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Minutes - Board - 2021-05-24COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MAY 249 2021 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, Brett Eckles, 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), Mark Esquer (District Engineer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II) Others present James Black (District representative at the Office of State Senator Dave Min) Jim Mosher (District resident) Mike Carey (CR&R Environmental Services and District resident) Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order — President Ooten President Ooten called the meeting to order at 4:30 P.M. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 Procedural: 2. Pledge of Allegiance - President Ooten President Ooten led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Scheafer Vice President Scheafer led the Invocation. 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 Ooten, Vice President Scheafer, Director Perry, and Director Eckles were present while Secretary Schafer was not present at this time. Procedural: S. 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. None at this time. Procedural: 6. Ceremonial Matters and Presentations. None at this time. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ooten opened public comments. Ms. Middenway stated that the Board received no written public comments. She noted that District resident, Jim Mosher, has requested to submit a public comment. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 Mr. Mosher shared that District Treasurer, Marc Davis, and his company were selected to be the City of Newport Beach's independent auditor for the next three to five years. Hearing no additional comments, President Ooten closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approves the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of April 13, 2021 Recommendation: That the Board of Directors approves the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting Minutes of April 26, 2021 Recommendation: That the Board of Directors approves the meeting minutes as presented. Action (Consent), Minutes: 4. Adopt Warrant Resolution No. CMSD 2021-11 Approving District Warrant Registers Recommendation: That the Board of Directors adopts Warrant Resolution No. CMSD 2021-11 approving District warrants for the Month of April in the amount of $791,199.86. Action (Consent): S. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approves the compensation and reimbursement of expenses as presented. Action (Consent): 6. Approve Payroll Transparency Disclosure for April 2021 Recommendation: That the Board of Directors approves and files this report. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the amount of $222,042.81 for April 2021 recycling and disposal services in the May 2021 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $222,042.81 for April 2021 recycling and disposal services to be ratified in the May 2021 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 23,014 and direct staff to prepare a warrant to CR&R Environmental Services for $238,505.59 for April 2021 collection Recommendation: That the Board of Directors accepts the occupancy count as presented using 23,014 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,505.59 to be ratified in the May 2021 warrant list. Action (Consent): 9. Receive and File the April 2021 Organics Tonnage Report Recommendation: That the Board of Directors receives and files this report. Action (Consent): 10. Receive and File the April 2021 Solid Waste Diversion Report Recommendation: That the Board of Directors receives and files this report. Action (Consent): 11. Approve the Investment Report for the Month of April 2021 Recommendation: That the Board of Directors approves the Investment Report for the month of April 2021. Action (Consent): 12. Receive and File the April 2021 Contracts Signed by the General Manager Recommendation: That the Board of Directors receives and files this report. Motion: To approve the Consent Calendar as presented. Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 4-0-1 Aye: Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Not Present: Arlene Schafer COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 Mr. Mosher discussed Item CS and thanked President Ooten and Director Perry for submitting their meeting notes. He expressed appreciation to Director Eckles for not billing the District for meetings other than the regular District Board meetings. He inquired about Director Perry's meeting notes regarding the Costa Mesa City Council's April 6th Study Session, and the City's discussion regarding redistricting. Director Perry stated that a comment was made about the 2020 census and its potential effect on redistricting. There was no further discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS Action: 1. Award Tanisha Tingling, Administrative Assistant I, $1S0.00 for her Idea to Improve the District's Sewer Manhole Management System Recommendation: That the Board of Directors approves rewarding Tanisha Tingling, Administrative Assistant I, $150.00 for idea to improve the District's sewer manhole management system. General Manager, Scott Carroll, discussed the Sewer Manhole Management System and its use of artificial intelligence. He noted that the current management platform is time consuming for users and that it requires multiple steps. He shared that Administrative Assistant I, Tanisha Tingling, suggested using an app called "My Tracks" that allows the District's Code Enforcement to plan his routes, record his vehicle's location while driving, and share information via email. He stated that, by tracking the location of the Code Enforcement vehicle during its video recording of sewer manhole covers, the information from the app will inform the user of which areas have and have not been recorded. He added that the app will eliminate the possibility of re-recording an area. He reported that this app is efficient for users and free to use. He recommended that the Board approves rewarding Ms. Tingling for her idea. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 Motion: To approve rewarding Tanisha Tingling, Administrative Assistant I, $150.00 for her idea to improve the District's sewer manhole management system. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 4-0-1 Aye: Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Not Present: Arlene Schafer There was no further discussion. Action, Receive and File: 2. Preliminary Biennial Budget Review for FY 2021-22 & FY 2022-23 Recommendation: That the Board of Directors receives and files this report. Mr. Carroll stated that the Board was going to review the preliminary budget at today's meeting, but District staff has decided to delay the review until the June Study Session. He noted that District staff is still working on the budget. Director Eckles expressed support for discussing the preliminary budget once it is complete. He inquired if there will be an opportunity to make adjustments to the budget after the June Study Session and before it is ratified at the June Board meeting. Mr. Carroll stated that the Board can schedule a special meeting in between the June Study Session and June Board meeting. District Counsel, Alan Burns, stated that August 10, 2021 is the deadline to provide information for the County of Orange tax rolls. He noted that the District will need to schedule a public hearing before August. Mr. Carroll stated that the Board can decide if they want to schedule a special meeting after the June Study Session. Mr. Burns recommended publishing a notice for the public hearing at the June Board meeting. Mr. Carroll confirmed that the notice has already been published for the June Board meeting. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 There was no further discussion. Action, Receive and File: 3. Receive and File Government Investing 101 Report Recommendation: That the Board of Directors receives and files this report. Mr. Carroll introduced District Treasurer, Marc Davis, to discuss the District's investing policy. Mr. Davis shared that the District previously discussed this item about 2 % years ago. He discussed allowable investments, including Local Agency Investment Fund (LAIF), US Treasuries, Federal Agency Securities, Certificates of Deposit, Negotiable Certificates of Deposit, Bankers Acceptances (BA), Commercial Paper, Medium Term Corporate Notes, and CalTrust. He reviewed common investment terminology that is used in his monthly investment reports. He discussed the five main points of the District's investment objectives, which include legality, safety, liquidity, diversification, and yield. He reviewed the District's investment philosophy. He described the method of investing and discussed the current investment environment. He shared the Federal Deposit Insurance Corporation (FDIC) insurance information, tradability, allowable percentage of CMSD's portfolio, risk, and the rates for the various investment types. Director Eckles inquired about the District's rate of liquidity. Mr. Davis discussed the District's rate of liquidity and noted that 42% of the District's portfolio matures within a year or less. He added that the level of liquidity will decrease over the next few months. Director Eckles inquired about last year's effect on the District's portfolio. Mr. Davis stated that the Investment Report for April 2021 contains a chart highlighting the lifetime rate of the District's portfolio. He noted that the District's rates drastically decreased due to the COVID-19 pandemic. President Ooten congratulated Mr. Davis on his contract with the City of Newport Beach. COSTA MESA SANITARY DISTRICT PAGE S MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 There was no further discussion, and the report was received. Action, Receive and File: 4. Approve Auditor Engagement Letter for Fiscal Year 2020-21 Audit Recommendation: That the Board of Directors receives and files this report. President Ooten provided an overview of the report. Mr. Carroll noted that the report includes an engagement letter that must be presented to the Board annually. Finance Manager, Kaitlin Tran, noted that the District is extending their two- year contract with Teaman, Ramirez & Smith (TRS), but that the purpose of this report is to present the engagement letter with TRS. She stated that the letter discloses their responsibilities and notes that the audit is scheduled to begin on October 4, 2021. She added that an audit report will be presented toward the end of the calendar year. She noted that the audit costs $10,000. Mr. Burns stated that this item requires approval from the Board. Motion: To approve and file the auditor engagement letter for Fiscal Year 2020-21 Audit. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 4-0-1 Aye: Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Not Present: Arlene Schafer 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 receives and files the report. District Engineer, Mark Esquer, inquired if the Board would like an update on each Capital Improvement Project (CIP). COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 President Ooten asked if each Board member read the report. Director Perry asked for an update on the President Pump Station project. Mr. Esquer stated that the project started in February. He noted that the contractor has been doing a good job. He added that the wet well, valve pit, and electrical conduit have been installed. He shared that they are waiting on Southern California Edison for the transformer. He noted that the COVID- 19 pandemic has caused a few delays. He stated that there is a shortage of resin needed to make polyvinyl chloride (PVC) sewer pipes. He reported that the project will be extended to accommodate for the delays and shortages. He noted that the pump station is transitioning from a lower to higher voltage transformer. He discussed the timeline for reopening the access to the park in late June or early July. He stated that he will correspond with the City of Costa Mesa once the District receives more project updates. He noted that he does not anticipate that the project will be completed by June 30, 2021. He added that it may not be completed until late August or early September. He suggested allowing a partial opening of the accessway during select hours. Secretary Schafer entered the meeting at 5:16 p.m. Vice President Scheafer expressed appreciation for the "Rainfall" section of the staff report. He asked where Norse Drive is located. Mr. Esquer stated that it is located near Newport Beach. Vice President Scheafer stated that the District has limits on change orders. He asked if Mr. Esquer anticipates major change orders as a result of the increases in costs for construction materials. Mr. Esquer discussed alternative construction materials. Discussion followed regarding other projects. Director Eckles noted that Norse Dive is a small cul-de-sac within his District voting division. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 There was no further discussion, and the report was received. G. TREASURER'S REPORTS None at this time. H. ATTORNEYS REPORTS None at this time. 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 Ooten) President Ooten shared a few updates regarding OCSD's Operations Committee. He stated that OCSD has an approved list of 18 design and planning consultants for the Engineering Department's small projects. He noted that each consultant can do a maximum of $600,000 in projects. He shared that OCSD is constructing a new headquarters and many other projects. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry shared that the SARFPA meeting is this Thursday, May 27, 2021 and that he will share a report at the next Board meeting. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 Secretary Schafer shared that ISDOC discussed the upcoming elections for the California Special Districts Association (CSDA). She discussed ISDOC's recent luncheon. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer discussed CSDA's Legislative Days event. She stated that she attended a CSDA Finance Committee meeting. She shared that CSDA has over 1,250 members. She reported that she will be flying to Sacramento in June for the next CSDA meeting. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer stated that he has nothing to report. He shared that SDRMA has a special Board meeting on June 3, 2021 to establish rates for reinsurers. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Secretary Schafer shared that she attended the District's Citizens Advisory Committee meeting on May 12, 2021 and the District's Citizens Environmental Protection Academy (CEPA). President Ooten stated that he attended the Water Advisory Committee of Orange County (WACO) meeting where desalination was discussed. He noted that the ongoing drought will have impacts on wastewater flows. He reported that he does not seek reimbursement from the District for OCSD meetings. Vice President Scheafer shared that he met with President Ooten, Mr. Carroll, Senator Min, and Senator Min's staff last month. He stated that it was a very beneficial meeting. He reported that Senator Min's office now has a much better appreciation for the District's services. He shared that State Senator Min's Chief of Staff attended tonight's meeting. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24, 2021 President Ooten shared that the District introduced Senator Min to Senate Bill (SB) 1383 and invited him to watch the District's CEPA video presentation. He discussed SB 1383 requirements and regulations. There was no further discussion. 1. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Vice President Scheafer commented that, earlier in the meeting, a member of the public unfairly criticized some Board members who attend more meetings than others. He noted that every meeting is an opportunity to help a Board member better serve the District. He noted that he does not seek reimbursement from the District for attending ceremonial meetings or social gatherings. Secretary Schafer stated that the Governor of California dictates the pay structure for sanitary board members. She noted that they can only request compensation for six meetings per month while water districts are allowed ten meetings per month. She shared that she attended about ten meetings last month despite not getting paid for all of them. She stated that she attended the meetings for the sake of the communities that she represents. There was no further discussion. M. ADJOURN TO CLOSED SESSION No closed session. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 24,2021 N. RECONVENE TO OPEN SESSION AND REPORT OF ACTION TAKEN No closed session. O. CLOSING ITEMS Procedural: 1. Adjourn President Ooten adjourned the meeting at 5:46 P.M. rlene Schafer Secretary Bob Ooten President