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Minutes - Board - 2022-01-24COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2022 NOTE: THIS 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, Mike Scheafer Members absent Brett Eckles Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Alan Burns (District Counsel), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Marc Davis (District Treasurer), Mark Esquer (District Engineer), Gina Terraneo (Management Analyst II) Others present Mike Carey, CR&R 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 JANUARY 24, 2022 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, and Director Perry were present while Director Eckles was not 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. Ms. Middenway stated that the District did not receive any late communications. She noted that Director Eckles' absence is excused from this meeting due to illness. Procedural: 6. Ceremonial Matters and Presentations. Secretary Schafer requested to adjourn tonight's meeting in honor of Bill Nelson. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ooten opened public comments. Hearing none, he closed public comments. C. CONSENT CALENDAR COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 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 December 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 December 20, 2021 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2022-07 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2022-07 approving District warrants for the month of December in the amount of $573,909.43. 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 December 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 $211,640.96 for December 2021 recycling and disposal services in the January 2022 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $211,640.96 for December 2021 recycling and disposal services to be ratified in the January 2022 warrant register. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 Action (Consent): 8. Accept the occupancy count as presented as 23,058 and direct staff to prepare a warrant to CR&R Environmental Services for $238,961.58 for December 2021 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,058 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,961.58 to be ratified in the January 2022 warrant list. Action (Consent): 9. Receive and File the December 2021 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the December 2021 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File the December 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 Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer Not Present: Brett Eckles There was no further discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS Action, Receive and file: 1. Receive and File the Fiscal Year 2021-22 Mid -Year Budget Review COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 Recommendation: That the Board of Directors receive and file the Fiscal Year 2021- 22 Mid -Year Budget Review. President Ooten introduced the item. There was no discussion, and the report was received. Action, Receive and File: 2. Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2021 Recommendation: That the Board of Directors receive and file the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2021. President Ooten introduced the item. He shared that the District is one of only a few public agencies that produces this report. There was no further discussion, and the report was received. Action, Receive and File: 3. Receive and File FY 2020-25 Strategic Plan Progress Report — FY 2021-22 Second Quarter Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. Vice President Scheafer inquired about the District's Compost Giveaway event. Mr. Carroll stated that the event was postponed last year due to the COVID- 19 pandemic. Vice President Scheafer asked if the District used to give away compost receptacles. Mr. Carroll stated that the previous Compost Giveaway event accepted clothing donations and distributed bags of compost to District customers. He shared that the District will be hosting a shredding event this year as well as a compost event. He noted that the two events may be combined into one. Vice President Scheafer stated that, due to Senate Bill (SB) 1383, there has COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 ..........__ been a lot of discussion about composting on social media. He recommended educating the public about CR&R's composting efforts. Discussion followed regarding composting. Mr. Carroll stated that District staff is in the preliminary phase of planning the shredding and compost event. He noted that staff will be discussing this event with the City of Costa Mesa. Secretary Schafer discussed Emergency Operations Center (EOC) planning and recommended for the Board to be involved in the process. Mr. Carroll confirmed that, if the District's EOC is activated, then the Board has a role in carrying out emergency management procedures. He added that the Board will be included in the training process. President Ooten asked who supplies the compost for the event. Mr. Carroll stated that the compost is provided by CR&R and that it comes from CR&R's Anaerobic Digestor Facility. Vice President Scheafer inquired about other areas that may require smoke testing. Mr. Carroll stated that there are currently no areas that require smoke testing. He noted that the District experienced rain ingress during the last rain event, which he will be discussing with District Engineer, Mark Esquer, to determine if there