02 - MINUTES BOARD OF DIRECTORS 2012-10-25
C OSTA M ESA S ANITARY D ISTRICT
M INUTES OF B OARD OF D IRECTORS R EGULAR M EETING
O CTOBER 25 , 2012
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I. C ALL TO O RDE R
The Board of Directors of the Costa Mesa
Sanitary District met in reg ular session on
October 25 , 2012 at 5:3 0 p.m. at 628 W. 19 th
Street, Costa Mesa.
II. P LEDGE OF
A LLEGIANCE
President Ooten led the Pledge of
Allegiance.
III. I NVOCATION
Director Scheafer led the Invocation.
IV. R OLL C ALL
D IRECTORS P RESENT : Robert Ooten, James Ferryman, Jim
Fitzpatrick, Art Perry, Mike Scheafer
D IRECTORS A BSENT : None
S TAFF P RESENT : Scott Carroll, General Manager; Anna
Sanchez, Administrative Service Manager;
Noelani Middenway, Deputy District Clerk;
Robin B. Hamers, District Engineer; Ala n
Burns, District Counsel; Marc Davis , District
Treasurer; Teresa Gonzalez, Accounting
Manager ; Javier Ochiqui, Management
Analyst
O THERS P RESENT : Dean Ruffridge, CR&R , Lawrence Jones,
CR&R; Debbie Morris, HF&F
V. C EREMONIAL M ATTERS A ND P RESENTATIONS - None
VI. A NNOUNCEMENT OF L ATE C OMMUNICATIONS - None
VII. P UBLIC C OMMENTS - None
VIII. C ONSENT C ALENDAR
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R EPORTS
A. M INUTE A PPROVAL
1. Board of Directors Minutes of Special
Meeting dated September 11, 2012
The minutes of the September 11, 2012,
Bo ard of Directors Special Meeting were
approved as presented.
2. Operations Committee Minutes of
September 18, 2012
The minutes of the Operations Committee
Meeting of September 18 , 2012, were
approved as presented.
3. Board of Directors Minutes of
Septe mber 20, 2012
The minutes of the Board of Directors
Meeting of September 20, 2012, were
approved as presented.
B. F INANCIAL R EPORTS
4. Occupancy Report and payment to
Costa Mesa Disposal – October 2012
The Occupancy Report and payment to
Costa Mesa Di sposal for October 2012, was
approved as submitted.
5. Contract Payment to CR Transfer for
Recycling Services & Disposal for
September 2012
The Contract Payment to CR Transfer for
Recycling Services & Disposal for
September 2012 was approved .
6. Ado ption of Warrant Resolution No.
CMSD 201 3 -4 Approving District
Warrant Registers
Warrant Resolution No. CMSD 2013 -4
approving District warrants for the Month of
September 2012 in the amount of
$622,419.88 was approved.
7. Directors' Compensation and
Reim bursement of Expenses for the
Month of September 2012
Directors' Compensation and
Reimbursement of Expenses for the Month
of September 2012, as listed in the Agenda
Report dated October 25 , 2012, were
approved and ratified.
8. Plan to Reduce SSOs The plan to reduce SSOs was approved.
9. Quarterly Budget Reports for
September 30, 2012
Quarterly Budget Reports for September 30,
2012 were approved.
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10. Strategic Plan for Fiscal Years 2010 -
15, Quarter Progress Report: 2012 -
13 1 st Quarter
This it em was pulled from the Consent
Calendar for separate vote.
11. General Manager Declaring a Public
Emergency to Repair Hatched Doors
at Harbor and Sea Bluff Pump
Stations
Received and filed.
12. Budget Transfer per September
Quarter Budget Review
Re ceived and filed.
13. Budget Transfer for eCivis User
License
Received and filed.
E ND OF C ONSENT C ALENDAR
Vice President Ferryman moved for approval of the Consent Calendar except for items
pulled for a separate vote (Item No. 10). Director Perry seconded the motion. The
motion carried 5 -0.
Regarding Item No. 10, Director Fitzpatrick requested that staff generate a calendar of
the Strategic Plan budget decisions discussions on sewer rates and asset management.
He stated that it would be he lpful to know when the various discussions will occur.
Director Fitzpatrick moved approval of Item No. 10. Director Scheafer seconded the
motion. The motion carried 5 -0.
