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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
AUGUST 25, 2016
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
August 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 Secretary Ooten 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; Noelani Middenway, District Clerk;
Wendy Davis, Finance Manager; Marc Davis,
District Treasurer.
OTHERS PRESENT: Lawrence Jones, CR&R; Jim Mosher,
resident.
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 AUGUST 25, 2016
CONSENT CALENDAR
1. Board of Directors Study Session The Board of Directors Study Session
Meeting Minutes of July 12, 2016 Meeting Minutes of July 12, 2016 was
approved as presented.
2. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of July 28, 2016 Minutes of July 28, 2016 was pulled for
discussion.
3. Occupancy Report and Payment to The Board of Directors accepted the
CR&R Environmental Services occupancy count as presented using
22,408 as the correct number of active
units and directed staff to prepare a
warrant to CR&R Environmental Services
in the amount of $219,495.32 to be ratified
in the August 2016 warrant list, for July
2016 collection.
4. Contract Payment to CR Transfer The Board of Directors approved payment
for Recycling & Disposal Services to CR Transfer in the amount of
$196,600.62 for recycling and disposal
services for the month of July 2016.
5. Adoption of Warrant Resolution No. The Board of Directors adopted Warrant
CMSD 2017-02 Approving District Resolution No. CMSD 2017-02 approving
Warrant Registers District warrants for the month of July 2016
in the amount of $1,055,161.97.
6. Payroll Transparency Disclosure for The Board of Directors approved the
July 2016 Payroll Transparency Disclosure for July
2016 as presented.
7. Directors' Compensation and The Board of Directors approved the
Reimbursement of Expenses Directors' Compensation and
Reimbursement of Expenses for July 2016
as presented.
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
July 2016 Investment Report for July 2016 as
presented.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD AUGUST 25, 2016
10.Contract Payment to CR Transfer The Board of Directors directed staff to
for Christmas Tree Disposal prepare a warrant to CR Transfer in the
amount of $3,200.31 for January 2016
Christmas tree recycling and disposal
services to be ratified in the August 2016
warrant register.
President Scheafer noted a request to pull Item 2.
Assistant Secretary Schafer made a motion to approve the Consent Calendar, omitting
Item 2. Secretary Ooten seconded the motion, which passed with a 4-0-1 vote with Vice
President Perry absent.
Noelani Middenway, District Clerk, indicated that there was a minor clarification in the
language used to describe the closed session item in the minutes for the July 28, 2016
Board Meeting.
Directory Ferryman made a motion to approve Item 2. Secretary Ooten seconded the
motion, which passed with a 4-0-1 vote with Vice President Perry absent.
There were no further questions or comments.
END OF CONSENT CALENDAR
PUBLIC HEARINGS -NONE
GENERAL MANAGER'S REPORTS
11. Project No. 317 President Pump Station and Force Main Rehabilitation
Recommendation: That the Board of Directors approves the following:
1. Transfer $1,467,000 from Project 101 to Project 317; and
2. Appropriate $192,128 from OCSD when received to Project 317; and
3. Direct staff to request the additional appropriation of approximately
$1,500,000 at the time the construction contract is submitted for approval
to the Board.
Scott Carroll, General Manager, provided report details. He noted that the Orange
County Sanitation District's Board of Directors approved cancelling the Southwest Costa
Mesa Trunk Project and the appropriation of$192,128 to the District.
Assistant Secretary Schafer made a motion to transfer $1,467,000 from Project 101 to
Project 317, appropriate $192,128 from OCSD when received to Project 317, and direct
staff to request the additional appropriation of approximately $1,500,000 at the time the
construction contract is submitted for approval to the Board. Secretary Ooten seconded
the motion, which passed with a 4-0-1 vote with Vice President Perry absent.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD AUGUST 25, 2016
Discussion followed regarding the timeline and budget for Project 317.
Assistant Secretary Schafer requested that District Engineer, Rob Hamers, provide a
presentation about Project 317 at the October 11, 2016 Study Session.
There were no further questions or comments.
12. Community Outreach Survey
Recommendation: That the Board of Directors direct staff to begin soliciting bids
to perform a community outreach survey.
Mr. Carroll presented the proposed community outreach survey.
Discussion followed regarding the timeframe for the survey.
