Loading...
Minutes - Board - 2018-01-25 �.4116 CIPAORATV\ COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 25, 2018 Members present Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent Arlene Schafer Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk), Colin Burns (District Counsel), Marc Davis (District Treasurer), Robin Hamers (District Engineer), Gina Terraneo (Management Analyst I) Others present Jim Mosher (resident) Meeting called to order at 5:32 P.M. A. OPENING ITEMS Procedural: 1. Call to Order- President Scheafer President Scheafer called the meeting to order at 5:32 P.M. Procedural: 2. Pledge of Allegiance - President Scheafer President Scheafer led the pledge of allegiance. Procedural: 3. Invocation -Vice President Ferryman Vice President Ferryman led the invocation. Procedural: 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) District Clerk, Noelani Middenway, conducted roll call. All Board Members were present, except for Secretary Schafer, who was absent and excused. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25, 2018 Procedural: 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. None at this time. Procedural: 6. Ceremonial Matters and Presentations None at this time. B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four(4) continuous minutes. Procedural: 1. Public Comments President Scheafer opened public comments. Seeing no one wishing to speak, President Scheafer closed public comments. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 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 12, 2017 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 21, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25, 2018 Action (Consent), Procedural: 4. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2017 Recommendation: That the Board of Directors receive and file the Popular Annual Financial Report for the year ended June 30, 2017. Action (Consent): 5. 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): 6. Adopt Warrant Resolution No. CMSD 2018-7 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2018-7 approving District warrants for the month of December 2017 in the amount of $991,123.61. Action (Consent): 7. Approve Payroll Transparency Disclosure for December 2017 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 8. Receive and File Closed Circuit TV (CCTV) Program Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 9. Accept the occupancy count as presented as 22,537 and direct staff to prepare a warrant to CR&R Environmental Services for $220,758.93 for December 2017 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,537 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2017 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of$220,758.93 to be ratified in the January 2018 warrant list. Action (Consent): 10. Approve the preparation of a warrant to CR Transfer in the amount of $188,653.33 for December 2017 recycling and disposal services in the January 2018 warrant register Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $188,653.33 for December 2017 recycling and disposal services to be ratified in the January 2018 warrant register. Motion: To approve the Consent Calendar as presented. Motion by Art Perry, second by Jim Ferryman. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer not present. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no comments or discussion and the Consent Calendar was approved as presented. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25, 2018 D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS Action, Procedural: 1. Receive and file the Comprehensive Annual Financial Report, Auditors' Report in Accordance with Government Auditing Standards, and the Auditors' Required Communication for the year ended June 30, 2017 Recommendation: The Board of Directors receive and file: 1. The Comprehensive Annual Financial Report for Year Ended June 30, 2017, 2. Auditors' Report in Accordance with Government Auditing Standards, and 3. The Auditors' Required Communication for the Year Ended June 30, 2017. District Treasurer, Marc Davis, presented report details. He provided an overview of the attached documents, including the Comprehensive Annual Financial Report (CAFR), the Auditors' Report in Accordance with Government Auditing Standards, and the Auditors' Required Communication for the year ended on June 30, 2017. Mr. Davis noted that the auditors did not encounter any significant difficulties, they did not have any disagreements with District management, and the auditors acknowledged that District management was fully responsive during the audit. He added that the District's assets exceeded liabilities by about $61 million and that Rogers, Anderson, Malody, & Scott (RAMS) would not be exercising their available contract extensions for auditing services. President Scheafer asked how auditors determine what to audit, since they are unable to audit everything. Mr. Davis explained that auditors examine the risk associated with an organization and then develop an audit plan to focus on specific areas, based upon their risk assessment. He added that auditors must also have some degree of unpredictability when auditing. There were no further questions or discussion and the report was received. Action: 2. Consider Adopting Resolution No. 2018-906 Rejecting the Low Bid from Best Contracting Service and Approve Awarding Contract to Tecta America for HQ Roof Repair in the Amount of$147,400 Recommendation: That the Board of Directors: 1. Approve Adopting Resolution No. 2018-906 Rejecting the Bid from Best Contracting Service; and 2. Approve Contract with Tecta America to perform roof repairs at Headquarters in the amount of$147,400. General Manager, Scott Carroll, presented report details. He noted that the District received 3 proposals for the Headquarters Roof Repair project, and that the lowest bidder did not include all of the required materials in their proposal. Mr. Carroll reported that staffs recommendation is to adopt Resolution No. 2018- COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25,2018 906 to reject the low bid due to unresponsiveness to the proposal requirements and to approve a contract with Tecta America in the amount of $147,400. He added that Tecta America's bid was significantly above the budgeted amount and that staff recommends reallocating the HVAC duct cleaning budget to fund the difference needed for the roof repairs. Mr. Carroll suggested that the HVAC duct cleaning be postponed until fiscal year 2018-2019, using the funds budgeted for re-landscaping the District's headquarters. Motion: To approve Adopting Resolution No. 2018-906 Rejecting the Bid from Best Contracting Service. Motion by Art Perry, second by Jim Ferryman. