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Minutes - Board - 2020-01-27COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING JANUARY 27, 2020 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), Marc Davis (District Treasurer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Nabila Guzman (Management Analyst 1), Gina Terraneo (Management Analyst II & Acting District Clerk) Others present Yefim Tsalyuk (Robin B. Hamers & Associates, Inc.), Michael Benesh (Robin B. Harriers & Associates, Inc.), Michael Brick (resident) Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Ferryman President Ferryman called the meeting to order at 4:30 P.M. Procedural: 2. Pledge of Allegiance - President Ferryman President Ferryman led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Ooten Vice President Ooten led the Invocation. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 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.) Acting District Clerk and Management Analyst 11, Gina Terraneo, conducted roll call and noted that all Board Members were present. 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 comments were submitted via e-mail by District resident, Jim Mosher, and copies were provided to the Board of Directors, staff, and the public. Procedural: 6. Ceremonial Matters and Presentations None at this time. B. ADJOURN TO CLOSED SESSION Discussion: 1. Discussion of the annual personnel evaluation of the General Manager pursuant to Government Code Section 54957 Discussion: 2. Discussion of compensation for the General Manager and providing the Board President with authority to negotiate with the General Manager pursuant to Government Code Section 54957.6 Director Perry suggested that the closed session items be moved to the end of the meeting. The Board of Directors indicated agreement and President Ferryman noted that the closed session items would be moved to the end of the meeting agenda. D. Public Comments Procedural: 1. Public Comments President Ferryman opened public comments. Seeing no one wishing to speak, he closed public comments. E. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of December 10, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting Minutes of December 19, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 4. Approve the Revised Board of Directors Regular Meeting Minutes of July 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 2020-07 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2020-07 approving District warrants for the month of December in the amount of $760,221.68. Action (Consent): 7. Payroll Transparency Disclosure for December 2019 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 8. Accept the occupancy count as presented as 22,908 and direct staff to prepare a warrant to CR&R Environmental Services for $237,407.06 for December 2019 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,908 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,407.06 to be ratified in the January 2020 warrant list. Action (Consent): 9. Approve the preparation of a warrant to CR Transfer in the amount of $211,102.16 for December 2019 recycling and disposal services in the January 2020 warrant register COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $211,102.16 for December 2019 recycling and disposal services to be ratified in the January 2020 warrant register. Action (Consent): 10. Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Citizens Advisory Committee (CAC) January 8, 2020 Meeting Overview Recommendation: That the Board of Directors receive and file this report. Motion: To approve the Consent Calendar as presented. Motion by Bob Ooten, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. F. PUBLIC HEARINGS None at this time. G. GENERAL MANAGER'S REPORTS Action: 1. Consider Dismissing Citizens Advisory Committee Members Albert Graham Jr. and Steven Takahashi Recommendation: That the Board of Directors considers dismissing Albert Graham Jr. and Steven Takahashi from serving on the Citizens Advisory Committee (CAC) and direct staff to solicit applications to fill the two CAC vacancies. Mr. Carroll shared that the CAC Handbook states that members should attend all meetings, and 3 unexcused absences per year can establish a basis for removal. He explained that CAC Member Graham Jr. has missed 5 consecutive meetings and CAC Member Takahashi has missed 3 of 4 meetings. He noted that District staff recommends dismissing both members and soliciting applications to replace them. He added that Chair Carey supports this recommendation. Secretary Schafer confirmed that if the recommendation is approved, the District would dismiss the members in writing. Vice President Ooten clarified that 3 total unexcused absences (rather than 3 consecutive unexcused absences) establishes grounds for dismissal. Director Scheafer confirmed that CAC Member Takahashi was appointed to the Policy Review Ad Hoc Committee, but had not attended any of the meetings. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Motion: To dismiss Albert Graham Jr. and Steven Takahashi from serving on the Citizens Advisory Committee (CAC) and direct staff to solicit applications to fill the two CAC vacancies. Motion by Mike Scheafer, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 2. Consider Estancia High School Baseball Boosters Contribution Program Application Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Baseball Boosters Program; and 2. Describe how the expenditures will advance CMSD's purpose; and 3. Consider contributing $525 for a 71x12' outfield banner, as well as Facebook and website advertisements. Director Perry recused himself from the discussion and exited the room at 4:36 P.M. He noted that he is still employed by Estancia High School. Mr. Carroll shared that the Estancia High School Baseball Boosters is requesting a contribution of $525 for an outfield banner that can be used to promote District programs. He reminded the Board that in order to approve a contribution, the Board must establish the purpose that the District is trying to serve by contributing and describe how it will advance the District's purpose. Director Scheafer indicated support for the contribution and noted that the banner size is large. He commented that the District has a legacy of supporting local sports teams. Motion: To approve a contribution of $525 to the Estancia Baseball Boosters for a 7'x12' outfield banner, as well as Facebook and website advertisements, which meets the District's statutory purpose of recycling through the promotion of the Organics Recycling Program by encouraging residents to "recycle green waste and food scraps into renewable natural gas and compost." Motion by Bob Ooten, second by Mike Scheafer. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer Not Present at Vote: Art Perry Director Perry re-entered the meeting at 4:38 P.M. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 District Counsel, Alan Burns, noted that Director Perry recused himself out of an excess of caution; however, he noted that Director Perry does not have a legal conflict that would require him to recuse himself from this item. There was no further discussion. Action: 3. Consider Approving out-of-state travel for the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11-13,2020. Recommendation: That the Board of Directors Consider Approving Out -of -State Travel For the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11-13, 2020. Motion: To approve out-of-state travel for the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11- 13, 2020. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action: 4. Consider Approving Out -of -State Travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno Nevada Recommendation: That the Board of Directors Approve Out -of -State Travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno, Nevada. Motion: To approve out-of-state travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno, Nevada. Motion by Arlene Schafer, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action, Receive and File: 5. 2019 Year End Report Recommendation: That the Board of Directors receive and file this report. Mr. Carroll noted that District staff prepares an annual Year End Report, and he shared that this year's report was reviewed by the 2019 Annual Accomplishments Ad Hoc Committee. He noted that the Committee made some suggested revisions, which were made to the finalized report. He welcomed questions. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Motion: To receive and file this report. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action: 6. Receive and File the 2015-20 Strategic Plan Quarterly Update - FY 2019- 20 2nd Quarter Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented the Strategic Plan Quarterly Update. He noted that he received some questions from Vice President Ooten, which he would like to address. Mr. Carroll explained that the District installed a flow meter to track inflow occurring in the Mendoza tributary area. He shared that the District believes the inflow is coming from the Orange County (OC) Fairgrounds property, and that the next step is to enter the property to determine whether there are any openings that allow for water to enter the wastewater system. Vice President Ooten requested a Study Session item to provide an update on the findings. Director Perry asked if the District needs to notify the OC Fairgrounds of the intent to enter their property. Mr. Carroll noted that the District will need permission to enter the property; however, they do not want to give the OC Fairgrounds the opportunity to cover any potential openings prior to inspection. Director Scheafer indicated concern about the state of the sewer lines at the Fairview Development Center property. Mr. Carroll commented that the District may want to consider doing a flow study on this property. He proceeded by explaining the progress toward Strategic Goal 1.5. He noted that National Plant Services assisted the District with cleaning, but this is not included in the report because they did not begin until January 6, 2020 and the current reporting period ended on December 31, 2020. Mr. Carroll also noted that the District received a grant for the collection of household hazardous waste and that Wastewater Maintenance Superintendent, Steve Cano, is the current President of the California Water Environment Association (CWEA) Santa Ana River Basin Section (SARBS). Director Scheafer asked if the District plans to be involved in more community talks like the event with author, Bea Johnson. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Mr. Carroll noted that there are no future talks planned, but the Solid Waste Ad Hoc Committee will be hearing proposals from public relations firms to help the District with public outreach and education. Motion: To receive and file this report. