Board at a more appropriate time in the meeting. • • COSTA MESA SANITARY DISTRICT 9��`'`. MINUTES OF BOARD OF DIRECTORS REGULAR MEETING �'' _tea � u �' FEBRUARY 7, 2007 ��'�Po�At4��'0 PAGE 5 MANAGER'S REPORTS CMSD STRATEGIC PLAN YEAR 2007 -2008 STRATEGIC PLANNING WORKSHOP HELD .JANUARY 26 & 27, 2007 YEAR 2007/2008 STRATEGIC PLANNING ACTION ITEMS Year 2007/2008 Strategic Planning Action Items were presented. Director Monahan questioned Item Vlll. Beautification of the City which incorrectly states trash containers are required to be removed from view from the public streets by 5:00 p.m. on the day of collection. Per the District's Operations Code, the Strategic Planning Action Items will be corrected to midnight the day of collection. Vice President questioned Staff on whether the District has an Evacuation Plan. Mr. Fauth noted there is an evacuation plan posted in the halls upstairs and downstairs above the water fountain. Additionally, Mr. Fauth pointed out the CMSD Safety Manual contains language stating in the event of an emergency, all personnel will evacuate the building and assemble in the parking lot. Director Ferryman questioned Staff with regard to the District having an emergency plan and chain of command. Mr. Hamers stated the District has a Sewer System Management Plan which includes a chain of command. Director Monahan motioned to accept the Year 2007/2008 Strategic Planning Action Items subject to correction of Item V111 — Beautification of the City. Director Schafer seconded the motion. Motion passed 5 -0. SEWER SYSTEM COMMITTEE (Formerly Sewer Lateral Sub - Committee) Mr. Hamers reported the Sewer Lateral Committee met on January 24, 2007 and Director Monahan volunteered to become the Committee Chairman. Attending Committee Directors and Staff agreed to rename the Committee the Sewer System Committee to better address all aspects of the District Sewer System including main lines, pump stations and laterals and not remain limited to the topics of sewer laterals, inspections and lateral insurance. Mr. Hamers noted that the Committee Directors are Ferryman, Ooten and Monahan. The next meeting will be held on Wednesday, February 21, 2007 at 10:30 a.m. 7 COSTA MESA SANITARY DISTRICT /a`n7lfge\ ac MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 6 Seminar on Sewer Lateral Ownership Mr. Hamers reported on an upcoming Sewer System Education Seminar hosted by the Orange County Waste Discharge Requirements (WDR) Steering Committee, Presentation on Sewer Lateral Ownership, and being held on Thursday, March 15, 2007, 9:30 -11:30 a.m. at the Orange County Sanitation District, 10844 Ellis Avenue, Fountain Valley. DISTRICT YARD UPDATE Mr. Fauth reported on a communication from Doug Lofstrom, of the Orange County Fair & Exposition Center, relative to discussing with Becky Bailey - Findley CMSD entering into a long -term arrangement with the Fairgrounds to secure use of space in support of CMSD operations. Key issues facing the fairgrounds, specifically, master plan implementation, land use planning and the mission of an event center, are of concern. Mr. Lofstrom stated the OC Fair & Exposition Center is very willing to work with the CMSD on an interim basis for use of space until the District secures a permanent location, however, a long -term arrangement is more complex. Mr. Lofstrom stated he will contact the District in February to arrange a meeting between • two CMSD Board members, himself and Ms. Bailey - Findley to review the District's request and to share their vision for future use of the Fair property. Mr. Fauth reported on a "Market Overview" of Costa Mesa provided by Don Gregg of Curtis & Associates. The report included information on two divergent development philosophies driving the real estate market in Costa Mesa; one being high density residential and the other a subdivision of large single ownership property into smaller owner - occupied condominium units. The prices for commercial and industrial zoned properties are stable and rising. The report included examples , of industrial properties that are increasing in value. In summary, the report from Mr. Gregg stated reuse and redevelopment are reducing the number of potential industrial. properties that meet CMSD requirements. Land values for industrial properties in Costa Mesa are not going to "soften" or decrease in value over the next six to twenty -four months. The challenge is finding a suitably located property for sale. Discussion ensued on the possibilities of several of the industrial properties for sale that could meet the needs of the