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Minutes - Board - 2020-12-21COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING DECEMBER 21, 2020 Note: This meeting was conducted utilizing teleconferencing pursuant to Government code Section 54952.2 and the Governor's Executive Orders in effect waiving some of the requirements of that Section. 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), Alan Burns (District Counsel), Marc Davis (District Treasurer), Michael Benesh (Interim District Engineer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II) Others present Joshua Calhoun (Partner, Teaman, Ramirez & Smith) Mike Carey (CR&R Environmental Services) Adam Ereth (District resident) Judith Gielow (Citizens Advisory Committee Member and District resident) Jim Mosher (District resident) Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order — Vice President Ooten Vice President Ooten called the meeting to order at 4:30 P.M. Procedural: 2. Pledge of Allegiance — Vice President Ooten Vice President Ooten led the Pledge of Allegiance. Procedural: 3. Invocation — Vice President Ooten COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 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.) District Clerk and Public Information Officer, Noelani Middenway, conducted roll call and noted that Vice President Ooten, Secretary Schafer, Director Scheafer, Director Perry, and Director Eckles were present at this time. 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. Ms. Middenway stated that the District received written communications from District resident, Jim Mosher, which were disseminated to the Board this afternoon. She noted that they have been added to the agenda under Public Comments for the public to review. Procedural: 6. Ceremonial Matters and Presentations. None at this time. B. PUBLIC COMMENTS Procedural: 1. Public Comments Vice President Ooten opened public comments. Mr. Mosher inquired about contacting the Board member that represents his area of the District via email through the District's website. He shared that other public agencies provide a form for the public to send an email to either one or all elected officials on their website. He recommended that the District provides the public with an online mechanism to directly communicate with their District representatives. Hearing no additional comments, Vice President Ooten closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of November 10, 2020 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 23, 2020 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. 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): 5. Adopt Warrant Resolution No. CMSD 2021-06 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2021-06 approving District warrants for the Month of October in the amount of $771,597.97. Action (Consent): 6. Approve Payroll Transparency Disclosure for November 2020 Recommendation: That the Board of Directors approve and file this report. Action (Consent): 7. Accept the occupancy count as presented as 22,989 and direct staff to prepare a warrant to CR&R Environmental Services for $238,246.50 for November 2020 collection Recommendation: That the Board of Directors accepts the occupancy count as presented using 22,989 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for November 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,246.50 to be ratified in the December 2020 warrant list. Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the amount of $220,329.59 for November 2020 recycling and disposal services in the December 2020 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $220,329.59 for November 2020 recycling and disposal services to be ratified in the December 2020 warrant register. Action (Consent): 9. Receive and File the November 2020 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the November 2020 Solid Waste Diversion Report COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File the November 2020 CEO Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 12. Receive and File Contracts Signed by the General Manager — November 2020 Recommendation: That the Board of Directors receive and file this report. Action (Consent): 13. Approve the Investment Report for the Month of November 2020 Recommendation: That the Board of Directors approve the Investment Report for the month of November 2020. Vice President Ooten discussed Item C11 and recommended spelling out CEO to specify that it refers to the Code Enforcement Officer. 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, Brett Eckles, Mike Scheafer There was no further discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER'S REPORTS Action: 1. Consider Approving the 2021 Meeting and Office Closure Calendar Recommendation: That the Board of Directors approve the Costa Mesa Sanitary District 2021 Meeting and Office Closure Calendar as presented. Director Perry inquired about the monthly General Manager meetings between the General Manager and two rotating Board members. Ms. Middenway clarified that this calendar includes public meetings only. She noted that the monthly General Manager meetings are listed on a separate calendar. Director Scheafer asked if the District is on schedule to continue with the Liaison Committee meetings. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 ............._ Ms. Middenway stated that the District is on schedule to have the meetings as calendared. She shared that most of the other agencies have agreed to the schedule. She noted that the Newport Mesa Unified School District (NMUSD) requested to move the April Liaison Committee meeting either a week prior or after the scheduled date due to their spring break. Director Scheafer stated that the written public comments submitted by Mr. Mosher inquired about why all Board members attend the Liaison Committee meetings. He commented that all Board members attend those meetings to learn new information. He inquired if there is an issue with having all Board members in attendance. Ms. Middenway stated that the District lists all five Board members on the agenda in case all Board members wish to attend. She noted that only the Board President and Board Vice President are expected to attend, but the other three Board members may also attend. General Manager, Scott Carroll, stated that all Board members enjoy attending the Liaison Committee meetings to partake in dialogue with other government officials. He noted that there is no issue from District staff's perspective. Director Scheafer stated that a member of the public was concerned about all five Board members receiving a stipend for attending the Liaison Committee meetings. He inquired if the District has received any additional feedback from the public regarding this concern. Mr. Carroll confirmed that the District has received no additional comments from the public. Vice President Ooten noted that the District drafts the agenda in a way that allows all five Board members to attend the meeting should they wish to. Director Scheafer stated that the public comment implies that the District is wasting ratepayer money by having all five Board members attend the Liaison Committee meetings. Vice President Ooten stated that he does not agree with the comment's implication. Director Eckles inquired if all five Board members are normally in attendance at the Liaison Committee meetings. Director Scheafer stated that each Board member's attendance depends on their schedule. He shared that he cannot recall the last time all five Board members were in attendance. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 Motion: To approve the Costa Mesa Sanitary District 2021 Meeting and Office Closure Calendar as presented. 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 There was no further discussion. Action: 2. Board of Directors Nominations and Appointments 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. Vice President Ooten inquired if the Board has any nominations for the position of Board President. Director Perry nominated Vice President Ooten for the position of Board President. Motion: To appoint Bob Ooten as Board President. 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 President Ooten inquired if the Board has any nominations for the position of Board Vice President. He nominated Director Scheafer for the position. Motion: To appoint Mike Scheafer as Board Vice President. 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 President Ooten inquired if the Board has any nominations for the position of Board Secretary. Director Perry nominated Secretary Schafer for the position of Board Secretary. Motion: To appoint Arlene Schafer as Board 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 President Ooten inquired if the Board has any nominations for a Board member to represent the District on the Orange County Sanitation District's (OCSD) Board of Directors. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 Vice President Scheafer nominated President Ooten as the District's representative to OCSD's Board of Directors. Additionally, he nominated Director Perry as the District's alternate representative. Motion: To appoint Bob Ooten as Orange County Sanitation District Board Member, and to appoint Art Perry as Orange County Sanitation District Alternate Board Member. 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 President Ooten inquired if the Board has any nominations for a Board member to represent the District on the Santa Ana River Flood Protection Agency's (SARFPA) Executive Committee. Vice President Scheafer nominated Director Perry as the District's representative for SARFPA and President Ooten as the District's alternate representative. President Ooten discussed the possibility of him being appointed by OCSD to represent OCSD on SARFPA, which may conflict with him representing CMSD. Director Perry stated that if OCSD appoints President Ooten to that position, then the District can appoint a different alternate. He noted that SARFPA only has one year left of existence. Motion: To appoint Art Perry as Santa Ana River Flood Protection Agency Board Member, and to appoint Bob Ooten as Santa Ana River Flood Protection Agency Alternate Board Member. 