Minutes - Board - 1992-08-27 (2)r,
MINUTES OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS
ADJOURNED MEETING HELD AUGUST 27, 1992
CALL TO ORDER: The Board of Directors of the Costa Mesa
Sanitary District met at the adjourned session
on August 27, 1992, 12 Noon, at the Civic
Center, 77 Fair Drive, Costa Mesa.
Directors Present: James Wahner, Nate Reade,
James Ferryman, Dick
Sherrick
Directors Absent: Harry Green (excused)
Staff Present: Roy June, Attorney,
Robin Hamers, Manager/
Engineer, Susan Temple,
Treasurer, Florine Reichle,
Assistant Manager /Clerk of
the District
Director Wahner called the meeting to order at 12 Noon.
The Pledge of Allegiance and Invocation was not recited again since
the August 27, 1992 meeting was a continuation of the August 20,
1992 session.
• TREASURER'S REPORT:
Ms. Temple presented Resolution No. 92 -520 - Authorizing
Treasurer to Invest District Monies'in County Treasury.
Ms. Temple felt that this investment concept was beneficial
for the District. She continued to explain that currently the
District's investment portfolio is with the State of
California Local Agency Investment Fund. The investment
earning rate for the State Pool is 5.15 %, with the advantage
that monies deposited for investment one day may be withdrawn
the next day. Ms. Temple compared the State Pool interest rate
with the present day Certificate of Deposit interest rate.
The County of Orange conducts a similar pool which is known as
the Orange County Treasurer's Pool (OCTP). Ms. Temple would
like the authorization to invest a portion of the District's
portfolio in this special pool. As of June 30 the rate of
interest was 9.16 %. Ms. Temple felt that investing a portion
of the District's portfolio with the County would be an
important source of revenue enabling the District to utilize
these earnings in financing the District's operations and
increase the District's investment earnings. Prior to taking
this step Ms. Temple would meet with Mr. Hamers to discuss and
review the Reserve Fund and the Capital Improvement Projects
to assess what the District could anticipate utilizing in the
is following six months, taking into consideration that the
District basically operates off its Reserves until December..
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Minutes of the Costa Mesa Sanitary District
Adjourned Meeting of August 27, 1992 -- Page 2
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Director Sherrick requested to know how much money was
involved.
Ms. Temple did not know how much of the portfolio would be
invested, but probably in the area of $1,000,000 or one third
of the portfolio. She further stated that the County has no
limit on the amount of investment.
Director Ferryman made a motion, seconded by Director Reade to
adopt Resolution No. 92 -520, A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE COSTA MESA SANITARY DISTRICT AUTHORIZING THE
CITY TREASURER TO INVEST DISTRICT MONIES WITH THE COUNTY OF
ORANGE TREASURER. Motion carried 4 -0.
ENGINEER'S REPORT:
PROJECT STATUS REPORT:
Status Report was received and filed.
DEVELOPMENT UPDATE: - No new developments to report.
REVIEW OF SEWER PLANS: - No new developments to report.
Project No. 122 - JOINT REWORKING AND PIPE REPLACEMENT •
On July 27, 1992, bids were opened for Project No. 122
resulting in only one bid from Kennedy Pipeline Company. The
bid was beyond the Engineer's Estimate. Mr. Hamers recommends
that this bid be rejected and that the project be readvertised
and possibly redesigned for a second bid opening in the
future.
Motion was made by Director Reade, seconded by Director
Ferryman to reject the bid made by Kennedy Pipeline Company on
Project 1112100 -122. Motion carried 4 -0.
ATTORNEY'S REPORT:
RESOLUTION NO. 92 -521 - Annexation No. 245:
Mr. Hamers informed the Board that Annexation No. 245 is the
Mesa Verde Country Club. It is one of three properties that
the District is presently servicing that needs to be annexed.
Motion was made by Director Reade, seconded by Director
Ferryman that Resolution No. 92 -521 - Annexation No. 245, "A
RESOLUTION OF APPLICATION BY THE COSTA MESA SANITARY DISTRICT
REQUESTING THE LOCAL AGENCY FORMATION COMMISSION TO TAKE
PROCEEDINGS FOR THE ANNEXATION OF TERRITORY, BEING ANNEXATION •
NO. 245 be adopted. Motion carried 4 -0.
Minutes of the Costa Mesa Sanitary District
Adjourned Meeting of August 27, 1992 -- Page 3
RESOLUTION NO. 92- 521 -Zero Tax Exchange on Annexation No. 245
Director Ferryman made the motion, seconded by Director Reade
that Resolution No. 92 -522 be adopted, "A RESOLUTION OF THE
BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ORANGE
COUNTY, CALIFORNIA, CONSENTING TO ZERO TAX EXCHANGE ON CERTAIN
ANNEXATIONS TO THE DISTRICT; ESTABLISHING CONDITION OF WAIVER
AND STATING REASONS THEREFOR. Motion carried 4 -0.
