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Minutes - Board - 2019-11-21COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING NOVEMBER 21, 2019 Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Alan Burns (District Counsel), Robin Harriers (District Engineer), Marc Davis (District Treasurer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II & Acting District Clerk) Others present Judith Gielow (District resident & Citizens Advisory Committee Member) Meeting called to order at 5:31 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Ferryman President Ferryman called the meeting to order at 5:31 P.M. Procedural: 2. Pledge of Allegiance - President Ferryman President Ferryman led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Ooten Vice President Ooten 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.) COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Management Analyst II and Acting District Clerk, Gina Terraneo, conducted roll call. She noted that all Board Members 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. General Manager, Scott Carroll, noted that comments were received via email from District resident, Jim Mosher. He noted that copies of these comments were provided to the Board, District staff, and the public. . Procedural: 6. Ceremonial Matters and Presentations None at this time. B. Public Comments Procedural: 1. Public Comments President Ferryman opened public comments. Seeing no one wishing to speak, he closed public comments. 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 Regular Meeting Minutes of October 29, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. Approve the Director's Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2020-05 Approving District Warrant Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2020-05 approving District warrants for the month of October 2019 in the amount of $1,030,036.67 Action (Consent): 5. Payroll Transparency Disclosure for October 2019 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 6. Accept the occupancy count as presented as 22,883 and direct staff to prepare a warrant to CR&R Environmental Services for $237,147.97 for October 2019 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,883 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for October 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,147.97 to be ratified in the November 2019 warrant list. Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the amount of $217,460.41 for October 2019 recycling and disposal services in the November 2019 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $217,460.41 for October 2019 recycling and disposal services to be ratified in the November 2019 warrant register. Action (Consent): 8. Investment Report for the Month of October 2019 Recommendation: That the Board of Directors approve the Investment Report for the month of October 2019. Action (Consent): 9. Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Citizens Advisory Committee (CAC) November 13, 2019 Meeting Overview 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 Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS Action: 1. Consider Approving the 2020 Meeting and Office Closure Calendar Recommendation: That the Board of Directors approve the Costa Mesa Sanitary District 2020 Meeting and Office Closure Calendar as presented. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Mr. Carroll presented the 2020 Meeting and Office Closure Calendar for the Board's review and approval. Director Perry noted that the District's headquarters typically closes at noon on the day before Thanksgiving. He suggested that the Board consider making this a full day holiday closure next year, since many people travel on that day. He noted that Mr. Carroll can survey staffs workload and report back to the Board at a future Study Session meeting. Mr. Carroll confirmed that he would need Board approval to make this policy change. President Ferryman suggested that the Citizens Advisory Committee (CAC) discuss this potential change. Director Perry suggested that Mr. Carroll determine how much activity occurs at the office on this day and then report back to the Board. Director Scheafer indicated agreement with Director Perry. Mr. Carroll noted that the City of Costa Mesa closes during the week of Christmas. Secretary Schafer verified that Mr. Carroll does not recommend implementing the change this year. Director Scheafer commented that changing the Board Meeting day to Monday worked out well for 2020. He noted that the only Board Meeting that coincides with a holiday is Memorial Day. Motion: To approve the Costa Mesa Sanitary District 2020 Meeting and Office Closure Calendar as presented, and to direct staff to bring an item back to the Board to consider making the day before Thanksgiving an office holiday closure beginning in 2020. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Secretary Schafer discussed establishing an ad hoc committee. Director Scheafer noted that this discussion can take place under Item E7. