Minutes - Board - 2015-02-26;Sp SPNITgRy
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
FEBRUARY 26, 2015
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
February 26, 2015 at 5:30P.M. at 628 W. 19'
Street, Costa Mesa.
PLEDGE OF President Scheafer led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION Vice President Perry led the Invocation.
ROLL CALL DIRECTORS PRESENT: Michael Schaefer, Arthur Perry, Robert
Ooten, Arlene Schafer, James Ferryman
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Alan Bums,
District Counsel; Robin Hamers, District
Engineer; Wendy Davis, Finance Manager;
Marc Davis, District Treasurer, Javier
Ochiqui, Management Analyst, Noelani
Middenway, District Clerk
OTHERS PRESENT: Lawrence Jones, CR &R; Lynn Redman,
Resident
CEREMONIAL MATTERS AND PRESENTATIONS — None
ANNOUNCEMENT OF LATE COMMUNICATIONS — None
PUBLIC COMMENTS— None
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Meeting Minutes of January 13, Meeting Minutes of January 13, 2015 was
2015 approved as presented.
2. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of January 22, 2015. Minutes of January 22, 2015, was
approved as presented.
3. Occupancy report and payment to The occupancy report and payment to
CR &R Environmental Services CR &R Environmental Services for the
month of January 2015 in the amount of
$194,030.86 was approved as presented.
4. 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 January 2015.
5. Adoption of a Warrant Resolution The Board of Directors approved adoption
No. CMSD 2015 -08 Approving of Warrant Resolution No. CMSD 2015 -08
District Warrant Registers Approving District Warrant Registers for
the month of January 2015 in the amount
of $825,812.29.
6. Directors' Compensation and The Board of Directors approved the
Reimbursement of Expenses Director's Compensation and
Reimbursement of Expenses for the month
of January 2015 as presented.
7. Sewer Lateral Assistance Program
(SLAP) Update
8. Investment Report
9. Annual Health Benefit Broker Fees
and Commission Disclosure
10. Resolution No. 2015 -858
Authorizing the Disposition of
District Assests
The Board of Directors approved the SLAP
report as presented.
The Board of Directors approved the
investment report for the month of January
2015 as presented.
The Board of Directors approved the
Annual Health Benefit Broker Fees and
Commission Disclosure as presented.
The Board of Directors adopted Resolution
No. 2015 -858 as presented.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26,2015
tND OF CONSENT CALENDAR
Vice President Perry made a motion to approve the consent calendar as presented.
Director Ferryman seconded the motion, which carried unanimously.
PUBLIC HEARINGS - None
GENERAL MANAGER'S REPORTS
11. Refund to Mr. Scott Elliott-Brand at 250 Magnolia Street
Recommendation: That the Board of Directors approve a refund in the amount
of $461.97.
Wendy Davis, Finance Manager, requested to refund Mr. Elliott-Brand for over
charges for trash containers.
Assistant Secretary Schafer made a motion to approve the refund amount of
$461.97. Vice President Perry seconded the motion, which carried unanimously.
12. Approving the Sales of Composting Bins at a Discount
Recommendation: That the Board of Directors continue promoting the
Composting Bin Program by offering said bins at a discounted price of
$30.00 per bin.
Scoff Carroll, General Manager, provided details of the composting bin provided by
the District to residents at a discounted rate, noted that the grant to purchase the
composting bins has expired and indicated that District Counsel has confirmed that
selling the composting bins at a discounted rate is not a gift of public funds as the
program serves the District's purpose in encouraging recycling. Mr. Carroll
recommended the purchase of 240 dual chamber compost bins and 121
vermicomposting bins for a total cost of $25,032.
Discussion followed regarding storage of the composting bins and application for a
new grant.
Alan Burns, District Counsel, noted that his recommendation that selling the
composting bins would not be a gift of public funds is based on the Board's findings
that discounting composting bins to District customers will encourage recycling and
lessen the burden in landfills.
Director Ferryman made a motion to make a finding that the sale of composting
bins at a discounted rate is not a gift of public funds and approved offering the bins
at a discounted price of $30.00 per bin. Assistant Secretary Schafer seconded the
motion, which carried unanimously.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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13.
Recommendation: That the Board of Directors approves paying the City of
Costa Mesa $168,211 because the statute of limitations for breach of written
contract is four years in accordance with California Code of Civil Procedures
Section 337 and to do otherwise might be considered a prohibited gift of
public funds.
General Manager Carroll provided details of an invoice received from the City of
Costa Mesa in the amount of $259,144.94 for the period of 2006 through 2013 for
raising manholes during street resurfacing projects. Mr. Carroll recommended
paying $168,211 in accordance with a four year statute of limitations.
Discussion followed regarding having additional conversations with the City
regarding the invoice and appropriating funds to pay the invoice.
Assistant Secretary Schafer made a motion to continue the item to the March
meeting. Vice President Perry seconded the motion, which carried unanimously.
14. Recent Meeting with Citv of Costa Mora nffhhl. Ro u.,a. ,, : I --b-
That the Board of Directors receive and file the report.
General Manager Carroll reported that he and Secretary Ooten attended a meeting
with City of Costa Mesa staff regarding hydraulic leaks.
Secretary Ooten noted that the pictures the City showed in the past were not
residential trash trucks but instead they were commercial trash trucks.
15.
Recommendation: That the Board of Directors considers appointing two
Board members to serve on the Ad Hoc Committee.
General Manager Carroll indicated that the Board has requested to create an Ad
Hoc Committee for the review of the District's policies and administrative
regulations.
Assistant Secretary Schafer and Vice President Perry volunteered to serve on the
ad hoc committee.
