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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
FEBRUARY 25, 2016
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
February 25, 2016 at 5:30 P.M. at 628 W.
19th 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 Scheafer, Arthur Perry, Robert
Ooten, James Ferryman
DIRECTORS ABSENT: Arlene Schafer
STAFF PRESENT: Scott Carroll, General Manager; Alan Burns,
District Counsel; Robin Hamers, District
Engineer; Wendy Davis, Finance Manager;
Marc Davis, District Treasurer; and Noelani
Middenway, District Clerk.
OTHERS PRESENT: Jim Mosher, resident.
CEREMONIAL MATTERS AND PRESENTATIONS—None
ANNOUNCEMENT OF LATE COMMUNICATIONS—None
PUBLIC COMMENTS
President Scheafer invited members of the public who wished to provide comments to
do so at this time.
Jim Mosher, a member of the public, asked whether an opposition has been filed
against the District in regards to its fine from the State Water Resources Control Board.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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District Counsel, Alan Burns, shared that the District has not yet received notice of an
opposition.
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of January 12, Meeting Minutes of January 12, 2016 was
2016 approved as presented.
2. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of January 28, 2016 Minutes of January 28, 2016 was
approved as presented.
3. Occupancy Report and Payment to The Board of Directors accepted the
CR&R Environmental Services occupancy count as presented using
22,133 as the correct number of active
units and directed staff to prepare a
warrant to CR&R Environmental Services
in the amount of $216,801.59 to be ratified
in the February 2016 warrant list, for
January 2016 collection.
4. Contract Payment to CR&R The Board of Directors approved payment
Environmental Services for to CR&R Environmental Services for
Recycling & Disposal Services recycling and disposal services for the
month of January 2016.
5. Adoption of Warrant Resolution No. The Board of Directors adopted Warrant
CMSD 2016-08 Approving District Resolution No. CMSD 2016-08 approving
Warrant Registers District warrants for the month of January
2016 in the amount of$540,569.75.
6. Payroll Transparency Disclosure for President Scheafer pulled this item for
January 2016 discussion.
7. Directors' Compensation and President Scheafer pulled this item for
Reimbursement of Expenses discussion.
8. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
9. Investment Report for the Month of The Board of Directors approved the
January 2016. Investment Report for the month of
January 2016.
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10. Annual Health Benefit Broker Fee The Board of Directors approved the
and Commission Disclosure Annual Broker Fee and Commission
Disclosure as presented.
11.Resolution No. 2016-877 — The Board of Directors adopted Resolution
Ordering that Publication of No. 2016-877 ordering that the publication
Ordinance No. 113 has Occurred of Ordinance No. 113 defining "curbside"
has occurred.
President Scheafer indicated that Mr. Mosher requested to provide comments on Items
6 and 7 on the Consent Calendar.
Vice President Perry made a motion to approve the Consent Calendar, omitting Items 6
and 7. Director Ferryman seconded the motion, which passed unanimously with a 4-0
vote withAssistant S r hfrr nec etary Schafer e not present.
t.
Mr. Mosher suggested that a memo or staff report be attached to the Payroll
Transparency Disclosure (Item 6) to explain the terminology used within the report.
Finance Manager, Wendy Davis, provided an explanation of the purpose of the report
and the acronyms used within the report.
Discussion followed regarding providing a staff report or cover page to accompany the
Payroll Transparency Disclosure.
General Manager, Scott Carroll, indicated that he will discuss a solution with Ms. Davis
and bring it back to the Board of Directors.
Vice President Perry made a motion to approve Item 6. Secretary Ooten seconded the
motion, which passed unanimously with a 4-0 vote with Assistant Secretary Schafer not
present.
Mr. Mosher suggested that the Directors' Compensation and Reimbursement of
Expenses forms be consolidated into a single report so that it may be more easily
understood by the public.
Mr. Burns and Ms. Davis provided a brief explanation of the report and its necessary
components.
Vice President Perry made a motion to approve Item 7. Directory Ferryman seconded
the motion, which passed unanimously with a 4-0 vote with Assistant Secretary Schafer
not present.
