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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 23, 2016
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
June 23, 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, 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; Gina
Terraneo, Management Analyst I.
OTHERS PRESENT: Luke Money, The Daily Pilot; Lawrence
Jones, CR&R; Jeffrey Reese, CJ Segerstrom
& Sons, Shawna Schaffner, CAA Planning.
CEREMONIAL MATTERS AND PRESENTATIONS—NONE
ANNOUNCEMENT OF LATE COMMUNICATIONS—NONE
PUBLIC COMMENTS—NONE
President Scheafer opened public comments. Seeing no one from the public wishing to
comment, President Scheafer closed public comments.
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of May 10, 2016 Meeting Minutes of May 10, 2016 was
approved as presented.
2. Board of Directors Special Meeting The Board of Directors Special Meeting
Minutes of May 13, 2016 Minutes of May 13, 2016 was approved as
presented.
3. Board of Directors Special Meeting The Board of Directors Special Meeting
Minutes of May 18, 2016 Minutes of May 18, 2016 was approved as
presented.
4. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of May 26, 2016 Minutes of May 26, 2016 was approved as
presented.
5. Occupancy Report and Payment to The Board of Directors accepted the
CR&R Environmental Services occupancy count as presented using
22,390 as the correct number of active
units and directed staff to prepare a
warrant to CR&R Environmental Services
in the amount of $219,319.01 to be ratified
in the June 2016 warrant list, for May 2016
collection.
6. Contract Payment to CR Transfer The Board of Directors approved payment
for Recycling & Disposal Services to CR Transfer in the amount of
$163,924.19 for recycling and disposal
services for the month of May 2016.
7. Adoption of Warrant Resolution No. The Board of Directors adopted Warrant
CMSD 2016-12 Approving District Resolution No. CMSD 2016-12 approving
Warrant Registers District warrants for the month of May
2016 in the amount of$3,611,410.27.
8. Payroll Transparency Disclosure for The Board of Directors approved the
May 2016 Payroll Transparency Disclosure for May
2016 as presented.
9. Directors' Compensation and The Board of Directors approved the
Reimbursement of Expenses Directors' Compensation and
Reimbursement of Expenses for May 2016
as presented.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
10.Sewer Lateral Assistance Program The Board of Directors approved the SLAP
(SLAP) Update report as presented.
11.Investment Report for the Month of The Board of Directors approved the
May 2016 Investment Report for the month of May
2016 as presented.
12.Resolution No. 2016-885 — Board of President Scheafer pulled Item 12 for
Directors Health Insurance discussion.
13.Resolution No. 2016-886 Ordering The Board of Directors adopted Resolution
that Publication of Ordinance No. No. 2016-886 as presented.
114 Adopting a Revised Operations
Code has Occurred.
14.Auditor Communication Letter Audit The Board of Directors approved and filed
FY 2015-16 the Auditor Communication Letter as
presented.
Vice President Perry made a motion to approve the Consent Calendar as presented,
except for Item 12. Assistant Secretary Schafer seconded the motion, which passed
unanimously with a 5-0 vote.
President Scheafer asked if a Board Member that was elected in November of 2016
would have the opportunity to purchase a health care plan.
Scott Carroll, General Manager, noted that they would not.
President Scheafer made a motion to approve Item 12. 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
15. Consideration of Solid Waste Annual Charges for FY 2016 -17 to be
Collected with the General Taxes
A. Presentation of Report
B. Open Public Hearing
C. Close Public Hearing
it
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
D. Recommendation: That the Board of Directors Adopt Resolution
No. 2016-887 confirming the solid waste annual charges for FY
2016-17 to be collected with the general taxes and direct the
District Clerk to File with County Auditor.
Mr. Carroll presented the report and noted that there was no increase to the
District's solid waste annual charges.
President Scheafer opened the public hearing. Seeing no one wishing to comment,
President Scheafer closed the public hearing.
Vice President Perry made a motion to adopt Resolution No. 2016-887. Director
Ferryman seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
16. Consideration of Wastewater Annual Charges for FY 2016-17 to be
Collected with the General Taxes
A. Presentation of Report
B. Open Public Hearing
C. Close Public Hearing
D. Recommendation: That the Board of Directors Adopts Resolution
No. 2016-888 confirming the wastewater annual charges for FY
2016-17 to be collected with the general taxes and direct the
District Clerk to File with County Auditor
Mr. Carroll presented the report and noted that was a 2% increase in the annual
wastewater charge.