IX. P UBLIC H EARING S - None
X. G ENERAL M ANAGER /D ISTRICT C LERK R EPORTS
14. Knowledge Transf er Consulting Services
General Manager Scott Carroll presented background and noted that a succession plan
works well for large organizations but not for small organizations as the CMSD. He
reported speaking with Mejorando Group representatives who sugge sted a knowledge
transfer . He distinguished between explicit and tacit plans and explained each and
presented recommendations to waive the bid procedures, enter into an agreement with
Mejorando Group to perform a Knowledge Transfer Program and appropriate $17,000
for the services.
Discussion followed regarding documentation of and chronicling the program for
subsequent and future use , ensuring documentation for pertinent positions and the
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value of the tool. It was noted that succession plans would be b eneficial for key
individuals in the organization.
Ensuing discussion pertained to the bidding process and the ability of the Board to
waive it at its discretion and justification for the present request to waive the bidding
process.
Mr. Carroll stated that he believed that the appropriation requested is a reasonable one .
Discussion followed regarding other possible options, the possibility of contacting similar
service providers for quotes and obtaining a comprehensive list of applicable
experience fr om the suggested provider.
President Ooten noted that there is no hurry to complete the process and stated the he
would like to see other providers contacted to obtain input and quotes.
In response to Director Fitzpatrick's inquiry, Mr. Carroll state d that in doing his research,
the recommended consultant came up quite a bit.
Mr. Carroll will seek additional consultants and bring the item back to the Board for
consideration.
15. CMSD Branding
Mr. Carroll presented details of the report, including previous direction from the Board
on the matter. He addressed actions by the Branding Committee, review by the
Operations Committee and presented details of the recommendations as listed in the
agenda report.
Discussion followed regarding actions neces sary to get the message out regarding all of
the services provided by CMSD to the public and the need for professional help towards
that goal. Brief discussion followed regarding truck signage opportunities, other options
available to communicate the orga nization's programs and the possibility of changing
the logo.
Director Scheafer moved to accept the report and recommendations made by the
Branding Committee. Director Fitzpatrick seconded the motion. The motion carried 3 -
2, with Directors Ferryman and Perry, opposed.
16. Performance Audit of CR&R
Mr. Carroll presented the report and recommendations as listed in the agenda report.
He noted that the audit would be to verify compliance with the terms of the contract with
CR&R and was reviewed by the Ope rations Committee. Mr. Carroll reported that staff
is ready to issue the RFP and that costs for these services will be reimbursed by CR&R.
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Discussion followed regarding past procedures in performing the audit. Mr. Carroll
noted that the recommendation w ill provide for a more detailed audit.
Director Fitzpatrick commented on calculation of the rates and felt that the proposed
does not take the issue and all of the contract terms into account. He indicated that he
would like the opportunity to review the RFP.
Mr. Carroll indicated that he can bring the item back at the Board's meeting in
November, with the RFP attached.
Members of the Board concurred to direct staff to bring the item back at the Board's
meeting in November, with the RFP attached.
17. Capital Improvement Projects Carryover Request
Account Manager Teresa Gonzalez presented details of the report including
recommendations. She addressed the amount being requeste d as well as the
corresponding projects where the funds will be used.
Discussion followed regarding the Bristol Street pump station and the Irvine pump
station force main and Canyon force main rehab.
Ms. Gonzalez noted that the projects had been comp leted last fiscal year but additional
expenses came through in this fiscal year. She referenced the Project Status report
which lists the additional expenses.
Vice President Ferryman moved to approve the CIP carryover requested as listed in the
agenda re port. Director Perry seconded the motion. The motion carried 5 -0.
18. Reappropriation of Funds from FY 2011 -12 to FY 2012 -13
Account Manager Teresa Gonzalez noted that this item is similar to the previous item
but deals with operations and maintenance projects that have not been completed.
Director Scheafer moved to approve the budget adjustment as stated in the agenda
report. Director Perry seconded the motion. The motion carried 5 -0.
19. Employee Pay for Performance Program
Mr. Carroll addressed previous direction and actions by the Board on this item, provided
background and presented details of the report. He addressed changes made to the
program including adding performance goals to employee evaluations to encourage
employees to perform at the highest level.
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Discussion followed regarding guaranteed CPI increases, evaluation of various
scenarios and providing step increases.
Members of the Board concurred to receive and file the report.
