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Minutes - Board - 2022-03-28COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MARCH 28, 2022 NOTE: THIS HYBRID IN -PERSON AND TELECONFERENCED MEETING WAS CONDUCTED UTILIZING ELECTRONIC MEANS CONSISTENT WITH STATE OF CALIFORNIA ASSEMBLY BILL 361(GOV. CODE 54953(B)(3)). Members present Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Alan Burns (District Counsel), Kaitlin Tran (Finance Manager), Marc Davis (District Treasurer), Mark Esquer (District Engineer), Gina Terraneo (Management Analyst II) Others present Mike Carey, CR&R Meeting called to order at 4:31 P.M. A. OPENING ITEMS Procedural: 1. Call to Order — President Ooten President Ooten called the meeting to order at 4:31 P.M. Procedural: 2. Pledge of Allegiance — President Ooten President Ooten led the Pledge of Allegiance. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Procedural: 3. Invocation — Vice President Scheafer Vice President Scheafer led the Invocation. Procedural: 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) District Clerk and Public Information Officer, Noelani Middenway, conducted roll call and noted that President Ooten, Vice President Scheafer, Secretary Schafer, Director Perry, and Director Eckles were present. Procedural: 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Ms. Middenway stated that the District did not receive any late communications. Procedural: 6. Ceremonial Matters and Presentations. None. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ooten opened public comments. Hearing none, he closed public comments. C. ADJOURN TO CLOSED SESSION Discussion: 1. Performance evaluation (Gov. Code §54957) Title: General Manager District Counsel, Alan Burns, stated the titles of closed session Items C1 and C2. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 President Ooten adjourned to closed session at 4:33 p.m. Discussion: 2. Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Ooten Unrepresented party: General Manager District Counsel, Alan Burns, stated the titles of closed session Items C1 and C2. President Ooten adjourned to closed session at 4:33 p.m. D. RECONVENE TO OPEN SESSION 1. Announce any reportable action taken President Ooten reconvened the meeting from closed session at 5:06 p.m. and noted that no reportable action was taken during the closed session. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of February 8, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the City/Districts Liaison Committee Meeting Minutes of February 11, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 4. Approve the Board of Directors Regular Meeting Minutes of February 28, 2022 COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 5. Adopt Warrant Resolution No. CMSD 2022-09 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2022-09 approving District warrants for the month of February in the amount of $257,411.00. Action (Consent): 6. 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): 7. Approve Payroll Transparency Disclosure for February 2022 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 8. Accept the occupancy count as presented as 23,070 and direct staff to prepare a warrant to CR&R Environmental Services for $239,085.95 for February 2022 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,070 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,085.95 to be ratified in the March 2022 warrant list. Action (Consent): 9. Approve the Investment Report for the Month of January 2022 Recommendation: That the Board of Directors approve the Investment Report for the month of January 2022. Action (Consent): 10. Approve the Investment Report for the Month of February 2022. Recommendation: That the Board of Directors approve the Investment Report for the month of February 2022. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Action (Consent): 11. Receive and File 2021 Annual Health Benefits Broker Fees Report Recommendation: That the Board of Directors approve and file the report. Action (Consent): 12. Receive and File the February 2022 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 13. Receive and File the February 2022 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 14. Approve the preparation of a warrant to CR Transfer in the amount of $166,799.24 for February 2022 recycling and disposal services in the March 2022 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $166,799.24 for February 2022 recycling and disposal services to be ratified in the March 2022 warrant register. Action (Consent): 15. Receive and File the February 2022 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Motion: To approve the Consent Calendar as presented. Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. F. PUBLIC HEARINGS None at this time. G. GENERAL MANAGER REPORTS COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Action: 1. Consider Appointing One Board Member to Serve on CMSD's Negotiation Team During Contract Negotiations with CR&R Environmental Services Recommendation: That the Board of Directors appoint one board member to serve on CMSD's negotiation team during contract negotiations with CR&R Environmental Services. President Ooten introduced the item. Director Perry noted that he requested this agenda item and recommended for Vice President Mike Scheafer to be appointed to serve on the District's negotiation team. Discussion followed regarding the proposed appointment. Vice President Scheafer asked about the timeline of the District's negotiation process. General Manager, Scott Carroll, stated that the District and CR&R have a few more meetings. He noted that he will provide him with an update on the negotiation process prior to joining the meetings. Vice President Scheafer requested to meet with Mr. Carroll to receive more information about the negotiation process. Director Eckles expressed support for Vice President Scheafer being appointed to the negotiation team. He asked Mr. Carroll if it is valuable to have a Board member attend the meetings. Mr. Carroll expressed support for having a Board member participate in the process. Motion: To appoint Board Vice President Mike Scheafer to serve on CMSD's negotiation team during contract negotiations with CR&R Environmental Services. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer There was no further discussion. H. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status Recommendation: That the Board of Directors receive and file the Capital Improvement Projects Status. President Ooten introduced the item. District Engineer, Mark Esquer, provided an update on President Pump Station. He shared that the District has five new projects in process. Director Eckles asked if the current increases in construction and labor costs are affecting the District's Capital Improvement Projects (CIPs). Mr. Esquer shared that he will be reviewing the remaining capital outlay for the current fiscal year with the District's General Manager and Finance Manager. He stated that some CIPs will be delayed until next fiscal year. Director Eckles asked about the average length of CIPs. Mr. Esquer stated that the average CIP takes about three to four months. Discussion followed regarding escalation clauses. Director Perry inquired about the Gisler Force Main Replacement project. Mr. Esquer shared that District staff and President Ooten are meeting with Orange County Sanitation District (OCSD) staff to discuss the Gisler Force Main Replacement project. He noted that he will provide the Board with an update next month. President Ooten inquired about the Ductile Iron Pipe Rehabilitation Phase I project. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Mr. Esquer stated that the project was completed in one month. He noted that there was an elective change order for a manhole frame and cover for which the District hired a separate contractor to perform the work. There was no further discussion, and the report was received. Action: 2. Consider Rejecting the Nu Line Technologies, LLC Bid as Non - Responsive and Awarding a Contract to Nor -Cal Pipeline Services for the Project 328 Ductile Iron Pipe (DIP) Rehabilitation Phase III Project Recommendation: That the Board of Directors: 1. Reject the Nu Line Technologies, LLC bid as non -responsive. 2. Award a contract to the lowest responsive and responsible bidder, Nor -Cal Pipeline Services in the amount of $543,273. 3. Approve a 10% contingency in the amount of $54,327. President Ooten introduced the item. Director Eckles inquired about the two bid amounts submitted by Nu Line Technologies, LLC. Mr. Esquer stated that Nu Line Technologies, LLC confirmed its lower bid amount. He shared that, due to their inconsistent paperwork, District staff recommends rejecting both bid amounts submitted by Nu Line. Director Eckles stated that the issue appears to be a clerical error and asked if there is another legal reason for rejecting Nu Line's submittal. District Counsel, Alan Burns, stated that the District can legally reject a bid if it presents an unfair advantage to the bidder. He noted that Nu Line's bid is being rejected as non -responsive. Discussion followed regarding the bidding process. Motion: To reject the Nu Line Technologies, LLC bid as non -responsive. Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 5-0 COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Motion: To award a contract to the lowest responsive and responsible bidder, Nor -Cal Pipeline Services in the amount of $543,273, and approve a 10% contingency in the amount of $54,327. 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 There was no further discussion. I. TREASURER'S REPORTS None at this time. T. ATTORNEY'S REPORTS Action: 1. Consider Adopting Resolution No. 2022-957 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2022-957 Authorizing Remote Meetings. President Ooten introduced the item. Motion: To adopt Resolution No. 2022-957 authorizing remote meetings. 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. Action: 2. Consider Approving General Manager, Scott Carroll's Employee Agreement Including a 5% Merit Increase after receiving his performance evaluation Recommendation: That the Board of Directors consider approving General Manager, Scott Carroll's, Employee Agreement including a 5% merit increase after receiving his performance evaluation. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 President Ooten introduced the item. Mr. Burns provided an oral report and noted that the agreement provides a 5% cost -of -living or merit adjustment. He shared that the recommended cost -of -living adjustment was 7.1%, but the General Manager only requested a 5% increase. He stated that the General Manager's new yearly salary is $207,982.07, which equates to a $9,993 increase compared to last year's salary. He added that the General Manager's contract includes a severance package that is applicable upon termination or reorganization. He noted that the pay and benefits will be made retroactive to January 3, 2022, as is consistent with past practice. Secretary Schafer confirmed that the pay increase will be applied retroactively. Mr. Burns stated that District resident, Jim Mosher, noted that there were several typos in the staff report, which have been fixed. Director Eckles requested for Mr. Burns to elaborate on Mr. Mosher's written comments. Mr. Burns stated that the law accommodates for the negotiation process by allowing for retroactive pay from when the previous contract has expired. President Ooten asked about the retroactive date. Mr. Burns stated that the retroactive date is the General Manager's work anniversary date. Director Eckles confirmed that the General Manager will be receiving a S% merit increase and no cost -of -living adjustment (COLA), which could have been 7%. Director Perry stated that the 5% merit increase is not an annual pay increase. He commented that the 7% COLA pay increase would be a better option. Mr. Carroll stated that he is satisfied with a 5% merit increase. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Motion: To approve General Manager, Scott Carroll's, employee agreement, which includes a 5% merit increase, after receiving his performance evaluation. 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 Mr. Carroll thanked the Board for their approval. Mr. Mosher thanked District staff for considering his comments. He expressed support for the contract and commended the District on its practice of providing performance goals for the General Manager and making them available to the public. There was no further discussion. K. 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 (OCSD) - (President Ooten) Director Perry noted that he provided a written report of the meetings he attended. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) President Ooten stated he and Director Perry were unable to attend the March SARFPA meeting. Director Perry added that he will provide an update in two months. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer shared that ISDOC had a Board meeting on February 1, 2022. She noted that ISDOC meetings are held remotely via Zoom. She announced that the California Special Districts Association (CSDA) Chief Executive Officer (CEO), Neil McCormick, will be ISDOC-s guest speaker for their next quarterly meeting on April 28, 2022. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared that she attended CSDA Finance Committee and Membership Committee meetings via Zoom. She provided the dates of a few upcoming conferences. She announced that Vice President Scheafer was elected as President for the Special District Risk Management Authority (SDRMA) and that she was elected to serve on CSDXs Alliance Committee. She added that she will be going to Sacramento next month to attend CSDXs Board meeting and Finance Committee meeting. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer shared that SDRMA had their Safety Claims Education Day in Sacramento last week. He discussed property liability rates and cyber liability coverage. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Ooten shared that he submitted a written report of his meetings. There was no further discussion. L. OLD BUSINESS None at this time. M. NEW BUSINESS COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Action: 1. Consider Submitting Award Nominations to California Special Districts Association (CSDA) Recommendation: That the Board of Directors considers nominating Scott Carroll for General Manager of the Year and Vice President Mike Scheafer for Board Member of the Year. Mr. Carroll stated that the Board discussed this item previously but needs to take formal action. Secretary Schafer stated that the District annually submits nominations for CSDA awards. She noted that CSDXs Professional Development Committee reviews all nominations. Director Eckles clarified that the District is nominating Mr. Carroll for General Manager of the Year and Vice President Scheafer as Board Member of the Year. Motion: To nominate Scott Carroll for General Manager of the Year and Vice President Mike Scheafer for Board Member of the Year. 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. N. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Eckles thanked Mr. Carroll for a fair negotiation of his contract. He also thanked District staff for their hard work. There was no further discussion. O. CLOSING ITEMS COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 28, 2022 Procedural: 1. Adjourn - The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, April 2S, 2022. President Ooten adjourned the meeting at 5:45 p.m. t. 1 { vr �. Arlene Schafer Secretary fl&o Bob Ooten President