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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
FEBRUARY 22, 2018
Members present
Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
Members absent
Jim Ferryman
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk), Alan Burns
(District Counsel), Steve Hodges (Finance Manager), Robin Hamers (District Engineer),
Gina Terraneo (Management Analyst II)
Others present
None
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
Director Perry led the Pledge of Allegiance.
Procedural: 3. Invocation
President Scheafer 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 Director Ferryman.
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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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 members of the public
present and 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 January 9, 2018
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Approve the Board of Directors Special Meeting Minutes of
January 9, 2018
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
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Action (Consent): 4. Approve the Board of Directors Regular Meeting Minutes of
January 25, 2018
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
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 2018-8 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2018-8 approving District warrants for the month of January 2018 in the amount of
$823,629.41.
Action (Consent): 7.Approve Payroll Transparency Disclosure for January 2018
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 22,539 and
direct staff to prepare a warrant to CR&R Environmental Services for $220,778.50
for January 2018 collection
Recommendation: That the Board of Directors accept the occupancy count as
presented using 22,539 as the correct number of active units and direct staff to prepare
a warrant to CR&R Environmental Services for January 2018 collection based on this
occupancy report so long as the contractor fulfills the obligations of the agreement in the
amount of$220,778.50 to be ratified in the February 2018 warrant list.
Action (Consent): 10. Approve the preparation of a warrant to CR Transfer in the
amount of $203,274.10 for January 2018 recycling and disposal services in the
February 2018 warrant register
Recommendation: That the Board of Directors approves the preparation of a warrant to
CR Transfer in the amount of $203,274.10 for January 2018 recycling and disposal
services to be ratified in the February 2018 warrant register.
Action (Consent): 11. Approve Investment Report for the Month of January 2018
Recommendation: That the Board of Directors approve Investment Report for the month
of January 2018.
Action (Consent): 12. Approve a New Agreement with CR&R, Incorporated for
Door-to-Door Household Hazardous Waste Collection Program for Senior and
Disabled Residents that Includes Retroactively Paying for Services Already
Rendered for Collecting Fluorescent Light Tubes and Household Batteries at
Orange Coast College and appropriate $33,000 from the Solid Waste Fund to
cover past services rendered from FY2015 to FY2017.
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Recommendation: That the Board of Directors approve the new agreement with CR&R
Environmental Services to continue with collection of Household Hazardous Waste
services through FY2018 as well as appropriate $33,000 from the Solid Waste Fund to
pay for the services already rendered from FY2015 to FY2017 at the OCC Recycling
Center.
Motion: To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-1 with Jim Ferryman not present.
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
There were no comments or discussion and the Consent Calendar was approved
as presented.
D. PUBLIC HEARINGS
None at this time.
E. GENERAL MANAGER'S REPORTS
Action: 1. Receive and File the Mid-year Budget Review of FY2017-18
Recommendation: That the Board of Directors receive and file this report.
Finance Manager, Steve Hodges, presented report details. He noted that the
District is projected to be negative in the solid waste fund and thus requested an
appropriation of$33,000 under the Consent Calendar Item C12.
Director Perry asked if the federal tax reform had an impact on District
employees.
Mr. Hodges responded that employees should have experienced a slight
increase in their most recent paycheck as a result of the tax reform.
There were no further questions or discussion and the report was received.
Action: 2. Consider Approving General Manager's 2018 Performance Goals
Recommendation: That the Board of Directors considers approving the General
Manager's 2018 Performance Goals.
General Manager, Scott Carroll, presented report details. He shared that he and
President Scheafer met to discuss the performance goals and they did not make
any changes to the goals. Mr. Carroll welcomed any suggestions or
recommendations from the Board of Directors at this time.
President Scheafer noted that Goal #4 was updated.
Mr. Carroll explained that the District experienced a sanitary sewer overflow
(SSO) in January and updated Goal #4 to read "No more than one SSO in 2018."
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President Scheafer expanded on Goal #10 and noted that the District will explore
the possibility of implementing a low income assistance program for District
customers.
Discussion followed regarding possible strategies for providing low income
assistance, including conducting a new rate study and consulting findings from
previous District rate studies.
Assistant Secretary Ooten suggested that the District establish a timeline for
Goal #5 to determine whether or not the goal is achievable.
President Scheafer suggested that the District determine if the goal is
achievable, and if it is not, to establish an alternative plan by the end of
September of 2018.
Motion: To approve the General Manager's 2018 Performance Goals.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-1 with Jim Ferryman not present.
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
Discussion followed regarding the timeline for Mr. Carroll's upcoming
Performance Review.