CMSD. Properties on Logan Avenue in Costa Mesa were discussed and the Board requested Staff look into these properties as potential sites for the District to house its office headquarters as well as a District yard. L� • • • STATUS OF CMSD WEBSITE COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 7 Mr. Fauth presented a chart of possible website vendors being evaluated by Staff and recommendations will be made at the March 8, 2007 regular meeting. NEW DISTRICT HEADQUARTERS BUILDING AND GROUNDS AD HOC COMMITTEE Update on Column Improvements, Painting, and Landscaping Mr. Fauth reported bids have been requested from local landscape contractors and the District is awaiting additional responses. Mr. Dulake reported the landscapers who responded recommended waiting until spring to begin planting. RECYCLING REPORTS WASTE DIVERSION REPORT -JANUARY 2007 Ms. Revak presented the Waste Diversion Reports for December 2006 showing a 50.43% diversion rate. Vice President Schafer motioned the Waste Diversion Report be received and filed. Director Monahan seconded. Motion carried 5 -0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR JANUARY 2007 SERVICES Ms. Revak presented the Invoices for January 2007 recycling services and disposal. Vice President Schafer motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of January 2007 in the amount of $179,098.41. Director Monahan seconded. Motion carried as follows: Ayes: Perry, Schafer, Monahan, Ferryman, Ooten Noes: None COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 8 • Director Monahan motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of January 2007 in the amount of $5,374.49. Vice President Schafer seconded. Motion carried as follows: Ayes: Perry, Schafer, Monahan, Ferryman, Ooten Noes: None Sewer Lateral Insurance Attorney Alan Burns introduced the subject of an insurance program available through American Water Resources, Inc. at a cost of $9.00 per month covering repairs to the lateral up to $4,000 after a $50 service call fee is paid. Mr. Burns noted there are many exclusions in the form contract and American Water indicated there would be negotiation over the terms. The Company would expect the District to collect the fee and apparently remit the money to them. The Company is awaiting final approval for their California insurance license. * ORDINANCE ENFORCEMENT OFFICER'S REPORT Mr. Shef presented the Ordinance Enforcement Officer's Report for the month of January 2007, the first since returning to duties of the District on December 12, 2006. During the month of January, the Officer's hours were increased to approximately 75% of previous usage. All previous complaints were investigated and no backlog exists. Mr. Shef reported minimal negative impact occurred while he was out on surgical leave. Director Ferryman raised the issue of having an alternate or back -up Enforcement Officer. Mr. Shef related his confidence in being able to continue to do the job without the necessity of back -up and stated he would be the first to inform the District should he be unable to perform at a satisfactory level. The Board directed Mr. Shef to document the functions of his position and a succession plan should he be unable to perform the duties required. Former CMSD Director Dan Worthington asked to be recognized to report on a situation at 3013 Royal Palm Drive. The owner of the property, Ms. Mary Berg, is a low income and less fortunate resident of Costa Mesa. Mr. Worthington reported on the unhealthy and unkempt property documented with photos. CR &R has assisted by providing dumpster service for volunteers to attempt to clean up the property. There was much discussion on the situation. The property apparently does not have working sewer service and is in an almost uninhabitable condition. The Board COSTA MESA SANITARY DISTRICT r�k r MINUTES OF BOARD OF DIRECTORS REGULAR MEETING S FEBRUARY 7, 2007 PAGE 9 • discussed the situation and suggestions were offered such as advising the County Health Department. Mr. Worthington informed the Board the City of Costa Mesa is aware of the unhealthy state of the property. Staff will send CR &R a letter of appreciation of their humanitarian support to this resident. Mr. Worthington requested the District continue making bins available from CR &R. UPDATE ON MONITOR VIDEO Mr. Fauth reported the script for the video was reviewed and the last revisions are being made. RECYCLING COMMITTEE — MONDAY, FEBRUARY 7, 2007 —12:00 P.M., CMSD BOARDROOM, 628 W. 19'" STREET, COSTA MESA RECYCLING COMMITTEE GOALS FOR 2005/2006 AND 2007/2008 Director Ooten reported