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 7. Recieve and File the Fiscal Year 2019-20 Budget Review — Mid -Year Recommendation: That the Board of Directors receive and file the Fiscal Year 2019-20 Budget Review — Mid -Year. Finance Manager, Kaitlin Tran, provided the Mid -Year Budget Review. She noted that a total of 48.1 % of the Solid Waste budget has been expended and 46.5% of the Wastewater budget has been expended. She reviewed the status of various accounts within the District's Solid Waste and Wastewater Funds. Director Perry asked how much the District has received in annual charges and how much the District expects to receive in total. Ms. Tran noted that the District has received approximately $2.7 million and is expecting to receive approximately $5.1 million in total. Director Perry asked if there are unpaid annual charges from past years that are owed to the District. Ms. Tran noted that there are funds still owed from past years, and that the County of Orange cannot tell the District who owes. Director Scheafer inquired about funds that were traditionally kept for rate stabilization. District Treasurer, Marc Davis, noted that these funds were budgeted in the Solid Waste Fund in prior years. He explained that during the current fiscal year, it was decided that a General Fund would be created to house these funds. He noted that the District has fully appropriated the funds for a variety of things, including rate stabilization. Ms. Tran noted that the Board approved $50,000 to go toward the sponsorship of restrooms at the City of Costa Mesa's bridge shelter, while the rest would be transferred to the Solid Waste Fund to stabilize rates. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Director Perry asked how much the District has in unrestricted funds. Mr. Davis explained that there is approximately $2.4 million in unrestricted funds in the Solid Waste Fund and the District needs $2.7 million during its revenue dry period. There was no further discussion and the report was received. Action (Consent): 8. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2019 Recommendation: That the Board of Directors receive and file the Popular Annual Financial Report for the year ended June 30, 2019. Mr. Carroll explained that every public agency in California must complete a Comprehensive Annual Financial Report (CAFR), which is a large document that explains what the agency has spent during the year. He noted that CAFRs can be very long and difficult to read, and so the PAFR is a simpler alternative that only some agencies produce. He commented that the District completed a PAFR for the 3rd consecutive year, while only 16 municipalities and 6 special districts in the state create a PAFR. He commended Ms. Tran and her staff on creating the PAFR. Director Perry asked where the District sends the PAFR. Mr. Carroll noted that the PAFR is posted on the District's website and sent to the Government Finance Officers Association (GFOA) for award consideration. The Board commended Ms. Tran on the PAFR. There was no further discussion and the report was received. Action: 9. Refund of Sanitary Assessment - APN 422-022-11 Hamilton Street Recommendation: That the Board of Directors provide direction to staff on refund for APN 422-022-11. Management Analyst I, Nabila Guzman provided report details. She explained that resident, Michael Brick, noticed that his property taxes were unusually high and inquired about this. Ms. Guzman shared that she found out that District staff had changed Mr. Brick's property from a single-family home to a multi -family home with 6 units in 2006, resulting in incorrect wastewater assessment charges. She noted that the District refunded Mr. Brick $1,380.51 in 2019 for 4 years of overpaid wastewater charges, and that Mr. Brick is requesting a refund for the remaining amount of $3,501.57 for FY 2006-2007 to FY 2015-2016. She noted that Mr. Brick's letter is attached to the staff report. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 The Board indicated that they had read Mr. Brick's letter. Mr. Burns reiterated that Mr. Brick is seeking a refund for the misclassification of his property. He noted that Mr. Brick's letter includes cited provisions of the law, some of which are applicable and some of which are not. He explained that the District abides by Proposition 218 procedures regarding fees, and he noted that Mr. Brick's request brings into question the statute of limitation and the claims statute. Mr. Burns noted that all actions, including government debts, have a statute of limitation. He explained that the Legislature made an exception that sewer connections prior to 1992 have no statute of limitation, whereas sewer claims after 1992 had a statute of limitations of 6 months. Mr. Burns indicated that his opinion is that the proper refund would have been for 6 months of overpaid charges. He noted that the Board must now decide how to respond to Mr. Brick's request, and he noted that approving the request could be considered a gift of public funds since it would not comply with the statute of limitation. He added that there have been some cases where public bodies have been challenged in court for not adhering to statutes of limitation. Mr. Burns noted that the