Secretary Ooten made a motion to direct staff to begin soliciting bids to perform a
community outreach survey. Assistant Secretary Schafer seconded the motion, which
passed with a 4-0-1 vote with Vice President Perry absent.
There were no further questions or comments.
ENGINEER'S REPORTS
13. 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 and provided updates outlined in the report.
Discussion followed regarding the effect of the drought on the District's wastewater
system.
There were no further questions or comments and the report was received.
14. Conflict of Interest Report
1. 2191 Mesa Drive, Newport Beach — Owned/developed by John and Marilyn
Raymont
2. 3011 Ceylon Road, Costa Mesa — Owned/developed by Kim McCartney
Mr. Hamers noted two conflict of interest reports to be filed.
There were no questions or comments and the report was received.
TREASURER'S REPORTS—NONE
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD AUGUST 25, 2016
ATTORNEY'S REPORTS
15. Cost to Prepare the Administrative Record in the Costa Mesa Sanitary District v.
Regional Water Quality Control Board Litigation
Recommendation: That the Board of Directors approve paying the administrative
record cost of$7,070.00.
Alan Burns, District Counsel, provided updates regarding the Writ of Mandate and the
public records request filed with the Mesa Water District. He noted that the Writ of
Mandate will be filed by Monday, August 29, 2016, and that the Mesa Water District
responded to the public records request with three requests for time extensions to
provide the requested information. Mr. Burns then presented the request for approval of
the administrative records payments of$7,070.00.
Director Ferryman made a motion to approve paying the administrative record cost of
$7,070.00. Secretary Ooten seconded the motion, which passed with a 4-0-1 vote with
Vice President Perry absent.
There were no further questions or comments.
LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (Director Ferryman)
Recommendation: That the Board of Directors accepts oral report.
Director Ferryman and Secretary Ooten provided an overview of the OCSD meeting on
August 24, 2016.
There were no further questions or comments and the report was received.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Vice President Perry)
Recommendation: That the Board of Directors accepts oral report.
Nothing to report at this time.
C. Independent Special Districts of Orange County (ISDOC) — (President
Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer provided an update regarding the upcoming ISDOC elections. He
noted that ballots will be sent out in mid-late September.
Discussion followed regarding campaign regulations.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD AUGUST 25, 2016
There were no further questions or comments and the report was received.
D. California Special Districts Association (CSDA) - (Assistant Secretary
Schafer)
Recommendation: That the Board of Directors accepts oral report.
Assistant Secretary Schafer provided an updated regarding the Little Hoover
Commission and the upcoming CSDA Annual Conference in San Diego.
There were no questions or comments and the report was received.
E. Special District Risk Management Authority (SDRMA) — (President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
President Scheafer provided updates regarding the Board Meeting on August 3-4, 2016
and tours that were provided of other special districts and their facilities.
There were no further questions or comments and the report was received.
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 provided an updated regarding the Ad Hoc Committee and a
meeting with Carolyn Cavecche, President and CEO of the Orange County Taxpayers
Association.
Assistant Secretary Schafer noted that she attended a reception for the CEO of the
Chamber of Commerce.
There were no further questions or comments and the report was received.
OLD BUSINESS—NONE
NEW BUSINESS—NONE
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Scheafer noted that there is a Liaison Meeting coming up on September 16,
2016 at the City of Costa Mesa.
Discussion followed regarding the upcoming meeting.
Mr. Hamers suggested that the Board of Directors honor former Board Member Jim
Warner.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD AUGUST 25, 2016
President Scheafer noted that he plans to adjourn the meeting in Mr. Warner's honor.
ADJOURN To CLOSED SESSION
16. 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)
2. Costa Mesa Sanitary District v. The State of California, acting through its
Department of Transportation (Caltrans) (OC Sup Ct #30-2016-00867168-
CU-E I-CXC)
Mr. Burns shared that a closed session is not necessary unless the Board of Directors
wishes to adjourn to closed session.
Mr. Carroll noted that state officials are further defining enforcement policies as a result
of the District's arguments during the June public hearing.
Discussion followed regarding the District's impact on state policy.
Mr. Burns provided an update regarding litigation Item 2 with Caltrans.
ADJOURNMENT
President Scheafer requested a moment of silence in honor of former Board Member
Jim Warner.
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 6:23 P.M.
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Robert Ooten ' hael Sc ea er
Secretary President