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Minutes - Board - 2023-03-27COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MARCH 27, 2023 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), Mark Esquer (District Engineer), Alan Burns (District Counsel) Others present Cindy Brenneman, Citizens Advisory Committee Member Sue Lester, District resident Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Scheafer President Scheafer called the meeting to order at 4:30 P.M. Procedural: 2. Pledge of Allegiance - President Scheafer President Scheafer led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Schafer COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Vice President Schafer 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 bylaw.) District Clerk & Public Information Officer, Noelani Middenway, conducted roll call and noted that President Scheafer, Vice President Schafer, Secretary Perry, Vice Secretary Ooten, 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. None. Procedural: 6. Ceremonial Matters and Presentations. None. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Scheafer opened public comments. District resident, Sue Lester, commented on term limits for Board Directors and Citizen Advisory Committee (CAC) Members. 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 February 14, 2023 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 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 February 27, 2023 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2023-09 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2023-09 approving District warrants for the month of February in the amount of $680,945.34. 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 the preparation of a warrant to CR Transfer in the amount of $197,290.89 for January 2023 recycling and disposal services in the March 2023 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $197,290.89 for January 2023 recycling and disposal services to be ratified in the March 2023 warrant register. Action (Consent): 7. Approve the Investment Report for the Month of February 2023 Recommendation: That the Board of Directors approve the Investment Report for the month of February 2023. Action (Consent): 8. Accept the occupancy count as presented as 23,092 and direct staff to prepare a warrant to CR&R Environmental Services for $246,015.24 for February 2023 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,092 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2023 collection COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $246,015.24 to be ratified in the March 2023 warrant list. Action (Consent): 9. Approve Payroll Transparency Disclosure for February 2023 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 10. Receive and File February 2023 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 Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS Action: 1. Consider appointing three members to the Citizens Advisory Committee to serve a two-year term ending in March 2025. Recommendation: That the Board of Directors appoint three members to serve a two-year term ending in March 2025, and continue to accept applications for appointment until all remaining vacancies are filled. Ms. Middenway introduced the item and noted that there are five vacancies on the CAC. She shared that the District has received 3 applications for the 2023-2025 term. Director Eckles requested to either move this item after discussing Item E2 or to discuss it at a future meeting. Discussion followed regarding CAC vacancies. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Secretary Perry suggested approving the three applicants and keeping the remaining two vacancies open for applications. Ms. Middenway confirmed that the vacancies will remain open until filled. President Scheafer stated that any changes to Administrative Policy No. 60.00 — Citizens Advisory Committee will not affect the appointment of the three applicants. Motion: To appoint Jeff Arbour, Cindy Brenneman, and Francesca Normington to the Citizens Advisory Committee to serve a two-year term ending in March 2025. 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 No: None There was no further discussion. Action: 2. Consider Amending Administrative Policy No. 60.00 — Citizens Advisory Committee. Recommendation: That the Board of Directors consider approving proposed amendment to Administrative Policy No. 60.00 pertaining to the Citizens Advisory Committee. General Manager, Scott Carroll, presented report details. He stated that the proposed amendment removes term limits and allows CAC members to serve at the pleasure of the Board. Discussion followed regarding the current CAC term limits and the removal process of absentee or unruly CAC members. Mr. Carroll stated that the current CAC members have requested these policy changes. He added that there are members who are interested in continuing their service if the term limits are removed. President Scheafer expressed concern about the lack of attendance of CAC Members at Board meetings. He requested to review CAC attendance records and to discuss this item at a future meeting. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Ms. Lester commented that she has been termed out from serving on the CAC. She added that, if there were no term limits, then she would have reapplied. She shared that she also serves on the District's Solid Waste Ad Hoc Committee and Policy Review Ad Hoc Committee. She noted that CAC terms are approved by the Board. She stated that it is difficult to secure volunteers for community organizations and recommended that the Board remove the term limits for the CAC. She provided details regarding her experience as a CAC member. She shared her proposed verbiage for amending Administrative Policy No. 60.00. President Scheafer asked if the District can extend Ms. Lester's appointment until the Board has finalized Administrative Policy No. 60.00. Mr. Carroll confirmed that her term can be extended. District Counsel, Alan Burns, stated that CAC members are subject to the Board's appointment or dismissal. Discussion followed regarding extending Ms. Lester's term. Motion: To table the consideration of the proposed amendment to Administrative Policy No. 60.00, and while vacancies remain on the Citizens Advisory Committee (CAC), to allow termed out CAC Members to continue serving on the CAC until the Board makes a determination about the proposed amendment to Administrative Policy No. 60.00. Motion by Brett Eckles, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None CAC Member, Cindy Brenneman, commented that this item should be discussed during the Policy Review Ad Hoc Committee meeting that is scheduled for tomorrow. She stated that she supports the removal of CAC term limits. President Scheafer requested to also discuss appointing a Board member to serve as a liaison with the CAC. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Director Eckles suggested that the Board submit their feedback on the policy prior to issuing a final decision. There was no further discussion. Action: 3. Consider Adopting Resolution No. 2023-981 Opposing Initiative 1935 Further Limiting State and Local Governments' Ability to Raise Revenues Recommendation: That the Board of Directors adopt Resolution No. 2023-981 opposing Initiative 1935 furthering limiting state and local governments' ability to raise revenues. Mr. Carroll presented report details. Motion: To adopt Resolution No. 2023-981 opposing Initiative 1935 further limiting state and local governments' ability to raise revenues. Motion by Art Perry, second by Arlene Schafer. Motion was suspended for Board discussion. Director Eckles asked if there are any other local agencies that also oppose this initiative. Mr. Carroll stated that he is unaware of any other local agencies opposing, but he can do more research. Discussion followed regarding how this initiative applies to special districts. Mr. Burns provided more details regarding Initiative 1935 and how it would apply to the District. He discussed how the law's ambiguous language could result in increased liability and litigation for the District. Director Eckles recommended including the bill language and supporting and opposing arguments to the staff report. Substitute Motion: To table the consideration to adopt Resolution No. 2023- 981 opposing Initiative 1935 to the April Study Session or Board Meeting. Motion by Brett Eckles, second by Bob Ooten. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Final Resolution: Motion Fails 2-3 Aye: Bob Ooten, Brett Eckles No: Arlene Schafer, Art Perry, Mike Scheafer Original Motion: To adopt Resolution No. 2023-981 opposing Initiative 1935 further limiting state and local governments' ability to raise revenues. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: Brett Eckles There was no further discussion. Action: 4. Consider Approving Letter of Support for Assembly Bill 1594 (E. Garcia) Medium and Heavy Duty Zero Emission Vehicles: Public Agency Utilities Recommendation: That the Board of Directors approve the attached Letter of Support for AB 1594. Mr. Carroll provided report details. Vice President Schafer suggested tabling this item since the California Special Districts Association (CSDA) has yet to issue their decision. Motion: To approve the attached Letter of Support for AB 1594. Motion by Art Perry, second by Mike Scheafer. Motion was suspended for discussion and subsequently failed. President Scheafer recommended including the support and opposition arguments for this bill in the staff report. Substitute Motion: To continue watching AB 1594 and do not approve the proposed Letter of Support. Motion by Arlene Schafer, second by Brett Eckles. Final Resolution: Motion Carries 3-2 Aye: Arlene Schafer, Bob Ooten, Brett Eckles No: Art Perry, Mike Scheafer COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 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 Engineer's Report. District Engineer, Mark Esquer, presented report details. He discussed the recent rainfall events and inflow and infiltration (I/I). Discussion followed regarding raising manholes on Wilson Street due to the City of Costa Mesa's resurfacing project. There was no further discussion, and the report was received. Action: 2. Approve Project No. 341 Elden Force Main Redundancy Design Contract Recommendation: That the Board of Directors approve the following: 1. Awarding a contract to Kleinfelder, Inc., and approving a 10% contingency, for a total amount of $753,000. 2. Option A) Staff is proposing the Board of Directors consider approving the transfer of $622,300 from the Asset Management Fund, into the Wastewater fund and appropriate $622,300 to CIP #341, Elden Force Main Redundancy. The Board has approved a minimum level of Reserves in the Asset Management Fund of $5 million. The Asset Management Fund currently has a balance of $5,012,400. If the Board approves this transfer the Asset Management Fund Reserve will fall below $5 million. Staff will replenish the reserve during the Fiscal Years 2023-24 and 2024-25 budget process. 