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer not present. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Assistant Secretary Ooten inquired about the engineer's estimate for the roof repairs. Mr. Carroll verified that qualified roof inspectors provided the initial engineer's estimate of $81,000. He also clarified that the staff report should read "HVAC duct replacement" rather than "HVAC duct cleaning." Motion: To approve Contract with Tecta America to perform roof repairs at Headquarters in the amount of$147,400. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer not present. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 3. Project #325 Corporate Yard Expansion - Approving Contract Administration & Inspection Services with Robin B. Hamers &Associates, Inc. Recommendation: That the Board of Directors receive and file this report. General Manager, Scott Carroll, noted that District Engineer, Robin Hamers, will provide a report about Project #325 during Item F3. He explained that if the Board of Directors approve the contract for Project #325 with GCI Construction, he will approve Mr. Hamers' proposed contract administration and inspection fees in the amount of $18,760. Mr. Carroll noted that Mr. Hamers' proposed fees are below the industry standard, which is about 10% of the construction costs. There were no questions or discussion and the report was received. Action: 4. Receive and File 2015-20 Strategic Plan Quarterly Update -2nd Quarter Recommendation: That the Board of Directors receive and files this report. General Manager, Scott Carroll, presented the Quarterly Update for the 2015- 2020 Strategic Plan. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25,2018 There were no questions or discussion and the report was received. Action: 5. Receive and File General Manager's 2017 Performance Goals and CMSD Accomplishments; Direct President Scheafer to meet with the General Manager to negotiate 2018 performance goals and compensation Recommendation: That the Board of Directors: 1. Receive and file General Manager's 2017 performance goals and CMSD accomplishments; and 2. Direct President Scheafer to meet with General Manager to negotiate 2018 performance goals and compensation. General Manager, Scott Carroll, presented his 2017 Performance Goals and District accomplishments. He noted that 8 out of 10 goals were completed. Mr. Carroll recommended that the Board of Directors direct President Scheafer to meet with him to negotiate his 2018 performance goals and compensation. President Scheafer asked why Mr. Carroll considered goal #9 to be "half complete." Mr. Carroll noted that goal #9 involved the completion of an employee satisfaction survey. He noted that it is considered "half complete" because the survey was conducted, but the complete results were not shared with the Board of Directors due to employee-employer confidentiality. President Scheafer commended Mr. Carroll and District staff on the District's 2017 accomplishments. Director Perry asked if the District's 2017 accomplishments will be printed and distributed to the community. Mr. Carroll noted that the 2017 accomplishments document is available on the District's website and there are a limited amount of printed copies available at the District's headquarters. President Scheafer asked that the Board of Directors provide input for his negotiation with Mr. Carroll within the next few weeks. The Board of Directors directed President Scheafer to meet with Mr. Carroll to negotiate his 2018 performance goals and compensation. There were no further questions or discussion and the report was received. F. ENGINEER'S REPORTS Receive and File: 1. Receive and File Monthly Capital Improvement Projects Status Report Recommendation: That the Board of Directors receive and file the report. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25,2018 District Engineer, Robin Hamers, presented the Capital Improvement Projects Status Report. He noted that President force main has been installed and that the old sewer line was kept in the ground in case the District decides to rehabilitate it and have parallel force mains in the future. Mr. Hamers added that Phase 9 of the Grade 5 Improvements is in progress. Assistant Secretary Ooten inquired about the completion of the closed circuit television (CCTV) of the District's system. Mr. Hamers noted that the CCTV is near completion. Discussion followed regarding a hospital development project on Fairview Road and its potential impact on the District's Wastewater Master Plan. Mr. Hamers noted that new developments are brought to the District's attention during the Development Review Committee meetings. There were no further questions or discussion and the report was received. Action: 2. Wastewater Master Plan Update - Progress Report Recommendation: The Board of Directors receive and file this report. District Engineer, Robin Hamers, explained that the Wastewater Master Plan is meant to assess the wastewater system's capacity. He noted that EEC Environmental will be assisting with the master plan and that the plan will likely be complete in the Fall. President Scheafer shared that there is pending legislation that seeks to reclassify storm water as wastewater. Mr. Hamers noted that there are combined (storm water and wastewater) systems throughout the country, but that these systems often become overwhelmed during rain events. There was no further discussion and the report was received. Action: 3. Approve Awarding Contract for the District Yard Expansion to the lowest responsive and responsible bidder GCI Construction Inc. in the amount of $234,150, approve a contingency of 10% in the amount of $23,415 and approve the transfer of funds from Project#317 in the amount of$160,000. Recommendation: The Board of Directors: 1. Award a contract for the district yard expansion to the lowest responsive and responsible bidder GCI Construction, Inc. in the amount of$234,150; and 2. Approve a contingency of 10% in the amount of$23,415; and 3. Transfer$160,000 from Project#317. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25,2018 District Engineer, Robin Hamers, presented the lowest responsive bid for the District Yard Expansion and recommended that the Board of Directors award the contract to GCI Construction. Motion: To award a contract for the district yard expansion to the lowest responsive and responsible bidder GCI Construction, Inc. in the amount of $234,150, to approve a contingency of 10% in the amount of $23,415, and to transfer$160,000 from Project#317. Motion by Bob Ooten, second by Jim Ferryman. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer not present. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Perry inquired about the timeline for the District Yard Expansion project. Mr. Hamers noted that GCI Construction is ready to begin construction shortly. He noted that the estimated completion date has not yet been determined. Discussion followed regarding the project plans. There were no further questions or discussion. G. TREASURER'S REPORTS Action: 1. Approve Investment Report for the Month of December 2017 Recommendation: That the Board of Directors approve the Investment Report for the month of December 2017. District Treasurer, Marc Davis, presented the December 2017 Investment Report. He noted that the District's investment portfolio had a yield of 1.522% as of the end of December. Mr. Davis added that rates are rising due to the passage of the tax reform. Motion: To approve the Investment Report for the month of December 2017. Motion by Bob Ooten, second by Art Perry. Discussion followed regarding the market reaction to the tax reform. Final Resolution: Motion Carries 4-0-1 with Arlene Schafer not present. Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. H. ATTORNEY'S REPORTS None at this time. I. 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 COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25, 2018 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 Assistant General Manager, Bob Ghirelli, announced his retirement. Information: 2. Santa Ana River Flood Protection Agency (SARFPA)- (Director Perry) Director Perry provided updates regarding the Santa Ana River projects and the Westminster Channel Study. He added that SARFPA has its own webpage at www.ocflood.com/sarp/sarfpa. Information: 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) President Scheafer provided updates regarding the Local Agency Formation Commission's (LAFCO) dues study and ISDOC's plan to make membership dues more equitable. He noted that the California Special Districts Association (CSDA)will be holding free ethics trainings for members who pay their CSDA dues on time. Assistant Secretary Ooten and Director Perry asked District Clerk, Noelani Middenway, to find out when they are due for their next ethics trainings. President Scheafer noted that LAFCO is also conducting a class and compensation study. He added that there were presentations from Midway City Sanitary District, California Consulting, and Best Best & Krieger at the ISDOC Quarterly Meeting. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer was not present to provide a report on CSDA. Information: 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer noted that SDRMA discussed their investments and conducted their election of officers. He noted that he will not be present for the next SDRMA meeting. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25,2018 Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Perry shared that he attended the last 2 city council meetings. He noted that the portable restroom program was not discussed at either meeting. Discussion followed regarding the portable public restroom program. J. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Assistant Secretary Ooten recommended that the District update the title of the "Closed Circuit Television (CCTV) Program" to include the term "sewer lateral." Vice President Ferryman suggested that the District assist Orange County Sanitation District in recruiting staff from local junior colleges. President Scheafer suggested that the District research the possibility of obtaining a cell tower for possible revenue. He also shared that a resident suggested that the District host a shredding event. Vice President Ferryman commented that Orange Coast College Recycling Center may be purchasing a shredder for public use. General Manager, Scott Carroll, shared that District staff has considered hosting a shredding event, but noted that many other businesses offer shredding services. M. ADJOURN TO CLOSED SESSION President Scheafer opened public comments. Jim Mosher, a resident, provided public comments regarding closed session Item M2. He noted that there is no indication of the topic of litigation and pointed out that the same item has appeared in multiple recent Board meetings. President Scheafer adjourned the meeting to closed session at 6:29 P.M. to confer with legal counsel regarding the following items: COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 25,2018 1. Existing Litigation Government Code §54956.9(d)(1) - The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT- CJC -` 2. Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section §54956.9 (One case) N. RECONVENE TO OPEN SESSION President Scheafer reconvened the meeting to open session at 6:49 P.M. He reported that the Board of Directors gave direction to their negotiator for both Items M1 and M2. O. CLOSING ITEMS Procedural: 1. Adjourn President Scheafer adjourned the meeting at 6:50 P.M. i _,.... Arlene Schafer Michael Scheaf Secretary President