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Minutes - Board - 2017-12-21 4"SAN1744 14, yl RPoRATV COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING DECEMBER 21, 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), Wendy Davis (Finance Manager), Marc Davis (District Treasurer), Robin Hamers (District Engineer), Gina Terraneo (Management Analyst I) Others present Jim Mosher (resident) 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. Procedural: 4. Roll Call District Clerk, Noelani Middenway, conducted roll call and all Board Members were present. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 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 wishing to speak, President Scheafer closed public comments. B. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. President Scheafer pulled Item B12 for discussion and public comment. Action (Consent): 2. Approve the Board of Directors Study Session Meeting Minutes of November 14, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. Approve the Board of Directors Special Meeting Minutes of November 21, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve the Board of Directors Special Meeting Minutes of November 30, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 5. Approve the Board of Directors Regular Meeting Minutes of November 30, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 6. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 Action (Consent): 7. Approve Payroll Transparency Disclosure for November 2017 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 8. Receive and file the Closed Circuit TV (CCTV) Program Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 9. Adopt Warrant Resolution No. CMSD 2018-06 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2018-06 approving District warrants for the month of November 2017 in the amount of $1,238,532.74. Action (Consent): 10. Approve Out of State Travel to Government Finance Officers Association (GFOA) Conference -St. Louis, Missouri Recommendation: That the Board of Directors approve out of state travel for the Finance Manager and Senior Accountant to attend the GFOA Conference in St. Louis, Missouri. Action (Consent): 11. Accept the occupancy count as presented as 22,518 and direct staff to prepare a warrant to CR&R Environmental Services for $220,572.82 for November 2017 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,518 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for November 2017 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of$220,572.82 to be ratified in the December 2017 warrant list. Action (Consent): 13. Approve Investment Report for the Month of November 2017 Recommendation: That the Board of Directors approve the Investment Report for the month of November 2017. Action (Consent): 14. Approve the preparation of a warrant to CR Transfer in the amount of $208,551.85 for November 2017 recycling and disposal services in the December 2017 warrant register Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $208,551.85 for November 2017 recycling and disposal services to be ratified in the December 2017 warrant register. Motion: To approve the Consent Calendar as presented, excluding Item B12. 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 II COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2017 Action (Consent): 12. Consider adopting Resolution No. 2017-905 - Declaring that Governing Body Members be Deemed to be Employees for the Purpose of Providing Workers' Compensation Recommendation: That the Board of Directors approve Resolution No. 2017-905 Declaring that Governing Body Members be Deemed to be Employees for the Purpose of Providing Workers' Compensation. President Scheafer opened public comments. Jim Mosher, a resident, provided comments regarding the proposed Resolution No. 2017-905. He indicated concern about the Board of Directors benefiting from their decision to receive workers' compensation coverage. Additionally, he noted a discrepancy in the staff report regarding the need for legal review and inquired about the decision's potential financial impact on ratepayers. President Scheafer commented that the Board of Directors would not receive a benefit from the decision, but rather they would be covered if injured while on District business. He noted that the Board of Directors are employees of the District and that this item was proposed in order to comply with state law. District Counsel, Alan Burns, added that resolutions like this one are generally passed in order to reduce the exposure to potential litigation. He noted that it can be seen as a benefit to the District and to ratepayers, as it would control the District's exposure to costly litigation. Discussion followed regarding the approximate cost and state requirements associated with the decision. General Manager, Scott Carroll, noted that it is a requirement of the Special District Risk Management Authority (SDRMA) that the District provide workers' compensation for its Board of Directors. Motion: To approve Item B12. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. C. PUBLIC HEARINGS None at this time. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 D. GENERAL MANAGER'S REPORTS Action: 1. Consider Approving the Costa Mesa Chamber of Commerce Contribution Application for Costa Mesa Public Safety Recognition Celebration Event Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Costa Mesa Public Safety Recognition Celebration Event; and 2. Describe how the expenditure will advance CMSD's purpose. General Manager, Scott Carroll, presented the contribution application submitted by the Costa Mesa Chamber of Commerce requesting $1,000 for the Public Safety Recognition Celebration Event. He noted that the original application was rejected, because the application did not meet the contribution criteria. Mr. Carroll reiterated the need for applicants to establish the purpose that the District would serve as a contributor to the event and describe how the contribution would advance the District's purpose. Additionally, he indicated concern that the re-submitted application does not fully describe how the contribution would benefit the District. President Scheafer verified that the District did not provide a monetary contribution for this event last year, but rather provided reusable grocery bags for the event attendees. Secretary Schafer commented that the Chamber of Commerce provides visibility for the District in the community. She indicated support for providing a monetary contribution. Director Perry indicated that he does not support providing a contribution for this event. Assistant Secretary Ooten commented that if the District provides the contribution, the Chamber of Commerce should provide visibility through signage and acknowledgement during the event. Secretary Schafer proposed that the District contribute $500. District Counsel, Alan Burns, reiterated that the Board of Directors must establish a purpose for the contribution and describe how the expenditure will advance the District's purpose. President Scheafer noted that the Chamber of Commerce could provide signage and promote recycling by making recycling trash carts available to attendees. He commented that he appreciates the District's partnership with the Chamber of COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 Commerce, but indicated concern about whether the contribution would benefit the District. Director Perry commented that the application does not justify the benefits of making a monetary contribution. Original Motion: To approve a contribution of $500 to the Costa Mesa Chamber of