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Minutes - Board - 2021-11-22 ,„ SANIT,4, ZS' Fs, boRATEO.// COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING NOVEMBER 22,2021 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 StaffP resent Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Alan Burns (District Counsel), Dyana Bojarski (Administrative Services Manager), Mark Esquer (District Engineer), Gina Terraneo (Management Analyst II) OthersP resent Julie Barreda, CR&R Mike Carey, CR&R Judith Gielow, Citizens Advisory Committee Member & District resident Sue Lester, Citizens Advisory Committee Member &District resident Timothy McLarney, True North Research Jim Mosher, District resident Jeff Thompson Meeting called to order at 4:30 P.M. A. OPENING ITEMS COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 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 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: 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. President Ooten asked if the District received any late communications. Ms. Middenway confirmed that District resident, Jim Mosher, provided written comments via email, which were distributed to the Board and the public. 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 NOVEMBER 22,2021 President Ooten opened public comments. Citizens Advisory Committee (CAC) Vice Chair and District resident, Sue Lester, stated that she is submitting public comments as a District customer and not on behalf of the CAC. She shared that her mother, who is a District trash customer, has been experiencing issues with getting her trash carts serviced on a weekly basis since June 2021. She stated that she is adamantly against awarding CR&R a Consumer Price Index (CPI) increase based on their quality of service. She discussed the District's eight benchmark measures regarding CR&R's performance. She reported that the actual number of properties experiencing missed trash pickups is not accurately reflected in the data included in the District's benchmark reports. She noted that the District is only tracking missed trash pickup complaints. Ms. Lester shared that she helps her mother by taking out her trash carts every Thursday night and Friday morning. She stated that, when she visited her mother's property last Friday at 11:00 p.m., she noticed that her carts and all the carts in her neighborhood were not serviced. She described the characteristics of the neighborhood and noted that customers will leave their trash carts out until they are serviced. She stated that she noted all carts that were left out in her mother's neighborhood and entered 10 missed trash complaints for 10 different streets into the District's online reporting system. She shared that her friends have experienced missed trash pickups but do not submit an online service request because they find it to be ineffective. She stated that she received a phone call last Saturday from a CR&R supervisor who questioned her about her online service complaints. She proposed that only tracking the number of complaints (rather than individual missed pickups) is not an effective measure for analyzing CR&R's actual performance levels. She explained that the 10 complaints she submitted online represent about 200 properties that experienced a missed trash pickup. She encouraged the Board to take her comments into consideration when discussing CR&R's performance. She added that CR&R should be fulfilling their customers' expectations and provide additional support to receive a CPI increase. She noted that the CPI increase translates to about $630,000, which the District has not budgeted. She stated that CR&R's customer service levels may discourage customers from reporting complaints. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 President Ooten stated that the other public comments are intended for specific agenda items, which will be discussed later in the meeting. Hearing no additional comments, he closed public comments. C. ADJOURN TO CLOSED SESSION Discussion: 1. Conference with Legal Counsel - Existing Litigation (Gov. Code §54956.9(d)(1)) Steve Hodges v. Costa Mesa Sanitary District, et al. OCSC #30-2019- 01102477-CU-OE-CJC President Ooten adjourned to closed session at 4:39 p.m. D. RECONVENE TO OPEN SESSION 1. Report Out of Closed Session President Ooten reconvened from closed session at 5:13 p.m. and noted that no reportable action was taken during the closed session. E. 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 October 12, 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 October 25, 2021 Recommendation: That the Board of Directors approve the meeting minutes as presented. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2022-05 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2022-05 approving District warrants for the month of October in the amount of $774,340.04 Action(Consent): 5.Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action(Consent): 6.Approve Payroll Transparency Disclosure for October 2021 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Accept the occupancy count as presented as 23,042 and direct staff to prepare a warrant to CR&R Environmental Services for $238,795.77 for October 2021 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,042 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for October 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,795.77 to be ratified in the November 2021 warrant list. Action (Consent): 8. Receive and File the October 2021 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action(Consent): 9.Receive and File the October 2021 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Approve the preparation of a warrant to CR Transfer in the amount of$190,158.61 for October 2021 recycling and disposal services in the November 2021 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $190,158.61 for October 2021 recycling and disposal services to be ratified in the November 2021 warrant register. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 Action (Consent): 11. Receive and File the October 2021 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Motion: To rove the Consent Calendar as presented with the exception of PP P P Item ES. Motion by Arlene Schafer, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Vice President Scheafer requested to pull Item E5 for discussion. He stated that item #3 on his compensation and reimbursement report was a virtual meeting and not in-person at District Headquarters. President Ooten stated that he intended to go to the Independent Special Districts of Orange County(ISDOC) meeting but did not attend. He requested for this item to be removed from his compensation and reimbursement report. Motion: To approve Item ES. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries Aye: Arlene Schafer,Art Perry, Bob Ooten, Mike Scheafer, Brett Eckles There was no further discussion. F. PUBLIC HEARINGS None at this time. G. GENERAL MANAGER'S REPORTS Action, Receive and file: 1. Receive and File Results of the 2021 Citizen Survey Recommendation: That the Board of Directors receive and file the results of the 2021 Citizen Survey from True North Research and provide direction to staff. President Ooten introduced the item. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 General Manager, Scott Carroll, stated that, earlier this year, the District entered into an agreement with True North Research for a community-wide survey. He reviewed the purpose of the survey. He added that the Board received a presentation on survey methodology and feedback. He shared that the survey has been completed and introduced Dr. Timothy McLarney of True North Research. Dr. McLarney stated that the goal of the survey was to understand customer awareness of the District and its services, experience using services, and level of satisfaction with services. He discussed survey methodology and design.He noted that True North Research reached over 1,100 customers via email, text, and phone. He noted that the survey was conducted in English and Spanish and that the average survey time was 19 minutes.He stated that the overall margin of error was ± 2.9%. He shared a brief overview of the results which indicated that 86.5% of respondents have heard of the District. He noted that the District's level of awareness is quite high for a sanitary district. President Ooten asked if he had the results from the previous Citizen Survey. Dr. McLarney stated that the last survey questions were not presented in the same format and that True North Research was unable to provide a direct comparison to the previous survey's results. He shared that, for those who were aware of the District, they were surveyed then their familiarity was gauged. He stated that the survey asked their opinion of the District and about 60% of respondents reported having a favorable opinion. He noted that as familiarity with the District increases, so does favorability. He discussed satisfaction with wastewater services and noted that about 79% of respondents stated that they are satisfied. He discussed satisfaction with trash, recycling, and green waste services and noted that about 79% of respondents stated that they are satisfied. He reported that, for those who answered dissatisfied,they expressed interest in having a separate recycling cart and discussed inconsistent and unreliable trash pickup services. Vice President Scheafer asked if there was any mention of missed trash pickups. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 Dr. McLarney confirmed that the two dominant answers to why customers are dissatisfied were that the District does not provide separate recycling carts and the inconsistency of trash pickup. He discussed the results regarding contact with the District and opinion of District staff. He shared that the survey also asked if they contacted CR&R in the past year and if their issue was resolved to their satisfaction.He stated that the survey asked about consistency of trash collection (excluding holidays) in which 39% of respondents said that there have been missed pickups aside from holidays. He noted that these responses strongly correlated to their satisfaction with overall trash services. He added that the survey asked about awareness of District programs and services. He reported high levels of awareness and utilization of the District's Large Item Collection Program and Organics Recycling Program. He stated that the survey asked about satisfaction with District programs and services, which had an overall range of 87% to 96% for each program. He discussed the survey's results regarding satisfaction with the District's two-cart trash system and noted that about 70% reported that they are very or somewhat satisfied. He reviewed the reasons for those who responded as dissatisfied with the two-cart system. He noted that about I 58% indicated support for a three-cart