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2020_03_11_cac8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#1/28 Wednesday, March 11, 2020 Citizens Advisory Committee WHEN: Wednesday, March 11, 2020, 6:00 p.m. WHERE: Costa Mesa Sanitary District Headquarters 290 Paularino Avenue, Costa Mesa, CA 92626 CONTACT: Noelani Middenway, District Clerk PHONE: (949) 645-8400, Ext. 227 EMAIL: nmiddenway@cmsdca.gov A. OPENING ITEMS Subject 1. Call to Order Meeting Mar 11, 2020 - Citizens Advisory Committee Type 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#2/28 A. OPENING ITEMS Mike Carey, Chair Andrew Nielsen Elodie Katz Judith Gielow Judith Takaya Mike McIlroy Monte Fields Phil Marsh Sue Lester (2 Committee Member positions currently vacant) Subject 2. Roll Call Meeting Mar 11, 2020 - Citizens Advisory Committee Type Procedural 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#3/28 A. OPENING ITEMS Subject 3. Public Comments - Speakers will be limited to three minutes. The three minutes per speaker time allotted may be extended for good cause by a majority vote of the committee). Meeting Mar 11, 2020 - Citizens Advisory Committee Type Procedural 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#4/28 B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: March 11, 2020 Subject: Approve the Citizens Advisory Committee Meeting Minutes of January 8, 2020 Summary The recorded minutes of the January 8, 2020 Citizens Advisory Committee Meeting are hereby submitted to the Citizens Advisory Committee for review and approval. Analysis Attached to the staff report are the minutes for the Citizens Advisory Committee Meeting on January 8, 2020. Staff Recommendation That the Citizens Advisory Committee approves the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 11, 2020 Citizens Advisory Committee Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2020_01_08_cac.pdf (52 KB) Workflow Subject 1. Approve the Citizens Advisory Committee Meeting Minutes of January 8, 2020 Meeting Mar 11, 2020 - Citizens Advisory Committee Type Action, Minutes Recommended Action That the Citizens Advisory Committee approves the meeting minutes as presented. Workflow Mar 2, 2020 6:01 PM :: Submitted by Gina Terraneo. Routed to Noelani Middenway for approval. Mar 4, 2020 12:22 PM :: Final approval by Noelani Middenway 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#5/28 B. ITEM Board of Directors Regular Meeting (Monday, 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 I), Gina Terraneo (Management Analyst II & Acting District Clerk) Others present Yefim Tsalyuk (Robin B. Hamers & Associates, Inc.), Michael Benesh (Robin B. Hamers & 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. 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 II, 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 Subject 2. Approved Board of Directors Regular Meeting Minutes of January 27, 2020 Meeting Mar 11, 2020 - Citizens Advisory Committee Type Minutes, Receive and File 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#6/28 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 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 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 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#7/28 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. 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 7'x12' 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. 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#8/28 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. 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#9/28 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. 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#10/28 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. 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 limitation 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 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#11/28 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. 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 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#12/28 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 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 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#13/28 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. 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#14/28 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. Hamers. 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. 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#15/28 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. 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) 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. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#16/28 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 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. Workflow Workflow Mar 2, 2020 6:04 PM :: Submitted by Gina Terraneo. Routed to Noelani Middenway for approval. Mar 5, 2020 4:58 PM :: Final approval by Noelani Middenway 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#17/28 B. ITEM Board of Directors Regular Meeting (Monday, February 24, 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), Michael Benesh (Interim District Engineer) Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Nabila Guzman (Management Analyst I), Gina Terraneo (Management Analyst II & Acting District Clerk) Others present Judith Gielow (Citizens Advisory Committee Member, resident), Ryder Smith (Tripepi Smith), Michiko Soffer (resident), Shima Soffer Behrend (resident), 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. 