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Minutes - Board - 2022-05-23COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MAY 23, 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), Kaitlin Tran (Finance Manager), Mark Esquer (District Engineer), Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II), Marc Davis (District Treasurer), Alan Burns (District Counsel), Autumn Alvarez (Accounting Clerk) Others present Mike Carey, CR&R Mark Foxovich, Member of the public Judith Gielow, District resident and Citizens Advisory Committee member Elodie Katz, District resident and Citizens Advisory Committee member Sue Lester, District resident and Citizens Advisory Committee member Michael Tou, District resident and Citizens Advisory Committee member Chad Towersey, District resident Meeting called to order at 4:30 P.M. A. OPENING ITEMS COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Procedural: 1. Call to Order - President Ooten President Ooten called the meeting to order at 4:30 P.M. Procedural: 2. Pledge of Allegiance - President Ooten President Ooten led the Pledge of Allegiance. 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. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 District resident and Citizens Advisory Committee (CAC) member, Sue Lester, stated that she is submitting public comments as a District customer and not on behalf of the CAC. She discussed the importance of having term limits for elected officials and encouraged the Board to change their bylaws to include term limits. She also encouraged the Board to support bilingual pay. She shared that, based on her work experience in human resources, the average rate for translation services is $30 to $70 dollars per hour. She noted that most organizations provide information in English and Spanish. She stated that other local agencies' bilingual pay rate is 2-5% of an employee's base salary. She added that bilingual pay would benefit the District and save resources. Hearing no additional comments, 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. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of April 12, 2022 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 April 25, 2022 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 4. Adopt Warrant Resolution No. CMSD 2022-11 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2022-11 approving District warrants for the month of April in the amount of $448,990.52. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Action pp p (Consent). S. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 6. Approve Payroll Transparency Disclosure for April 2022 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the amount of $197,408.23 for April 2022 recycling and disposal services in the May 2022 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $197,408.23 for April 2022 recycling and disposal services to be ratified in the May 2022 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 23,079 and direct staff to prepare a warrant to CR&R Environmental Services for $239,179.22 for April 2022 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,079 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,179.22 to be ratified in the May 2022 warrant list. Action (Consent): 9. Receive and File the April 2022 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the April 2022 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Approve the Investment Report for the Month of April 2022 Recommendation: That the Board of Directors approve the Investment Report for the month of April 2022. COSTA MESA SANITARY DISTRICT PAGE S MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Action (Consent): 12. Adopt Resolution No. 2022-959 Ordering that Publication of Ordinance No.133 has Occurred Recommendation: That the Board of Directors adopt Resolution No. 2022-959 Ordering that Publication of Ordinance No. 133 has occurred. Action (Consent): 13. Adopt Resolution No. 2022-960 Ordering that Publication of Ordinance No. 134 has Occurred. Recommendation: That the Board of Directors adopt Resolution No. 2022-960 Ordering that Publication of Ordinance No. 134 has occurred. Action (Consent): 14. Receive and File April 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 Arlene Schafer, 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. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS Action: 1. Determine Whether the Owner is Responsible for Solid Waste and Wastewater Services at 1815 % Tustin Ave, Costa Mesa; Whether the Owner Should Pay the Annual Charges for FY 18-19, FY 19-20, and FY 20-21 Even Though the Charges Were Not Placed on Their Assessment. Recommendation: That the Board of Directors deny the property owner's request to waive fees totaling $729.60 for services already rendered. President Ooten introduced the item. General Manager, Scott Carroll, introduced Accounting Clerk, Autumn Alvarez. