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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MARCH 23, 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
None
Meeting called to order at 5:30 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order
President Scheafer called the meeting to order at 5:30 P.M.
Procedural: 2. Pledge of Allegiance
President Scheafer led the pledge of allegiance.
Procedural: 3. Invocation
Vice President Ferryman led the invocation.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 23, 2017
Procedural: 4. Roll Call
District Clerk, Noelani Middenway, conducted the roll call. President Scheafer,
Vice President Ferryman, Secretary Schafer, and Assistant Secretary Ooten
were present. President Scheafer indicated that Director Perry would arrive late
to the meeting.
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 no one from the public
present, 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. Board of Directors Study Session Meeting Minutes of February
14, 2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Board of Directors Special Meeting Minutes of February 22,
2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Board of Directors Regular Meeting Minutes of February 23,
2017
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 5. Directors' Compensation and Reimbursement of Expenses
Recommendation: That the Board of Directors approve the compensation and
reimbursement of expenses as presented.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Action (Consent): 6. Receive and file CCTV (Closed Circuit TV) Pilot Program
Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent): 7. Receive and File Sewer Lateral Assistance Program (SLAP)
Update for February 2017
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 8. Approve Payroll Transparency Disclosure for February 2017
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 9. Adopt Warrant Resolution No. CMSD 2017-09 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2017-09 approving District warrants for the month of February 2017 in the amount of
$1,071,509.82.
Action (Consent): 10. Accept the occupancy count as presented as 22,498 and
direct staff to prepare a warrant to CR&R Environmental Services for $220,376.91
for February 2017 collection.
Recommendation: Accept the occupancy count as presented using 22,498 as the
correct number of active units and direct staff to prepare a warrant to CR&R
Environmental Services for February 2017 collection based on this occupancy report so
long as the contractor fulfills the obligations of the agreement in the amount of
$220,376.91 to be ratified in the March 2017 warrant list.
Action (Consent): 11. Approve the preparation of a warrant to CR Transfer in the
amount of $183,222.61 for February 2017 recycling and disposal services to be
ratified in the March 2017 warrant register.
Recommendation: Approve the preparation of a warrant to CR Transfer in the amount of
$183,222.61 for February 2017 recycling and disposal services to be ratified in the
March 2017 warrant register.
Action (Consent): 12. Approve Investment Report for the Month of February 2017
Recommendation: That the Board of Directors approve the Investment Report for the
month of February 2017.
President Scheafer pulled Item B13 "2016 Annual Health Benefit Broker Fees."
Motion: To approve the Consent Calendar with the exception of Item B13 "2016
Annual Health Benefit Broker Fees."
Motion by Arlene Schafer, second by Jim Ferryman.
Final Resolution: Motion Carries 4-0-1 with Director Perry not present
Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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There were no further questions or discussion.
Action, Receive and File: 13. 2016 Annual Health Benefit Broker Fees
Recommendation: That the Board of Directors receive and file this report.
General Manager, Scott Carroll, noted that at the time the report was submitted,
staff did not have the premiums, fees, and commissions for AFLAC. He reported
that the information is now available and indicated that the total fees and
commissions for 2016 were $1,565.65 and the percentage of premium was
14.84%.
Motion: To receive and file this report.
Motion by Bob Ooten, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-1 with Director Perry not present
Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
C. PUBLIC HEARINGS
None at this time.
D. GENERAL MANAGER'S REPORTS
Action: 1. Rewarding Ideas Program
Recommendation: That the Board of Directors approves $100 to Joel Ortiz and $100 to
Brandon Hickman for suggesting to install an overflow line in the mainline at 20371
Irvine Avenue to prevent sanitary sewer overflows.
General Manager, Scott Carroll, presented the idea submitted by Wastewater
Maintenance Workers, Joel Ortiz and Brandon Hickman. He noted that these
staff members found that a line was holding water and proposed an idea to
prevent a potential sanitary sewer overflow (SSO).
District Engineer, Robin Hamers, explained that staff proposed putting an
interconnection into the line so that water can be relieved into a parallel line if it
backs up. He shared photos depicting the high water line in a nearby manhole.
