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Minutes - Board - 2021-06-28COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING JUNE 28, 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 Jim Mosher (District resident) Judy Gielow (Citizens Advisory Committee Member and District resident) Matthew Fuller (Acorn Technology Services) 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 COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 President Ooten called the meeting to order at 4:30 P.M. 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, Secretary Schafer, Director Perry, and Director Eckles were present. 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. 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 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 JUNE 28, 2021 Mr. Mosher stated that the draft meeting minutes for the May Board meeting indicate a plan to reopen District Headquarters to the public and asked if the reopening has happened yet. He noted that the District website shows that District Headquarters is still closed. General Manager, Scott Carroll, shared that the District plans on bringing staff back to District Headquarters and reopening to the public on July 6, 2021. 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 Special Meeting Minutes of May 6, 2021 Recommendation: That the Board of Directors approves the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Study Session Minutes of May 11, 2021 Recommendation: That the Board of Directors approves the meeting minutes as presented. Action (Consent), Minutes: 4. Approve the Board of Directors Regular Meeting Minutes of May 24, 2021 Recommendation: That the Board of Directors approves the meeting minutes as presented. Action (Consent), Minutes: 5. 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 May 2021 COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Adopt Warrant Resolution No. CMSD 2021-12 Approving District Warrant Registers Recommendation: That the Board of Directors adopts Warrant Resolution No. CMSD 2021-12 approving District warrants for the Month of May in the amount of $1,214,424.34. Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the amount of $199,529.84 for May 2021 recycling and disposal services in the June 2021 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $199,529.84 for May 2021 recycling and disposal services to be ratified in the June 2021 warrant register. Action (Consent): 9. Accept the occupancy count as presented as 23,024 and direct staff to prepare a warrant to CR&R Environmental Services for $238,609.22 for May 2021 collection Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $238,609.22 for May 2021 recycling and disposal services to be ratified in the June 2021 warrant register. Action (Consent): 10. Receive and File the May 2021 Organics Tonnage Report Recommendation: That the Board of Directors receives and files this report. Action (Consent): 11. Receive and File the May 2021 Solid Waste Diversion Report Recommendation: That the Board of Directors receives and files this report. Action (Consent):12. Approve the Investment Report for the Month of May 2021 Recommendation: That the Board of Directors approves the Investment Report for the month of May 2021. Action (Consent): 13. Receive and File the May 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. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 289 2021 Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. D. PUBLIC HEARINGS Action: 1. Adopt Ordinance No. 132 and Resolution No. 2021-939 confirming Wastewater Annual Charges and Resolution No. 2021-940 confirming Solid Waste Annual Charges respectively for FY 2021-22 to be collected with the General Taxes and Direct the District Clerk to File with the County Auditor. Recommendation: The Board of Directors adopt Ordinance No.132 and Resolution No. 2021-939 confirming the Wastewater and Resolution No. 2021-940 confirming the Solid Waste Annual Charges respectively for FY 2018-19 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. President Ooten introduced the items and resolution names and numbers. He opened the public hearing and explained its purpose. He noted that this is an opportunity to protest. Mr. Mosher stated that he is not protesting but has several comments to submit. He noted that the ordinance and resolution are confirming the rates. He added that the Wastewater rate resolution says that it is not changing the rate, but it does not indicate what rate is being confirmed. He shared that the rate can be found in the staff report but suggested that it be listed in the resolution. He inquired about charges for accessory dwelling units (ADU) and asked about the calculations for ADU square footage. He stated that it is difficult for customers to confirm the District's service rates on the District website. Mr. Carroll stated that District staff can make it easier for customers to find rate information on the District website. He noted that he is unsure about ADU calculations but proposed that they are based on the square footage of the building. He also noted that he is unsure about ADU charges. He added that he will report back with accurate information. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 District Engineer, Mark Esquer, stated that, per state legislation, the District cannot charge for ADUs but can charge for sewer inspection and plan check fees. He noted that the Orange County Sanitation District's (OCSD) wastewater treatment fee is also waived. He shared that ADUs are under special legislation that exempts them from some development fees that the District would normally collect. He confirmed that dwelling unit calculations are based on the square footage of the building and not the lot. He added that OCSD charges per bedroom, while the District charges per fixture. He noted that OCSD charges per square foot of the dwelling unit. Hearing no protests or objections, President Ooten closed the public hearing and entertained a motion for Wastewater charges. Motion: To adopt Resolution No. 2021-939 confirming the Wastewater Annual Charges for FY 2021-22 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer President Ooten invited a motion for Solid Waste charges. Motion: To adopt Resolution No. 2021-940 confirming the Solid Waste Annual Charges for FY 2021-22 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer President Ooten invited a motion for Ordinance No. 132. Motion: To adopt Ordinance No. 132 confirming the Wastewater and Solid Waste Annual Charges respectively for FY 2021-22 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 There was no further discussion. E. GENERAL MANAGER'S REPORTS Action: 1. Adopt Resolution No. 2021-941 Adopting the Biennial Budget for Fiscal Year 2021-22 and 2022-23 Recommendation: That the Board of Directors adopts Resolution No. 2021-941 adopting the biennial budget for Fiscal Years 2021-22 and 2022-23. President Ooten introduced the item. Director Eckles asked Finance Manager, Kaitlin Tran, about two small budget differences found in the Solid Waste and Wastewater budgets compared to the proposed biennial budget presented at the June Study Session. Ms. Tran stated that District staff made two minor changes in the Professional Services account and Liability Insurance account. She noted that the Professional Services account was increased by about $15,000 for the District's new IT contract. She shared that, in Fiscal Year 2022-23, the Solid Waste fund will be balanced because $24,000 has been added to the contingency account. Director Eckles thanked Ms. Tran for the explanation. Director Perry asked if a Consumer Price Index (CPI) increase is included in the Trash Hauler budget account. Ms. Tran confirmed that no CPI increase is included in that account. Director Perry stated that the District will be discussing a CPI increase for CR&R Environmental Services in six months. Ms. Tran stated that a budget adjustment can be issued based on what the Board decides at that time. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 Motion: To adopt Resolution No. 2021-941 adopting the biennial budget for Fiscal Years 2021-22 and 2022-23. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. Action: 2. Consider Approving a Budget Adjustment of $96,500 to Purchase Two New Bypass Pumps Recommendation: That the Board of Directors approves the budget adjustment of $96,500 to purchase two new bypass pumps. President Ooten introduced the item. He stated that the South Coast Air Quality Management District (SCAQMD) has an emissions concern with the current bypass pump stations. Motion: To approve the budget adjustment of $96,500 to purchase two new bypass pumps. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. Action, Discussion, Receive and File: 3. Consider Awarding Contract for IT Management Services to Acorn Technology Services Recommendation: That the Board of Directors awards the contract for information technology (IT) management services to Acorn Technology Services in the amount of $148,435.00 for a term of three (3) years. President Ooten introduced the item. Management Analyst II, Gina Terraneo, presented report details. She shared that the District has been in contract with Lan Wan Enterprise since 2015. She reviewed the District's request for proposal (RFP) and evaluation process for a new information technology (IT) management services contract. She stated that Acorn Technology Services unanimously received COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 the highest evaluation score from all raters. She noted that the staff report outlines the costs for Acorn Technology Services, which include an initial assessment fee of $6,775 and a monthly fee of $3,935 for a three-year period. She shared that it is essential to retain the District's current IT contractor, Lan Wan Enterprise, to ensure that there is no lost time or information during the transition period. She introduced Matthew Fuller from Acorn Technology Services. Director Perry inquired about Acorn Technology Services' work location. Ms. Terraneo stated that they are in Riverside, CA. She shared that they work with other local cities, such as Huntington Beach. She noted that they will be onsite once a week. Director Perry inquired about Acorn Technology Services' start date. Ms. Terraneo stated that if the contract is approved tonight, then they will be onsite starting Thursday, July 1, 2021, and will be working with the District's current