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 239 2022 Ms. Alvarez presented report details. She described the research regarding the property in question. She stated that an invoice was created and sent along with a District letter and other supporting documents to the property owner. She shared that, after receiving the charges, the property owner requested a hearing to waive the fees. She noted that he is in attendance via Zoom. District property owner, Chad Towersey, shared his history as it related to Costa Mesa. He noted that he was surprised to receive a bill for past charges during the COVID-19 pandemic. He stated that he was unable to pay the bill when he received it and asked the Board to waive the charges. Director Eckles asked how long Mr. Towersey has owned the property and how many tenants reside in his additional unit. Mr. Towersey confirmed that he has owned the property for seven years and stated that his detached property is available for renting. Director Eckles asked if information about sewer and trash charges for the additional unit were included in his real estate documents when he purchased the property. Mr. Towersey stated that he was not aware of these charges. He noted that he may have overlooked them when signing his mortgage documents. Director Eckles asked how the District became aware of this issue. Mr. Carroll stated that the City of Costa Mesa is responsible for notifying the District of properties with multiple units. He added that CR&R noticed additional trash carts at 1815 % Tustin Avenue, which indicated that there were multiple units onsite. Director Eckles inquired about the additional unit at 1815 Y2 Tustin Avenue. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Ms. Alvarez stated that the additional unit has been there since the property was originally built and noted that the unit has never been charged for trash and sewer services. Director Eckles asked if there was anything that the property owner should have done to prevent this issue. Ms. Alvarez stated that the property owner could have compared the District's solid waste and wastewater rates to his property tax bill to determine if he was being charged the correct amounts. She confirmed that the District is charging the property owner for services rendered for the past three years plus the current year. Mr. Carroll stated that, as a property owner, he would be surprised to receive this notice. He added that the District offers its customers a payment plan to help pay large bills without any accrued interest. Director Eckles inquired about the frequency of the District back billing a customer for services. Mr. Carroll stated that this issue does not happen often. Director Perry described the District's past practice and policy on this issue. Mr. Carroll stated that District staff recommends denying his request to waive the fees. Director Eckles stated that the property owner is not at fault for the issue. He recommended to uphold the appeal and waive the fees. Motion: To approve the property owner's request to waive fees totaling $729.60 for services already rendered. Motion by Brett Eckles, second by Bob Ooten. Vice President Scheafer requested to discuss the item further. He discussed the alternative actions included in the staff report and asked if the property owner offered to pay half of the fees. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Mr. Carroll stated that the District is offering the property owner to pay only half of the fees as an alternative action. He noted that the property owner did not specifically request that option. District Counsel, Alan Burns, discussed the implications of the Board's decision on back billing customers for services. Ms. Lester commented that the Board's decision will set a precedent on this issue. She suggested that the District updates its billing methods so that property owners are better informed of their charges. Director Perry expressed support for the payment plan option. He noted that the rent money collected from 1815 1/2 Tustin Avenue could help with paying the charges. He recommended to deny the property owner's request to waive the fees. Mr. Towersey stated that the Board's decision cannot be based on his ability to collect rent money. He added that this issue was only discovered because he complained to the District about his trash service. President Ooten noted that Mr. Towersey was speaking out of turn. He stated that there is a substitute motion on the floor. Mr. Burns stated that all comments are to be submitted to the President, who will recognize speakers throughout the meeting. Motion: To deny the property owner's request to waive fees totaling $729.60 for services already rendered. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten No: Brett Eckles There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Action: 2. Consider Approving New Job Classification and Hiring Two New Employees in the Wastewater Collections Department, and Ordering One New Combination Sewer Cleaning Unit and One Pickup Truck Recommendation: That the Board of Directors: 1. Approve the job description and salary range for the Electrical Instrumentation Technician position; 2. Approve Hiring two new employees that include one Electrical Instrumentation Technician and one Wastewater Maintenance Worker II; 3. Direct staff to place the order for one new combination sewer cleaning unit and one pickup truck; and 4. Approve appropriating $878,500 to the salaries and benefits accounts and capital outlay accounts in FY 2022-23. President Ooten introduced the item. Mr. Carroll provided report details. He stated that District staff is recommending that the Board approves the job descriptions and salary ranges for two new positions, hiring two new employees, placing an order for a new combination sewer cleaning unit