OJAI VALLEY SANITARY DISTRICT A Public Agency 1072 Tico Road, Ojai, California 93023 (805) 646-5548 FAX (805) 640-0842 www.ojaisan.org MINUTES OF REGULAR MEETING OF BOARD OF DIRECTORS OJAI VALLEY SANITARY DISTRICT The Regular Meeting of the Ojai Valley Sanitary District Board of Directors was held at the District Office, 1072 Tico Road on. The meeting was called to order by Chairman Curtis at 6:00 p.m. and roll call taken as follows: DIRECTORS PRESENT: DIRECTORS ABSENT: STAFF PRESENT: OTHERS PRESENT: William M. Stone Peter M. Kaiser Russ Baggerly John R. (Randy) Burg John R. (Jack) Curtis Stan Greene Jeff Palmer, General Manager Brenda Krout, Clerk of the Board Ronald E. Sheets, Operations Superintendent Mark Zirbel, District Legal Counsel 3. Pledge of Allegiance Chairman Curtis led the pledge of allegiance. 4. Additions or amendments to the Agenda 5. Public Concerns (items not on the agenda - three minute limit). This is an opportunity for members of the public to speak on items not on the agenda.
Page 2 6. Board Concerns (Items not on the agenda - three-minute limit) PUBLIC HEARINGS: CONSENT ITEMS: - All consent items are considered in a single motion and voted on without discussion. Any item removed from the consent list at the request of a Board member or the public will be considered immediately following approval of the remaining consent items. Upon motion of Director Kaiser, seconded by Director Burg and passed by unanimous roll call vote, Item Nos. 7, 8 & 9 on the consent calendar were approved as submitted. 7. Approval of Minutes Regular Meeting June 27, 2016 and Special Meeting July 6, 2016 (a recording of each meeting is retained at the District Office for a minimum of 4 years) 8. Deferred Payment of Capacity Charges Agreements a. Approve the Agreements Affecting Real Property as listed below: 019-0-092-210 022-0-090-110 034-0-111-135 Kun Living Trust Jacqueline M. Urband Jerrold R. Putzier Trust b. Authorize the Chairman to sign the approved Agreements; and c. Direct staff to record the Agreements with the County of Ventura Recorder's Office. 9. Approval of Checks Approve the checks for payment as submitted. \\OVSD-ARCHIVEMy Documents\ Board Mtgs\2016\2016-07-25\Minutes.dOx t2 7-i
Page 3 CHAIRMAN CURTIS ANNOUNCED A CHANGE IN THE ORDER OF THE AGENDA ITEMS; INFORMATION ITEM NO. 17 WAS ADDRESSED PRIOR TO ITEM NO. 10 17. Quarterly Investment Report Jack & Heidi Oehmke, from Morgan Stanley, were in attendance to discuss the quarterly investment report. Mr. Oehmke addressed the Board presenting an overview of the District's investment portfolio, noting that the returns on the District's portfolio have been well above LAIF's returns since the inception of the District's portfolio. Mr. Palmer noted that at the recent meeting of the Finance Committee it was unanimously agreed that no changes to the District's investment approach are necessary at this time. Mr. Oehmke and Mr. Palmer responded to questions from the Board. The Board thanked Mr. Oehmke for his report. Jack & Heidi Oehmke left the meeting at this time, 6:06 p.m. ITEMS: 9a. Retention of Special Counsel Caravan Outpost RV Park Matter Mr. Palmer explained that District staff has been in discussions for several months with the Hilgers family, and the Hilgers' representative William Ulrich of the Waucon Group, regarding sewer connection, capacity charges and fees related to the Hilgers' Caravan Outpost RV Park project located at 317 Bryant Street in the City of Ojai. Following consultation with District General Counsel, District staff recommends the District hire special counsel to represent it in resolving the Caravan Outpost matter. General Counsel provided the names of two attorneys that he believes would be able to represent the District in this matter; Kathleen M. Weinheimer and Mary L. McMaster. Both attorneys are experienced in representing government agencies and both understand the issues involved. Chet Hilgers, 212 Grand Avenue Ojai, addressed the Board explaining the history of the Caravan Outpost RV Park and expressed his frustration with District's staff's lack of response to his inquiries about sewer related costs for his project. William Ulrich, 487 Gridley Road Ojai, addressed the Board questioning why they would be in a hurry to hire legal counsel for this issue. Mr. Ulrich commented that the Hilgers family is willing to come to accommodation with the District regarding connection fees & service charges stating that District staff has not actually stated an amount for these charges. \\OVSD-ARCHIVE\My Documents\Board Mtgs\2016\2016-07-25\Minute7 c x 7-3
