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Minutes - Board - 2020-09-28COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING SEPTEMBER 28, 2020 Note: This meeting was conducted utilizing teleconferencing pursuant to Government code Section 54952.2 and the Governor's Executive Orders in effect waiving some of the requirements of that Section. Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Alan Burns (District Counsel), Marc Davis (District Treasurer), Michael Benesh (Interim District Engineer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II) Others present Jim Mosher (District resident) Judith Gielow (Citizens Advisory Committee Member and District resident) Mark Monin (President of El Toro Water District) Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order — President Ferryman President Ferryman called the meeting to order at 4:30 P.M. Procedural: 2. Pledge of Allegiance — President Ferryman President Ferryman led the Pledge of Allegiance. Procedural: 3. Invocation — Vice President Ooten Vice President Ooten led the Invocation. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 Procedural: 4. 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.) District Clerk and Public Information Officer, Noelani Middenway, conducted roll call and noted that President Ferryman, Vice President Ooten, Secretary Schafer, Director Scheafer, and Director Perry were present at this time. Procedural: 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. General Manager, Scott Carroll, stated that the District received late communications from District resident, Jim Mosher. He added that the written communications have been provided to the Board. He shared that District staff will address Mr. Mosher's comments during the meeting. There was no further discussion. Procedural: 6. Ceremonial Matters and Presentations. None. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ferryman opened public comments. Mr. Mosher stated that he has three non -agenda comments to share. He commended District staff for creating an election webpage that provides easy access to division election information for residents. He noted that the webpage is very useful, but it is lacking information on how to contact the candidates. He commended District staff for promptly posting the written draft minutes of District meetings. He stated that he is unaware of any other public agency that posts draft written minutes immediately after meetings. He added that the District's minutes are very useful, thorough and well -written. He discussed the September 8, 2020 Study Session and reminded the Board about his comment regarding director compensation and per diem for meetings other than Board meetings. He noted that per diem compensation should only be offered if meeting attendance is required for a Board member. He added that the Healthy and Safety Code states that the Secretary of the Board is compensated differently than the rest of the Board and requested for this topic to be addressed by the District. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 Mr. Carroll stated that District staff will discuss the matter with District Counsel, Alan Burns, and present a report to the Board about the Board Secretary's compensation. Mr. Burns stated that usually a Board Secretary is paid differently for performing secretarial duties as opposed to having a District Clerk carry out such tasks. He added that the Board's position of Secretary is to provide signature to District items. He shared that the Board has determined which meetings are approved for compensation and that the meetings are listed in the District's Operations Code. He noted that if a meeting is not listed, then the Board member must request permission to attend on the District's behalf to receive compensation. Board President of El Toro Water District, Mark Monin, stated that he has served on the Independent Special Districts of Orange County's (ISDOC) Executive Committee for five years and has not missed one meeting. He noted that his opponent has not attended any ISDOC meetings. He discussed his qualifications for ISDOC's Executive Committee and asked the Board for their vote. Secretary Schafer stated that Mr. Monin has helped her with ISDOC's membership committee. President Ferryman inquired if the Board should have a separate discussion on this topic. Mr. Carroll noted that this item is on the agenda for discussion and action later in the meeting. Hearing no one else wishing to speak, President Ferryman closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of August 11, 2020 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting Minutes of August 24, 2020 Recommendation: That the Board of Directors approve the meeting minutes as presented. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2021-03 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2021-03 approving District warrants for the Month of August in the amount of $721,432.54. Action (Consent): 5. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 6. Approve Payroll Transparency Disclosure for August 2020 Recommendation: That the Board of Directors approve and file this report. Action (Consent), Minutes: 7. Approve the preparation of a warrant to CR Transfer in the amount of $226,178.78 for August 2020 recycling and disposal services in the September 2020 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $226,178.78 for August 2020 recycling and disposal services to be ratified in the September 2020 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 22,984 and direct staff to prepare a warrant to CR&R Environmental Services for $238,194.68 for August 2020 collection Recommendation: That the Board of Directors accepts the occupancy count as presented using 22,984 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for August 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,194.68 to be ratified in the September 2020 warrant list. Action (Consent): 9. Receive and File Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Approve the Investment Report for the Month of August 2020 Recommendation: That the Board of Directors Approve the Investment Report for the month of August 2020. Motion: To approve the Consent Calendar as presented. 