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 II, 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. None at this time. Procedural: 6. Ceremonial Matters and Presentations None at this time. B. Public Comments Procedural: 1. Public Comments President Ferryman opened public comments. Seeing no one wishing to speak, he closed public comments. Subject 3. Draft Board of Directors Regular Meeting Minutes of February 24, 2020 Meeting Mar 11, 2020 - Citizens Advisory Committee Type Minutes, Receive and File 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#18/28 C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar 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 January 14, 2020 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 January 27, 2020 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action, Action (Consent): 5. Adopt Warrant Resolution No. CMSD 2020-08 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2020-08 approving District warrants for the month of January in the amount of $848,297.83. Action (Consent): 6. Payroll Transparency Disclosure for January 2020 Recommendation: That the Board of Directors approve and file the report. Action, Action (Consent): 7. Accept the occupancy count as presented as 22,926 and direct staff to prepare a warrant to CR&R Environmental Services for $237,593.60 for January 2020 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,926 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for January 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,593.60 to be ratified in the February 2020 warrant list. Action, Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the amount of $217,644.47 for January 2020 recycling and disposal services in the February 2020 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $217,644.47 for January 2020 recycling and disposal services to be ratified in the February 2020 warrant register. Action (Consent): 9. Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Investment Report for the Month of January 2020 Recommendation: That the Board of Directors approve the Investment Report for the month of January 2020. Motion: To approve the Consent Calendar as presented. Motion by Art Perry, 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. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS Action: 1. Reclassifying the Part-time Accounting Clerk Position to Full-time Status Recommendation: That the Board of Directors consider approving reclassifying the part-time Accounting Clerk position to full-time status. Finance Manager, Kaitlin Tran, provided report details. She explained that the Finance Department formerly consisted of 3 full-time positions (Finance Manager, Senior Accountant, and Administrative Assistant II), but due to unanticipated events, the department currently consists of a Finance Manager, Accountant, and part-time Accounting Clerk. She noted that it is challenging to keep up with department activities due to the District's growth over the last few years, and additional assistance is needed for completing accounts receivable, cash receipts, and general departmental support during staff absences. Ms. Tran shared that the Board of Directors is being asked to consider approving the reclassification of the part-time Accounting Clerk position to full-time status. She added that, if approved, the recruitment will begin in March 2020 and the selected 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#19/28 candidate will have a target start date in May 2020. She noted that there are sufficient funds in the Solid Waste and Wastewater Funds to cover May through June of 2020; however, a budget adjustment would be needed to cover the fully burdened cost of $74,500 in Fiscal Year 2020-2021. Motion: To approve reclassifying the part-time Accounting Clerk position to full-time status. Motion by Bob Ooten, second by Arlene Schafer. Director Perry inquired about the salary range of the Accounting Clerk position. Ms. Tran noted that the salary range was not included in the staff report, but staff can provide this information shortly. Secretary Schafer asked if District staff compared the salary range with similar positions at other agencies. Ms. Tran noted that a Classification and Compensation Study was completed in April of 2019, and this Study was used to determine the salary range for the position. Director Perry requested that District staff provide the proposed salary range for the position before the Board takes its vote on this item. Director Scheafer commented that not many people are looking for part-time work, so it may be difficult to recruit for a part- time Accounting Clerk. He asked if the part-time and full-time Accounting Clerk positions have any differences in their required education and experience level. Ms. Tran noted that there is no difference between these requirements for the part-time and full-time positions. Director Scheafer inquired whether the position needs to become a Certified Public Accountant (CPA). Ms. Tran noted that the District encourages professional development, but it does not require the candidate to be a CPA. Discussion followed regarding the position's duties and the potential impact of increased development in Costa Mesa. Vice President Ooten confirmed that the part-time Accounting Clerk position is currently vacant. President Ferryman continued on to Item E2 in order to give District staff some time to locate the proposed salary range for the full-time Accounting Clerk. He stated his intent to return to this