President Scheafer opened the public hearing. Seeing no one wishing to comment,
President Scheafer closed the public hearing.
Assistant Secretary Schafer made a motion to adopt Resolution No. 2016-888.
Secretary Ooten seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
17. Adoption of Ordinance No. 115 Confirming Annual Charges for Solid Waste
and Wastewater for FY 2016-17
Recommendation: That the Board of Directors adopt Ordinance No.
115 confirming annual charges for Solid Waste and Wastewater for FY
2016-17.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
Mr. Carroll presented Ordinance No. 115.
President Scheafer opened the public hearing. Seeing no one wishing to comment,
President Scheafer closed the public hearing.
Vice President Perry made a motion to adopt Ordinance No. 115. Assistant
Secretary Schafer seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
GENERAL MANAGER'S REPORTS
18. CMSD — Contribution Program Application — Estancia Boosters Stadium Banner
Recommendation: That the Board of Directors accepts the application from the
Estancia High School Football Program and approve a monetary contribution of
$500 for a stadium banner.
Vice President Perry recused himself at 5:40 P.M. due to his relationship to the
contribution requestor, Chuck Perry.
Gina Terraneo, Management Analyst I, presented the request for a monetary
contribution of$500 for an Estancia Boosters stadium banner.
Secretary Ooten made a motion to approve the monetary contribution of$500. Assistant
Secretary Schafer seconded the motion, which carried unanimously with a 4-0-1 vote
with Vice President Perry abstaining.
There were no further questions or comments.
Vice President Perry reentered the meeting at 5:41 P.M.
19. Budget Unappropriation — Westside Pump Station Abandonment Project
#101
Recommendation: That the Board of Directors approves the unappropriation of
funds as follows:
Account Account Number Increase Decrease
Net Position (RE) 20-200000-2990 $3,260,000
Westside PS Abandonment #101 20-200000-2990 $3,260,000
Wendy Davis, Finance Manager, presented report details.
Secretary Ooten requested that Mr. Carroll send a letter to the Orange County
Sanitation District to confirm that Project#101 will no longer take place.
Discussion followed regarding the project's status.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
Assistant Secretary Schafer made a motion to approve the unappropriation of funds
from Westside Pump Station Abandonment Project #101 to Net Position. Secretary
Ooten seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
20. California Special Districts Association 2016 Board Elections
Recommendation: That the Board of Directors elect a representative to the
CSDA Board of Directors Southern Network Seat B and authorize President
Scheafer to vote on the District's behalf.
Mr. Carroll presented the available candidates for election.
Assistant Secretary Schafer suggested that the Board of Directors support Bill Nelson.
Assistant Secretary Schafer made a motion to elect Bill Nelson and authorize President
Scheafer to vote on behalf of the District. Director Ferryman seconded the motion,
which passed unanimously with a 5-0 vote.
There were no further questions or comments.
24. APN 415-102-17 (Parcel North of 1580-1590 Scenic Avenue)— Request for
Vacation/Abandonment of CMSD Sewer and Easement
Recommendation: That the Board of Directors:
1. Accept Option 2, as agreed to by the buyer/developer, as the
preferred alternative.
2. Approve and record the quitclaim deed with the legal description
and map as attachments.
3. Require the buyer/developer to construct a new end of line sewer
manhole at the northerly terminus of the remaining sewer and
easement.
4. Discuss whether requiring compensation from the property owner
for the quitclaim is appropriate.
Secretary Ooten suggested that Item 24 be moved up in the agenda to accommodate
members of the public in attendance.
President Scheafer allowed for Item 24 to be moved up in the agenda.
Rob Flamers, District Engineer, provided report details.
Alan Burns, District Counsel, noted that an indemnification agreement should be
included in the recommendation to cover the sewer's use.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
Discussion followed regarding the intended use of the sewer and how the District should
go about abandoning the sewer.
President Scheafer invited Shawna Schaffner of CAA Planning and Jeff Reese of CJ
Segerstrom & Sons to provide comments. Ms. Schaffner and Mr. Reese provided
comments regarding staffs recommendation and the approximate value of the sewer.
Secretary Ooten made a motion for the following action, as a result of the discussed
findings that the Board of Directors see value in abandoning the sewer and easement
as they provide no value for the District to keep and maintain:
• Accept Option 2, as agreed to by the buyer/developer, as the preferred
alternative;
• Refrain from requiring compensation from the property owner for the quitclaim;
• Prepare, approve, and record the quitclaim deed with the legal description and
map as attachments;
• Require the buyer/developer to construct a new end of line sewer manhole at the
northerly terminus of the remaining sewer and easement; and
• Include an indemnification agreement to hold the District harmless for anything
that may result from the District allowing the sewer to stay in the ground.
