Minutes - Board - 2018-05-24 iti
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MAY 24,2018
Members present
Arlene Schafer, Art Perry, Jim Ferryman, Mike Scheafer
Members absent
Bob Ooten
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk), Alan Burns
(District Counsel), Steve Hodges (Finance Manager), Marc Davis (District Treasurer),
Robin Hamers (District Engineer), Gina Terraneo (Management Analyst II)
Others present
Barry Friedland (resident), Jim Mosher(resident), Luke Money (Daily Pilot), Art Goddard
(resident), Mary Ellen Goddard (resident), George Berg (resident), Rachel Levin
(resident), Shayne Smith (resident/Citizens Advisory Committee Member), Jeff Reese
(C.J. Segerstrom & Sons), Shirley Frobes (resident), Sara Mooney (resident), Jana Oak
(resident/Citizens Advisory Committee Member)
Meeting called to order at 5:40 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order- President Scheafer
President Scheafer called the meeting to order at 5:40 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.)
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 24,2018
District Clerk, Noelani Middenway, conducted roll call. All Board Members were
present except for Assistant Secretary Ooten.
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.
General Manager, Scott Carroll noted that late communications were submitted
by Jim Mosher, a resident. He explained that copies of the communications were
provided to the Board of Directors and to the public, and Mr. Mosher provided
public comment on the matter prior to the closed session held during the Special
Meeting.
Presentation, Procedural: 6. Ceremonial Matters and Presentations -- Presentation of
Certificates of Completion to Citizen Environmental Protection Academy Participants
President Scheafer invited members of the public who participated in the
District's Citizens Environmental Protection Academy to be recognized with
Certificates of Completion. He noted that the present participants included the
following residents: Rachel Levin, Jana Oak, George Berg, Arthur Goddard, Mary
Ellen Goddard, Shirley Frobes, and Sara Mooney.
Director Perry invited the participants to speak about their experience in the
Academy.
George Berg thanked the District for hosting the series and noted that he would
like to attend tours of CR&R's Materials Recovery Facility and Anaerobic
Digestion Facility during the next series.
Sara Mooney commented that many community members indicated interest in
attending the next series and suggested that the District provide tours for children
also.
There were no further comments or discussion.
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
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 24, 2018
President Scheafer opened public comments. Seeing no one wishing to speak,
he 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 Special Meeting Minutes of
April 4, 2018
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Approve the Board of Directors Study Session Minutes of
April 10, 2018
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Approve the Board of Directors Regular Meeting Minutes of
April 26, 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 2018-11 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2018-11 approving District warrants for the month of April 2018 in the amount of
$810,289.70.
Action (Consent): 7. Approve Payroll Transparency Disclosure for April 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.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Action (Consent): 9. Accept the occupancy count as presented as 22,578 and direct
staff to prepare a warrant to CR&R Environmental Services for $221,160.54 for
April 2018 collection
Recommendation: That the Board of Directors accept the occupancy count as
presented using 22,578 as the correct number of active units and direct staff to prepare
a warrant to CR&R Environmental Services for April 2018 collection based on this
occupancy report so long as the contractor fulfills the obligations of the agreement in the
amount of$221,160.54 to be ratified in the May 2018 warrant list.
Action (Consent): 10. Approve the preparation of a warrant to CR Transfer in the
amount of $189,589.56 for April 2018 recycling and disposal services in the May
2018 warrant register
Recommendation: That the Board of Directors approves the preparation of a warrant to
CR Transfer in the amount of $189,589.56 for April 2018 recycling and disposal
services to be ratified in the May 2018 warrant register.
Action: 11. Consider Approving Fourth Amendment to Agreement with Roger
Faubel Public Affairs, Inc.
Recommendation: That the Board of Directors considers approving a fourth amendment
to agreement with Roger Faubel Public Affairs, Inc. and direct the General Manager to
sign the agreement.
Motion: To approve the Consent Calendar as presented.
Motion by Jim Ferryman, second by Art Perry.
Final Resolution: Motion Carries 4-0-1 with Assistant Secretary Ooten absent
Aye: Arlene Schafer, Art Perry, Jim Ferryman, Mike Scheafer
There were no comments or discussion.
D. PUBLIC HEARINGS
None at this time.
F. ENGINEER'S REPORTS
General Manager, Scott Carroll, requested that Item F2 be moved up on the
agenda.
President Scheafer invited District Engineer, Robin Hamers, to proceed with Item
F2.
Action: 2. 1585 MacArthur Blvd; Request for Additional Quitclaim of CMSD Sewer
and Easement; Consideration of Approval
Recommendation: The Board of Directors:
1. Approve, execute, and record the newly proposed quitclaim deed and indemnification
agreement.