the Recycling Committee reviewed the 2007/2008 recycling goals and requested approval by the Board of Directors Director Ferryman motioned to approve the 2007/2008 Recycling Committee Goals. Motion seconded by Director Monahan. Motion passed 5 -0. The Committee recommends adding City of Costa Mesa Councilperson Katrina Foley to the list of guests to invite to a Recycling Committee meeting. TELEPHONE BOOK RECYCLING PROGRAM - NOVEMBER 13 THROUGH DECEMBER 29, 2006 Ms. Revak presented a revised report on the School Telephone Book Recycling Program. A total of 10,334 books (20.67 tons) were collected with twenty -seven schools participating in the program. As directed by the Board of Directors, a grand prize award is presented to one school in each category, elementary, middle and high school, with awards going to Kline Elementary, Costa Mesa H. S. (7t" & 8th) and Estancia High School, respectively. A second grand prize will be awarded to Pomona School based on achieving 23 lbs. of books per student collected while finishing in second place. A special effort award will be given to schools collecting over 2 lbs. per student with an enrollment of less than 400. Award amount brings participation award to $400.00 If approved by the Board, awards totaling $12,130.00 will be distributed to the • schools and a schedule of presentation dates is forthcoming. • 0 COSTA MESA SANITARY DISTRICT F,a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 10 The District received a check in the amount of $250.00 from Connell Chevrolet as sponsorship for the recycling program. Additionally, Ms. Revak reported AT &T will consider contributing to the cost of the flyers and posters and in the 2007 program AT &T offered to work with District Staff in designing and printing the flyers at no cost to the CMSD. Vice President Schafer motioned to approve the awards to the schools totaling $12,130.00. Director Monahan seconded. Motion carried as follows: Ayes: Perry, Schafer, Monahan, Ferryman, Ooten Noes: None E —WASTE EVENT — FEBRUARY 24, 2007 AT CITY CORPORATION YARD Director Ooten reported the second E -Waste sponsored by the City of Costa Mesa and the CMSD will be held on February 24, 2007 at the City Corporation Yard. The event contractor is ARC International Corporation and they will provide flyers for distribution in Costa Mesa including 17,000 flyers to be distributed to local schools through the Newport -Mesa Unified School District. Ten thousand flyers will be shipped to 13 retailers who have agreed to distribute flyers, such as grocery stores, Sears and Fry's Electronics. The flyer was distributed with the Chamber of Commerce newsletter and flyers will be distributed at the Orange Coast College Recycling Center DISPOSAL OF ELECTRONIC AND UNIVERSAL WASTES THROUGH CR &R Director Ooten reported a proposal letter from CR &R was received explaining CR &R's new "Special Waste Division" start up for the collection and removal of hazardous wastes from residences within the Costa Mesa community. SOURCE REDUCTION Director Ooten reported source reduction is an ongoing goal of the Recycling Committee and educating the citizens on source reduction will be a major focus of the Committee. U • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 'ten PAGE 11 ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS — (WDR) GENERAL UPDATE Mr. Hamers reported the Orange County Sanitation District will host a seminar on sewer laterals with representatives from City of Newport Beach, Santa Ana, and Fullerton speaking on maintaining sewer laterals in the public right -of -way. The seminar will be held March 15, 2007, from 9:30 a.m. to 11:30 a.m. A flyer will be distributed to managers and council persons of all agencies. Mr. Hamers encouraged attendance at the seminar. 330 W. BAY STREET; TRACT NO. 16694; CONSTRUCTION OF CMSD SEWER Mr. Hamers reported Richmond American is the developer of a residential project at 330 West Bay Street and constructed sewer improvements to be dedicated to the Costa Mesa Sanitary District. The sewer lines being dedicated to the District are located in the streets and alleys adjoining the single family homes and town homes in the development. Mr. Hamers advised that in accordance with District requirements, the sewer plans were reviewed by the District Engineer to ensure conformity with District standards, the plan check and inspection fees were paid by the developer and bonds guaranteeing construction were posted by the developer. Further, Richmond American also paid the `new development' charge for two new 60 gallon standardized trash