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Minutes - Board - 2009-08-270 • C Meeting Date Item Numbe 9/17/09 V.3. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 27, 2009 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on August 27, 2009 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. President Schafer called the meeting to order at 5:30 p.m. PLEDGE OF Director Ooten led the Pledge of Allegiance. ALLEGIANCE INVOCATION Mr. Fauth gave the invocation. ROLL CALL DIRECTORS PRESENT: Arlene Schafer, Robert Ooten, Gary Monahan, James Ferryman, Art Perry DIRECTORS ABSENT: None STAFF PRESENT: Donald McIntyre, Interim District Manager; Robin B. Hamers, District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Marc Davis, Treasurer; Teresa Gonzalez, Accountant; Sherry Kallab, Management Analyst; Karl Dulake, Maintenance Supervisor OTHERS PRESENT Jim Kolk, EEC, 501 Park Center, Santa Ana Sharon Williams, EEC, 501 Park Center, Santa Ana • COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 President Schafer announced she was selected as "President of the Year" by the California Special Districts Association and the award will be presented at the 2009 Annual Conference in September 2009. The Board and Staff applauded and congratulated President Schafer on the honor bestowed on her. President Schafer announced the Board would be convening to a Closed Session after a presentation of the annual report by Environmental Engineering & Contracting (EEC) staff on the FOG Control Program. Jim Kolk presented an overview of the FOG inspection program. The EEC Team consists of five staff members who provide a suite of FOG program services including development of FSE education materials; conduct routine FSE inspections and education; conduct follow -up compliance inspections; inspect data entry; and conduct FSE inspection prioritization and coordination. To date, EEC conducted 3250 inspections. EEC engaged in other FOG program support, coordinating enhanced maintenance location characterization activities with CMSD Staff and Contractors. EEC staff participated in Sewer System Sub - Committee assessment and repair prioritization activities with CMSD Staff. There have been nine hot spot repairs since 2007 with two additional hot spot repairs planned for 2009. EEC provided other FOG program support including car wash /water reuse systems and evaluation /consideration of alternate grease removal technologies. In summary, EEC continued FSE FOG education resulting in improved BMP compliance; elevated enforcement potentially needed for repeat non - compliance; activities resulting in mitigation of enhanced maintenance and SSO locations; and framework for residential outreach developed. Looking ahead to 2009 -2010, EEC plans continued FSE education; potential for elevated enforcement for repeated non- compliance; continued enhanced maintenance location and SSO mitigation; increased emphasis on residential FOG outreach and education and increased utilization of GIS tools. Mr. Kolk also presented a proposal for GIS development for sewer cleaning activities management. Mr. Kolk consulted with CMSD Staff with regard to the need for a three - year cleaning program. It is not a simple process to go out and schedule a sewer line cleaning. What is needed is to collect all the information into a database to make it manageable, with work orders and sewer atlases to allow analyzing of the data. There is a GIS EEC is using for the District that, however, it is not accurate or up -to- date. The crux of the proposal is to collect all the necessary data and create a GIS to manage the line- cleaning process using this and to be able to create reports which is a requirement for the SSMP to be able to report sewer lines cleaned, when they were cleaned and when they are scheduled to be cleaned next. The GIS the District is using is from a program generated by some work created for OCSD and it is not accurate. The plan is to collect necessary information and put into a database to manage the line cleaning process so that the District has a GIS that is representative of the CMSD sewer assets.,' COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 President Schafer convened the meeting to a Closed Session at 6:05 p.m. to evaluate the Interim District Manager pursuant to Government Code §54957. President Schafer reconvened the regular Board meeting at 7:00 p.m. and announced no action was taken during the Closed Session, however, additional direction was given to the Interim District Manager. Discussion was held on rescheduling the regular September Board of Directors meeting and the meeting was rescheduled to Thursday, September 17, 2009 