item later in the meeting. Action: 2. Refund of Wastewater and Solid Waste Assessment - APN 422-102-09 Bernard Street Recommendation: That the Board of Directors provide direction to staff on a refund for APN 422-102-09. Management Analyst I, Nabila Guzman, shared that the Board of Directors previously received a request from Mrs. Mochiko Soffer to obtain a refund for overpaid solid waste and wastewater assessment fees. She noted that Mrs. Soffer's property was incorrectly classified as a 3-unit multi-family property by the City of Costa Mesa and was charged accordingly for at least 15 years. Ms. Guzman explained that Mrs. Soffer's previous request did not specify the number of years for which she was requesting a refund; however, she recently submitted a request for 20 years of overpaid assessment fees and provided copies of paid property taxes for all 20 years. She noted that the staff report includes a breakdown of the overpayment, totaling $1,264.15 for wastewater assessments and $8,825.00 for solid waste assessments. Director Perry expressed concern regarding potential litigation due the language in the letter attached to the staff report. District Counsel, Alan Burns, noted that the law and District policy provides for refunds limited to 180 days for overpaid wastewater assessments and 1 year for overpaid solid waste assessments. He noted that the Board saw fit to waive this policy to refund Mr. Michael Brick for overpaid wastewater assessments due to extenuating circumstances during the previous Board Meeting. General Manager, Scott Carroll, commented that the Board approved Mr. Brick's request because it was deemed to be a property classification error made by District staff. Additionally, he commented that Mrs. Soffer’s classification error was made by the City of Costa Mesa, and therefore is not the District's responsibility to refund. Mr. Burns commented that the Board has solid legal grounds to deny this request. He noted that if the Board decides to approve this request, they must make a finding to explain why the statute of limitation is being waived. Director Perry asked if the City of Costa Mesa staff was working on behalf of the District during the time period when the misclassification error was made. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#20/28 Mr. Burns commented that the staff responsible for classifying properties would likely have been in the City of Costa Mesa's planning department (not District staff). He added that District staff relied upon the City of Costa Mesa's data to collect assessments. Director Scheafer verified that Mr. Brick was refunded for a total of 14 years for wastewater assessments. Director Perry commented that the District should pay back the amount owed to Mrs. Soffer for the past 20 years, since the District refunded Mr. Brick for the amount he requested. He noted that he did not vote in favor of the refund given to Mr. Brick, but he explained that since Mr. Brick's request was granted, he believes the Board should refund Mrs. Soffer also. Motion: To provide a refund for 20 years of overpaid solid waste and wastewater assessments for APN 422-102-09 in the amount of $10,089.15. Additionally, the Board of Directors made a finding that the property owner faced extenuating circumstances due to the property being misclassified by the City of Costa Mesa as a 3-unit multi-family property (when it was in fact a single family property), which resulted in an overpayment of assessments to the District. Director Scheafer commented that the Board set a precedent with the approval of Mr. Brick's refund. He commented that he believes that ratepayers have a responsibility to monitor their rates, but he noted that there were no significant spikes in Mrs. Soffers' rates that would have indicated that she was overpaying. He noted that the District is responsible for the charges, since the District collected the payments. Secretary Schafer asked if District staff contacted the City of Costa Mesa regarding this matter. Ms. Guzman noted that District staff contacted the City to verify the incorrect classification of the property. She added that the City has not changed their classification of this property, but the District has updated the property information in its system. Director Perry reiterated that it is the District's obligation to pay Mrs. Soffer back, regardless of whether the misclassification was made by the City of Costa Mesa. Director Scheafer requested that District staff bring back a policy to address the statute of limitation for refunds for overpaid assessments. Mr. Burns noted that there is a policy in place already and the Board would be waiving the policy if they approve this refund in the full amount. Director Scheafer confirmed that the Board also has the option of abiding by the aforementioned statute of limitation. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Scheafer confirmed that District staff will contact the applicant and provide the refund payment. Shima Soffer Behrend, the daughter of the refund requester, thanked the Board of Directors for their decision. There was no further discussion. Action: 1. Reclassifying the Part-time Accounting Clerk Position to Full-time Status (continuation) Recommendation: That the Board of Directors consider approving reclassifying the part-time Accounting Clerk position to full-time status. President Ferryman returned to Item E1. Ms. Tran shared that the salary range for the full-time Accounting Clerk is $48,984-$66,128, not including benefits. She provided copies of the salary schedule to the Board of Directors, District staff, and the public. Director Perry inquired about the cost of benefits. Ms. Tran noted that benefits would be about 30-35% of the salary. Discussion followed regarding the salary range for the Accounting Clerk position. Motion: To approve reclassifying the part-time Accounting Clerk position to full-time status. 