IT provider. Director Eckles inquired about the evaluation process for Acorn Technology Services. Ms. Terraneo shared that Acorn Technology Services were highly responsive to the RFP. She noted that the RFP is very extensive. She added that Acorn Technology Services thoroughly explained how they would continue the District's current services and provided recommendations for enhancing cybersecurity. She reported that a few of the other proposals had no experience working with government agencies. Director Eckles inquired about the transition process from Lan Wan Enterprise to Acorn Technology Services. Ms. Terraneo stated that the District will be continuing its current contract with Lan Wan Enterprise for up to two months to ensure that everything transitions smoothly. She added that Lan Wan Enterprise will be working alongside Acorn Technology Services to review the District's technology and network. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 Vice President Scheafer shared that the Special Districts Risk Management Authority (SDRMA) recently approved a new contract for IT support. He discussed cybersecurity. He requested for Acorn Technology Services to provide more information regarding their cybersecurity services and training. Ms. Terraneo stated that District staff will be meeting with Acorn Technology Services to discuss their cybersecurity plan for the next few years. She confirmed that this information will be shared with the Board. Vice President Scheafer suggested for Ms. Terraneo to contact SDRMA for ancillary help. Mr. Carroll stated that cybersecurity information will be limited to ensure protection of the District's IT systems. Vice President Scheafer stated that he is interested in a generalized cybersecurity plan from Acorn Technology Services. Motion: To award the contract for information technology (IT) management services to Acorn Technology Services in the amount of $148,435.00 for a term of three (3) years. Motion by Brett Eckles, second by Michael Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. Action: 4. Consider Awarding Agreement with EEC Environmental for Managing the District's Fats Oil and Grease (FOG) Control Program Recommendation: That the Board of Directors approves Agreement with EEC Environmental for managing the District's Fats Oil and Grease (FOG) Control Program. President Ooten introduced the item and noted that EEC Environmental was the lowest responsive bidder. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 Motion: To approve an agreement with EEC Environmental for managing the District's Fats Oil and Grease (FOG) Control Program. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. Action, Discussion, Receive and File: S. Consider Awarding a Sole Source Agreement with Michael Balliet Consulting, LLC for Solid Waste Consulting Services Recommendation: That the Board of Directors determine sole sourcing for solid waste consulting services is in the best interest of the District and direct the General Manager to enter into an Agreement with Michael Balliet Consulting, LLC in the amount of $34,000 per year for a term of two terms that will total $68,000. President Ooten introduced the item. He discussed the importance of compliance with Senate Bill (SB) 1383. Director Perry inquired if this is a new contract. Mr. Carroll stated that the District had a contract with Michael Balliet Consulting, LLC for auditing CR&R Environmental Services' performance. He noted that these contracts are usually a one-year contract for a specific service. Directory Perry inquired about the cost of the contract. Mr. Carroll clarified that the contract amount is $34,000 per year of the two- year contract. Director Perry commented that the cost of the contract is excessive. He noted that Michael Balliet Consulting, LLC is also working with the City of Costa Mesa. Mr. Carroll stated that Michael Balliet Consulting, LLC will be working on SB 1383 compliance and additional items, such as franchise hauler compliance COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 and quarterly waste composition audits. He added that District staff finds $34,000 to be a fair price. Vice President Scheafer inquired if Michael Balliet Consulting, LLC is continuing their contract with the City of Costa Mesa and if there is any potential conflict with them working for the City and the District. Mr. Carroll confirmed that Michael Balliet Consulting, LLC is still working with the City. He stated that, by working for both agencies, Michael Balliet Consulting, LLC will help the District coordinate their efforts with the City's efforts. Vice President Scheafer commented that District staff has had difficulty in working with the City and noted that he views the contract as a positive step. Mr. Carroll stated that the District has a balanced budget for Fiscal Year 2021-22. He added that it is important to address SB 1383 requirements. Director Perry asked if Michael Balliet Consulting, LLC has other contracts with similar agencies. Mr. Carroll stated that he is unsure and that he will have to report back with more information. Discussion followed regarding sole source agreements and the General Manager's approval authority. Mr. Carroll stated that the District is