20. Project #197 – System Wide Sewer Reconstruction Ph ase III -
Engineering and Design Proposal
Mr. Carroll presented the report noting that Phase I is complete and that Phase II will
begin November 5, 2012. He addressed the engineering and design proposal and
stated recommendations. Mr. Carroll reported that the contract is being awarded to
RBH and Associates because of its knowledge and experience in preparing designs for
Phases I and II and its ability to reduce costs. The services will be added to RBH and
Associates' existing contract with the Distri ct.
Members of the Board concurred to receive and file the report.
21. Refund of Sanitary Assessment Overpayment – Moller
Administrative Service Manager Anna Sanchez presented the report noting the refund is
a result of overcharges to the Moller resid ence, which is connected to a septic tank and
was improperly billed for sewer services. Although the property is now connected to the
sewer system, the overcharges cover previous years where they were not on the
system. Ms. Sanchez presented recommendat ions.
Discussion followed regarding similar requests for overpayment and the distinguishing
criteria for the length of time for assessment. Ensuing discussion pertained to charges
for connecting to the CMSD system and whether the septic tank will be remo ved.
Director Scheafer moved to approve a refund in the amount of $859.74 for the sewer
assessment from 1998 through current in accordance with State law, as stated in the
agenda report. Director Perry seconded the motion. The motion carried 5 -0.
22. Resolution No. 2012 -823 Ordering Publication of Ordinance No. 93
Mr. Carroll presented details of the report noting that the ordinance was published in the
newspaper.
Director Scheafer moved to adopt Resolution No. 2012 -823 ordering publication of
Ordin ance No. 93. Director Perry seconded the motion. The motion carried 5 -0.
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23. MWDOC Hybrid Committee
President Ooten noted ongoing discussions on the item.
Mr. Carroll presented details of the report in order to allow all Board members to speak
dur ing committee meetings. The item would be posted as a Special Board meeting.
District Counsel Alan Burns indicated that he is opposed to the item, noted that the
Board has the ability to hold special meetings and that through a hybrid committee,
Members would be depriving themselves of the ability to vote. He recommended
holding special Board meeting s for discussions and actions or holding a study session
for discussion.
President Ooten felt that the Board needs a vehicle where all Directors could comme nt
as well as vote.
Vice President Ferryman noted that committees provide recommendations to the Board
where Members could fully discuss issues and take action.
Director Fitzpatrick stated his rationale for bringing the item forward.
Discussion fo llowed regarding the pros and cons of the various alternatives and the
benefits of holding study sessions.
Director Scheafer indicated that he would like study sessions to focus on specific issues
and stressed the importance of all Members being able to d iscuss issues before coming
formally, before the Board.
Vice President Ferryman agreed with Director Scheafer's comments.
Director Perry moved to maintain the status quo at this time. Vice President Ferryman
seconded the motion. The motion carried 5 -0.
24. Telephone Book Recycling Program
Management Analyst Javier Ochiqui presented details of the report including
background and findings. He noted decreased participation in the program since 2008
and review and recommendations by the Operations Comm ittee. He addressed the
2013 budget for the program and award amounts.
Discussion followed regarding letters distributed to schools, the need to send updated
information if the policy changes, program start date and setting a requirement for a
minimum amount of books.
Ensuing discussion pertained to setting criteria for qualifying for awards and
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encouraging the bottle and aluminum recycling programs.
Director Fitzpatrick commented on the possibility of obtaining a status report on the
industry fro m Catalog Choice.
Discussion followed regarding decreases in the use of print phone books and trends
towards on line information. The Board directed staff to consider awarding funds to
schools for their behavior towards the program. If schools demonstr ated good faith
effort in promoting the programs (i.e. emails, posters, assigning key personnel, etc.)
then they would be eligible to receive the minimum amount.
XI. O PERATIONS C OMMITTEE
25. Tuesday, October 16, 2012, 9:30 a.m. - (Vice President Ferryman a nd
Director Perry)
Vice President Ferryman presented a summary of items considered at the October 16,
2012 Operations Committee meeting. He addressed the various reports, upcoming
events, and a composting survey and referenced an article from the "Los An geles
Times" regarding recycling fraud.
Discussion followed regarding changes needed within the industry regarding out -of -
state redemptions of recyclable materials.
Vice President Ferryman addressed the Asset Management program and the date of
the nex t regular meeting of the Operations Committee meeting.
