Minutes - Board - 2010-02-25i
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
FEBRUARY 25, 2010
CALL TO ORDER
PLEDGE OF
ALLEGIANCE
INVOCATION
ROLL CALL
The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
February 25, 2010 at 5:30 p.m. at 628 W.
19th Street, Costa Mesa.
General Manager Scott Carroll led the
Pledge of Allegiance.
Mr. Fauth gave the invocation.
DIRECTORS PRESENT: Arlene Schafer, Robert Ooten, Gary
Monahan, James Ferryman, Art Perry
DIRECTORS ABSENT:
STAFF PRESENT: Scott Carroll, General Manager; Joan Revak,
Office Manager /Clerk of the District; Robin B.
Hamers, District Engineer; Alan Burns, Legal
Counsel; Tom Fauth, Operations Manager;
Teresa Gonzalez, Accountant; Marc Davis,
Treasurer
OTHERS PRESENT
CONSENT CALENDAR
Director Ferryman moved to approve the Consent Calendar as presented. Director Ooten
seconded the motion. Motion carried 5 -0.
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COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
REPORTS
MINUTE APPROVAL
Minutes of Sewer System Committee
Meeting —January 19, 2010
Minutes of Recycling Committee Meeting
— January 25, 2010
Minutes of the Regular Board of
Directors Meeting — January 28, 2010
Minutes of Special Closed Session
Meeting — February 2, 2010
Refunds
Occupancy Report and Payment of
$196,786.16 to Costa Mesa Disposal —
February 2010
Monthly Spill Report to State Water
Resources Control Board
Waste Diversion Report for January
2010
PAGE 2
The Minutes of the Sewer System
Committee Meeting of January 19, 2010
were approved as distributed.
The Minutes of the Recycling Committee
Meeting of January 25, 2010 were
approved as distributed.
The Minutes of the Regular Board of
Directors Meeting of January 28, 2010
were approved as distributed.
The Minutes of the Special Closed Session
Meeting of February 2, 2010 were
approved as distributed.
There were no refund requests for the
month of January 2010.
The Trash Occupancy Count documented
a decrease of 8 units for the occupancy
report for solid waste collection as of
February 1, 2010. Therefore, the total for
January is 21,494 and the payment of
$196,786.16 was ratified.
The Monthly Spill Report to the State Water
Resources Control Board (SWRCB) for
February 2010 was accepted as submitted.
The Waste Diversion Report dated January
2009 was accepted as submitted.
Contract Payment of $156,799.95 to The contract payment of $156.799.95 to CR
CR Transfer — January 2010 Transfer for recycling services and disposal
for the month of January 2010 was ratified as
submitted.
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COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
Contract Payment of $9,366.70 The contract payment of $9,366.70 to CR
to CR Transfer — Santa Ana Transfer for recycling services and disposal
Heights /Newport Beach — January for Santa Ana Heights /Newport Beach for the
2010 month of January 2010 was ratified as
submitted.
Ordinance Enforcement Officer's
Report
ENGINEER'S REPORTS
Project Status Report
The Ordinance Enforcement Officer's Report
dated February 11, 2010 was accepted as
submitted.
The Project Status Report dated February
2010 was accepted as submitted.
Howard S. Wright Contractors Invoice The Howard S. Wright Invoice for work
in the amount of $89,661.80. performed through January 31, 2010 in the
amount of $89,661.80 was ratified as
submitted.
TREASURER'S REPORTS
Financial Report as of January 31,
2010
Treasurer's Report as of January 31,
2010
Warrant Register for the month of
February 2010 in the amount of
$1,052,312.51
Directors Compensation &
Reimbursement of Expenses for the
month of January 2010.
The Financial Report as of January 31, 2010
was accepted as submitted.
The Treasurer's Report as of January 31,
2010 was accepted as submitted.
Warrant Resolution #CMSD 2010 -08 was
approved, authorizing the President and
Secretary to sign the warrant ratifying the
payment of certain claims and demands, and
specifying the funds out of which the same
were paid in the amount of $1,052,312.51.
Director Compensation and Expense
Reimbursements for the month of January
2010 were approved and ratified as follows:
President Schafer: $1,326.00 + $144.08
Vice President Ooten: $1,326.00 + $128.50
Director Monahan: $442.00
Director Ferryman: $1,326.00 + $137.63
Director Perry: $1,105.00 + $169.25
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
C:
END OF CONSENT CALENDAR
WRITTEN COMMUNICATIONS
Ms. Revak presented the 2009 Annual Report for the Southern California Alliance of
Publicly Owned Treatment Works for the Board's perusal.
PUBLIC COMMENTS
President Schafer noted there were no public present and, therefore, no public
comments.