at 11:45 a.m. Director Perry indicated he may be late due to his teaching commitment. Lunch will be served. Discussion was also held on rescheduling the regular October Board of Directors meeting and the meeting was rescheduled to Monday, October 26, 2009 at 5:30 p.m. Colin Burns will attend in the absence of Legal Counsel Alan Burns. A Closed Session will be held on Friday, October 9, 2009 at 11:45 a.m. with the Board of Directors, Legal Counsel, Alan Burns, Interim Manager Don McIntyre and Brent Ives attending. The meeting will be held at CMSD headquarters and lunch will be served. • CONSENT CALENDAR President Schafer questioned the Ordinance Enforcement Officer's report and how a resident obtained the cell phone number of Mr. Shef. Ms. Revak stipulated the Minutes from the July 23, 2009 should be revised to include: "The Alternate District Engineer reported to the Board that the CIP Report was appropriate and the cost reasonable." Director Monahan motioned to approve the Consent Calendar with the revision as noted by Ms. Revak. Director Perry seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Special Meeting — July 13, The Minutes of the Special Meeting of July 2009 13, 2009 were approved as distributed. Minutes of Sewer System Committee The Minutes of the Sewer System Meeting — July 21, 2009 Committee Meeting of July 21, 2009 were approved as distributed. • COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 Minutes of Recycling Committee Meeting — July 22, 2009 Minutes of Regular Meeting — July 23, 2009 Minutes of Special Meeting — July 30, 2009 PAGE 4 The Minutes of the Recycling Committee Meeting of July 22, 2009 were approved as distributed. The Minutes of the Regular Meeting of July 23, 2009 were approved as revised. The Minutes of the Special Meeting of July 30, 2009 were approved as distributed. Minutes of Special Meeting — August 3, The Minutes of the Special Meeting of 2009 August 3, 2009 were approved as distributed. Refunds Occupancy Report and Payment of $196,749.54 to Costa Mesa Disposal — August 2009 Monthly Spill Report to State Water Resources Control Board Waste Diversion Report There were no refund requests for the month of July 2009. The Trash Occupancy Count documented an increase of 8 units for the occupancy report for solid waste collection as of August 1, 2009. Therefore, the total for August is 21,490. The Monthly Spill Report to the State Water Resources Control Board (SWRCB) for August 2009 was accepted as submitted. The Waste Diversion Report dated August 2009 was accepted as submitted. Contract Payment of $178,187.70 to The contract payment of $178,187.70 to CR CR Transfer — July 2009 Transfer for recycling services and disposal for the month of July was ratified as submitted. Contract Payment of $12,978.75 to CR The contract payment of $12,978.75 to CR Transfer— Santa Ana Heights /Newport Transfer for recycling services and disposal Beach — July 2009 for Santa Ana Heights /Newport Beach for the month of July 2009 was ratified as submitted. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 9) Ordinance Enforcement Officer's The Ordinance Enforcement Officer's Report Report dated August 17, 2009 was accepted as submitted. ENGINEER'S REPORTS Project Status Report The Project Status Report dated August 2009 was accepted as submitted. TREASURER'S REPORTS Financial Report as of July 31, 2009 Treasurer's Report as of July 31, 2009 Warrant Register for the month of July 2009 in the amount of $868,851.27 10 The Financial Report as of July 31, 2009 was accepted as submitted The Treasurer's Report as of July 31, 2009 was accepted as submitted. Warrant Resolution #CMSD 2010 -02 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 $868,851.27. Directors Compensation & Director Compensation and Expense Reimbursement of Expenses for the Reimbursements for the month of July 2009 month of July 2009. were approved and ratified as follows: President Schafer: $1,326.00 + $16.50 Vice President Ooten: $1,326.00 + $15.40 Director Monahan - $1,105.00 Director Ferryman: $884.00 Director Perry: $1,326.00- END OF CONSENT CALENDAR WRITTEN COMMUNICATIONS Ms. Revak presented a letter from Certified Public Accountants & Consultants, Diehl, Evans & Company, LLP, advising the Directors they are engaged to audit the financial statements of the Costa Mesa Sanitary District for the year ended June 30, 2009. The audit is scheduled to begin on approximately September 28, 2009 and their report will be issued approximately November 30, 2009. 