requesting a sole source agreement for Michael Balliet Consulting, LLC due to Mr. Balliet's expertise in the solid waste industry. President Ooten shared that he attended a meeting with Mr. Balliet and the City of Costa Mesa's Energy and Sustainability Services Manager, Salem Afeworki. He stated that he is very impressed with Mr. Balliet's knowledge of SB 1383. He added that Mr. Balliet provides the City's reporting to the State. He commented that this agreement with Michael Balliet Consulting, LLC is a huge opportunity for the District to get started with SB 1383 requirements. He mentioned that Michael Balliet Consulting, LLC contracts COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 with many other agencies. He noted that Michael Balliet Consulting, LLC is the sole source of SB 1383 information for the City. Director Perry inquired if Michael Balliet Consulting, LLC will be focusing on organic waste. Discussion followed regarding SB 1383 compliance and the City's responsibility regarding enforcement and reporting. Mr. Mosher stated that the District will have to coordinate with the City of Newport Beach since it provides solid waste services for the Santa Ana Heights area. He commented that there is a typo in the staff report regarding the timeframe of the agreement. Motion: To determine sole sourcing for solid waste consulting services is in the best interest of the District and direct the General Manager to enter into an Agreement with Michael Balliet Consulting, LLC in the amount of $34,000 per year for a term of two years that will total $68,000. Motion by Arlene Schafer, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. Action, Receive and File: 6. Oral Presentation - Orange County Sanitation District Regional Sewer Line Repair in Costa Mesa Recommendation: That the Board of Directors receives and files this report. Mr. Esquer presented an oral report on OCSD's regional sewer line repair in Costa Mesa. He stated that OCSD sewer lines had been punctured by some piles due to the widening project for Interstate 405. He noted that these OCSD sewer lines serve a portion of the District's sewer system. Discussion followed regarding the surveyor's markings for pile placements and sewer lines. Director Perry inquired about OCSD's pump station. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 Mr. Esquer stated that OCSD's College Pump Station is located at the corner of Gisler Avenue and College Avenue. He noted that OCSD's gravity line is upstream from the College Pump Station and travels north to MacArthur Boulevard. There was no further discussion, and the report was received. Action: 7. Consider Establishing a Different Start Time for Board of Directors Study Session Meetings Recommendation: That the Board of Directors gives direction to staff. President Ooten introduced the item. Director Eckles shared that he asked for this item to be presented. He stated that the current start time of 9:30 a.m. is during the normal workday, which decreases the public's ability to attend. He added that, because the Board discusses many topics during their Study Sessions, it would be beneficial to have public input. He stated that, personally, the current start time increases his daily commute from his workplace to District Headquarters. He suggested changing the start time to 4:30 p.m. or around lunchtime. Director Perry stated that he is unavailable at 4:30 p.m. for Study Sessions due to his coaching schedule. He noted that he has more availability in the morning. Vice President Scheafer shared that, for his business, he keeps Tuesday and Thursday nights open for customers. He noted that he is not available in the evening for Study Sessions. He discussed the potential staffing costs associated with another meeting outside of District work hours. He suggested scheduling Study Sessions for 8:00 or 8:30 a.m. He added that the District does not receive much public input regardless of meeting times. Director Eckles expressed support for scheduling Study Sessions earlier in the morning. Secretary Schafer expressed support for an 8:00 a.m. start time for Study Sessions. She shared that other public agency meetings typically start at 7:30 a.m. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28; 2021 President Ooten expressed agreement with Secretary Schafer and added that an 8:00 a.m. start time is most beneficial for people who work. He requested for District staff to bring this item back with more information. Vice President Scheafer stated that he is not opposed to scheduling some Study Sessions or Special Meetings in the afternoon to increase public input. President Ooten recommended for District staff to provide some ideas to improve public input. There was no further discussion. Action: 8. Consider Voting for One Candidate to the California Special Districts Association Board of Directors — Seat A — Southern Network for January 1, 2022 — December 31, 2024 Term Recommendation: That the Board of Directors votes for one candidate for the California Special Districts Association Board of Directors — Term 2021-2023; Seat A — Southern Network. President Ooten introduced the item. Secretary Schafer stated that there are nine applicants. She stressed the importance of voting for