containers for each residence. In addition to Richmond American granting the private street areas as easements for the sewer lines, the private streets were also dedicated to the District for trash collection vehicle access. Mr. Hamers stated construction of the sewer lines is complete and the CMSD Inspector and District Engineer are satisfied that the sewer system is ready for acceptance by the Board of Directors and recommended the Board accept the sewer improvements as constructed and file a Notice of Completion with the Orange County Recorder, accept the easement as dedicated and sign and record the Easement Grant Deed; exonerate the Labor and Material Bond 35 days after the date of recording of the Notice of Completion; exonerate the Faithful Performance Bond one year after the date of recording of the Notice of Completion. • LJ fl; COSTA MESA SANITARY DISTRICT f ^3 F` MINUTES OF BOARD OF DIRECTORS REGULAR MEETING �� ��t rx u e�, ' FEBRUARY 7, 2007 ��t0,; 0 �,pl PAGE 12 Director Ooten motioned to accept the sewer improvements as constructed and file a Notice of Completion with the Orange County Recorder; accept the easement as dedicated and sign and record the Easement Grant Deed; exonerate the Labor and Material Bond 35 days after the date of recording of the Notice of Completion; exonerate the Faithful Performance Bond one year after the date of recording of the Notice of Completion. The motion was seconded by Vice President Schafer. Motion carried as follows: Ayes: Perry, Schafer, Monahan, Ferryman, Ooten Noes: None 2501 HARBOR BLVD; TRACT NO. 16937; CONSTRUCTION OF CMSD SEWER Mr. Hamers reported Richmond American is the developer of the residential project at the west corner of Harbor Blvd. and Fair Drive and constructed sewer improvements to be dedicated to the Costa Mesa Sanitary District. The sewer lines being dedicated to the District are located in the streets and alleys adjoining the single family homes and town homes in the development. Mr. Hamers advised that in accordance with District requirements, the sewer plans were reviewed by the District Engineer to ensure conformity with District standards, the plan check and inspection fees were paid by the developer and bonds guaranteeing construction were posted by the developer. Further, Richmond American also paid the `new development' charge for two new 60 gallon standardized trash containers for each residence. In addition to Richmond American granting the private street areas as easements for the sewer lines, the private streets were also dedicated to the District for trash collection vehicle access. Mr. Hamers stated construction of the sewer lines is complete and the CMSD Inspector and District Engineer are satisfied that the sewer system is ready for acceptance by the Board of Directors and recommended the Board accept the sewer improvements as constructed and file a Notice of Completion with the Orange County Recorder; accept the easement as dedicated and sign and record the Easement Grant Deed; exonerate the Labor and Material Bond 35 days after the date of recording of the Notice of Completion; exonerate the Faithful Performance Bond one year after the date of recording of the Notice of Completion. • 4 htQp4 COSTA MESA SANITARY DISTRICT e 4�` MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 13 Director Ooten motioned to accept the sewer improvements as constructed and file a Notice of Completion with the Orange County Recorder; accept the easement as dedicated and sign and record the Easement Grant Deed; exonerate the Labor and Material Bond 35 days after the date of recording of the Notice of Completion; exonerate the Faithful Performance Bond one year after the date of recording of the Notice of Completion. The motion was seconded by Director Monahan. Motion carried as follows: Ayes: Perry, Schafer, Monahan, Ferryman, Ooten Noes: None PROJECT NO. 181 — NEWPORT BLVD. SEWER AT 19'" STREET BID OPENING Mr. Harriers advised the Board the following bids were opened at the February 1, 2007 bid opening for Project No. 181: 1. Nikola Corporation 2. GCI Construction 3. Zondiros Corporation 4. Mike Prlich & Sons, Inc. 5. Lonerock, Inc. 6. Palp. Inc. (Excel Paving) 7. Atlas- Allied, Inc. 8. Vadnais Corporation $ 210,485 * Low Bid $ 233,330 $ 250,975 $ 269,950 $ 277,175 $ 286,707 $ 299,450 $ 327,550 District Staff requested construction bids from the above contractors including Schedule A (Newport Blvd. at 19th Street) and Schedule B (Placentia Avenue at 18th Street). The construction bids shown above include Schedule A and Schedule B. All bids were reviewed