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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MARCH 24, 2016
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
March 24, 2016 at 5:30 P.M. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF President Scheafer led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION President Scheafer led the Invocation.
ROLL CALL DIRECTORS PRESENT: Michael Scheafer, Robert Ooten, Arlene
Schafer, James Ferryman
DIRECTORS ABSENT: Arthur Perry
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
Resolution No. 2016-878 — Proclamation recognizing Mesa Water District for
successfully reaching the conservation goal of reducing its service area's potable water
use by 20%.
President Scheafer introduced Resolution No. 2016-878.
Secretary Ooten made a motion to approve Resolution No. 2016-878. Director
Ferryman seconded the motion, which passed unanimously with a 4-0 vote with Vice
President Perry not present.
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Discussion followed regarding the date that the proclamation will be presented.
ANNOUNCEMENT OF LATE COMMUNICATIONS-NONE
District Counsel, Alan Burns, noted a non-substantive revision to the staff report for Item
22 regarding Ordinance No. 112.
PUBLIC COMMENTS-NONE
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of February 9, Meeting Minutes of February 9, 2016 was
2016 approved as presented.
2. Board of Directors Special Meeting The Board of Directors Special Meeting
Minutes of February 22, 2016 Minutes of February 22, 2016 was
approved as presented.
3. Board of Directors Regular Meeting Assistant Secretary Schafer pulled this
Minutes of February 25, 2016 item for discussion.
4. Occupancy Report and Payment to The Board of Directors accepted the
CR&R Environmental Services occupancy count as presented using
22,153 as the correct number of active
units and directed staff to prepare a
warrant to CR&R Environmental Services
in the amount of $216,997.50 to be ratified
in the March 2016 warrant list, for
February 2016 collection.
5. Contract Payment to CR&R The Board of Directors approved payment
Environmental Services for to CR&R Environmental Services in the
Recycling & Disposal Services amount of $169,124.90 for recycling and
disposal services for the month of March
2016.
6. Adoption of Warrant Resolution No. The Board of Directors adopted Warrant
CMSD 2016-09 Approving District Resolution No. CMSD 2016-09 approving
Warrant Registers District warrants for the month of February
2016 in the amount of$1,284,611.64.
7. Payroll Transparency Disclosure for The Board of Directors approved the
February 2016 Payroll Transparency Disclosure for
February 2016 as presented.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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8. Directors' Compensation and The Board of Directors approved the
Reimbursement of Expenses Directors' Compensation and
Reimbursement of Expenses for February
2016 as presented.
9. Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
10.Investment Report for the Month of The Board of Directors approved the
February 2016. Investment Report for the month of
February 2016 as presented.
Assistant Secretary Schafer made a motion to approve the Consent Calendar, omitting
Item 3 because she was not present for the February 25, 2016 Board Meeting. Director
Ferryman seconded the motion, which passed unanimously with a 4-0 vote with Vice
President Perry not present.
Secretary Ooten made a motion to approve Item 3. Director Ferryman seconded the
motion, which passed with a 3-0-1 vote with Assistant Secretary Schafer abstaining and
Vice President Perry not present.
END OF CONSENT CALENDAR
PUBLIC HEARINGS—NONE
GENERAL MANAGER'S REPORTS
11. Refund of Sanitary Assessment— 975 W. 18th Street
Recommendation: That the Board of Directors approve a refund in the amount of
$13,259.49.
Scott Carroll, General Manager, presented the staff recommendation and noted that the
Board of Directors may change the approved refund amount to a smaller amount.
Finance Manager, Wendy Davis, provided report details. Ms. Davis noted that 975 W.
18th Street is a paved lot with no sewer or water hook-ups that has been charged an
industrial wastewater rate since the property owner's purchase of the lot.
Discussion followed regarding the property owner's claim that he has called the District
many times over the years, as well as the District's refund policy.
District Counsel, Alan Burns, noted that the District has an ordinance that states that
there is a 180 day statute of limitation for refunds of the current year's property tax
charge. Mr. Burns expressed concern that the District might set a precedent by
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refunding the property owner and noted that the District has a legal right to deny the
refund request.
Secretary Ooten made a motion to approve the refund in the amount of $13,259.49.
Director Ferryman seconded the motion.
Assistant Secretary Schafer made a motion to continue the item for the purpose of
obtaining more information on similar cases, which died for lack of a second.
The original motion to approve the refund in the amount of $13,259.49 passed with a 3-
1 vote with Vice President Perry not present.