END OF CONSENT CALENDAR
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PUBLIC HEARINGS-None
GENERAL MANAGER'S REPORTS
12. FY 2015-20 Strateqic Plan Quarterly Update
Recommendation: That the Board of Directors receive and file the report.
Scott Carroll, General Manager, presented the Strategic Plan Quarterly Update and
noted that the District is currently six months into this Strategic Plan. Mr. Carroll
indicated that 5 goals have been completed thus far.
Vice President Perry and Present Scheafer requested an update regarding the status of
sewer hot spots that have been applied with the herbicide product called, RazoRooter II.
District Engineer, Robin Hamers, noted that Wastewater Superintendent, Steve Cano,
would provide a report once the application has been completed.
There were no further questions or discussion and the report was received.
13. Project#101 Westside Pump Station Abandonment Project
Recommendation: That the Board of Directors receive and file the report.
Mr. Carroll shared that he, Secretary Ooten, Director Ferryman, and Mr. Hamers met
with Orange County Sanitation District (OCSD) officials on Wednesday, February 10,
2016 to discuss the findings of OCSD's capacity analysis and model update of the
Fairview Trunk. Mr. Carroll noted that the pipe is determined to be adequate for the
projected flow when considering the proposed development through 2040, but OCSD is
concerned about wet weather flow. Lastly, he shared that OCSD still supports Project
number 101 and recommends the following measures be taken: OCSD flow monitors
will remain in the Fairview Trunk to capture recent storm weather data, OCSD will
pinpoint troubled areas and share with District staff to help determine how inflow is
entering the system, the District will begin its closed-circuit television (CCTV) of the
entire sewer system in the vicinity of the Fairview Trunk, and the District will reach out to
the OC Fairgrounds regarding the reduction of inflow from their property.
Discussion followed regarding future development within Costa Mesa, the
commencement of the CCTV process, and the notification process when Grade 5 areas
are identified during CCTV.
There were no further questions or discussion and the report was received.
14. Adopt Resolution No. 2016-878 and Approve the Amendment to Waste Disposal
Agreement
Recommendation: That the Board of Directors adopt Resolution No. 2016-878
and approve the amendment to the Waste Disposal agreement.
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Mr. Carroll shared that the County of Orange requested that the District approve the
Waste Disposal Agreement because the dates within the agreement have changed.
Mr. Mosher provided comments regarding the purpose of the Waste Disposal
Agreement and the consequences of Orange County landfills generating profit from
residents outside of the County.
Discussion followed regarding the initial purpose of the agreement and its benefits and
drawbacks.
Vice President Perrymade a motion to adopt Resolution No. 2016-878 and approve the
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amendment to the Waste Disposal Agreement. Assistant Secretary Ooten seconded the
motion, which passed unanimously with a 4-0 vote with Assistant Secretary Schafer not
present.
ENGINEER'S REPORTS
15. Prosect Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer, Robin Hamers, presented the Project Status Report. He noted that the
District has one project completed, two projects under construction, and three projects
out to bid. Mr. Hamers added that the bid opening is on March 1, 2016.
Discussion followed regarding the completion of the manhole rehabilitation project.
Secretary Ooten requested that a discussion and prioritization of Capital Improvement
Projects (CIP) occur at the next Study Session on March 8, 2016.
Mr. Carroll noted that a CIP report will be presented at the next Study Session.
Discussion followed regarding the impact of the new building acquisition on future CIP
projects.
There were no further questions or discussion and the report was received.
16. Conflict of Interest Report
Recommendation: That the Board of Directors receive and file the report.
Mr. Hamers presented report details regarding three projects that will be referred to the
Alternate District Engineer.
There were no further questions or discussion and the report was received.
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17. Project #312 Aviemore TerraceNalley Pump Station Rehabilitation — Acceptance
of Improvements
Recommendation: That the Board of Directors approves the following action:
1. Accept improvements as completed and file a Notice of Completion.
2. Exonerate Labor and Material Bond 35 days after Notice of Completion is
recorded and exonerate Faithful Performance Bond one year after Notice
of Completion is recorded.
