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Minutes - Board - 2022-10-13COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION OCTOBER 13, 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 Art Perry, Arlene Schafer, Bob Ooten, Brett Eckles, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk and Public Information Officer), Gina Terraneo (Management Analyst II), Alan Burns (District Counsel), Dyana Bojarski (Administrative Services Manager), Kaitlin Tran (Finance Manager), Nabila Guzman (Management Analyst I), David Griffin (Interim Code Enforcement Officer) Others present Julie Barreda, CR&R Mike Carey, CR&R Phatthany Keobounkhong, Young Southeast Asian Leaders Initiative fellow Ratana Kheang, Young Southeast Asian Leaders Initiative fellow Meeting Called to order at 8:00 A.M. A. OPENING ITEMS Procedural: 1. 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 bylaw.) COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD OCTOBER 13, 2022 President Ooten called the meeting to order at 8:00 A.M. District Clerk and Public Information Officer, Noelani Middenway, noted that President Ooten, Vice President Scheafer, Secretary Schafer, Director Perry, and Director Eckles were present. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ooten opened public comments. Hearing none, he closed public comments. C. ITEMS OF STUDY Action, Receive and File: 1. Receive and File September 2022 Code Enforcement Officer Report Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the report. Interim Code Enforcement Officer, David Griffin, provided report details for September 2022. He discussed one instance of scavenging and noted that scavenging activity has reduced. He shared the District's scavenging warning notice. Director Eckles thanked Mr. Griffin for his efforts to reduce scavenging. Mr. Griffin stated that he will continue to patrol the hotspot areas for scavenging activity. He discussed trash container enforcement and reported that 113 notices were issued for trash carts in public view. He added that there were no cases of graffiti for September 2022. President Ooten inquired about the City of Costa Mesa's Code Enforcement. Mr. Griffin stated that the City's Code Enforcement Department will inform him of cases pertaining to the District. COSTA MESA SANrrARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD OCTOBER 13, 2022 Discussion followed regarding the City's enforcement measures for multifamily properties. President Ooten inquired about the District's requirements regarding trash carts in public view. Mr. Griffin discussed his procedures for addressing trash carts in public view. Secretary Schafer recognized CR&R for their efforts to message customers about trash delays. There was no further discussion, and the report was received. Action, Receive and File: 2.2022 Missed Trash Pick -Up (January — September) Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. General Manager, Scott Carroll, provided report details. He noted that there were 178 missed collections in September 2022. He discussed the primary causes of the trash delays. He noted that less than 1% of District trash Customers experienced a missed collection in the last month. Director Eckles inquired about the rate of missed trash collections prior to the COVID-19 pandemic. Mr. Carroll stated that the District was not tracking this data using the same method prior to the COVID-19 pandemic. He noted that the rate of missed trash collections was most likely lower than the current rate. Director Eckles requested to review any available data related to this issue. He inquired about the recent increase in missed trash collections over the last two months. CR&R representative, Julie Barreda, stated that she can review CR&R's system reports to gather data prior to 2020. She added that the last two months have been very challenging for CR&R due to labor issues and union negotiations. She stated that CR&R is struggling to compete with logistics COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD OCTOBER 13, 2022 companies, such as FedEx, UPS, and Amazon, for workers. She discussed CR&R's recruitment efforts. She provided an update on the District's truck fleet. Discussion followed regarding union and non -union trash truck drivers. There was no further discussion, and the report was received. Action: 3. Discuss and Provide Feedback to Agreed Upon Negotiation Bullet Points for Future Agreement with CR&R Environmental Services Recommendation: That the Board of Directors discuss and provide feedback to the agreed -upon negotiation bullet points for a future agreement with CR&R Environmental Services. President Ooten introduced the item. Mr. Carroll provided report details. He stated that the next step is to present a draft agreement to the Board after it is reviewed by District Counsel. Director Perry asked if CR&R's agreement includes mailers and "knock and talk" outreach. Mr. Carroll confirmed that both of those items are included in the proposed agreement. Director Eckles asked why the District is amending their agreement with CR&R. Mr. Carroll stated that the amendments reflect the District's plan to transition to a three -cart system. Director Eckles inquired about tonnage and flat monthly fees. Mr. Carroll stated that tonnage amounts are based on past trends and can fluctuate. He added that the flat rate is a price per unit charge and is negotiated between the District and CR&R. Director Eckles inquired about other proposed changes to the existing agreement. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD Oc oBER 13, 2022 Management Analyst I, Nabila Guzman, stated that there are no additional changes besides those included in the staff report. Ms. Barreda noted that the term of the agreement has been changed from automatic renewal to mutual agreement by both parties. Discussion followed regarding the current and proposed terms of the agreement. Director Eckles inquired about Consumer Price Index (CPI) rates. Ms. Barreda stated that the proposed agreement requests annual rather than biannual CPI increases due to pass -through costs. Mr. Carroll confirmed that the Board can approve or reject CPI rate increases. Director Eckles inquired about the rate for liquidated damages. Ms. Barreda stated that the rate is based on two missed trash collections per one thousand customers served. She noted that the fee is per pickup over 88 missed collections. Mr. Carroll stated that the inclusion of liquidated damages is another