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Minutes - Board - 2024-08-26COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING AUGUST 26, 2024 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 (Senior Management Analyst), Alan Burns (District Counsel), Kaitlin Tran (Finance Manager), Marissa Pereyda (Senior Management Analyst), Mark Esquer (District Engineer), Dyana Bojarski (Administrative Services Manager) Others present Mike Carey, CR&R representative Vicki Osbourne, Municipal Water District of Orange County/Water Emergency Response Organization of Orange County 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. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 Procedural: 3. Invocation - Vice President Schafer 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 by law.) 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. President Scheafer noted that Vice Secretary Ooten is attending the meeting remotely due to medical illness, which is an allowable just cause under the Brown Act. 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 Scheafer opened public comments. Hearing none, he closed public comments. F. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 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 July 16, 2024 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Joint Board of Directors and Citizens Advisory Committee Meeting Minutes of July 22, 2024 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2025-02 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2025-02 approving District warrants for the month of July in the amount of $1,245,645.51. Action (Consent): 5. 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 July 2024 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Approve the Occupancy Count of 23,124 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $266,691.40 in the August 2024 Warrant Register for July 2024 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,124; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $266,691.40 in the August 2024 warrant register for July 2024 solid waste collection services. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 ......._-.._---- Action (Consent): 8. Approve the Preparation of a Warrant to CR Transfer for $238,153.47 in the August 2024 Warrant Register for July 2024 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $238,153.47 in the August 2024 warrant register for July 2024 recycling and disposal services. Action (Consent): 9. Receive and File July 2024 Organics Tonnage Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 10. Receive and File July 2024 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file the report. Action (Consent):11. Receive and File July 2024 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 12. Investment Report for the Month of July 2024 Recommendation: That the Board of Directors approve the Investment Report for the month of July 2024. 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 No: None Abstain: None Not Present: None There was no 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 AUGUST 26, 2024 Action: 1. Consider Approving the Second Amendment to the 2018 Agreement with CR&R Incorporated Recommendation: That the Board of Directors approve the Second Amendment to the 2018 Agreement with CR&R Incorporated. Senior Management Analyst, Marissa Pereyda, provided report details. Director Eckles confirmed the rates included in the second amendment. Motion: To approve the Second Amendment to the 2018 Agreement with CR&R Incorporated. 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 Abstain: None Not Present: None There was no further discussion. Action: 2. Consider Adopting Ordinance No. 139 Pertaining to Out of State Traveling Recommendation: That the Board of Directors adopt Ordinance No. 139 Pertaining to Out of State Traveling. General Manager, Scott Carroll, presented the item. He noted that Ordinance No. 139 requires Board approval for non -budgeted, out-of-state Board travel. District Counsel, Alan Burns, stated that the original purpose of Ordinance No. 139 was to allow the General Manager to approve out-of-state staff travel to Nevada and Arizona. Motion: To adopt Ordinance No. 139 pertaining to out-of-state traveling. 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 No: None COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 Abstain: None Not Present: None There was no further discussion. Action: 3. Multi -jurisdictional Hazard Mitigation Plan (MJHMP) Recommendation: That the Board of Directors direct staff to begin engaging with members of the public about the MJHMP and allow them opportunities to provide feedback about the plan. Mr. Carroll provided an overview of the Multi -jurisdictional Hazard Mitigation Plan (MJHMP). He noted that the Federal Emergency Management Agency (FEMA) will not allocate funds for hazard mitigation to agencies without a hazard mitigation plan. He shared that the District has entered into an agreement with Municipal Water District of Orange County (MWDOC) and Water Emergency Response Organization of Orange County (WEROC) to participate in their MJHMP. He added that the staff report contains a survey link to gather public comments and feedback. He introduced Vicki Osbourne of MWDOC and WEROC. President Scheafer expressed recognition for MWDOC and WEROC. Ms. Osbourne stated that they intend to have their MJHMP completed by March 2025. She shared that their contractor has been successful in gaining approval from FEMA. She noted that the MJHMP will open multiple avenues for potential funding. She discussed the costs associated with developing the MJHMP. She provided details regarding FEMA's public education requirements. Discussion followed regarding public partners involved in the MJHMP and historical funding trends. Ms. Osbourne noted that climate change is also being included in the MJHMP. Director Eckles inquired about the District's previous hazard mitigation efforts. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 Mr. Carroll shared that the District has previously conducted pump station vulnerability assessments and made remediations. He noted that the District has also obtained earthquake insurance for both buildings. Discussion followed regarding FEMA's public outreach requirements. President Scheafer suggested sharing information regarding the MJHMP at the District's Eco Expo event. Motion: To direct staff to begin engaging with members of the public about the MJHMP and allow them opportunities to provide feedback about the plan. Motion by Michael Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Abstain: None Not Present: None There was no further discussion. Action, Receive and File: 4. Receive and File the Preliminary Fourth Quarter Budget Review of Fiscal Year 2023-24 Recommendation: This report serves as a summary of the District's revenues and expenditures through June 30, 2024, with the understanding the fiscal year numbers won't be final until the annual audit is complete later this calendar year. Finance Manager, Kaitlin Tran, presented report details. She shared the projected expenditures and revenue for the solid waste and wastewater funds. President Scheafer inquired about personnel savings in the solid waste fund. Ms. Tran noted the personnel savings in each fund. There was no further discussion, and the report was received. Action: S. Request for Adjustment to the Adopted Budget for Fiscal Year 2024- 2025 COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 Recommendation: That the Board of Directors approves the proposed budget adjustment for Fiscal Year 2024-25 to ensure the continuation of services. Ms. Tran presented report details. She stated that the Board directed staff to provide alternatives to using the general fund for the proposed budget adjustments. She presented the alternative funding methods from the wastewater fund balance, professional services account, pump station maintenance account, and the HQ computer licenses and maintenance account. Discussion followed regarding reductions to the proposed expenditures. Ms. Tran stated that staff worked to reduce overall expenditures and find alternative funding sources. Director Eckles thanked Ms. Tran for her report and for reducing costs. Ms. Tran thanked all District departments for their efforts to reduce expenditures. Motion: To approve the proposed budget adjustment for Fiscal Year 2024-25 to ensure the continuation of services. 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 No: None Abstain: None Not Present: None There was no further discussion. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Recommendation: The Board of Directors receive and file the Capital Improvement Projects Status Report. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 District Engineer, Mark Esquer, presented report details. There was no further discussion, and the report was received. Action: 2. Reject All Project 354 Elden Fan Replacement Bids and Direct Saff to Review and Rebid the Project Recommendation: The Board of Directors receive, file, and reject all bids. Mr. Esquer presented the plans for the proposed Elden Pump Station fan. He provided project details and asked the Board to reject all proposals due to high bid amounts. Discussion followed regarding bid proposals and project timeline. Motion: To receive, file, and reject all Project 354 Elden Fan Replacement bids. 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 No: None Abstain: None Not Present: None There was no further discussion. Action: 3. Adopt Resolution No. 2024-997 Confirming an Emergency and Ratifying an Order of the General Manager to Replace Critical Infrastructure of South Coast Plaza Pump Station (CIP #355 SCP Sewer Emergency Replacement) and Approve a General Fund Transfer to the Project Recommendation: The Board of Directors approve the following: 1. Adopt Resolution No. 2024-997 confirming an emergency and ratifying an order of the general manager to replace critical infrastructure of the South Coast Plaza Pump Station 2. Approve the transfer of $182,000 from the General Fund to the Wastewater fund and appropriate $182,000 to the CIP #355, Sewer Emergency Replacement Project budget 3. Authorize District staff to: COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 a. Negotiate and approve a time -and -materials contract with TER Construction Inc. to provide emergency construction services, including dewatering activities and related services; b. Negotiate a CIP #355 SCP Sewer pipeline/liner installation and emergency services change order with Performance Pipeline Technologies, Inc. for the emergency activities and replacement pipeline installation; and c. Bring the TER Construction Inc. contract and Performance Pipeline Technologies, Inc. change order