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Minutes - Board - 2022-06-27COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING JUNE 27, 2022 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), Noelani Middenway (District Clerk & Public Information Officer), Kaitlin Tran (Finance Manager), Mark Esquer (District Engineer), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II), Marc Davis (District Treasurer), Alan Burns (District Counsel), Nabila Guzman (Management Analyst 1), Autumn Alvarez (Accounting Clerk) Others present Mike Carey, CR&R Judith Gielow, District resident and Citizens Advisory Committee member Jennifer Nentwig, Tripepi Smith Robert Pace, District resident Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Ooten COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 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. I1,14GTin Procedural: 6. Ceremonial Matters and Presentations. None. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ooten opened public comments. District resident, Robert Pace, commented that his trash carts are repeatedly missed by CR&R for pickup. He provided details regarding his trash service issues and noted that he has called and emailed the District multiple times. He shared that his regular collection day is Monday, while street sweeping COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 takes place on Tuesday. He added that this has been an ongoing issue for the past 18 months, but that customers in other neighborhoods like Mesa Verde are not experiencing the same service issue. Director Eckles asked General Manager, Scott Carroll, if he is aware of the trash service issues on Monrovia Avenue. Mr. Carroll stated that he was unaware of these issues, but other District staff members may have more information. He noted that he will follow up with CR&R regarding missed trash pickups. Mr. Pace stated that he does not know how to contact his District representative, but that he sent an email via the District website and never received a response. He noted that he has called District staff many times regarding this issue. He added that District staff has been very nice in handling this issue but has not followed up with him with a solution. Secretary Schafer asked if Mr. Pace received any phone calls directly from CR&R about trash service delays. Mr. Pace stated that he has received one phone call from CR&R but has had difficulty when trying to contact them. Hearing no additional comments, President Ooten 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 May 10, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUKE 27, 2022 Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting Minutes of May 23, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2022-12 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2022-12 approving District warrants for the month of May in the amount of $1,204,407.32. 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 May 2022 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 $183,802.11 for May 2022 recycling and disposal services in the June 2022 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $183,802.11 for May 2022 recycling and disposal services to be ratified in the June 2022 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 23,084 and direct staff to prepare a warrant to CR&R Environmental Services for $239,231.03 for May 2022 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,084 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,231.03 to be ratified in the June 2022 warrant list. Action (Consent): 9. Receive and File the May 2022 Organics Tonnage Report COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUKE 27, 2022 Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the May 2022 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Approve the Investment Report for the Month of May 2022 Recommendation: That the Board of Directors approve the Investment Report for the month of May 2022. Action (Consent):12. Receive and File May 2022 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 13. Adopt Resolution No. 2022-962 Updating the Records Retention Schedules and Authorize the Destruction of Records. Recommendation: That the Board of Directors adopt Resolution No. 2022-962 Updating the Records Retention Schedule and Authorize the Destruction of Records. Motion: To approve the Consent Calendar as presented. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. D. PUBLIC HEARINGS Action: 1. Notice of Public Hearing Before Liens are Placed in the FY22-23 Tax Roll and Adopt Resolution No. 2022-963 Recommendation: 1. That the Board of Directors approve the District to add the unpaid back billing charges to the upcoming tax roll for FY 22-23. 2. Adopt Resolution No. 2022-963 Certifying To the Board of Supervisors and County Auditor a Statement of Delinquent and Unpaid Charges for Sewer and Other Services and Requesting Collection with the Annual Taxes Imposing a Lien. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DUNE 27, 2022 President Ooten opened the public hearing at 4:37 p.m. Ms. Middenway stated that the District received no protests for this hearing. President Ooten closed the public hearing at 4:38 p.m. and welcomed a motion to approve the resolution. Director Eckles asked if the District's errors in billing resulted in delinquent charges and if these customers have had an opportunity to appeal. Mr. Carroll confirmed that these customers have had an opportunity to appeal the charges and to request an interest -free payment plan, but that none have requested either option. Vice President Scheafer asked if any of these properties have been incorrectly billed for more than two years. Mr. Carroll stated that the District's limit for back billing customers is three years. District Counsel, Alan Burns, confirmed that state law regulates back billing limitations. Director Eckles stated that if a resident has an issue with back billing to contact District staff and appeal to the Board if necessary. He encouraged residents with billing discrepancies to work with the District to resolve these issues. He noted that he supports the motion due to no disputes. Motion: 1. To approve the District to add the unpaid back billing charges to the upcoming tax roll for FY 22-23. 2. To adopt Resolution No. 2022-963 certifying to the Board of Supervisors and County Auditor a statement of delinquent and unpaid charges for sewer and other services and requesting collection with the annual taxes imposing a lien. Motion by Art Perry, second by Arlene Schafer. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. E. GENERAL MANAGER REPORTS Action:1. Consider Adopting Administrative Regulations No. 120.00 Pertaining to Bilingual Pay for Qualified Employees Recommendation: That the Board of Directors approve adopting Administrative Regulations No. 120.00 pertaining to bilingual pay for qualified employees. President Ooten introduced the item. Mr. Carroll stated that this item has been discussed at a few previous Board meetings. He reassured the Board that not all employees will be eligible for bilingual pay since it is based on an employee's position, level of interaction with the public, and the General Manager's discretion. Director Perry asked if there is an estimated number of employees that are currently eligible for bilingual pay. Mr. Carroll stated that there is currently one eligible employee. Motion: To approved adopting Administrative Regulations No. 120.00 pertaining to bilingual pay for quailed employees Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten No: Brett Eckles There was no further discussion. Action: 2. Consider Approving Appropriating $154,631 from CalRecycle SB 1383 Local Assistance Grant Program to the District's FY 2022-23 Budget. Recommendation: That the Board of Directors approve appropriating $154,631 from CalRecycle SB 1383 Local Assistance Grant Program to the District's FY 2022- 23 Budget. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 President Ooten introduced the item. Director Perry inquired about the account that the grant money was deposited into. Mr. Carroll stated that the funds have been deposited into the Solid Waste Fund. Director Perry asked when the District submitted their application to CalRecycle. Mr. Carroll stated that he is unsure as to when the District applied but that the grant money has already been received. Director Perry asked if the District received a larger amount of grant money than other agencies. Mr. Carroll stated that the District received a substantial amount since not many agencies submitted an application. President Ooten asked if the District has informed CalReycle how the District intends to spend the grant money. Mr. Carroll stated that CalRecycle has received the District's spending plan. He noted that CalRecycle must approve any amendments to the plan. President Ooten stated that the Board has discussed other methods for collecting food scraps. Mr. Carroll noted that those additional methods will be included in the District's educational plan. Director Eckles requested for the Board to review District staffs public outreach information. Vice President Scheafer inquired about partnering with food share agencies. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Tripepi Smith representative, Jennifer Nentwig, confirmed that they have partnered with Abound Food Care. Motion: To approve appropriating $154,631 from CalRecycle SB 1383 Local Assistance Grant Program to the District's FY 2022-23 Budget. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten, Brett Eckles There was no further discussion. Action: 3. Consider Voting for One Candidate to the California Special Districts Association Board of Directors Seat B Recommendation: That the Board of Directors Vote for California Special Districts Association Board of Directors Seat B. President Ooten introduced the item. Ms. Middenway presented report details and the names of the three candidates running for Southern Network Seat B. Vice President Scheafer asked when the candidate information was updated. Ms. Middenway stated that the District received the additional information this afternoon from the California Special Districts Association (CSDA). Secretary Schafer recommended voting for Don Bartz. She shared her experience working with him. She noted that he is a general manager and has participated in two CSDA committees. Director Eckles asked when the Board needs to submit their vote. Ms. Middenway stated that the deadline is July 11, 2022. Director Eckles requested to review this item at the July Study Session. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Ms. Middenway stated that the July Study Session is scheduled for July 12, 2022. She noted that the Board can schedule a special meeting if needed. Vice President Scheafer expressed support for Don Bartz based on his resume and application. He noted that the other two candidates did not provide sufficient information. Motion: To vote for Don Bartz for California Special Districts Association Board of Directors Seat B. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten No: Brett Eckles There was no further discussion. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status Recommendation: That the Board of Directors receive and file the Capital Improvement Status Report. President Ooten introduced the item. District Engineer, Mark Esquer, provided updates on three capital improvement projects. There was no further discussion, and the report was received. G. TREASURER'S REPORTS Action: 1. Consider Adopting Resolution 2022-964 Authorizing the Costa Mesa Sanitary District to Enter Into the Joint Exercise of Powers Agreement Relating to the California CLASS and to invest in shares of the California CLASS COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Recommendation: That the Board of Directors consider adopting Resolution 2022- 964 authorizing the District to enter into the Joint Exercise of Powers Agreement Relating to the California Cooperative Liquid Assets Securities System (CLASS) and to invest in shares of the California CLASS. President Ooten introduced the item. District Treasurer, Marc Davis, presented report details. He stated that the Board can join the California Cooperative Liquid Assets Securities System (CLASS) as a participant or founding participant. Director Eckles asked if there have been any changes or new information regarding CLASS since the Board's previous discussion at the June Study Session. Mr. Davis stated that the Joint Exercise of Powers Agreement (JPA) has been officially adopted. He noted that CLASS is not currently open for investments. Director Perry inquired about Mr. Davis' recommendation. Mr. Davis stated that CLASS is a good alternative to the District's current investment pool, Local Agency Investment Fund (LAIF). He noted that joining as a participant or founding participant does not necessarily add value. Director Perry asked if there is any cost associated with being a founding participant. Mr. Davis confirmed that there are no additional costs. He added that there is no timeframe established for joining. Director Perry asked if this item has been discussed with other agencies. Mr. Carroll stated that most agencies are still learning about CLASS. He stated that CSDA shared information about CLASS at the general manager conference. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Secretary Schafer expressed support for joining CLASS. Director Eckles asked how many founding participants have signed up for CLASS. Mr. Davis stated that CLASS currently has three founding participants. Director Eckles inquired about the timeline for investing. Mr. Davis stated that there is no end date for investing. Director Eckles suggested waiting to join until there are more established procedures. Vice President Scheafer stated that, based on the information provided by Mr. Davis, there is no risk associated withjoining CLASS. He added that being a founding participant gives the District an opportunity to influence the establishment of CLASS. He noted that the District will be able to leave CLASS if they no longer find it suitable. He expressed support for joining as a founding participant. Mr. Davis clarified that there is no track record in California of this investment pool. He added that CLASS investment managers operate in 10 other states with the same program, but he does not have any information regarding their performance status. Director Perry also expressed support for joining CLASS. Motion: To adopt Resolution 2022-964 authorizing the District to enter into the Joint Exercise of Powers Agreement Relating to the California Cooperative Liquid Assets Securities System (CLASS) and to invest in shares of the California CLASS. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Coten No: Brett Eckles COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 There was no further discussion. Action: 2. Consider Adopting Resolution 2022-965 Approving the Statement of Investment Policy and Delegating the Investment Function to the District Treasurer for Fiscal Year 2022-23 Recommendation: That the Board of Directors adopt Resolution 2022-965 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for Fiscal Year 2022-23. President Ooten introduced the item. Mr. Davis stated that this report is an annual agenda item. He noted that there is no current requirement to adopt an investment policy. He stated that this resolution delegates the District's investment function to the District Treasurer for one year. He added that the only edit to the resolution will be the added language regarding CLASS. Motion: To adopt Resolution 2022-965 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for Fiscal Year 2022-23. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten, Brett Eckles There was no further discussion. H. ATTORNEY'S REPORTS Action: 1. Consider Adopting Resolution No. 2022-966 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2022-966 Authorizing Remote Meetings. President Ooten introduced the item. Motion: To adopt Resolution No. 2022-966 authorizing remote meetings. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Oaten, 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 shared that OCSD has two members that are running for the position of vice president. He discussed OCSD Board positions and terms. He shared that OCSD's Wastewater 101 Citizens Academy had about eight participants. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry stated that SARFPA's budget was approved for Fiscal Year 2022-23. He announced the new chairmen and vice chair of SARFPA's Executive Committee. He discussed items related to the state legislative report, provided updates on the Prado Dam and Westminster/Garden Grove project, and noted that SARFPA's July meeting has been cancelled. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer shared that she attended the May ISDOC meeting. 4. California Special Districts Association (CSDA) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Secretary Schafer stated that she attended a CSDA Executive Board meeting and a chapter meeting. She also shared that she attended CSDNs Legislative Days in Sacramento. S. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer stated that he attended an SDRMA Board meeting last week and discussed liability rates and cybersecurity. Director Perry asked if the District has a cybersecurity position. Mr. Carroll stated that the District currently contracts with Acorn Technologies for cybersecurity measures. He shared that District staff periodically receives cybersecurity training. Discussion followed regarding cybersecurity measures by other agencies. 6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Scheafer shared that he attended a Municipal Water District of Orange County (MWDOC) presentation by Larry Dick regarding the Poseidon desalination plant. 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 COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 27, 2022 Director Eckles asked how often the District receives reports on missed trash pickups. Mr. Carroll stated that District staff received that report monthly when there was a high volume of missed pickups. He noted that this issue has decreased. Director Eckles requested to review the report to determine if CR&Ts performance has improved. President Ooten requested a status update regarding CR&R negotiations and a three -cart trash system. Director Perry inquired about the Solid Waste Ad Hoc Committee. Mr. Carroll stated that the Solid Waste Ad Hoc Committee meets on an as - needed basis. He shared that he will provide an update on CR&R negotiations at a future meeting. Vice President Scheafer suggested having a Solid Waste Ad Hoc Committee meeting. Secretary Schafer shared that ISDOC will have its first in person meeting on July 281h at 11:30 a.m. She requested to review Senate Bill 739 at an upcoming Study Session. Vice President Scheafer inquired about a social media post regarding fireworks disposal. Ms. Middenway confirmed that District staff is working on it. Discussion followed regarding the disposal of American flags. President Ooten suggested sharing the protocols for proper disposal of American flags. Vice President Scheafer commented on his account with CR&R. COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DmECTORS REGULAR MEETING HELD JUNE 27, 2022 There were no additional comments. M. ADJOURN TO CLOSED SESSION None at this time. N. RECONVENE TO OPEN SESSION None at this time. O. CLOSING ITEMS Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, July 26, 2022. President Ooten adjourned the meeting at 5:35 p.m. Arlene Schafer B Ooten TV Secretary President