and pickup truck, and appropriating $878,500 to the salaries and benefits account and capital outlay account for Fiscal Year 2022-23. He noted that it will take about a year for a new combination sewer cleaning unit to be delivered. Director Perry inquired about staff duties while waiting for the new combination sewer cleaning unit to be delivered. Mr. Carroll stated that, in the meantime, the new staff members can inspect manholes and televise sewer lines and wet wells. Director Perry inquired about the timeline for ordering the new pickup truck. Mr. Carroll stated that the District can wait a few months to order the pickup truck. He noted that the additional pickup truck will be necessary to accommodate for the additional staff members. Director Perry asked if it will be difficult to hire an electrician. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Mr. Carroll stated that it could be challenging to find an electrician with the necessary wastewater skills. Discussion followed regarding using a temp agency to find new staff and the hiring timeline. Secretary Schafer expressed support for hiring the two new staff members. Discussion followed regarding the certifications needed for Wastewater positions. Director Eckles asked how the District will balance the current budget if the Board approves hiring the additional employees. Finance Manager, Kaitlin Tran, reviewed the Preliminary Amended Wastewater Fund Budget attachment of the staff report. She stated that, with the new Wastewater rates, the District will receive an additional $917,000 dollars in revenue. She provided a breakdown of how salaries and benefits are divided between the District's Solid Waste Fund and Wastewater Fund. She noted that the District's Capital Improvement Projects (CIP) budget is being reduced to balance the current budget. Discussion followed regarding the expense of the new pickup truck and proposed cost -of -living -adjustments (COLA) for Fiscal Year 2022-23. Director Eckles discussed how these staffing and equipment additions will help the District maintain an effective sewer system and prevent sanitary sewer overflows (SSOs). Motion: To approve the job description and salary range for the Electrical Instrumentation Technician position, approve hiring two new employees that include one Electrical Instrumentation Technician and one Wastewater Maintenance Worker II, direct staff to place the order for one new combination sewer cleaning unit and one pickup truck, and approve appropriating $878,500 to the salaries and benefits accounts and capital outlay accounts in the FY 2022-23. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Motion by Brett Eckles, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten, Brett Eckles There was no further discussion. Action: 3. Consider Approving Five Percent (5%) Cost of Living Adjustment for CMSD Employees Recommendation: That the Board of Directors: 1. Approve a five -percent (5%) Cost of Living Adjustment for all CMSD employees, except the General Manager; and 2. Approve appropriating $127,000 to the salaries and benefits accounts in the FY 2022-23 President Ooten introduced the item. Mr. Carroll presented report details. He provided historical data regarding District COLAs. He noted that in 2004 the District separated from the City of Costa Mesa and became eligible for COLAs starting in 2005. He shared the median salaries of other agencies. He reported that the latest Consumer Price Index (CPI) rate was 7.9%. He expressed support for a 5% COLA for District staff. Member of the public, Mark Foxovich, commented that the proposed 5% COLA is not sufficient to address inflation. He stated that year -over -year inflation on the nationwide level is at 8.3%. He noted that the CPI calculation is less accurate when the geographical unit is reduced. He added that inflation rates differ depending on people's lifestyles. He stated that, although it is noble to offer a 5% COLA, District employees deserve a COLA that is more reflective of market realities. Director Perry stated that the only other local agency that is comparable to the District is Midway City Sanitary District. He noted that he previously suggested a 3% COLA but invited other Board members to comment. Director Eckles suggested a 3.5% COLA for District employees. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 239 2022 Vice President Scheafer expressed support with Mr. Foxovich and stated that District employees deserve at least a 5% COLA. He commented that the Board needs to be more realistic about current costs and supportive of District employees. He asked why the General Manager is not included in the COLA recommendation. Ms. Lester commented that the Board should approve a 5% COLA. She encouraged the Board to not make decisions solely based on previous practices. She added that the District's budget can accommodate for a 5% COLA for all eligible staff. She stated that COLA and merit -based raises should always be discussed separately. She discussed employee retention and noted that District employees would qualify for higher pay at other local agencies. She commented that a 5% COLA for District employees is small in comparison to the CPI increase requested by CR&R in 2021. Motion: To approve a five -percent (5%) Cost of Living Adjustment for all CMSD employees, except the General Manager and approve appropriating $127,000 to the salaries and benefits accounts in the FY 2022-23. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten, Brett Eckles There was no further discussion. Action: 4. Consider Approving Agreement for Independent Audit Services Recommendation: That the Board of Directors approves awarding a contract to Nigro & Nigro, PC for independent audit services in the amount of $45,000 for the fiscal years (FYs) ending June 30, 2022, 2023 and 2024 and directs the General Manager to sign the Agreement. President Ooten introduced the item. Ms. Tran presented report details. She stated that Nigro & Nigro, PC presented the best overall proposal for independent audit services. She discussed the District's budget for audit services. Director Perry inquired about the timeline of their contract. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Mr. Carroll stated that it is a three-year contract with the option of a two- year extension. Director Eckles asked about the best value points of their proposal and what services they offered that resulted in them being rated higher than the others. Ms. Tran stated that the District received three proposals and two were rated very highly. She shared that the other proposal was better but offered at a much higher price. She stated that the rating process evaluates a firms qualifications, experience, audit approach, and engagement with other government entities. Director Eckles stated that Nigro & Nigro's price is comparable to the current market price. He suggested including the total points awarded to the bidders in the staff report for the public to review. President Ooten expressed agreement with Director Eckles' suggestion. He shared that the Orange County Sanitation District (OCSD) publishes how each firm is rated. Motion: To approve awarding a contract to Nigro & Nigro, PC for independent audit services in the amount of $45,000 for the fiscal years (FYs) ending June 30, 2022, 2023 and 2024 and direct the General Manager to sign the Agreement. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten, Brett Eckles There was no further discussion. Action: S. Approve Auditor Engagement Letter for Fiscal Year 2021-22 Audit Recommendation: That the Board of Directors accepts the auditor engagement letter for Fiscal Year 2021-22 audit and authorize President Ooten to sign the engagement letter on behalf of CMSD. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 President Ooten introduced the item. Ms. Tran presented report details. Motion: To accept the auditor engagement letter for the Fiscal Year 2021-22 audit and authorize President Ooten to sign the engagement letter on behalf of CMSD. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten, Brett Eckles There was no further discussion. Action: 6. Consider Approving sending Mark Esquer, District Engineer, Steve Cano, Wastewater Maintenance Superintendent and Alex Arreola, Wastewater Maintenance Worker II to the 37th Annual Tri-State Seminar in Las Vegas, Nevada Recommendation: That the Board of Directors approve sending Mark Esquer, District Engineer, Steve Cano, Wastewater Superintendent and Alex Arreola, Wastewater Maintenance Worker II to the 37th Annual Tri-State Seminar in Las Vegas, Nevada on August 8-11, 2022. President Ooten introduced the report. Secretary Schafer requested for the District staff members to present a summary report of the conference to the Board after attending. Director Perry asked District Engineer, Mark Esquer, if he has attended the Tri-State Seminar. Mr. Esquer stated that he attended this event about 10 years ago. He shared that conference attendees get to meet with vendors and participate in technical sessions. President Ooten stated that the event offers a substantial number of programs. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Motion: To approve sending Mark Esquer (District Engineer), Steve Cano (Wastewater Superintendent) and Alex Arreola (Wastewater Maintenance Worker II) to the 37th Annual Tri-State Seminar in Las Vegas, Nevada on August 8-11, 2022. Motion by Arlene Schafer, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten, Brett Eckles There was no further discussion. Action: 7. Consider Approving Contribution Program Application for Concerts in Park Recommendation: That the Board of Directors: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. President Ooten introduced the item. Director Perry asked if the Board has approved a $2,500 contribution for Concerts in the Park in the past. He suggested offering a $1,500 contribution. Director Eckles asked if the $2,500 contribution is included in the budget. He inquired about the District's participation at Concerts in the Park. Management Analyst II, Gina Terraneo, stated that the District hosts a community booth at the event and provides a children's activity related to solid waste and sustainable giveaway items. She shared that the District has a wastewater activity for kids to build their own sewer system. She noted that these events are great opportunities to promote District programs. Director Eckles inquired about the contribution amounts. COSTA MESA SANITARY DISTRICT PAGE 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Ms. Terraneo stated that a contribution of $2,500 guarantees a community booth at the event. Director Eckles expressed concern over the contribution amount. Vice President