Loading...
Minutes - Board - 2020-08-24COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING AUGUST 24, 2020 Note: This meeting was conducted utilizing teleconferencing pursuant to Government code Section 54952.2 and the Governor's Executive Orders in effect waiving some of the requirements of that Section. Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Alan Burns (District Counsel), Marc Davis (District Treasurer), Michael Benesh (Interim District Engineer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II) Others present Chris Newton (California Water Environment Association Santa Ana Rivers Basin Section President) Judith Gielow (Citizens Advisory Committee Member and District resident) Jim Mosher (District 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: 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.) COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 District Clerk and Public Information Officer, Noelani Middenway, conducted roll call and noted that President Ferryman, Vice President Ooten, Secretary Schafer, Director Scheafer, and Director Perry were present at this time. 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, stated that the District received late communications from District resident, Jim Mosher. He added that the written communications have been provided to the Board. He shared that District staff will address Mr. Mosher's comments during the meeting. Director Scheafer inquired about how the District archives public comments. Ms. Middenway stated that all public comments are archived and included with each agenda packet. There was no further discussion. B. Ceremonial Matters and Presentations Presentation: 1. Award Recognition from the Santa Ana Rivers Basin Section (SARBS) of the California Water Environment Association (CWEA) for Community Engagement and Outreach Program of the Year — Citizens Environmental Protection Academy. Presented by Chris Newton, SARBS President, South Coast Water District. Mr. Carroll introduced CWEA SARBS President, Chris Newton, to present the award. Mr. Newton presented the District with the second place award for Community Engagement and Outreach Program of the Year for the Citizens Environmental Protection Academy (CEPA). He noted that, typically, SARBS presents awards at their annual banquet, but they are unable to do so this year due to the COVID-19 pandemic. He congratulated the District on their award. Secretary Schafer suggested announcing the award in the District Newsletter. She recommended sharing the news with the Daily Pilot newspaper. Mr. Carroll stated that the District has posted the award on its social media platforms. He noted that he will strategize other avenues to announce the award to the public. Vice President Ooten shared that he was a past President of SARBS and CWEA. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 President Ferryman and Director Scheafer congratulated the District on their success. Mr. Carroll thanked Mr. Newton for the award and offered his appreciation to the District's Wastewater Maintenance Superintendent, Steve Cano, for his participation in SARBS. There was no further discussion and the presentation was received. A. OPENING ITEMS 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. B. Ceremonial Matters and Presentations Presentation: 2. Award for Outstanding Achievement in Popular Annual Finance Reporting from the Government Finance Officers Association for its Annual Financial Report for Fiscal Year Ended June 30, 2019. Mr. Carroll stated that the District earned the Certificate of Excellence from the Government Finance Officers Association (GFOA) for Outstanding Achievement in Popular Annual Financial Reporting (PAFR). He noted that the PAFR is a condensed version of the Comprehensive Annual Financial Report (CAFR). He shared that this is the fourth time the District has received this award. He thanked the District's Finance Department for their hard work. He added that the PAFR promotes transparency and informs the public about how much money a government agency spends each year. He noted that very few special districts prepare a PAFR. There was no further discussion and the presentation was received. C. Public Comments Procedural: 1. Public Comments President Ferryman opened public comments. Ms. Middenway stated that Mr. Mosher would like to make a public comment. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 Mr. Mosher discussed his written comments regarding a public outreach issue concerning low levels of citizen involvement with District elections, particularly due to the lack of election information on the District's website. He added that the District divisions are not clearly presented on the District website and that users are not able to determine which divisions are currently up for election this fall. He stated that the website does not provide the names of the candidates of each division election. He noted that the webpage directs users to the Orange County Registrar's website for election information. He stated that publishing more details regarding District elections will increase the District's level of transparency. Mr. Carroll addressed Mr. Mosher's comments. He stated that the District is in the process of updating their website to include more election information. Director Scheafer stated that the District needs to be cautious about disseminating election information and ensure that the District is not giving preferential treatment to any candidates. He recommended only including the name of each candidate within each District division. Mr. Carroll noted that all candidates will be treated equally. There was no further discussion. D. 