by District staff to ensure the lowest responsive bid in conformance with prevailing construction prices. All construction bids were reviewed and compared to the engineer's estimate to ensure the bids are reasonable, cost effective, and competitive compared to standard construction rates. The FY 2006 -2007 project budget is $325,000. The project's expenses total $310,485 including design ($25,000), construction per above low bid ($210,485), inspection ($25,000), and contingency ($25,000). • r� l� COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 14 The Manager /District Engineer recommends that the Board of Directors award a construction contract for this project to Nikola Corporation in the amount of $210,485 dollars as the lowest responsive and responsible bidder. Director Ooten motioned to award a construction contract for Project #181 to Nikola Corporation in the amount of $210,485.00 as the lowest responsive and responsible bidder. Vice President Schafer seconded the motion. Motion carried as follows: Ayes: Perry, Schafer, Monahan, Ferryman, Ooten Noes: None PROPOSAL TO PROVIDE INSPECTION SERVICES A proposal to have Mr. Hamers provide the necessary construction administration, engineering, construction surveying and inspection services during the construction phase of Project 181 was presented. Mr. Hamers provided copies of the project reports as described in the CMSD Capital Improvement Program as well as the independent engineer's report. Mr. Hamers proposed to provide the following services, as needed, during the construction phase of the project, not to exceed $25,000.00: Engineering $80.00 /hour Inspection $55.00 /hour Surveying (2 man crew) $220.00 /hour Director Monahan motioned to accept the proposal for engineering, inspection and surveying services as needed during the construction phase of Project #181, not to exceed $25,000.00 at the rates of $80.00 /hour for engineering; $55.00 /hour for inspection and $220.00 /hour for surveying by a 2 man crew. Director Ooten seconded the motion. Motion carried as follows: Ayes: Perry, Schafer, Monahan, Ferryman, Ooten Noes: None • n �I • TREASURER'S REPORTS COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 7, 2007 PAGE 15 PRELIMINARY BUDGET CALENDAR FOR FISCAL YEAR 2007 -08 Mr. Davis presented a preliminary budget calendar for Fiscal Year 2007 -08 and informed the Board Staff will be working on different aspects of the budget until the May Study Session and will update the Board as necessary. BUDGET ADJUSTMENT FOR TELEPHONE BOOK RECYCLING PROGRAM Mr. Davis acknowledged the $15,000 budget amount approved in June 2006 for the telephone book recycling program for fiscal year 2006 -07. At the January 17, 2007 Board meeting the Board discussed the manner in which awards were determined for the participating schools and requested Staff to calculate an additional award for outstanding performance by Pomona School and to add additional incentive awards. The total award amount calculated by Staff is $12,130 and, coupled with the other costs of the program, brings the total cost of the program to approximately $16,000 thereby necessitating a budget adjustment to cover the additional costs. Mr. Davis stated adequate funds are available from contingency within the Solid Waste Fund. Director Ferryman motioned to approve a budget adjustment in the amount of $1,000 to cover additional costs related to the telephone book recycling program for fiscal year 2006 -07. Director Monahan seconded. Motion carried as follows: Ayes Perry, Schafer, Monahan, Ferryman, Ooten Noes: None ATTORNEY'S REPORT PUBLIC RECORDS ACT REQUEST FOR SEWER LINE AND PUMP STATION MAINTENANCE AND SERVICE (POSSIBLE NEED FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(A)) The Board will continue discussion at a Special Meeting on February 15, 2007 at 6:00 p.m. +`nfza COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING Slw - r FEBRUARY 7 2007 PAGE 16 • ASTIN LOCKE V. CMSD (SUP. COURT CASE No. 06CC05755 STATUS REPORT (POSSIBLE NEED FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(A)) • Attorney Burns recommended this item be addressed at the end of the meeting. FEES AND FUNDS — STATE REQUIREMENTS FOR FEE CATEGORIES Mr. Burns presented an overview of how the District finances its sewer operations with three different fees /charges: 1) Annual charges that are approved after the CMSD annual rate setting meeting for the year and imposed on the assessment roll and collected in semiannual installments; 2) User fees such as inspection fees that cover the direct cost of providing a service; 3) Fixture