Minutes - Board - 2011-11-30u
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
NOVEMBER 30, 2011
CALL TO ORDER
PLEDGE OF
ALLEGIANCE
INVOCATION
ROLL CALL
DIRECTORS PRESENT:
DIRECTORS ABSENT:
The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
November 30, 2011 at 5:30 p.m. at 628 W.
19th Street, Costa Mesa.
Director Ferryman led the Pledge of
Allegiance.
Director Scheafer led the Invocation.
Robert Ooten, James Ferryman,
Mike Scheafer, Jim Fitzpatrick, Art Perry
STAFF PRESENT: Scott Carroll, General Manager; Joan Revak,
Office Manager /Clerk of the District; Robin B.
Hamers, District Engineer; Alan Burns,
District Counsel; Sherry Kallab,
Administrative Manager; Marc Davis,
Treasurer; Teresa Gonzalez, Accounting
Manager
OTHERS PRESENT
ANNOUNCEMENT OF LATE COMMUNICATIONS
Dean Ruffridge, CR &R
Debbie Morris, HF &H Consultant/Resident
® Ms. Revak provided a copy of Director Fitzpatrick's October 2011 expense reimbursement
form that was not included in the Board packet.
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COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD NOVEMBER 30, 2011
CONSENT CALENDAR
REPORTS
MINUTE APPROVAL
Minutes of Sewer System Committee The Minutes of the Sewer System Committee
Meeting — October 18, 2011 Meeting of October 18, 2011 were approved
as distributed.
Minutes of Recycling Committee Meeting
— October 24, 2011
Minutes of Regular Board Meeting —
October 27, 2011
ENGINEER'S REPORTS
Project Status Report
Occupancy Report and Payment of
$197,152.38 to Costa Mesa Disposal —
November 2011
The Minutes of the Recycling Committee
Meeting of October 24, 2011 were
approved as distributed.
The Minutes of the Regular Board Meeting of
October 27, 2011 were approved as
distributed.
The Project Status Report dated November
2011 was accepted as submitted.
The Trash Occupancy Count documented an
increase of one unit for the occupancy report
for solid waste collection as of November 1,
2011. Therefore, the total for November is
21,534 and the payment of $197,152.38 was
ratified.
Contract Payment of $156,768.11 to CR The contract payment of $156,768.11 to
Transfer — October 2011 CR Transfer for recycling services and
disposal for the month of October 2011 was
ratified as submitted.
Contract Payment of $9,923.37 The contract payment of $9,923.37 to CR
to CR Transfer — Santa Ana Transfer for recycling services and disposal for
Heights /Newport Beach — October 2011 Santa Ana Heights /Newport Beach for the
month of October 2011 was ratified as
submitted.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Warrant Register for the month of
October 2011 in the amount of
$597,153.29.
Directors Compensation &
Reimbursement of Expenses for the
month of October 2011.
Investment Report for the month of
October 2011.
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Warrant Resolution #CMSD 2012 -5 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 $597,153.29.
Director Compensation and Expense
Reimbursements for the month of October 2011
were approved and ratified as follows:
President Ooten: $1,326.00
Vice President Ferryman: $1,326.00 + $436.79
Director Scheafer: $1,326.00 + $308.19
Director Perry: $1,326.00 + $692.35
Director Fitzpatrick: $1,326.00 + $253.11
The Investment Report for the month of
October 2011 was approved as submitted.
END OF CONSENT CALENDAR
Director Ferryman moved to accept the Consent. Director Scheafer seconded the
motion. Motion carried 5 -0.
WRITTEN COMMUNICATIONS
Ms. Revak presented a written communication from the Special District Risk
Management Authority (SDRMA) providing the 2011 election results. The
successful candidates were Ed Gray (Chino Valley Independent Fire District),
Sandy Raffelson (Herlong Public Utility District) and Terry Burkhart (Bighorn -Desert
View Water Agency.
PUBLIC COMMENTS
President Ooten invited public comments. There were no public comments.
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COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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GENERAL MANAGER'S REPORTS
BOARD OF DIRECTORS' HEALTH BENEFITS
Mr. Carroll reported on his research and survey of special district's cost for health
benefits for Directors. Under the Public Employees' Medical and Hospital Care Act
( PEMHCA), government agencies are required to pay a portion of public employees
and elected officials health premiums. PEMHCA specifically states: "In order to
participate, public agencies must agree to the regulations covering provisions of the
benefits under PEMCHA. A key consideration is that the employer must agree to
provide access to the health benefits to both active employees and annuitants on
an equal basis. This means the employer is required to make specified and equal
contributions towards premium costs for active employees and annuitants. The
contribution levels are set in statute."
