Minutes - Board - 2013-04-18 ITEM NO. 04
�gE+5AN1T,gRy
Q o �%
O r n�u0r... A
4,c—RPORAT03%
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 18, 2013
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
April 18, 2013 at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
II. PLEDGE OF President Ferryman led the Pledge of
ALLEGIANCE Allegiance.
III. INVOCATION Vice President Scheafer led the Invocation.
IV. ROLL CALL DIRECTORS PRESENT: James Ferryman, Mike Scheafer, Robert
Ooten, Art Perry, Arlene Schafer
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Anna
Sanchez, Administrative Service Manager;
Noelani Middenway, Deputy Clerk of the
District; Robin B. Hamers, District Engineer;
Alan Burns, District Counsel; Marc Davis,
District Treasurer; Javier Ochiqui,
Management Analyst
OTHERS PRESENT: Maureen Slick, Resident; Lawrence
Jones, CR&R
V. CEREMONIAL MATTERS AND PRESENTATIONS-None.
VI. ANNOUNCEMENT OF LATE COMMUNICATIONS - General Manager Carroll indicated
that written public comments had been received from Mr. Jim Mosher and have
been provided to the Board for their review.
VII. PUBLIC COMMENTS - None.
VIII. CONSENT CALENDAR
1. Board of Directors Special Meeting The Board of Directors Special Meeting
Minutes of March 12, 2013 Minutes of March 12, 2013, was approved
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
as presented.
2. Operations Committee Minutes of The Operations Committee Minutes of
March 19, 2013 March 19, 2013, was approved as
presented.
3. Board of Directors Regular Meeting The Board of Directors Regular Meeting
Minutes of March 28, 2013 Minutes of March 28, 2013, was approved
as presented.
4. Occupancy report and payment to The Board of Directors approved the
Costa Mesa Disposal occupancy report and payment to Costa
Mesa Disposal for the month of March 2013.
The Board of Directors approved payment
5. Contract Payment to CR Transfer for to CR Transfer for recycling and disposal
Recycling and Disposal Services services for the month of March 2013.
6. Adoption of a Resolution Approving This item was pulled for further discussion.
District Warrant Registers
7. Directors' Compensation and The Board of Directors approved Directors'
Reimbursement of Expenses compensation and reimbursement of
expenses for the month of March 2013.
8. Investment Report as of March 31, The Board of Directors received and filed
2013 the report.
9. Adoption of Resolution No. 2013-828 The Board of Directors adopted Resolution
amending the District's Deferred No. 2013-828 amending the District's
Compensation Plan (457) Deferred Compensation Plan (457).
10.Adoption of Resolution No. 2013-829 The Board of Directors adopted Resolution
nominating Vice President Scheafer No. 2013-829 nominating Vice President
to serve on the Special District Risk Scheafer to serve on the Special District
Management Authority (SDRMA) Risk Management Authority (SDRMA)
Board of Directors Board of Directors.
END OF CONSENT CALENDAR
Director Schafer moved for approval of the Consent Calendar with the exception of Item
No. 6 that was pulled for separate discussion. Vice President Scheafer seconded the
motion.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
The motion carried 5-0.
Regarding Item No. 6, General Manager Carroll provided Mr. Mosher's comments to the
Board regarding payments made to the District Engineer for professional services, as
well as payments made to Liebert, Cassidy, and Whitmore. Mr. Carroll responded to Mr.
Mosher's comments and provided details of the payments to Liebert, Cassidy, and
Whitmore.
Director Bob Ooten moved to approve Item No. 6. Director Art Perry seconded the
motion.
The motion carried 5-0.
General Manager Carroll noted that the Public Hearing was scheduled to begin at 6:00
p.m.
President Ferryman moved on to Item No. 13 in the interest of beginning the Public
Hearing at the noticed time of 6:00 p.m.
X. GENERAL MANAGER/DISTRICT CLERK REPORTS
13. Appeal to the Sewer Lateral Assistance Program (SLAP) Guidelines
Recommendation: That the Board of Directors deny Ms. Slick's appeal to
request reimbursement from the Sewer Lateral Assistance Program
because it will set precedent for not complying with SLAP Guidelines.