MANAGER'S REPORTS
STANDBY POLICY
Mr. Carroll reported on Staff's research on the possibility of revising the District's current
standby policy. Mr. Carroll recommended the Board of Directors approve repealing Rule
13, Section 2 of the District's Personnel Rules and Regulations and replacing it with the
revised policy presented. Mr. Carroll noted the District is not a large enough organization
to have a pool of standby employees and enforcing the District's standby policy would
create an unfair and inconsistent working condition and a possible hardship. Mr. Carroll
pointed out in the future, there may become a time when the District has to assign an
employee to be on a standby status. Mr. Carroll recommended revising the District's
existing policy to reflect current industry standards and to ensure compliance with the Fair
Labor Standards Act (FLSA).
Mr. Carroll noted the District will continue with its current practice of using C &R Drains as
its first responder for after hour service calls and the District's Maintenance Supervisor
will continue to be the secondary responder. The report along with the revised Standby
Policy was reviewed and approved by District Counsel.
Director Ooten motioned to approve the revised Standby Policy. Director Monahan
seconded the motion. Motion carried 5 -0.
RECYCLING COMMITTEE - MONDAY, FEBRUARY 22, 2010
Director Ooten reported on the Recycling Committee meeting held February 22, 2010.
Director Ooten provided a report on the Grant from the Regional Recycling and Waste
Diversion Grant program.
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COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
Ms. Revak reported award presentations at the schools have begun and will continue
through the month of March 2010.
Staff is working with Davis School on a "Waste Free" lunch program, encouraging
students to bring lunches with limited waste packaging going into the waste stream.
Trisha Throop gave a report on CR &R. A tour of the CR &R facility is scheduled for
March 11, 2010 at 10:00 a.m. and AJ Cully, Program Assistant, is organizing the tour.
Mr. Fauth requested the topic of the Td Annual Costa Mesa Community Run on April 23-
24, 2010 be addressed to enable Staff participation.
Director Ferryman moved to consider CMSD participation in the Costa Mesa Community
Run & Expo because the need arose after the agenda was posted and action needs to be
taken prior to the next Board meeting. Director Perry seconded the motion. Motion
carried 5 -0.
Director Perry moved to approve District participation in the Costa Mesa Community Run
& Expo being held on April 23 -24, 2010. Director Ferryman seconded the motion. Motion
passed 5 -0.
40 ENGINEER'S REPORTS
PROJECT #129 BRISTOL STREET SEWER CONSTRUCTION UPDATE
President Schafer announced the Closed Session on Project #129 will be held at the end
of the meeting.
PROJECT #101 - WESTSIDE PUMPING STATION UPDATE
Mr. Hamers provided the Board with an update on the Project #101 Westside Pumping
Station Abandonment that involves abandonment of six Costa Mesa Sanitary District
pumping stations.
The Orange County Sanitation District (OCSD) intends to begin a two to three year
design phase beginning July 1, 2010 followed by a two year construction schedule for the
regional Southwest Costa Mesa Trunk Sewer. The trunk sewer will allow the CMSD to
abandon six pumping stations, allow Newport Beach to abandon one pumping station,
allow abandonment of one private pumping station and alleviate the need for the north
half of the Banning Ranch to contain a pumping station upon its development.
Mr. Hamers stated previous CMSD estimates disclose the CMSD requires approximately
$2 -3 million to abandon its pumping stations. Project #101 West Side Pumping Station
Abandonment receives a yearly contribution of $250,000 from the yearly capital
improvement program and the 2010 -2011 fiscal year will be the 4 t" yearly contribution,
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
giving the CMSD the approximate funds necessary for abandonment of the President
Pumping Station and the Canyon Pumping Station, two largest pumping stations being
abandoned.
Mr. Hamers further informed the Board the 2010 -2011 Capital Improvement Program will
also include a proposal to begin project coordination, easement acquisition and
conceptual design with OCSD and the various agencies and entities involved, including
the City of Costa Mesa as owners of Canyon Park, the City of Newport Beach as owners
of one of the pumping stations to be abandoned and as owner of the transmission sewers
the CMSD desires to use for abandonment of the CMSD 19th Street Pumping Station, the
County of Orange as owners of the land where the City of Newport Beach and CMSD
sewers will connect to the OCSD trunk and the County as owners of the land where the
OCSD Southwest Costa Mesa Trunk Sewer will be located. Mr. Hamers will begin actual
design of the abandonment construction plans on July 1, 2011.
Mr. Hamers noted when the CMSD constructed the first leg of the abandonment sewer
system in the City of Costa Mesa's Canyon Park, environmental review was required and
Coastal Commission approval needed. Initial discussions with OCSD will include whether
an EIR is required and the lengthy timeframe within which this will be accomplished. It is
also possible resistance to the regional sewer may occur from environmental groups due
to the raw land nature of the area as well as from the standpoint of bringing up arguments
over whether the project is a precursor to extending 19th Street as it did when these
regional sewers were first discussed in the 1980s.
