Loading...
Minutes - Board - 2018-05-08 ��SAA COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION MAY 8,2018 Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Alan Burns (District Counsel), Noelani Middenway (District Clerk), Robin Hamers (District Engineer), Gina Terraneo (Management Analyst II), Nabila Guzman (Management Analyst I) Others present Luke Money (Daily Pilot), Jim Mosher(resident), Carmen Twork (C.J. Segerstrom & Sons), Jeff Reese (C.J. Segerstrom & Sons), Gary Hepburn (C.J. Segerstrom & Sons), Jason Poulsen (C.J. Segerstrom & Sons) Meeting called to order at 9:30 A.M. A. OPENING ITEMS Procedural: 1. Call to Order President Scheafer called the meeting to order at 9:30 A.M. Procedural: 2. 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.) President Scheafer noted that the roll call was taken during the previous Special Meeting and that all Board Members remained present. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 8,2018 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 from the public wishing to speak, President Scheafer closed public comments. C. ITEMS OF STUDY Action, Discussion: 4. 1585 MacArthur Blvd - Request for additional vacation/quitclaim of sewer main and easement Recommendation: The Board of Directors: 1. Discuss the details of the new request at the May 2018 study session; and 2. Direct the General Manager to bring back final documents to a regular Board of Directors meeting and consider formal action at that time. President Scheafer requested that Item C4 be moved up in the agenda to accommodate those in attendance from C.J. Segerstrom & Sons. District Engineer, Robin Hamers, provided an overview of the requested vacation/quitclaim of the sewer main and easement at 1585 MacArthur Blvd. He noted that the process began two years ago, when an original quitclaim deed and indemnification agreement were drafted in order for the District to vacate its sewer main and easement. Mr. Hamers explained that C.J. Segerstrom & Sons (the property owners) initially sought to sell the property, but they now wish to construct a new building for rental purposes. He added that a new quitclaim deed and indemnification agreement are needed and that C.J. Segerstrom & Sons has submitted plans for the new construction. Lastly, Mr. Hamers noted that the District's former Finance Manager intended to seek reimbursement from C.J. Segerstrom & Sons for engineering and attorney's costs incurred by the District as a result of this request. Vice President Ferryman asked how much the District has spent in engineering and attorney's costs. Mr. Hamers responded that he was unsure of the total costs, but noted that the cost could be totaled and presented to the Board of Directors at a future meeting. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 8,2018 President Scheafer asked if the costs could be brought to the Board of Directors at the next board meeting. Discussion followed regarding whether or not the documents could be finalized in time for the May Board Meeting, or if they would be presented at the June Board Meeting. The Board of Directors directed staff to bring back the final documents to a regular Board of Directors Meeting, along with the total engineering and attorney's costs to date, for formal action at that time. Jeff Reese of C.J. Segerstrom & Sons asked if construction can begin before the Board of Directors takes formal action on the request. He noted that construction is anticipated to begin as early as 30-45 days. District Counsel, Alan Burns, noted that the District's indemnification agreement . has not yet been signed, which would open up the District to liability if construction began prior to its signing. Discussion followed regarding the timeline of completing the necessary documents for formal action. Mr. Hamers noted that the documents would be prepared in time for the May 24, 2018 Board of Directors meeting. There were no further comments or discussion. Action (Consent): 1. Alkaline Battery Recycling Program - Final Report Recommendation: That the Board of Directors receive and file the report and direct staff to increase the award amounts for next years Alkaline Battery Recycling Program. President Scheafer noted that there is no Organics Tonnage Report or Solid Waste Diversion Report on the agenda because today's Study Session took place too early in the month to receive the report data from CR&R. Management Analyst I, Nabila Guzman, presented report details. She noted that 18 schools participated in the program and collected a total of 8,720 pounds of alkaline batteries. Additionally, Ms. Guzman noted that staff is proposing a new reward structure that is outlined in the staff report. President Scheafer asked if the Board of Directors could be sent an updated list of award presentations that have not yet been assigned to a Board Member. He also noted that this is the highest level of school participation that the program has had so far and indicated that he approves of the proposed reward structure. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 8,2018 Assistant Secretary Ooten indicated that he does not approve of increasing the top awards, but he does see the need for updating the reward amounts given to lower placed schools. He commented that he does not see an advantage in awarding more money to the top collectors. Director Perry indicated agreement with Assistant Secretary Ooten and suggested that all participating schools receive an award, including those that collect less than 50 pounds of alkaline batteries. Vice President Ferryman asked where the funding for the Alkaline Battery Recycling Program comes from. General Manager, Scott Carroll, noted that the program is funded by the Solid Waste Fund and is budgeted for each fiscal year. President Scheafer asked how the District structured the Telephone Book Recycling Program rewards. Mr. Carroll noted that the District has implemented the Alkaline BatteryRecycling 9 Program for the last five years and he does not remember how the