Minutes - Board - 2016-05-26 SAN6;4:6
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MAY 26, 2016
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
May 26, 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, Arthur Perry, Robert
Ooten, Arlene Schafer, James Ferryman
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Alan Burns,
District Counsel; Robin Hamers, District
Engineer; Wendy Davis, Finance Manager;
Marc Davis, District Treasurer; Dyana
Bojarski, Management Analyst II; and
Noelani Middenway, District Clerk.
OTHERS PRESENT: Sonia Triana, resident; Jim Mosher, resident;
and Luke Money, The Daily Pilot.
CEREMONIAL MATTERS AND PRESENTATIONS—NONE
ANNOUNCEMENT OF LATE COMMUNICATIONS
General Manager, Scott Carroll, presented a late communication from Jim Mosher, a
resident, regarding Item 26. Mr. Carroll provided clarification about the case number
referred to in Item 26 (#2).
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
President Scheafer shared that Mr. Carroll requested for Items 17 and 18 to be pulled
from the agenda for procedural reasons, as recommended by District Counsel, Alan
Burns.
PUBLIC COMMENTS
President Scheafer opened public comments and invited Sonia Triania, a Costa Mesa
resident, to address the Board of Directors.
Ms. Triana presented an issue regarding the movement of her trash carts by a neighbor.
Discussion followed regarding the District's Ordinance No. 37.
President Scheafer noted that Code Enforcement Officer, Ed Roberts, will provide a
report of Ms. Triana's issue at the next Study Session on June 14, 2016. Seeing no
other members of the public wishing to speak, President Scheafer closed public
comments.
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of April 12, 2016 Meeting Minutes of April 12, 2016 was
approved as presented.
2. Board of Directors Special Meeting The Board of Directors Special Meeting
Minutes of April 20, 2016 Minutes of April 20, 2016 was approved as
presented.
3. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of April 28, 2016 Minutes of April 28, 2016 was approved as
presented.
4. Occupancy Report and Payment to The Board of Directors accepted the
CR&R Environmental Services occupancy count as presented using
22,380 as the correct number of active
units and directed staff to prepare a
warrant to CR&R Environmental Services
in the amount of$219,221.05 to be ratified
in the May 2016 warrant list, for April 2016
collection.
5. Contract Payment to CR Transfer The Board of Directors approved payment
for Recycling & Disposal Services to CR Transfer in the amount of
$189,365.32 for recycling and disposal
services for the month of April 2016.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
6. Adoption of Warrant Resolution No. The Board of Directors adopted Warrant
CMSD 2016-11 Approving District Resolution No. CMSD 2016-11 approving
Warrant Registers District warrants for the month of April
2016 in the amount of$1,260,569.74.
7. Payroll Transparency Disclosure for The Board of Directors approved the
April 2016 Payroll Transparency Disclosure for April
2016 as presented.
8. Directors' Compensation and The Board of Directors approved the
Reimbursement of Expenses Directors' Compensation and
Reimbursement of Expenses for April
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
April 2016 Investment Report for the month of April
2016 as presented.
11.Resolution No. 2016-881 The Board of Directors adopted Resolution
No. 2016-881 ordering that publication of
Ordinance No. 112 revising the District's
requirements for sewer permits has
occurred.
Assistant Secretary Schafer made a motion to approve the Consent Calendar as
presented. Vice President Perry seconded the motion, which passed unanimously with
a 5-0 vote.
There were no further questions or comments.
END OF CONSENT CALENDAR
PUBLIC HEARINGS—NONE
GENERAL MANAGER'S REPORTS
12. Ordinance No. 114—Adopting a Revised Operations Code
Recommendation: That the Board of Directors adopt Ordinance No. 114 revising
the District's Operations Code.
Mr. Carroll provided an overview of the revisions to the Operations Code.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
Vice President Perrymade a motion to adopt Ordinance No. 114. Assistant Secretary
P
Schafer seconded the motion.
Mr. Mosher provided comments regarding the format of the revised Operations Code
and procedures that may require further discussion.
President Scheafer called a vote, which carried unanimously, 5-0.
There were no further questions or comments.
13. Resolution No. 2016-882 —Administrative Policies
Recommendation: That the Board of Directors approves adopting Resolution
No. 2016-882 readopting Administrative Policies Manual to supplement
personnel rules set forth in the Employee Handbook.
Mr. Carroll presented Resolution No. 2016-882 and noted a change in title from
"Administrative Regulations" to "Administrative Policies."
Discussion followed regarding the title change and the difference in meaning between
"regulations" and "policies."