were inflow issues in the Fairview trunk area. Discussion followed regarding inflow. There was no further discussion, and the report was received. Action, Receive and File: 4. Receive and File 2021 Annual Performance Measurement Report Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 Vice President Scheafer inquired about Mr. Carroll's opinion of the report and noted that there were many green measures and some red measures. Mr. Carroll stated that measures coded in red refer to goals that have not been achieved. He noted that there can be various reasons why goals are not achieved and explained that some goals may need to be updated to be achievable. Vice President Scheafer inquired about the measure of issuing emergency repair permits within 24 hours. Mr. Carroll stated that, for that measure, the District requires permittees to provide certain insurance documents, which can delay the processing time. He shared that some applicants did not submit their insurance documents in a timely manner in order for their emergency permit to be processed in 24 hours. He noted that these instances skewed the overall data for this measure. He stated that the District is hoping to improve on this goal to achieve the benchmark. There was no further discussion, and the report was received. Action, Receive and File: S. Receive and File General Manger's 2021 Performance Goals Recommendation: That the Board of Directors receive and file the General Manager's 2021 Performance Goals and prepare a list of Performance Goals for 2022. President Ooten introduced the item. Mr. Carroll stated that all ten goals were achieved in 2021. Director Perry inquired about the fourth goal on the report. He asked if the District has developed a plan to collect electronic devices. Mr. Carroll stated that District staff has developed a plan for a paper shredding event and a cardboard recycling event. He added that the budget for each event has been developed and that District staff is currently reviewing the logistics. He noted that the District has not planned an COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 electronic waste event but that those materials can be collected as part of the Household Hazardous Waste (HHW) program. Director Perry expressed support for hosting an electronic waste event. He asked if Mr. Carroll enjoys working with the California Special Districts Association (CSDA). Mr. Carroll stated that he enjoys his participation in CSDA very much. He shared that he will be leading the good governance workshop at CSDA's Special District Leadership Academy. Secretary Schafer expressed recognition for Mr. Carroll's involvement in CSDA. President Ooten shared that he is currently working on the General Manager's goals for next year with Mr. Carroll. He asked when those goals will be presented to the Board. Mr. Carroll stated that he emailed the goals to the Board for discussion during closed session at tonight's meeting. There was no further discussion, and the report was received. F. ENGINEER'S REPORTS Action, Receive and File: 1. 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. Director Perry asked if the work at President Pump Station has been completed. Mr. Esquer stated that the project is still underway and should be completed in February. He provided an update on other engineering projects. He noted COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 that he will be meeting with the Orange County Sanitation District (OCSD) to discuss the regional sewer connection at Gisler Avenue. Discussion followed regarding OCSD. President Ooten offered to assist Mr. Esquer in discussing the project with OCSD management. Mr. Esquer noted that there was a typo in the report for Capital Improvement Project #337. He stated that the proposed project is less than $800 (not $80). There was no further discussion, and the report was received. G. TREASURER'S REPORTS Action: 1. Approve the Investment Report for the Month of December 2021 Recommendation: That the Board of Directors approve the Investment Report for the month of December 2021. President Ooten introduced the item. District Treasurer, Marc Davis, provided report details. He stated that there have been major market fluctuations during the first part of the year, likely due to tensions surrounding Ukraine and potential increases to interest rates by the Federal Reserve. He added that three purchases were made in December 2021. Vice President Scheafer asked to review the interest rate comparison chart on page 3 of the report. Mr. Davis stated that the District's rate is substantially higher than the Local Agency Investment Fund (LAIF). Discussion followed regarding interest rate stability. Vice President Scheafer expressed recognition for Mr. Davis' report. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 Director Perry asked if Mr. Davis works with other public agencies and how the District's investments compare to other agencies. Mr. Davis stated that he works with multiple public agencies and that each agency is different based on their investment policy and risk tolerance. He shared that some agencies might earn more if they have more commercial investments and some agencies might earn less if they are more conservative. He noted that the District's investment activity is average compared to other public agencies. Motion: To approve the Investment Report for the month of December 2021. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer Not Present: Brett Eckles There was no further discussion. H. ATTORNEYS REPORTS Action: 1. Consider Adopting Resolution No. 2022-952 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2022-952 Authorizing Remote Meetings. President Ooten introduced the item. Director Perry asked if District staff will be returning to the office on January 31, 2022. Mr. Carroll provided an update regarding the COVID-19 pandemic for the Orange County area. He noted that District staff may continue to telecommute if hospitalization cases for the coronavirus continue to trend upwards. Director Perry asked if anyone on staff has contracted the virus presently. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 Mr. Carroll stated that no staff members presently have coronavirus. He noted that he will update the Board of his decision to reopen District offices. Motion: To adopt Resolution No. 2021-951 Authorizing Remote Meetings. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer Not Present: Brett Eckles 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 days 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 Groundwater Replenishment Steering Committee meeting. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry stated that there will be a SARFPA meeting Thursday, January 27, 2022, but he will be out of town. He asked if President Ooten can attend on his behalf. President Ooten stated that he might be able to attend the meeting. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer shared that the new association member was introduced at the ISDOC Board meeting. She stated that ISDOC is inviting special district COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 members to contribute to their website. She discussed new ISDOC dues and noted that there will be no dues for 2022. She shared that Carolyn Emery of the Orange County Local Agency Formation Commission of Orange County (OC LAFCO) is the speaker for an ISDOC meeting scheduled this Thursday, January 27, 2022. She noted that the meeting will also feature Mesa Water District. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared that she attended a CSDA Board meeting on Friday, January 21, 2022. She stated that she was re-elected to CSDA's Alliance Committee for another two years. She added that CSDA thanks every special district that has written support letters to legislators. She discussed ballot initiative 21-004281. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer shared that he attended an SDRMA meeting and was selected as Board President for 2022. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Secretary Schafer shared that she attended a Costa Mesa Chamber of Commerce Government Affairs Committee meeting and a Water Advisory Committee of Orange County (WACO) meeting. Director Perry shared that he attended the City of Costa Mesa's voting districts workshop. He reported that only District 4 will be adjusted. He recited the rules and goals of redistricting. Discussion followed regarding future City of Costa Mesa redistricting meetings. President Ooten shared that he also attended the WACO meeting. He reported that the Central Valley's water supply is low so they created a tile system to collect more water. He shared that he met with Mr. Carroll to COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 discuss the District's Proposition 218 notice, the District's vaccination process, negotiations with CR&R, CR&R service issues, and hiring a demographer for redistricting. He announced that the District hired a new Wastewater Maintenance Worker II. There was no further discussion. J. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Vice President Scheafer asked if Mr. Carroll will be providing a presentation at the January 26th Wastewater Workshop meeting. Mr. Carroll stated that he will be providing a presentation and that it is not considered a Board meeting. District Counsel, Alan Burns, stated that only two Board members may participate in the workshop. The Board agreed to attend the meeting but not participate in the discussion. Vice President Scheafer commented that the waste hauler that services his property in Palm Springs, Burrtec, allows customers to place five large items out for disposal per week. Secretary Schafer commented that the City of Newport Beach allows five large item pickups per year. She also confirmed that the Liaison Committee COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 meeting has been cancelled for this month and rescheduled for February 11, 2022 at 8:00 a.m. There was no further discussion. M. ADJOURN TO CLOSE SESSION Discussion: 1. Performance evaluation (Gov. Code §54957) Title: General Manager President Ooten adjourned to closed session at 5:38 p.m. Mr. Burns stated that the closed session is to discuss a performance evaluation per Gov. Code 54957 for the General Manager, where the designated labor negotiator/agency designated representative is President Ooten and the unrepresented party is the General Manager. Discussion: 2. Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Ooten Unrepresented party: General Manager President Ooten adjourned to closed session at 5:38 p.m. N. RECONVENE TO OPEN SESSION 1. Report Out of Closed Session President Ooten reconvened from closed session at 6:03 p.m. and noted that no reportable action was taken during the 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, February 28, 2021. President Ooten adjourned the meeting at 6:03 p.m. in honor of Bill Nelson who served on the Orange County Cemetery District and was a past President of CSDA. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 24, 2022 Arlene Schafer Secretary Bob Ooten President PAGE 15