9 COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING FIELD AUGUST 27, 2009 Ms. Revak also presented a memo from Assemblyman Joel Anderson requesting a letter of support for AB 1506. The bill would allow recipients of state - issued IOUs to endorse and return the IOUs to the state as payment for any obligations they owe to the state such as state taxes, DMV fees, public university tuition, etc. Ms. Revak reported checking on the bill status and learning it has already gone to Committee and action by the CMSD Board of Directors would have no consequence. Ms. Revak reported Staff received notification from CSDA the two submissions by the CMSD for the CSDA Exceptional Public Outreach Award, the Sewer Lateral Assistance Program and the Recycling & Waste Diversion Grant Program, were not chosen for the CSDA award; however, CSDA appreciated the agency's submissions and encouraged the CMSD to submit again next year. The CSDA plans to have a table in the exhibit hall at the September Conference in Indian Wells to display the nominated programs. Directors and Staff attending the Conference will visit the exhibits to garner insight that might be helpful in future endeavors. President Schafer suggested consideration for submitting the sewer lateral assistance program to the CASA organization next year and Staff will calendar the item for next year's conference. PUBLIC COMMENTS There were no public comments made. MANAGER'S REPORTS Proposed Reorganization Mr. McIntyre presented a report on a proposed reorganization of the Costa Mesa Sanitary District. The decision of the Board of Directors to appoint a full -time General Manager signaled the need to reevaluate the present organizational structure. Mr. McIntyre reported the Board Clerk provides a wide variety of support services for the Board of Directors including preparing and administering agendas and minutes of the Board and Board Committee meetings as well as administering several public outreach programs, and also serves as Board Secretary. Although none of these duties are expected to change under the proposed reorganization, some significant additional duties have been negotiated which would include administration of the headquarters office and staff as well as assuming recordation and transcription duties of the Court Clerk. While the Office Manager part of her duties would be under the aegis of the General Manager, the duties associated with the Board would continue to be under their purview. This is not a clear cut accountability arrangement, however, it ® is the kind of organizational compromise required in small organizations and the dual accountability is not different from the present situation. The proposed job title for this position is Office Manager /Clerk of the District. As Office Manager, the position would supervise three support staff. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 Mr. McIntyre pointed out a key measure to the reorganization is to determine how best to redistribute the substantial duties of the Assistant Manager to improve the operational effectiveness of the organization. The essential part of his work focuses on supervision of the sewer maintenance operation and management of the solid waste contract. Mr. McIntyre recommended the creation of an Operations Manager position to assume the two vital functions of the District and presented a job description. The position would report directly to the General Manager and would be responsible for the supervision of the three District field personnel. With regard to the finance operation, it is highly centralized with budget and accounting functions under the purview of the contract Treasurer. Specifically, the duties of the Treasurer now include: long term financial planning, ensuring GASB 34 compliance, placing and tracking District's investments, preparing the monthly Treasurer's report, preparing the annual statement of investment policy; attending agenda review and Board meetings and other financial support as determined by the District. With the appointment of a General Manager, whose responsibility will be the preparation and management of the budget, the scope of the contract services needs to be reevaluated. With District personnel providing general accounting, accounts receivable and payroll and the treasurer providing internal controls, the supervision of personnel at times has proven to be somewhat awkward. With the new General Manager taking over the budget and its attendant accounting needs, this offers an opportunity to consolidate (in- house) the finance officer duties now being performed by the Treasurer. The Treasurer would continue, under contract, to provide the duties associated with managing the District's investment portfolio. Mr. McIntyre recommended establishing the position of Administrative Manager combining the responsibility