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 Mr. Mosher stated that he submitted a written comment on this item. He inquired about the District's interest in SARFPA. He inquired about Director Perry's comment regarding SARFPA only existing for one more year. He noted that the City of Costa Mesa is not represented on SARFPA, but that the City of Newport Beach is represented. He requested an explanation as to why the District is a member of SARFPA's Executive Committee. President Ooten stated that there are at least four tracts that are subject to flooding in Costa Mesa. He added that flooding impacts OCSD's treatment plants. He noted that lower -level areas, including the lower Bird streets, the Mesa Verde neighborhood, the State street tract, and a few other residential tracts in Costa Mesa, are also subject to flooding. He stated that if flooding ever occurs, then the COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 local sanitary and sanitation agencies will be affected, which is the District's main reason for involvement with SARFPA. He thanked Mr. Mosher for his comments. Director Perry commented that a few residents of the Mesa Verde neighborhood have flood insurance. He noted that, in the past, all residents of that area had to have flood insurance, but, due to SARFPA, only a few residents are currently required to have flood insurance. Vice President Scheafer stated that SARFPA has worked with the District's congressional representative to ensure that no areas in Costa Mesa require flood insurance. He commented that SARFPA's discussions regarding groundwater basin infiltration and its effect on the District and OCSD's sewer system validate the District's involvement. Director Eckles inquired about the City of Costa Mesa's reasoning for not being a member of SARFPA. Mr. Carroll stated that the District is not aware of why the City is not a SARFPA member. He noted that Vice President Scheafer's comment regarding infiltration is a plausible reason for the District's involvement. He added that he will contact the General Manager of SARFPA to determine the District's history with SARFPA. President Ooten stated that the City is represented as one of the 25 member agencies of SARFPA by the District. He added that OCSD has been impacted by flooding numerous times and has the potential to be impacted again. He noted that the District represents the City's sewer interests, which may explain why they are a member and the City is not. Director Eckles and President Ooten encouraged Mr. Carroll to contact SARFPA's General Manager for a definitive answer. There was no further discussion. Action: 3. Consider Appointing One (1) Member to the Citizens Advisory Committee to Fill the Vacant One -Year Term Ending in March 2022 Recommendation: That the Board of Directors appoint one member to the Citizens Advisory Committee to fill one (1) vacancy for the term ending in March 2022. President Ooten presented the item. Director Perry stated that one applicant, Adam Ereth, is his nephew. He asked District Counsel, Alan Burns, if he must recuse himself from this item. Mr. Burns stated that there is no legal requirement for Director Perry to abstain from this item since there is no financial support between the parties involved. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 Director Perry stated that he will participate in the appointment. President Ooten inquired if the Board has any nominations to fill the vacant one- year term to the Citizens Advisory Committee (CAC). Hearing none from the other Board members, he nominated Adam Ereth to the CAC. Director Eckles requested confirmation from Mr. Burns that because there is no financial interest involved, there is also no nepotism on the part of the District for having a Board member's relative on an advisory committee. Mr. Burns confirmed Director Eckles' statement. Motion: To appoint Adam C. Ereth to the Citizens Advisory Committee to fill one (1) vacancy for the term ending in March 2022. 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 President Ooten stated that there will be more openings on the CAC in the coming year. Ms. Middenway confirmed that there will be seven openings on the CAC next year. She stated that the other applicant can ask to be considered in the next round of openings for the CAC. There was no further discussion. Action, Receive and File: 4. Receive and File the Comprehensive Annual Financial Report, Auditor's Report in Accordance with Government Auditing Standards, and the Auditor's Required Communication for the year ended June 30, 2020 Recommendation: That the Board of Directors receive and file: 1. The Comprehensive Annual Financial Report for Year Ended June 30, 20201 2. Auditor's Report in Accordance with Government Auditing Standards, and 3. The Auditor's Required Communication for the Year Ended June 30, 2020. Finance Manager, Kaitlin Tran, provided report details. She introduced the Comprehensive Annual Financial Report (CAFR) for fiscal year 2019-2020, which was compiled after the completion of the 2019-2020 audit. She presented the auditor's communication letter and the auditor's report, which are attached to the staff report. She stated that the auditing firm, Teaman, Ramirez & Smith, has issued an "unmodified," also known as a "clean," opinion for the fiscal year 2019-2020 audit. She provided an overview of the financial highlights, which are included in the staff report. She introduced Joshua Calhoun of Teaman, Ramirez & Smith, who was present to review the audit and answer any questions from the Board. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 Mr. Calhoun expressed his appreciation for working with District staff. He shared that, because of the COVID-19 pandemic, the audit was performed remotely. He stated that Teaman, Ramirez & Smith were engaged to perform a financial statement audit, which is required by the California State Constitution. He reported that the audit was accomplished by performing tests on the transaction of balances to ensure the accuracy of the internal controls as well as the numbers presented in the CAFR. He noted that their main purpose is to obtain sufficient audit evidence to issue an opinion on the District's financial statements. He discussed the various reports and letters produced for the audit. Director Perry inquired about the last page of the audit and its restrictions on use. Mr. Calhoun stated that the last page is the governance communications letter that restricts communication to management and the Board, since they are both aware of the District's internal operations. Director Perry inquired if outside agencies can use the information presented in the audit. Mr. Calhoun stated that, in theory, outside agencies are restricted from using the information. He noted that the District is very transparent in their auditing process by making the audit readily available for the public. Vice President Scheafer congratulated Ms. Tran and the Finance Department for their exemplary CAFR, national award recognition, and for operating at the highest standards. President Ooten and Ms. Tran acknowledged District Treasurer, Marc Davis, for his work and support. There was no further discussion, and the report was received. Action: 5. Consider approving the transfer out $60,000 from the Asset Management Fund, transfer into the Wastewater Fund and to appropriate $60,000 to CIP #3225 Bristol Sewer Siphon Repair Recommendation: That the Board of Directors consider approving the transfer out $60,000 from the Asset Management Fund, transfer into the Wastewater Fund and to appropriate $60,000 to CIP #322, Bristol Sewer Siphon Repair. Mr. Carroll presented report details. He stated that Capital Improvement Project (CIP) #322 Bristol Sewer Siphon Repair is a very challenging project that required a lot of cleaning. He noted that the amount of cleaning was unanticipated and described the process as slow, tedious, and very labor intensive, which affected the overall cost. He shared that the contractor has finished lining the siphon, and COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 that the siphon is fully rehabilitated. He stated that District staff is requesting an additional $60,000 to be transferred out of the Asset Management Fund and into CIP #322 Bristol Sewer Siphon Repair. He reviewed the financial section of the staff report and stated that the District has spent over $745,000 on CIP #322, which includes emergency work, temporary repairs, cleaning, and relining. President Ooten inquired if this transfer of funds will complete the project. Mr. Carroll confirmed that the transfer will complete the project and that there will be no additional costs. Director Perry inquired about the estimated cost for the lining of the siphon. Mr. Carroll stated that the cost of lining was $68,000. Vice President Scheafer discussed the project's emergency work to remove maintenance hoses that were stuck in the line. He inquired if this issue was a result of negligence by those performing the work. Mr. Carroll stated that the District is confident that the issue was not caused by negligence. He reported that the hoses got stuck because of natural wear and tear. He noted that this prompted District staff to assess other siphons for similar issues. Vice President Scheafer asked how many other siphons were assessed. Interim District Engineer, Michael Benesh, reported that the Bristol Sewer Siphon was a one-off situation, in which someone had dumped concrete or grout into the sewer main. He stated that all other siphons have been cleaned and inspected and appear to be in good working condition. He shared that the District will propose a project next year to proactively rehabilitate its other siphons. President Ooten requested for District staff to present a report on the condition of its siphons in the future. He inquired if the concrete that was dumped in the Bristol sewer main caused the hose to get stuck. Mr. Carroll stated that the hose got stuck because the pipe was deteriorated. Motion: To approve the transfer out of $60,000 from the Asset Management Fund, the transfer into the Wastewater Fund, and the appropriation of $60,000 to Capital Improvement Project #332 Bristol Sewer Siphon Repair. 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 There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 F. ENGINEER'S REPORTS Action, 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. President Ooten asked the Board if they had any questions on the Capital Improvements Project Status report. Vice President Scheafer commented that he saw the District's Code Enforcement Officer on California Street and noticed a camera mounted on the top of the District's Code Enforcement vehicle. Mr. Carroll stated that the District implemented a brand new program that uses artificial intelligence to detect damaged manholes. He noted that this program is the only one of its kind in the country. He shared that the GoPro camera records as the Code Enforcement Officer drives throughout the District. He added that the artificial intelligence will detect manholes and rate them based on their damage level. He reported that this program prevents District staff from having to inspect each manhole in person and that the detections record the date of inspection. He stated that this item will be presented to the Board and the Citizens Advisory Committee next month. Vice President Scheafer asked if this program