District has an ordinance in Chapter 9.02 that sets a statute of 180 days for these types of claims, or 4 years if filed under protest on the property tax bill; otherwise, the statute of limitation is 6 months for sewer claims (unlimited prior to 1992) and 1 year for solid waste claims. Director Perry commented that he remembered possibly issuing refunds for up to 3 years in the past. Mr. Burns commented that this may be possible, since 3 years is the general statute of limitation for an obligation based on statute. He cited a government code that may have been issued more recently, which clarified the statute of limitation for sewer fees. Director Perry indicated support for capping Mr. Brick's refund at 4 years in order to avoid violating any state laws. Director Scheafer confirmed that Mr. Brick discovered the error in fees in November of 2019. Mr. Brick addressed the Board and commented that ratepayers have a reasonable reliance and trust in the District to present the correct fees, which he paid in good faith and had no reason to believe were inaccurate. He commented that he questions whether the misclassification of his property was done accidentally, as it would have required more than a single keystroke error to change the property from a single-family property to a multi -family property with 6 units. Mr. Brick noted that he does not believe it was done with malicious intent. He commented that other parcel owners were also simultaneously being charged for the fees assigned COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 to his property, allowing the District to "double -dip." Lastly, he explained that he is simply requesting a refund for overpaid charges, and not for interest or penalties. Director Perry inquired about the claim of "double-dipping." Ms. Guzman noted that she conducted research and found that the other properties in this development were classified as single-family homes and one property was exempt. President Ferryman commented that he is in favor of determining what the District can legally do, as well as taking care of ratepayers in this situation. Director Scheafer confirmed that District staff made the error (not Orange County staff). He also confirmed that Mr. Carroll made the decision to refund Mr. Brick for 4 years' worth of overpaid charges. Mr. Carroll noted that the General Manager has the authority to issue refunds of under $5,000. Director Scheafer commented that it can be dangerous to set a precedent by refunding Mr. Brick for the full requested amount. He indicated that he supports adhering to the statute of limitation. Mr. Burns noted that the Board would need to establish a purpose for waiving the statute of limitation, if they chose to do so, in case the District is challenged in court. He reiterated that the District has an ordinance in place to provide guidance on this matter. Discussion followed regarding court cases cited by Mr. Brick's letter. Mr. Burns noted that the statutes are quoted correctly but are taken out of context. He added that there is a statute of limitation for everything. Vice President Ooten verified the total refund request amount. He indicated that he is in favor of refunding Mr. Brick for the amount that he is owed. President Ferryman indicated agreement with Vice President Ooten. Secretary Schafer suggested that the Board make a finding to describe why the decision was made to issue a refund. President Ferryman commented that he hopes this is an isolated incident. Mr. Carroll noted that the next item on the agenda is also a refund request. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Director Scheafer commented that there should be some personal responsibility upon the ratepayer to address the overpayment when it first occurred. Director Perry indicated agreement with Director Scheafer. Motion: To deny the refund request for the sanitary assessment for APN 422-022- 11 Hamilton Street. Motion by Art Perry, second by Mike Scheafer. Motion does not carry and no vote was taken. President Ferryman and Secretary Schafer commented that they do not agree with the motion. Motion: To approve the refund request for the sanitary assessment for APN 422- 022-11 Hamilton Street in the amount of $3,501.57 and to make a finding that the claimant did not have sufficient facts to bring the overpayment to the attention of the District within the statute of limitations. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 3-2 Aye: Arlene Schafer, Bob Ooten, Jim Ferryman No: Art Perry, Mike Scheafer There was no further discussion. Action: 10. Refund of Sanitary and Trash Assessment - APN 422-102-09 Bernard Street Recommendation: That the Board of Directors provide direction to staff on refund for APN 422-102-09. Ms. Guzman shared that Mr. Brick brought to her attention that he had a friend with similar issue in December of 2019. She noted that she found that the property is a single-family property that was misclassified by the City of Costa Mesa as a multi -family property with 3 units. She added that the property was charged accordingly for both solid waste and wastewater, and she noted that this is the only single-family property on this street. Ms. Guzman shared that the request is for a refund of charges for the past 4 years, similar to what was provided to Mr. Brick. Director Perry inquired about the identity of the property owner. Director Scheafer