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Minutes - Board - 2011-03-24• • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 24, 2011 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on March 24, 2011 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF Director Ferryman led the Pledge of ALLEGIANCE Allegiance. INVOCATION A moment of silence was held. ROLL CALL DIRECTORS PRESENT: Robert Ooten, James Ferryman, Jim Fitzpatrick, Art Perry DIRECTORS ABSENT: Mike Scheafer was absent and excused. STAFF PRESENT: Scott Carroll, General Manager; Joan Revak, Office Manager /Clerk of the District; Robin B. Hamers, District Engineer; Alan Burns, Legal Counsel; Sherry Kallab, Administrative Manager; Jacque Rogers, Assistant to Treasurer OTHERS PRESENT Dean Ruffridge, Vice President, CR &R Inc. Patrick Schiavo, Consultant, CR &R. Inc. Thomas Fauth Costa Mesa Karin De Jauregui • San Diego • COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 ANNOUNCEMENT OF LATE COMMUNICATIONS Ms. Revak reported there were no late communications. CONSENT CALENDAR REPORTS MINUTE APPROVAL Minutes of Sewer System Committee The Minutes of the Sewer System Committee Meeting — February 15, 2011 Meeting of February 15, 2011 were approved as corrected. Minutes of Recycling Committee Meeting The Minutes of the Recycling Committee February 22, 2011 Meeting of February 22, 2011 were approved as distributed. Minutes of Regular Board Meeting — February 24, 2011 FINANCIAL REPORTS Refunds Occupancy Report and Payment of $197,097.45 to Costa Mesa Disposal — February 2011 Contract Payment of $143,232.12 to CR Transfer — February 2011 Contract Payment of $8,352.07 to CR Transfer — Santa Ana • Heights /Newport Beach — February 2011 The Minutes of the Regular Board Meeting of February 24, 2011 were approved as distributed. There were no refund requests for the month of February 2011. The Trash Occupancy Count documented an increase of four units for the occupancy report for solid waste collection as of March 1, 2011. Therefore, the total for February is 21,528 and the payment of $197,097.45 was ratified. The contract payment of $143,232.12 to CR Transfer for recycling services and disposal for the month of February 2011 was ratified as submitted. The contract payment of $8,352.07to CR Transfer for recycling services and disposal for Santa Ana Heights /Newport Beach for the month of February 2011 was ratified as submitted. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 • Warrant Register for the month of February 2011 in the amount of $793,610.31 Directors Compensation & Reimbursement of Expenses for the month of February 2011. • Investment Report for the month of February 2011 ENGINEER'S REPORTS Project Status Report PAGE 3 Warrant Resolution #CMSD 2011 -9 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 $793,610.31. Director Compensation and Expense Reimbursements for the month of February 2011 were approved and ratified as follows: President Ooten: $1,326.00 + $12.75 Vice President Ferryman: $1,326.00 + $4.08 Director Scheafer: $1,326.00 Director Fitzpatrick: $1,326.00 Director Perry: $1,326.00 The Investment Report for the month of February 2011 was approved as submitted. The Project Status Report dated February 2011 was accepted as submitted. END OF CONSENT CALENDAR Ms. Revak requested the February 14, 2911 Sewer System Committee meeting minutes be corrected on page 4 under "Recent % of Rain Ingress into Sewer System ", to read "OCSD's model is showing 4 — 16% rain ingress. Vice President Ferryman moved to accept the Consent Calendar. Director Perry seconded the motion. Motion carried 4 -0. U COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 WRITTEN COMMUNICATIONS Ms. Revak presented a letter from CR &R, Incorporated dated March 15, 2011 in which it was stated they would not ask for a rate adjustment this year and, therefore, will not have an increase for the fifth year. They continue to replace their collection fleet with natural gas powered vehicles and will continue to characterize the CMSD waste stream to improve the diversion from their MRF processing. Ms. Revak presented a letter from the Costa Mesa Chamber of Commerce thanking the District for their continued support and encouraged the District to contact the Chamber whenever they can be of service. Ms. Revak presented a letter from the Principal of Paularino Elementary School expressing their appreciation for the $300 earned by the school by participating in the District's telephone book recycling program. Ms. Revak also presented a letter from Kline School thanking the District for the $1,500 check for participation and being the first place winner in the District's telephone book recycling contest. • PUBLIC COMMENTS President Ooten requested any public comments and asked Mr. Fauth if he would like to discuss the appeal of his dismissal. Mr. Fauth introduced Karin De Jauregui, a non - practicing (inactive) attorney. Mr. Burns stated the Board of Directors is not aware of any facts or details of Mr. Fauth's termination and they will not be heard at this time. Mr. Burns stated, as one of the vested rights' employees coming over from the City of Costa Mesa, Mr. Fauth is entitled to a hearing as he has a vested property right to his job. Mr. Burns stated some of the Board participated in a previous hearing and the length of that hearing was one day. A time estimate from each side on the length of such a hearing was requested and Mr. Carroll stated it would take at least one day and a maximum of two days. Ms. De Jauregui stated she would like to discuss the range of options. Ms. Jauregui stated Mr. Fauth denies the allegations, and stated she is present as, Mr. Fauth is not in a condition to fight at this point and would prefer not to go through the same process again for reasons of the cost of a hearing to both parties. Ms. De Jauregui stated Mr. Fauth dedicated over ten years of service to the District, he had a strong performance review record and his personal motto is to do the right thing at the right time, for the right reasons, and fully intended to serve the District as well as he could until he retired. Ms. De Jauregui requested instead of a trial that the Board hold a "mediation" and try to reach an honorable resolution of this situation. Ms. De Jauregui stated a mediation type of process could meet everyone's needs rather than spend the amount of time and cost as previously took place. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 r1 U Ms. De Jauregui stated her career has included mediation type processes and in her opinion better resolutions are reached through mediation. Mr. Burns requested a time estimate if the Board chooses to go forward with a hearing and Ms. De Jauregui did not have a time estimate. Mr. Burns stated the Board needs to have a plan of whether it chooses to go forward with a hearing or a mediation. Mr. Burns explained a mediation would involve a third party who would attempt to get two people to agree, it's not binding, it is more like getting two sides to agree. There would be an outside mediator and would probably include Mr. Fauth and Mr. Carroll. Ms. De Jauregui stated she felt it should include the Board as well. Mr. Burns stated that would involve Brown Act issues, and it would have to be an open session mediation. Vice President Ferryman asked what kind of product the Board would be expected to produce. Mr. Burns said this would be working toward a settlement so then you would have to try to settle without the facts of what Mr. Fauth did or did not do wrong. Mr. Burns stated the Board could choose to set a hearing some weeks out and obtain a waiver from Mr. Fauth for any back pay. Mr. Burns stated if the Board chooses the mediation approach it will slow down the process. Mr. Hamers asked if two Board members were involved in the mediation does it mean the hearing body is hearing the evidence for the first time, would it take them away from being part of the hearing body and Mr. Burns answered that it could. The Board could hire a hearing officer through the State Administrative Appeals Board or hire a mediator agreed to by the Board and Mr. Fauth. Mr. Burns stated the District does not have a formalized system as there were only a few employees brought over from the City of Costa Mesa. Vice President Ferryman stated, practically speaking, Mr. Carroll wouldn't have gone as far as he did, without being sure of his action. President Ooten stated in his opinion a mediation is an attempt to work out a settlement and asked if Mr. Fauth is open to a settlement. Mr. Burns did not know if Mr. Carroll and Mr. Fauth have had any settlement discussions, but that doesn't mean it couldn't happen if the Board so desires. Mr. Fauth concurred there have been no discussions of a settlement but he is open to a settlement. Ms. De Jauregui stated her opinion that It would be in the best interests of both parties at the very least to sit down and talk rather than bringing out mud - slinging to get to an end result. Mr. Burns stated he understood from Mr. Carroll that it would take about six weeks for counsel to be available to put on this matter which leaves some time for the parties to discuss a settlement. is COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 • Mr. Burns stated the Board could explore mediation while setting a hearing date for six weeks out and authorizing the Manager to meet with Mr. Fauth to explore settlement or to use his contractual authority within his limits to hire a mediator and if that does not work, a date is set for a hearing that will make findings of fact and the Board will review the record produced and after the hearing concludes on, the Board will make a decision about discipline based upon the written record. Mr. Burns stated a decision should be made about how the District will proceed. Director Fitzpatrick questioned the process if it goes to mediation, and there is agreement, it would come back to the.Board for approval and Mr. Burns replied in the affirmative and stated if it did not, the Board could then be the hearing body. Director Fitzpatrick stated he would not be able to make a two - day commitment six weeks out. Director Fitzpatrick asked who the hearing officer would be. Mr. Burns stated a hearing officer would be a lawyer /judge -type person. It would be about evidence — a lay person with knowledge of the law and what occurred would have to be proved. The record produced and the decision is then reviewable, if there is a challenge within 90 days, by a Superior Court judge. He would review and make sure the District has the legal weight of evidence to support whatever decision has been made. If the judge were to find it was wrong, the judge can overturn the decision of the Board. If the Board hires a hearing officer, Mr. Burns would not be involved in the hearing and the District would save on his cost. Mr. Burns would then advise the Board based on the opinion of the hearing officer. The decision is whether the Board wants to hear the case or retain a hearing officer at some expense. Mr. Carroll stated if a hearing officer is retained the cost typically is $2,400 /day and typically is split by the two parties. It was proposed that Mr. Carroll and Mr. Fauth set a date to sit down and try to work out a resolution. Ms. De Jauregui requested she be present at the meeting and the Board and Counsel agreed. Director Fitzpatrick requested an estimate on what the costs of a hearing might be. Mr. Carroll stated the cost estimate of a two -day hearing would be about $30,000. Director Ferryman moved to direct Mr. Carroll to proceed with settlement discussions, and mediation, if necessary, and if those efforts do not produce an agreement between the parties that can be submitted to the Board for approval, a hearing by the Board will be held Tuesday, May 10 and Wednesday, May 11, 2011. Director Perry seconded the motion. Motion carried 4 -0. Mr. Fauth thanked the Board and Staff for their consideration. 