trash system. Director Eckles asked if there was a difference between those who do not understand the two-cart trash system and those who want more or bigger trash carts. He stated that a few members of the public have indicated that they would like bigger trash carts. Dr. McLarney reviewed the reasons for those who oppose transition to a three-cart trash system. He stated that some respondents discussed capacity issues and that others did not understand the recycling process.He reported that their main concerns involve storage and parking issues. He noted that some respondents stated that they do not have the time or desire to separate their waste into different carts. Vice President Scheafer stated that some elected officials have indicated that they do not want more trash trucks on the street due to their ability to cause road damage. He asked if any of the respondents discussed that topic. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 Dr. McLarney proposed that road damage is not a concern to the average person. Vice President Scheafer stated that customers may not be aware that a three- cart system would increase the amount of trash trucks servicing the District. Dr. McLarney presented the survey results regarding usage of the Organics Recycling Carts, the effects of Senate Bill (SB) 1383, opinions regarding solid waste rates, support for wastewater rate increases, and satisfaction with the District's website and level of transparency. He noted that the report includes more details by customer type. He discussed the key conclusions of the survey and suggested opportunities for improvement. He added that, although most customers are satisfied with the two-cart trash system, they also support transitioning to a three-cart trash system. He reviewed the concerns with both systems. President Ooten discussed SB 1383 education and its potential effects on changing recycling behaviors. Ilj Dr. McLarney stated that they asked respondents to realistically describe their recycling habits regarding food waste. Secretary Schafer expressed recognition for the report. Vice President Scheafer discussed the survey results regarding special programs. He stated that the least known programs have the highest levels of satisfaction. He asked if satisfaction levels would decrease if program participation increased. Dr. McLarney stated that he does not expect satisfaction levels to decrease as participation increases.He added that the customers who have used those programs reported higher satisfaction levels. He suggested promoting those programs and reassessing satisfaction levels in the next survey. Vice President Scheafer stated that program participation levels were probably diminished due to impacts from the COVID-19 pandemic. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 Dr. McLarney stated that most of the programs are designed for the District's solid waste customers while only one program is marketed for wastewater customers. He noted that all programs are well received by those who have used them. Mr. Carroll stated that District staff is seeking direction from the Board regarding the survey results. He asked if the Board would like to discuss transitioning to a three-cart trash system and the contamination challenges of a two-cart trash system at a future meeting. Discussion followed regarding the agenda for the December Study Session. Director Eckles asked if the District will have enough information by the December Study Session to discuss a three-cart trash system. Mr. Carroll recommended having a discussion regarding a three-cart trash system and providing feedback for District staff to begin negotiations with CR&R. He noted that the Board can direct the Solid Waste Ad Hoc Committee to discuss this topic. Director Perry stated that the entire Board should be involved in these discussions. Vice President Scheafer expressed support for discussing a three-cart trash system at the December Study Session. Director Perry asked if the City of Costa Mesa is required to provide an additional cart for organic waste. Mr. Carroll stated that he is unsure about the requirements for the City. Director Perry asked how many residential properties do not have an Organics Recycling Cart. Mr. Carroll stated that the District has an extensive list of residential properties that were previously exempt but are now required to have an Organics Recycling Cart. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 Director Eckles requested to discuss the possibility of issuing bigger trash carts. President Ooten suggested discussing the advantages of a clean materials recovery facility(MRF). CR&R representative, Julie Barreda, commented that CR&R's non-exclusive agreement for all commercial businesses requires them to have three trash carts. She noted that the City of Costa Mesa will be requiring its commercial and multi-family units to have three carts. She added that these properties can choose to have dumpsters or residential carts. She stated that all non- exclusive waste haulers will be offering the same service. Discussion followed regarding the City's agreement with CR&R and organic waste disposal services. President Ooten stated that the Board needs to be briefed on what the City has passed and discussed. Mr. Mosher asked if the District received any additional information detailing how many people answered each question. He noted that the staff report only includes percentages. He discussed the reliability of the survey results. He stated that only 58% of respondents favored a three-cart trash system.He noted that some of those respondents expressed interest in larger trash carts while some were not aware of the District's current recycling system. He stated that some respondents may have been misinformed about what they were being asked about. Mr. Carroll stated that the percentage of people who contacted the District in the past year may have done so via phone, email, or in-person. Dr. McLarney stated that they do not usually include frequencies in the graphics due to format issues. He noted that he can provide that information if requested. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 District resident and CAC member, Judith Gielow, commented that the District used to provide metal trash cans which were replaced by plastic trash carts. She inquired about how the District will transition to a three-cart trash system. President Ooten stated that the trash cart lids will be replaced. Director Perry proposed that new trash carts may be provided. Ms. Gielow asked if the District will be removing any of the current carts. President Ooten stated that cart removal depends on customer usage. Ms. Gielow asked if customers will have to pay for the third cart of the three- cart system. President Ooten stated that the Board will be discussing additional costs. Director Perry stated that costs for solid waste services are reflected on the customer's property tax bill. Director Eckles noted that the Board will be discussing these issues at the December Study Session. There was no further discussion, and the report was received. Action: 2. Consider Adopting Ordinance No. 133 — Implementing the Requirements of Senate Bill 1383 (Mandatory Organic Waste Disposal Reduction) Recommendation: That the Board of Directors adopt Ordinance No. 133 Implementing the Requirements of Senate Bill 1383 (Mandatory Organic Waste Disposal Reduction) President Ooten introduced the item. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 Motion: That the Board of Directors adopt Ordinance No. 133 Implementing the Requirements of Senate Bill 1383 (Mandatory Organic Waste Disposal Reduction). Motion by Art Perry Motion failed to receive a second. Director Eckles asked if all questions that were submitted by Mr. Mosher and the CAC have been addressed. Mr. Carroll stated that those questions have been answered. He noted that Mr. Mosher has provided additional comments on the item. District Counsel, Alan Burns, discussed the ordinance and recommended adoption with a change to the definition of prohibited container contaminants. Director Eckles inquired about the fines section of the ordinance. Mr. Burns stated that the District has adopted the fine structure from the administrative citation statute,which has three tiers for fines and violations. President Ooten discussed administrative fines, which were originally adopted for addressing sanitary sewer overflows flows (SSOs) caused by food service establishments. He suggested reviewingthe District's s administrative gg fines and delineating them based on specific offenses. Director Eckles asked if President Ooten is requesting to change the fine structure of the ordinance. Vice President Scheafer stated that President Ooten supports the ordinance and is requesting to have a separate discussion about fines. Mr. Burns stated that District staff can discuss the subject of fines at a future Study Session. Mr. Mosher stated that this version of the ordinance is better and clearer than those presented by the Cities of Costa Mesa and Newport Beach. He COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 commented that the fines that were discussed are not intended for SB 1383 violations. He noted that Mr. Burns reviewed a fine structure that was different than what was included in the agenda. Discussion followed regarding discrepancies in the approved fine structure for the proposed ordinance. Mr. Mosher commented on the ordinance's deletion of the definition of trash. He discussed the significance of including that definition. Mr. Burns stated that the definition of mixed waste covers the definition of trash. Substitute Motion: To adopt Ordinance No. 133 implementing the requirements of Senate Bill 1383 (Mandatory Organic Waste Disposal Reduction) with the changes recommended by District Counsel, Alan Burns. 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. Action: 3. Consider Giving the General Manager Authority to Auction One Forklift Recommendation: That the Board of Directors give the General Manager authority to auction forklift. President Ooten introduced the item. Motion: To give the General Manager authority to auction forklift. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry,ry, Bob Ooten, Brett Eckles, Mike Scheafer There was no discussion. Action: 4. Review and Comment on CR&R Environmental Services Christmas Tree Recycling Program COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 Recommendation: That the Board of Directors ask questions about the proposed Christmas Tree Recycling Plan and receive and file this report. President Ooten introduced the item. Mr. Carroll stated that Ms. Barreda will be providing a presentation on this item. He reviewed the results of last year's Christmas Tree Recycling Program. Ms. Barreda stated that the majority of last year's issues with Christmas Tree collection were due to the COVID-19 pandemic. She reported that,from April 2020 to October 2021, CR&R had 496 COVID-related employee absences. She added that 42% of those employees tested positive for COVID-19. She stated that CR&R does not foresee that same issue for this year. She reviewed CR&R's precautions for addressing service delays, such as hiring temporary labor for all organic waste routes, reserving additional trucks, and utilizing a third-party company to help with Christmas Tree collection. She shared that many drivers have been vaccinated for COVID-19, but CR&R does not have an exact number. She stated that CR&R has continued to experience labor shortages and is currently accepting applications for drivers on their website. Director Perry asked about the last day that customers can place their Christmas Tree out for collection. Ms. Middenway stated that Christmas Tree collection will take place from December 27th to January 7th President Ooten requested for District staff to coordinate collection dates with the City of Costa Mesa. Director Perry inquired about missed pickups for Christmas Trees after the designated collection dates. Mr. Carroll stated that CR&R will be servicing those missed collections. COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 Ms.Barreda stated that CR&R will also accept Christmas Trees that have been placed in the Organics Recycling Cart. She noted that different trash trucks will be servicing Christmas Trees that are placed on the ground. Director Eckles stated that there were trees left outside for pickup for multiple weeks. He inquired about CR&R's process for collection. Mr. Carroll stated that Christmas Trees will be collected on a customer's regular collection day. Director Eckles inquired about the District's plan for notifying customers if their Christmas Tree was missed. Ms. Barreda stated that CR&R will notify the District of any service delays. She added that CR&R is planning to service missed pickups the following day. She suggested for District staff and CR&R to meet during the first week of Christmas Tree collection to review operations. Director Eckles asked if the District will be mailing notices to its customers. Ms.Middenway stated that the District has a quarter-page and full-page flyer that will be distributed via email. She added that these flyers will be provided to private Christmas Tree retailers. Vice President Scheafer asked if baggedpickedP Christmas Trees will be u . Ms. Barreda stated that Christmas Trees should not be placed in a bag. President Ooten commented that there were a lot of bagged Christmas Trees last year. There was no further discussion. H. ENGINEER'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 Action, Receive and File: 1. Consider Rejecting the Insituform Technologies Bid as Non-Responsive and Awarding a Contract to Sancon Technologies, Inc. for the Project 328 DIP Rehabilitation Phase II Recommendation: That the Board of Directors: 1. Reject the Insituform Technologies, Inc. bid as non-responsive 2. Award a contract to the lowest responsive and responsible bidder, Sancon Technologies, Inc., in the amount of$256,589.15 3. Approve a 10% contingency in the amount of$25,659 President Ooten introduced the item. District Engineer, Mark Esquer, presented report details. He explained the usage of ductile iron. He stated that ductile iron is no longer used today because sulfuric acid causes internal rust and compromised pipe. He described tools that can be used to address ductile iron pipes and cured-in- place pipe. He stated that the total project budget is $1.15 million, and that the current balance is $820,626. He noted that the District is currently on the second phase of the project. He shared the bid information and reported that the lowest bidder only acknowledged one of the three mandatory addendums. He stated that after the bidding process, the lowest bidder acknowledged receipt of all three addendums via email. He recommended that the Board rejects their bid as non-responsive, award the contract to the lowest responsive and responsible bidder, Sancon Technologies, Inc., and approve a 10% contingency. Director Eckles asked if a bid bond was required and if the lowest bidder will lose their bond. Mr. Esquer stated that they will not lose their bond if their bid is rejected. Discussion followed regarding rejecting all bids and re-bidding the project. Director Eckles asked if there are legal ramifications for rejecting the bid. He asked how Mr. Esquer formed his recommendation. Mr. Esquer stated that, even though it is a minor technicality,the District has the right to reject the bid. He noted that the District also has the right to COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 overlook minor anomalies in the bidding documents but that they do not like to exercise that right unless there is a critical issue. Mr. Burns confirmed that the District has the right to reject non-responsive bids and waive minor irregularities or defects of a bid. President Ooten asked if the specifications stated that the bid proposals must acknowledge all addendums. Mr. Esquer confirmed that the specifications and each addendum included that statement. Motion: To reject the Insituform Technologies, Inc. bid as non-responsive, award a contract to the lowest responsive and responsible bidder, Sancon Technologies, Inc., in the amount of $256,589.15, and approve a 10% contingency in the amount of$25,659. Motion by Brett Eckles, 