Vice President Perry made a motion to establish the Ad Hoc Committee with
Assistant Secretary Schafer to determine the meeting dates and time. Assistant
Secretary Schafer seconded the motion, which carried unanimously.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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16.
Recommendation: That the Board of Directors receive the oral report and
provide direction if necessary.
General Manager Carroll provided an update on his attendance of the Association's
Board of Directors meeting regarding the many SSOs at Kalmus Drive. Mr. Carroll
reported that he has received copies of two contracts from Jimnj for installing new
pumps and for installing a monitoring and alarm system that will notify Jimni when
there is high water or power failure.
17. General Manager Performance Evaluation
Recommendation: That the Board of Directors:
1. Receive and file General Manager's 2014 performance goals and
District achievements;
2. Direct President Scheafer to negotiate an annual salary adjustment for
the General Manager.
General Manager Carroll provided the Board with a status of his 2014 goals along
with a report describing the District achievements in 2014.
President Scheafer requested that the 2014 District achievements be posted on the
District's website.
Vice President Perry made a motion to receive and file the report. Assistant
Secretary Schafer seconded the motion, which carried unanimously.
ENGINEER'S REPORTS
18. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer Hamers noted that the Grade 5 repairs have been completed.
19. Project #196 -D — Ememencv, Generatnr nt Irvine Piimn Ctntinn- n,Ai�
Necommendation: That the Board of Directors:
1. Award a contract to the lowest responsive bidder, National
Electrical Contractors, Inc. of Van Nuys, California, in the amount of
$196,709.00
2. Approve a contingency of 10% in the amount of $19,671.
District Engineer Hamers recommended awarding the contract to National Electrical
Contractors, Inc. and 10 percent contingency.
Discussion followed regarding setting a contingency amount, responsibility of
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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monitoring of the gas in the generator, and estimated timeframe of the project.
Secretary Ooten made a motion to approve awarding the contract. Assistant
Secretary Schafer seconded the motion, which carried unanimously.
TREASURER'S REPORTS
20. Reguest for Rate Adjustment — CBIZ MHM LLC
Recommendation: That the Board of Directors considers approving a rate
adjustment with CBIZ MHM, LLC (CBIZ).
Secretary Ooten made a motion to approve the rate adjustment. Vice President
Perry seconded the motion, which carried unanimously.
ATTORNEY'S REPORTS
21. Ordinance No. 104 — Penalty and Interest for Unpaid Sum
Recommendation: That the Board of Directors approves Ordinance No. 104
a basic 10% on unpaid sums owed the District and adopting a 1%% interest
per month (18% per annum) interest rate on said sum.
District Counsel Bums provided details of the Ordinance.
Secretary Ooten made a motion to adopt Ordinance No. 104. Vice President Perry
seconded the motion, which carried unanimously.
22. Proposed Agreement and Rate Adjustment for Legal Services
Recommendation: That the Board of Directors considers approving the
Agreement with Harper & Bums LLP along with the rate adjustment for legal
services.
Secretary Ooten made a motion to approve the rate adjustment. Director Ferryman
seconded the motion, which carried unanimously.
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman reported on the anticipated litigation against Los Angeles City and
Los Angeles County versus Kern County, requested that CMSD endorse OCSD for a
water smart grant, and noted that OCSD is accepting nominations for the Honor Walk.
The Board of Directors directed staff to send a letter of recommendation to OCSD
nominating Jim Ruth for the Honor Walk.
COSTA MESA SANITARY DISTRICT PAGE 7
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Secretary Ooten reported on his attendance of the OCSD Operations Committee
meeting.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Vice President
Perry)
Recommendation: That the Board of Directors accepts oral report.
Vice President Perry reported that there will be a tour of the Seven Oaks Dam on
March 12.
C. Independent Special Districts of Orange County ( ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Schaefer reported that Joel Rattner has been appointed to the position of
ISDOC third Vice President, noted that the bylaws are being reviewed, and
mentioned that General Manager Carroll will be presenting at ISDOC's quarterly
meeting in April.
D. California Special Districts Association (CSDA) - (Assistant Secretary Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer reported on her attendance of the CSDA Board and
Legislation Committee meetings in Sacramento and noted that she represents
Region Six.
E. Special District Risk Management Authority ( SDRMA) — (President Schaefer)
Recommendation: That the Board of Directors accepts oral report.
President Schaefer reported on the upcoming SDRMA claims education day in
Sacramento and encouraged that staff attend. General Manager Carroll will attend
the session.
Recommendation: That the Board of Directors accepts oral report.
Secretary Ooten reported on his attendance of the OC Waste & Recycling meeting and
attendance of the WACO meeting with Director Ferryman.
President Scheafer reopened public comments for Item 19.
Lynn Redman, resident, had questions regarding what the contract cost would cover
and of the size of the generator.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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OLD BUSINESS — None
NEW BUSINESS - None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Secretary Ooten questioned if the CCTV will be done before the grade 4 repairs begin.
ADJOURN To CLOSED SESSION — President Scheafer adjourned to closed session at 6:30
P.M.
23. Public Employee Performance Evaluation (Gov. Code 654957) - Title: General
Manager
Conference with Labor Negotiator (Gov. Code §54957.6)
Agency Negotiator: President Scheafer
Unrepresented Employee: General Manager
All others exited the meeting with the exception of the Board of Directors and District
Counsel Burns.
RECONVENE TO OPEN SESSION — President Schaefer reconvened to open session at 6:58
P.M. and reported out that the Board of Directors gave President Scheafer authorization
to negotiate with General Manager Carroll and will formalize his performance
evaluation.
ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 6:59 P.M.
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Robert Ooten Michael Scheafer
Secretary President