Telephone Book Recycling Program was structured. Discussion followed regarding the reward structure. Mr. Carroll requested clarification regarding the Board's direction. The Board of Directors directed staff to bring the item back to the next Study Session with additional options for proposed reward structures. There were no further comments or discussion. Action: 2. Citizens Advisory Committee - Update Recommendation: That the Board of Directors receive and file this report. General Manager, Scott Carroll, noted that the Citizens Advisory Committee (CAC) will have its first meeting on May 15, 2018 and provided an overview of the proposed agenda. He noted that the committee will go over the CAC guidelines and responsibilities, appoint a Chair and Vice Chair, receive a report on the Citizens Environmental Protection Academy, watch the District's promotional video, receive the special assignment to discuss voting districts, and establish a regular meeting day and time. President Scheafer suggested that the Brown Act be discussed with the CAC. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 8, 2018 Mr. Carroll noted that the Brown Act is included in the CAC guidelines and responsibilities, and it will be discussed during the meeting. Secretary Schafer asked if all of the Board Members are welcome to attend the CAC's first meeting. Mr. Carroll responded that all of the Board Members may attend. Secretary Schafer asked if the May 24, 2018 Board Meeting will include a public hearing on the topic of voting districts. Mr. Carroll explained that the District must have five public hearings on this matter and May 24th will be the first hearing. Discussion followed regarding the length of the first CAC meeting, Board representation on the CAC, and the selection of a CAC Chair. There were no further comments or discussion and the report was received. Action, Receive and File: 3. Quarterly Legislative Update -Quarter 2 Recommendation: That the Board of Directors receive and file the Quarterly Legislative Update. Management Analyst II, Gina Terraneo, provided an overview of the legislation that the District is currently supporting (AB 196, AB 2003, SB 929) and opposing (AB 2916 and SB 623). District Counsel, Alan Burns, noted that there is a legal distinction between a "sanitation" and "sanitary" district in regards to AB 2003. Discussion followed regarding SB 929 and its potential impact on small districts. Director Perry asked if SB 623 was a two-year bill. Ms. Terraneo responded that she was unsure but would find out. There were no further comments or discussion and the report was received. Action: 5. Consider Adopting Resolution Indicating an Intention to Conduct Public Hearings and to Adopt District Elections by August 11, 2018 Recommendation: That the Board of Directors Adopt Resolution No. 2018-908 Indicating an Intention to Conduct Public Hearings and to Adopt District Elections by August 11, 2018. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 8,2018 District Counsel, Alan Burns, explained that the District received a letter from an attorney alleging that its "at-large" elections cause racially polarized voting. He noted that the damages would be substantial if the attorney prevailed in his allegations; however, if the District adopts a resolution of intention to provide a remedy and adopts an action plan within 45 days of receiving the letter, the attorney's fees for challenging the District's election system would be limited to about $30,000-$32,000. Additionally, Mr. Burns noted that the District will be working with a demographer, holding five public hearings, and having the Citizens Advisory Committee (CAC) discuss and provide feedback on the subject. Discussion followed regarding cities that have challenged similar letters. Secretary Schafer commented that it may be too early for the District to adopt the resolution, since the CAC has yet to discuss the issue of voting districts. Mr. Burns noted that the District has 45 days to adopt the resolution and noted that the resolution establishes intent without binding the Board of Directors to adopting by-district elections. Additionally, he noted that any changes to the election methods would not go into effect until the next voting cycle in 2020. Motion: To Adopt Resolution No. 2018-908 Indicating an Intention to Conduct Public Hearings and to Adopt District Elections by August 11, 2018. Motion by Art Perry, second by Bob Ooten. Jim Mosher, a resident, commented that it was unusual for the Board of Directors to adopt a resolution during a Study Session and noted that this is likely due to the aforementioned 45 day deadline. He asked what designates August 11 as a deadline for the public hearings. Additionally, Mr. Mosher commented that the District should not utilize the same voting districts as the City of Costa Mesa, since the District's service area differs from the City boundary and the District has differing trash and sewer customers. Lastly, he commented that the resolution comes across as rushed and contains typos. Mr. Burns responded that the August 11 deadline is derived from the Elections Code and noted that the registrar would not be able to process a change in the voting districts until the next election cycle. President Scheafer commented that the Board does not plan on utilizing the same voting districts as the City of Costa Mesa. District Engineer, Robin Hamers, commented that the District's service area population needs to be updated by the demographer. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 8,2018 President Scheafer requested that the typos be corrected within the resolution prior to signing. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further comments or discussion. D. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments Vice President Ferryman shared that Hank Hornsveld's funeral will be held on Friday. Procedural: 2. Adjournment President Scheafer adjourned the meeting at 10:33 A.M. f Li„. f. Arlene Schafer — Michael Sche-fe Secretary President