Mr. Carroll provided a recent survey conducted by the Orange County Grand Jury.
More than half of the eighteen special districts surveyed, are paying health
insurance for their board of directors. The insurance costs ranged from a low of
$3,796 (El Toro Water District) to a high of $18,077 (Trabuco Canyon Water
District). The average insurance cost for directors in Orange County is $9,629,
which is more that the total costs for all five CMSD Directors to enroll in the
District's health insurance plan.
Mr. Carroll stated the CalPERS Health Insurance Plan is available to employees
enrolled in a non -PERS retirement plan. The minimum cost of the District
contribution for Board members in our 457 Plan will be $1.00 per month per Board
member. The total annual costs to the District will be $60.00. Each year the
contribution increases 5 %. The total annual contribution in 35 years would be
$315.20 and the total contribution amount over the entire 35 year period would be
$5,419.22. Mr. Carroll stated there is sufficient money in the FY- 2011 -12 Budget to
pay for these expenses.
Director Perry moved to approve Resolution No. 2011 -806. Director Scheafer
seconded the motion. Motion carried 4 -1 with Director Fitzpatrick dissenting.
AMENDMENT TO EEC AGREEMENTS
Mr. Carroll reported the District has two agreements with Environmental
Engineering & Contracting, Inc. (EEC), one for creating a district -wide Geographical
Information System (GIS) and a Computerized Maintenance Management System
(CMMS) and the other for implementing and enforcing the District's Fats. Grease
and Oil (FOG) program for food service establishments.
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EEC has finished creating a state of the art GIS for the District in support of our
sewer operations and maintenance. The system can create maps illustrating a
variety of different features to support District maintenance crew in the field such as
location of manholes as well as manholes that are plugged and sealed, lateral
location, cleaning analysis, etc. The GIS is currently live and being utilized;
however, the system is currently on EEC's network server. EEC is planning on
transferring the GIS to the District network server, and staff is scheduled to receive
training on the system in the near future so that staff can access the system directly
from the office and eventually in the field. The GIS is a system that is a continual
work in progress that always needs updates to ensure the data is accurate. The
District does not have the staff or resources to support the GIS. In contrast, EEC
has on staff five GIS professionals that are trained and experienced in GIS. EEC
has submitted a proposal to support the District utilizing GIS on an as needed basis
and for requested work that is not identified in the original agreement. The proposal
also includes inputting the sewer main centerline data so that it reflects the same
centerline information found in the Legacy Atlas.
The CMMS is an electronic work order system that will enable staff to accurately log
and maintain work history of the District's sewer system. It will also enable staff to
generate new work orders and it can track staff's efficiencies in completing said
work orders. The CMMS operates in conjunction with the GIS and is an integral
part to ensuring our sewer system is operating effectively and efficiently.
FOG Program
EEC is responsible for developing and managing the District's FOG program at
food service establishments (FSE), which includes enforcement procedures. For
the past year, staff and EEC has been working with South Coast Plaza (SCP)
management to reduce the hydrogen sulfide odors emitting from the District's
pumping station located on SCP property. Preliminary results from a study
conducted by EEC have demonstrated that when an FSE applies certain additives
and /or chemicals into its grease interceptor, sulfide levels have diminished. Now,
we want to expand the study to all restaurants at SCP to demonstrate their high
sulfide levels do not comply with District code and then offer solutions to comply.
The FSEs will be responsible for the monthly costs to apply additives and /or
chemicals into their grease interceptors. EEC has submitted a proposal to expand
the study to all restaurants at SCP.
Vice President Ferryman moved to approve both the First Amendment to the
GIS /CMMS Agreement and the Second Amendment to the FOG Agreement.
Director Perry seconded the motion. Motion carried 5 -0.
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ORDINANCE PROHIBITING UNAUTHORIZED USE OF TRASH CONTAINERS
Mr. Carroll presented Ordinance No. 87, prohibiting unauthorized use of trash
containers. District Staff has received numerous complaints regarding
inappropriate or unauthorized use of trash containers in the community. This
ordinance will allow the CMSD to assist those who wish to address the misuse
through a formal process. Residents must provide proof of the violation through
pictures or video submitted to the CMSD office. A citation can also be issued if the
CMSD Code Enforcement Officer witnesses the incident.