for accounting, purchasing and human resources. The need for a Human Resources person is clear with the ever - changing laws and regulations governing personnel management requires careful and constant attention. This position would report directly to the General Manager and the Accountant and Accountant Specialist would report to this position. Job descriptions for the three positions were presented as well as a summary of the fiscal impact of the reorganization in order for the Board to have a complete picture of these changes for both this fiscal year and the next. Director Ooten moved to approve the reorganization effective September 28, 2009. Director Monahan seconded. Motion passed 5 -0. Alan Burns, noted, Legal Counsel will be presenting administrative regulations and District Operations Code revisions to change titles, etc. for the Board's approval in the near future. U • COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 DISTRICT YARD -174 W. WILSON STREET - CMSD #187 Status of Contract Award Mr. Burns provided a report on Substitution of Subcontractors after bid opening. The substitution was the result of value engineering performed at the request of the CMSD. Mr. Burns addressed the propriety of substituting subcontractors after bid opening and stated the concerns of the Howard S. Wright (HSW) in that regard. Substituting subcontractors after bid opening may have substance as such substitutions might be considered "bid shopping" and subject HSW to statutory and administrative penalties. The conclusion of Mr. Burns is the substitution of subcontractors after bid award may violate the Subletting and Subcontracting Fair Practices Act (SSFPA) and should be avoided and it is best to inform HSW to use the subcontractors listed in its original bid. Mr. Hamers, District Engineer, provided further information stating it appears a portion of our "value engineering" efforts are not allowed under the law and the CMSD must re- adjust the contract price for the construction of the District Yard. HSW reviewed all the subcontractors on the project and reinstated the appropriate ones to be in compliance with the substitution of contractor laws. Additionally, a few clarifications in the plans and specifications were made along with a few last minute changes required by the City of Costa Mesa, both of which also altered the contract price. Mr. Hamers provided a spreadsheet from HSW with an additional $62,540 added to the contract amount to make the revised total $2,161,546. Mr. Hamers noted that Staff should have reviewed this issue with the CMSD Attorney early on when the contractor selection and bidding process was originally developed. Director Ferryman expressed his opinion that it was very unprofessional of the architect and the contractor. Mr. Burns noted the law and our contract stated there should be no bid substitution; they apparently bid one contract price and the CMSD, under the guise of value engineering tried to get better bids on the sub - contractor costs to serve the public interest that all sounds good, however, is unlawful. Director Ferryman stated we were all here at the table and it didn't occur to these professional people that this might occur. There were comments to the effect that the District was exempt from certain bidding laws. During that process of being exempt for all of those things, the fact we asked them for a bid is what locked the District into the SSFPA. Director Ferryman stated he would like to go out for another bid, however, it would further delay construction. 0 COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 President Schafer stated the Board wants this item on the agenda until the project is completed. Director Ferryman questioned if there is a time limit on project completion and if the Contractor has the right to sue the District if for some reason they claim we prevent them from completing the project within the specified period of time. Mr. Burns stated the contract starts running at the time of bid award. Director Ooten moved to re -award the contract at the revised amount. Director Monahan seconded. The motion carried 4 -1. Furniture for District Yard Ms. Kallab presented a report on the District Yard office furniture proposal. Staff met with representatives from Steelcase, Vertex and Newport Business Interiors in November 2008 to obtain office furniture proposals. Newport Business Interiors was the low bidder. Mr. Dulake, Ms. Kallab and Ms. Revak visited the National showroom in Irvine and were impressed with the quality of the product. i Staff recommended approval of the proposal from Newport Business Interiors, ® Inc. in the amount of $31,378.90. This guarantees