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Minutes - Board - 2020-02-11COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION FEBRUARY 11, 2020 Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None. Staff present Scott Carroll (General Manager), Kaitlin Tran (Finance Manager), Gina Terraneo (Management Analyst II & Acting District Clerk), Nabila Guzman (Management Analyst 1), Ed Roberts (Code Enforcement Officer), Angela Colunga (Office Specialist) Others present Jim Mosher (District resident), Judith Gielow (Citizens Advisory Committee Member), Blair Welch (Tripepi Smith) Meeting called to order at 9:30 A.M. A. OPENING ITEMS Procedural: 1. 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.) President Ferryman called the meeting to order at 9:30 A.M. Management Analyst II and Acting District Clerk, Gina Terraneo, noted that President Ferryman, Vice President Ooten, Secretary Schafer, Director Scheafer, and Director Perry were present at this time. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ferryman opened public comments. Seeing no one wishing to speak at this time, he closed public comments. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 111 2020 C. ITEMS OF STUDY Action, Receive and File: 1. January 2020 Code Enforcement Officer Report Recommendation: That the Board of Directors receive and file this report. Code Enforcement Officer, Ed Roberts, presented report details. He noted that he conducted 5 scavenging investigations during the month of January. Director Perry asked if the scavengers approached on Peppertree Lane were recurring violators. Mr. Roberts affirmed that both scavengers were recurring violators. He noted that issuing administrative citations is not likely to have an impact, since the majority of scavengers he encounters are indigent and/or homeless. Director Perry asked if Mr. Roberts notifies homeless individuals about Costa Mesa's bridge shelter. Mr. Roberts confirmed that he shares information about all the resources made available to homeless individuals by the City of Costa Mesa. Secretary Schafer asked if the recent windy weather impacted trash collection and the amount of trash carts left in the street. Mr. Roberts commented that lightweight carts can sometimes blow over, but shared that there were no notable incidents. He reported that he issued 107 notices for trash carts left in public view, which include several instances on 19th Street and Placentia Avenue. He commented that residents in this area use their trash carts to reserve parking spots, and he noted that there is a high rate of turnover in this neighborhood. There was no further discussion and the report was received. General Manager, Scott Carroll, noted that CR&R did not provide their January billing in time for the regular Organics and Solid Waste Diversion reports to be included in today's agenda. He added that they will be presented to the Board at the March Study Session. Action: 2. Reclassifying The Part -Time Accounting Clerk Position to Full-time Status Recommendation: That the Board of Directors direct staff to bring this item back to the February 24, 2020 regular Board of Directors meeting to consider approving reclassifying the part-time Accounting Clerk position to full-time status. Finance Manager, Kaitlin Tran, provided report details. She noted that the Finance department formerly consisted of 3 full-time positions (Finance Manager, Senior Accountant, and Administrative Assistant II), but now has 2 full-time positions (Finance Manager and Accountant) and 1 vacant part-time Accounting Clerk COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 11, 2020 position. She explained that, as a result, the department has struggled to keep up with accounts receivable, cash receipts, and general support tasks. Ms. Tran noted that there are sufficient funds available in the Solid Waste and Wastewater Funds to cover a full-time Accounting Clerk for the remainder of fiscal year 2019-2020 if the position is filled in May, and an additional $45,500 would be needed to cover the position's fully burdened cost in fiscal year 2020-2021. She noted that funds could be transferred from part-time salaries, anti -scavenging, and tuition reimbursement. Lastly, she requested that the Board direct staff to bring this item to the February Board Meeting to consider approving reclassifying the part-time Accounting Clerk to full-time status. Director Perry asked if the Accounting Clerk position would be a new position. Mr. Carroll clarified that staff is requesting to change the Accounting Clerk position from part-time to full-time. Director Scheafer commented that the Board approved a similar position change for the Maintenance Assistant position. Discussion followed regarding the evolution of the Accounting Clerk position and the growth of the agency. Director Scheafer inquired about the position's required qualifications. He asked if the District has any incentives for becoming a Certified Public Accountant (CPA). Mr. Carroll noted that the District does not require the position to be a CPA; however, the District encourages its staff to pursue professional development through its tuition reimbursement program. Vice President Ooten asked if the current Administrative Assistant supports the finance department. Mr. Carroll noted that the current Administrative Assistant supports the Administrative Services Manager with Human Resources related tasks. Director Perry recommended increasing the qualifications needed for the Accounting Clerk position. Mr. Carroll noted that the position has traditionally been entry level. Motion: To direct staff to bring this item back to the February 24, 2020 regular Board of Directors meeting to consider approving reclassifying the part-time Accounting Clerk position to full-time status. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 111 2020 Fhere was no further discussion. Action, Receive and File: 3. Update — Communications Support and Strategy RFP Recommendation: That the Board of Directors discuss this item and direct staff to bring this item back to the Solid Waste Ad Hoc Committee for a recommendation to the Board. Management Analyst I, Nabila Guzman, presented report details. She noted that the District released a request for proposal (RFP) for communications support and strategy and received 5 proposals. She explained that the top 3 rated proposals were interviewed by the Solid Waste Ad Hoc Committee, and the Committee requested that the firms each provide an updated 12-month cost proposal for a more focused scope of service. Ms. Guzman provided an overview of the updated scope of services and noted that the staff report contains the updated cost proposals. She recommended that the Board direct staff to bring the item back to the Solid Waste Ad Hoc Committee to review the updated cost proposals and then make a recommendation to the Board. Director Scheafer commented that he is surprised by the costs listed in the updated proposals. He noted that the proposal from JPW Communications increased significantly, while the proposal from CV Strategies remained low. Ms. Guzman commented that she is satisfied with the proposals, since they reflect the true cost of the services for a 12-month period. She noted that JPW Communications' original proposal only reflected the cost of a communications plan and a $25,000 allotment of funding for the implementation of select services. She also noted that CV Strategies did not include the costs of travel time and mileage in their proposal, while JPW Communications did include these costs. Discussion followed regarding the updated proposal costs. Director Scheafer discussed the interview process that the Solid Waste Ad Hoc Committee conducted. He commended all three public relations firms on their presentations and noted that the Committee selected JPW Communications as their top choice after the interviews. He added that the updated proposals may impact the Committee's choice, since the total costs have changed. Vice President Ooten indicated agreement that all three firms presented well. He commented that he considered the project managers when evaluating the presentations. He noted that CV Strategies and JPW Communications included their project managers in their presentations, while Tripepi Smith's presentation was led by the firm's President. Ms. Guzman noted that Tripepi Smith had their project manager present during their presentation. Vice President Ooten noted that their project manager did not get a chance to speak, although the presentation time was limited. He commented that Tripepi COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 11; 2020 Smith seemed to understand the proposal and the focus of the project better than the other firms. He added that their cost was the highest at the time of the interviews but is no longer the highest given the updated proposals. He commented that he is comfortable with any of the firms, but he requested staffs input regarding which firm can best meet the District's needs. He noted that CV Strategies did not provide a description to explain their updated costs. Director Perry suggested inviting the Solid Waste Ad Hoc Committee to discuss the three firms at the next Study Session. Director Scheafer commented that he was initially reluctant to pursue hiring a public relations firm, but he is now more inclined to support the selection of a public relations firm. He noted that he is concerned about a potential consolidation effort. Mr. Carroll reiterated the staff recommendation and noted that today's discussion was intended for the Solid Waste Ad Hoc Committee Members to share their input about the interviews with the rest of the Board. President Ferryman commented that if these firms are all able to provide the same services at the same level of quality, the District should pursue the firm with the lowest cost. Mr. Carroll noted that the Board can also direct staff to proceed with drafting a contract with one of the firms if they are ready to do so. Secretary Schafer expressed interest in getting a recommendation from the Solid Waste Ad Hoc Committee and requested additional explanation of the interview process. Director Scheafer explained that the scope of work includes enhancements to the District's public outreach efforts. He noted that the majority of the public is not aware of what the District does, and that staff may not be capable of conducting the level of public outreach that is needed. He reiterated that he would be comfortable hiring any of the three firms based on their demonstrated abilities. President Ferryman asked how this firm would interact with the District's existing public relations consultant. Director Scheafer explained that the current consultant, Faubel Public Affairs, would work with the new firm. Mr. Carroll explained that Faubel Public Affairs has different objectives and a different scope of work. President Ferryman commented that there may be some overlap between the two firms. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 111 2020 Discussion followed regarding next steps. Ms. Guzman suggested that the Solid Waste Ad Hoc Committee meet again to determine which firm they will recommend to the Board, and then the recommendation will be brought to the Board with a proposed contract. Vice President Ooten indicated agreement that the Solid Waste Ad Hoc Committee should meet again. He commented that it is important to ensure that the selected firm understands the scope of services, and he requested to hear more input from staff at the Committee meeting. District resident, Jim Mosher, commented that the change in proposal costs is odd and has changed the ranking of the firms dramatically. He indicated concern regarding the discussion of the firms and the motivations behind the outreach efforts. He noted that he was under the impression that the firm would focus on meeting state mandated recycling goals rather than District branding and prevention of consolidation efforts. Mr. Mosher pointed out that the Financial Review portion of the staff report states that the costs would be equally divided between the Solid Waste Fund and the Wastewater Fund. He commented that as a wastewater -only customer, he does not believe this is a fair apportionment given the scope of service's