inquired about why the District used the City of Costa Mesa's classification. Ms. Guzman explained that City staff were in charge of the District's records during the time of the misclassification. She added that the property owner did not submit COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 a refund request to cover a specific length of time; however, a refund of the past 4 years equates to $2,025.38. Motion: To approve the refund request for the sanitary assessment for APN 422- 102-09 Bernard Street in the amount of $2,025.38 and to make the findings that the City of Costa Mesa made a misclassification error on this property and that the claimant did not have sufficient facts to bring the overpayment to the attention of the District within the statute of limitation. Motion by Bob Ooten. Director Scheafer asked if the City can reimburse the District for this amount. Director Perry noted that the District and City shared staff during this time. Motion: To table the refund request until more information is gathered about how long the overpayment occurred and the extent of the liability that the refund would present. Motion by Mike Scheafer, second by Jim Ferryman. Discussion followed regarding when to bring the item back. Director Scheafer requested that the item be brought back at the February Board Meeting. He noted that the property owner did not specify how many years they are requesting a refund for. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 11. Consider Giving the General Manager the Authority to Auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014) Recommendation: That the Board of Directors approves giving the general manager authority to auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014). Motion: To approve giving the General Manager authority to auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014). Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action: 12. Receive and File General Manager's 2019 Performance Goals and Consider Approving His Proposed 2020 Performance Goals COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Recommendation: That the Board of Directors receive and file the General Manager's 2019 Performance Goals and consider approving his 2020 Performance Goals. Mr. Carroll presented his proposed 2020 Performance Goals and welcomed direction from the Board. He noted that Vice President Ooten had inquired about the status of the District's goal of achieving 75% landfill diversion. He explained that District staff presented a staff report and plan to propose taking over multi- family trash collection service in the City of Costa Mesa, but City officials were not receptive to the plan. Vice President Ooten commented that the plan to achieve 75% diversion should have included additional elements, aside from taking over multi -family trash collection service. He requested additional information about how the District plans to achieve this goal. Mr. Carroll sought additional clarification and direction from the Board regarding his proposed goals. Motion: To approve the General Manager's proposed 2020 performance goals. Motion by Mike Scheafer. Director Scheafer commended Mr. Carroll on his work in 2019. He asked if District staff can reach out to the new Water Emergency Response Organization of Orange County (WEROC) contact to continue collaboration with regard to emergency planning. Vice President Ooten suggested adding a goal to develop a new Master Plan. He commented that there should be discussion about how the plan should be created and when it should be completed. Secretary Schafer suggested that it be integrated with the District's Strategic Plan. Amended Motion: To approve the General Manager's proposed 2020 performance goals with the addition of a goal to develop a Master Plan. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 13. Performance Measurement Program - 2019 Annual Report Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented the 2019 Annual Performance Measurement Program Report. He noted that the biggest concern is that the District did not meet its goal COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 related to sanitary sewer overflows, and this was due to the Vacall vehicle being under repair, which put the wastewater staff behind on their cleaning schedule. He shared that some positive achievements occurred in the areas of citizen engagement and transparency. He welcomed questions and noted that he will submit an award application to the International City/County Management Association (ICMA) for the Performance Measurement Program. There was no further discussion and the report was received. Action: 14. District Engineer Recommendation: That the Board of Directors considers approving the following: 1. Job description and salary schedule for District Engineer position; and 2. Direct staff to request proposals from executive search firms to recruit for the District Engineer position; and 3. Beginning in FY 2020-21 the District Inspector will provide inspection services to private developments. Mr. Carroll shared that the late District Engineer's firm, Robin B. Hamers & Associates, Inc. (RBH), will continue with Michael Benesh as its new President. He recommended that the District continue to use RBH on a short-term basis, and hire an in-house District Engineer as a long-term solution. He noted that the staff