12. Conflict of Interest Code Biennial Review
Recommendation: That the Board of Directors adopts Resolution No. 2016-
879 Amending Exhibit A (The Appendix) to the Costa Mesa Sanitary District
Conflict of Interest Code to Add a New Position and Make other Clarifying
Changes in the Listing of Designated Employees.
District Clerk, Noelani Middenway, provided report details regarding the District
positions that are required to file a Conflict of Interest form annually. She noted that
changes were made to Exhibit A, including a change from the Office Manager title to the
District Clerk title, the addition of the Finance Manager and the Wastewater
Superintendent positions, and the elimination of the Operations Manager and
Management Analyst positions as being required conflict of interest filers.
Assistant Secretary Schafer made a motion to approve the adoption of Resolution
No. 2016-879. Secretary Ooten seconded the motion, which passed unanimously
with a 4-0 vote with Vice President Perry not present.
13. Contract Administration and Inspection Services for Three Sewer Capital
Improvement Projects
Recommendation: That the Board of Directors receive and file this report. The
General Manager is approving the contract administration and inspection
services proposal from Robin B. Hamers & Associates (RBH) for all three
projects totaling $52,640. RBH will perform said services under his existing
contract with the District.
Scott Carroll, General Manager, shared that if the Board of Directors approves Items 18,
19, and 20, he will approve the contract administration and inspection services proposal
of $52,640 for RBH. Mr. Carroll noted that the industry standard for contract
administration and inspection services is about 10% of the project cost, and RBH's
proposal is below 10% of the project cost.
There were no further questions or discussion and the report was received.
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14. 290 Paularino Avenue — Building Upgrade Budget
Recommendation: That the Board of Directors receive and file this report.
Scott Carroll, General Manager, presented updates regarding the 290 Paularino
building upgrade budget. He noted that courtesy bids will come in on April 1st and a
Special Meeting will likely take place in the first week of April to discuss the budget.
Discussion followed regarding the anticipated closing date in April and the goal of
relocating to the new building by October 2016.
There were no further questions or discussion and the report was received.
15. CMSD Contribution Program Application — Costa Mesa Foundation Concerts in
the Park
Recommendation: That the Board of Directors accepts the application from the
Costa Mesa Foundation and approve a monetary contribution of$2,500.
Scott Carroll, General Manager, presented a contribution application from the Costa
Mesa Foundation requesting a monetary contribution of $2,500. Mr. Carroll noted that
the District contributed $2,500 for last year's events. Additionally, the District will have
the opportunity to hold a booth at all 4 events in July 2016.
Assistant Secretary Schafer made a motion to approve the contribution of $2,500.
Secretary Ooten seconded the motion, which passed unanimously with a 4-0 vote with
Vice President Perry not present.
ENGINEER'S REPORTS
16. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer, Robin Hamers, presented the Project Status Report.
There were no questions or discussion and the report was received.
17. Conflict of Interest Report
Nothing to report at this time.
There were no questions or discussion.
18. Project #200-B Harbor Force Main Rehabilitation Bid Opening and Award of
Contract
Recommendation: That the Board of Directors approve the following:
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1. Award a contract to the lowest responsive and responsible bidder, GCI
Construction, in the amount of$247,720; and
2. A contingency budget of 10% of construction cost in the amount of
$24,772.
District Engineer, Robin Hamers, presented the report details for Project #200-B. Mr.
Hamers noted that the bids for Projects #200-B, 202, and 310 came significantly below
the engineer's estimates.
Secretary Ooten made a motion to award the contract to GCI Construction in the
amount of $247,720 with a contingency budget of 10% of construction cost in the
amount of $24,772. Assistant Secretary Schafer seconded the motion, which passed
unanimously with a 4-0 vote with Vice President Perry not present.
19. Project No. 202 Elden Pump Station Valves & Piping Replacement Bid Opening
and Award of Contract
Recommendation: That the Board of Directors approve the following:
1. Award a contract to the lowest responsive and responsible bidder, GCI
Construction, in the amount of$259,300; and
2. A contingency budget of 10% of construction cost in the amount of
$25,930.
District Engineer, Robin Hamers, presented the report details.
Secretary Ooten made a motion to award the contract to GCI Construction in the
amount of $259,300 with a contingency budget of 10% of construction cost in the
amount of $25,930. Assistant Secretary Schafer seconded the motion, which passed
unanimously with a 4-0 vote with Vice President Perry not present.
20. Project No. 310 Indus Sewer & Manhole Rehabilitation Bid Opening and Award
of Contract
Recommendation: That the Board of Directors approve the following:
1. Award a contract to the lowest responsive and responsible bidder,
Insituform Technologies, LLC, in the amount of$218,458;
2. A contingency budget of 10% of construction cost in the amount of
$21,846; and
3. An additional contingency of $12,000 for the installation of a cured-in-
place liner in the existing manhole in the back yard of 2321 Mesa
Drive. Increase the General Manager's authority for authorization of extra
work to include $21,846 + $12,000 for a total of$33,846.
