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Minutes_2020_01_30_Policy ReviewProtecting our community's health and the environment by providing solid waste and wastewater collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Policy Review Ad Hoc Committee 290 Paularino Avenue Costa Mesa, California 92626 MINUTES January 30, 2020 8:00 a.m. Committee members present: Director Art Perry, Director Michael Scheafer, Citizens Advisory Committee Member Monte Fields, Citizens Advisory Committee Member Sue Lester, General Manager Scott Carroll, Administrative Services Manager Dyana Bojarski, Office Specialist Angela Colunga Committee members absent: None. Others present: District Resident, Jim Mosher 1. Call to Order General Manager, Scott Carroll, called the meeting to order at 8:03 a.m. 2. Discussion of District Policies The Committee resumed their review of the District’s Operations Code and discussed Chapter 3.02 – Officers and Employees on page 27. Director Perry asked if the District has a surety bond as stated in Section 3.02.040. Treasurer. Mr. Carroll stated that he is unsure and will consult with the District Treasurer. Director Perry inquired about Ordinance 70, 2008 which is referenced in Section 3.02.505. regarding the Personnel Rules of the District. Director Scheafer noted that if the District decided to hire an in-house District Engineer, then they will have to update Section 3.02.020 District Engineer. Mrs. Bojarski stated that Section 3.02.055. Employment Subject to Criminal History Report needs to be updated to include a policy from Liebert Cassidy Whitmore. Policy Review Ad Hoc Committee Minutes January 30, 2020 Page 2 of 6 Citizens Advisory Committee (CAC) Member, Sue Lester, asked if the District does on-going criminal history reports for existing employees in critical areas. Mrs. Bojarski stated the District does not get such reports, but receives notifications of wastewater employees’ driving records since they are in a safety sensitive position. Mr. Carroll added that District employees are subjected to random drug testing. The Committee discussed having a policy that allows the District to retest any employee operating in a critical area. Mr. Carroll noted that this issue will have to been discussed with District Counsel. Director Scheafer asked if there is any stipulation regarding a high-level employee who is in a situation that needs to be suspended or placed on leave. He asked if the District’s General Manager has the discretion to put employees on administrative leave. Mr. Carroll stated that there is a policy regarding that matter in the District’s Employee Handbook. Director Scheafer inquired about Section 3.02.070. Staff Expenses and out of state travel reimbursements. Director Perry discussed Section 4.01.020. Treasurer and inquired about the District Treasurer’s fidelity bond. Mr. Carroll noted that he will check if the District Treasurer has posted the fidelity bond. Mrs. Bojarski discussed section 4.01.040. Signatures and recommended changing the term “facsimile” to “electronic.” Director Perry asked to review Section 4.01.060. Basic Penalty and Interest Provisions Adopted. Mr. Carroll clarified that if a person or entity does not pay their invoice by its due date then they will incur additional penalties. Director Scheafer inquired if the Operations Code has a policy regarding service refunds for District residents. Mr. Carroll stated that there is no such policy in the Operations Code because that matter is governed by State regulations. Policy Review Ad Hoc Committee Minutes January 30, 2020 Page 3 of 6 Director Perry inquired about the District maintaining a minimum designated Reserve for Working Capital equal to 30% of its operating budget within its Solid Waste Fund, as stated in Section 4.03.010 Summary of Chapter 4.03 – Financial Policies. Mr. Carroll mentioned that the section may need to be revised and he will consult with the District’s Finance Manager. Director Perry discussed segment (d) Risk Management/Retention of Section 4.03.010 and asked if the District maintains appropriate reserves for general liability claims. Director Scheafer noted that segment (d) equates to the District’s deductible for the Special District Risk Management Authority (SDRMA). He explained the purpose of a self-insured retention fund. The Committee discussed reformatting pages 31-32 of Chapter 4.03 – Financial Policies. Mrs. Bojarski inquired if listing the effective date for certain sections is necessary. She noted that the entire Operations Code will be readopted once the Committee finalizes its revisions. Director Scheafer recommended consulting with District Counsel regarding effective and adoptive dates. CAC Member Lester discussed Section 4.03.060. Long Range Fiscal Perspective (Capital Expenditure Policy) and asked what the perspective is for the District. Mr. Carroll confirmed that ten years is considered long range. CAC Member Fields asked what is considered appropriate reserves for the District’s general liability claim. Director Scheafer commented that he is consulting with SDRMA to confirm the District’s retention rate for its general liability deductible. The Committee discussed the classification of capital improvement projects that are budgeted under $100,000 dollars as long-term. Mrs. Bojarski recommended replacing “District Accountant” found in Section 4.05.020. Payments Conforming to Budget with “Finance Manager.” Mr. Carroll suggested discussing the matter with the current Finance Manager