Minutes - Board - 2014-12-18CALL TO ORDER
PLEDGE OF
ALLEGIANCE
INVOCATION
ROLL CALL
Sp SANITgRY�
aA
y
�R?ORATEa
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
DECEMBER18,2014
The Board of Directors
Sanitary District met in
December 18, 2014 at
IV' Street, . Costa Mesa.
of the Costa Mesa
regular session on
5:30P.M. at 628 W.
President Ferryman led the Pledge of
Allegiance.
Vice President Scheafer led the Invocation.
DIRECTORS PRESENT: James Ferryman, Michael Scheafer, Robert
Ooten, Arthur Perry, Arlene Schafer
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Alan Burns,
District Counsel; Rabin Hamers, District
Engineer; Wendy Davis, Finance Manager;
Marc Davis, District Treasurer, Javier
Ochiqui, Management Analyst, Noelani
Middenway, District Clerk
OTHERS PRESENT: Jim Mosher, Resident
CEREMONIAL MATTERS AND PRESENTATIONS— None
ANNOUNCEMENT OF LATE COMMUNICATIONS — Scott Carroll, General Manager, noted
receipt of written public comments from Mr. Jim Mosher and indicated that both Mr.
Mosher's remarks and Mr. Carroll's response has been distributed to the Board for their
review.
PUBLIC COMMENTS — President Ferryman invited members of the public to address the
Board.
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 18, 2014
Seeing no one, President Ferryman closed public comments.
CONSENT CALENDAR
1. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of November 20, 2014 Minutes of November 20, 2014, was
approved as presented.
2. Occupancy report and payment to The occupancy report and payment to
CR &R Environmental Services CR &R Environmental Services for the
month of November 2014 in the amount of
$192,748.48 was approved as presented.
3. Contract Payment to CR &R The Board of Directors approved payment
Environmental Services for to CR &R Environmental Services for
Recycling and Disposal Services recycling and disposal services for the
month of November 2014.
4. Adoption of a Warrant Resolution The Board of Directors approved adoption
No. CMSD 2015 -06 Approving of Warrant Resolution No. CMSD 2015 -06
District Warrant Registers Approving District Warrant Registers for
the month of November 2014 in the
amount of $728,675.74.
5. Directors' Compensation and The Board of Directors approved the
Reimbursement of Expenses Director's Compensation and
Reimbursement of Expenses for the month
of November as presented.
6. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
7. Investment Report The Board of Directors approved the
Investment Report for the month of
November 2014 as presented.
8. Costa Mesa Sanitary District 2015 The Board of Directors approved the
Meeting Calendar Costa Mesa Sanitary District 2015 meeting
calendar as presented.
END OF CONSENT CALENDAR
Secretary Perry made a motion to approve the consent calendar as presented. Vice
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 18, 2014
President Scheafer seconded the motion, which carried unanimously.
PUBLIC HEARINGS - None
GENERAL MANAGER'S REPORTS
9. Nominations and Appointments
Recommendation: That the Board of Directors considers appointing new
officers of the Board as well as appointing Board members to represent the
District on local, regional and statewide committees and organizations.
President Ferryman made a motion to nominate and appoint Vice President
Schaefer to the office of Board President. Secretary Perry seconded the motion,
which carried unanimously.
Director Schafer made a motion to nominate and appoint Secretary Perry to the
office of Vice President. Newly appointed President Schaefer seconded the motion,
which carried unanimously.
President Schaefer made a motion to nominate and appoint Assistant Secretary
Ooten to the office of Secretary. Director Schafer seconded the motion, which
carried unanimously.
Vice President Perry made a motion to nominate and appoint Director Schafer to
the office of Assistant Secretary. President Scheafer seconded the motion, which
carried unanimously.
President Scheafer assumed the President's seat to preside over the meeting from
this point forward and expressed his thanks to his fellow board members for their
support. President Scheafer asked for nominations for appointments to the Orange
County Sanitation District (OCSD) Board of Directors and the Santa Ana River
Flood Protection Agency (SARFPA).
Vice President Perry made a motion to nominate and appoint Director Ferryman to
continue to serve on the OCSD Board of Directors. Secretary Ooten seconded the
motion, which carried unanimously.