District Engineer, Robin Hamers, presented the report details.
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Assistant Secretary Schafer made a motion to award the contract to Insituform in the
amount of $218,458 with a contingency budget of 10% of construction cost in the
amount of $21,846 and an additional contingency of $12,000. Director Ferryman
seconded the motion, which passed unanimously with a 4-0 vote with Vice President
Perry not present.
TREASURER'S REPORTS- NONE
ATTORNEY'S REPORTS
21. General Manager's Agreement and 2016 Performance Goals
Recommendation: That the Board of Directors approves the General Manager's
Agreement and his 2016 Performance Goals.
District Counsel, Alan Burns, presented the General Manager's Agreement and his
2016 Performance Goals.
Assistant Secretary Schafer made a motion to approve the General Manager's
Agreement and his 2016 Performance Goals. Director Ferryman seconded the motion,
which passed unanimously with a 4-0 vote with Vice President Perry not present.
22. Ordinance No. 112 — Revising CMSD Operations Code Section 6.04.060
(Insurance, Bonding and License Status)
Recommendation: That the Board of Directors adopt Ordinance No. 112 making
changes to the sewer permit process and the District's requirements.
District Counsel, Alan Burns, presented the revision to the Operations Code Section
6.04.060. He noted that the District requires staff to verify the license status of
contractors who seek sewer permits. Additionally, the revision notes that contractors
that seek to work in the public right-of-way are required to have proper insurance to
obtain a sewer permit.
Secretary Ooten made a motion to adopt Ordinance No. 112. Director Ferryman
seconded the motion, which passed unanimously with a 4-0 vote with Vice President
Perry not present.
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD)— (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman provided an overview of the OCSD meeting. He noted that OCSD will
hire an engineering firm for support staff services for the next 7 years and the Rocky
Point Pump Station is in the process of being sold to Orange Coast College.
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B. Santa Ana River Flood Protection Agency (SARFPA) — (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman provided an overview of the SARFPA meeting. He noted an increase
in funding for the Santa Ana River Flood Control Project and a delay in funding for the
Westminster Eastern Garden Grove Project.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer shared that he missed the ISDOC Executive Committee Meeting.
Assistant Secretary Schafer noted that ISDOC discussed future programs and
speakers.
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer shared that CSDA Legislative Days are coming up in May
2016.
Discussion followed regarding bills that CSDA is tracking.
E. Special District Risk Management Authority (SDRMA) — (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer reported that there was no SDRMA meeting this month. He
provided a brief reminder of Safety/Claims Education Day on March 28-29, 2106 at the
Newport Beach Marriott Hotel and Spa.
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.
Secretary Ooten noted that he went to the Water Advisory Committee of Orange County
(WACO) meeting on March 4, 2016.
OLD BUSINESS— NONE
NEW BUSINESS
23. CSDA Award — Board Member of the Year — Oral Report from Assistant
Secretary Schafer
a
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CSDA Award — Board Member of the Year — Oral Report from Assistant
Secretary Schafer
Assistant Secretary Schafer noted that CSDA will be giving out a Board Member of the
Year Award and shared that she believes President Scheafer should be nominated.
Assistant Secretary Schafer made a motion to nominate President Scheafer for CSDA
Board Member of the Year. Director Ferryman seconded the motion, which passed
unanimously with a 4-0 vote with Vice President Perry not present.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Scheafer commended Scott Carroll on the article he wrote, entitled "Special
Districts Are Focused Governments, Not Shadow Governments," and congratulated
Wastewater Superintendent, Steve Cano, on his appointment to the Santa Ana River
Basin Section (SARBS) Board of Directors.
Assistant Secretary Schafer noted that the District was awarded 2015 Collection
System of the Year by SARBS.
Secretary Ooten noted that the Costa Mesa Community Run has a "hero" theme this
year and suggested the District feature the Sewer Slayer at its booth.
ADJOURN TO CLOSED SESSION
24. 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. R8-2015-0025.
(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 6:33 P.M.
RECONVENE TO OPEN SESSION
President Scheafer reconvened to open session at 6:41 P.M. President Scheafer
indicated that there was no action to report from the closed session meeting.
ADJOURNMENT
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COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 24, 2016
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 6:41 P.M.
4A ( U. . i
- Michael S• �=fer
Robert Ooten President
Secretary