Loading...
Minutes - Board - 2022-12-19COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING DECEMBER 19, 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), Gina Terraneo (Management Analyst II), Kaitlin Tran (Finance Manager), Mark Esquer (District Engineer), Marc Davis (District Treasurer), Alan Burns (District Counsel) Others present Judith Gielow, Citizens Advisory Committee Paul Kaymark, Nigro & Nigro PC Sabrina Marquez, CR&R Environmental Services Meeting called to order at 4:31 P.M. A. OPENING ITEMS Procedural: 1. Call to Order — President Ooten President Ooten called the meeting to order at 4:31 P.M. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 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.) District Clerk & 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. 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 DECEMBER 19, 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 November 8, 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 November 28, 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 $201,656.02 for November 2022 recycling and disposal services in the December 2022 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $201,656.02 for November 2022 recycling and disposal services to be ratified in the December 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. 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 November 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 November 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 December 2022 warrant list. Action (Consent): 7. Receive and File the November 2022 Organics Tonnage Report COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Recommendation: That the Board of Directors receive and file this report. Action (Consent): 8. Receive and File the November 2022 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 9. Receive and File November 2022 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Approve Payroll Transparency Disclosure for November 2022 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 11. Adopt Warrant Resolution No. CMSD 2023-06 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2023-06 approving District warrants for the month of November in the amount of $1,141,562.02. Action (Consent): 12. Approve the Investment Report for the Month of November 2022 Recommendation: That the Board of Directors approve the Investment Report for the Month of November 2022. 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. E. GENERAL MANAGER REPORTS COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Action: 1. Board of Directors Nominations and Appointments of Officers Recommendation: That the Board of Directors considers appointing new officers of the Board, as well as appointing Board members to represent the District on local, regional, and statewide committees and organizations. Ms. Middenway introduced the item. She stated that the Board will be nominating a new Board President, Vice President, Secretary and Vice Secretary. She added that the Board will also be nominating one director to the Orange County Sanitation District (OCSD) Board of Directors and one director to the Santa Ana River Flood Protection Agency (SARFPA) Board of Directors. Vice President Scheafer inquired about the Vice Secretary position. Ms. Middenway stated that the Vice Secretary position has been added to the Board. She shared that this position will be able to sign District documents on behalf of the Board President and Secretary if they are both absent. Motion: To nominate Mike Scheafer as Board President. 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 Motion: To nominate Arlene Schafer as Board Vice President. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Motion: To nominate Arthur Perry as Board Secretary. 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 Motion: To nominate Robert Ooten as Board Vice Secretary. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Motion: To nominate Robert Ooten as Orange County Sanitation District (OCSD) Board member. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Motion: To nominate Arthur Perry as alternate Orange County Sanitation District (OCSD) Board member. 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 Motion: To nominate Robert Ooten as Santa Ana River Flood Protection Agency (SARFPA) Board member. Motion by Arlene Schafer. Vice Secretary Ooten declined the nomination since he accepted the nomination as OCSD Board member. Motion failed to receive a second. Substitute Motion: To nominate Arthur Perry as Santa Ana River Flood Protection Agency (SARFPA) Board member. Motion by Mike Scheafer, second by Arlene Schafer. Secretary Perry commented that SARFPA will be ending in 2 years. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Motion: To nominate Robert Ooten as alternate Santa Ana River Flood Protection Agency (SARFPA) Board member. 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 COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Discussion followed regarding which Director presides over the remainder of the meeting. President Scheafer thanked Vice Secretary Ooten for his leadership over the last two years. Vice Secretary Ooten thanked President Scheafer for the recognition and expressed gratitude for being reelected to the Board. There was no further discussion. Action, Receive and File: 2. Receive and File the Annual Comprehensive Financial Report (ACFR), and the Auditors' Required Communication for the year ended June 30, 2022. Recommendation: That the Board of Directors receive and file: 1. The Annual Comprehensive Financial Report of the Year Ended June 30, 2022, 2. The Auditors' Required Communication for the Year Ended June 30, 2022. Finance Manager, Kaitlin Tran, introduced the Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2021-22. She stated that the District's financial auditor, Nigro & Nigro PC, issued an unmodified (clean) opinion for the Fiscal Year 2021-22. She presented financial highlights of the ACFR. She introduced Paul Kaymark of Nigro & Nigro PC. Mr. Kaymark presented Nigro & Nigro PC's opinion letter. He noted that they condensed the financial statements and presented them on a comparative basis. He discussed operating revenues and expenses, non -operating revenues, cash flows, current assets and liabilities, and net position. Secretary Perry inquired about the District's total unfunded pension liabilities. Mr. Kaymark stated that the District's unfunded obligations are currently in an asset position for post -employment benefits and pension assets. He noted that the California Public Employees' Retirement System's (CalPERS) audit will not be available until February 2023. He expressed recognition for the District's current financial status. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Vice President Schafer congratulated the District for being fiscally conservative with their expenditures. Mr. Kaymark stated that the District's audit report is one of the best that he has presented this year. President Scheafer expressed appreciation to the Finance Department and General Manager for their hard work. There was no further discussion, and the report was received. Action: 3. Consider Approving the 2023 Meeting and Office Closure Calendar Recommendation: That the Board of Directors approve the Costa Mesa Sanitary District 2023 Meeting and Office Closure Calendar as presented. Secretary Perry asked if there are any special changes to the 2023 Meeting and Office Closure Calendar. Ms. Middenway noted that the August Board meeting has been moved to the third Monday of August due to the California Special Districts Association (CSDA) annual conference, and that the December Board meeting has been moved to the third Monday of December due to the Christmas holiday. Motion: To approve the Costa Mesa Sanitary District 2023 Meeting and Office Closure 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. Action: 4. Consider Adopting Ordinance No. 135 — Amending the Operations Code Pertaining to Term Limitation for Trash and Recycling Contracts Recommendation: That the Board of Directors adopt Ordinance No. 135. General Manager, Scott Carroll, introduced the item. He stated that Ordinance No. 135 will amend the term limitation for trash and recycling contracts, which is necessary to approve CR&R's new agreement amendment. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Director Eckles asked how the current Operations Code affected CR&R's 2018 agreement. Mr. Carroll stated that the Operations Code should have been amended in 2018 to allow trash and recycling contracts to extend beyond 10 years. District Counsel, Alan Burns, stated that trash and recycling contracts will include a severability clause. President Scheafer asked if Ordinance No. 135 must be approved prior to proceeding with CR&R's agreement amendment. Mr. Carroll confirmed that Ordinance No. 135 is required to approve the new contract amendment. Director Eckles asked if CR&R's current contract is in violation of the District's Operation Code. Mr. Burns stated that CR&R's contract is valid since it was approved in 2018 for 10 years. He noted that if Ordinance No. 135 is not approved, CR&R's contract would violate the Operations Code if it extended beyond 2028. Motion: To adopt Ordinance No. 135. Motion by Mike Scheafer, second by Bob Ooten. 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 and Capital Improvement Status Report Recommendation: That the Board of Directors receive and file the District Engineer's Report and Capital Improvement Status. District Engineer, Mark Esquer, presented the report. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 There was no further discussion, and the report was received. Action: 2. Approve a Contract to Insituform Technologies, LLC. in the Amount of $196,762.00, and Approving a 10% Contingency in the Amount of $19,676. Recommendation: That the Board of Directors: 1. Award a contract to the lowest responsive and responsible bidder, Insituform Technologies, LLC. in the amount of $196,762; and 2. Approve a 10% contingency in the amount of $19,676. Mr. Esquer introduced the item and shared District staffs recommendation. He discussed the proposed work. President Scheafer asked if Insituform Technologies, LLC was the only bidder for this work. Mr. Esquer stated that other contractors found the District's bidding period too short and the project to be too small compared to their other work. He shared that he has considered consolidating projects next year to acquire more bids. Discussion followed regarding Insituform Technologies, LLC. Motion: To: 1. Award a contract to the lowest responsive and responsible bidder, Insituform Technologies, LLC. in the amount of $196,762; and 2. Approve a 10% contingency in the amount of $19,676. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Secretary Perry asked when the project will begin. Mr. Esquer stated that the notice to proceed will be issued in the first week of January 2023 and that the project will begin in early February 2023. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Action: 3. Approve a Sole -Source Contract to West Coast Safety for the Purchase of Emergency Lay -flat Hose and Fittings Recommendation: That the Board of Directors approve sole -source contract to West Safety Supply Inc., for the purchase of three (3) 12-inch, emergency hose reel system(s), in the amount not -to -exceed $700,000, including freight/delivery and taxes. Mr. Esquer presented report details and District staff s recommendation. He shared that West Coast Safety is the only provider of this product in California. He noted that the manufacturer is in Orange, California. He stated that the District will be buying about 8,000 feet of lay -flat hose at a price not to exceed $700,000. He shared that he bought a similar product while working for the Orange County Sanitation District (OCSD) from West Coast Safety. He added that the manufacturer anticipates raising their prices by 15% in January 2023, which could result in an $80,000 cost increase for this product. Director Eckles inquired about the number of suppliers of lay -flat hose. Mr. Esquer stated that there appears to be one supplier on the West Coast and one supplier on the East Coast. He noted that, due to delivery costs, the East Coast supplier's bid would not be competitive compared to the West Coast supplier. Discussion followed regarding freight estimates. Director Eckles asked if he has contacted the East Coast supplier to inquire if they are interested in submitting a bid. Mr. Esquer stated that he has not contacted them. Director Eckles stated that he would have preferred if both suppliers were asked to submit a bid for this item. Motion: To approve a sole -source contract to West Safety Supply Inc., for the purchase of three (3) 12-inch emergency hose reel systems in the amount not -to -exceed $700,000, including freight/delivery and taxes. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: Brett Eckles Secretary Perry inquired about the delivery of the item. Mr. Esquer stated that it should be delivered by March or April 2023. He added that the project should be completed before the end of Fiscal Year 2022-23. There was no further discussion. Action: 4. Awarding a Contract to the Lowest Responsible Bidder, Sancon Technologies, Inc., in the Amount of $140,176. Recommendation: That the Board of Directors: 1. Award a contract to the lowest responsive and responsible bidder, Sancon Technologies, Inc, in the amount of $140,176 for Rehabilitating Brick Manholes; and 2. Approve an 8% contingency in the amount of $11,214 Mr. Esquer presented report details. He noted that the staff report has been amended to recommend an 8% contingency rather than a 10%. He provided details regarding the bidding process. He reviewed the engineer's estimate. He noted that material costs have increased for this project. President Scheafer asked for clarification of the total project cost. Mr. Esquer amended his recommendation to award the lowest responsive and responsible bidder, Sancon Technologies, Inc., in the amount of $140,176 with an 8% contingency. He noted that his staff report listed incorrect figures. Motion: To: 1. Award a contract to the lowest responsive and responsible bidder, Sancon Technologies, Inc, in the amount of $140,176 for Rehabilitating Brick Manholes; and COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 2. Approve an 8% contingency in the amount of $11,214 (8%) Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. G. TREASURER'S REPORTS None at this time. H. ATTORNEY'S REPORTS Action: 1. Consider Adopting Resolution No. 2022-977 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2022-977 authorizing remote meetings. Mr. Burns introduced the item. Motion: To adopt Resolution No. 2022-977 authorizing remote meetings. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Secretary Perry inquired about remote meetings under the new law taking effect in February 2023. Mr. Burns explained that the new law regarding remote meetings is more restrictive. He stated that Board members will need a specific reason to attend a meeting remotely. Secretary Perry discussed the process for attending meetings remotely due to golf tournaments. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 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) Vice Secretary Ooten provided a brief overview of OCSD's December Board meeting. He shared that OCSD is working on a major research project related to the gases produced by the sludges in the anaerobic digestors. He announced that Rob Thompson has been selected as the new OCSD General Manager. Discussion followed regarding OCSD Board turnover due to the recent election. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry stated that there was no SARFPA meeting this month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer stated that she was not able to attend the ISDOC meeting due to a conflict with a District meeting. President Scheafer shared that he attended the ISDOC meeting. He stated that ISDOC's Board Secretary and Third Vice President positions are currently open. He added that ISDOC's incoming Board President has proposed engaging a transcribing service, which is very expensive and may result in increased member dues. He noted that, traditionally, the Board Secretary's staff person transcribes the meeting minutes. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEM13ER 19, 2022 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared that CSDA has issued new committee positions. She stated that she will be serving on CSDA's Membership, Professional Development, Finance, and Alliance Committees. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer stated that SDRMA is in the process of hiring a consultant to help find a new Chief Executive Officer (CEO). Discussion followed regarding SDRMA operations. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice Secretary Ooten provided a brief overview of a Water Advisory Committee of Orange County (WACO) meeting. He shared that the Engineering Manager of the Metropolitan Water District (MWD) gave a thorough presentation of their facilities and infrastructure. President Scheafer shared that he also attended the WACO meeting. Vice Secretary Ooten shared that the Water Emergency Response Organization of Orange County (WEROC) provided a report on the status of the COVID-19 pandemic and cybersecurity issues. Secretary Perry asked if the District should inform WEROC of the District's lay -flat hose purchase. Mr. Carroll confirmed that he will share that news with WEROC. There was no further discussion. 1.OLD BUSINESS None at this time. COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Vice President Schafer wished everyone a Merry Christmas and Happy New Year. Vice Secretary Ooten expressed recognition for the District Treasurer's investment report and Senate Bill (SB) 1383 analysis. President Scheafer wished everyone happy holidays. He expressed appreciation for being appointed as Board President. He shared that he recently received a postcard from Mesa Water District about two water issues study groups. He asked if the District can look into hosting a similar event for SB 1383. 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, December 19, 2022. COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 19, 2022 President Scheafer adjourned the meeting at 5:38 p.m. A�:t E-Z� - Art Perry M' e Scheafer Secretary iii President