the November 2008 pricing (with the exception of the sales tax increase). Director Monahan moved to approve the purchase of furniture from Newport Business Interiors, Inc. for the District Yard. Director Perry seconded. Motion carried 5 -0. ORDINANCE ENFORCEMENT OFFICER - PROPOSED MOU Mr. McIntyre reported he and Mr. Burns discussed the need to proceed with the MOU with the City of Costa Mesa. Mr. McIntyre is still in discussion with the City Manager and Mr. Burns on the issue. AUTHORIZATION TO EMPLOY TEMPORARY CLERICAL PERSONNEL The Board of Directors authorized Mr. McIntyre to talk with President Schafer with regard to employing temporary clerical personnel to fill in for the receptionist/office specialist position. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 SEWER SYSTEM COMMITTEE - TUESDAY, AUGUST 25, 2009 TRANSFER OF SEWERS FROM ORANGE COUNTY SANITATION DISTRICT (OCSD) TO THE COSTA MESA SANITARY DISTRICT (CMSD) Director Monahan reported an estimate of $1.3M for the transfer and the Sewer System Committee is looking for a motion to accept the transfers. Director Ferryman moved to approve the transfer of sewers from Orange County Sanitation District (OCSD) to the Costa Mesa Sanitary District. Director Ooten seconded the motion. Mr. Hamers has studied the agreement and exhibits and recommends the approval subject to the final legal language. Mr. Burns reported the sum of $1.3M and he will ensure the agreement reflects the proper transfer. Motion carried 5 -0 OCSD OFFER OF AREA 7 SEWERS UPDATE Director Monahan reported on the OCSD offer of Area 7 sewers and direction was given to Mr. Hamers and Mr. McIntyre in looking into the governance, repairs needed and the financial impact on the District. Mr. McIntyre stated he has concerns about the boundaries that require clarification from OCSD. More research is required. OCSD DOVER TRUNK - VI TRACKING The CMSD is looking at some more 1/1 tracking of the OCSD Dover Trunk. The City of Newport Beach is delaying their resurfacing and the County is looking into whether the line needs to be re -done which affects the CMSD. CMSD MAINTENANCE CLEANING It was reported the first six months of the agreement with NPSI was completed and discussion was held on cockroach spraying. Mr. McIntyre mentioned the subject of changing the meeting frequency of Committees and perhaps going to quarterly meetings. The subject will be considered at a future date. RECYCLING COMMITTEE - WEDNESDAY, AUGUST 26, 2009 Director Ooten reported the Recycling Committee goals were reviewed with no recommended changes. Director Ooten reported the Orange County Waste & Recycling the District approved a grant to the District in the amount of $142,256. This is a cooperative grant for the CMSD, the City of Costa Mesa and the City of Huntington Beach with funds intended for public outreach, education, composting, and vermicomposting, and to provide earth machines for local schools. • COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 Trisha Throop of CR &R reported on the food waste recycling pilot program in South County. STADIUM BANNER AT ESTANCIA HIGH SCHOOL Director Ooten reported a banner was submitted to Estancia High School for placement at the Jim Scott Stadium. Ms. Revak worked with Director Perry on the project to ensure banner specifications were met. The banner for 2009 -10 will be in support of Estancia High School and Costa Mesa High School will be supported in the 2010 -11 school year. The $500 cost was approved at the July Board of Directors meeting. LARGE ITEM COLLECTION PROGRAM Director Ooten reported the Large Item Collection program concluded on August 21, 2009 and a final report will be provided at the September Board meeting. This year the program is costing the District, whereas in previous years the CMSD has made money on the program from the recycling white goods. However, the amount paid for those items has decreased to $50 /ton. ® CR&R R CONTRACT PERFORMANCE EVALUATION Director Ooten provided the Contractor Performance Evaluation Report for 2008 -09 and the response from CR &R. Director Perry inquired if the District could assist Estancia High School students in developing a recycling program. Mr. Hamers advised the school should contact the hauler for the school district and request assistance in their recycling endeavors. ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS (WDR) COMPLIANCE WITH 2006 WASTE DISCHARGE REQUIREMENTS PREPARATION OF SEWER SYSTEM MANAGEMENT PLAN Mr. Harriers presented an update on the status of the District's compliance with the State of California Water Resources Control Board Oder No. 2006 -0003 Waste Discharge Requirements (WDR), specifically with respect to preparation and certifications of the Sewer System Management Plan (SSMP) and the schedule for self- audits. The SSMP is being updated and revised to reflect the forthcoming construction of the new District Yard at 174 W. Wilson Street, Costa Mesa. Upon completion of the update, the SSMP will be placed on the regular meeting agenda for approval and recertification by the Board of Directors. 0 COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING FIELD AUGUST 27, 2009 TREASURER'S REPORTS Mr. Davis had nothing to report to the Board of Directors. ATTORNEY'S REPORTS CLAIM BY BACK BAY CENTER, LTD. FOR PROPERTY AT 2651 -2675 IRVINE AVENUE (CMSD PROJECT #168 - IRVINE PUMP STATION RELOCATION Mr. Burns provided an update on the Back Bay Center, Ltd. Claim. Progress is being made toward a settlement. The repair estimate remains at $578,000. Mr. Hamers indicated time is of the essence as the sidewalk is cracking and the CMSD station has been pushed back slightly to where the doors are not closing properly. Mr. Dulake adjusted the doors so they will close. ORDINANCE NO. 73, ADDING MEETINGS WHICH QUALIFY FOR A DAY'S SERVICE RENDERED AT THE REQUEST OF THE BOARD Mr. Burns reported this Ordinance is brought back to the Board as the Directors requested the addition of other meetings. Director Ooten moved to approve Ordinance No. 73. Director Perry seconded. Motion carried 5 -0 ORDINANCE NO. 74, RENUMBERING THE GENERAL PUBLIC MEETING AND AGENDA DISTRIBUTION RULES Mr. Burns reported there was a glitch in the numbering of Ordinances and this Ordinance will correct the numbering system. Director Ferryman moved approval of Ordinance No. 74. Director Monahan seconded. Motion carried 5 -0. TRC AGREEMENT FOR SCADA MAINTENANCE UPGRADE AND TRANSITION FROM CELL PHONES TO RADIOS Mr. Burns reported the change to the TRC SCADA agreement specifying their schedule of work. Mr. Burns stated this agreement clarifies the definition of work putting it into "common sense" rather than technical jargon. Director Monahan moved to approve the TRC Agreement for SCADA Maintenance Upgrade and Transition from Cell Phones to Radios. Director Ooten seconded. Motion carried 5 -0. GIS DEVELOPMENT FOR SEWER CLEANING ACTIVITIES MANAGEMENT Director Monahan reported the Sewer System Committee (SSC) voted to go ahead with the GIS Development and Mr. Hamers noted that the SSC recommended approval of the entire GIS "idea" rather than considering the "Proposal to Update Sewer Atlas and Master Sewer Map ". Director Monahan questioned Mr. Burns on the need for this item going out to bid. Director Ooten stated time is of the essence in • COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING FIELD AUGUST 27, 2009 implementing the GIS and recommends the CMSD negotiate with EEC to prepare the three phases of the GIS as all are equally important and there is a critical need to the District in meeting the waste discharge requirements. Mr. Davis reported it would require a budget adjustment and this large of an expenditure would have to be taken from retained earnings, and it is best to bid this type of expenditure. From a finance perspective there are RFPs out there to access to start the procurement process. Director Ferryman questioned the length of time to go through the RFP process and expressed his opinion it would be best to be put out to bid. Considerable discussion was held on this subject. Director Monahan moved to go forward with all three phases and direct Staff to negotiate the best deal with EEC. Director Ooten seconded. Director Ferryman stated he will not be supporting the motion and that it is too big an investment not to go out with an RFP. Director Perry stated he agreed with Director Ferryman and would not be supporting the motion. Motion passed 3 -2. PROPOSAL TO UPDATE SEWER ATLAS AND MASTER SEWER MAP Director Monahan motioned to receive and file the proposal to update the sewer atlas and master sewer map this item in the event it is needed at a future date. Director Ooten seconded. Motion passed 5 -0. CMSD ADMINISTRATIVE REGULATION 1.2 DISTRICT COMPUTER & INTERNET USE AND CELL PHONE POLICY AND PROCEDURES Mr. Burns presented a draft of the CMSD Administrative Regulation 1.2 — District Computer & Internet Use and Cell Phone Policy and Procedures. The revised regulation pertains to the District's rules regarding cell phones. Unlike the District policy for computers, faxes and internet communications, the District provides an allowance for cell phones, but the cell phone and any license to connect to electronic transmission lines are not the property of the District but of the employee. As cell phones are not the property of the