will provide the District with indications on the grade of each manhole. Mr. Carroll stated that it will rate each manhole, and the District will receive new recordings every three months. He noted that District staff can override the system and correct the ratings if they are not accurate. He stated that the artificial intelligence becomes more accurate as more information is input into the system. President Ooten stated that the District has 212 miles of sewer. Mr. Carroll stated that District staff estimates that it will take the Code Enforcement Officer two weeks to cover the District's service area. Director Perry inquired about the program's data collection. Mr. Carroll stated that the data is stored on a server. Director Perry asked about the program's start date and if the District has seen any results. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 Mr. Carroll stated that the program started this month and that the District has been making a few adjustments to the system to ensure that it is rating each manhole correctly. Director Perry inquired if the City of Costa Mesa was helping the District inspect manholes. Mr. Carroll stated that the District was inspecting its manholes annually without any assistance from the City. He noted that inspections were time consuming and physically dangerous due to street traffic. He added that the program is safer and will produce more accurate information. Director Perry expressed his support for the program. Secretary Schafer suggested sharing the program with the Liaison Committee in January 2021. Mr. Carroll stated that he will share the information with the Board and the Liaison Committee. President Ooten expressed support for discussing this program in the future. Director Eckles expressed support for the Capital Improvements Project Status report and noted that it is very comprehensive and straightforward. President Ooten stated that he would like to see the bid amounts included in the report. Mr. Benesh confirmed that he will provide that information for the Board. There was no further discussion, and the report was received. G. TREASURER'S REPORTS Mr. Davis noted that there is no report for today's agenda. He stated that he will need to coordinate with President Ooten to retrieve his signature for the District's banking information. H. ATTORNEY'S REPORTS None at this time. 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, COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 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) - (Vice President Ooten) President Ooten reported that he attended three OCSD meetings. He stated that there were 14 turnovers in OCSD Board members. He shared that a massive federal and state legislative report was presented, and that he recorded it if anyone would like to hear it. He stated that OCSD provided updates on infrastructure and their asset management program. Director Perry asked if new Board members have been appointed. President Ooten stated that most Board members have been appointed. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry stated that SARFPA did not meet this month and that they will be meeting next month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer reported that ISDOC met on November 3, 2020, which was the last meeting for their current Board. She noted that ISDOC's new Board will meet next month. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer reported that she attended a CSDA Finance Committee special meeting. She stated that CSDA had their Board meeting on November 13, 2020. She shared that she met a few of the new CSDA Board members via Zoom. She added that she will not be flying to Sacramento for CSDA meetings, and that she will continue to attend meetings via Zoom. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer reported that SDRMA had a meeting two weeks ago. He shared that SDRMA is preparing to form a captive joint powers authority out of the state of Utah as part of their Workers' Compensation program. He noted that the next SDRMA Board meeting will take place the first week of January 2021. He will provide more information regarding SDRMA's captive joint powers authority next month. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Secretary Schafer reported that she attended the Water Advisory Committee of Orange County (WACO) meeting on November 16, 2020. She stated that Larry Dick, who was the Chairman of the Nominating Committee, announced Cathy Green as the President of WACO and Mark Monin as the Vice President. Vice President Scheafer reported that he attended a Solid Waste Association of North America (SWANA) webinar on November 10, 2020, which discussed the effects of the COVID-19 pandemic on recycling and other trash related issues. He stated that there is a major increase in cardboard due to online shopping. He added that he attended an OCSD/Orange County Water District (OCWD) Groundwater Replenishment System virtual tour on November 15, 2020. Director Perry reported that he attended a Costa Mesa City Council meeting, which included discussion about free speech, including profanity. He inquired if the District allows profanity at their meetings. Mr. Burns stated that profanity is only restricted if a speaker is disrupting a meeting. He shared that there is a court case that resulted in permitting t-shirts displaying profanity. He stated that the District has an ordinance regarding