to the September 2024 Board of Directors meeting for consideration and ratification. Mr. Esquer explained that a wastewater emergency occurred in the District's pipeline at the South Coast Plaza. He shared photos of the area where the emergency work is occurring and a video of groundwater entering the pipeline that resulted in a sinkhole. He noted that the pipeline was severely damaged and not suitable for a liner installation. He presented various options for repair and liners. He added that staff is meeting with South Coast Plaza representatives later this week to re-evaluate this project. He presented staffs recommendations. Mr. Carroll commended Mr. Esquer for this leadership on this project. He noted that it has been challenging and difficult, but Mr. Esquer is working on a resolution. President Scheafer thanked Mr. Esquer for his efforts. Director Eckles inquired about the best- and worst -case scenarios for this project. Mr. Esquer stated that it is too early to predict the outcome of this project. He shared that the District will most likely have to perform digging work that requires planning and analysis due to the location of the incident. President Scheafer shared that the South Coast Plaza has had groundwater issues over the years. He expressed concern regarding the project's timeline. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 Mr. Carroll stated that he anticipates that construction will start early next year and not during the holiday season. Discussion followed regarding the project's emergency work. Motion: To adopt Resolution No. 2024-997 confirming an emergency and ratifying an order of the general manager to replace critical infrastructure of the South Coast Plaza Pump Station. Motion by Brett Eckles, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Abstain: None Not Present: None Motion: To: 1. Approve the transfer of $182,000 from the General Fund to the Wastewater fund and appropriate $182,000 to the CIP #355, Sewer Emergency Replacement Project budget. 2. Authorize District staff to: a. Negotiate and approve a time -and -materials contract with TER Construction Inc. to provide emergency construction services, including dewatering activities and related services; b. Negotiate a CIP #355 SCP Sewer pipeline/liner installation and emergency services change order with Performance Pipeline Technologies, Inc. for the emergency activities and replacement pipeline installation; and c. Bring the TER Construction Inc. contract and Performance Pipeline Technologies, Inc. change order to the September 2024 Board of Directors meeting for consideration and ratification. Motion by Brett Eckles, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Abstain: None Not Present: None COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 There was no further discussion. G. TREASURER'S REPORTS None at this time. H. ATTORNEYS REPORTS Mr. Burns shared that the Americans with Disabilities Act may allow remote participation from Board members who become disabled. He noted that it would require two-way video and audio and to identify all people at the remote location. President Scheafer asked if it would apply to those who are temporarily disabled. Mr. Burns stated that he is not sure it would apply to temporary disabilities. He stated that this would be in addition to the current Brown Act requirements. 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 days 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 (OC San) - (President Ooten) Vice Secretary Ooten stated that OC San meets this Wednesday, August 28"11. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 Secretary Perry stated that SARFPA did not meet this month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer shared that she presented a report on elections at the August ISDOC meeting. President Scheafer shared that ISDOC has not had a secretary for two years and that they are proposing that if someone runs for the position, then ISDOC will sponsor their attendance at the CSDA annual conference. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared that she attended a CSDA finance committee meeting and board meeting with its new board members. S. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer stated that there is nothing to report for SDRMA. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Schafer shared that she attended a Water Advisory Committee of Orange County (WACO) meeting which discussed the Salton Sea. She shared that the CSDA annual conference is taking place in September at Indian Wells. There was no further discussion. T. OLD BUSINESS None at this time. K. NEW BUSINESS COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments The Board wished Senior Management Analyst, Gina Terraneo, best wishes on her maternity leave. Director Eckles commended Ms. Tran and staff for their budgeting efforts. He discussed the importance of maintaining reserves for emergencies. He also commended Mr. Esquer for his response to the South Coast Plaza emergency. Vice Secretary Ooten also commended Ms. Tran and Mr. Esquer for their efforts. President Scheafer shared that he retires in four days. There was no further discussion. 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, September 23, 2024. President Scheafer adjourned the meeting at 5:54 p.m. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD AUGUST 26, 2024 Secretary President