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Action: 2. Receive and File the First Quarter Budget Review for FY 2019-20. Recommendation: That the Board of Directors receive and file this report. Finance Manager, Kaitlin Tran, provided report details. She explained that based on limited spending trends from July through September 2019, staff is projecting that the District will be on target for both its Solid Waste and Wastewater Funds. She cautioned that projections with less than 3 months' worth of activity should not be relied upon, and that projections will become more precise as the fiscal year progresses. Ms. Tran noted that as of September 30, 2019, a total of 17.4% of the Solid Waste budget and 27.4% of the Wastewater budget have been expended. She provided an overview of each fund's accounts and noted that the apportionments for this year's annual assessments will begin coming into the District in November. Director Perry asked whether the assessments identify a line item for assessments that were unpaid in past years. Ms. Tran noted that there is a line item labeled "prior year," but it does not identify unpaid accounts. Vice President Ooten commented that the County of Orange is effective with its collections. Ms. Tran provided an overview of investment earnings, contributions from CR&R for education programs, and fees from the establishment of new services and permits. Director Perry confirmed that the budgeted property tax revenue has increased over the years. He inquired about undesignated funds. Ms. Tran noted that a General Fund was created this year. Discussion followed regarding the use of undesignated funds for the District's contributions toward the City of Costa Mesa's temporary and permanent shelter restrooms, as well as rate stabilization. Director Scheafer inquired about the disparity between the budgeted amounts for Wastewater professional development in comparison with Solid Waste professional development. Ms. Tran noted that the number of Wastewater staff has increased, which accounts for this difference. Director Scheafer asked if the Board's professional development activities are split equally between the funds. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Ms. Tran noted that conferences are charged in accordance with their subject matter. Director Scheafer inquired about how utilities are charged. Ms. Tran noted that utilities are charged 90% to the Wastewater Fund and 10% to the Solid Waste Fund. Director Perry asked if any high schools are participating in the Alkaline Battery Recycling Program. Mr. Carroll noted that he is unsure, but he will find out. There was no further discussion and the report was received. Action, Receive and File: 3.2019 Citizen Survey Results Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented a condensed version of the Citizen Survey Results and noted that Adam Probolsky of Probolsky Research was unable to be at tonight's meeting, but he will be attending the December Study Session. He shared that Mr. Probolsky presented the results to the CAC. Mr. Carroll noted that the 2019 Citizen Survey included 500 respondents that completed the survey by telephone and online with language options for English, Spanish, and Vietnamese. He shared key results, including that 35% of respondents identified homelessness as the most important issue facing the community. He indicated concern that a significant percentage of respondents did not know that the District provides curbside collection service. He also noted that 72% of respondents approve of the job that the District is doing, which is a slight decrease from the response to this question in the District's 2016 survey. Vice President Ooten commented that nearly half of the respondents were renters, which may explain why they do not associate the District with curbside collection. Mr. Carroll noted that he will present a slide at the end of the presentation that shows the percentage of renters and property owners. District Engineer, Robin Hamers, confirmed that not all of the respondents were District solid waste customers. Mr. Carroll noted that 60% of respondents said that CR&R is doing an excellent job at providing waste collection services. Additionally, he noted that of those that said CR&R is doing a poor job, about 6.8% said that they either do not trust CR&R to sort out recyclables or that they do not have recycling containers in their area. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 He commented that residents may not know that commingled waste is sorted to recover recyclables. Vice President Ooten commented that some residents may associate blue containers with recycling. Mr. Carroll shared that 41 % of respondents indicated that they believe it is important for the District to remain an independent agency and 78% said they believe it is important that the District does not go into debt. Additionally, he noted that 84% of respondents said that the District provides reliable sanitary service. Vice President Ooten commented that residents likely associate sanitary service with trash collection. Mr. Carroll continued the presentation and noted that 87% of respondents were unaware of the District's smart phone app. He shared that 63% indicated satisfaction with the District's level of openness, which decreased in comparison with the 2016 survey results. He commented that this is likely because residents are not aware of the District's transparency efforts, and because they may not visit the District's website. Mr. Carroll pointed out that only 38% indicated that they think the District is doing enough to protect the environment and the public's health, but he noted that 46% responded that they were unsure or preferred not to answer. He shared that 70% indicated awareness of the Large Item Collection Program, which is an increase in comparison with the 2016 survey results. He commented that this demonstrates the success of the program. He noted that 64% indicated that they are unaware of the Door -To -Door Household Hazardous Waste Collection Program, which he commented is not surprising, given that it is a relatively new program. Lastly, he shared that 41 % indicated that they were unaware of the Organics Recycling Program, and he commented that this is concerning. He commented that this could indicate that the respondents were renters or new residents. Secretary Schafer inquired about how new residents begin their trash service. Mr. Carroll explained that when residents move into a home, they take over the home's existing trash carts. He added that new residents receive a welcome mailer that includes District program information. Director Scheafer commented that the organics cart is noticeably different from the mixed waste trash carts. Director Perry verified that residents pay for their service through their property tax bills, and therefore the District has no way of knowing when a resident moves into an existing home unless they call the District. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Vice President Ooten commented that the District conducted significant outreach during the roll out of the Organics Recycling Program, but he noted that this initial degree of outreach has not continued. Mr. Carroll noted that those who had participated in the Organics Recycling Program indicated a high level of satisfaction. He went on to share that 65% of respondents were unaware of the Sewer Inspection Rebate Program, which he commented is not surprising because it is a relatively new program. He noted that 48% were unaware of the Medication Disposal Program, which he commented is concerning given the prevalence of prescription medications. Additionally, Mr. Carroll shared that 42% were unaware of the Sharps Disposal Program, although he commented that not everyone has sharps to dispose of. Lastly, he noted that 59% were unaware of the American Flag Retirement Drop Box, but he commented that this is a relatively new program and the drop box is almost always full. Vice President Ooten inquired about the sizes of the flags that are placed in the drop box. Mr. Carroll responded that usually large flags are deposited in the drop box. Director Scheafer commented that most people throw away small plastic flags. Secretary Schafer commented that she attended the CAC meeting, which featured a presentation on these survey results from Mr. Probolsky. She noted that respondents seemed to support the use of the newsletter to distribute District news and information. Mr. Carroll shared that 80% of respondents were unaware of the Citizens Environmental Protection Academy and that 48% indicated support for raising sewer rates to pay for the costs of maintenance and infrastructure improvements. He commented that respondents indicated a preference for a sewer rate increase of $2 to $5 over the next 5 years, as opposed to 2% to 5% over the next 5 years. With regard to staying informed, Mr. Carroll shared that respondents indicated a preference for receiving District information through a newsletter. He noted that 47% preferred receiving monthly communications. He shared that 79% of respondents approved of the job that the District is doing when asked at the conclusion of the survey (in comparison with 72% approval at the beginning of the survey). Mr. Carroll noted that the online focus group showed a similar increase in approval after learning more about the District. He commented that this indicates that the District is not currently getting its message to residents, but increasing outreach may increase resident approval of the District. Lastly, he shared that 41 % of the respondents owned a single family home, while 20% rent apartments. Mr. Carroll welcomed questions and reiterated that Mr. Probolsky will attend the December Study Session. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Secretary Schafer and Vice President Ooten commented that Mr. Probolsky conducted a very thorough survey. There were no further comments or questions and the report was received. Action: 4. Consider Hiring a Public Relations Firm Recommendation: That the Board of Directors direct staff to solicit request for proposals from qualified public relations firms and report back with the recommended firm and appropriation of funding. Mr. Carroll shared his recommendation to hire a public relations firm in order to develop and implement a public outreach strategy. He noted that staff believes the cost will be about $50,000-$60,000 annually, but they will not be sure until the District goes out to bid for these services. He noted that he would like to get the Board's approval to begin the Request for Proposal .(RFP) process. Vice President Ooten noted that the CAC discussed how the District can assess the program outcomes. Mr. Carroll confirmed that the CAC recommended identifying metrics to measure success, including conducting another citizen survey and measuring program participation. Vice President Ooten commented that he believes the CAC wanted District staff to develop these measures prior to the Board making a decision on the matter. Mr. Carroll suggested that the Board give staff direction to move forward with the RFP, and then staff will bring back a recommended public relations firm, along with a set of metrics to consider. Director Scheafer commented that he does not want to see the District conduct the same type of branding as Mesa Water District. He indicated that he does not have a problem with conducting an RFP, as long as the bidders illustrate a clear plan of action. He commented that $50,000 seems like a lot of money, and he questioned whether it really matters if people know about the District. Mr. Carroll replied that he believes it does matter if people know about the District. He commented that voters' unawareness of the District may have contributed to Measure TT passing. He added that water districts spend millions of dollars on their agency branding, and he noted that he is not asking for millions of dollars. Vice President Ooten commented that there may be additional costs associated with implementation of the public outreach strategy and the subsequent citizen survey. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Mr. Carroll commented that there is value in the survey and that the District conducts these surveys periodically. Vice President Ooten noted that bidders for an RFP usually propose their qualifications rather than their objectives. Director Scheafer suggested that the Board, discuss and determine its goals for this project prior to putting out an RFP. Mr. Carroll noted that District staff will prepare objectives and present them at the next Study Session. Secretary Schafer commented that many residents do not seem to understand that the District is separate from the City of Costa Mesa. Director Perry commented that he does not believe that will change. Director Scheafer explained that he would like to know what the District can accomplish with the proposed funding. He noted that he would like to have Mr. Probolsky's input. He suggested having an in-house staff person to handle public relations. Director Perry indicated agreement and inquired about the District's social media outreach efforts. Discussion followed regarding NextDoor. Mr. Carroll noted that the District has expanded its social media efforts, but he explained that NextDoor is a free service to agencies with first responders. He noted that NextDoor does not consider wastewater agencies to be first responders, and therefore they would charge the District to have an account. Director Scheafer reiterated his request to have a future Study Session item to discuss objectives for the proposed public relations firm, as well as to explore an alternative option to hire an in-house public relations staff member. Vice President Ooten commented that the town halls were effective during the roll out of the Organics Recycling Program. Director Scheafer complimented the District's Facebook outreach. Discussion followed regarding the cost and scope of NextDoor accounts. Director Perry indicated agreement with Director Scheafer's request. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 The Board of Directors directed staff to bring an item to the next Study Session to discuss objectives for the proposed public relations firm, and to explore an alternative option to hire an in-house public relations staff member. Vice President Ooten confirmed that the proposed funding is not budgeted. Ms. Tran noted that the funds, if approved, would likely be split 50%/50% between the Solid Waste and Wastewater Funds if both services were advertised. Vice President Ooten commented that the promotion would likely focus on Solid Waste programs, but this would have to be discussed further. There were no further comments or discussion. Action: 5. Consider Approving Appropriation of Funds and Out -of -State Travel to the Waste Expo Conference in New Orleans from May 4-7, 2020 Recommendation: That the Board of Directors consider appropriating $6,410 from the Solid Waste Fund Balance and approve out of state travel for Secretary Schafer, Director Scheafer and Nabila Guzman, Management Analyst I to attend the Waste Expo Conference in New Orleans from May 4-7, 2020. Mr. Carroll noted that Secretary Schafer and Director Scheafer expressed interest in attending the Waste Expo Conference in New Orleans next year, but their attendance was not budgeted. He explained that the Board directed staff to bring this item back for consideration to approve funding for the aforementioned Directors from the Solid Waste Fund Balance, as well as out-of-state travel for the Directors and Management Analyst I, Nabila Guzman, to attend the conference. He added that Ms. Guzman's attendance was budgeted. Motion: To appropriate $6,410 from the Solid Waste Fund Balance and approve out-of-state travel for Secretary Schafer, Director Scheafer, and Management Analyst I, Nabila Guzman, to attend the Waste Expo Conference in New Orleans from May 4-7, 2020. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action: 6. Approve Out of State Travel to Government Finance Officers Association (GFOA) Conference - New Orleans, Louisiana Recommendation: That the Board of Directors approve out-of-state travel for the Accountant and the Finance Manager to attend the GFOA Conference in New Orleans, Louisiana. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Mr. Carroll recommended the approval of out-of-state travel for Ms. Tran and Accountant, Lieu Tran, to attend the GFOA Conference in New Orleans, Louisiana. He noted that their conference attendance was budgeted. Motion: To approve out-of-state travel for the Accountant and the Finance Manager to attend the GFOA Conference in New Orleans, Louisiana. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action: 7. Consider Creating an Ad Hoc Committee to discuss District On -Going Projects Recommendation: That the Board of Directors considers appointing two Board members to serve on an ad hoc committee to discuss on -going projects by the District. Mr. Carroll noted that this item was requested by the Board at the November Study Session and requested the Board's direction on the matter. He explained that ad hoc committees are temporary, and they are established to focus on an objective. He noted that the District currently has a Policy Review Ad Hoc Committee and a . Solid Waste Ad Hoc Committee. Director Scheafer confirmed that there is no limit to the number of ad hoc committees the District .can have. District Counsel, Alan Burns, reiterated that ad hoc committees need to have a temporary, focused purpose. He commented that a committee to discuss on -going projects may be considered a standing committee rather than an ad hoc committee. Director Scheafer noted that Mr. Mosher commented that the full Board should review on -going projects. He commented that sometimes projects can be cumbersome for the full Board to review, so it makes sense to have a few Board members discuss and bring it back to the Board. Secretary Schafer noted that she was on a prior Policy Review Ad Hoc Committee and commented that ad hoc committees are good. President Ferryman inquired about the status of the current ad hoc committees. Director Perry noted that the Policy Review Ad Hoc Committee will likely conclude in 2 or 3 more meetings. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Director Scheafer added that the Solid Waste Ad Hoc Committee will have its first meeting on December 11. Secretary Schafer noted that she suggested creating another ad hoc committee to see how the year has progressed. She volunteered to serve on the proposed committee. Director Perry commented that this committee could be done quickly. Director Scheafer asked if the purpose of the committee is to discuss the Year End Report. Mr. Carroll noted that staff is in the process of making the Year End Report, which will be complete in January. Director Perry suggested that President Ferryman and Secretary Schafer serve on this committee. Secretary Schafer noted that the committee can discuss whether or not programs are worth continuing. Director Perry suggested that the committee meet after the Year End Report is presented to the Board. President Ferryman appointed himself and Secretary Schafer to the committee. Mr. Carroll asked what the Board would like to call the committee. Mr. Burns noted that the District typically observes the Brown Act for both standing committees and ad hoc committees. He noted that if it is truly an ad hoc committee, it is not necessarily subject to the Brown Act. He cited the 75th Anniversary Ad Hoc Committee as an example. Mr. Carroll asked if the Board would like CAC Members to serve on this committee, since CAC Members are serving on the other 2 existing ad hoc committees. He noted that the next CAC meeting is scheduled for January. The Board expressed that it is not necessary for this ad hoc committee to have CAC Members. Director Scheafer commented that it becomes difficult to schedule meetings with CAC Members, and he noted that the committee is intended to have Board Members review District projects and programs. Director Perry indicated agreement. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Discussion followed regarding the committee name. Vice President Ooten suggested calling the committee the 2019 Annual Accomplishments Committee. Director Perry exited the meeting at 6:42 P.M. and re-entered the meeting at 6:44 P.M. President Ferryman confirmed that District staff will contact the Committee members regarding the appropriate time to have the first meeting. Motion: To establish the 2019 Annual Accomplishments Ad Hoc Committee. Motion by Mike Scheafer, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Motion: To appoint President Ferryman and Secretary Schafer to the 2019 Annual Accomplishments Ad Hoc Committee. Motion by Jim Ferryman, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. F. ENGINEER'S REPORTS Receive and File: 1. Receive and File the Monthly Capital Improvements Project Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Harriers presented the report. He noted that the District does not have any projects currently under construction right now. There was no discussion and the report was received. Receive and File: 2. Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 377-379 La Perle Place, Costa Mesa — John Todd Ridgeway Recommendation: That the Board of Directors receive and file the report. Mr. Hamers presented the Declaration of Conflict of Interest and noted that the Alterative District Engineer will be used for this project. Discussion followed regarding the project location. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 There was no further discussion and the report was received. Action: 3. #319/#320 Canyon Pump Station Rehabilitation and Force Main Replacement; Accept Improvements, File Notice of Completion, Exonerate Bonds Recommendation: The Board of Directors approves the following action: Accept improvements as completed and file a Notice of Completion. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Mr. Harriers noted that the recommendation is the normal course of action when a project is completed. He commented that the project went well, change orders were minimal, and that the Canyon Pump Station is doing a lot better now that it has a new force main. He added that the inside of the pump station was rehabilitated. Motion: To accept improvements as completed and file a Notice of Completion, authorize payment of 5% retention 35 days after Notice of Completion is recorded, and exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 4. Inflow & Infiltration (1/1): Mendoza Pump Station Smoke Test FINDINGS Recommendation: That the Board of Directors: 1. Direct staff to implement the recommendations cited in the attached report; and 2. Direct staff to smoke test the remainder of the Mendoza Pump Station Tributary Area in FY 2020-21 Mr. Harriers shared that the District conducted the Mendoza Pump Station Smoke Test and commented that it worked well. He noted that he gave a full detailed report at the November Study Session and the Board directed staff to come back with a proposal to monitor the flows from the Orange County Fairgrounds and to consider the recommendations. He noted that he has a proposal for the flow meter, which he will share with Mr. Carroll, and they will work within the remaining