Discussion followed regarding an article indicating that most cities will be going to a
single -can system in the future, commodity revenue and continuing discussions
regarding the value of recyclabl es and resolving the issue with the contracted hauler.
President Ooten felt that the latter would be a good study -session topic.
Discussion followed regarding the percentage paid by CMSD for recyclables and the
50% recycling requirement by the State.
XII. E NGINEER 'S R EPORTS
26. Project Status Report
Mr. Carroll noted no oral reports at this time.
XIII. T REASURER 'S R EPORTS
27. Investment Report as of September 30, 2012
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District Treasurer Marc Davis presented details of the Investment Report as of
Septem ber 30, 2012. He addressed security replacements, benchmarks and portfolio
earnings.
Discussion followed regarding five -year treasury notes and the election's bearing on the
organization's return on investment.
XIV. A TTORNEY 'S R EPORT S - N one
XV. L OCAL M EETI NGS
A. Orange County Sanitation District (OCSD) – (Vice President Ferryman)
Vice President Ferryman presented an update on a recent meeting of the Orange
County Sanitation District. He addressed the ocean -outflow repair completion, an
upcoming leaders hip development program and a vendor outreach event.
B. Santa Ana River Flood Protection Agency (SARFPA) – (Director Perry)
Director Perry provided an update of a r ecent SARFPA meeting. He addressed the
surrey line, the railroad bridge below the dam and a Westminster watershed study.
Brief discussion followed regarding the status of litigation.
C. Independent Special Districts of Orange County (ISDOC) – (President
Ooten)
D. California Special Districts Association (CSDA)
President Ooten p rovided an update on the recent CSDA conference and addressed
safety classes. He reported that CMSD received three awards and presented details of
each.
He reported attending the Chapter meeting and provided a brief update.
It was noted that liability i ssues are of concern.
Director Scheafer commented positively on a webinar in which he participated and will
present a report next month.
E. California Association of Sanitation Agencies (CASA)
F. Other Meetings Qualifying for Reimbursement under CMSD Ordi nance
No. 55, Operations Code Section 3.01.030
Director Fitzpatrick reported attending a SWANA SOCAL meeting commented positively
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on the event. He also attended a tour of the Newport Beach transfer station as well as
a recent Newport Beach City Council m eeting regarding median landscaping.
XVI. O LD B USINESS - None
XVII. N EW B USINESS
Mr. Carroll commented on a L iaison C ommittee with the City of Newport Beach and
Mesa Consolidated. He reported that the Newport Beach City Manager and Mayor are
interest ed in impl ementing a Liaison Committee. He presented possible dates for
meetings and requested direction on who the Board would like to represent CMSD as
well as an alternate. The item arose after publication of the agenda and Mr. Carroll
indicated the need to tak e action at this time.
Vice President Ferryman moved to declare that the item arose after publication of the
agenda and that there is a need to take action on this item at this time. Director
Scheafer seconded the motion. The motion carried 5 -0.
Disc ussion followed regarding keeping possible dates for meeting, open.
Discussion followed regarding assigning Director Scheafer as the rotating Board
member representing CMSD on the Liaison Committee and Director Fitzpatrick as the
alternate.
Director Pe rry moved to assign Director Scheafer as the rotating Board member
representing CMSD on the Liaison Committee and Director Fitzpatrick as the alternate.
Director Scheafer seconded the motion. The motion carried 5 -0.
XVIII. O RAL C OMMUNICATIONS AND D IRECTOR C OMM ENTS
President Ooten addressed downspouts and stressed the importance of minimizing
them. He requested that staff return with a report and recommendations on the use of
downspouts.
Director Perry indicated that he is scheduled for jury duty and was no t sure that he will
be able to attend the Board of Directors meeting of November 15, 2012.
Director Fitzpatrick requested items to promote the Household H azardous Waste
collection event and addressed the elements of the trash contract including pick -up at
households and recycling and diversion. He noted that Mesa Water recently voted to
censure a Board member and requested comments from the General Manager.
District Counsel Burns reported that he will provide an update to the Board at a future
meeting regarding applicable policies.
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XIX. A DJOURNMENT
President Ooten adjourned the meeting at 6:51 p.m. to the next regular meeting of the
Costa Mesa Sanitary District Board of Directors on November 15, 2012 at 5:30 p.m. in
the District's Board Room, 628 W. 19 th Street.
_________________________ _________________________
Secretary President