report includes a salary survey for engineers at similar agencies, and that staff recommends using the median top third range of salaries ($126,076 to $170,128) in order to attract and recruit highly qualified candidates. He also recommended using RBH to provide inspection services until the District's Engineering Technician completes his training and obtains proper certifications to become the District's in-house Inspector, at which point RBH can provide alternate inspection services if needed. He added that he would like to recommend using a recruiting firm to recruit and vet the candidates for the District Engineer position if the Board approves the recommendation, which would cost approximately $25,000-$30,000. Lastly, Mr. Carroll noted that the in-house District Engineer would be placed in the office that is currently being rented by Second Chance Orange County, meaning that their office would have to be moved or their lease terminated. Secretary Schafer suggested bringing the item to a Study Session to discuss further. Director Perry indicated agreement and suggested that the Board re -assess after continuing to work with RBH for another 6 months or more. Vice President Ooten indicated agreement. He commented that the District Engineer has an enormous responsibility, given the list of duties provided in the staff report. COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Director Perry suggested bringing the item back to a Study Session after 3 months, to allow for time to assess RBH. Vice President Ooten asked how the District plans to pay for the in-house District Engineer's salary. Discussion followed regarding when the Board should re -assess working with RBH. Vice President Ooten commented that a Master Plan could help with this decision. He emphasized the importance of moving forward with projects that are in process. Director Scheafer inquired about the District's contract with RBH. Mr. Burns noted that the contract is indefinite, because RBH is a corporation that survives the individual (Robin Hamers). He noted that staff will make sure the appropriate delegations are made within the contract. Director Scheafer commented that he is not comfortable putting a date on the re- assessment. He commented that he does not want the District to be short-handed. Director Perry requested that RBH have a representative attend Board Meetings and Study Sessions. Mr. Carroll noted that he will work with Mr. Burns to determine what needs to be done to formalize the District's continued agreement with RBH. The Board of Directors directed staff to table the item until further information can be provided. There was no further discussion and the report was received. Action: 15. Consider Naming District Facility After the Late Robin Hamers Recommendation: That the Board of Directors considers naming a District facility after the late Robin Hamers. Mr. Carroll presented a list of potential District facilities that can be named after Robin Hamers. He commented that the District Yard is appropriate, since Mr. Hamers was involved in its construction. He shared that the facility sign on Fairview Road can be easily updated, while the sign on West Wilson Street may be expensive to revise. He sought the Board's direction and noted that Mr. Hamers' family will be in the area in May, at which time a ceremony can be held. Director Scheafer commented that he does not want to wait on naming the facility. COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Motion: To rename the District Yard facility after Robin Hamers and to proceed with revising the sign on Fairview Road. Motion by Mike Scheafer, second by Art Perry. Vice President Ooten commented that the sign should still include "Costa Mesa Sanitary District." He asked if Mr. Hamers' name can be added to the building itself. Mr. Carroll noted that it would be difficult for the public to see if his name was added only to the building. Director Perry confirmed that a plaque will also be added to the building to commemorate Mr. Harriers. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Scheafer requested that District staff develop a policy for naming District facilities. There was no further discussion. H. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the Monthly Capital Improvements Project Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Carroll presented the Capital Improvement Project Status Report. There were no questions or discussion and the report was received and filed. I. TREASURER'S REPORTS Action: 1. Investment Report for the Month of December 2019 Recommendation: That the Board of Directors approve the Investment Report for the month of December 2019. Mr. Davis presented the December 2019 Investment report details. He noted that the markets were down today. He explained that the District's investment portfolio is earning 1.84% on a duration of about 1.5 years. He added that 2 investments were called in December and 1 certificate of deposit matured. Mr. Davis shared that he anticipates that the District will have a fair amount of securities called. Director Perry inquired about interest rates for purchasing homes. COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Mr. Davis noted that rates are a little over 3%. Director Scheafer inquired about T-bills. Mr. Davis noted that the yield curve was inverted, which happens periodically. Discussion followed regarding the OC Pool. Motion: To approve the Investment Report for the month of December 2019. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. J. ATTORNEY'S REPORTS Action: 1.2277 Harbor Blvd., Costa Mesa Approving Vacation of District Sewer Main and Easement Quitclaim Deed Recommendation: That the Board of Directors: 1. Approve in concept the developer request to vacate the sewer main and easement. 2. Have the attorney for the District consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. Mr. Burns presented the report details. He noted that 2277 Harbor Blvd. used to have a hotel on the property, and that the property owner asked that the District vacate its sewer easements on the property. He explained that the District prefers not to have its sewer lines on private property, therefore the District would be in favor of vacating this sewer main and having the new property owner build a private sewer that would connect to the District's main in the public right of way. Mr. Burns shared that the District posted a public notice at the site and published a notice for today's public hearing. He added that there are still a few remaining matters to finalize the vacation, including that the Board conduct a public hearing, approve the attached resolution, and make the findings stated in the recommendation. Motion: To approve in concept the developer request to vacate the sewer main and easement, approve Resolution No. 2020-927, and direct the attorney for the District to consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. Motion by Bob Ooten, second by Art Perry. Mr. Burns reiterated that the Board should conduct a public hearing to find out if there are any public comments on this matter. COSTA MESA SANITARY DISTRICT PAGE 19 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 President Ferryman opened the public hearing at 6:17 P.M. Seeing no one wishing to speak, he closed the public hearing at 6:17 P.M. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. K. 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 Section 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) - (President Ferryman) President Ferryman noted that nothing significant occurred at the OCSD meeting. Vice President Ooten noted that it was a short meeting, and various capital improvement projects were discussed. Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry shared that SARFPA had a short meeting that included a call from the Washington D.C. advocate regarding bill updates. Information: 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer shared that the ISDOC Quarterly Meeting will take place on January 30th. She added that the Orange County Local Agency Formation Commission (OC LAFCO) will have an open seat once Commissioner Jim Fisler terms out in March. She also noted that ISDOC is hosting a free workshop on Form 700s on March 17th. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) No report given. Information:5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) COSTA MESA SANITARY DISTRICT PAGE 20 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Director Scheafer shared that he was re-elected as President of the SDRMA Board of Directors. He noted that the re -insurers that SDRMA uses may have to change their rates. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Ooten shared that he attended the Water Advisory Committee of Orange County (WACO). He noted that there was continued discussion about contaminants of emerging concern. Director Perry provided an overview of the Liaison Committee Meeting. L. OLD BUSINESS None at this time. M. NEW BUSINESS None at this time. N. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Secretary Schafer shared that she plans to attend the Special District Leadership Academy in April. She also noted that she was added to the Finance Committee for CSDA. Director Scheafer expressed condolences for long-time Orange Coast College baseball coach John Altobelli and his wife and daughter, who were killed in a helicopter crash along with Kobe Bryant and his daughter. President Ferryman suggested adjourning in their honor, in addition to Robin Hamers. B. ADJOURN TO CLOSED SESSION President Ferryman adjourned the meeting to closed session at 6:38 P.M. to discuss the following items: Discussion: 1. Discussion of the annual personnel evaluation of the General Manager pursuant to Government Code Section 54957 COSTA MESA SANITARY DISTRICT PAGE 21 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2020 Discussion: 2. Discussion of compensation for the General Manager and providing the Board President with authority to negotiate with the General Manager pursuant to Government Code Section 54957.6 C. RECONVENE TO OPEN SESSION 1. Announce any reportable action taken in closed session President Ferryman reconvened the meeting to open session at 7:03 P.M. and reported that he received authorization to negotiate the final compensation figure with the General Manager. O. CLOSING ITEMS Procedural: 1. Adjourn in memory of Robin Hamers President Ferryman adjourned the meeting at 7:04 P.M. in memory of the late District Engineer, Robin Hamers, as well as those killed in the fatal helicopter crash on January 26, 2020, including Kobe Bryant, Gianna Bryant, and long-time Orange Coast College baseball coach John Altobelli and his wife and daughter. Arlene Schafer Secretary Jam Ferryman Pres ent