There were no further comments or discussion.
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.
District Engineer, Robin Hamers, presented the Capital Improvement Projects
(CIP) Status Report. He noted that the District has completed Phase 9 of the
Grade 5 project and the President Force Main project. Additionally, Mr.
Hamers provided an update regarding the Yard Expansion project.
Discussion followed regarding the progress of the Yard Expansion project and
the location of the new rolling gate.
There were no further questions or comments and the report was received.
Action, Receive and File: 2. Receive and File District Engineer's Conflicts of
Interest for 410 E. 17th Street, 1714 Tustin Avenue, and 925 W. 18th Street in
Costa Mesa
Recommendation: That the Board of Directors receive and file the report.
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District Engineer, Robin Hamers, presented two declarations of conflict of interest
for 410 E. 17th Street, 1714 Tustin Avenue and 925 W. 18th Street in Costa
Mesa.
There were no questions or discussion and the report was received.
Action: 3. #317 President Pump Station; Acceptance of Improvements, File Notice
of Completion, Exonerate Bonds
Recommendation: 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 and exonerate Faithful Performance Bond one year after Notice of
Completion is recorded.
District Engineer, Robin Hamers, noted that project #317 President Pump Station is
complete. He shared that this is the third project in which the District has utilized
horizontal directional drilling (HDD).
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 Art Perry.
Final Resolution: Motion Carries 4-0-1 with Jim Ferryman not present.
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
There were no questions or comments.
G. TREASURER'S REPORTS
None at this time.
H. ATTORNEY'S REPORTS
District Counsel, Alan Burns, provided a brief reminder to the Board of Directors
to complete their required sexual harassment training.
Discussion followed regarding upcoming offerings for sexual harassment training.
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
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
•
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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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)
Assistant Secretary Ooten noted that the next OCSD meeting will take place next
week.
Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry noted that there was no SARFPA meeting this month.
Information: 3. Independent Special Districts of Orange County (ISDOC) - (President
Scheafer)
President Scheafer noted that the ISDOC membership dues were reduced to
$50. He commented that he is the only ISDOC Executive Board member that is
not a member of a water district. Additionally, he noted that there may be grants
available to the District through the Orange County Council of Governments
(OCCOG).
Director Perry shared that he attended the last two Costa Mesa City Council
meetings and noted that the Council heard the item regarding the District's
proposed mobile public restroom program this week. He commented that there
was lively discussion on the item and that he and Mr. Carroll noted the concerns
of the Council and community members. Lastly, he noted that the Council
directed City staff to work with District staff to develop a plan for the program with
a 3-2 vote.
Discussion followed regarding the proposed locations of the mobile restrooms
and the issue of homelessness in Costa Mesa.
President Scheafer noted that he submitted an op-ed to the Daily Pilot to address
the mobile public restroom program.
Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer)
No CSDA report was provided.
Information: 5. Special District Risk Management Authority (SDRMA) - (President
Scheafer)
President Scheafer noted that he was unable to attend the last SDRMA meeting.
Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
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Assistant Secretary Ooten shared that attended Orange County Water District's
Groundwater Replenishment System (GWRS) 100th Anniversary ceremony.
President Scheafer shared that he will be attending a workshop regarding
Prop 218.
Secretary Schafer shared that ISDOC will be holding a quarterly luncheon on
March 29th. She also shared that she attended a Chamber of Commerce
luncheon on February 15th at the Orange County Fairgrounds.
Assistant Secretary Ooten noted that there is a California Water Environment
Association (CWEA) Santa Ana River Basin Section (SARBS) dinner on March
3rd.
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
Secretary Schafer shared that the Chamber of Commerce provided signage for
local businesses to address issues of homelessness.
President Scheafer requested that District staff obtain the recording of the Costa
Mesa City Council meeting discussion regarding the mobile public restroom
program.
M. ADJOURN TO CLOSED SESSION
President Scheafer adjourned the meeting to closed session at 6:14 P.M. to
confer with Legal Counsel regarding existing litigation for Government Code
§54956.9(d)(1) — 1. The Costa Mesa Sanitary District v. Mesa Water District;
OCSC No. 30-2017-00923819-CU-PT-CJC.
N. RECONVENE TO OPEN SESSION
President Scheafer reconvened the meeting to open session at 6:30 P.M. and
noted that there was no reportable action taken regarding existing
litigation for Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary
District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 22, 2018
O. CLOSING ITEMS
Procedural: 1. Adjourn
President Scheafer adjourned the meeting at 6:30 P.M.
f&ArANI-L—
Arlene Schafer Miij el Scheafer
Secretary Pr- ident