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Minutes - Board - 2022-02-28COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 28, 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, Brett Eckles, Mike Scheafer Members absent None 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 Deborah Diep, Center for Demographic Research at California State University, Fullerton Judith Gielow, Citizens Advisory Committee member and District resident Mike Carey, CR&R Meeting called to order at 4:34 P.M. A. OPENING ITEMS Procedural: 1. Call to Order — President Ooten COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 President Ooten called the meeting to order at 4:34 P.M. Procedural: 2. Pledge of Allegiance — President Ooten President Ooten led the Pledge of Allegiance. Procedural: 3. Invocation — Vice President Scheafer Vice President Scheafer led the Invocation. Procedural: 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) District Clerk and Public Information Officer, Noelani Middenway, conducted roll call and noted that President Ooten, Vice President Scheafer, Secretary Schafer, Director Perry, and Director Eckles were present. Procedural: 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Ms. Middenway stated that the District did not receive any late communications. Procedural: 6. Ceremonial Matters and Presentations. None. 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 FEBRUARY 28, 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 January 11, 2022 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 January 24, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve Payroll Transparency Disclosure for January 2022 Recommendation: That the Board of Directors approve and file the report. Action (Consent): S. Adopt Warrant Resolution No. CMSD 2022-08 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2022-08 approving District warrants for the month of January in the amount of $1,224,763.43. Action (Consent): 6. 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): 7. Approve the preparation of a warrant to CR Transfer in the amount of $187,559.15 for January 2022 recycling and disposal services in the February 2022 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $187,559.15 for January 2022 recycling and disposal services to be ratified in the February 2022 warrant register. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 Action (Consent): 8. Accept the occupancy count as presented as 23,063 and direct staff to prepare a warrant to CR&R Environmental Services for $239,013.40 for January 2022 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,063 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for January 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,013.40 to be ratified in the February 2022 warrant list. Action (Consent): 9. Receive and File the January 2022 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the January 2022 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File the January 2022 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 Arlene Schafer, 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. D. PUBLIC HEARINGS Action: 1. Open Public Hearing - Consider Voting Division Adjustments After Decennial Census President Ooten opened the public hearing at 4:38 p.m. District Counsel, Alan Burns, provided an overview of the public hearing process. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 Action: 2. Receive Presentation to Consider Voting Division Adjustments After Decennial Census Director of the Center for Demographic Research at the California State University, Fullerton, Deborah Diep, gave a presentation on the redistricting process and the data used for the District's redistricting efforts. She discussed the District's total 2020 Census population of 23,657 and the differences in population growth between the existing voting divisions. She noted that the differences within the target population percentage spread should be under 10%. She explained the redistricting criteria, including topography, geography, cohesiveness, contiguousness, and retaining communities of interest. She displayed block group population maps for Hispanic/Latino of any race, non -Hispanic whites, non -Hispanic Asians, non - Hispanic blacks or African Americans, non -Hispanic American Indian or Native Alaskans, non -Hispanic Native Hawaiian or Pacific Islanders, other non -Hispanic race, and non -Hispanic two or more races. She also displayed the citizen voting age population (CVAP) block group populations for Hispanic or Latino of any race, non -Hispanic whites, and non -Hispanic Asians. She shared a table displaying redistricting data by race and ethnicity. She discussed the proposed Plan 1 map, which has a percentage spread of 9.77%. She shared the CVAP breakdown for the existing divisions and for Plan 1 and noted that there is little variance between the two. She explained the timeline for the redistricting process and stated that the next public hearing is scheduled for March 14, 2022. Vice President Scheafer stated that voters in Divisions 2 and 5 are impacted by the new map. He asked if the voters in Division 2, who will be redistricted to Division 5, will be able to vote in the next election cycle. Ms. Diep stated that voters in Divisions 1, 3, and 5 will be voting in the next election cycle. She confirmed that the voters who are being redistricted from Division 2 to Division 5 will be voting in the next election cycle in November 2022. Vice President Scheafer inquired about the number of voters being redistricted from Division 2 to Division S. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 Ms. Diep stated that no more than a few hundred voters will be moving from Division 2 to Division 5. Action: 3. Receive Comments President Ooten opened public comments. Hearing none, he closed the public hearing. Action: 4. Close the Public Hearing President Ooten closed the public hearing at 4:57 p.m. Action: 5. Open Public Hearing - Consideration of Annual Wastewater Collection Charges President Ooten opened the public hearing at 4:57 p.m. and provided opening statements. Mr. Burns provided an overview of the of the public hearing process. Action: 6. Receive Presentation of Report Justifying Increases - Public Hearing and Consideration of Annual Wastewater Collection Charges to be Collected with the General Taxes General Manager, Scott Carroll, stated that the proposed wastewater collection charges for 2022-2027 meet the substantive requirements for Proposition 218. He proceeded to review the Proposition 218 requirements. President Ooten asked if all the appropriate mailings and publishing of notices for this hearing have occurred. Ms. Middenway confirmed that all appropriate mailings and publishing of notices for this hearing have occurred. President Ooten asked for a status report on the protests that the District has received to date. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 Ms. Middenway stated that the District has received 10 written protests out of 26,302 parcels. Action: 7. Receive Comments President Ooten opened public comments. He stated that, by law, only written protests will be counted. Secretary Schafer asked if all 10 written protests are from the same area within the District's service area. Ms. Middenway stated that the protests are from different areas. Director Eckles asked if the Costa Mesa Chamber of Commerce had any follow-up questions after their meeting with the District. Mr. Carroll stated that they had no questions. Director Eckles asked if the 10 protests were against any rate change. Mr. Carroll confirmed that all 10 protests were against any rate change. President Ooten stated that the protest failed. He asked for a motion to adopt the schedule of charges in Resolution No. 2022-954 for wastewater collections services for the years 2022-2027. Director Perry made a motion to adopt Resolution No. 2022-954. Vice President Scheafer seconded the motion and requested to discuss the item before voting. He stated that the District received some comments from a resident who objected to not being able to protest. Mr. Carroll stated that a District resident inquired about emailed protests as a form of written protests. He noted that Proposition 218 was passed in the 1990s and did not consider electronic messages as written protests, nor did it clearly define "written" protest. He stated that the District has chosen to COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 interpret it as written only (handwritten or typed on paper). He added that if the Board wishes to consider electronic protests, then the District can draft a new policy. Vice President Scheafer asked if the District can legally adopt a policy that accepts written and electronic protests or if the State legislature would need to adopt the policy beforehand. Mr. Burns clarified that the District can legally adopt a policy that includes electronic messaging as a form of a written protest. Vice President Scheafer confirmed that, if the District had accepted this resident's electronic protest, then the District received a total of 11 protests. Director Eckles stated that he will not be supporting Resolution 2022-954 as he does not consider it to be the right plan for the District. Motion: To determine that a majority protest did not occur for increasing wastewater charges, and to adopt Resolution No. 2022-954 confirming the charges and for the imposition of the charges on the tax roll. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: Brett Eckles Action: 8. Close the Public Hearing Citizens Advisory Committee (CAC) member and District resident, Judith Gielow, commented that she is pleased with the compassion that the Board shows with the rate increase. She stated that older residents may not be able to fully afford the new rates, but that the rate increase has been established for the right purpose. President Ooten closed the public hearing at 5:13 p.m. Director Perry left the meeting at 5:13 p.m. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 E. GENERAL MANAGER'S REPORTS Action: 1. Consider Approving out-of-state travel for the Finance Manager to attend the 2022 Springbrook National User Group (SNUG) Conference in Portland, Oregon on April 4-6, 2022. Recommendation: That the Board of Directors consider approving out-of-state travel for the Finance Manager to attend the 2022 Springbrook National User Group (SNUG) Conference in Portland, Oregon on April 4-6, 2022. Mr. Carroll presented the item. He noted that, because the 2022 Springbrook National User Group (SNUG) Conference is located out-of-state, it requires Board approval. Director Eckles confirmed that this item is in the District's budget but requires Board approval. Mr. Carroll confirmed that this item is a formality. Motion: To approve out-of-state travel for the Finance Manager to attend the 2022 Springbrook National User Group (SNUG) Conference in Portland, Oregon on April 4-6, 2022. Motion by Brett Eckles, second by Arlene Schafer. 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. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the Monthly District Engineer's Report and Capital Improvement Projects Status Recommendation: That the Board of Directors receive and file the District Engineer's Report and Capital Improvement Projects Status. President Ooten introduced the item. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 There was no discussion, and the report was received. Action: 1. Approve New Project #341 Elden Force Main Redundancy Recommendation: That the Board of Directors: 1. Consider approving new Project #341 Elden Force Main Redundancy; and 2. Consider approving appropriations of $70,000 from the Project #326, 19th Street Force Main Replacement Project, to the new Project #341 Elden Force Main Redundancy Project District Engineer, Mark Esquer, provided a presentation on Project #341 Elden Force Main Redundancy. He described the existing force main. Vice President Scheafer asked about the flow into this force main and where it comes form. Mr. Esquer listed the District's concerns with this force main, which include the impacts of an earthquake, the ability to perform maintenance, condition assessment, future refurbishment, and the capacity to handle outages and outside construction impacts. He shared that the District is looking into commissioning a planning -level study to determine the District's best options. He stated that the potential options are to install two force mains in one bridge, install one force main in one bridge and another one in a different bridge, or install one force main in a bridge and one underground. He reviewed the project's estimated budget, which is about $7.1 million dollars. He discussed how the District may be able to fund this project through the federal government's $1.2 trillion infrastructure bill. He noted that the project would have to be completed by 2026 to qualify for federal funding. He suggested for the District to discuss this project with the Orange County Board of Supervisors. Secretary Schafer stated that the District will be represented by a new county supervisor by 2026. She recommended contacting the California Special Districts Association (CSDA) to discuss funding. Director Eckles inquired about other redundant force mains. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 Mr. Esquer stated that there are two force mains at the 19th Street pump station and at the Iowa Street pump station. He noted that these projects were relatively smaller than Project #341. Director Eckles inquired about the project's planning study. Mr. Esquer stated that it would take about six weeks. Director Eckles asked if the project will undergo a competitive bidding process. Mr. Esquer confirmed that the project will be open to proposals. Director Eckles asked if District staff or the Board will select the final proposal. Mr. Esquer stated that District staff will select the final proposal. Mr. Carroll confirmed that the General Manager has the authority to approve projects under $125,000 dollars. Director Eckles requested a Study Session report regarding the final proposal. Discussion followed regarding the project's budget. Vice President Scheafer inquired if the project would impact the Santa Ana Country Club. Mr. Esquer stated that the project will cause traffic disruptions. Mr. Carroll stated that the District can mitigate disruptions by performing night work or horizontal drilling. Discussion followed regarding the various options for installing the two force mains. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 President Ooten asked if the bridges were built after the Northridge earthquake. Mr. Esquer stated that the District has requested Caltrans' drawings for the bridges and 55 freeway. He noted that the bridges may have been retrofitted after the Northridge earthquake. Motion: To approve new Project #341 Elden Force Main Redundancy and approve an appropriation of $70,000 from the Project #326,19th Street Force Main Replacement Project, to the new Project #341 Elden Force Main Redundancy Project. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Bob Ooten, Brett Eckles, Mike Scheafer Not Present: Art Perry G. TREASURER'S REPORTS None at this time. H. ATTORNEY'S REPORTS Action: 1. Consider Adopting Resolution No. 2022-955 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2022-955 Authorizing Remote Meetings. President Ooten introduced the item. Vice President Scheafer stated that the Orange County Council of Governments (OCCOG) presents this item at the beginning of their meetings. Mr. Burns stated that the items must be presented and adopted every 30 days. Motion: To adopt Resolution No. 2022-955 Authorizing Remote Meetings. Motion by Mike Scheafer, second by Arlene Schafer. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 Final Resolution: Motion Carries 3-0-2 Aye: Arlene Schafer, Bob Ooten, Mike Scheafer Not Present: Art Perry, 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 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 discussed OCSD's monthly status report and legislative updates. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry was not present to report on SARFPA. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer stated that the Board's 700 forms are due soon. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared that she will be attending a strategic plan conference in San Diego. She stated that CSDA's deadline to submit nominations is May 2, 2022. She announced that SDRMA's Spring Education Day is on March 22, 2022 in Sacramento, the Special District Leadership Academy will take place April 3 — 61 2022 in San Diego, and that CSDA Legislative Days will take place May 17 —18, 2022 in Sacramento. She shared COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 that CSDA is offering 90-day trial memberships and noted that CSDA currently has over 1,300 members. S. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer shared that he attended an SDRMA board meeting this month. He discussed casualty and property liability rates. He shared that he is attending the Public Agency Risk Conference at the Disneyland hotel. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Ooten shared that he attended the Water Advisory Committee of Orange County (WACO) meeting. He also discussed the Orange County Local Agency Formation Commission's (OCLAFCO) January meeting. There was no further discussion. T. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Eckles requested for District staff to revisit its policy regarding Proposition 218 protests. President Ooten suggested to research other cities and special districts' Proposition 218 policies. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28, 2022 Director Eckles stated that portable trash cans and other items will be needed at some upcoming community events like the Pilot Cup soccer tournament. He expressed concern for those who are currently suffering in the world. Secretary Schafer requested for Mr. Burns to provide a legislative report at a future Study Session meeting. Vice President Scheafer asked if CR&R can provide trash cans for the soccer event. CR&R representative, Mike Carey, stated that, depending on the number of trash cans needed, CR&R will try to provide them. There was no further discussion. M. ADJOURN TO CLOSED SESSION Discussion: 1. Performance evaluation (Gov. Code §54957) Title: General Manager President Ooten adjourned to closed session at 6:07 p.m. He stated that the closed session is to discuss a performance evaluation for the General Manager and conference with labor negotiator, where the designated labor negotiator/agency designated representative is himself 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 6:07 p.m. N. RECONVENE TO OPEN SESSION 1. Report Out of Closed Session COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 28,2022 President Ooten reconvened the meeting from closed session at 6:41 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 6:41 p.m. Arlene Schafer Secretary Bob Ooten President