Commerce for the Public Safety Recognition Celebration Event based on the findings that the District has a continued partnership with the Chamber of Commerce and is able to utilize its services. Motion by Arlene Schafer, second by Bob Ooten. Amended Motion: To approve a contribution of$500 to the Costa Mesa Chamber of Commerce for the Public Safety Recognition Celebration Event, which will include District visibility through event signage, event website, acknowledgement during the event, and promotion of recycling. Final Resolution: Motion Carries 3-2 Aye: Arlene Schafer, Bob Ooten, Jim Ferryman Noes: Art Perry, Mike Scheafer There were no further questions or discussion. Action: 2. Consider Approving the Costa Mesa Sanitary District 2018 Meeting and Office Closure Calendar Recommendation: That the Board of Directors approve the Costa Mesa Sanitary District 2018 Meeting and Office Closure Calendar as presented. District Clerk, Noelani Middenway, presented the District's 2018 Meeting and Office Closure Calendar and noted updates to the meeting schedule. President Scheafer opened public comments. Jim Mosher, a resident, commented that there are a few meetings on the calendar that the public may not be familiar with, such as the General Manager's Monthly Update and Agenda Review. He noted that the General Manager's Monthly Update meetings do not typically appear on Board Member reimbursement forms. Additionally, he asked if the entire District Board of Directors attends the Liaison Committee Meetings and inquired about the agenda posting requirements for these meetings. President Scheafer noted that the General Manager's Monthly Update has been held for several years now. General Manager, Scott Carroll, noted that it is within the Board of Directors' discretion to claim the General Manager's Monthly Update meetings for II COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 reimbursement, since they are only eligible to be reimbursed for up to 6 meetings per month. Director Perry confirmed that the District posts agendas for Liaison Committee Meetings. President Scheafer noted that the District is the only agency whose entire governing body attends the Liaison Committee Meetings. President Scheafer closed public comments. Motion: To approve the Costa Mesa Sanitary District 2018 Meeting and Office Closure Calendar as presented. Motion by Arlene Schafer, second by Jim Ferryman. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Ms. Middenway noted that June 29, 2018 is an office closure day that was not included in the calendar. She asked that the Board of Directors note this change on their calendars. President Scheafer asked that the minutes reflect this change. There were no further questions or discussion. E. ENGINEER'S REPORTS 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, presented the Capital Improvement Projects (CIP) Status Report. He provided an update regarding the bid reading for the Yard Expansion Project and noted that all of the bids came in significantly higher than the engineer's estimate of $102,000. Mr. Hamers noted that the low bid was $234,000. Discussion followed regarding the report and whether or not the discussion of the Yard Expansion Project was properly agendized. Director Perry noted that the Yard Expansion Project is included in the CIP report. District Counsel, Alan Burns, noted that the discussion can continue as long as no action is taken on the item. President Scheafer asked that Mr. Hamers continue his report. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 Mr. Hamers commented that the reason for the high bids may be that the construction economy is currently robust. He noted that Mesa Water District offered to waive the capacity charges if the District chooses to install a hydrant at the District Yard. Lastly, he indicated that he does not believe the cost for the project will decrease in the next few years and noted that staff could find the in fund g toproceedif the Board of Directors wished to do so. President Scheafer asked if staff could bring an item about this project to the Board of Directors in January. General Manager, Scott Carroll, noted that this is an informational item. He added that he will discuss the project with staff and bring an item to the Board of Directors in January. Director Perry asked for an update regarding the inspections of manholes for the Manhole Surface Repair Program. Mr. Hamers provided an update regarding the Manhole Surface Repair Program and the traffic control measures necessary to complete the project. Discussion followed regarding the Manhole Surface Repair Program and the Grade 5 repairs. There were no further questions or discussion and the report was received. F. TREASURER'S REPORTS None at this time. G. ATTORNEY'S REPORTS None at this time. 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) COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 Vice President Ferryman noted that there was an OCSD meeting last night and provided updates regarding properties that OCSD is acquiring. He added that he has copies of OCSD's Annual Report and Annual Financial Report, in case anyone wished to review it. Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry noted that there was no SARFPA meeting to report on. Information: 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) President Scheafer and Secretary Schafer noted that they did not attend the last ISDOC meeting. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer noted that CSDA is did not meet in December and that the next Legislative Committee and Board Meeting will take place in January. Information: 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer noted that SDRMA did not have a Board Meeting, but that a conference call occurred regarding the acquisition of a parking lot near SDRMA's building in Sacramento. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Ferryman, Secretary Schafer, Assistant Secretary Ooten, and Director Perry noted that they attended the Water Advisory Committee of Orange County (WACO) meeting. Assistant Secretary Ooten shared that Jennifer West of the WateReuse Association teleconferenced into the meeting and discussed direct potable water reuse. He commented regarding concerning legislation that would restrict parkway watering. Director Perry noted that Santa Margarita Water District is building a new reservoir. I. OLD BUSINESS None at this time. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21,2017 J. NEW BUSINESS None at this time. K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS President Scheafer noted that street sweeping is canceled next week in Costa Mesa and asked that staff notify CR&R. Additionally, he noted that he attended the District staff Holiday Luncheon and that Management Analyst I, Gina Terraneo, was named the Employee of the Year for 2017. Secretary Schafer inquired about a Code Enforcement issue on Duke Street in Costa Mesa. L. ADJOURN TO CLOSED SESSION President Scheafer adjourned the meeting to closed session at 6:20 P.M. to confer with legal counsel regarding the following items: 1. Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC 2. Conference with Legal Counsel - Anticipated Litigation -- Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section §54956.9 (One case) M. RECONVENE TO OPEN SESSION President Scheafer reconvened the meeting to open session at 7:05 P.M. He noted that there was no reportable action taken on either of the closed session items. N. CLOSING ITEMS Procedural: 1. Adjourn President Scheafer adjourned the meeting at 7:05 P.M. StQ0i I. Arlene Schafer Mich.1I Scheaf:�' Secretary President