fees that are imposed upon development/remodeling and are a one -time charge based on fixtures to be connected to the sewer system. After a discussion regarding the various charges, Mr. Burns recommended the District clarify what its charges are for and should ensure it is keeping adequate records and accounting of the uses of said funds. Mr. Burns also recommended the Board consider the options that will be presented at an upcoming meeting where the Sewer System Financial Master Plan will be addressed. ATTORNEY GENERAL OPINES THAT STAFF DISCUSSIONS WITH TRASH HAULER NOT SUBJECT TO BROWN ACT; BOARD DETERMINATIONS REGARDING THE TRASH FRANCHISE ARE SUBJECT TO THE BROWN ACT (89 OPS.CAL. ATY.GEN 241) Mr. Burns reported the Attorney General was requested to answer questions about how government agencies award franchise contracts to solid waste haulers. The Attorney General noted that local agencies have broad powers under the Integrated Waste Management Act to grant franchises, with or without competitive bidding, or to undertake collection itself. He also found that a County could award an exclusive franchise in designated service areas and were authorized to set maximum rates for collection services in those areas. Further, the Attorney General noted the public had no right to advance notice and public participation in discussions between staff and the prospective franchisee. Staff is not within the definition of "legislative body" that is subject to the Brown Act. However, the public is entitled to advance notice and the right to participate before the Board makes a decision to award a franchise. The Board is obviously a legislative body under the Brown Act and its deliberations and determinations regarding the types of decisions that must be ;;�� COSTA MESA SANITARY DISTRICT �.�:;F, MINUTES OF BOARD OF DIRECTORS REGULAR MEETING E r FEBRUARY 7, 2007 <rgyn�� PAGE 17 sRhi'�'p made in public. No exception to the Brown Act would allow such decision p p a dec s on to be discussed in closed session. Finally, the Attorney General noted the Brown Act requires advance notice of agendas for discussion and the public is allowed to participate in the decision by presenting testimony on the matter before action is taken. Mr. Burns noted none of these conclusions are provocative; the fact that the Attorney General was asked to render his opinion on the subject shows that in some agencies, there is still an uncertainty about the laws. EMPLOYER MUST OBTAIN PROSECUTOR'S CONSENT BEFORE EMPLOYEE CAN BE ORDERED TO COOPERATE IN AN INVESTIGATION THAT MAY INVOLVE CRIMINAL CONDUCT (SPIELBAUER V. SANTA CLARA) Mr. Burns reported the Sixth District Court of Appeal, in Spielbauer v. Santa Clara, held that a public employee cannot be compelled to give statements in a disciplinary investigation unless he has immunity from criminal prosecution. Spielbauer was ordered to cooperate in the investigation and advised that if he did not answer, he could be fired for insubordination. Mr. Burns stated the issue for the court was whether a supervisor of a public employee could confer immunity by ordering the employee to answer, and by advising that if he did, the statement could not be used against him in a criminal prosecution against him. The Court said that such a rule would unfairly limit prosecutors from enforcing criminal laws, without any notice of the deal made. The Court, therefore, found that before such immunity can be obtained, it must be obtained by involving the prosecuting attorney by noticed proceeding. The insubordination charge was overturned because the county could not offer immunity that would be sustained so Spielbauer could not be disciplined for insubordination. Mr. Burns concluded, unless this case is overruled by the California Supreme Court, this case provides authority for the following: 1) No public employee can be compelled to give a statement in which the activity may involve a crime if it would violate that person's Fifth Amendment rights not to self- incriminate, unless immunity is given. 2) Immunity is not effective unless the prosecution is part of the decision. 