2. Direct the General Manager to seek reimbursement of attorney and engineering costs
from the property owner for both the first and second set of documents.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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District Engineer, Robin Hamers, provided report details regarding the easement
at 1585 MacArthur Boulevard. He noted that he, District Counsel Alan Burns, and
Jeff Reese of C.J. Segerstrom & Sons have reviewed and agreed upon a newly
proposed quitclaim deed and indemnification agreement. Additionally, Mr.
Hamers noted that staff is seeking approval, execution, and recording of the
documents, as well as direction for the General Manager to seek reimbursement
of attorney and engineering costs from C.J. Segerstrom & Sons for both sets of
documents created for this easement. Lastly, he explained that C.J.
Segerstrom & Sons has agreed to reimburse the District for its legal and
engineering costs for the work on this project upon being asked by the District.
Director Perry asked how much the District will be reimbursed.
Finance Manager, Steve Hodges, noted the total is currently at about $5,900, but
staff has one additional invoice to add to this amount.
Motion: To approve, execute, arid record the newly proposed quitclaim deed and
indemnification agreement; and to direct the General Manager to seek
reimbursement of attorney and engineering costs from the property owner for
both the first and second set of documents.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-1 with Assistant Secretary Ooten absent
Aye: Arlene Schafer, Art Perry, Jim Ferryman, Mike Scheafer
There was no further discussion or comments.
Receive and File: 1. Receive and File Monthly Capital Improvement Projects Status
Report
Recommendation: That the Board of Directors receive and file the report.
President Scheafer invited Mr. Hamers to proceed with Item F1.
Mr. Hamers provided report details and noted that the District Yard Expansion
project is near completion.
President Scheafer commented that the District Yard expansion looks good.
Director Perry asked if the landscaping on the District Yard property will be
improved.
General Manager, Scott Carroll, noted that the landscaping will be improved in
the future.
There were no further questions or discussion and the report was received.
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
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 24,2018
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 noted that he overlooked a public comment request from Jim
Mosher, a resident, to provide comments on the Item C11. He invited Mr. Mosher
to speak at this time.
Mr. Mosher provided comments regarding the District's placement of Item C11 on
the Consent Calendar. He noted that the staff report states that the
recommendation was made by an Ad Hoc Committee, but it does not explain
which Ad Hoc Committee made the recommendation, the purpose of that Ad Hoc
Committee, and the services that would be included in the recommended
agreement extension. Additionally, Mr. Mosher suggested that the Ad Hoc
Committee be given a name that explains its purpose and noted that Ad Hoc
Committees are usually formed with an intended end date rather than being on-
going.
President Scheafer asked if the item needed to be reconsidered in light of Mr.
Mosher's comments.
District Counsel, Alan Burns, noted that the Board of Directors can reconsider the
item if they wish to do so.
President Scheafer asked if any Board Members wished to reconsider the
approval of Item C11 and none indicated a wish to reconsider.
President Scheafer closed public comments.
E. GENERAL MANAGER'S REPORTS
Action: 1. Award Steve Cano, Wastewater Maintenance Superintendent, $100 for
his Rewarding Ideas Program submission to improving pump station
maintenance efficiencies
Recommendation: That the Board of Directors approves rewarding Steve Cano
Wastewater Maintenance Superintendent, $100 for his idea to improving pump station
maintenance efficiencies.
General Manager, Scott Carroll, provided report details. He noted that
Wastewater Maintenance Superintendent, Steve Cano, submitted an idea to
incorporate data from the pump station maintenance program (which is currently
housed in an Excel spreadsheet) into the District's Computerized Maintenance
Management System (CMMS), so that District staff can access the data while out
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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in the field. Mr. Carroll noted that District staff is recommending rewarding Mr.
Cano with $100 through the Rewarding Ideas Program.
Director Perry asked if Mr. Cano's idea has been implemented.
Mr. Carroll confirmed that the idea has been implemented by EEC Environmental
at no extra cost to the District.
Motion: To approve rewarding Steve Cano, Wastewater Maintenance
Superintendent, $100 for his idea to improving pump station maintenance
efficiencies.
Motion by Art Perry, second by Jim Ferryman.
Final Resolution: Motion Carries 4-0-1 with Assistant Secretary Ooten absent
Aye: Arlene Schafer, Art Perry, Jim Ferryman, Mike Scheafer
There was no further discussion.
Action: 2. Business Community Survey Regarding Homelessness in Costa Mesa
Recommendation: That the Board of Directors receive and files this report and provide
direction to staff.