Vice President Ferryman moved to adopt CMSD Ordinance No. 87. Director Perry
seconded the motion. Motion carried 5 -0.
CONTRACT ADMINISTRATION /INSPECTION SERVICES FOR PROJECT #129 - BRISTOL
STREET SEWER - PHASE 2.
Mr. Carroll reported bids were opened for Project #129 — Bristol Street Sewer
Phase 2 on October 25, 2011. In addition to the construction contract, the District is
required to contract out for the contract administration /inspection services to
successfully administer this project. Robin B. Hamers & Assoc., Inc. submitted
such a proposal for $40,929.
More than two years ago, the rezoning of the east Santa Ana Heights area as part
of the John Wayne Airport land use plan required the District to upsize the existing
sewer line to provide additional capacity. This project is the last phase to replacing
the sewer main on Bristol Street. The first phase, along with all the planning and
designing phases was administered by Robin B. Harriers & Associates (RBH). His
history and knowledge of these improvements make RBH the ideal firm to
administer the contract for Phase 2.
Mr. Hamers graciously reduced his original proposal to provide
administration /inspection services from $49,640 to $40,929, which is a savings of
$8,711. RBH revised proposal is also below the Orange County Development
Agency's (OCDA) allocation of $44,518 for administration cost of this project.
OCDA is funding this project.
ZERO WASTE STRATEGIES
Mr. Carroll reported the Board of Directors held a special meeting on November 2,
2011 to discuss zero waste strategies. The Board identified several issues related
to zero waste and directed Staff to bring back the list of issues to prioritize at a
regular Board meeting.
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COSTA MESA SANITARY DISTRICT PAGE 7
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Issues to be prioritized are:
Public Opinion Survey
Formulate a Zero Waste Plan
Anaerobic Digestive System
Variable Rate Study
Organics Program
A Special meeting is scheduled for Wednesday, December 14, 2011 at 10:00 a.m.
to formulate zero waste strategies.
RECYCLING COMMITTEE
The Recycling Committee meeting met on November 14, 2011. Director Fitzpatrick
and Vice President Ferryman attended and gave a report on the meeting.
ENGINEER'S REPORTS
PROJECT #129 - BRISTOL STREET, PHASE 2 - BID OPENING & RECOMMENDATION
Mr. Hamers reported on the bid opening and recommendation for award of the
construction contract for Project #129. Staff recommendation is to award a contract
to the lowest responsive and responsible bidder, Repipe-CA, Inc. In the amount of
$299,700.00; to approve a 10% contingency budget of $29,970 and approve a
$25,000 deposit to the City of Newport Beach to fund overtime inspection costs.
Bids were opened on October 25, 2011 and the low bidder was Repipe -CA, Inc. at
$299,700. The Engineer's estimate was $386,500. Staff recommended awarding
the bid to Repipe -CA, Inc.
Mr. Hamers stated, upon completion of the project, the Orange County
Development Agency (OCDA) agreed to reimburse the District up to $449,643,
with the reimbursement broken down to include up to $405,125 for construction
costs and $44,518 for administration costs. No District funding will be required for
this project. The District funds budgeted for this project in the amount of $134,117,
will be reallocated into the District's asset management fund.
Vice President Ferryman moved to award contract for Project #129, Bristol Street,
Phase 2 to Repipe -CA in the amount of $299,700.00, to approve a 10%
contingency budget of $29,970 and approve a $25,000 deposit to the City of
Newport Beach to fund overtime inspection costs. Director Perry seconded the
motion. Motion carried 5 -0.
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PROJECT #189 - REHABILITATION OF SIX SEWERS TRANSFERRED TO CMSD
Mr. Hamers presented an oral report on the South Coast Drive Sewer.
PROJECT #193 - SEISMIC STUDY AND RETROFIT FOR PUMPING STATIONS
Mr. Hamers reported the District retained structural engineer Jerry Tucker to
perform a seismic study of the District's sewer pumping stations and make
recommendations for retrofitting certain components to provide protection against
major earthquakes. Mr. Hamers provided a review and recommendation regarding
these protection measures.
The District's General Manager placed out for a Request for Proposal (RFP) a
seismic study and retrofit of the District's pumping stations as a means to lessen
the District's vulnerability to a 6.0 magnitude or greater earthquake. The study was
awarded to the only RFP submitted, long -time local structural engineer Jerry Tucker
of JTA Consulting Structural Engineers of Costa Mesa.