before making the revision. Policy Review Ad Hoc Committee Minutes January 30, 2020 Page 4 of 6 Director Perry discussed Section 5.01.010 Policy regarding the annexation of certain properties in Newport Beach. Mr. Carroll noted that there are about six to seven properties in Newport Beach that reside outside of District boundaries but are connected to the District’s sewer system. He stated that the City of Newport Beach is paying for the properties to be connected to the District’s sewer system. He commented that the District plans on annexing these properties and will be holding another public hearing to discuss the matter. Director Perry recommended replacing “District Engineer” found in Section 5.01.030. Procedure with “District Engineer and/or General Manager.” Director Perry asked if there have been any changes to the plumbing code, which is stated in Section 6.01.015. Plumbing Code Adopted. Mr. Carroll stated that there have been changes and the section will be updated accordingly. He recommended contacting the City of Costa Mesa to obtain the recent changes. Mr. Carroll suggested researching Section 6.01.020. Sewer Lateral Construction and Section 6.01.030. Sewer Lateral Extension due to the policy statements being outdated. Director Scheafer updated the Committee on the District’s self-insured retention policy and stated that the District has several deductibles that range from $1,000 to $250,000 dollars. He noted that the $250,000 deductible applies to a flood emergency. He added that the District has a pollution deductible of $75,000 dollars, which would most likely apply to a sanitary sewer overflow. He suggested consulting with the District Treasurer. Director Perry asked if the District submitted a claim for $75,000 dollars to SDRMA for a 2013 sanitary sewer overflow. Mr. Carroll stated that he is unsure and will investigate the matter. Director Scheafer advised to replace Section 6.02.040. Sewer Lateral Assistance Program with the District’s Sewer Inspection Rebate Program. Mr. Carroll advised to remove “Operations Manager” from segment 5 of Section 6.03.030. Requirements for a CCTV Inspection and Repairs. Director Perry asked if the District will ever have a need an Operations Manager. Mr. Carroll stated that perhaps in the future the District might require an Operations Manager. Policy Review Ad Hoc Committee Minutes January 30, 2020 Page 5 of 6 Director Perry discussed segment 6 of Section 6.03.030. Requirements for a CCTV Inspection and Repairs and asked if the District can require a property owner to perform a second CCTV of their sewer lateral. Mr. Carroll confirmed that the District is authorized make that request. Mrs. Bojarski suggested including that the District will hire someone to perform the task at the property owner’s expense to segment 6 of Section 6.03.030. Requirements for a CCTV Inspection. Director Scheafer recommended editing Section 6.03.030. Requirements for a CCTV Inspection and Repairs and Section 6.03.040. Appeals, so that both parties have 15 days to submit a response. Director Perry inquired about Section 6.04.020. User Fees, Section 6.04.030. Connection and Section 6.04.040 Fixture Fees. Mrs. Bojarski noted that each section of Chapter 6.04 – Development and Miscellaneous Fees, Permits and Charges needs to be updated to reflect the District’s current fee structure. Mrs. Bojarski stated that she will confirm if the charge of $12 dollars listed in segment (3) of Section 6.04.060. Permit Regulations is still correct. CAC Member Lester inquired if the District deposits fees into a separate account. Mr. Carroll stated that fees are placed in a restricted fund and can only be used for a specific purpose. Director Perry added that the Board of Directors gets a report a couple times a year regarding the fees that the District charges from the District Treasurer. Director Scheafer suggested revising segment (j) of Section 6.04.060. Permit Regulations to state “A or A++” rather than “A-VII.” Mrs. Bojarski noted that segment (c) of Section 6.04.070. Permit Charges needs to be updated to reflect the District’s current property address. CAC Member Lester asked if the District imposes penalties and surcharge fees to people or corporations that do not legally obtain a permit. Mr. Carroll confirmed that the District can impose penalties and surcharge fees and would send their Code Enforcement Officer to issue a citation. Director Scheafer discussed Section 6.04.140. Affordable Housing Priority. Policy Review Ad Hoc Committee Minutes January 30, 2020 Page 6 of 6 District resident, Jim Mosher, inquired about schools within the District’s service area being defined as public entities and recommended researching if that statement is correct. Mr. Carroll noted that the District will investigate the matter. Mr. Mosher stated that he does not completely understand the objective of the Committee. He commented that the Operations Code has not been systematically updated to identify where its various passages originated, and he recommends listing the history of each section. He noted that a review of this sort is well-intended but there are structural problems and that a few sections are duplicated in different language. Director Perry commented that the District is one out of a few agencies that reviews their documents on a periodic basis. The Committee discussed scheduling their next meeting and agreed to meet on Wednesday, February 19, 2020 at 8:00 a.m. There was no more discussion. 3. Adjournment - 9:28 a.m.