Assistant Secretary Schafer seconded the motion, which passed unanimously with a 5-
0 vote.
There were no further questions or comments.
21. Joint Study with Mesa Water District— Optimum Government Structure
Recommendation: That the Board of Directors give staff direction.
Mr. Carroll provided report details.
Secretary Ooten noted that he attended Mesa Water District's June 16, 2016 Board
Meeting and provided an overview of the meeting.
Discussion followed regarding concerns about the District's lack of input in the Request
for Proposal (RFP) and the cost of the joint study.
Director Ferryman suggested that the Board of Directors write a letter to decline
participation in the joint study.
Discussion followed regarding the method by which Arcadis will gather information for
the study, the focus areas of the study, and the importance of transparency to the RFP
process.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
Director Ferryman made a motion to enact Option 3 and send a letter to Mesa Water
District declining participation in the joint study. Assistant Secretary Schafer seconded
the motion, which passed unanimously with a 5-0 vote.
Discussion followed regarding how to proceed with the editing process for the letter.
There were no further questions or comments.
ENGINEER'S REPORTS
22. Project Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer, Robin Hamers, presented the Capital Improvement Program (CIP)
report.
There were no further questions or comments and the report was received.
23. Conflict of Interest Report
Nothing to report at this time.
Mr. Hamers noted that there is nothing to report at this time.
25. Adams Pump Station Electrical Improvements
Recommendation: That the Board of Directors:
1. Approve an appropriation from Net Position in the amount of $116,000 to
fund the project.
2. Approve in concept the points described in the staff report, which have
been approved by the property owner of 2043 Calvert Avenue, Cesar
Ibarra.
3. Direct the General Manager to complete the project as shown in the
project budget including bringing back an easement deed, legal
description, and map, signed by Mr. Ibarra for acceptance and recording
by the Board of Directors.
Mr. Hamers presented report details.
Secretary Ooten made a motion to approve the appropriation of $116,000 from Net
Position, approve the points described in the staff report, and direct the General
Manager to complete the project. Director Ferryman seconded the motion, which carried
unanimously with a 5-0 vote.
There were no further questions or comments.
TREASURER'S REPORTS
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
26. Statement of Investment Policy for Fiscal Year 2016-17 & Adoption of Resolution
No. 2016-889
Recommendation: That the Board of Directors adopt Resolution No. 2016-889
approving the Policy and delegating the investment function to the District
Treasurer for the 2016-17 fiscal year.
District Treasurer, Marc Davis, provided report details and noted that the redline version
of the Investment Policy was included to show changes made.
Vice President Perry made a motion to adopt Resolution No. 2016-889 and delegate the
investment function to the District Treasurer for FY 2016-17. Director Ferryman
seconded the motion, which passed unanimously with a 5-0 vote.
There were no further questions or comments.
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 there is a
joint open house with OCSD and Orange County Water District (OCWD) on August 13,
2016.
B. Santa Ana River Flood Protection Agency(SARFPA) — (Vice President Perry)
Recommendation: That the Board of Directors accepts oral report.
Vice President Perry shared the he and Director Ferryman attended SARFPA. He noted
that Director Ferryman was elected as Vice President of SARFPA.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer noted that he missed the last ISDOC meeting.
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer shared that she attended CSDA's Strategic Planning
Session in Lake Tahoe.
COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 23, 2016
E. Special District Risk Management Authority (SDRMA) — (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer noted that he attended the SDRMA Conference in Atlanta.
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.
Vice President Perry noted that he attended a Water Advisory Committee of Orange
County (WACO) meeting on June 3, 2016.
Secretary Ooten shared that he and Vice President Perry attended a Chamber of
Commerce meeting.
OLD BUSINESS—NONE
NEW BUSINESS— NONE
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Assistant Secretary Schafer shared that CSDA will be holding its annual conference in
San Diego from October 10-13, 2016.
Mr. Burns noted that the Attorney General requested more time to prepare the record in
regards to closed session Item 27.
President Scheafer noted that a closed session discussion of Item 27 is no longer
necessary as there is nothing new to report.
Discussion followed regarding scheduling a tour of CR&R's AD Facility.
ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 7:13 P.M.
Robert Ooten Mi ael Scheafer
Secretary President