Assistant Secretary Schafer made a motion to nominate and appoint Secretary
Ooten to serve as the alternate on the OCSD Board of Directors. Vice President
Perry seconded the motion, which carried unanimously.
Director Ferryman made a motion to nominate and appoint Vice President Perry to
serve on SARFPA. Assistant Secretary Schafer seconded the motion, which carried
unanimously.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 18,2014
There were no additional questions or comments and the report was received.
10. CMSD Contribution Program
Recommendation: That the Board of Directors approves the application from
the Costa Mesa Community Run in the amount of $1,000.
General Manager Carroll provided details of the Costa Mesa Community Run's
request for sponsorship of $1,000 and noted that the sponsorship would allow for
public education opportunities of District programs such as the organics recycling
program. He discussed a recommendation received from Mr. Mosher suggesting
that the District be a $500 sponsor and provide its own canopy, tables and chairs
for the event. The Board concurred with the suggestion.
Vice President Perry made a motion to be a $500 sponsor for the Costa Mesa
Community Run. Assistant Secretary Schafer seconded the motion.
General Manager Carroll noted that all advertising benefits of a $500 sponsorship
will remain the same as a $1000 sponsor.
Discussion followed regarding staff time and manpower to set up and break down
the canopy, tables and chairs.
The motion carried unanimously.
11. Adopt Resolution No. 2014 -855 ADDOintina Rudv Davila from Orange Cnuntv
Recommendation: That the Board of Directors adopts Resolution No. 2014-
855
General Manager Carroll provided details of the resolution recommending the
appointment of Rudy Davila of OCSD to serve as the District's Alternate District
Engineer and provided details of Mr. Davila's background.
Discussion followed indemnification and insurance requirements of Mr. Davila. Mr.
Carroll noted that Mr. Davila is covered by OCSD.
Discussion ensued regarding payment for Mr. Davila's services. Mr. Carroll noted
that Mr. Davila is responsible for tracking his hours spent serving as the Alternate
District Engineer for which OCSD will invoice the District and payment will be
remitted to OCSD.
Vice President Perry made a motion to adopt Resolution No. 2014 -855. Assistant
Secretary Schafer seconded the motion, which carried unanimously.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 18, 2014
12.
That the Board of Directors adopt Ordinance No. 102.
General Manager Carroll recommended adopting Ordinance No. 102 that will
change the District's Operations Code to obtain the services of an Alternate District
Engineer from both the private and public sector.
Director Ferryman made a motion to adopt Ordinance No. 102. Assistant Secretary
Schafer seconded the motion, which passed unanimously.
13.
Recommendation: That the Board of Directors adopt Ordinance No. 103.
General Manager discussed the proposed amendment to the District's Operation's
Code that currently requires members of the Board to receive approval to attend
meetings, events and conferences that are outside of Orange County and will now
broaden the area to allow for the Board to attend meetings, events and conferences
throughout the State of California, provided that the meetings are already on the list
of approved meetings for attendance per diem.
Assistant Secretary Schafer made a motion to adopt Ordinance No. 103.
President Scheafer indicated that a request for public comment had been received
from Mr. Mosher and invited him to address the Board at this time.
Mr. Mosher addressed the Board and expressed concern regarding expanding the
approved area for meeting attendance as he felt the existing ordinance was
sufficient and prudent.
Alan Burns, District Counsel, noted that the law provides the Board to attend up to
six meetings per month and that the Board has set forth a list of pre- approved
meetings that were deemed important and relevant to the District. Mr. Burns
discussed the reimbursement of travel and expense policy noting that the Board
can be reimbursed for such expenses as long as it is in a written policy adopted in a
public meeting.
Vice President Perry seconded the motion, which carried unanimously.
14.
Recommendation: That the Board of Directors considers sending staff to
The Road to Zero Waste Conference in New Orleans, Louisiana.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 18,2014
General Manager Carroll introduced the item and noted that the SWANA
conference will address financial, social, and system challenges in achieving Zero
Waste goals and expressed support of sending a staff member to attend the
conference.
Discussion followed regarding the workshop schedule and the possibility of sending
a Board member to attend the conference.
The Board of Directors requested that staff place this item on a study session
agenda to consider sending a Board member to the SWANA conference.
Assistant Secretary Schafer made a motion to approve sending a staff member to
the SWANA conference. Vice President Perry seconded the motion, which carried
unanimously.