Page 4 Brad Steward, 129 Layton Ojai, addressed the Board stating that he is partners with the Hilgers on the Caravan Outpost RV Park. Mr. Steward expressed his opinion that the Hilgers deserve a call back from District staff instead of going right to legal actions. Mr. Steward stated that there are 6 founders involved in the RV Park project and it will take at least two years for them to recoup their investment. Greg Webster, 420 N. Ventura Avenue Oak View, addressed the Board speaking as a representative of the Ojai Chamber of Commerce, asking for resolution of the Hilgers' issue. Kathleen Richards, 1202 Ayers Avenue Ojai, addressed the Board stating that she is a friend of the Hilgers. Ms. Richards stated that the Hilgers have a legitimate issue about what they should pay for sewer connection & service for their project. Ms. Richards asked how the Hilgers can get their issue on a future Board meeting for the Board to consider. Ms. Richards questioned if there is an appeal process for appealing what the General Manager has told the Hilgers. Mr. Palmer explained that the Hilgers need to write a letter asking for an appeal. Director Stone stated that he would have liked to hear a presentation from each of the recommended attorneys prior to selecting one of them to represent the Board on this issue. Upon motion of Director Baggerly, seconded by Director Kaiser and passed by a majority 5 to 1 roll call vote, with Director Stone voting nay, staff was authorized to retain Mary L. McMaster as special legal counsel to represent the District on a limited basis, with an initial budget of $7,500, in a code enforcement matter regarding the Hilgers' Caravan Outpost at 317 Bryant Street Ojai, California. 10. Contract Nos. 2016-05 & 2016-15 2016 Sewer Main Rehabilitation Project Mr. Palmer reviewed the scope of this project and explained the responsibilities Phoenix Civil Engineering has when providing construction management services, noting that Phoenix serves as the primary contact for the contractor. Upon motion of Director Burg, seconded by Director Kaiser and passed by unanimous roll call vote the Chairman was authorized to sign Contract No. 2016-05, Between Ojai Valley Sanitary District and Insituform Technologies for the construction of the 2016 Sewer Main Rehabilitation Project between the Ojai Valley Sanitary District and for a total not to exceed $748,460; and the Chairman was authorized to sign Contract No. 2016-15 with Phoenix Civil Engineering for the construction management services for the 2016 Sewer Main Rehabilitation Project in an amount not to exceed $38,747; and Budget Adjustment No. 2017-02 transferring $787,207 from the Collection System Replacement Reserve fund to the Major Expenditures-C/S account to cover the cost of this Project was adopted. \\OVSD-ARCHIVE\My Documents\Board Mtgs\2016\2016-07-25\Minut7acx
Page 5 11. Contract Nos. 2016-04 & 2016-16 2016 Sewer Lateral Connection Insert Project Mr. Palmer reviewed the need for this project to place "top hats" on selected laterals. Upon motion of Director Baggerly, seconded by Director Kaiser and passed by unanimous roll call vote the Chairman was authorized to sign Contract No. 2016-04, Between Ojai Valley Sanitary District and Robotic Sewer Solution, Inc. for the construction of the 2016 Sewer Lateral Connection Insert Project, for a total not to exceed $175,900; and the Chairman was authorized to sign Contract No. 2016-16 with Phoenix Civil Engineering for the construction management services for the 2016 Sewer Lateral Connection Insert Project in an amount not to exceed $11,567; and Budget Adjustment No. 2017-03 transferring $212,467 (which includes Contract Nos. 2016-04 & 2016-16 and $25,000 for Hamner, Jewell & Associates' work) from the Collection System Replacement Reserve fund to the Major Expenditures-C/S account to cover the cost of this Project was adopted. 12. Information Technology Equipment - Scanner/Plotter & NAS Server Replacements And SCADA Archive Upgrade Mr. Palmer reviewed the requested information technology equipment replacements. Upon motion of Director Baggerly, seconded by Director Greene and passed by unanimous roll call vote the General Manager was authorized to purchase the HP 400MFP from Source Graphics as identified in their proposal dated July 5, 2016, in an amount not to exceed $25,896.43; and the General Manager was authorized to purchase the NAS Server from Celeros as identified in their proposal dated July 17, 2016, in an amount not to exceed $24,225.32; and the General Manager was authorized to sign CPI Solutions' proposal to upgrade the SCADA archive system as outlined in their proposal dated June 27, 2016, in an amount not to exceed $21,720; and Budget Adjustment No. 2017-04 transferring $21,720 from the Treatment Plant Replacement Reserve into the Mgmt./Engrg/Tech Services-Office account to fund the upgrade of the SCADA archive system was adopted. 13. Resolution No. 2016-10 Conflict of Interest Code Upon motion of Director Baggerly, seconded by Director Stone and passed by unanimous roll call vote Resolution No. 2016-10, Resolution of The Board of Directors of The Ojai Valley Sanitary District Adopting a Conflict of Interest Code was adopted; and staff was directed to send a copy of the newly adopted code to the Ventura County Board of Supervisors' office. \\OVSD-ARCHIVE\My Documents\Board Mtgs\2016\2016-07-25\Minut ocx 7-6-