a candidate with experience and education. She discussed jo MacKenzie's experience and recommended her for Seat A. Director Eckles expressed support for Secretary Schafer's recommendation. He inquired about the number of applicants. Secretary Schafer stated that there are not usually this many applicants. She added that it would be beneficial for the other candidates to have more experience with the California Special Districts Association (CSDA). Director Eckles asked if Secretary Schafer has heard of any critiques about Ms. MacKenzie. Secretary Schafer confirmed that she has heard no critiques of this candidate. COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 Vice President Scheafer shared that Ms. MacKenzie represents southern California well. He added that the Board President of the Placentia Library District, Jo -Ann Martin, has an unbelievable resume and that she would do an excellent job representing Seat A for CSDA. He recommended getting Ms. Martin more involved in CSDA. Secretary Schafer stated that Ms. Martin may be qualified to serve on the CSDA Executive Board. Motion: To vote for Jo MacKenzie for the California Special Districts Association Board of Directors 2021-2023 term, Seat A of the Southern Network, and direct General Manager, Scott Carroll, to electronically vote for said candidate. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer 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. There was no discussion, and the report was received. Action: 2. Consider Awarding Contract to GCI Construction, Inc. for Project #322 Iowa Street PS Sewer Force Main Replacement Recommendation: 1. Award a contract for installing two force mains to the lowest responsive and responsible bidder, GCI Construction, Inc., in the amount of $168,018. 2. Approve a contingency of 10% in the amount of $16,801.80. Mr. Esquer described the project details. He shared that the District received three bids that ranged from $168,000 to $244,000. He noted that the bid summary and engineer's estimate are attached to the staff report. He COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 reported that GCI Construction, Inc. offered the lowest bid. He stated that the District has checked their licensing requirements and necessary paperwork. He added that, as the lowest bidder, the District recommends awarding them the contract. He noted that the District is also asking the Board to approve the 10% contingency requirement for unforeseen issues that may happen during the construction process. He shared that, early last week, the District found out that the City of Costa Mesa will be paving Iowa Street starting in mid to late August. He stated that the City has instructed the District to have their facility built before the street paving. He reported that he has discussed this issue with GCI Construction, Inc. Vice President Scheafer suggested to instruct the City to begin their street paving project on the opposite end of the street. Mr. Esquer shared that he has already instructed the City to do so. He noted that the City is moving quickly with their street paving project. Director Eckles inquired about the difference between the bid amounts. He asked if the District would incur any change orders or changes in the work schedule. Mr. Esquer shared that he has met with GCI Construction, Inc. to review their bid amount. He discussed the President Pump Station project that is currently experiencing delays. He suggested for GCI Construction, Inc. to work on the Iowa Street project prior to finishing the President Pump Station. Director Eckles asked for Mr. Esquer to review the proj ect's accelerated work schedule. Vice President Scheafer expressed support for GCI Construction, Inc. Mr. Mosher inquired about the name of the company with the highest bid. Mr. Esquer stated that the name might be T.E. Roberts Incorporated rather than The Roberts Incorporated, as it is listed in the staff report. He noted that he will confirm the name. COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 285 2021 Motion: To award a contract for installing two force mains to the lowest responsive and responsible bidder, GCI Construction, Inc., in the amount of $168,018, and to approve a contingency of 10% in the amount of $16,801.80. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. Action: 3. Consider Approving Resolution No. 2021-942 Vacating and Quitclaiming a Sewer Easement Not Necessary for Public Use Recommendation: That the Board of Directors approves Resolution No. 2021-942 vacating and quitclaiming a sewer easement across the 2454 Norse Avenue property. Motion: To approve Resolution No. 2021-942 vacating and quitclaiming a sewer easement across the 2454 Norse Avenue property. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no discussion. G. TREASURER'S REPORTS Action: 1. Consider Adopting Resolution 2021-943 Approving the Statement of Investment Policy and Delegating the Investment Function to the District Treasurer for Fiscal Year 2021-22 Recommendation: That the Board of Directors adopts Resolution 2021-943 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for fiscal year 2021-22. President Ooten inquired about the undesignated reserves section of the Investment Report. District Treasurer, Marc Davis, stated that there is a negative balance for the Solid Waste Fund. He reported that the District is currently in its revenue dry period. He noted that the Board requested for this information to be COSTA MESA SANITARY DISTRICT PAGE 19 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 tracked. He added that there are no available funds to do anything. He clarified that this item is the Investment Policy for Fiscal Year 2021-2022. He stated that the Board is responsible for placing the investments for the District. He added that they can delegate the authority to the District Treasurer for the year. He reviewed the items included in the staff report and reported that there are no changes to the government code. Motion: To adopt Resolution 2021-943 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for fiscal year 2021-22. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. H. ATTORNEY'S 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 that he attended an OCSD Board meeting and an Operations Committee meeting. He discussed SB 1383. He noted that OCSD must comply with SB 1383 because they have biosolids. He shared that OCSD is working with its compost contractors to supply their member agencies with compost. COSTA MESA SANITARY DISTRICT PAGE 20 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry shared that he attended the SARFPA meeting. He stated that he turned in his written meeting notes with his reimbursement form. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer shared that ISDOC decided against having an in -person meeting for this month. She stated that the guest speaker for ISDOC's July meeting will be the Planning and Development Director of the Great Park. She added that ISDOC will be highlighting the Placentia Library District. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared that CSDA has a new CSDA magazine article written by Mr. Carroll. She stated that CSDA's annual conference in Monterey will be from August 30, 2021, to September 2, 2021. She added that CSDA's 2022 annual conference will be in Sacramento. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer shared that SDRMA's Board meeting was last week in Sacramento. He stated that SDRMA approved their budget and their captive joint powers authority in Utah. He noted that he is the chairman of SDRMA's captive joint powers authority. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Secretary Schafer shared that she attended Water Advisory Committee of Orange County (WACO) meeting. She discussed other upcoming conferences. President Ooten shared that he met with Mr. Carroll and the Citizens Advisory Committee (CAC) Chair to discuss the CAC's workplan, bylaws, and criteria for CR&R's CPI increase request. He stated that he attended an ad hoc meeting with the District's public relations contractor, Roger Faubel Public Affairs, Inc., to discuss regulating agencies and Orange County Local Agency Formation Commission (OCLAFCO). COSTA MESA SANITARY DISTRICT PAGE 21 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 28, 2021 Vice President Scheafer shared that he was not able to attend last week's Orange County Council of Governments (OCCOG) meeting. He stated that the OCCOG General Assembly will be held on November 17, 2021, at the Grand Californian Hotel at Disneyland. He reported that OCCOG has filed suit against the California Department of Housing and Community Development (HCD). He shared that he attended a Solid Waste Association of North America (SWANA) seminar which discussed disaster recovery. There was no further discussion. T. 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 Director Eckles commented that the District has received correspondence from a member of the public regarding issues with trash services. He requested for District staff to address these issues at a future meeting. Vice President Scheafer shared that he and President Ooten are members of the Solid Waste Ad Hoc Committee. He noted that he will be discussing these issues at their next meeting. Mr. Carroll shared that CR&R had an incident last Thursday during which one of the resident's two organics carts was not emptied. He reported that CR&R tried to empty the cart, but the waste did not come out due to too much moisture in the cart. He noted that this cart was emptied earlier today. Director Eckles thanked Finance Manager, Kaitlin Tran, Mr. Carroll, and District staff for their work on the budget process. He commented that he is COSTA MESA SANITARY DISTRICT PAGE 22 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 289 2021 pleased to see no deficit spending for Fiscal Year 2022-23. He expressed recognition to his fellow Board members and District staff for attending the Special Meetings. He wished everyone a Happy Independence Day. President Ooten requested for the Solid Waste Ad Hoc Committee to meet in early July to discuss SB 1383. Secretary Schafer commented that the trash carts in the College Park neighborhood were serviced on time. She expressed recognition for Mr. Carroll. There was no further discussion. M. ADJOURN TO CLOSED SESSION No closed session. 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 6:14 P.M. Arlene Schafer Secretary i Bob Cloten President