MANAGEMENT AGREEMENT: ROBIN B. HAMERS & ASSOCIATES, INC:
Mr. June presented the Management Agreement with ROBIN B.
HAMERS & ASSOCIATES, INC. for approval. He reminded the Board
that he had taken the Board's direction from the Study Session
that had been previously conducted on this subject and was
presenting the second draft for the Board's reconsideration.
Mr. June stated that Mr. Hamers and Ms. Reichle had reviewed
the Management Agreement. Motion was made by Director Reade,
seconded by Director Ferryman to adopt the Management
Agreement. Motion carried 4 -0.
RESOLUTION NO. 92 -523 - Job Description /Manager
® Director Reade made a motion, seconded by Director Ferryman
that Resolution No. 92 -523, being " "A RESOLUTION OF THE BOARD
OF DIRECTORS OF COSTA MESA SANITARY DISTRICT ADOPTING
CLASSIFICATION CHARACTERISTICS, QUALIFICATIONS AND JOB
DESCRIPTION FOR DISTRICT MANAGER FOR THE DISTRICT be adopted.
After discussion Director Sherrick made a substitute motion,
and is requesting that the Board have the Manager rewrite the
job description. Director Sherrick feels that the job
description that was presented was too general in scope and
that it should contain specific responsibilities, relating
directly to the Manager. Attorney June and Mr. Hamers are both
satisfied with the job description. Original motion carried
3 -1, Director Sherrick voting no. The substitute motion died
due to a lack of a second.
RESOLUTION NO. 92 -524 - Job Description /Engineer
Director Reade made a motion, seconded by Director Ferryman
that Resolution No. 92 -524, being A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING THE
DUTIES AND. OBLIGATIONS AS A JOB DESCRIPTION FOR THE DISTRICT'S
ENGINEER, THEREFOR, be approved. Motion carried 3 -1, Director
Sherrick voting no, stating he would prefer additional
information in the description.
POTLACH /SIMPSON CLAIM REPORT:'
• Attorney June informed the Board that the County Sanitation.
District has negotiated a settlement with Potlach /Simpson and
Minutes of the Costa Mesa Sanitary District
Adjourned Meeting of August 27, 1992 -- Page 4
it has been requested that this settlement be kept
confidential until all the twenty one agencies involved have
signed.
Attorney June has reviewed the settlement and has discussed it
with Tom Woodruff's office and is satisfied with the
settlement. Mr. June had not discussed the settlement with
the staff due to the confidentiality that had been requested
by the Sanitation District attorneys.
Director Sherrick made a motion, seconded by Director Reade,
to accept and approve the proposed settlement as presented.
Motion carried 4 -0.
OLD BUSINESS:
PENDING ITEMS STATUS REPORT:
Director Sherrick requested that Number and Types of District
Meetings for 1992 -93 and Consultant Services to Assist in
Staff Reorganization on the Status Report dated August 20,
1992, be deleted.
Director Wahner asked if there was any opposition to these
deletions and directed staff that these items be deleted from
the Status Report. 0
CLAIM - PATRICIA LYON
A letter was presented from Costa Mesa Disposal, Inc., stating
the reasons why they had rejected the claim regarding Patricia
Lyon. The claim was alleging that on June 9/10, 1992, the
trash haulers had hit her car cracking her headlight, for
total damages in the amount of $648.47. The claim was also
rejected by the Costa Mesa Sanitary District.
NEW BUSINESS:
Capital Improvement Project Report (CIP) . At the August 20,
1992 meeting the Board approved Boyle Engineering preparing a
review of the District's Capital Improvement Program as part
of the operation of the district.
The report dated July 31, 1992, from Boyle Engineering signed
by Mr. Bruce Mattern informing the District that he has
completed his review of the District's CIP for the 1992 -93
fiscal year. Mr. Mattern gives an analysis of each project,
including an analysis of design, engineering, construction and
contingency costs. Mr. Mattern also stated the CIP appeared
warranted.
Motion was made by Director Ferryman, seconded by Director •
Minutes of the Costa Mesa Sanitary District
Adjourned Meeting of August 27, 1992 -- Page 5
Reade, to receive and file the report as presented. Motion
carried 4 -0.
ORAL COMMUNICATIONS:
Director Sherrick directed his question on the budget to the
Finance Director with reference to pay raises and were they
consistent with what had been done in the City. He had been
informed that the City employees have had no pay raise,
however, he appears to find raises in the budget which relate
to salaries and wages for various City employees that work for
the District.
It was recommended by President Wahner that Director Sherrick
meet with Ms. Temple for a full explanation of the figures
contained in the budget since Ms. Temple reiterated there were
no pay raises forthcoming except for merit increases.
ADJOURNMENT:
Director Wahner adjourned the meeting at 12:45 p.m.
is PRESIDENT ASSISTANT SECRETARY
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