President Ferryman invited Ms. Slick to address the Board.
Ms. Slick provided details of the process by which her sewer lines had been reviewed
by the City of Newport Beach staff and why she had not submitted her SLAP application
per the SLAP guidelines.
District Counsel Burns asked clarifying questions regarding the City of Newport Beach
staff's involvement in checking Ms. Slick's lines.
Discussion followed regarding the communication between the District and the City of
Newport Beach regarding the SLAP program and the plumbing charges incurred by Ms.
Slick.
Director Perry questioned District Counsel Burns if the District was limited by any legal
limitations.
District Counsel Burns responded to Director Perry and noted that there was a purpose
that the Board had adopted such criteria.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
Director Ooten moved for Ms. Slick to work with staff to settle the matter.
General Manager Carroll requested clarification of direction from the Board.
Vice President Scheafer suggested that a courtesy letter be sent to the City of Newport
Beach to address this matter.
Director Ooten revised his motion and moved to direct staff to award Ms. Slick the full
benefits of the SLAP program up to $1,800. Director Perry seconded the motion.
District Counsel Burns commented that the Board may make a finding that it
encourages its constituents to be aware of the legal relationships between the
governing entities and that this situation went beyond that where a different City
responded and exceeded its jurisdiction.
The Board unanimously agreed that due to misinformation by the entity that responded
erroneously to Ms. Slick's situation, the Board found it compelling to award Ms. Slick the
full benefit of the SLAP program up to $1,800.
District Counsel Burns indicated that this situation would be known as an estoppel.
The motion carried 5-0.
14. Sewer Lateral Assistance Program Analysis
Recommendation: That the Board of Directors approves two of the following
recommendations:
1. Start collecting at least 50% of the Permit Fee from SLAP participants in
order to cover our indirect costs, and no longer allow CMSD staff to
waive the plan check and tie-in fees; or
2. Continue to waive the Permit Fee from SLAP participants, and no longer
allow CMSD staff to waive the plan check and tie-in fees.
3. Allocate $25,000 from the Liquid Waste Fund Balance to the SLAP
Budget
Mr. Javier Ochiqui provided report details and an illustration of SLAP program
participants, noting that that the majority of participants were located on the East Side
Costa Mesa. Mr. Ochiqui discussed the District's past practice of waiving permit and
plan check fees.
Director Perry commented that he agreed with the District Engineer's suggestion of
decreasing the reimbursement amount from $1,800 to $1600 and to not charge
additional fees.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
Vice President Scheafer concurred.
Discussion followed regarding the effective date of the reimbursement amount change
to $1600.00 and it was agreed upon that the change would become effective upon
approval.
Director Perry moved to reduce the reimbursement amount from $1,800 to $1600 to
assist in recouping fees.
General Manager Carroll informed the Board that a second motion would be necessary
to appropriate $25,000 as the SLAP program funds have been depleted.
Mr. Ochiqui requested that the Board direct CMSD staff to no longer waive plan check
and tie in fees as part of the motion.
Director Perry revised his motion to reduce the reimbursement amount from $1,800 to
$1600 and to no longer allow CMSD staff to waive plan check and tie in fees.
General Manager Carroll noted that Mr. Jim Mosher had provided public comment
regarding this item which had been provided to the Board for their review.
The motion carried 5-0.
Vice President Scheafer moved to allocate $25,000 from the Liquid Waste Fund
Balance to the SLAP budget. Director Perry seconded the motion.
The motion carried 5-0.
15. Rewarding Ideas Program
Recommendation: That the Board of Directors approves rewarding
District employee Jaesen Alfassa $100.00 for his suggestion on creating
a manhole cover awareness program.
General Manager Carroll reported that Mr. Jaesen Alfassa had provided an
employee suggestion on creating a manhole awareness program and
recommended that he be awarded $100 for his suggestion.