Motion: To approve $100 to Joel Ortiz and $100 to Brandon Hickman for
suggesting to install an overflow line in the mainline at 20371 Irvine Avenue to
prevent sanitary sewer overflows.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 23,2017
Motion by Arlene Schafer, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-1 with Director Perry not present
Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
Action: 2. Approving the CCTV Program and discontinuing the Sewer Lateral
Assistance Program (SLAP) in Fiscal Year 2017-18 & 2018-19 Budget
Recommendation: That the Board of Directors direct staff approve implementing the
CCTV Program and discontinuing the Sewer Lateral Assistance Program (SLAP) in
Fiscal Year 2017-18 & 2018-19 Budget.
General Manager, Scott Carroll, proposed that the Closed Circuit Television
(CCTV) Program replace the Sewer Lateral Assistance Program (SLAP) as a
proactive means of encouraging preventative private sewer maintenance.
Assistant Secretary Ooten asked if the District would continue paying the
same CCTV cost that was used during the pilot program.
Mr. Carroll indicated that the cost may increase because staff will obtain input
from the Plumbing Heating and Cooling Contractors (PHCC) Association to
determine a fair CCTV cost.
Discussion followed regarding the staff time associated with viewing CCTV
videos.
Vice President Ferryman expressed concern that replacing SLAP with the CCTV
program may give residents the impression that the District is no longer willing to
provide as much financial support toward preventative private sewer
maintenance.
Mr. Carroll noted that the CCTV program would allocate less funds to residents,
but would make more funds available to conduct Capital Improvement Projects
that benefit the public.
President Scheafer noted that more residents can be helped with the CCTV
program than with SLAP.
Discussion followed regarding community awareness of private sewer lateral
maintenance, installation of clean-outs, private sewer sanitary overflow (SSO)
prevention, and the impact of the program on plumber integrity.
President Scheafer opened public comments. Seeing no one from the public
present, he.closed public comments.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Secretary Schafer added that the CCTV program was well-received at the
Liaison Committee Meeting and suggested that the program be publicized in the
District's quarterly newsletter.
President Scheafer requested that staff ensure that local plumbers are aware
and properly informed of the program rules and regulations.
Motion: To approve implementing the CCTV Program and discontinuing the
Sewer Lateral Assistance Program (SLAP) in Fiscal Year 2017-18 & 2018-19
Budget.
Motion by Arlene Schafer, second by Bob Ooten.
Final Resolution: Motion Carries 3-1-1 with Director Perry not present
Aye: Arlene Schafer, Bob Ooten, Mike Scheafer
No: Jim Ferryman
Secretary Schafer suggested that staff obtain a list of local plumbers.
There were no further questions or discussion.
President Scheafer requested that Item D3 "Approve the Board/Community
Room Rental Policy" be discussed when Director Perry arrives.
E. ENGINEER'S REPORTS
O S
Receive and File: 1. Receive and File Capital Improvement Projects Status Report
Recommendation: That the Board of Directors receive and file the report.
District Engineer, Robin Hamers, provided report details. He shared a sample of
the South Coast Plaza force main pipe and described the process of making
improvements to force mains.
Discussion followed regarding the pipe material and thickness.
There were no further questions or discussion and the report was received.
Action: 2. #202 Elden Valve and Piping Replacement -Accept Improvements, File
Notice of Completion, Exonerate Bonds
The Board of Directors approves the following action:
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, exonerate Faithful Performance Bond one year after Notice of
Completion is recorded.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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District Engineer, Robin Hamers, described the replacements done for Project
#202 and noted that the pump station is now odor-free.
Discussion followed regarding the impact of hot weather on sewer odors and the
existence of vents at all District pump stations.
President Scheafer opened public comments. Seeing no one from the public
present, he closed public comments.
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, and 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.
Motion by Bob Ooten, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-1 with Director Perry not present
Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
F. TREASURER'S REPORTS
None at this time.
G. ATTORNEY'S REPORTS
District Counsel, Alan Burns, noted that a decision was reached by the California
Supreme Court regarding the use of private devices by public officials. He
explained that private devices can be subject to review if used to discuss public
business.
Discussion followed regarding the impact of the case, how device information
would be accessed, and what information would be considered public record.
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.
I
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III MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 23,2017
Information: 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman)
Vice President Ferryman shared that the OCSD meeting was brief and the matter
of selling an industrial building in Stanton was placed on the consent calendar.
Director Perry entered the meeting at 6:10 P.M.
Information: 2. Santa Ana River Flood Protection Agency(SARFPA) - (Director Perry)
Vice President Ferryman noted that the state budget is expected to be passed in
May.