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 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#21/28 There was no further discussion. Action: 3. Award the Communications Support and Strategy RFP Recommendation: That the Board of Directors: 1) Approve budget adjustments in the amount of $28,000 in the Solid Waste Fund and $47,000 in the Wastewater Fund; and 2) Authorize the General Manager to enter into an agreement with Tripepi Smith. Ms. Guzman shared that the Solid Waste Ad Hoc Committee and District staff are recommending that the firm Tripepi Smith be awarded a contract for communications support and strategy services. She explained the request for proposal process, during which applicants submitted proposals and underwent interviews with the Solid Waste Ad Hoc Committee. Ms. Guzman noted that the top 3 rated firms were asked for updated 12-month cost proposals in response to a revised scope of services, and Tripepi Smith's total project cost came to $94,000 (with an optional add-on of website design and support services for $30,605). She added that CR&R agreed to contribute $19,000 toward the cost of this project, and that District staff is proposing to use savings found in the Solid Waste and Wastewater Funds to fund this contract. Director Perry inquired about CR&R's contribution. Ms. Guzman noted that CR&R's contribution is separate from their annual contribution toward solid waste education and outreach. Discussion followed regarding CR&R's contribution. Director Perry inquired about Tripepi Smith's location. Ms. Guzman noted that Tripepi Smith is based in Tustin, CA. Vice President Ooten indicated support for District staff's recommended action. He commented that the District has not been very successful in getting residents to participate in its solid waste programs, and that the firm can help the District communicate its focuses more effectively. He suggested that District staff find out what CR&R wants in exchange for their contribution toward the project, and he requested that the firm create a detailed work plan to achieve District goals. Vice President Ooten commented that he is not interested in redesigning the District's website yet, and would prefer that the firm focus on the communications efforts for the Organics Recycling Program. Ryder Smith, President of Tripepi Smith, introduced himself and noted that he is available to answer questions. Director Scheafer noted that Tripepi Smith was not initially the Solid Waste Ad Hoc Committee's recommended firm; however, District staff revised the scope of services and Tripepi Smith provided the best revised cost proposal in response to the revised scope. He noted that the firm that was initially recommended (JPW Communications) submitted a revised cost proposal that nearly tripled their original cost proposal. He added that Tripepi Smith is more local to the District than the other firms, and he indicated agreement with recommending Tripepi Smith. Director Perry inquired about the revised scope of services. Director Scheafer noted that the revised scope was more focused and provided specific tasks for the firms. He noted that the Solid Waste Ad Hoc Committee's recommendation was unanimous and he commended Citizens Advisory Committee Members Elodie Katz and Monte Fields for their input on this matter. Director Perry asked if the Solid Waste Ad Hoc Committee will continue meeting. Director Scheafer noted that he asked District staff to schedule a special meeting for Tripepi Smith to present to the Board of Directors. Vice President Ooten noted that the Committee was developed to discuss diversion strategies and solid waste related issues. Secretary Schafer commented that she would like the firm to help the District become better known in the community. Motion: To approve budget adjustments in the amount of $28,000 in the Solid Waste Fund and $47,000 in the Wastewater Fund, and authorize the General Manager to enter into an agreement with Tripepi Smith. 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: 4. Provide Direction Regarding Termination Provision of District Engineer Agreement 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#22/28 Recommendation: That the Board of Directors provide direction to staff. Mr. Carroll provided an overview of the District's history with Robin B. Hamers & Associates (RBH) and noted that the District's 2009 contract with RBH includes a six-month termination clause. He explained that District staff is proposing an amendment to update the termination clause to a 30-day termination clause. He noted that the current President of RBH (since Rob Hamers' passing), Michael Benesh, does not agree with the proposed amendment and requests that the terms of the 2009 contract continue to apply to him. Mr. Carroll noted that the Board of Directors directed staff to allow RBH to continue providing District Engineering services for a period of 6 months, at which time District staff will report back regarding the services. He noted that District staff is recommending that the Board either approve proposed Amendment No. 3 or approve giving RBH a 6-month notice of termination now (based upon the terms of the 2009 agreement), which will allow the Board to re-evaluate whether they would like to terminate services in 6 months or