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 July 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 July 27, 2020 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 Action (Consent): 5. Adopt Warrant Resolution No. CMSD 2021-02 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2021-02 approving District warrants for the Month of July in the amount of $1,409,430.02. Action (Consent): 6. Approve Payroll Transparency Disclosure for July 2020 Recommendation: That the Board of Directors approve and file this report. Action (Consent), Minutes: 7. Accept the occupancy count as presented as 22,982 and direct staff to prepare a warrant to CR&R Environmental Services for $238,173.96 for July 2020 collection Recommendation: That the Board of Directors accepts the occupancy count as presented using 22,982 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for July 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,173.96 to be ratified in the August 2020 warrant list. Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the amount of $256,062.96 for July 2020 recycling and disposal services in the August 2020 warrant register. Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $256,062.96 for July 2020 recycling and disposal services to be ratified in the August 2020 warrant register. Action (Consent): 9. Receive and File Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Approve the Investment Report for the Month of June 2020 Recommendation: That the Board of Directors Approve the Investment Report for the month of June 2020. Action (Consent): 11. Approve the Investment Report for the Month of July 2020 Recommendation: That the Board of Directors approve the Investment Report for the month of July 2020. Motion: To approve the Consent Calendar as presented. Motion by Arlene Schafer, 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. E. PUBLIC HEARINGS None at this time. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 F. GENERAL MANAGER'S REPORTS Action: 1. Adopt Resolution No. 2020-932 Endorsing the Candidacy of Arlene Schafer to the position of 1 st Vice President of the Independent Special Districts of Orange County (ISDOC) Executive Committee Recommendation: That the Board of Directors adopt Resolution No. 2020-932 endorsing the candidacy of Arlene Schafer to the position of 1 St Vice President of the Independent Special Districts of Orange County (ISDOC) Executive Committee. Motion: To adopt Resolution No. 2020-932 endorsing the candidacy of Arlene Schafer to the position of 1 st Vice President of the Independent Special Districts of Orange County (ISDOC) Executive Committee. 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: 2. Consider Adopting Ordinance No. 131 Adopting Revisions to the Operations Code, Resolution No. 2020-933 Approving the Employee Handbook, Resolution No. 2020-934 Approving Administrative Policies, and Resolution No. 2020-935 Adopting Board of Directors Procedures Handbook Recommendation: That the Board of Directors take the following action: 1. Adopt Ordinance No. 131 — Revised Operations Code in its entirety. 2. Adopt Resolution No. 2020-933 — Revised Employee Handbook in its entirety. 3. Adopt Resolution No. 2020-934 — Revised Administrative Policies in its entirety. 4. Adopt Resolution No. 2020-935 — Board of Directors Procedures Handbook in its entirety. Mr. Carroll discussed the Board of Directors Procedures Handbook. He noted that page four of the handbook details how to place an item on the agenda. He added that this policy is consistent with the District's Operations Code. He discussed the process for a member of the public to request to place an item on the agenda. He stated that the District requires 14 working days in advance notice, which equates to about three weeks before a meeting. He inquired if the Board would like to change the number of days required for advance notice. Director Perry suggested changing the policy to nine working days. District Counsel, Alan Burns, requested to discuss each item as it is presented on the agenda. He introduced Ordinance No. 131. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 Mr. Mosher commented that the District needs to clarify the purpose of the Operations Code. He noted that the Code states that it does not repeal any ordinances. He inquired about the amount of time an ordinance remains in effect. Mr. Burns discussed Mr. Mosher's comment regarding the General Manager's authority to issue administrative policies. He stated that, for the General Manager to issue an administrative policy, the policy must be minor in significance and cannot involve compensation. He discussed Mr. Mosher's comments regarding the Operations Code. He stated that the District's Operations Code is a compilation and codification of District ordinances. He noted that the Board is adopting the current Operations Code to supersede the previous version. He confirmed that the Operations Code states that it does not repeal any ordinances and noted that the District has ordinances that are not codified. Secretary Schafer inquired about how frequently the District is required to review its Operations Code. Mr. Carroll stated that there is no law requiring the District to review and update its Operations Code. He added that the District reviews the Operations Code every two years in order to maintain its status as a District of Distinction with the Special Districts Leadership Foundation. Secretary Schafer suggested including the timeframe of review in the Operations Code. Mr. Carroll noted that District staff can include language addressing the review process in the Operations Code. Mr. Mosher stated that he requests for the Board to adopt the revised Operations Code with its revisions highlighted. He added that professional codifiers indicate revisions, so the public is aware of the origin of each section, the approved changes made to each section, and the notations associated. Mr. Burns inquired about whether the District Clerk currently performs that function. Ms. Middenway confirmed that the District adopts a version that highlights the approved revisions. Motion: To adopt Ordinance No. 131 adopting revisions to the Operations Code. 