Staff is preparing the design cost for abandonment construction plans and will have this
proposal available to the Board during the Fiscal Year 2010 -11 budget review process.
The total amount saved to date for the President Pumping and the Canyon Pumping
Stations is $750,000.
PROJECT #182 ANALYSIS OF CCTV RESULTS
Mr. Hamers provided the Board with an update on Project #182, Analysis of CCTV
Results. The report resulted from analyzing the closed circuit television data acquired
during the OCSD Cooperative Projects Grant Program (CMSD #170). The project report
sets the stage for the yearly system wide repairs necessary to ensure the system works
efficiently and reaches its life expectancy without experiencing significant and expensive
failures.
The CMSD sewer system includes 216 miles of sewer mains, all of which were televised.
The report shows 239 reaches (manhole to manhole) each contained one or more Grade
5 structural ratings and another 34 reaches each contained one or more Grade 5
maintenance ratings thereby indicating 283 reaches are in need of immediate repair.
Is Ratings vary from one to five (1 -5) and Grade 5 ratings are considered severe and in
need of immediate repair. Grade 4 ratings Indicate the need for monitoring and future
repair.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
Mr. Hamers reported cost estimates shown in the project report indicate the first 30
reaches with structural deficiencies plus the first 30 reaches with maintenance
deficiencies can be repaired for a total of approximately $700,000, exclusive of staff time.
Director Ferryman commented on the large number of severe ratings needing immediate
repair and suggested repairing the sewer mains in a shorter period of time. Mr. Carroll
stated Staff would suggest a 3, 4 and 5 year plan in the budget process to finance the
repairs.
SEWER SYSTEM COMMITTEE
Director Monahan provided a report on the Sewer System Committee that met on
February 16, 2010 and reported there were no monthly spills. Jim Kolk of EEC provided
an update on the GIS to the Committee.
Director Monahan also reported on a couple of high rises coming forward and stated the
need for the District to revise fixture fees.
TREASURER'S REPORTS
Investment Oversight Committee
The Committee discussed the January 2010 Treasurer's Report. Mr. Davis
reported the District is on target in receiving property tax funds.
Budget Adjustment for District Yard
Mr. Davis stated additional funds in the amount of $283,142 are required for the
construction of the District Yard and provided a list of the line items requiring
additional funds.
Mr. Davis reported the original contingency budget was 2% of construction costs
and a more realistic contingency is 10% of construction costs. The additional costs
for the construction of the District Yard are being funded through transfers from the
Solid Waste and Liquid Waste Funds. The Solid Waste Fund has adequate
contingency funds available for fiscal year 2009 -10 from which the transfer can be
made. With this transfer, the Liquid Waste fund will only have approximately
$113,400 of unrestricted available funds remaining for the balance of the fiscal
year. Director Ferryman moved to transfer funds in the Solid Waste and Liquid
Waste Funds as recommended by Mr. Davis. Director Monahan seconded the
motion. Motion passed 5 -0
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COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
Budget Calendar for Fiscal Year 2010 -11
Mr. Davis presented the Budget Calendar for Fiscal Year 2010 -11 and requested
the Board set dates for a Special meeting to review the preliminary budget. The
Board set the Special meeting for Thursday, May 13, 2010 at 5:30 p.m. The Board
set the date for the public hearing to adopt sewer and trash charges on Thursday,
July 29, 2010 at 6:00 p.m. Ms. Revak will ensure the postcards notifying property
owners of the public hearing will be in the mail no later than June 14, 2010.
Budget Adjustment for Recycling Grant
Mr. Davis reported the District was successful in obtaining an Orange County
Waste and Recycling Cooperative Grant in the amount of $142,256 with the City of
Costa Mesa and the City of Huntington Beach participating. Director Ferryman
moved to approve the budget adjustment in the amount of $142,256 to recognize
the grant and provide an appropriation for grant - related expenses. Director
Monahan seconded the motion. Motion carried 5 -0.
ATTORNEY'S REPORTS
• Claim by Back Bay, Ltd. For Property at 2651 -1675 Irvine Avenue
(CMSD Project #168 — Irvine Pump Station Relocation)
Mr. Burns provided a progress report on the Back Bay litigation, indicating there
has been no breakthrough and the attorney handling the case has left the firm. Mr.
Burns will continue to monitor the progress, demand monthly progress reports,
and, when appropriate, provide input.