Vice President Perry made a motion to approve the adoption of Resolution No. 2016-
882. Secretary Ooten seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
14. Resolution No. 2016-883— Employee Handbook
Recommendation: That the Board of Directors approves adopting Resolution No.
2016-883 readopting the Employee Handbook setting forth personnel rules.
Mr. Carroll presented Resolution No. 2016-883 and noted that the Employee Handbook
relates to personnel policies and procedures.
Assistant Secretary Schafer made a motion to approve the adoption of Resolution No.
2016-883. Director Ferryman seconded the motion, which passed unanimously with a 5-
0 vote.
There were no further questions or comments.
15. Resolution No. 2016-884 — Authorizing the Sale of the Property at 628 W. 19th
Street, Costa Mesa, and Making Findings Relating Thereto
Recommendation: That the Board of Directors approves adopting Resolution No.
2016-884 authorizing the sale of the property at 628 W. 19th Street, Costa Mesa,
and making findings relating thereto.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
Mr. Carrollp resented Resolution No. 2016-884. He noted that the resolution h r I
utlon was
recommended by District Counsel, Alan Burns, in order for the District to maintain
conformance with the General Plan.
Mr. Mosher provided commentary and requested clarification regarding the term
"properly given authority."
Mr. Carroll explained that the term gives Mr. Carroll the authority to execute documents
relating to the sale of the building at 628 W. 19th Street, Costa Mesa.
Vice President Perry made a motion to approve the adoption of Resolution No. 2016-
884. Assistant Secretary Schafer seconded the motion, which passed unanimously with
a 5-0 vote.
There were no further questions or comments.
16. Board of Directors Health Insurance
Recommendation:
1. That the Board of Directors direct staff to file a termination resolution for
non-CaIPERS members to be filed in July 2016 with an effective date of
January 2017; or
2. That the Board of Directors continue the option for Board members to
participate in the District's health insurance plan.
Dyana Bojarski, Management Analyst II, provided report details and noted that none of
the Board members currently participate in the health plan.
Discussion followed regarding the termination process, health benefits offered by other
special districts, and the possibility of future board members obtaining a health
insurance.
Assistant Secretary Schafer made a motion to approve Option 1, directing staff to file a
termination resolution for non-CaIPERS members to be filed in July 2016 with an
effective date of January 2017. Director Ferryman seconded the motion, which passed
unanimously with a 5-0 vote.
There were no further questions or comments regarding Item 16.
President Scheafer noted that Items 17 and 18 were pulled from the agenda, but will be
brought back to the Board of Directors at a future meeting.
19. Budget Transfer Grade 5 Pipe Rehab Proiect#315
Recommendation: That the Board of Directors approves the appropriation of
funds as follows:
ISI
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
Account Account Number Increase Decrease
Grade 5 Pipe Rehab#315 20-201315-4300 $500,000
Westside PS Abandonment#101 20-200601-4300 $500,000
Mr. Carroll presented the proposed budget transfer of$500,000 to repair Grade 5 sewer
sections.
Secretary Ooten made a motion to approve the appropriation of$500,000 for the Grade
5 Pipe Rehab Project#315. Vice President Perry seconded the motion.
Secretary Ooten commented that Project#101 has not been officially suspended; rather
it was taken off of Orange County Sanitation District's (OCSD) last agenda.
Discussion followed regarding the necessity of funding the District's Grade 5 repairs.
President Scheafer called for a vote, which carried unanimously, 5-0.
There were no further questions or comments.
20. Proposed California Special District Association Bylaws Updates
Recommendation: That the Board of Directors authorize President Scheafer to
vote on behalf of the District, whether in favor or against, adopting the 2016
proposed CSDA Bylaws Amendments.
Mr. Carroll presented CSDA's proposed bylaw updates.
Director Ferryman made a motion to authorize President Scheafer to vote on behalf of
the District, whether in favor or against, adopting the 2016 proposed CSDA Bylaws
Amendments. Vice President Perry seconded the motion, which passed unanimously
with a 5-0 vote.
There were no further questions or comments.
ENGINEER'S REPORTS
21. Prosect Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer, Robin Hamers, presented the Capital Improvement Program (CIP)
report and noted that the 23rd Street pump station is now operational.
Discussion followed regarding anticipating summer power outages and the Calvert
Avenue generator.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
There were no further questions or comments and the report was received.
22. Conflict of Interest Report
Nothing to report at this time.
Mr. Hamers noted that there is nothing to report at this time.