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, Receive and File: 2. Receive and File the Monthly Capital Improvement Projects Status Report Recommendation: That the Board of Directors receive and file the Capital Improvement Projects Status Report. President Ooten introduced the item. There was no discussion, and the report was received. I. TREASURER'S REPORTS None at this time. J. ATTORNEY'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 19 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22,2021 Action: 1. Consider Adopting Resolution No. 2021-948 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2021-948 Authorizing Remote Meetings President Ooten introduced the item. Mr. Mosher commented that he hopes the Board intends to apply this resolution with great discretion. He stated that the Board has the right to hold remote meetings. He added that the Board should follow the normal procedures if the Board members are available for in-person meetings. President Ooten stated that some agencies place this item on their consent calendar, such as the Orange County Sanitation District (OCSD). Director Perry stated that the District has to adopt this resolution each month for it to be effective. Discussion followed regarding remote meetings. Mr. Burns stated that this resolution will be useful for special circumstances in which the Board cannot fully meet in-person. He confirmed that the District can place this item on the consent calendar of future agendas, but because special findings must be made, he recommended keeping it as an agenda item under Attorney'sReports. Re orts. Discussion followed regarding Assembly Bill (AB) 361. Motion: To adopt Resolution No. 2021-948 Authorizing Remote Meetings. Motion by Mike Scheafer, second by Brett Eckles Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Bob Ooten, Brett Eckles, Mike Scheafer Not Present: Art Perry There was no further discussion. K. 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 COSTA MESA SANITARY DISTRICT PAGE 20 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 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 OCSD's Board meeting, which discussed the expansion of the groundwater replenishment system (GWRS) and other capital improvement projects. He also discussed OCSD's Operations Committee meeting. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry shared that he attended the SARFPA meeting this month, which discussed the federal government's infrastructure bill, Orange County Public Works'Westminster/Garden Grove project, and funding for the Santa Ana River Mainstream Project. 3. Independent Special Districts of Orange County(ISDOC) - (Secretary Schafer) Secretary Schafer shared that ISDOC met remotely on October 3, 2021 and discussed the agenda for their January meeting. She stated that the Municipal Water District of Orange County (MWDOC) is still under construction. She added that the Chief Executive Officer of the Orange County Local Agency Formation Commission (LAFCO) and a representative from Mesa Water District will be ISDOC's next guest speakers. She stated that ISDOC's general meeting was on October 25, 2021. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared that she attended a few CSDA committee meetings remotely. She noted that she will be serving on CSDA's Membership, Professional Development, and Alliance committees next year. She stated COSTA MESA SANITARY DISTRICT PAGE 21 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 that 102 new members joined CSDA in 2021. She discussed CSDA's new Pay What You Can program. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer shared that SDRMA had their Board meeting in early November. He stated that insurance rates are stabilizing and noted that cybersecurity coverage has been very difficult to secure. He added the SDRMA renewed its contract for its Chief Executive Officer, Laura Gill. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Scheafer shared that he attended the Southern California Waste Forum o um on November 10, 2021. He added that the forum mainly discussed driver shortages, steel prices, and the cost of recyclables. Discussion followed regarding cybersecurity insurance and ransomware demands. There was no further discussion. L. OLD BUSINESS None at this time. M. NEW BUSINESS None at this time. N. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Vice President Scheafer commented that the portable restroom on Bermuda Drive has been removed. He inquired about the District's outreach efforts for the Sewer Inspection Rebate Program (SIRP). COSTA MESA SANITARY DISTRICT PAGE 22 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 22, 2021 President Ooten commented that the City of Costa Mesa has expansive databases for communicating emergencies. He asked if the District has access to those systems and if they are allowed to use them for emergency and general communications. Mr. Carroll stated that the District can ask the City for permission to use their communication systems. President Ooten discussed using their system to notify customers of District programs. Director Eckles wished everyone a happy Thanksgiving and thanked Mr. Mosher for his participation. There was no further discussion. 1 O. CLOSING ITEMS Procedural: 1. Adjourn—The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, December 20, 2021. President Ooten adjourned the meeting at 7:29 P.M. r) ,A' , ' cL_ L_e._4A cLIA-q I tir26±tv„ Arlene Schafer Bob Ooten Secretary President