Information: 3. Independent Special Districts of Orange County (ISDOC) - (President
Scheafer)
President Scheafer noted that the ISDOC Executive Committee meeting took
place on March 7, 2017. He added that former Senator John Lewis attended the
meeting.
Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer)
President Scheafer noted that the Chairman of the Little Hoover Commission will
be the keynote speaker at CSDA Legislative Days. He also noted that the next
Local Agency Formation Commission (LAFCO) meeting will be postponed to a
later date in April.
Secretary Schafer shared information about Form 700s, the speakers at CSDA
Legislative Days, and the 405 freeway improvement project discussed at the
Chamber of Commerce Breakfast.
Discussion followed regarding the impact of the 405 freeway improvements.
Assistant Secretary Ooten noted that he attended the Water Advisory Committee
of Orange County (WACO) meeting. He added that Orange County Water District
staff spoke and were met with audience concerns about desalination.
Information: 5. Special District Risk Management Authority (SDRMA) - (President
Scheafer)
President Scheafer noted that there was no SDRMA meeting. He added that he
will attend SDRMA Safety/Claims Education Day next week.
Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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President Scheafer noted that all of the Board of Directors except for Vice
President Ferryman attended the recent Liaison Committee Meeting.
Action, Discussion: 3. Approve the Board/Community Room Rental Policy
Recommendation: That the Board of Directors approve the Board/Community Room
Rental Policy.
District Clerk, Noelani Middenway, provided report details. She noted that the
revised Board/Community Room Rental Policy notes that the room would be
available to non-profits and government agencies at no charge during the
District's regular business hours, except for a nominal administrative fee of $25.
Ms. Middenway added that there would be an after-hours fee based on the fully
burdened rate of the staff member that is available to remain on-site during after-
hours rentals.
Discussion followed regarding clarifying the after-hours rental fees.
Vice President Ferryman indicated that the rental fees may be seen as confusing
because there are several possible rates.
Finance Manager, Wendy Davis, noted that staff must be present during room
rentals and that it is difficult to predict which staff members will be available.
President Scheafer suggested that the District take an average of all of the staff
rates and determine a flat rate for the after-hours fee.
District Counsel, Alan Burns, noted that the District cannot give away public
funds, but that the District can use resources to benefit the public as long as one
of the District's purposes is being served or advanced.
Director Perry asked if the District would be able to accept a donation from an
organization to be used toward room rentals.
Mr. Bums replied that the District could accept a donation, but that the donor
would not receive a charitable contribution deduction for tax purposes.
Discussion followed regarding the nominal administrative fee of $25 and the
administration of the room rental.
Motion: To approve the Board/Community Room Rental Policy.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There were no further questions or discussion.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 23, 2017
I. OLD BUSINESS
None at this time.
J. NEW BUSINESS
None at this time.
K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Discussion: 1. Oral Communications and Director Comments
Secretary Schafer suggested honoring staff for winning the recent California
Water Environment Association (CWEA) Santa Ana River Basin Section
(SARBS) awards.
President Scheafer noted that staff was honored at a previous meeting.
Director Perry suggested that staff be honored again for these awards at the end
of the year during the District staff awards luncheon.
L. ADJOURN TO CLOSED SESSION
President Scheafer adjourned the meeting to closed session at 6:47 P.M.
Procedural: 1. Conference with Real Property Negotiators (Gov. Code §54956.8)
Procedural: 2. Conference with Legal Counsel- Pending Litigation (Gov Code
§54956.9(d)(1)
Procedural: 3. Conference with Legal Counsel- Anticipated Initiation of Litigation (Gov
Code 54956.9(d)(4)) (Number of potential cases: 1)
Procedural: 4. Public Employee Performance Evaluation (Gov. Code §54957)
Procedural: 5. Conference with Labor Negotiators- Government Code §54957.6
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MARCH 23, 2017
M. RECONVENE TO OPEN SESSION
President Scheafer reconvened the meeting to open session at 7:36 P.M. He
noted that no reportable action was taken regarding Items L1, L2, and L3. He
added that the Board of Directors discussed the General Manager's evaluation
during Item L4 and that the Board of Directors authorized President Scheafer to
negotiate in regards to Item L5.
N. CLOSING ITEMS
Procedural: 1. Adjourn
President Scheafer adjourned the meeting at 7:36 P.M.
Arlene Schafer Michael Scheafer
Secretary President