Mr. Hamers reported that Project #312 is completed and noted that the project included
the replacement of pumps, bases, piping valves, and diagrams. He added that electrical
work will be completed in the future.
Discussion followed regarding the future replacement of the electrical cabinets and the
cost of a force main replacement.
Secretary Ooten made a motion to accept improvements as completed, file a Notice of
Completion, exonerate the Labor and Material Bond 35 days after the Notice of
Completion is recorded, and exonerate the Faithful Performance Bond one year after
the Notice of Completion is recorded. Vice President Perry seconded the motion.
Discussion followed regarding whether the two recommended actions must be
approved separately.
President Scheafer amended the initial motion and second.
Secretary Ooten made a motion to accept improvements as completed and file a Notice
of Completion. Vice President Perry seconded the motion, which passed unanimously
with a 4-0 vote with Assistant Secretary Schafer not present.
Secretary Ooten made a motion to exonerate the Labor and Material Bond 35 days after
the Notice of Completion is recorded and exonerate the Faithful Performance Bond one
year after the Notice of Completion is recorded. Vice President Perry seconded the
motion, which passed unanimously with a 4-0 vote with Assistant Secretary Schafer not
present.
TREASURER'S REPORTS
18. Resolution No. 2016-879 — Intent to Lease-Purchase Financing with CSDA
Finance Corporation for the property at 290 Paularino Avenue
Recommendation: That the Board of Directors adopt Resolution No. 2016-879.
District Treasurer, Marc Davis, requested that this item be continued until such time as
the improvements for the new building are determined.
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Vice President Perry asked when Mr. Carroll anticipates that the item will be discussed.
Mr. Carroll shared that staff will be meeting with a consultant on February 29, 2016 and
that a Special Meeting will be scheduled to discuss this item after that date.
Vice President Perry made a motion to continue Item 18 until the improvements for the
new building are determined. Secretary Ooten seconded the motion, which passed
unanimously with a 4-0 vote with Assistant Secretary Schafer not present.
ATTORNEY'S REPORTS — None
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Secretary Ooten)
Recommendation: That the Board of Directors accepts oral report.
Secretary Ooten provided an overview of the OCSD meeting and noted that the budget
calendar was approved and the finance committee held a 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 SARFPA did not have a meeting this month.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer provided an oral report regarding the Executive Committee Meeting.
He noted that ISDOC is in the process being audited and he established an Ad Hoc
Committee to find speakers for ISDOC's quarterly meetings.
Director Ferryman and Mr. Davis offered to provide contact information for potential
speakers.
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer noted that Assistant Secretary Schafer is not present to provide a
report. He shared that he is part of the CSDA Professional Development Committee and
participated in the selection of the proposed speakers for CSDA's Annual Conference.
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E. Special District Risk Management Authority (SDRMA) — (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported that the focus of the SDRMA meeting was the Strategic
Plan. He noted that there will be no rate increase for SDRMA members.
F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Recommendation: That the Board of Directors accepts oral report.
President Scheafer noted that he met with Mr. Carroll on February 17, 2016.
Director Ferryman noted that he spoke with a group in Mission Viejo last week.
OLD BUSINESS—None
NEW BUSINESS—None
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Secretary Ooten requested clarification regarding a budget schedule for the two-year
budget.
ADJOURN TO CLOSED SESSION
President Scheafer adjourned to closed session at 6:22 P.M. to discuss the evaluation
of General Manager, Scott Carroll.
District Counsel, Alan Burns, clarified that the Board of Directors will be conducting two
closed sessions: one to speak with the General Manager about his performance
evaluation and one to give a Board Member authority to be the Labor Negotiator in
discussing the General Manager's employment agreement terms.
RECONVENE TO OPEN SESSION
President Scheafer reconvened to open session at 6:39 P.M. President Scheafer
indicated that the Board of Directors gave him the authority to be the Labor Negotiator
and directed him to meet with the General Manager to discuss the terms of his
agreement for the next year.
ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 6:39 P.M.
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