Loading...
Minutes - Board - 2022-10-24COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING OCTOBER 24, 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 Staffpresent Scott Carroll (General Manager), Gina Terraneo (Management Analyst II), Kaitiin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Mark Esquer (District Engineer), Marc Davis (District Treasurer), Alan Burns (District Counsel), Angela Colunga (Administrative Assistant I) Others present Judith Gielow, Citizens Advisory Committee Mike Carey, CR&R Environmental Services Julie Barreda, CR&R Environmental Services Sabrina Marquez, CR&R Environmental Services 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. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 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.) Management Analyst II, Gina Terraneo, 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. None. Procedural: 6. Ceremonial Matters and Presentations. None. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ooten opened public comments. Hearing none at this time, he closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 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 September 13, 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 September 26, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve the preparation of a warrant to CR Transfer in the amount of $198,493.83 for September 2022 recycling and disposal services in the October 2022 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $198,493.83 for September 2022 recycling and disposal services to be ratified in the October 2022 warrant register. 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 September 2022 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Adopt Warrant Resolution No. CMSD 2023-04 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2023-04 approving District warrants for the month of September in the amount of $697,510.05. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 Action (Consent): 8. Accept the occupancy count as presented as 23,091 and direct staff to prepare a warrant to CR&R Environmental Services for $246,004.59 for September 2022 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,091 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for September 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $246,004.59 to be ratified in the October 2022 warrant list. Action (Consent): 9. Receive and File the September 2022 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the September 2022 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File September 2022 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 12. Considering Appropriating $42,500 from Capital Asset Replacement Fund to Replace Unit 1009 Recommendation: That the Board of Directors approve appropriating $42,500 from the Fixed Asset Replacement Fund to Replace Unit 1009. 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 None at this time. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 E. GENERAL MANAGER REPORTS Action, Receive and File: 1. Receive and File 2022 Annual Performance Measurement Report - 3rd Quarter, Calendar Year Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. There was no discussion, and the report was received. Action, Receive and File: 2. Receive and File 2020-25 Strategic Plan Progress Report - FY 2022-23 First Quarter Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. There was no discussion, and the report was received. Action: 3. First Review of Draft Agreement with CR&R Incorporated Recommendation: That the Board of Directors provide feedback to staff. President Ooten introduced the item. Mr. Carroll provided report details. He stated that the draft agreement will be reviewed by District Counsel, Alan Burns. He added that District staff plans on presenting the final draft agreement at the December Board meeting. Secretary Schafer inquired about District banners on CR&R trash trucks. Mr. Carroll stated that the truck banners are included in the original agreement with CR&R. Secretary Schafer asked CR&R to ensure that the trash cart lids will be closed after being serviced. Mr. Carroll stated that he will discuss that issue with CR&R. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 Director Perry inquired about RFID (radio -frequency identification) codes on the trash carts. Mr. Carroll stated that RFID codes will only be added to the new recycling carts. He noted that it would be too labor intensive to add RFID codes to the old trash carts. Director Eckles clarified which items were included in CR&R's original agreement. He inquired about trash cart sizes and colors. Mr. Carroll stated that current trash service includes up to two Mixed Waste Carts (gray/black) and two Organics Recycling Carts (green). He added that the standard cart size for each type is 65-gallons. He shared that during the transition to a three -cart system, CR&R would remove one of the Mixed Waste Carts and replace it with a 95-gallon recycling cart (blue). He noted that 95-gallon Mixed Waste and Organic Recycling Carts are available upon request. Director Eckles inquired about CR&R performance reviews and cost -of - living adjustments (COLA). Mr. Carroll stated that CR&R requested that the District's 2021 benchmarks not be included in their performance review. He added that the District's annual performance review can be used to approve or deny CR&R's Consumer Price Index (CPI) rate increase requests. Director Eckles thanked CR&R and the District for adding the Shredding and Compost Event to the proposed agreement. He discussed the timeline and suggested removing contamination fines from the agreement. Discussion followed regarding Senate Bill (SB) 1383 enforcement measures and fines. Director Eckles asked if the District is required to include fine amounts in the agreement. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 President Ooten suggested drafting a separate policy regarding contamination fines. Mr. Burns stated that he will review the agreement to determine if specific fine amounts should be included. Director Eckles asked if there will be additional negotiated bullet points added to the agreement. Mr. Carroll stated that there may be additional amendments that will be presented in a strikethrough version of the proposed agreement. Director Eckles inquired about the timeline for adoption. Mr. Carroll stated that the District's goal is to have the amended agreement in effect by January 2023. Director Eckles inquired about additional discussion points. Mr. Carroll stated that District staff needs to further discuss liquidated damages with CR&R. Director Perry asked when customers' trash carts will be exchanged. Mr. Carroll stated that, according to the proposed schedule, carts will be exchanged in the summer and fall of 2024. Discussion followed regarding public outreach and education for the three - cart system. Director Perry inquired about the cost for additional carts. Mr. Carroll stated that an additional cart will cost about $8-9 per month. He stated that customers will be billed on a quarterly basis by CR&R, and that the District will receive 80% of those revenues. Vice President Scheafer inquired about trash cart serial numbers. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 Mr. Carroll confirmed that only the recycling (blue) carts will have an identifiable serial number. He stated that CR&R is currently auditing customers' carts. Vice President Scheafer asked about including a sticker on the carts directing customers to break down their cardboard boxes. Management Analyst I, Nabila Guzman, stated that the stickers are included in the draft agreement. President Ooten asked how CR&R's flat monthly fee for all services is calculated. He shared that he has noticed an increase in drought -tolerant landscapes. Mr. Carroll stated that the Board will be discussing that amendment at the November Study Session. Director Eckles inquired about CPI requests and rate increases. Mr. Carroll stated that the District can implement a two-year rate increase to reduce the frequency of Proposition 218 hearings. Director Eckles asked if the Board can amend rate schedules. Mr. Carroll confirmed that rate schedules can be amended by the Board. He added that a Proposition 218 hearing is required for all rate increases. Vice President Scheafer asked about the date of the December Board meeting. Mr. Carroll stated that the meeting is scheduled for December 19, 2022. He discussed service delays in the neighborhoods near Back Bay High School, specifically on Monaco Terrace and Lucent Lane. CR&R representative, Mike Carey, stated that CR&R has been receiving continuous calls from a customer on Lucent Lane regarding missed COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 collections and trash truck spills. He shared that CR&R is currently investigating this case. He noted that he does not have an answer for the missed collections occurring on Monaco Terrace. Director Eckles stated that there are three homes near Back Bay High School that have repeatedly complained about missed collections. Mr. Carey shared that CR&R has a new route manager for that area. He added that, historically, CR&R experienced service issues in that area due to residential construction. Director Eckles requested for CR&R to prioritize this issue. CR&R representative, Julie Barreda, shared that, due to performance issues, the driver assigned to that area has been replaced. President Ooten discussed trash service for a multifamily property on Mace Avenue. He noted that the property receives dumpster service from Waste Management and organics recycling service by CR&R. There was no further discussion. Action: 4. Approve Purchase Order to Acquire One New Vactor 2112i Combination Sewer Cleaning Unit Recommendation: That the Board of Directors direct the General Manager to sign a purchase order to acquire one new vactor 2112i combination sewer cleaning unit. President Ooten introduced the item. Mr. Carroll provide report details. He shared that Haaker Equipment Company has agreed to sell a new vactor 2112i combination sewer cleaning unit to the District. He noted that this new unit will be utilized by the District's third Wastewater cleaning crew. Director Eckles asked if the District has been leasing this vehicle. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 Mr. Carroll clarified that the vehicle is a brand-new unit that Haaker Equipment Company has offered to sell. Motion: To direct the General Manager to sign a purchase order to acquire one new vactor 2112i combination sewer cleaning unit. Motion by Art Perry, 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. 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 this report. President Ooten introduced the report. District Engineer, Mark Esquer, provided a brief update on completed Capital Improvement Projects. (CIPs). He discussed the Elden Forcemain Redundancy project. There was no further discussion, and the report was received. Action: 2. Project 328 Ductile Iron Pipe Rehabilitation Phase II: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, and Exonerate Faithful Performance Bond Recommendation: That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. President Ooten introduced the item. Mr. Esquer provided report details. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 Motion: To approve the following actions for Project 328 Ductile Iron Pipe Rehabilitation Phase II, Project 328 Ductile Iron Pipe Rehabilitation Phase III, and Project 335 Sewer Siphon Rehabilitation Phase I: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Motion by Art Perry, second by Arlene Schafer Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Vice President Scheafer discussed a customer's collection system and cast- iron piping. Discussion followed regarding California Plumbing Code and pipe materials. There was no further discussion. Action: 3. Project 328 Ductile Iron Pipe Rehabilitation Phase III: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, and Exonerate Faithful Performance Bond Recommendation: That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Item was approved under F2. There was no discussion. Action: 4. Project No. 335 Sewer Siphon Rehabilitation Phase I — Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, and Exonerate Faithful Performance Bond Recommendation: That the Board of Directors: COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Item was approved under F2. There was no discussion. G. TREASURER'S REPORTS Action: 1. Approve the Investment Report for the Month of September 2022 Recommendation: That the Board of Directors approve the Investment Report for the month of September 2022. President Ooten introduced the item. District Treasurer, Marc Davis, presented a quarterly review of the District's investment portfolio. He discussed interest rates and inflation and provided an update on the California Cooperative Liquid Assets Securities System (CLASS). Director Perry asked when the District will begin investing in CLASS. Mr. Davis stated that the District will consider investing in it after the first annual charge is received in late November 2022. Vice President Scheafer inquired about CLASS's liquidation feature. Mr. Davis stated that if the District contacts them by 10:00 a.m., then they will receive the funds that same day. Motion: To approve the Investment Report for the month of September 2022. Motion by Mike Scheafer, second by Arlene Schafer Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 Secretary Schafer shared that the California Special Districts Association (CSDA) is highly satisfied with California CLASS. There was no further discussion. H. ATTORNEY'S REPORTS Action: 1. Consider Adopting Resolution No. 2022-973 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2022-973 authorizing remote meetings. President Ooten introduced the item. Mr. Burns provided brief update regarding Assembly Bill (AB) 361. He stated that, because Governor Newsom is expected to lift the COVID-19 state of emergency in February 2023, the District will no longer be able to provide teleconferenced meetings under AB 361. He noted that partial remote meetings will be allowed under AB 2449 for two years. He stated that AB 2449 contains more limited exceptions for teleconferencing. Motion: To adopt Resolution No. 2022-973 authorizing remote meetings. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Director Perry inquired about AB 2449. Mr. Burns stated that it will take effect on March 1, 2023. He confirmed that three Board members must be physically present for each meeting. He added that remote Board members must have a specified reason for not being physically present at the meeting. He discussed Brown Act provisions regarding social media usage by elected officials. He noted that the majority of the legislative body is not allowed to discuss matters within the subject matter of their jurisdiction on internet-based social media accounts. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 Director Eckles inquired about engaging (commenting, liking, disliking, etc.) with social media posts published by other Board members. Mr. Burns confirmed that Board members are not allowed to engage with each other's posts but are allowed to view them. He provided an update regarding the California Levine Act and Senate Bill (SB) 1100. In relation to SB 1100, Vice President Scheafer asked if the District anticipates having security present at Board meetings. Mr. Carroll stated that the District would call a recess until the person disrupting the meeting leaves. Mr. Burns reviewed the requirements for meeting disruptions. 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 he attended the OCSD Board meeting for this month. He stated that OCSD recently hosted their Wastewater 101 - Citizens Academy. Mr. Carroll shared that the District's Young Southeastern Asian Leaders Initiative (YSEALI) fellows attended the academy. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 President Ooten continued his briefing on OCSD's Board meeting, which included discussion about pump stations and electricity. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry stated that SARFPA meets next month and asked President Ooten to attend the meeting on his behalf. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) No report. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer stated that she has been attending CSDA meetings via Zoom. She shared that CSDA's new president is Elaine Magner. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer stated that SDRMA's November board meeting is next week. 6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Perry shared that he submitted a written report of the other meetings he attended this month. There was no discussion. i. OLD BUSINESS Secretary Schafer commented that the November Study Session is on Election Day. K. NEW BUSINESS COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 24, 2022 None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Eckles requested a summary from Mr. Burns regarding CR&R's draft agreement. He welcomed back Secretary Schafer and wished everyone a happy Halloween. 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, November 28, 2022. President Ooten adjourned the meeting at 5:28 p.m. J'J �� Arlene Schafer Bob Ooten Secretary President