Director Ooten moved for approval. Director Perry seconded the motion.
The motion carried 5-0.
IX. PUBLIC HEARINGS - President Ferryman opened the Public Hearing at 6:10 p.m.
11. Consideration of Solid Waste Annual Charges for FY 2013-14 & FY 2014-
15 to be collected with the General Taxes
A. Presentation of Report
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
B. Open Public Hearing
C. Recommendation: That the Board of Directors approves continuing the
Public Hearing to June 27, 2013 and direct staff to negotiate with CR&R
on lowering the hauler and/or recycling/disposal rates.
President Ferryman deferred to District Counsel Burns to provide an overview of the
public hearings.
District Counsel Burns provided details of the procedural requirements for both the
solid and liquid waste public hearings per the Proposition 218 regulations.
President Ferryman deferred to General Manager Carroll for report details.
General Manager Carroll provided report details regarding the solid waste revenues
and discussed the five key expenses including the hauler rate, recycling/disposal
rate, salaries and benefits, operations and maintenance, and programs. Mr. Carroll
further discussed expenses, revenues, and the proposed decrease of the annual
charge per residential parcel to $216 per year or $18 per month.
Discussion followed regarding the amount of the fund balance and its fluctuation
during the fiscal year.
Director Ooten indicated that he would like two million dollars to be allocated as an
unrestricted reserve.
General Manager Carroll informed the Board that the preliminary draft of the CR&R
audit had been received and that staff will analyze and determine if a rate decrease
needs to be negotiated.
Discussion followed regarding the cost of advertising the Proposition 218 hearing.
General Manager Carroll recommended to the Board that the public hearing be
continued to June 27, 2013 and to direct staff to negotiate with CR&R on lowering
the hauler and/or recycling/disposal rates.
Vice President Scheafer moved to continue the public hearing to June 27, 2013.
Director Perry seconded the motion. ,
The motion carried 5-0.
General Manager Carroll informed the Board that Mr. Jim Mosher had provided
written public comment on this item which had been provided to them for their
review.
12. Consideration of Liquid Waste Annual Charges for FY 2013-14 & FY
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
2014-15 to be Collected with the General Taxes
A. Presentation of Report
B. Open Public Hearing
C. Recommendation: That the Board of Directors approves continuing the
public hearing to June 27, 2013.
General Manager Carroll provided report details and discussed the liquid waste
projected revenues, expenditures, and the Asset Management Fund. Mr. Carroll
provided his proposed spending cuts for FY 2013-14 and FY 2014-15 and
addressed concerns regarding the proposed Finance Manager position.
Discussion followed regarding the anticipated savings from the approved changes
to the SLAP program, the recruitment of the Finance Manager and the desired
qualifications for the position.
Administrative Services Manager Anna Sanchez provided clarifying details of the
desired qualifications of the Finance Manager.
Discussion followed regarding the District Treasurer's role in the Finance
Department.
Director Perry noted that he did not feel the proposed reduction of pump station
maintenance, smart covers, and office supplies should be cut from the budget.
Discussion followed regarding the proposed budget cuts and District branding.
The Board concurred with Director Perry's suggestions.
General Manager Carroll confirmed that the Proposition 218 procedures had been
met.
General Manager Carroll noted that Mr. Jim Mosher had provided comments
regarding this item which have been provided to the Board for review.
Deputy District Clerk Noelani Middenway reported that eleven written protests had
been received.
Vice President Scheafer moved to continue the public hearing to June 27, 2013.
Director Schafer seconded the motion.
The motion carried 5-0.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
XI. OPERATIONS COMMITTEE
16. Tuesday April 16, 2013, 9:30 a.m. - (Vice President Scheafer and
Director Schafer)
Recommendation: That the Board of Directors accepts and files report.
Vice President Scheafer reported on the Fairview Development Center sewer
maintenance, trash cans stored in alleys and noted no updates to the CIP projects.
General Manager Carroll noted that Mr. Jim Mosher had provided written public
comment regarding this item suggesting that the Operations Committee meetings
be held as a study session to allow the other members of the Board to participate.
