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Minutes - Board - 2021-10-25COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING OCTOBER 25, 2021 NOTE: THIS HYBRID IN -PERSON AND TELECONFERENCED MEETING WAS CONDUCTED UTILIZING ELECTRONIC MEANS CONSISTENT WITH STATE OF CALIFORNIA ASSEMBLY BILL 361(GOV. CODE 54953(B)(3)). Members present Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Colin Burns (District Counsel), Marc Davis (District Treasurer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Mark Esquer (District Engineer), Gina Terraneo (Management Analyst II), Angela Colunga (Administrative Assistant I) Others present Mike Carey, CR&R Judith Gielow, Citizens Advisory Committee Member & 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. Procedural: 2. Pledge of Allegiance - President Ooten COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD O CTOBER 25, 2021 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.) Management Analyst II, Gina Terraneo, conducted roll call and noted that President Ooten, Vice President Scheafer, Secretary Schafer, Director Perry, and Director Eckles were present. 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. General Manager, Scott Carroll, announced that the District received late communications from District resident, Jim Mosher. He stated that a copy of the communications has been provided to the Board and to the public. President Ooten asked if District staff has reviewed the communications and has any comments. Mr. Carroll stated that District staff has no comments. There was no further discussion. Procedural: 6. Ceremonial Matters and Presentations. None at this time. B. PUBLIC COMMENTS Procedural: 1. Public Comments COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 President Ooten opened public comments. Hearing none, he 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 September 14, 2021 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 September 27, 2021 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2022-04 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2022-04 approving District warrants for the month of September in the amount of $881,574.22. Action (Consent): S. 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 September 2021 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the amount of $206,352.47 for September 2021 recycling and disposal services in the October 2021 warrant register COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $206,352.47 for September 2021 recycling and disposal services to be ratified in the October 2021 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 23,040 and direct staff to prepare a warrant to CR&R Environmental Services for $238,775.04 for September 2021 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,040 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for September 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,775.04 to be ratified in the October 2021 warrant list. Action (Consent): 9. Receive and File the September 2021 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the September 2021 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File the September 2021 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. 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, Brett Eckles, Mike Scheafer There was no further discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Action: 1. Award Autumn Alvarez, Accounting Clerk, $150.00 for her Idea to Improving Accounts Payable Efficiencies Recommendation: That the Board of Directors approve rewarding Autumn Alvarez, Accounting Clerk, $150.00 for her idea to improving accounts payable efficiencies. President Ooten introduced the item. Mr. Carroll provided report details. He described the District's Rewarding Ideas Program. He stated that the Finance Department does not have a centralized location for receiving electronic invoices. He shared that Accounting Clerk, Autumn Alvarez, suggested creating an Accounts Payable email address to track all invoices and for all staff members to utilize. Director Eckles asked how the District is currently receiving vendor invoices. Mr. Carroll stated that invoices can be sent to any staff member related to the purchase. Director Eckles asked about hard copied/mailed invoices. Mr. Carroll stated that those invoices are processed by Ms. Alvarez. Director Eckles expressed recognition for Ms. Alvarez's idea. Vice President Scheafer asked to whom do vendors send their invoices. Mr. Carroll stated that vendors will send their invoices to the project manager, and the project manager will send the invoice to another staff member. He noted that Ms. Alvarez's idea creates a centralized location via email to receive all electronic invoices. Motion: To approve rewarding Autumn Alvarez, Accounting Clerk, $150.00 for her idea to improving accounts payable efficiencies. Motion by Mike Scheafer, second by Brett Eckles. Final Resolution: Motion Carries 5-0 COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. Action: 2. Consider Approving California Special Districts Association (CSDA) Revised Bylaws and Direct the General Manager to Vote "Yes" on behalf of CMSD Approving Bylaws Update Recommendation: That the Board of Directors: 1. Approve CSDA Revised Bylaws; and 2. Direct the General Manager to vote "yes" on behalf of CMSD approving Bylaws update President Ooten introduced the item. Vice President Scheafer asked why this item requires designation to the General Manager rather than a vote from the Board President. Mr. Carroll stated that the California Special Districts Association (CSDA) does not require a vote from the Board President for this item. He noted that the item is presented to the Board for approval because the District is a member of CSDA. Discussion followed regarding other items that require a vote by the Board President. Director Eckles asked Secretary Schafer, the District's CSDA representative, if she has reviewed the CSDA bylaws and is in favor of the updates. Secretary Schafer confirmed that she has reviewed the bylaws and recommends that the District votes in favor of the changes. Motion: To approve CSDA Revised Bylaws and direct the General Manager to vote "yes" on behalf of CMSD approving Bylaws update. Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Action: 3. Consider appointing one member to the Citizens Advisory Committee to fill the vacant one-year term ending in March 2022 Recommendation: That the Board of Directors appoint one member to the Citizens Advisory Committee to fill one vacancy for the term ending in March 2022. President Ooten introduced the item. Mr. Carroll provided report details. He stated that the District received four applications to fill the vacancy on the District's Citizens Advisory Committee (CAC). He reviewed the number of CAC members per division area and noted that there are currently no CAC members representing Division 4. He provided the division areas of the four applicants. Motion: To appoint Rosemarie Chora to the Citizens Advisory Committee to fill one vacancy for the term ending in March 2022. Motion by Art Perry, second by Mike Scheafer. Director Perry stated that he reviewed the applications and noted that each applicant would be a great candidate for the CAC. He added that it is important to have Division 4 represented on the CAC. Director Eckles noted that Mr. Chapman has applied twice for the CAC. Substitute Motion: To appoint Ben Chapman to the Citizens Advisory Committee to fill one vacancy for the term ending in March 2022. Substitute motion by Brett Eckles. Substitute motion failed for lack of a second. Original Motion: To appoint Rosemarie Chora to the Citizens Advisory Committee to fill one vacancy for the term ending in March 2022. 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. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Action, Receive and File: 4. Receive and File the First Quarter Budget Review for FY 2021-22 Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. Finance Manager, Kaitlin Tran, provided report details. She stated that, based on the limited spending trends through September 30, 2021, District staff is projecting a savings of $183,000 dollars in the Solid Waste Fund and for the Wastewater Fund to meet the budgeted amount at Fiscal Year-end. She noted that projections with only three months or less of activity as the basis should not be relied upon. She added that, as the year progresses, these projections will become more precise. She stated that, as of September 30, 2021, a total of 23.1% of the Solid Waste budget and a total of 21.8% of the Wastewater Operating fund has been expended. She reported that the District has yet to receive any apportionments from the annual assessments for the Fiscal Year. She added that the first round of apportionments should begin in November 2021. She noted that the attached reports contain more detailed analysis of the first quarter budget review. Director Perry asked if the District applied for COVID-19 relief assistance. Ms. Tran stated that the District applied to the Federal Emergency Management Agency (FEMA) and CSDA for COVID-19 relief assistance. She noted that if FEMA reimburses the District for certain items, then CSDA will not grant the District additional assistance for those same items. She shared that the District has not received feedback from either agency if their application has been approved. Director Perry asked if there a deadline for receiving reimbursement. Ms. Tran stated that FEMA's deadline is the end of December 2021. Vice President Scheafer inquired about FEMA's requirements for receiving COVID-19 relief assistance. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Ms. Tran stated that the District applied for assistance for materials, cleaning supplies, personal protective equipment (PPE), mileage, and for the increased tonnage amounts due to the Stay at Home orders. She noted that FEMA does not reimburse for operational costs. Discussion followed regarding the mixed waste tonnage increases. Director Perry inquired about the CSDA relief assistance. Ms. Tran stated that CSDA is currently accepting applications and has not determined how they will be distributing their COVID-19 assistance. Discussion followed regarding CSDA's reimbursement requirements. Director Eckles inquired about salary savings due to the vacant part-time Code Enforcement Officer position. Ms. Tran stated that the District's Facilities Maintenance Worker, David Griffin, is currently performing the duties of the Code Enforcement Officer position. She noted that the salary savings are minimal since the District is paying Mr. Griffin the Code Enforcement Officer rate. She added that the salary savings are within the Facilities Maintenance Worker position. Director Eckles inquired about the projected salary savings if the District were to hire an additional employee to fulfill the Code Enforcement Officer position. Ms. Tran stated that the salary savings would not be impacted if another employee was hired for that position. Mr. Carroll stated that the District has yet to decide if the Code Enforcement Officer position should be a full-time position due to SB 1383. He added that District staff will be discussing this item at a future Board meeting. President Ooten asked if the District budgeted for a full-time Code Enforcement Officer. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 2S, 2021 Mr. Carroll stated that the District has not budgeted for a full-time Code Enforcement Officer. There was no further discussion, and the report was received. Action: S. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2020-21 to Fiscal Year 2021-22 Recommendation: That the Board of Directors approve the re -appropriation of funds in the Fiscal Year 2020-21 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $1,000, Encumbrances $3,407.87 20 Wastewater Fund: Carryover Appropriations $2,866,271.18, Encumbrances $166,899.86 President Ooten introduced the item. He discussed carryover project funds and stated that the process is unclear as to how these funds are distributed to new projects. He noted that there are about four projects with carryover funds. Mr. Carroll noted that there is a new project that District staff will be presenting this evening. President Ooten suggested placing carryover project funds into the Asset Management Fund prior to redistributing them to a new project. District Engineer, Mark Esquer, stated that some of the carryover project funds will be redistributed to existing projects that have been approved by the Board. Ms. Tran reviewed Attachment A of the staff report. She stated that project funds are being redistributed to projects that require an additional phase of work. Discussion followed regarding the reallocation of funds for capital improvement projects (CIPs). COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 President Ooten asked if a second phase of a project is assigned a new project number. Mr. Esquer stated that additional project phases do not receive a new project number. Ms. Tran noted that the Monthly Capital Improvement Projects Status Report under Item F contains the full budget for each CIP. Director Eckles inquired about the Other Postemployment Benefits (OPEB) actuarial. Ms. Tran stated that the District hires a consultant every two years to produce an actuarial report for OPEB. She reported that the consultant did not have to produce a complete report for Fiscal Year 2020-21, which resulted in some savings in the OPEB budget. She noted that the consultant sent their invoice after the completion of Fiscal Year 2020-21, and their fee was charged to the current fiscal year's OPEB budget. She stated that she is requesting to transfer the fund savings to cover some unanticipated costs for the IT forensic and security upgrades. Discussion followed regarding purchase orders and encumbrances. Director Eckles inquired about the process of carrying over unused funds to new projects. Mr. Carroll stated that the District is redistributing preapproved funds that were left over from a completed project to help fund a new project. Motion: To approve the re -appropriation of funds in the Fiscal Year 2020-21 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $1,000, Encumbrances $3,407.87 20 Wastewater Fund: Carryover Appropriations $2,866,271.18) Encumbrances $166,899.86 Motion by Art Perry, second by Arlene Schafer. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 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. Receive and File 2021 Annual Performance Measurement Report - Third Quarter Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. There was no discussion, and the report was received. Action, Receive and File: 7. Receive and File 2020-25 Strategic Plan Quarterly Update - FY 2021-22 First Quarter Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. There was no discussion, and the report was received. Discussion, Receive and File: 8. Receive and File CR&R-s Benchmark Measures Progress Report Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. Mr. Carroll provided report details. He stated that there are eight measures that the Board approved to assess CR&Ws service levels. He added that these measures will assist the Board in determining if CR&R should be awarded a rate adjustment. He reported that the report contains data from July through September. He noted that it is highly unlikely that CR&R will achieve the benchmark of reducing public complaints regarding mixed waste and organic carts not being emptied during their regular scheduled day by 50% to 174 or less complaints. He stated that, within the first three months, CR&R has received 165 complaints. He reviewed the status of the other seven benchmarks. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Vice President Scheafer discussed benchmark #2. He noted that CR&R has substantially reduced the number of complaints from 94 complaints in July to 35 complaints in September. Mr. Carroll stated that he was hoping that the number of complaints for September would be lower than the number of complaints for August, but each month received about the same number of complaints. He noted that the month of July is considered an anomaly for this benchmark. He added that CR&R typically receives about 60 complaints per year for this topic. Vice President Scheafer commended CR&R for their improvement in addressing benchmark #2. Director Perry inquired about CR&R's progress in purchasing new trash trucks for the next year. CR&R representative, Mike Carey, stated that CR&R has ordered new trash trucks and that they are scheduled to be delivered in February 2022. Director Perry inquired about CR&R's progress in hiring new trash truck drivers. Mr. Carey stated that CR&R has recently hired 12 new drivers and that they are hoping to hire a few more. Director Perry asked if these new drivers will be servicing the District. Mr. Carey stated that the 12 new drivers will be placed throughout the company, but that they do have some new drivers that have been allocated to the District's service area. Director Eckles discussed CR&R's average rate of complaints and compared it to their current rate. He inquired about the factors contributing to CR&R's rate of missed trash pickups. Mr. Carroll stated that the unavailability of drivers and trash truck issues are contributing to their rate of missed pickups. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Director Eckles inquired if communication between District staff and CR&R has improved. Mr. Carroll confirmed that communications have improved. Director Eckles inquired about the Newport Transfer Station. Mr. Carroll reported that the City of Newport Beach and CR&R are currently negotiating the scales. He shared that the City is preparing for their SB 1383 program. He noted that the City has been reluctant in discussing their transfer station until they implement SB 1383 regulations. Director Eckles requested to discuss CR&R's plan for Christmas Tree collections prior to the December Study Session. Mr. Carroll stated that the next few meetings have very busy agendas. The Board agreed to discuss Christmas Tree collections at the November Board meeting. Discussion followed regarding the location of the Newport Beach Transfer Station. Secretary Schafer commended CR&R for servicing streets earlier in the morning. She reported that CR&R has failed to close the trash cart lids after being serviced. President Ooten expressed agreement with Secretary Schafer's complaint and noted that the lids on the Organic Recycling Carts that are typically left open. Vice President Scheafer stated that the lids on the Organic Recycling Carts are heavier than the lids on the Mixed Waste Carts. There was no further discussion, and the report was received. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the Capital Improvement Projects Status Report Recommendation: That the Board of Directors receive and file the Capital Improvement Status Report. President Ooten introduced the item. Mr. Esquer stated that he is available for questions. Director Perry inquired about the status of the President Pump Station. Mr. Esquer stated that the project is still in progress. He reported that the electrical panel has been installed. He added that the new pump station has been operational since October 12, 2021. He noted that the District is experiencing some technical glitches, which is why they have not decommissioned and removed the old pump station. There was no further discussion, and the report was received. Action: 2. Approve New Project #340 City of Newport Beach 15th Street Interconnection Relocation Recommendation: That the Board of Directors approve New Project #320 to relocate the City of Newport Beach 15th Street sewer interconnection. President Ooten introduced the item. Mr. Esquer provided report details. He stated that the District has a sewer interconnection facility with the City of Newport Beach. He added that the interconnect transports the District's sewage from a particular area to the Orange County Sanitation District (OCSD). He reported that the City has a project to install ADA compliant curb returns near Newport Harbor High School. He stated that, according to the District's agreement with the City, the District is responsible for the relocation costs to move the District's manhole within the project's area. He presented an overview of the project COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 area. He discussed his recommendations for relocating the District's manhole. Secretary Schafer asked how this project will affect the District's budget. Vice President Scheafer inquired about the sewage flow. Mr. Esquer reviewed the initial layout of the manhole locations and sewage flow. Vice President Scheafer expressed support for Mr. Esquer's project proposal. Discussion followed regarding the amount of morning traffic within the project area. Director Eckles inquired if the City has agreed to Mr. Esquer's proposal. Mr. Esquer stated that the City supported his proposal due to its ability to reduce impacts on traffic. He noted that his proposal is more cost-effective than the City's initial recommendation. President Ooten inquired about the manhole near the high school. Mr. Esquer stated that the City's 10-inch pipes are similar to the District's fl- inch pipes. He added that the District prefers to have a manhole in that area to clean the sewer pipes. He continued his presentation and discussed the logistics of the proposed construction work. He reviewed the estimated budget for the project and fund reappropriations. Director Eckles inquired about the District's agreement with the City. Mr. Esquer stated that the agreement between the two agencies was established a long time ago. He was not able to provide specific details about the agreement except that it states that the District is responsible for relocation costs. COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Director Eckles inquired if the City would invoice the District for the relocation costs if the District decided to not approve the new project. Mr. Esquer confirmed that if the District does not approve this project, then the City would invoice the District for the work performed. Director Eckles reviewed the available funding for the project. Vice President Scheafer inquired if the Board is being asked to approve the District's proposal or the City's project. Mr. Esquer confirmed that the Board is being asked to approve his project proposal to install two new manholes for the City's project. Vice President Scheafer expressed recognition for Mr. Esquer's proposal. Discussion followed regarding sewage flow. Motion: To approve new project #340 to relocate the City of Newport Beach's 15th Street Sewer Interconnection. Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. G. TREASURER'S REPORTS Action: 1. Approve the Investment Report for the Month of September 2021 Recommendation: That the Board of Directors approve the Investment Report for the month of September 2021. President Ooten introduced the item. District Treasurer, Marc Davis, provided a quarterly review of the District's investment portfolio. He stated that inflation is currently at 5.4% which is over the expected target of 2%. He added that the Federal Reserve (Fed) has been putting about $120 billion per month into the economy and buying COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 treasuries and government agency securities, which has had an impact on the District's portfolio. He noted that the Fed has indicated that it will be tapering off their purchase program over the next few months and will not be buying back any mortgage -backed securities. He discussed interest rates and their effect on the District's portfolio. He reported that, as of September 30, 2021, the District's portfolio was earning 0.632%. He discussed portfolio activity and purchases for the month of September. Motion: To approve the Investment Report for the month of September 2021. 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 There was no further discussion. H. ATTORNEYS REPORTS Action: 1. Consider Adopting Resolution No. 2021-947 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2021-947 Authorizing Remote Meetings President Ooten introduced the item. Vice President Scheafer inquired about the repercussions if the District did not adopt this resolution every month. District Counsel, Colin Burns, stated that the District would have to return to its general teleconferencing procedures, which require that attendees are allowed to be present at Board members' teleconferencing locations in order to participate in meetings. Director Perry asked if this regulation expires on December 31, 2021. Mr. Burns stated that the regulation is effective until 2024. Discussion followed regarding the adopting procedures for the resolution. COSTA MESA SANITARY DISTRICT PAGE 19 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Mr. Burns requested to amend Section 5 of the resolution to change the effective date from October to November. Motion: To adopt Resolution No. 2021-947 Authorizing Remote Meetings and to correct the language in the resolution to note that the resolution is effective until November 26, 2021. Motion by Mike Scheafer, 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. 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 stated that he submitted a written description of the OCSD meeting. He shared that he attended OCSD's Operations Committee meeting. He noted that OCSD's Board meeting is next week. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry shared that SARFPA did not meet this month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) There was no discussion on ISDOC. 4. California Special Districts Association (CSDA) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT PAGE 20 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 Secretary Schafer stated that she attended the CSDA conference and a few CSDA meetings in September. She shared that she was on the CSDA committee that awarded the District four awards, but noted that she abstained from voting due to her conflict of interest. She reviewed the District's four awards. S. Special District Risk Management Authority (SDRMA) - (Director Scheafer) There was no discussion on SDRMA. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Ooten stated that he attended an Orange County Water District (OCWD) Groundwater Replenishment System (GWRS) meeting. He shared that GWRS's expansion project won a Nobel Prize. He stated that he also attended a Water Advisory Committee of Orange County (WACO) meeting, which included a discussion of California's water supply. Secretary Schafer stated that she attended a Costa Mesa City Council meeting in which the District was awarded a proclamation for their assistance with the City's homeless shelter. 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 COSTA MESA SANITARY DISTRICT PAGE 21 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 2S, 2021 Secretary Schafer commented that the information provided at the upcoming ISDOC meeting will be very beneficial for each Board member. Discussion followed regarding the details of the ISDOC meeting. Director Eckles commented that the Battle of the Bay occurred last Friday. He shared that the stadium was sold out and that it was nice to experience a bit of normalcy in the community. He announced that the Pilot Cup, a soccer tournament for elementary students, will be hosted by Costa Mesa United and will take place next spring. Vice President Scheafer commended the District for the sandbag station at the District Yard. He discussed the City/Districts Liaison Committee meeting and suggested for the meetings to be more informative rather than ceremonial. Mr. Carroll suggested for the City of Costa Mesa and the Newport -Mesa Unified School District (NMUSD) to meet separately from the City/Districts Liaison Committee. Director Eckles recommended for the City/Districts Liaison Committee to discuss matters that affect each agency. Secretary Schafer discussed the purpose of the City/Districts Liaison Committee. She noted that the District is hosting the next meeting. Mr. Carroll suggested limiting each agency to three items on the agenda. Director Perry expressed support for Mr. Carroll's suggestion. President Ooten commented that the Municipal Water District of Orange County's (MWDOC) website has information regarding landscaping rebates. Discussion followed regarding landscaping grants offered by Mesa Water District. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 22 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 25, 2021 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 — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, November 22, 2021. President Ooten adjourned the meeting at 6:04 P.M. Arlene Schafer Secretary President