ENGINEER'S REPORTS
15. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
Mr. Jim Mosher provided public comment regarding the Westside Pumping Station
project and requested clarification on how the District is impacted by the Banning
Ranch Project.
Robin Hamers, District Engineer, provided details of the Banning Ranch Project and
noted that the District has not been contacted to provide sewer services.
Discussion followed regarding OCSD's meeting with three environmentalists on the
project.
There were no further questions or comments and the report was received.
16. Project #206 — Sewer Rehabilitation Program Grade 4 Strategy
Recommendation: That the Board of Directors considers the options
described in the staff report and provide direction to the General Manager.
District Engineer Hamers provided details of the Grade 4 Sewer Rehabilitation
Program and what the capital costs would entail.
Discussion followed.
The Board of Directors requested that staff place this item on the February 10, 2015
study session agenda for further discussion.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 18, 2014
There were no further questions or comments and the report was received.
TREASURER'S REPORTS- None
ATTORNEY'S REPORTS - None
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman reported that several OCSD Board members had not been re-
appointed to the Board, and his attendance of a closed session.
Secretary Oaten reported on the unfunded liability savings and discussed a fine that
OCSD needs to pay to the Air Quality Management District.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Vice President
Perry)
Recommendation: That the Board of Directors accepts oral report.
Vice President Perry reported on his attendance of the ribbon cutting ceremony of
the Santa Ana River Interceptor.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer noted that the Board will receive free ethics training if CSDA
dues are paid by January 5, discussed the City of Tustin assuming responsibility of
the city's sewer line, and reports received from Bill Nelson and Kelly Hubbard.
D. California Special Districts Association (CSDA) - (Director Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer reported on her attendance of the CSDA meeting and
noted that she will take office in January 2015 and will be on the Legislative
Committee and Membership Committees.
Vice President Perry reported on his attendance of the Special District Leadership
Academy and discussed parliamentary rules of order that were addressed during
the workshops.
Discussion followed regarding the review of the Operations Code for legislative
updates.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 18, 2014
District Counsel Burns noted that he provides a memo to the General Manager on
any legislative updates that occur and staff implements the changes.
E. Special District Risk Management Authority (SDRMA) — (Vice President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
Nothing to report at this time.
That the Board of Directors accepts oral report.
President Scheafer reported on his attendance of the Water Advisory Committee of
Orange County (WACO) meeting and discussed Kelly Hubbard's presentation. He also
reported on the change of WACO leadership.
Vice President Perry reported on his attendance of the Costa Mesa City Council
meeting and the council's reorganization.
OLD BUSINESS- None
New Business - None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Director Ferryman said that it was an honor to serve as President for the past two years
and felt that a lot was accomplished. He thanked the General Manager and staff for
their support.
President Scheafer thanked the Board again for their confidence and support.
Vice President Perry suggested placing health care costs at a future study session
meeting.
President Scheafer suggested discussing creating a health savings account in addition
to the health care plan.
Vice President Perry requested an updated list of staff's contact information.
Secretary Ooten requested that staff include events in conjunction with Orange Coast
College in the publication of "One Persons Trash ". Vice President Perry requested to
add the Board of Directors names be placed on the publication as a roster.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD DECEMBER 16, 2014
Secretary Ooten requested to discuss the asset management fund. He also requested a
status update on the downspouts installed at the Elden Pump Station.
ADJOURN TO CLOSED SESSION TO DISCUSS LITIGATION WITH LEGAL COUNSEL PURSUANT TO
GOVERNMENT CODE SECTION 54956.9:
(a) In regards to existing /anticipated litigation entitled Costa Mesa Sanitary District —
Santa Ana Regional Water Quality Control Board Complaint No. R8- 2014 -0017.
(b) Anticipated litigation — significant exposure to litigation pursuant to Government
Code 5456.9(d)(2),(e)(1) [Number of potential cases: 1]
President Scheafer adjourned to closed session at 6:48 P.M.
President Schaefer reconvened to open session at 7:07 P.M. and reported out that the
General Manager has received direction from the Board on how to proceed.
ADJOURNMENT
There being no further business
adjourned the meeting at 7:08 P.M.
9'6—Q I / A-t'-
Robert Ooten
Secretary
to come before the Board, President Ferryman
MttaelScheafer
dE