Director Perry moved to authorize the General Manager to implement Priority I
(secure the above ground electrical enclosures), Priority II (provide back -up power),
® and Priority III (provide flexibility to withstand earth movement) now and implement
Priority IV (provide additional support for pumping stations in liquefaction zones)
and Priority V (secure together concrete grade rings in pumping station manhole
openings) in the future. Vice President Ferryman seconded the motion. Motion
carried 5 -0.
SEWER SYSTEM COMMITTEE
President Ooten reported on the Sewer System Committee meeting held on
November 8, 2011.
An update on all CMSD projects was provided.
TREASURER'S REPORTS
Mr. Davis had nothing to report.
ATTORNEY'S REPORTS
STANDING COMMITTEES
Mr. Burns presented CMSD Resolution No. 2011 -805, Establishing Standing
Committees. Director Perry moved to adopt CMSD Resolution No. 2011 -805,
is Establishing Standing Committees. Director Scheafer seconded the motion.
Motion carried 5 -0.
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COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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CLERK OF THE DISTRICT REPORTS
2011 SCHOOL TELEPHONE BOOK RECYCLING PROGRAM
Ms. Revak provided the Board with a report on the 2011 School Telephone Book
Recycling Program. The 2011 program will run from November 14 through
December 16, 2011 with eighteen public and private schools participating.
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
Director Ferryman attended the OCSD meeting held on
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry reported on the Santa Ana River Flood Protection Agency
held on Thursday, November 10, 2011 at 4:00 p.m.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC)
® Vice President Ferryman moved to approve membership dues for 2012 in
the amount of $200.00. Director Scheafer seconded the motion. Motion
carried 5 -0.
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA)
Director Perry moved to approve membership dues for 2012 in the amount of
$4,581.00. Director Ferryman seconded the motion. Motion carried 5 -0.
OLD BUSINESS
There was no old business discussed.
NEW BUSINESS
NEW BUSINESS
INCOMPATIBILITY OF OFFICE BETWEEN COSTA MESA SANITARY DISTRICT AND MESA
CONSOLIDATED WATER DISTRICT
Director Perry referred to a confidential memo presented to the Board by District
Counsel. Director Fitzpatrick stated the new business to discuss should be limited
® to the incompatibility of office between the Costa Mesa Sanitary District and Mesa
Consolidated Water District. Discussion was held on the item as it relates to the
Mesa Consolidated Water District. Director Perry requested an item be placed on
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the December regular meeting agenda titled, "Incompatibility of Office regarding the
City of Costa Mesa Planning Commission ". Mr. Perry stated he feels it is incumbent
upon the Board to receive District counsel advice on this subject. Another firm has
provided information on this subject. President Ooten stated he has requested
information from Mr. Burns on this subject as it relates to holding office on the
CMSD and the City of Costa Mesa Planning Commission. Vice President Ferryman
stated his opinion that the Board would be remiss in their duties as representing the
Costa Mesa Sanitary District if they did not obtain professional advice on the
subject.
Mr. Burns stated to make a determination in the matter of Incompatibility of Office
requires permission of the State Attorney General to file a quo warrento action
which is then presented to the Superior Court.
Director Fitzpatrick stated his objection to the matter of incompatibility of office as it
relates to the Planning Commission.
Director Scheafer stated he was concerned about the lack of decorum. He further
stated if there is a "gray" area, it should be determined by the Board to clear the
area up; and it is the prudent thing to do.
Mr. Burns stated that, based on the Attorney General's reasoning, there is
substantial likelihood that the office of the City of Costa Mesa Planning Commission
and the Costa Mesa Sanitary District Board of Directors would be found
incompatible by the Attorney General but that would only confer permission to file
the quo warranto action. The ultimate decision would be made by a Superior Court
judge.
Director Perry stated again his request to place the item of "Incompatibility of Office
between the City of Costa Mesa Planning Commission and Director of the Costa
Mesa Sanitary District" as well as possible expenditures related to the topic on the
December 15, 2011 agenda.
Mr. Burns stated that he has a proposal from Meyers Nave for pursuing a quo
warranto action.
Director Fitzpatrick motioned to receive and file the new business topic of
"Incompatibility of Office between the Costa Mesa Sanitary District and Mesa
Consolidated Water District." President Ooten seconded the motion. Motion carried
3 -2.
