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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JANUARY 26, 2017
Members present:
Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Members absent:
None
Staff present:
Scott Carroll (General Manager), Noelani Middenway (District Clerk), Alan Burns
(District Counsel), Robin Hamers (District Engineer), Wendy Davis (Finance Manager),
Marc Davis (District Treasurer), Gina Terraneo (Management Analyst I)
Others present:
Dean Ruffridge (CR&R), Lawrence Jones (CR&R), Luke Money (Daily Pilot)
Meeting called to order at 5:30 PM
A. OPENING ITEMS
Procedural: 1. Call to Order
President Scheafer called the meeting to order.
Procedural: 2. Pledge of Allegiance
President Scheafer led the Pledge of Allegiance.
Procedural: 3. Invocation
Director Perry led the invocation.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Procedural: 4. Roll Call
Noelani Middenway, District Clerk, conducted roll call and all members of the
Board of Directors were present.
Procedural: 5. Ceremonial Matters and Presentations
None at this time.
Procedural: 6. Announcement of Late Communications
None at this time.
Procedural: 7. Public Comments
President Scheafer opened public comments. Seeing noone wishing to speak, he
closed public comments.
B. CONSENT CALENDAR
Action (Consent): 1. Approve Consent Calendar
Recommendation: That the Board of Directors approve the Consent Calendar as
presented.
Action (Consent): 2. Approve the Board of Directors Study Session Meeting
Minutes of December 13, 2016
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Approve the Board of Directors Regular Meeting Minutes of
December 22, 2016
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Approve the Directors' Compensation and Reimbursement of
Expenses
Recommendation: That the Board of Directors approve the compensation and
reimbursement of expenses as presented.
Action (Consent): 5. Approve the preparation of a warrant to CR Transfer in the
amount of $192,727.14 for December 2016 recycling and disposal services to be
ratified in the January 2017 warrant register.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Recommendation: Approve the preparation of a warrant to CR Transfer in the amount of
$192,727.14 for December 2016 recycling and disposal services to be ratified in the
January 2017 warrant register
Action (Consent): 6. Adopt Warrant Resolution No. CMSD 2017-07 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2017-07 approving District warrants for the month of December 2016 in the amount of
$1,407,862.14.
Action (Consent): 7. Receive and File Sewer Lateral Assistance Program (SLAP)
Update
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 8. Approve Payroll Transparency Disclosure for December 2016
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 9. Adopt Resolution No. 2017-893 Ordering that Publication of
Ordinance No. 116 Authorizing Recent CCTV Inspections to be used for Other
Construction Within the Year
Recommendation: That the Board of Directors adopt Resolution No. 2017-893 Ordering
that Publication of Ordinance No. 116 Authorizing Recent CCTV Inspections to be used
for Other Construction Within the Year
Action (Consent): 10. Accept the occupancy count as presented as 22,462 and
direct staff to prepare a warrant to CR&R Environmental Services for $220,024.27
for December 2016 collection.
Recommendation: Accept the occupancy count as presented using 22,462 as the
correct number of active units and direct staff to prepare a warrant to CR&R
Environmental Services for December 2016 collection based on this occupancy report
so long as the contractor fulfills the obligations of the agreement in the amount of
$220,024.27 to be ratified in the January 2017 warrant list.
Action (Consent): 11. Receive and file CCTV (Closed Circuit TV) Pilot Program
Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent), Procedural: 12. Receive and File the Popular Annual Financial
Report (PAFR) for the Year Ended June 30, 2016
Recommendation: That the Board of Directors receive and file the Popular Annual
Financial Report for the year ended June 30, 2016.
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Action (Consent): 13. Approve Out of State Travel to Government Finance Officers
Association (GFOA) Conference - Denver, Colorado
Recommendation: That the Board of Directors approve out of state travel for the
Finance Manager and Senior Accountant to attend the GFOA Conference in Denver,
Colorado.
Action (Consent): 14. Lockable Cart Program for the Westside Neighborhood
Recommendation: That the Board of Directors approve the Lockable Cart Program for
the Westside Neighborhood.
Motion: To approve the Consent Calendar as presented.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Discussion followed regarding new legislation pertaining to consent calendar
voting.
The Board of Directors approved the consent calendar and there were no further
questions or discussion.
C. PUBLIC HEARINGS
None at this time.
D. GENERAL MANAGER'S REPORTS
Discussion: 1. Discuss Preliminary Budget Calendar for the 2017-2019 Biennial
Budget
Recommendation: That the Board of Directors discuss the Preliminary Budget Calendar
for the 2017-2019 Biennial Budget.
Finance Manager, Wendy Davis, provided details regarding the preliminary
budget calendar and noted the timeline for rate change approval. She also noted
that payments have been received for delinquent properties.