Discussion followed regarding the ability to hold a workshop/study session in lieu of
the current Operations Committee meeting.
There were no additional questions or comments and the report was received.
XII. ENGINEER'S REPORTS
17. Proiect Status Report
Recommendation: That the Board of Directors receive and file the report.
There was nothing to report.
There were no questions or comments and the report was received. •
18. Fairview Development Center (Fairview State Hospital on Harbor Blvd)
— Inflow Reduction Program
Recommendation: That the Board of Directors approves one or more of
the following recommendations:
1. Receive and file this report.
2. Consider working with state officials and urging the state to clean the
system and comply with the statewide Waste Discharge Requirements.
Poor performance of private and state-owned wastewater collection
systems inside the District will reflect negatively on the District and will
be noticed by the state water board regulators.
3. Consider a cost-sharing or trade of services agreement with the state
for sewer line cleaning that would benefit both parties.
4. Consider additional actions as determined by the Board upon
consideration of this matter.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
General Manager Carroll provided report details regarding the Fairview
Development Center sewer line cleaning and noted that the Operations Committee
recommended considering a cost-sharing or trade of services agreement with the
state for sewer line cleaning that would benefit both parties.
The Board did not approve the Operations Committee's recommendation, but
instead, discussion followed to allow the Development Center the opportunity to
clean their sewer, the anticipated cost to clean the sewer line, and creating dialogue
with the Developmental Center.
There were no additional questions or comments and the report was received.
XIII. TREASURER'S REPORT - None
XIV. ATTORNEY'S REPORT- None
XV. LOCAL MEETINGS
A. Orange County Sanitation District (OCSD) — (President Ferryman)
Recommendation: That the Board of Directors accepts oral report.
No reports at this time.
B. Santa Ana River Flood Protection Agency (SARFPA) — (Secretary Perry)
Recommendation: That the Board of Directors accepts oral report.
No reports at this time.
C. Independent Special Districts of Orange County (ISDOC) — (Vice
President Scheafer)
Recommendation: That the Board of Directors accepts oral report.
Vice President Scheafer reported that Mr. David Cordero is moving on from ISDOC. He
is now the chief of staff for the City of Irvine's mayor.
D. California Special Districts Association (CSDA) .
Recommendation: That the Board of Directors accepts oral report.
Vice President Scheafer reported that he has completed the sexual harassment
training.
E. California Association of Sanitation Agencies (CASA)
Recommendation: That the Board of Directors accepts oral report.
No reports at this time.
COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD APRIL 18, 2013
F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance
No. 55, Operations Code Section 3.01.030
Recommendation: That the Board of Directors accepts oral report.
Director Schafer reported on her attendance at the WACO meeting and Chamber of
Commerce breakfast.
XVI. OLD BUSINESS - None
XVII. NEW BUSINESS
Director Perry reported that he and Director Ooten would be attending the CWEA
meeting in Palm Springs on Friday, April 19, 2013 and requested Board approval.
Vice President Scheafer moved to address a non-agenda item which arose after the
agenda had been prepared as there was a need to take immediate action. Director
Schafer seconded the motion.
The motion carried 5-0.
Vice President Scheafer moved to allow Directors Ooten and Perry to attend a meeting
in Riverside County. Director Schafer seconded the motion.
The motion carried 5-0.
XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Vice President Scheafer noted that he would not be able to attend the Mayor's dinner.
Discussion followed regarding the number of sewer laterals in Newport Beach, the
circulation of the District's newsletter to Newport Beach residents, and the International
Christian Academy Montessori of Costa Mesa's involvement in the Muzeo's Trash Art
contest.
XXI. ADJOURNMENT
President Ferryman adjourned the meeting at 7:23 p.m. to the next regular meeting of
the Costa Mesa Sanitary District Board of Directors on May 23, 2013 at 5:30 p.m. in the
District's Board Room, 628 W. 19th Street.
• c /
Art Perry J. yes Ferryman
Secretary P sident