0 COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 GENERAL MANAGER'S REPORTS PAGE 7 PROHIBITING THE USE OF EXPANDED POLYSTYRENE (COMMONLY KNOWN AS STYROFOAM) IN DISTRICT FACILITIES AND DISTRICT - SPONSORED EVENTS Mr. Carroll presented a policy prohibiting the usage of expanded polystyrene (commonly known as Styrofoam) in District facilities and at District - sponsored events. Mr. Carroll explained the purpose of the proposed policy is to reduce the amount of polystyrene foam that enters the waste stream and promote zero waste strategies. By prohibiting the use of such products within District facilities and at District-sponsored, events demonstrates the District's commitment and leadership to protecting the environment. Vice President Ferryman moved to adopt Administrative Regulation No. 10.00. Director Perry seconded the motion. Motion carried 4 -0. SPRINGBROOK CONFERENCE MAY 2011 Mr. Carroll recommended approval by the Board for attendance of Teresa Gonzalez and Kaitlin Tran to the 2011 Springbrook Software • Client Conference May 2 -5, 2011 in Portland, Oregon. The CMSD Operations Code Section 3.02.070 Staff Expenses requires prior Board approval for Staff to travel out of state for conferences, meetings, seminars or related matters. Springbrook is the District's accounting software provider and they hold an annual conference in Portland, Oregon. Director Perry moved to approve attendance by CMSD employees Teresa Gonzalez and Kaitlin Tran at the 2011 Springbrook Software Client Conference May 2 -5, 2011 in Portland, Oregon. Director Ferryman seconded the motion. Motion carried 4 -0. RECYCLING COMMITTEE Director Fitzpatrick reported on the Recycling Committee meeting held on March 21, 2011. Mr. Patrick Schiavo, CR &R Consultant presented insights in the trash industry including the waste characterization study, diversion rate and the recycling report generated by CR &R. Mr. Schiavo will capture this data in writing and submit it to the CMSD Board of Directors. Director Fitzpatrick reported the Recycling Goals will be coordinated with the Strategic Plan. • Director Fitzpatrick reported the Committee discussed going to the . option of two call -in large item pickups instead of offering the summer large item collection and will consider in 2012. This should eliminate a great deal of scavenging. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 • The Enforcement Officer's report was presented. Director Fitzpatrick stated the next meeting date for the Recycling Committee is April 25, 2011. ENGINEER'S REPORTS PROPOSED EMERGENCY SERVICES AGREEMENTS FOR TWO TRAFFIC CONTROL COMPANIES Mr. Hamers stated the District's emergency response plans include implementing traffic control to insure workplace safety and to satisfy the requirements of the governing agencies owning the streets where District sewers are located. These agencies include the Cities of Costa Mesa and Newport Beach, the County of Orange and Caltrans. Mr. Hamers stated to properly design and implement traffic control during an emergency, Staff recommends executing the CMSD standard emergency services agreements with two local traffic control companies, Coastal Traffic Systems and California Barricade. . Vice President Ferryman moved to approve the recommendation of executing the Emergency Service Agreements with Coastal Traffic Systems and California Barricade. Director Perry seconded the motion. Motion carried 4 -0. SEWER SYSTEM COMMITTEE Director Ooten reported on the Sewer System Committee meeting held March 15, 2011 with all five Directors participating. TREASURER'S REPORTS Ms. Rogers stated she had nothing to report. ATTORNEY'S REPORTS Mr. Burns stated he had nothing to report. • COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 CLERK OF THE DISTRICT REPORTS RESOLUTION NO. 2011 -793, NOMINATING MICHAEL SCHEAFER AS A CANDIDATE FOR ELECTION TO THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA) BOARD OF DIRECTORS Ms. Revak provided CMSD Resolution No. 2011 -793, Nominating Michael Scheafer as a Candidate for Election to the Special District Risk Management Authority (SDRMA) Board of Directors. Director Perry moved to adopt CMSD Resolution No. 2011 -793, Nominating. Michael Scheafer as a Candidate for Election to the Special District Risk Management Authority (SDRMA) Board of Directors. Vice President Ferryman seconded the motion. Motion carried 4 -0. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) Director Ferryman did not attend the OCSD meeting held on March 23, 2011. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry reported on the March 24, 2011 meeting of the Santa Ana River Flood Protection Agency. OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT Director Fitzpatrick reported attending the Huntington Beach City Council meeting, where they voted to increase the trash rate. OLD BUSINESS There was no old business to discuss. NEW BUSINESS COSTA MESA HISTORICAL SOCIETY ANNUAL MEMBERSHIP DUES IN THE AMOUNT OF $100 Vice President Ferryman moved to approve the payment to the Costa Mesa Historical Society of $100 for Annual Membership Dues. Director Perry moved to second the motion. Motion carried 4 -0. • • COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2011 • Discussion was held on the idea of holding a Board meeting at the Historical Society sometime in the future as the Board has done in the past. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS ADJOURNMENT President Ooten adjourned the meeting at 6:50 p.m. 1 44- Secretary • is Q41d'-at President