Director Fitzpatrick requested approval for funds to seek his own proposals on the
is topic of incompatibility of office. He stated this topic is an attack on him, personally.
COSTA MESA SANITARY DISTRICT PAGE 11
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Director Scheafer stated he is looking for a decision on whether it is an issue, and if
the Board should go forward; and it is not an attack against Director Fitzpatrick.
President Ooten stated the proposal is to have a discussion of Alan Burns'
December 30, 2010 memo, and for the Board to be given an idea of cost of going
forward with the topic of incompatibility of office.
Mr. Burns stated if the Board decides to go forward with the topic, he would not be
comfortable presenting the quo warranto action against one of the Board members.
Director Fitzpatrick stated there is not sufficient time for him to get an opinion in the
next two weeks and asked what action was expected from the Board and if only
one legal opinion would be presented.
Director Ferryman stated Director Fitzpatrick could pick out another attorney than
Meyers Nave and have them send the Board an opinion.
Mr. Burns asked Director Fitzpatrick what he was proposing. Director Fitzpatrick
stated alternative opinions have been presented.
Director Perry stated the question is whether a person can hold a City planning
commissioner office and the role of a Director on the Costa Mesa Sanitary and not
an attack on Director Fitzpatrick; and this is what the Board wants to resolve.
Director Fitzpatrick stated the City has the same information and they are not
spending money on it and reappointing me to a commission position over there.
Director Fitzpatrick stated his opinion is that this issue was never about a run for
Mesa Consolidated. Director Fitzpatrick stated he was concerned hearing that time
and money was being spent with Alan Burns on Director Fitzpatrick and hiring
Meyers Nave for an opinion on Director Fitzpatrick's compatibility to hold offices for
the City of Costa Mesa and the Costa Mesa Sanitary District.
Director Scheafer stated in the election he was supported by residents who expect
him to resolve a conflict and if there is a gray area Director Fitzpatrick should want
the conflict resolved. Director Scheafer stated it was the prudent thing to do.
Director Scheafer requested to place the item of "Incompatibility of Office between
the City of Costa Mesa Planning Commission and Director of the Costa Mesa
Sanitary District" as well as "possible expenditures related to the topic" on the
December 15, 2011 agenda. Director Ferryman seconded the motion. Director
Fitzpatrick abstained from the vote. Measure was approved 4 -1.
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Director Fitzpatrick stated it is his opinion that it is a rush to judgment. Director
Fitzpatrick stated that he renews his concern that bringing one option by one
Director, the Board is depriving themselves of a fair and unbiased and in its entirety
decision to not look at other alternatives, to only look at. Director Fitzpatrick stated
the City does not see it as a problem.
Director Fitzpatrick stated, based on this matter, page 21 of Section 3.1 of the
Operations Code warrants further review and requested it be placed on the January
2012 agenda for discussion.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Director Perry moved to add to the December 15, 2011 regular agenda the item
"Discuss Incompatibility of the City Planning Commission position and the Costa
Mesa Sanitary District Director position and possible expenditure of funds to
ascertain the answers to the questions regarding incompatibility and to include the
Meyers Nave proposal for pursuing a quo warranto action."
Director Fitzpatrick asked for additional time and that he feels it is a gray area and
requires more time to explore the issue that he feels he is being called into
question, and feels he is convicted before he has an opportunity to defend himself.
President Ooten stated a decision of the Board to expend money to further discuss
this topic is part of the agenda item.
Director Scheafer stated he is looking for a discussion on December 15, 2011 of the
findings on this subject at which time it would be decided to go further with the
matter and costs involved.
President Ooten stated the item is for the Board to have a discussion of Attorney
Burns December 30, 2010 memo and given an idea of the cost of proceeding with
the matter, and determine whether to go forward with this matter.
President Ooten requested the item "Discussion of General Manager's Evaluation"
be placed on the next agenda. President Ooten will prepare an evaluation based
on input from the other Directors.
Mr. Carroll informed the Board and Staff that Friday, December 9, 2011 is Sherry
Kallab's last day and a breakfast is being held on Thursday, December 8, from 9:00
to 11:00 a.m. at Mimi's Cafe on Harbor Blvd. where she will be honored, and
awards will be presented to Staff.
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ADJOURNMENT
President Ooten adjourned the meeting at 9:06 p.m.
Secrets President
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