Discussion followed regarding possible grant opportunities.
There were no further questions or discussion and the report was received.
Action: 2. CR&R Environmental Services Exclusive Franchise Agreement
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Recommendation: That the Board of Directors Approves Issuing a Notice of Termination
to CR&R Environmental Services.
General Manager, Scott Carroll, provided background information regarding
CR&R's six year evergreen contract and noted that the Board of Directors
approved a ten year contract in 2006. He recommended that the Board of
Directors issue a notice of termination to begin a renegotiating process.
District Counsel, Alan Burns, recommended that the Board of Directors discuss
this item at a Special Meeting in February.
Assistant Secretary Ooten requested that additional data be provided concerning
the diversion rate prior to discussing issuing a Notice of Termination to CR&R.
Motion: To hold a Special Meeting in February to discuss the matter.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
The Board of Directors directed staff to hold a Special Meeting in February to
discuss the matter.
There were no further questions or discussion.
Action: 3. Award Lieu Tran, Administration Assistant, $100 for her Rewarding
Ideas Program submission to save money for purchasing alkaline batteries.
Recommendation: That the Board of Directors approves rewarding Lieu Tran,
Administrative Assistant, $100 for her idea to save money for purchasing alkaline
batteries.
General Manager, Scott Carroll, presented the Rewarding Ideas Program
submission from Administrative Assistant, Lieu Tran, regarding purchasing
rechargeable batteries instead of alkaline batteries.
Motion: To approve rewarding Lieu Tran, Administrative Assistant, $100 for her
idea to save money for purchasing alkaline batteries.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
The Board of Directors awarded Lieu Tran, Administrative Assistant, $100 for her
Rewarding Ideas Program submission.
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There were no further questions or discussion.
Action: 4. Receive and File General Manager's 2016 Performance Goals and CMSD
Accomplishments; Direct President Scheafer to meet with the General Manager to
negotiate his 2017 performance goals.
Recommendation: That the Board of Directors:
1. Receive and file General Manager's 2016 performance goals and CMSD
Accomplishments.
2. Direct President Scheafer to meet with General Manager to negotiate his 2017
performance goals and that the Board provide President Scheafer with the goals by
Friday, February 3, 2017.
General Manager, Scott Carroll, presented his twelve performance goals and their
statuses. He noted that 5 are completed, one is partially completed, and six are
not completed.
Discussion followed regarding the District's emergency preparedness efforts.
Motion: To direct President Scheafer to meet with the General Manager to
negotiate his 2017 performance goals and that the Board of Directors provide
President Scheafer with the goals by Friday, February 3, 2017.
Motion by Arlene Schafer, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
The Board of Directors directed President Scheafer to meet with the General
Manager to negotiate his 2017 performance goals and agreed to provide
President Scheafer with the goals by Friday, February 3, 2017.
There were no further questions or discussion.
Action: 5. Receive and File the Mid-year Budget Review of FY2016-17
Recommendation: That the Board of Directors receive and file this report.
Finance Manager, Wendy Davis, presented the Mid-year Budget Review for FY
2016-2017. She noted that staff anticipates being under budget primarily due to
savings from the Organics Recycling Program, personnel costs, and in-house
sewer cleaning efforts.
Vice President Ferryman asked if there are any major deferred projects that are
scheduled for this year.
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General Manager, Scott Carroll, noted that potential upcoming projects include
roof repairs, installation of solar panels, front door repairs, drought tolerant
landscaping, and a walkway at the District's headquarters.
Discussion followed regarding the sewer cleaning schedule.
There were no further questions or discussion and the report was received.
E. ENGINEER'S REPORTS
Action, Receive and File: 1. Capital Improvement Projects Status Report to Receive
and File.
Recommendation: That the Board of Directors receive and file this report.
District Engineer, Robin Hamers, presented the Capital Improvement Projects
Status Report.
Discussion followed regarding the Grade 5 repairs.
There were no further questions or discussion and the report was received.
Action: 2. #316 Adams Pump Station Electrical Improvements - Approve: Award of
Contract, Establish Contingency, Transfer Funds
Recommendation: That the Board of Directors:
1. Award a contract to the lowest responsive and responsible bidder, GCI Construction,
Inc., in the amount of $143,120.
2. Approve a contingency of 10% in the amount of $14,312.
3. Approve a transfer of$77,200 from Project#317 into this project.
District Engineer, Robin Hamers, recommended that the Board of Directors award
the contract for Project #316 to GCI Construction, Inc., and approve the
contingency and transfer of funds.
Discussion followed regarding Adams Pump Station.