benefit of amending CR&R's agreement. Discussion followed regarding solid waste rates. Vice President Scheafer inquired about the process for replacing carts. Mr. Carroll stated that, according to the new agreement, replacement carts will be delivered within seven days of the request. Vice President Scheafer commended the District and CR&Ws process for negotiating a 5% cost -of -living adjustment (COLA). President Ooten discussed replacement carts and the roll out of the three - cart system. He recommended utilizing District resources for storing and COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD OCTOBER 13, 2022 delivering additional trash carts. He discussed the District and CR&R's previous negotiations. He stated that most pensions are limited to a 3% COLA and suggested that a 5% COLA for CR&R is too high. He expressed support for reviewing CPI requests on an annual basis. He inquired about the flat rate fees. Mr. Carroll reviewed the District's billing process for solid waste charges and discussed how flat rate fees are determined. Discussion followed regarding the net -to -hauler rate. Director Eckles inquired about contamination fees. Ms. Barreda stated that Senate Bill (SB) 1383 requires contamination fees to be included in the agreement. She noted that CR&R will be focusing on education and public outreach rather than issuing fines. Director Eckles asked if CR&R or the District will be issuing warnings and fines. Ms. Barreda stated that CR&R is responsible for contamination warnings and fines. Mr. Carroll stated that the District will receive 80% of the revenue generated from contamination fees. He added that, if a customer receives three fines within a 12-month period, then the District will impose administrative fines. Director Eckles expressed hesitation for adding contamination fees into the proposed agreement. Mr. Carroll stated that the agreement can be amended to reflect fine amounts. He added that SB 1383 enforcement does not go into effect until 2024. He noted that the state will be reviewing the agreement to ensure that enforcement measures have been included. Discussion followed regarding the timeline for enforcement requirements. Mr. Carroll clarified that contamination fees will also apply to two -cart systems and must be enforced in 2024. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD OCTOBER 13, 2022 Ms. Barreda confirmed that the District is currently in compliance with SB 1383. She stated that, by 2025, a high -diversion facility is required for a two - cart system to achieve a 75% diversion rate. She noted that there are currently no high -diversion facilities approved by CalRecycle. She discussed CR&R's route review process for contamination. She shared that SB 1383 enforcement measures are not required to go into effect until 2024, but some organizations have already begun the process of issuing contamination warnings and fines. Secretary Schafer asked if the enforcement plan has been shared with the City of Costa Mesa. Mr. Carroll confirmed that the District has shared its SB 1383 plan with the City. District Counsel, Alan Burns, asked if the agreement will be amended twice to reflect the annual CPI increases. He inquired about future Proposition 218 hearings. Mr. Carroll stated that the District's budget may need to be adjusted to implement the three -cart system in 2025. Discussion followed regarding Proposition 218 hearings. President Ooten suggested discussing this item again before December. Mr. Carroll stated that this item will be discussed several more times before the final draft is presented to the Board. There was no further discussion. Action, Receive and File: 4. Receive and File Quarterly Legislative Report — Quarter 4 Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. Mr. Carroll noted that staff is available to answer questions related to the COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD OCTOBER 13, 2022 report. Vice President Scheafer inquired about the WIPPES Act. Management Analyst II, Gina Terraneo, stated that the WIPPES Act is related to flushable wipes. There was no further discussion, and the report was received. Action, Receive and File: 5. Inspecting District Assets Using Drone Technology Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. Mr. Carroll presented report details. He introduced drone technology and shared video footage of a drone inspection. He noted that the equipment is not waterproof. He recommended renting drone technology services and to consider using it for confined space entries. Discussion followed regarding rental costs. Director Eckles asked how many drones would be utilized. Mr. Carroll stated that one drone can be utilized to inspect about 10 lift stations. He added that the District is only considering renting the drone technology once a year to satisfy its needs. President Ooten discussed the labor costs associated with confined space entries. Mr. Carroll stated that confined space entries require three staff members. President Ooten discussed water issues affecting the Elden Pump Station. There was no further discussion, and the report was received. Action, Receive and File: 6. Receive and File Report on Eco Expo Update Recommendation: That the Board of Directors receive and file this report. COSTA MESA SANITARY DISTRICT PAGE 9 Mmuns OF THE BOARD OF DIRECTORS STUDY SESSION HELD OCTOBER 13, 2022 President Ooten introduced the item. Ms. Middenway thanked her department for organizing the Eco Expo event. She provided report details and shared highlights from the event. She noted that the City of Costa Mesa and CR&R were present to address trash services for multi -family and single-family properties. She shared that 130 people were in attendance. Secretary Schafer and Director Eckles thanked District staff for this event. There was no further discussion, and the report was received. D. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments President Ooten suggested reviewing the requirements for confined space entries to determine if safety rails are necessary. Vice President Scheafer commented on the Eco Expo event and suggested providing it at local schools. President Ooten recommended combining the Eco Expo event with future town hall meetings. The Board expressed support for providing an Eco Expo event at Costa Mesa high schools. There were no additional comments. Procedural: 2. Adjournment President Ooten adjourned the meeting at 9:16 A.M. 1 ne chafer Bob Ooten Secretary President