General Manager, Scott Carroll, provided report details. He noted that District
staff hired Gavello and Associates to conduct a survey of Costa Mesa
businesses to gauge input regarding the proposed mobile restroom program. He
noted that 48% of the surveys were returned and provided an overview of the
response. Overall, Mr. Carroll noted that the survey respondents indicated
that the homeless population is affecting their business, but the survey results
indicate that they do not believe that having a supervised public restroom would
alleviate the homeless population's effects on their business and that they
believe the portable public restroom program is a "horrible idea." As a result of
this feedback, Mr. Carroll recommended that the District does not move forward
with the proposed program. However, he noted that the survey results may be
useful for the Network for Homeless Solutions to continue addressing
homelessness in the city.
Director Perry asked if these results were shared with the City of Costa Mesa
and Councilman Stephens.
•
Mr. Carroll confirmed that the results were shared.
Vice President Ferryman commented that it was surprising that the survey results
were negative. Additionally, he indicated that he agrees with staffs
recommendation not to move forward with the program.
President Scheafer commented that he is proud of the Board of Directors for
trying to address the issue of homelessness and thanked Vice President
Ferryman for leading the efforts.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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The Board of Directors directed staff not to move forward with the mobile
portable restroom program.
President Scheafer asked if the City of Costa Mesa would assist with the cost of
the survey.
Mr. Carroll responded that they would not.
There was no further discussion and the report was received.
G. TREASURER'S REPORTS
Action: 1. Approve the Investment Report for the Month of April 2018
Recommendation: That the Board of Directors approve the Investment Report for the
month of April 2018.
District Treasurer, Marc Davis, provided report details. He noted that the District
is entering its "dry period," during which minimal revenue is received. Mr. Davis
explained that the District receives the majority of its revenue from property taxes
during the March-April and November-December timeframes.
President Scheafer asked if the District invests in foreign markets.
Mr. Davis noted that the Board of Directors passed a policy that allows the
District to invest in supernationals, but noted that the District has not done so.
Discussion followed regarding the California Public Employees' Retirement
System (CaIPERS).
Motion: To approve the Investment Report for the month of April 2018.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 4-0-1 with Assistant Secretary Ooten absent
Aye: Arlene Schafer, Art Perry, Jim Ferryman, Mike Scheafer
There were no further questions or comments.
H. ATTORNEY'S REPORTS
District Counsel, Alan Burns, provided an overview of an incident regarding a
District easement. He noted that the District sought to conduct maintenance
on an easement that the District has owned since the 1950s and the property
owner (on whose property the easement lies) refused to allow District staff onto
his property. Mr. Burns shared that the District obtained a warrant to enter the
property to conduct maintenance.
Discussion followed regarding the incident and potentially revising the District's
ordinance to address incidents like this.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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There was no further discussion.
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
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 provided an update regarding OCSD's negotiations for
a property that it sought to obtain.
Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry provided an update regarding the budget for the Corps of
Engineers.
Information: 3. Independent Special Districts of Orange County (ISDOC) - (President
Scheafer)
President Scheafer noted that he attended the Orange County Council of
Governments (OCCOG) meeting as the ISDOC representative and provided
OCCOG updates.
Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer shared that she has been presenting checks to schools that
participated in the District's Battery Recycling Program. She also noted that she
attended CSDA Legislative Days and provided the Costa Mesa Fire Chief with a
tour of the District's headquarters.
Information: 5. Special District Risk Management Authority (SDRMA) - (President
Scheafer)
President Scheafer noted that SDRMA is still in search of a new CEO, but shared
that they have hired an interim CEO.
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 Water Advisory Committee of Orange
County (WACO) meeting.
COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 24,2018
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
President Scheafer provided comments regarding a type of sewer system used
in Tennessee. Additionally, he asked that staff address missed trash pickups on
Monrovia Avenue in Costa Mesa, because he received several complaints from
residents who live on this street. Lastly, President Scheafer provided an update
regarding the first Citizens Advisory Committee meeting.
M. ADJOURN TO CLOSED SESSION
President Scheafer adjourned the meeting to closed session at 6:32 P.M. to
discuss the following items:
1. Public Employee Performance Evaluation (Gov. Code §54957) -
Title: General Manager
2. 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
N. RECONVENE TO OPEN SESSION
President Scheafer reconvened the meeting to open session at 6:49 P.M. and
reported that he was given direction by the Board of Directors to negotiate with
the General Manager regarding his performance evaluation and bring the item
back to the June 28, 2018 Board Meeting.
O. CLOSING ITEMS
Procedural: 1. Adjourn
President Scheafer adjourned the meeting at 6:49 P.M.
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Arlene Schafer' ' Michael Scheaf:r
Secretary President