Motion: To award a contract to the lowest responsive and responsible bidder, GCI
Construction, Inc., in the amount of$143,120, to approve a contingency of 10% in
the amount of $14,312, and to approve a transfer of $77,200 from Project
#317 into this project.
Motion by Bob Ooten, second by Arlene Schafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
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Discussion followed regarding the budget for Project#317.
The Board of Directors awarded a contract to the lowest responsive and
responsible bidder, GCI Construction, Inc., in the amount of$143,120, approved a
contingency of 10% in the amount of$14,312, and approved a transfer of$77,200
from Project#317 into this project.
There were no further questions or discussion.
Action: 3. #202 Elden Pump Station Valves and Piping Replacement - Request for
Additional Funding to Repair Deficiencies
Recommendation: That the Board of Directors approve Change Order #2 for the repair
as described above and as shown in the contractor's proposal not to exceed $59,326.
District Engineer, Robin Hamers, explained the need for additional funds to repair
deficiencies associated with Project#202.
Motion: To approve Change Order #2 for the repair as described above and as
shown in the contractor's proposal not to exceed $59,326.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
The Board of Directors approved Change Order #2 for the repair as described
above and as shown in the contractor's proposal not to exceed $59,326.
There were no further questions or discussion.
F. TREASURER'S REPORTS
Action: 1. Approve Investment Report for the Month of December 2016
Recommendation: That the Board of Directors approve Investment Report for the month
of December 2016.
District Treasurer, Marc Davis, presented the Quarterly Investment Report and
discussed recent investment activity.
The Board of Directors did not vote on this action.
There were no further questions or discussion.
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G. ATTORNEY'S REPORTS
Action: 1. Adopt Ordinance No. 117 Clarifying When Directors Take Office and
Changing the District's Headquarters Address
Recommendation: Adopt Ordinance No. 117 Clarifying When Directors Take Office and
Changing the District's Headquarters Address.
District Counsel, Alan Burns, proposed the adoption of Ordinance No. 117.
Motion: To adopt Ordinance No. 117 Clarifying When Directors Take Office and
Changing the District's Headquarters Address.
Motion by Art Perry, second by Jim Ferryman.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
The Board of Directors adopted Ordinance No. 117.
There were no further questions or discussion.
H. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is
required to be given by a Director for any meeting for which expense reimbursement of
any kind is provided. Note: For meetings for which the per diem compensation is
sought, the Operations Code provides that such compensation is authorized for each
day's service rendered as a Director at the request of the Board (not to exceed six days
in one month), and certain meetings are specified as being eligible as set forth in District
Operations Code § 3.01.030. For meetings not so listed, the Board must approve the
service for it to be eligible for the per day compensation.
Information: 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman)
Vice President Ferryman noted that David Shawver was elected as Vice President
of OCSD's Board of Directors. He noted that OCSD has paid off its unfunded
actuarial accrual liabilities.
Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry noted that Vice President Ferryman, Assistant Secretary Ooten,
and himself attended the SARFPA meeting prior to today's Board Meeting. He
also noted that there was a presentation regarding OC Public Works' rain gage
data.
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Information: 3. Independent Special Districts of Orange County (ISDOC) - (President
Scheafer)
President Scheafer noted that he attended the Executive Committee Meeting and
shared that there will be a Special Meeting on Monday, January 30th, to discuss
executive roles. He shared that Michelle Steel spoke at the Quarterly
ISDOC Meeting.
Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer shared the CSDA's new president is Vincent Ferrante. She
also shared information regarding upcoming CSDA conferences.
Information: 5. Special District Risk Management Authority (SDRMA) - (President
Scheafer)
President Scheafer noted that SDRMA's change of officers took place at the
January Board Meeting.
Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
Assistant Secretary Ooten shared that he attended the Water Advisory Committee
of Orange County (WACO) meeting and that presentations were given by
Southern California Edison and Advanced Microgrid Solutions.
I. OLD BUSINESS
None at this time.
J. NEW BUSINESS
None at this time.
K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Scheafer noted that a resident was unable to access the Board of
Director biographies on the District's website. He also asked if Sally Geislar would
return for an additional presentation regarding her Organics Behavioral Study.
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Assistant Secretary Ooten suggested that the District create an implementation
plan based on the Organics Behavioral Study.
Secretary Schafer asked if the Board of Directors would be receiving new
business cards.
Assistant Secretary Ooten requested a future presentation with information about
asset management and discussion of the installation of solar panels. He also
requested an update regarding the diversion rate and shared that OCSD will hold
a new board member orientation on February 15 and March 15.
L. CLOSING ITEMS
Procedural: 1. Adjourn
President Scheafer adjourned the meeting at 7:06 P.M.
Arlene Schafer M'' ael Scheafe
Secretary President