District, the rules for cell phones and their use are different from those for computers, faxes and regular internet access. The District established a cell phone allowance and shall pay an amount to eligible employees for cell phone acquisition and maintenance. The District Manager determines who needs a cell phone and, therefore, who shall be entitled to a cell phone allowance. The District Manager's determination shall be at his sole discretion for the good of the District. There is no right to a cell phone allowance and the District Manager can at any time determine a cell phone is not needed for work purposes and the allowance will, therefore, cease. Cell phone plans must provide for a minimum of 450 minutes coverage for work communications and ® must have coverage with a carrier that provides acceptable coverage in employee's work areas. As employees will receive a personal benefit from such cell phone allowance, there may be.a taxable consequence to the employee. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 Director Ferryman moved to approve the CMSD Administrative Regulation 1.2. Motion seconded by Director Perry. Motion carried 5 -0 LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) Director Ferryman reported on the OCSD Board meeting held August 26, 2009, The OCSD Board approved an increased budget for the College Avenue pump station for a total budget of $11,246,000. OCCOG is now charging large entities, such as OCSD, $5,000 /year for membership. Director Ferryman hosted the OCSD Board of Directors and Staff at his home for pizza and salad and reported there was a big turnout and it was a very enjoyable evening. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) Director Perry reported a meeting of the Santa Ana River Flood Protection Agency was not held in August. SARFPA DUES FOR FISCAL YEAR 2009-2010 IN THE AMOUNT OF $1,100 Director Monahan moved to ratify the payment of dues in the amount of $1,100 to the SARFPA for fiscal year 2009 -2010. Director Ferryman seconded. Motion passed 5 -0. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) President Schafer reported on a Board meeting on July 7, 2009. The quarterly meeting held July 30, 2009. Orange County Sheriff Sandra Hutchens was the guest speaker and the topic was 1St year in Review — A Look at Reforms and Reorganization within the Sheriff's Department." ISDOC will be paying a $200 membership fee to OCCOG. LOCAL AGENCY FORMATION COMMITTEE (LAFCO) The new Public Alternate, Derek McGregor from Rancho Santa Margarita, was sworn in. The public hearing was full with the topic being Sphere of influence Update for the City of Huntington Beach. The sphere of influence report from ® the Sunset Beach Sanitary District was presented. Sunset Beach was voted to be in the Huntington Beach sphere of influence. • COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 27, 2009 Discussion was held on the Annual Strategic Planning Session on August 12, 2009 at the Ebell Society in Santa Ana. ORANGE COUNTY COUNCIL OF GOVERNMENTS OCTA will take over the staffing of OCCOG. Previously, Mission Viejo staffed OCCOG. The meeting will continue to be at OCTA. CHAMBER OF COMMERCE The Chamber of Commerce was dark. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) President Schafer attended a meeting of the Finance Corporation on June 16 and a CSDA Board meeting on June 17, 2009. WACO Directors Perry and Ooten attended the WACO meeting on July 10, 2009. A ® LAFCO report was presented by John Withers. Peer Swan gave ACWA report. Charlie Wilson is now working on the Committee for the Southern California Water Committee with other Southern California representatives. There was a guest speaker, Jose Solorio who talked about status of different legislation on the Delta Water Project. Director Ooten also attended the meeting and reported there is a lot of active legislation regarding water conservation. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) President Schafer and Director Perry reported on the Annual CASA Conference. There was conversation about sewer laterals. There is no pending legislation or interest as evidenced by a poll. Margie Rice of Midway City Sanitary District was sworn in as a Board member and Southern California now has a representative on the Board. OLD BUSINESS There was no old business to discuss. NEW BUSINESS There was no new business to discuss. • COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING FIELD AUGUST 27, 2009 0 ORAL COMMUNICATIONS Mr. Hamers complimented the Board on the good discussion held tonight and the wise decisions made by the Board of Directors. ADJOURNMENT President Schafer adjourned the meeting at 8:37 p.m. is