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 There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS Action: 1. Consider Voting for One Candidate for President of the Independent Special Districts Orange County (ISDOC) Executive Committee Recommendation: That the Board of Directors vote for one candidate for the seat of ISDOC President. Mr. Carroll introduced the report and stated that the Board is to vote for one of the candidates for President of ISDOC. He shared that the candidates are Mark Monin, Board President of El Toro Water District, and Lucille Kring, President of Orange County Mosquito & Vector Control District. Secretary Schafer expressed her support for Mr. Monin and stated that Ms. Kring has not attended any ISDOC meetings. Motion: To vote for Mark Monin for the seat of ISDOC President. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 2. Consider approving a budget adjustment for Fiscal Year 2020-21 to transer $36,816 from the General Fund and transfer in the Solid Waste Fund. Recommendation: That the Board of Directors consider approving a budget adjustment for Fiscal Year 2020-21 to transfer $36,816 from the General Fund to the Solid Waste Fund. Finance Manager, Kaitlin Tran, provided report details. She stated that Fiscal Year 2019-20 is the first year the District budgeted and recorded the property tax revenues to the General Fund instead of the Solid Waste Fund. She noted that the District budgeted $320,000 in property tax revenues for fiscal year 2019-20 and has received $355,542. She added that the General Fund also received $1,274 in investment earnings for the fiscal year. She stated that, during the budget process, the Board of Directors approved $270,000 to be transferred to the Solid Waste fund to continue to help stabilize rates, and $50,000 to the Wastewater fund to contribute to the City of Costa Mesa for the Portable Restroom at the Bridge Shelter. She reported that, after the transfers were complete, the General Fund had a balance of $36,816. She stated that District staff recommends that the Board approves the budget adjustment to transfer $36,816 from the General Fund to the Solid Waste Fund to continue to help stabilize rates. She shared that the Board COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 could decide to alternatively leave the funds in the General Fund or request more information from District staff. Director Perry recommended that the Board hear from Mr. Mosher. Mr. Mosher inquired about the funds becoming restricted after the transfer. He stated that it would seem prudent to leave the funds in the General Fund so that they remain unrestricted. Mr. Carroll and Ms. Tran confirmed that the funds would become restricted after the transfer. Director Perry inquired if the transfer of such funds has been a past practice of the District. Ms. Tran noted that the District has approved of such transfers in the past. Motion: To approve a budget adjustment for Fiscal Year 2020-21 to transfer $36,816 from the General Fund to the Solid Waste Fund. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 3. Consider approving the transfer out $109,000 from the Asset Management Fund, transfer into the Wastewater Fund and to appropriate $109,000 to CIP #332, Bristol Sewer Siphon Repair Recommendation: That the Board of Directors consider approving the transfer out $109,000 from the Asset Management Fund, transfer into the Wastewater Fund and to appropriate $109,000 to CIP #332, Bristol Sewer Siphon Repair. Mr. Carroll provided report details. He stated that, unfortunately, CIP #332 has been a nightmare. He shared that it has been extremely challenging to remove concrete from the pipes and that it has taken longer than expected. He noted that the pipes contain years of buildup from concrete and debris and that it has been a very labor-intensive project to pump the water out and remove the concrete. He stated that the contractor is requesting an additional $109,000 to complete the re- lining of the pipes and remove all concrete. He added that the District expects this to be the final request from the contractor. Director Perry inquired if the contractor is going to re -concrete the pipes after completing the re -lining. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 Mr. Carroll stated that the contractor is going to slip line the pipes to avoid future breakage. Mr. Mosher inquired if the built-up concrete is coming from a lining of the pipe that is flaking off or if it is some type of construction debris that is coming through the pipes. Interim District Engineer, Michael Benesh, stated that, at some point in time, someone dumped concrete into the sewer, which has nearly blocked the pipes. Director Perry inquired if the project is near completion. Mr. Benesh stated that one pipe is completely repaired while the other pipe is close to completion. Director Perry inquired if the cost of the project is justified. Mr. Benesh confirmed that the cost is justified and stated that it is extremely difficult to remove concrete. Vice President Ooten inquired if the District should consider locking manholes to prevent contractors from dumping concrete into the sewer. He requested recommendations from Mr. Benesh to combat this issue. Mr. Benesh shared that the new manholes that are being installed are lockable. Vice President Ooten inquired if the manholes near the sewer siphons will be lockable. Mr. Benesh stated that he believes they are. Motion: To approve transferring $109,000 out of the Asset Management Fund into the Wastewater Fund, and to appropriate $109,000 to Capital Improvement Project #332 Bristol Sewer Siphon Repair. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 4. Consider approving Special Holiday Pay the Day Before Thanksgiving and Christmas Recommendation: That the Board of Directors consider approving Special Holiday Pay the Day Before Thanksgiving and Christmas. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 Administrative Services Manager, Dyana Bojarski, presented report details. She stated that, historically, customer activity at District offices during the day before Thanksgiving and the day before Christmas has been slow. She noted that, in previous years, the Board has authorized a revision to normal operating hours on both days. She added that, since 2010, District offices have closed at 12:00 p.m. on the Wednesday before Thanksgiving and on December 24t". She highlighted that this allows staff sufficient time to travel to their destinations during the busy holiday season. She stated that, at the Board of Directors Regular Board Meeting on November 21, 2019, the Board suggested taking into consideration making this a full day holiday closure for District staff. She noted that, additionally, the Board requested District staff to determine how much activity occurs at the office on those days and then report back to the Board. She shared that District staff reported the requested findings to the Board at the March 10, 2020 Study Session. She discussed the recorded activity for November 27, 2019, the day before Thanksgiving, and stated that no permits were issued and only two members of the public visited District offices. She noted that, of those two visitors, one was a previously scheduled appointment. She added that the phones were unusually light with only two telephone calls throughout the day. She discussed the recorded activity for December 24, 2019, the day before Christmas, and stated that no permits were issued, only two phone calls were received, and no members of the public visited District offices. She added that, during the hours of office closure, District staff has had the option of working a full day while offices are closed or they can voluntarily use their accrued leave time, such as, vacation, floating holiday, compensatory time, or executive leave. Ms. Bojarski stated that District staff is recommending that the days before Thanksgiving and Christmas be called "Special Holidays" during which employees will be paid for their normally scheduled work hours as holiday hours for those two days. She reported that District staff believes adding "Special Holidays" as a part of the District's benefits package can both entice job candidates and offer current staff members additional flexibility, while contributing to a healthy work -life balance and higher employee satisfaction. She added that, currently, part-time employees are not eligible for holiday pay, so they will not be eligible for "Special Holiday" pay. She noted that, currently, District employees have ten paid holidays and two floating holidays. She explained that the floating holidays can be used at any time during the fiscal year and that the purpose of the floating holiday is to allow personal days that employees can use at any time during the year over and above any vacation, sick or other paid leave time. She added that floating holidays allow employees to take paid time off when their religious or traditional practices don't match the Federal holiday schedule, for example, Hanukkah, Passover, Good Friday, Lunar New Year, or for any other reason without having to use a vacation day. She shared that floating holidays also come in handy for unexpected events or emergencies if paid time off has been exhausted. She stated that any excess floating holiday balances are paid out to employees at the end of each fiscal year and that floating holiday hours are not carried over into the next year. She stated COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 that the benefit of having floating holidays is that staff has discretion on how and when to use their leave. She highlighted that, if the Board were to require staff to use their floating holiday for the days before Thanksgiving and Christmas, then it would be considered a reduced benefit. Ms. Bojarski shared that Orange County Sanitation District offers paid time off the day before Christmas, Mesa Water District has Special Holiday Pay the day before Christmas and the day before New Year's Day, and that the City of Costa Mesa closes for two weeks surrounding the Christmas and New Year's Day holidays, but only Christmas and New Year's Day are considered paid holidays. She added that Midway City Sanitary District (MCSD) offers employees the option of selecting any date as a paid holiday for celebrating their particular tradition, hero or celebration and that, after one full year of service, MCSD employees are also granted two additional days off, one for their birthday and the other at a time designated by the employee. Ms. Bojarski reviewed public comments received from Mr. Mosher in which he noted that the City of Newport Beach closes City Hall from December 24th through January 1st, and City employees are required to use their accrued leave time for that period with the exception of December 25th and January 1st, which are paid holidays, as well as the afternoons of December 24th and December 31 st. She stated that current District procedures for all holidays and revisions to regular operating hours include notifying the public by posting the information on the District's website, signage on the front lobby doors, social media, and notice through GovOutreach. She discussed the estimated salary costs for District employees per day, which is approximately $7,500. She noted that there will be no impact on the Fiscal Year 2020-21 budget. She added that there will be a minimal savings in utility costs at both District facilities. She stated that, if the Board approves District staff's recommendation, then they will bring back an ordinance for adoption and inclusion in the District's Operations Code. Mr. Mosher stated that the City of Newport Beach is more comparable to the District rather than the City of Costa Mesa because it has employees that oversee trash and sewer services. He noted that Newport Beach employees receive a total of 11 holidays, which includes the half day off before Christmas and New Year's Day. He added that that these employees receive no holiday pay for the day before Thanksgiving. He stated that it seems like the District is already more generous and that this additional request would make the District's benefits package even more generous than the City of Newport Beach's. Motion: To approve "Special Holiday" pay on the days before Thanksgiving and Christmas. Motion by Mike Scheafer, 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 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 There was no further discussion. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the Monthly Capital Improvements Project Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Benesh introduced the Capital Improvements Project Status report. He stated that the President Pump Station bids were opened on September 16, 2020 and that he is working on a contract to present to the Board. He shared that a site meeting was scheduled for today for the Orange County Fairgrounds' smoke testing, but the contractor had to reschedule for later this week. Vice President Ooten stated that the District received good bids for the President Pump Station that were all near the engineer's estimate of $1.6 million. Mr. Benesh stated that the bids were within three percent of the estimate. Vice President Ooten inquired if the District has the proper amount of funds budgeted for the project and inspection. Mr. Benesh confirmed that the District has enough funds budgeted for the total project. There was no further discussion, and the report was received. G. TREASURER'S REPORTS None at this time. H. ATTORNEY'S REPORTS Mr. Burns shared that the California Attorney General issued a clarifying opinion on the Brown Act in which an elected official may respond to an email that was sent by a constituent, as long as the elected official does not include all of his or her fellow officials in the reply. He stated that if the elected official were to include his or her fellow officials in the response, then he or she would be deliberating on a matter outside of a properly noticed Brown Act meeting. He noted that the Attorney General's opinion also discussed the matter of placing an item on a meeting agenda for discussion. He stated that agenda items without an action verb, such as, "discuss or consider," cannot receive an action from the Board unless a preface is placed on the agenda stating that the Board may take action on anything being discussed. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 There was no further discussion and the report was received. I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day's service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ferryman and Vice President Ooten) President Ferryman stated that OCSD is going out to bid for their new site and that they are conducting tours of the Groundwater Replenishment Facility. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry stated that he and President Ferryman attended the SARFPA meeting. He shared that SARFPA received a report from Jim McConnell that the Santa Ana Main Street project has received $592 million from Congress for next year. He noted that this amount should be enough to complete the project. He added that Congress is out for the month of October for the upcoming elections. He stated that SARFPA received a report on the Westminster Watershed project, which is focused on the prevention of major flooding. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer stated that ISDOC was named Special Chapter of the year at its recent meeting. She added that ISDOC discussed their upcoming election and the candidates. She noted that they received the Treasurer's report and discussed how ISDOC can help its special districts. She shared that she presented a report on the California Special Districts Association and that Director Scheafer presented a report on the Orange County Council of Governments (OCCOG). She stated that there will be an ISDOC luncheon on October 29, 2020. She noted that ISDOC discussed their slate election in which she is running for Vice President. Secretary Schafer shared that she attended the Water Advisory Committee of Orange County (WACO) meeting on September 11, 2020 in which they discussed the history of Seven Acres and a water policy meeting on September 23, 2020 in which they discussed the Bay Delta. 4. California Special Districts Association (CSDA) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 Secretary Schafer shared that she is running for the position of Secretary for CSDA's Executive Board. She noted that she is unsure if anyone is running against her and that only the CSDA Board will be voting. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Director Scheafer stated that there is nothing to report for SDRMA. He shared that SDRMA has a Board meeting in November. 6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Ooten discussed the WACO meeting and stated that the overarching goal is to have drinking water accessible to everyone. Director Perry stated that he submitted a report on his other meetings to the District Clerk. He noted that he attended a Costa Mesa City Council meeting. He shared that the City is doing a project involving street construction for bicycle lanes and sidewalks on Adams Avenue from Royal Palm Drive to the river jetty. President Ferryman stated that he attended the recent OCCOG meeting in which they discussed bicycle lanes and homelessness. Vice President Ooten stated that the OCSD meeting included a discussion about records management. He requested for District staff to update the Board on their records destruction process. J. OLD BUSINESS None at this time. K. NEW BUSINESS Director Perry stated that he reviewed CalRecycle's report on Assembly Bill 1826, which states that 90% of businesses and multifamily properties are required to recycle organic waste by December 2020. Vice President Ooten recommend having AB 1826 as a Study Session item so the District can discuss the language of the bill and how it applies to the City of Costa Mesa. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD SEPTEMBER 28, 2020 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Secretary Schafer thanked the Board for supporting her candidacy for ISDOC's Executive Committee. She stated that she is currently running unopposed. There was no further discussion. O. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting at 5:20 P.M. AM6 _ - Secretary Ja s Ferryman Pre ident