3) Unless such immunity has been secured, an employee need not give statements in an investigation that has a possibility of criminal implications and cannot be terminated for insubordination for failing to provide answers to a superior or for not cooperating in an investigation. Mr. Burns stated this case now suggested that we add a procedure that will involve the local prosecutor whenever an employee's wrongdoing might also be a crime. rise, COSTA MESA SANITARY DISTRICT ��"_ 'P� MINUTES OF BOARD OF DIRECTORS REGULAR MEETING r'' FEBRUARY 7, 2007 R.,'•P��sW��. PAGE 18 LOCAL MEETINGS (INCLUDES REPORTS BY ALL DIRECTORS REPRESENTATING CMSD) ORANGE COUNTY SANITATION DISTRICT (OCSD) — JANUARY 24, 2007 (DIRECTOR FERRYMAN) Director Ferryman attended the January 24, 2007 OCSD meeting and reported the following: ❑ OCSD annexed 64 acres of Lemon Heights ❑ Settled lawsuit with contractor in the City of Tustin ❑ New member orientation was held ❑ Director Ferryman is going to China on April 20, 2007 with Steve Anderson SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) (PRESIDENT PERRY President Perry attended the meeting for the Santa Ana River Flood Protection Agency on January 25, 2007 and reported on potential changes in Executive Committee membership. Don Martinson announced the resignation of Bill Zaun as an Alternate to Supervisor Bill Campbell, the representative of the Orange County Flood Control Distract and that it was his understanding that action is being taken to appoint Herb Nakasone as a replacement to Bill Zaun. Jim Wahner is being reappointed as an alternate to Supervisor John Moorlach, the County of Orange representative. Herb Nakasone was appointed to the Executive Committee President Perry reported Orange County is receiving significant payments in accordance with the large backlog of payment requests from the Flood Control Subvention program The Prado Dam construction contract is scheduled for completion in December 2008. All construction repairs have been completed at Seven Oaks Dam and the dam is fully operational for flood control purposes. Aft,, COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING ti FEBRUARY 7, 2007 PAGE 19 INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (VICE PRESIDENT SCHAFER) Vice President Schafer attended the January 9, 2007 Executive Board meeting and reported the following: ❑ Quarterly meeting will be held on March 29, 2007 and will feature an emergency training program on Homeland Security and everyone attending will receive a certificate. This will be a "free" lunch meeting. ❑ Vice President Schafer provided reports on CSDA ❑ There were no topics of particular interest to the CMSD _LOCAL AGENCY FORMATION COMMISSION (LAFCO) (VICE PRESIDENT SCHAFER Vice President Schafer reported the following: ❑ Hearing was held on Rossmoor and Los Alamitos Sphere of Influence with • residents desiring Rossmoor to become incorporated. LAFCO placed Rossmoor and Los Alamitos in the same sphere of influence. ❑ LAFCO Strategic Planning session was held on January 26, 2007. ❑ Vice President Schafer provided reports on CSDA CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (VICE PRESIDENT SCHAFER Vice President Schafer will be attending meetings in Sacramento on February 15 and 16, 2007. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) Director Ooten attended the CASA Mid -Year Conference, January 17 -20 at Indian Wells which focused on the dynamic changes in the state and federal legislative forums as well as issues facing the wastewater community on regulatory and legal fronts. Discussion was held on the impact of GASB 45 and future financial reporting requirements of agencies. Eminent Domain and the impact of Proposition 90 was another topic as well as what local government may be facing with the new legislative session. • COSTA MESA SANITARY DISTRICT • �4�y'A JQie`yf`j. h MINUTES OF BOARD OF DIRECTORS REGULAR MEETING u FEBRUARY 7, 2007 r � PAGE 20 • OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030 WACO Vice President Schafer attended the January 5, 2007 meeting and reported on that meeting at the January 7, 2007 regular meeting. CHAMBER OF COMMERCE Directors Ferryman and Monahan will give a presentation to the Chamber on Thursday, February 8, 2007 on the subject of sewer laterals. OLD BUSINESS There was no Old Business presented. NEW BUSINESS 0 There was no New Business presented. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS There were no oral communications or Director Comments. ADJOURNMENT At 8:25 p.m., President Perry recessed the meeting to closed session, pursuant to Government Code 54956.9(a). Closed session convened at 8:26 p.m. ASTIN, LOCKE V CMSD (SUP COURT CASE NO. 06CCO5755) STATUS REPORT (POSSIBLE NEED FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(A) The regular meeting reconvened at 8:34 p.m. No action was taken in the closed session. President Perry adjourned the meeting at 8:35 p.m. U COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING �� � FEBRUARY 7, 2007 ark ��z�,s`�� PAGE 21 • Ak SECkRETARY • •