3. Option B) Staff will request the Board of Directors to appropriate funds during the Fiscal Years 2023-24 and 2024-25 budget process, $480,000 in Fiscal Year 2023-24 and $142,300 in Fiscal Year 2024-25, total of $622,300. Based on project design outlay, the phased/proposed budget approach provides adequate funding during the project design. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Mr. Esquer presented report details. He discussed the funding options available for the project. He provided an overview of the project's scope and the request for proposals (RFP) process. He discussed Kleinfelder, Inc: s project proposal. He reviewed the project's authorized budget amounts and presented two budget alternatives for additional funding. Discussion followed regarding the project's budget and the District's Operating Reserves policy. Director Eckles asked if the project was advertised as a time and material (T & M) contract. Mr. Esquer confirmed that the project was listed as a T & M contract not to exceed a certain amount. Discussion followed regarding the project's condition assessment and design costs. Vice Secretary Ooten provided clarification regarding the District's asset management fund and operating reserves. Motion: To approve the following: 1. Awarding a contract to Meinfelder, Inc., and approving a 10% contingency, for a total amount of $753,000. 2. Approve the transfer of $622,300 from the Asset Management Fund, into the Wastewater fund and appropriate $622,300 to CIP $# 341, Elden Force Main Redundancy. The Board has approved a minimum level of Reserves in the Asset Management Fund of $5 million. The Asset Management Fund currently has a balance of $S,012,400. If the Board approves this transfer the Asset Management Fund Reserve will fall below $5 million. Staff will replenish the reserve during the FYs 2023-24 and 2024-25 budget process. Motion by Mike Scheafer, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 There was no further discussion. G. TREASURER'S REPORTS None at this time. H. ATTORNEY'S REPORTS Action: 1. Consider Adopting an Ordinance No. 2023-136 — Amending the Operations Code Regarding Disruptive Speakers Recommendation: That the Board of Directors adopt Ordinance No. 2023-136 Amending the Operations Code Regarding Disruptive Speakers District Counsel, Alan Burns, stated that Senate Bill 1100 has been added to the District's Operations Code. He provided details regarding the removal of disruptive speakers from public meetings. Motion: To adopt Ordinance No. 2023-136 Amending the Operations Code Regarding Disruptive Speakers. 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 No: None There was no further discussion. Presentation: 2. Receive an Oral Report Regarding General Manager, Scott Carroll's, Employee Agreement Recommendation: That the Board of Directors receive and file the report. Mr. Burns noted that an oral report is required prior to increasing an executive's compensation. He stated that the First Amendment to the General Manager's Employee Agreement increases Mr. Carroll's salary by 6%, bringing his total salary to $220,461. There was no further discussion, and the report was received. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Action: 3. Consider Approving General Manager, Scott Carroll's, Employee Agreement Including a 6% Merit Increase after receiving his performance evaluation Recommendation: That the Board of Directors consider approving General Manager, Scott Carroll's, First Amendment to the Restated Employee Agreement including a 6% merit increase after receiving his performance evaluation. Motion: To approve General Manager, Scott Carroll's First Amendment to the Restated Employee Agreement including a 6% merit increase after receiving his performance evaluation. Motion by Brett Eckles, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None 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) Vice Secretary Ooten shared OCSD updates regarding capacity fees, odor control chemicals, and member agencies' flow rates. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry discussed ongoing SARFPA projects. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 Vice President Schafer stated that ISDOC's quarterly meeting takes place this Thursday. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared that CSDA will being hosting a national meeting and has a new representative in Washington, D.C. She stated that the deadline for CSDA award nominations is May 1, 2023. S. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer stated that SDRMA's Safety/Claims Education Day and Board meeting occurred last week. He noted that he was not able to attend either event. He shared that SDRMA has a new Chief Executive Officer. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Schafer and Secretary Perry shared that they attended a Water Advisory Committee of Orange County (WACO) meeting. There was no further discussion. 1. 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 to discuss term limits at an upcoming Study Session. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 27, 2023 President Scheafer suggested creating an ad hoc committee to discuss term limits. Mr. Carroll stated that he will add this item to the April Study Session. Vice Secretary Ooten stated that previous discussions regarding term limits should be shared with the proposed ad hoc committee. 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, April 24, 2023. President Scheafer adjourned the meeting at 6:43 p.m. Art Perry Secretary 46J=- Mike Scheafe J President