focus on solid waste programs. Director Perry indicated agreement with the notion that the selected firm should assist with increasing waste diversion efforts. Director Scheafer noted that all three firms presented ideas about how to increase waste diversion efforts. He added that consolidation prevention will not be a main objective for the selected firm, but that increasing public awareness may help prevent these efforts. Vice President Ooten commented that the Solid Waste Ad Hoc Committee should review the scope of services. Ms. Guzman noted that the scope of services was revised to make it more concise and focused. She explained each of the scope of services' awareness campaigns: mixed waste carts, Organics Recycling Program, Sewer Inspection Rebate Program, and special solid waste programs. Vice President Ooten indicated support for the proposed campaigns, but he commented that the initial focus was to increase waste diversion. Director Perry suggested that the Solid Waste Ad Hoc Committee remain in place after making a recommendation for the public relations firm in order to come up with ideas to help the District increase its waste diversion efforts. The Board of Directors directed staff to bring this item back to the Solid Waste Ad Hoc Committee to discuss the revised proposals, funding apportionment, and COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 111 2020 District staffs recommendation. The Board then asked that the Committee make a recommendation to the Board of Directors for consideration. There was no further discussion. Action, Receive and File: 4. Refund of Wastewater and Solid Waste Assessment — APN 422-102-09 Bernard Street Recommendation: That the Board of Directors provide direction to staff on a refund for APN 422-102-09. Ms. Guzman provided report details. She stated that the District resident is requesting a refund for overcharges on their wastewater and solid waste assessment fee but has not specified the amount of years for the refund. She noted that the homeowner's single-family home located within the District was misclassified as a multi -family home by the City of Costa Mesa. Ms. Guzman added that the District only has records on the property for the last 15 years. The Board discussed the previous reimbursement given to a District resident for overcharges on their wastewater and solid waste assessment fee. Mr. Carroll noted that the previous reimbursement was granted due to the District being at fault and incorrectly classifying the resident's property as a multi -family property. He clarified that the property of the current case was misclassified by the City of Costa Mesa. Ms. Guzman stated that the District bases its charges on property records collected by the City of Costa Mesa since the City used to be responsible for sanitation. She noted that when the homeowner inquired about a refund, she contacted the City's Planning Department which still has the property listed as a multi -family property. Director Perry requested a legal review from District Counsel. Mr. Carroll noted that District staff will consult with District Counsel. He stated that the justification for the previous case is not the same for the current case. He added that the District can legally issue a refund for the last six months according to State law. Director Scheafer requested District staff to draft a resolution or policy on this topic. He commented that there is some personal responsibility placed on the homeowner for checking their property tax bill. He recommended consulting District Counsel and drafting a policy that matches State laws. Vice President Ooten inquired if staff has conducted a study to find out how many other District properties are misclassified. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 111 2020 Ms. Guzman stated that for the past three years District staff and CR&R have been working on reconciliation of District properties that receive trash and sewer services. She noted that staff is currently in the process of verifying all properties located within the District's service area. She acknowledged that it is rare to find a misclassified property. She added that the District has found a few properties with District trash carts, but no account set up for service. President Ferryman discussed past property classification efforts by the District. Director Perry commented that about 15 years ago the District received about five to ten refund requests at every Board meeting. He stated that the District's current property records are very accurate. Mr. Mosher discussed a homeowner's responsibility for checking their property tax bill for sanitation charges. He noted that most homeowners are presumably not aware of whether their sanitation charge is correct or incorrect. He referenced the District's Operations Code's policy regarding refunds and noted that if the District grants a refund that it is not legally required to issue, then it can be considered a gift of public funds. He suggested that the legal analysis should also address the reverse of this issue. He recommended that the District drafts a policy stating the legal requirements for collecting payments from a property that has been misclassified as a single-family property but is a multi -family property. Discussion followed regarding next steps. Director Perry recommended that staff review the District's refund policy and update if needed. The Board of Directors directed staff to bring this item back to the Board and present a six-month refund for the wastewater overcharges and a one-year refund for solid waste overcharges. Director Scheafer noted that if the District resident would like a larger refund, then she should approach the City of Costa Mesa. There was no further discussion. Action: 5. Quarterly Legislative Update — Quarter 1 Recommendation: That the Board of Directors receive and file this Quarterly Legislative Update. Ms. Terraneo provided report details. She discussed AB 1672, which would enact requirements for wipes to be clearly labeled to show that they are not flushable and to prohibit companies from making false representations about their flushing ability. She