conduct at District meetings. He commented that establishing limits to the First Amendment is tough, and that there is a substantial amount of free speech allowed. Director Perry shared that the City of Costa Mesa will be installing more crosswalks and stop lights on Placentia Avenue. He announced that the new Mayor Pro -Temp is Councilwoman Andrea Marr. He expressed his support for her. He stated that he attended an NMUSD meeting regarding the Performing Arts Center at Estancia High School. He noted that the meeting discussed a few sewer line problems at Estancia High School. He added that he as well as Mr. Carroll are unaware of any sewer issues at Estancia High School. He shared that the Performance Art Center is a $28.5 million dollar project. President Ooten shared his insight about the sewer line problems at Estancia High School. He added that the trees on the premises are a major concern for the placement of the Performing Arts Center. Mr. Burns announced that he has an appointment at 6:00 p.m. and requested for the Board to proceed with Closed Session. Director Perry stated that he will provide written notes on his remaining meetings. COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 President Ooten paused the local meetings discussion and proceeded with closed session. J. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. M. ADJOURN TO CLOSED SESSION Discussion: 1. Conference with Legal Counsel — Anticipated Litigation — Significant exposure to litigation pursuant to Paragraph (2) of subdivision (d) of Government Code Section 54956.9, as specified in subdivision (e)(3) exists: Claim of Steven Hodges received June 3, 2019 against the Costa Mesa Sanitary District, a copy of which will be made available to the public. Discussion: 2. Conference with Legal Counsel - Existing Litigation Paragraph (1) of subdivision (d) Section 54956.9 California River Watch v. Costa Mesa Sanitary District, USDC No.: 8:20-cv-01702 Mr. Burns announced the two items that will be discussed in closed session. He noted that they will be discussing the Hodges v. Costa Mesa Sanitary District case which has been assigned Orange County Superior Court Number 30-2019- 01102477-CU-OC-CJC. He noted that he will provide this information to Ms. Middenway for the record. President Ooten adjourned the meeting to closed session at 5:38 P.M. to discuss the following: 1. Conference with Legal Counsel — Anticipated Litigation — Significant exposure to litigation pursuant to Paragraph (2) of subdivision (d) of Government Code Section 54956.9, as specified in subdivision (e)(3) exists: Claim of Steven Hodges received June 3, 2019 against the Costa Mesa Sanitary District, a copy of which will be made available to the public. 2. Confer with Legal Counsel - Existing Litigation Paragraph (1) of subdivision (d) Section 54956.9 California River Watch v. Costa Mesa Sanitary District, USDC No.: 8:20-cv-01702 N. RECONVENE TO OPEN SESSION AND REPORT OF ACTION TAKEN 1. Announce any reportable action taken in closed session. COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 President Ooten reconvened the meeting to open session at 5:51 P.M. and noted that no reportable action was taken during the closed session. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 After the closed session adjourned, President Ooten resumed the Local Meetings discussion. He shared that he attended a WACO meeting hosted by Mesa Water. He reported that about 75% of Mesa Water's system is comprised of asbestos cement pipe. He noted that they have been assessing the wall thickness of their pipes. He discussed their method for addressing service line breaks. He added that he attended an OCSD webinar on recycled water. Director Perry reviewed additional WACO discussions. He shared that Mesa Water estimates that they will need $131 million dollars to replace pipelines for the next 100 years. He discussed their five-year assessment plan and stated that they might be overcharging their ratepayers for their 100-year plan. President Ooten commented that Mesa Water has a substantial amount of debt, which they use to pay off their unfunded liability. He suggested that Mesa Water might not be charging their ratepayers enough to cover their debt. Mr. Burns left the meeting at 5:57 p.m. There was no further discussion. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Eckles requested to add an option to "email all" Board members on the District's website in response to Mr. Mosher's comment. Mr. Carroll stated that District staff will research that option. He noted that the District is currently redesigning the website. Director Eckles discussed Citizen Advisory Committee (CAC) Member Sue Lester's previous comment regarding District representation on the CAC. He requested a report on the makeup and current representation of the CAC to be presented at an upcoming Study Session. He noted that the CAC will have seven open positions next year. Vice President Scheafer wished everyone happy holidays. COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 21, 2020 President Ooten thanked everyone for his appointments and stated that he will work diligently on fulfilling each one. President Ooten and Secretary Schafer wished everyone happy holidays. There were no further comments or discussion. O. CLOSING ITEMS Procedural: 1. Adjourn President Ooten adjourned the meeting at 6:01 P.M. Arlene Schafer Secretary Bob Ooten President