create a new agreement with RBH in 6 months. Vice President Ooten commented that he believes the Board has the appropriate authority to terminate or limit RBH's services under the existing 2009 contract. He indicated that he does not support making any changes to the contract. Mr. Burns reiterated that giving a 6-month notice of termination now allows the Board the option to decide in six months whether they would like to continue receiving engineering services through RBH through a new contract, or terminate the contract at that time. Director Perry indicated agreement with Vice President Ooten. Secretary Schafer noted that if the Board does not give the 6-month notice of termination now and become dissatisfied with RBH after the 6 month trial period, the District would still be required to pay RBH's last 3 month's billings according to the 2009 contract. Vice President Ooten commented that this payment serves as a severance payment. Mr. Carroll clarified that Vice President Ooten was referring to the Board's authority to determine whether RBH is awarded capital improvement project contracts, but he noted that District staff's recommendations are in reference to District Engineering services (which are different from capital improvement project contracts). He noted that a 30-day termination clause is standard among District contracts. Mr. Burns noted that when the Board of Directors gave District staff direction to alter the District's inspection services under RBH's 2009 contract, Mr. Hamer's challenged the District's right to reduce these services under this contract. He strongly suggested that the Board approve one of District staff's recommendations in order to allow the District to negotiate from a position of strength. He commented that the 6-month termination clause is generous compared to industry standards, and he noted that he and the District Treasurer both have 30-day termination clauses in their contracts. RBH President and Interim District Engineer, Michael Benesh, commented that when he agreed to continue providing District Engineering services, he agreed to abide by the 2009 contract. He added that he is happy to do what the Board wants, but he believes there should be some discussion. Director Scheafer commented that from a consistency and transparency standpoint, he supports implementing a 30-day termination clause through the proposed amendment. He commented that ratepayers will ask why the District's contracts are not consistent. He added that he believes the 30-day termination clause should have applied to Mr. Hamers also. Discussion followed regarding the process for sending a notice of termination. Mr. Burns asked if Mr. Benesh is willing to agree to the 30-day termination clause. Mr. Benesh responded that he is willing to agree to the 30-day termination clause; however, if the contract is being renegotiated, he would like to discuss other terms as well. Vice President Ooten suggested referring this item to the next Study Session. He commented that the District is moving slow with capital improvement projects currently. President Ferryman commented that the District should give RBH time to get back to its regular pace. Mr. Burns noted that it may be premature to get a new contract written and agreed upon before the 6-month trial period is complete. Mr. Carroll reiterated the recommendations to either give RBH a 6-month notice of termination now or approve the proposed amendment to implement a 30-day termination clause. 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#23/28 Director Scheafer requested clarification regarding the recommendation stated in the staff report. Mr. Burns suggested that the District give RBH a 6-month termination notice now, so that the Board has the right to either terminate services after 6 months or develop a new contract after 6 months. Director Scheafer expressed that he finds the recommendation confusing. Mr. Carroll noted that the Board does not have to provide direction based on staff's recommendations. Motion: To issue a 6-month notice of termination to Robin B. Hamers & Associates (RBH) in order to allow the District to evaluate RBH over the course of a 6-month trial period and determine whether engineering services will continue or terminate at the end of the 6-month trial period. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer No: Art Perry There was no further discussion. F. 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. There was no discussion and the report was received. Receive and File: 2. Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 396 E. 21st St. (Mobile Homes) – Peter Zehnder Recommendation: That the Board of Directors receive and file the report. Motion: To approve the Declaration of Conflict of Interest. 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. Receive and File: 3. Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 126 E. 22nd St., Costa Mesa – St. Mary Armenian Apostolic Church LLC Recommendation: That the Board of Directors receive and file the report. Motion: To approve the Declaration of Conflict of Interest. 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. G. TREASURER'S REPORTS Nothing to report. H. ATTORNEY'S REPORTS Nothing to report. 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 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#24/28 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. 1. Orange County Sanitation District (OCSD) - (President Ferryman) President Ferryman shared that he attended an OCSD Committee Meeting. He noted that the mid-year financial report was approved. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry noted that there was no SARFPA meeting this month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer shared about the presentation on voting during the last ISDOC Quarterly Meeting. She added that Vicki Osborn, the Director of Emergency Management for the Water Emergency Response Organization of Orange County (WEROC), also attended the meeting. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared that CSDA announced that the annual conference will be held in Indian Wells in August. She noted that she will be going to Sacramento for a Legislative Committee Meeting in March. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Director Scheafer shared that he attended the SDRMA meeting, and he noted that SDRMA's Chief Financial Officer resigned. He noted that he will be attending the SDRMA conference in Monterey. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Perry noted that he attended the Water Advisory Committee of Orange County (WACO) Meeting where they discussed sewer capacity for Costa Mesa's new developments. He added that he attended the Costa Mesa City Council Meeting where they discussed allowing push cart food vendors. He requested that this subject be addressed during the next Liaison Committee Meeting. 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 Ferryman shared that he read an interesting article regarding the use of wind turbines to generate electricity in the Cities of Portland and Riverside. He requested District staff's assistance with getting in contact with the City of Riverside to learn more about this project. M. ADJOURN TO CLOSED SESSION President Ferryman adjourned the meeting to closed session at 5:55 P.M. to discuss the following: CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION (Government Code Section 54956.9(d)(1) Steve Hodges v. Costa Mesa Sanitary District, Scott Carroll OCSC # 30-2019-01102477-CU-OE-CJC 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#25/28 N. RECONVENE TO OPEN SESSION AND REPORT OF ACTION TAKEN President Ferryman reconvened the meeting to open session at 6:05 P.M. and reported that the Board of Directors voted to waive any conflict, of positive or negative interest, and to have the same firm represent the General Manager and the Board in Steve Hodges v. Costa Mesa Sanitary District, Scott Carroll OCSC # 30-2019-01102477-CU-OE-CJC. O. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting at 6:06 P.M. Workflow Workflow Mar 2, 2020 6:07 PM :: Submitted by Gina Terraneo. Routed to Noelani Middenway for approval. Mar 5, 2020 4:58 PM :: Final approval by Noelani Middenway 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#26/28 B. ITEM To: Citizens Advisory Committee From: District Clerk & Public Information Officer, Noelani Middenway Date: March 11, 2020 Subject: Recognition of Citizens Advisory Committee Members Completing 2018-2020 Term - Oral Report Summary On October 26, 2017, the Board of Directors approved the formation of a Citizens Advisory Committee (CAC) to give citizens within the District’s service area an opportunity to become more involved in the community by advising the Board of Directors on key issues. The CAC provides recommendations to the Board of Directors and District staff, evaluates the effectiveness of current programs and policies, and assists in formulating new programs and policies. It consists of up to 11 members that are appointed by the Board of Directors and serve a staggered 2-year term. Members discuss pressing topics and key issues in the world of special districts. Analysis Tonight's meeting marks the end of the 2018-2020 term served by the following CAC Members: Mike Carey, CAC Chair Elodie Katz, CAC Member Phil Marsh, CAC Member Mike McIlroy, CAC Member Andrew Nielson, CAC Member CMSD's Board of Directors would like to invite the aforementioned CAC Members to this month's Board Meeting on March 23, 2020 at 4:30 p.m. to be formally recognized for their service to the community and the District. Upon completion of the 2018-2020 term, there will be 7 vacant seats on the CAC. Recommendation That the Citizens Advisory Committee recognizes members who completed the 2018-2020 term, including Chair Carey and Members Katz, Marsh, McIlroy, and Nielson. Legal Review Not applicable. Environmental Review Recognizing CAC Members is an administrative matter and are not a disturbance of the environment similar to grading or construction and therefore this item is not a project under CEQA or the District’s CEQA Guidelines. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 11, 2020 Citizens Advisory Committee Meeting at CMSD headquarters and on CMSD's website at www.cmsdca.gov. Alternative Actions Not applicable. Workflow Subject 4. Recognition of Citizens Advisory Committee Members Completing 2018-2020 Term - Oral Report Meeting Mar 11, 2020 - Citizens Advisory Committee Type Discussion Workflow Mar 4, 2020 6:05 PM :: Submitted by Gina Terraneo. Routed to Noelani Middenway for approval. Mar 5, 2020 4:10 PM :: Final approval by Noelani Middenway 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#27/28 C. CLOSING ITEMS Subject 1. Committee Member & Staff Comments Meeting Mar 11, 2020 - Citizens Advisory Committee Type Procedural 8/10/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public#28/28 C. CLOSING ITEMS The next Citizens Advisory Committee Meeting is scheduled for Wednesday, May 13, 2020 at 6:00 p.m. in the Costa Mesa Sanitary District boardroom, located at 290 Paularino Avenue, Costa Mesa. Subject 2. Adjournment Meeting Mar 11, 2020 - Citizens Advisory Committee Type Procedural