Ordinance Enforcement Officer— Proposed MOU
Mr. Burns provided an update on the progress of the efforts by the District and the
City to adopt a MOU with the City of Costa Mesa for code enforcement and
jurisdictional matters. Mr. Burns reported there has been no progress since the
last report. Mr. Burns will continue negotiating the MOU with the City of Costa
Mesa. Discussion ensued on using the City's code enforcement officers and civil
citation fines. The Board of Directors requested a presentation by Staff on the
subject of code enforcement officers and a citations.
Adoption of County's Version of Conflict of Interest Code to Allow Electronic
Filing — CMSD Resolution No. 2010 -775
Mr. Burns reported the Clerk of the Board of Supervisors has implemented an
. electronic filing system and requests those entities filing with the Clerk of the Board
of Supervisors adopt a new version of the conflict of interest code to implement
that electronic filing system.
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COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
Mr. Burns advised the Board of Directors the state legislature enacted the Political
Reform Act of 1974 which mandated, inter alia, that local government bodies adopt
conflict of interest codes that require disqualification and disclosure, including
annual reporting, of interests that constitute a financial conflict of interest. The
legislature adopted a model code that could be adopted by reference and which
would be automatically updated as the state amended the model code. The
District adopted that model code.
The Clerk of the Board of Supervisors is the designated filing officer for the annual
statements that must be filed. That Clerk has instituted an electronic filing system
and has asked those entities that file with the County to adopt their version of the
model code so she can assure consistency. This resolution does so. There is no
need to amend the District Operations Code as it merely recites that we have
adopted the state model code.
The state law also provides that code adopting agencies review their codes on a
biennial basis to verify that the designated employees that are listed as being
subject to reporting are appropriate, as well as their disclosure categories. This
action will also serve to constitute our biennial review.
Director Monahan moved to adopt CMSD Resolution No. 2010 -775. Director Perry
• seconded the motion. Motion passed 5 -0.
Mr. Fauth requested the topic of the District web site be addressed to enable Staff to go
forward in getting the CMSD web site up and running. Director Monahan moved to
consider the District web site because the need arose after the agenda was posted and
action needs to be taken prior to the next Board meeting. Director Ooten seconded the
motion. Motion carried 5 -0.
Mr. Fauth presented the options available for the web site and requested the Board
provide direction in going forward. Mr. Carroll recommended getting the web site up and
running and during the budget process to allocate funds to enhance the process. The
Board of Directors agreed on this approach.
Director Ooten requested the Board consider a non - agenda item because the need arose
after agenda posting and action needs to be taken prior to the next Board meeting.
Director Ferryman moved to consider the non - agenda item. Director Monahan seconded
the motion. Motion carried 5 -0.
Director Monahan moved to approve Director Ooten's attendance at a Solid Waste
meeting in Arcadia on March 19, 2010. Director Perry seconded the motion. Motion
carried 5 -0.
• It was noted the Sewer System Sub - Committee is scheduled to meet on March 19, 2010
and Director Ferryman will attend in place of Director Ooten.
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COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
Director Ferryman informed the Board he is no longer the Vice Chairman of the
Ground Water Replenishment Committee, although he still serves on the Steering
Committee. Director Ferryman stated no other business significant to the Costa
Mesa Sanitary District was discussed.
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry stated there was nothing to report.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC)
Director Ooten reported on the ISDOC Quarterly meeting held at 11:30 a.m. on
February 25, 2010.
LOCAL AGENCY FORMATION COMMITTEE ( LAFCO)
Director Schafer reported the agenda consisted of LAFCO office matters.
ORANGE COUNTY COUNCIL OF GOVERNMENTS
There was nothing to report on OCCOG.
CHAMBER OF COMMERCE
There was nothing to report on the Chamber of Commerce.
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA)
President Schafer reported on progress in planning for the CSDA conference being
held in Newport Beach in September 2010.
CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA)
There was nothing to report on CASA.
OLD BUSINESS
There was no old business to discuss.
• NEW BUSINESS
There was no new business to discuss.
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COSTA MESA SANITARY DISTRICT PAGE 11
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 25, 2010
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Director Monahan reported no decision has been made on the Orange County
Fairgrounds and the City is in daily contact with the Governor to pursue some kind of local
control by the City of Costa Mesa (CCM) and Orange County.
Director Monahan reported stimulus money coming through is for low income /senior
housing, however, there are so many federal regulations to go through and by the time
the City goes through them, it is too late to use the funds.
CCM budget review was held with Staff projecting a $4.6M hit to unrestricted reserves
after $22M in cuts last year. More cuts will be necessary.
CLOSED SESSION
President Schafer adjourned the meeting to a Closed Session at 7:50 p.m.
The Closed Session was adjourned at 8:20 p.m.
• President Schafer re- opened the regular meeting and reported direction was given
regarding the anticipated litigation.
President Schafer adjourned the meeting at 8:21 p.m.
Seer tary r
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