noted that most flushable wipes do not break down in water and cause dangerous obstructions in wastewater systems. She commented that staff, the California Special Districts Association, and the California Association of COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 11, 2020 Sanitation Agencies recommend supporting AB 1672. She discussed AB 161, which prohibits stores from printing receipts unless a customer requests a copy. She discussed AB 291, which establishes a local emergency preparedness and hazard mitigation fund for local governments. She discussed AB 992, which seeks to clarify the Brown Act regarding the use of social media by Board members. She stated that it would specifically allow members of legislative bodies to safely participate in social media discussions with constituents if the majority of members do not respond directly or discuss agency business. She discussed AB 15097 which seeks to place greater responsibility on manufactures of lithium -ion batteries. Director Perry inquired about AB 1509. Ms. Terraneo stated that the bill would require manufactures to provide a list to Cal Recycle of all lithium -ion batteries that they produce so that Cal Recycle can ensure that the batteries are being properly disposed. Director Perry asked if the Orange Coast College (OCC) Recycling Center collects lithium -ion batteries. Ms. Terraneo noted that the OCC Recycling Center accepts household batteries but no lithium -ion batteries. She discussed AB 1567, which sets a requirement for all relevant agencies to be involved in the coordination of State goals related to organic waste diversion, climate change, and air quality. She noted that the goal is to receive input from all agencies in order to reduce the chance of conflicting regulations. She discussed AB 1840, which requires Cal Recycle to create a plan to increase beverage container recycling efforts and to ensure that people have access to recycling centers. Director Scheafer inquired if there is any discussion regarding beverage container recycling centers closing. He asked if the State is trying to create more centers or increase awareness of current centers. Ms. Terraneo stated that the bill is focused on creating more beverage container recycling centers. Director Scheafer noted that AB 1840 does not delineate whether these new centers will be public or privately operated. Ms. Terraneo discussed SB 424, which seeks to reduce the amount of waste produced from cigarette butts and single -use electronic cigarettes. Director Scheafer inquired about SB 424 and discussed the current efforts to clean up cigarette butts by the Surfrider Foundation. He noted that the bill aims at prohibiting people from buying cigarettes and cigars. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 11, 2020 Ms. Terraneo discussed SB 667, which requires Cal Recycle to conduct a needs assessment to determine how the State's organic waste goal of 75% diversion is going to be achieved and includes reviewing technological and infrastructure needs on a local and state level. Director Perry asked if there are stores in Costa Mesa that accept lithium -ion batteries. Mr. Carroll stated that Home Depot collects lithium -ion batteries. Director Perry recommended researching the stores that accept such batteries and including them in an article for the next newsletter. Vice President Ooten discussed the bills that focus on organic recycling and the State's goal of 75% diversion. He commented that most municipalities are struggling to reach the state's diversion goal. He expressed his support for the 75% diversion goal but noted that the State does not seem to know how it will reach that goal. Director Perry inquired when the State will begin fining municipalities. Ms. Guzman stated that SB 1383 does not go into effect until 2022 and that Cal Recycle has not yet adopted the final regulations for SB 1383. She noted that there will be a delay in the fining process. Vice President Ooten asked if the District's diversion rate will decrease due to green waste no longer being accepted as Alternative Daily Cover (ADC). Ms. Guzman stated that green waste is still considered recycling according to CR&R. She shared that the County's landfills have land set aside for composting. She noted that if CR&R cannot take the green waste to their facilities, then they can take it to the County's landfills at an additional cost. Director Perry asked about the percentage of green waste that is considered ADC. He also asked who the District is currently working with at CR&R. Ms. Guzman stated that about 3,000 tons of green waste is currently being counted as recycling credit but could potentially be counted as landfill waste by the State's new regulations, and thus reduce the District's diversion rate. She noted that the District is working with Sustainability Supervisor, Kristy Morehead. There was no further discussion. Action: 6. Robin B. Harriers & Associates, Inc. Update Recommendation: That the Board of Directors receive and file this report. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD FEBRUARY 111 2020 Mr. Carroll provided report details. He mentioned that Michael Benesh of Robin B. Hamers and Associates will be presenting his report on the District's Sewer Master Plan to the Board of Directors at the next Study Session meeting scheduled for March 10, 2020. Vice President Ooten inquired if Environmental Engineering Consulting (EEC) has performed the hydraulic analysis for the Sewer System Master Plan. Mr. Carroll shared that EEC has completed their analysis. President Ferryman discussed the memorial ceremony for Rob Hamers scheduled for May 2020. There was no further discussion. D. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments Vice President Ooten recommended addressing Mr. Mosher's comment about having a District policy for under -charging District residents. Director Schafer shared the Independent Special Districts of Orange County's Form 700 workshop with the Board of Directors. There was no further discussion. Procedural: 2. Adjournment President Ferryman adjourned the meeting at 10:48 A.M. q5ev� JJes Ferryman Pr ident