23. Project 196-C Installation of Backup Power for 23rd Pump Station — Acceptance
of Improvements
Recommendation: That the Board of Directors:
1. Accept improvements as completed and file a Notice of Completion.
2. Authorize payment of 5% retention 35 days after Notice of Completion is
recorded.
3. 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 shared that Project 196-C is complete and requires an acceptance of
improvements.
Secretary Ooten made a motion to accept improvements as completed and file a Notice
of Completion, authorize payment of 5% retention 35 days after Notice of Completion is
recorded, 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. Assistant Secretary Schafer seconded the motion.
Mr. Mosher provided commentary and requested clarification regarding the final project
cost.
Finance Manager, Wendy Davis, noted that staff has not yet received all of the bills for
the project, and thus does not have the final cost yet.
President Scheafer called for a vote, which carried unanimously, 5-0.
There were no further questions or comments.
24. 1527 Newport Blvd. — Acceptance of Sewer Improvements Constructed by
Private Developer
Recommendation: That the Board of Directors accept sewer improvements and
exonerate bonds.
Mr. Hamers provided a brief overview of the project at 1527 Newport Blvd.
Discussion followed regarding how other new developments in Costa Mesa connect to
the main sewer line.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
Assistant Secretary Schafer made a motion to accept sewer improvements and
exonerate bonds. Secretary Ooten seconded the motion, which passed unanimously
with a 5-0 vote.
There were no further questions or comments.
TREASURER'S REPORTS
25. Finance Update for the Property at 290 Paularino Avenue — Oral Report
Recommendation: That the Board of Directors receive and file the report.
District Treasurer, Marc Davis, provided an update on the status of the District's
finances in regards to the purchase of the new building at 290 Paularino Avenue.
Ms. Davis proposed that the District pay in cash for the new building rather than
financing through CSDA Finance Corporation.
Discussion followed regarding using CSDA Finance Corporation to finance future pump
station rehabilitation projects and the benefits of paying for the new building in cash.
The Board of Directors directed staff to inform CSDA that the District will not move
forward with financing the purchase of the building.
There were no further questions or comments and the report was received.
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 provided an overview of the OCSD meeting and noted that the
extension of the alternate engineer agreement with the District was approved.
B. Santa Ana River Flood Protection Agency (SARFPA)— (Vice President Perry)
Recommendation: That the Board of Directors accepts oral report.
Vice President Perry shared that he and Director Ferryman attended the SARFPA
meeting and noted that there was discussion regarding raising the annual membership
fee from $1100 to $1300.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
Recommendation: That the Board of Directors accepts oral report.
President Scheafer provided an overview of the ISDOC meeting and noted that there
was discussion regarding future speakers and the local agency formation commission
(LAFCO).
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer provided an overview of CSDA Legislative Days and noted
that she and District staff met with Senator John Moorlach and Assemblyman Harper
regarding key legislation.
E. Special District Risk Management Authority(SDRMA)— (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer provided an overview of the SDRMA Board Meeting and noted that
Workers' Compensation rates are increasing.
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 shared that he conducted a check presentation for the Battery
Recycling Program at California Elementary School on May 6, 2016.
Secretary Ooten noted that he attended a Sexual Harassment Certification at Orange
County Sanitation District and the Orange Coast College Recycling Center
groundbreaking ceremony.
OLD BUSINESS—NONE
NEW BUSINESS—NONE
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Scheafer requested to know the process for obtaining a pool construction
permit from the District.
Secretary Ooten requested information regarding adding new residential constructions
to the tax rolls for waste collection service.
President Scheafer recommended having a meeting at 290 Paularino, Costa Mesa in
June.
COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 26, 2016
ADJOURN TO CLOSED SESSION
26. Conference With Legal Counsel — Existing Litigation
(Government Code Section 54956.9(d)(1)):
1. Costa Mesa Sanitary District v. Santa Ana Regional Water Quality Control
Board (OC Sup Ct# 30-2016-0084260 CU-CM-CJC)
(Government Code Section 54956.9(d)(1) and (4):
2. Claim of Costa Mesa Sanitary District filed with the Victim Compensation
and Government Claims Board, Claim No. C628876 (Caltrans)
President Scheafer adjourned to closed session at 7:09 P.M.
RECONVENE TO OPEN SESSION
President Scheafer reconvened to open session at 7:20 P.M. and indicated that there
was no reportable action for Item 26 (#1). He noted that the Board of Directors
authorized Mr. Burns to move forward with the lawsuit against Caltrans for
compensation damages, which passed unanimously with a 5-0 vote.
ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 7:20 P.M.
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Robert Ooten Mice .el Scheafer
Secretary President