project budget. Mr. Harriers explained that the first phase of smoke testing did not reveal a major contributor to inflow and infiltration (1/1), but rather it revealed some small contributors. He added that the District needs to identify the significant source(s). COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 ..._...._..._-- Vice President Ooten reiterated the request to discuss the cost of the flow meter installation. Mr. Hamers explained that the same consultant that conducted the smoke test, ADS Environmental Services, developed a proposal for $10,500 for 90 days. He noted that having a rain gauge would be an additional cost, but it would be beneficial to compare the flow with the rainfall data. He shared that there is about $13,000 remaining in the project budget. Vice President Ooten commented that it may be cheaper to obtain a rain gauge from another source. He requested that Mr. Hamers develop a plan and bring it to the next Study Session. Motion: To direct staff to implement the recommendations cited in the attached report and to smoke test the remainder of the Mendoza Pump Station Tributary Area in FY 2020-21. Motion by Mike Scheafer, second by Arlene Schafer. Director Perry asked if the Board should wait to hear the Study Session item prior to approving the recommendations. Mr. Carroll noted that the Study Session item will discuss the flow meter, but the motion is in regards to the report recommendations and the continuation of smoke testing. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. G. TREASURER'S REPORTS Nothing to report at this time. H. ATTORNEY'S REPORTS Mr. Burns shared that AB 1184 was vetoed by Governor Newsom, and that it would have required the District to retain its emails for 2 years. Director Perry asked how long the District currently keeps its emails. Mr. Burns noted that emails are only considered public records if they are retained. Mr. Carroll noted that the District adheres to its records destruction policy. COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Vice President Ooten requested that District staff find out how long emails are kept and report back to the Board. Mr. Burns went on to share information about a Fair Political Practices Commission (FPPC) opinion that suggests that the use of surveys to influence public opinion about bond measures can be considered campaigning. He noted that this is not a new law, but it is a new interpretation. 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 Ferryman) President Ferryman shared that he attended the OCSD meeting and noted that there was discussion regarding challenges with construction on a property that OCSD purchased. He added that he attended the Orange County Council of Governments (OCCOG) meeting, which featured a presentation from the Southern California Association of Governments (SCAG). Vice President Ooten shared that OCSD approved their Strategic Plan. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry shared that he and President Ferryman attended the SARFPA meeting. He provided updates regarding SARFPA's advocacy in Washington D.C. and current projects. Discussion followed regarding the flood insurance costs related to the Federal Emergency Management Agency (FEMA). 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Director Scheafer noted that he attended the ISDOC meeting and shared that there was discussion of the Local Agency Formation Commission (LAFCO) dues and the Association of California Water Agencies (ACWA). 4. California Special Districts Association (CSDA) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21, 2019 Secretary Schafer shared that she attended a CSDA legislation meeting and complimented District staff on its responsiveness to CSDA's requests for legislative support and opposition letters. She noted that she attended a CSDA professional development meeting, which included discussion about CSDA's 50th Anniversary and the Annual Conference. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Director Scheafer shared that he attended the SDRMA meeting. He noted that SDRMA welcomed a new board member, and they received a financial report. 6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Ooten noted that he attended the Water Advisory Committee of Orange County (WACO) meeting and shared that there was a presentation about the plan to remove underbrush in forests to prevent destructive fires. Discussion followed regarding the permitting and inspection process for generators. Vice President Ooten noted that OCSD is conducting a study on the impacts of climate change on their infrastructure. He asked if the District has any low-lying pump stations. Mr. Hamers noted that the District does not have pump stations in low-lying areas. There was no further discussion. J. OLD BUSINESS None. K. NEW BUSINESS None. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Scheafer inquired about a proposed new development near his neighborhood. COSTA MESA SANITARY DISTRICT PAGE 19 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD NOVEMBER 21,2019 Discussion followed regarding the development. Director Scheafer wished everyone a Happy Thanksgiving. President Ferryman noted that the District received an appreciation plaque from the Newport Mesa Schools Foundation for its contribution to their annual State of the Schools Breakfast. Director Scheafer shared that the Board attended the last Liaison Committee Meeting and commented that it was cumbersome. M. ADJOURN TO CLOSED SESSION There was no closed session. N. RECONVENE TO OPEN SESSION There was no closed session. O. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting at 7:22 P.M. Arlehe Sch Secretary Jam." s Ferryman Pre'