Page 6 14. Appointment of Vacant Committee Positions The Board discussed the vacant committee positions created by the resignation of Division 7 representative William C. Murphy. It was agreed that appointment of Directors to fill these vacant positions would be postponed until the August meeting. 15. Interview of Applicants To Fill Division 7 Vacancy Chairman Curtis requested the Clerk of the Board, Mrs. Krout, conduct a drawing among the four applicants to set the order in which they will be interviewed. Mrs. Krout had each applicant draw a number; the result of the drawing set the order of the interviews as follows: Orval Osborne Wayne Tate Daryl Kelley William Ulrich The applicants (in the order established from the drawing) introduced themselves explaining their background and their interest in serving on the Board. The Board asked each applicant numerous questions regarding their suitability and strengths as related to serving as a Director of the Board. William Weirick, 170 E. Aliso Ojai, addressed the Board speaking in support of Mr. Ulrich stating that he has known Mr. Ulrich for years and feels he would be a good candidate for the vacant position. Steve Quilici, 516 W. Eucalyptus Street Ojai, addressed the Board speaking in support of Mr. Ulrich for the vacant position referencing Mr. Ulrich's experience serving on the City of Ojai's Building Appeals Board. Betty Pitman, 180 Don Antonio Way Ojai, addressed the Board urging them to select someone for the vacant position that will be concerned about saving money to keep the sewer service bills low; Ms. Pitman stated she supported Mr. Ulrich for this position. 15a. Appointment of Person To Fill Division 7 Vacancy Mr. Palmer and Mr. Zirbel, District Legal Counsel, reviewed the options available to the Board regarding the vacant Division 7 position, from appointing someone to leaving the position open to be filled during the November general election. Director Burg expressed his desire for the Board to discuss each of the candidates pri \\OVSD-ARCHIVE\My Documents\Board Mtgs\2016\2016-07-25\Minuysx 7 -
Page 7 MOTION Director Greene made a motion, seconded by Director Baggerly to appoint Daryl Kelley to the vacant Division 7 position on the Board; this motion was defeated by a 2 to 4 roll call vote with Directors Burg, Stone, Kaiser and Curtis voting nay. The Board discussed the selection process and other options available to them. Upon motion of Director Stone, seconded by Director Kaiser and passed by unanimous roll call vote the process to appoint a person to the vacant Division 7 position was suspended leaving the vacant position to be filled through the November 8, 2016 general election process. Prior to the vote on the preceding motion, Mr. Palmer reviewed the legal timeline for filling a vacant position on the Board, noting that the remaining members of the Board have 60 days from the date of the vacancy which was July 8, 2016 to appoint a person to the vacant position; if the Board does not appoint a person, then after 60 days the County Board of Supervisions can appoint a person to fill the position. INFORMATION ITEMS FOR RECEIPT & FILE 16. Monthly Financial Reports Received and filed. 17. Quarterly Investment Report Addressed earlier on the agenda. 18. Staff Reports - Operations, Administration and Management of the District Received and filed. 19. Committee Reports Received and filed. 20. Director Reports On Meetings, Seminars, or Conferences Attended Director Burg provided a written report of the California Special Districts Association's Special District Leadership Academy Conference he recently attended. Director Burg gave a brief verbal report stating that the conference was a good refresher on Board responsibilities. Director Burg expressed his opinion that all Directors should attend this type of refresher at least as often as they are required to attend ethics training, which is every two years. Director Burg stated this training would also be very beneficial for any new Director. \\OVSD-ARCHIVE\My Documents\Board Mtgs\2016\2016-07-25\Minups,th,x
Page 8 21. Items of Interest/Correspondence/Articles Received and filed. 22. Discussion (items not on the agenda - three-minute limit) a. Public - (Public is requested to present completed speaker's card to Clerk of the Board) b. Board Members c. General Manager 23. Ad'ournment Mr. Palmer introduced Elizabeth Dubrin who was recently hired for the position of Project Manager; Ms. Dubrin begins her District employment on August 8, 2016. Ms. Dubrin addressed the Board sharing her schooling background and work history. The Board welcomed Ms. Dubrin to the District. Mr. Palmer updated the Board on various issues including the following: The Private Sewer Lateral (PSL) program has been operational for 7 months and is progressing very well. PSL repairs in the City of Ojai plumbers are charging $400 more than outside the City because the City's procedure to obtain the necessary permits is cumbersome for the plumbers requiring multiple trips to City offices. State performed an inspection of the District's pretreatment program several months ago; results were just received raising 2 issues: 1. Dairy Farmers of America (Pepsi) required to install a ph control system; they have already installed this; 2. Noble Labs in the Ventura Avenue area (a soap producer) must now be regulated as a full industrial user; staff is in the process of establishing the procedure to schedule occasional testing of Noble Labs influent. Chairman Curtis adjourned the meeting at 9:07 p.m. Stan Greene, Assistant Secretary APPROVED: William M. Stone, Vice Chairman \\OVSD-ARCHIVE\My Documents\Board Mtgs\2016\2016-07-25\Minutes.docx