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 Motion: To adopt Resolution No. 2020-933 approving the Employee Handbook. Motion by Art Perry, second by Bob Ooten. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Motion: To adopt Resolution No. 2020-934 approving Administrative Policies. 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 Mr. Carroll introduced the Board of Directors Procedures Handbook. Mr. Burns reviewed Mr. Mosher's comment regarding the classification of Study Session meetings as regular meetings or special meetings. He stated that, in the past, Study Session meetings were considered special meetings and scheduled as needed. He noted that, currently, the Study Sessions are scheduled on a regular date and time of each month. He added that regular meetings require the agenda to be posted 72 hours in advance, while special meetings require a 24 hours advance notice. Secretary Schafer commented that special meetings allow Board members to hold a vote for certain matters, while Study Session meetings are for discussion. Vice President Ooten stated that he considers Study Session meetings to be regular meetings. He noted that the Board typically does not act on Study Session agenda items, but they can do so in the case of emergencies. President Ferryman added that the Board has occasionally acted on Study Session agenda items, but not on a regular basis. He inquired about the main difference between special and regular meetings. Mr. Burns confirmed that the notice period for posting the agenda is the main difference. Vice President Ooten stated that if Study Session meetings are considered special meetings, then the District will be required to post the agenda 24 hours prior to the meeting date and time. He noted that District staff typically posts a meeting agenda on the Friday before a Study Session meeting. Director Perry asked Ms. Middenway if the District has been posting the agenda for Study Session meetings 72 hours prior to the meeting date. Ms. Middenway confirmed that Study Session agendas are posted as a regular meeting with 72 hours advance notice. Mr. Burns noted that, by considering Study Session meetings to be regular meetings, the Board may schedule a special meeting on the same day as a Study COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 Session meeting. He added that the Board may act on Study Session agenda items, unless the items pertain to an executive's compensation. The Board confirmed that they consider Study Session meetings to be regular meetings. Mr. Carroll noted that District staff will update the Board of Directors Procedures Handbook. Director Scheafer inquired about how Citizen Advisory Committee (CAC) meetings are identified. Mr. Carroll stated that the CAC Handbook identifies that CAC meetings comply with the Brown Act and are posted 72 hours prior to the meeting date. Director Scheafer requested that the CAC Handbook clarifies how many Board members may attend a CAC meeting. Mr. Carroll noted that he will update the CAC Handbook accordingly. Director Perry stated that only two Board members may attend a CAC meeting. Mr. Mosher stated that he supports the Board of Directors Procedures Handbook policy that allows members of the public to pull items off of the consent calendar, but he does not support the policy that reduces the time for public comments from four minutes to three minutes. He suggested that, if the adoption of the Handbook is not urgent, then he proposes allowing the CAC to review it and submit comments. Mr. Burns responded to Mr. Mosher's comments. He stated that he is not aware of the purpose behind reducing the time for public comments from four to three minutes. He commented that four minutes is an appropriate amount of time. He recommended leaving the policy that addresses adding items to a meeting agenda as is. He discussed Mr. Mosher's comment concerning conflict of interest and recusal. He reviewed Mr. Mosher's comment regarding the subject matter that is disclosed during closed session. He noted that the District is required to provide the public with certain information pertaining to what is being discussed during closed session. He addressed Mr. Mosher's comment regarding disciplinary action against a board member during closed session, which he noted is not allowed and is to be done in open session. He added that only public employees can be disciplined during closed session under certain limited circumstances. Mr. Carroll requested clarification about allowing members of the public to place items on a meeting agenda. He stated that currently, members of the public are required to submit their agenda item 14 working days in advance. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 Director Perry inquired if the District has ever had a member of the public request to place an item on a meeting agenda. Mr. Carroll stated that he does not recall ever receiving that type of request. Director Perry suggested revising the timeframe of 14 working days to 9 working days. Vice President Ooten recommended adjusting the timeframe to be in accordance with the agenda review meetings, which take place on the first Monday of each month. Director Perry expressed support for Vice President Ooten's recommendation. Mr. Carroll suggested revising the policy to require members of the public to submit agenda items nine days prior to the first Monday of each month. Director Perry noted that this revision is consistent with the policy set for Board members placing an item on an agenda. Vice President Ooten added that the Board President, District management, District Counsel, and the District Treasurer are present at the agenda review meetings. Mr. Carroll inquired about whether the Board would prefer to have the CAC review the Board of Directors Procedures Handbook before approval. Director Perry recommended for the Board to approve of the Handbook tonight. Director Scheafer stated that CAC members were present at the Policy Review Ad Hoc Committee meetings to provide input and review District policies. Also, he noted that the Board recommended changing the allotted time for public comments from four minutes to three minutes to be consistent with other local municipalities. Mr. Carroll stated that because the District does not receive a large amount of public comments at District meetings, it is not an issue to have four minutes remain as the allotted amount of time. Director Scheafer stated that the public can request additional time while addressing the Board during public comments. Secretary Schafer expressed support for Director Scheafer Is statement. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 Motion: To adopt Resolution No. 2020-935 — Board of Directors Procedures Handbook in its entirety with the recommended revisions. Motion by Mike Scheafer, 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. G. TREASURER'S REPORTS None at this time. H. ATTORNEY'S REPORTS Discussion: 1. Approve Easement Agreement with PT Fairway Villas, LLC for relocation of a sewer easement near the intersection of Santa Ana Avenue and Orchard Drive in the City of Newport Beach Recommendation: That the Board of Directors approve the Easement Agreement. Mr. Burns introduced report details. He stated that, during the construction process, PT Fairway Villas relocated a sewer line from one location to another within their property. He added that the relocation was approved by the District Engineer who, at the time, was Rob Harriers. He discussed Mr. Mosher's comments regarding the consideration of the agreement. He noted that the consideration involves the new easement and the relinquishment of the old easement. He stated that the law requires a consideration for the transfer of a contract or piece of land. Motion: To approve the Easement Agreement with PT Fairway Villas, LLC for relocation of a sewer easement near the intersection of Santa Ana Avenue and Orchard Drive in the City of Newport Beach. 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. 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. Interim District Engineer, Michael Benesh, introduced the Capital Improvements Project Status report. He stated that the request for proposals for smoke testing at COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 the Orange County Fairgrounds property was issued last month and will be opened on Wednesday, August 26, 2020. He added that the notice for bids for the President Pump Station reconstruction was issued two weeks ago and will be opened in September. There was no further discussion and the report was received. I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day's service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ferryman and Vice President Ooten) President Ferryman provided meeting details. He stated that the Borders Committee meeting reviewed plans for the San Diego Association of Governments (SANDAG) transportation issues, a new operating system and sprint planning. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry stated that there was no SARFPA meeting this month. He noted that he provided a written review of other local meetings with his District compensation report. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer stated that ISDOC is deciding on holding a slate election or an alternative form. Director Perry discussed legislative bills including Senate Bill 1386 and House of Representatives bill 7073 and requested that staff research and offer support. He discussed ISDOC's financial report, which had a significant balance of $12,964. Secretary Schafer noted that the balance might be applied to a lunch for ISDOC members or membership dues. Director Perry and Secretary Schafer stated that it should be applied to reduced membership fees. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 24, 2020 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Vice President Ooten commented on District Zoom meetings. He stated that responses from individuals are delayed and create an echo through the speakers. He suggested that only one Board member states the Pledge of Allegiance on behalf of the entire Board. There was no further discussion. M. ADJOURN TO CLOSED SESSION President Ferryman adjourned the meeting to closed session at 5:39 p.m. Discussion: 1. Confer with Legal Counsel - Anticipated Litigation - Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9 (1 Case) The facts and circumstances that justify the closed session are set forth in the Notice of Violation and Intent to Sue Under the Federal Water Pollution Control Act (Clean Water Act) dated May 6, 2020 sent by Attorney Jack Silver on behalf of California River Watch, which is available for public inspection. (See Gov C §54956.9(e)(3).) N. RECONVENE TO OPEN SESSION AND REPORT OF ACTION TAKEN 1. Announce any reportable action taken in closed session. President Ferryman reconvened to open session at 5:58 p.m. and reported that no action was taken during closed session. O. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting at 5:59 P.M. Arlene Schafer Secretary Jams erryman Presi nt