Scheafer requested for District staff to provide information about the Battery Recycling Program at the event. Secretary Schafer expressed support for a $2,500 contribution. She commented that the community booth helps increase District visibility and connect with District customers. Discussion followed regarding the items supplied at the event and the cost of additional giveaway items. Motion: To approve a contribution of $1,500 to the Costa Mesa Foundation for the Concerts in the Park series of events and make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. Motion by Brett Eckles. Motion failed due to lack of a second. Motion: To approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for Concerts in the Park series of events and make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Mike Scheafer, Bob Ooten No: Brett Eckles COSTA MESA SANITARY DISTRICT PAGE 17 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 There was no further discussion. F. 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 Status Report. President Ooten introduced the item. Mr. Esquer presented report details and shared expected project completion dates. Director Perry asked if all grade five manholes have been rehabilitated. Mr. Esquer confirmed that all grade five manholes have been fixed. He added that it will take about 3-5 years to address the grade four manholes. There was no further discussion, and the report was received. Action: 2. Consider Approving a Budget Adjustment to 335 Sewer Siphon Lining Project from Budget 322 Iowa Forcemain, Awarding a Contract to Insituform Technologies, LLC. In the Amount of $226,843 and Approving a 10% Contingency in the Amount of $22,684. Recommendation: That the Board of Directors: 1. Approve a Budget Adjustment to Transfer $51,000 from 322 Iowa Forcemain Replacement Project to the 335 Phase I Siphon Lining Project; and 2. Award a contract to the lowest responsive and responsible bidder, Insituform Technologies, LLC. in the amount of $226,843; and 3. Approve a 10% contingency in the amount of $22,684. Mr. Esquer presented District staffs recommendations for this item. Motion: To approve a budget adjustment to transfer $51,000 from 322 Iowa Forcemain Replacement Project to the 335 Phase I Siphon Lining Project, COSTA MESA SANITARY DISTRICT PAGE 18 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 ..........._ award a contract to the lowest responsive and responsible bidder, Insituform Technologies, LLC. in the amount of $226,843 and approve a 10% contingency in the amount of $22,684. 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: 3. Project 318 Presidents Pump Station Replacement: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, and Exonerate Faithful Performance Bond Recommendation: That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Mr. Esquer presented report details. Motion: To accept improvements as completed and file a Notice of Completion, 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 Brett Eckles, 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. G. TREASURER'S REPORTS None at this time. H. ATTORNEYS REPORTS COSTA MESA SANITARY DISTRICT PAGE 19 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Action: 1. Consider Adopting Resolution No. 2022-961 Authorizing Remote Meetings Recommendation: That the Board of Directors Adopt Resolution No. 2022-961 Authorizing Remote Meetings. President Ooten introduced the item. Motion: To adopt Resolution No. 2022-961 authorizing remote meetings. 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 There was no further discussion. I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day's service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ooten) President Ooten shared that OCSD's Board meeting is taking place next week. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry stated that there was no SARFPA meeting this month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) None. 4. California Special Districts Association (CSDA) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT PAGE 20 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Secretary Schafer stated that she attended a CSDA Board meeting and the Legislative Days conference. S. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Vice President Scheafer stated that SDRMA's brokers were present at their Board meeting to discuss property, liability, and workers' compensation programs. He shared that he is currently in Salt Lake City for SDRMNs captive joint powers organization. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Secretary Schafer shared that she attended a Water Advisory Committee of Orange County (WACO) meeting. President Ooten shared that he also attended a WACO meeting, which discussed water agencies implementing a level two response for water conservation. Secretary Schafer shared that WACO has a projected budget of $8.5 million dollars. She discussed their public outreach efforts related to the drought. President Ooten left the meeting at 5:40 p.m. Director Perry and Vice President Scheafer shared that they also attended the WACO meeting. There was no further discussion. T. OLD BUSINESS None at this time. K. NEW BUSINESS COSTA MESA SANITARY DISTRICT PAGE 21 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Perry asked if the Board is prepared to attend the upcoming CSDA conference. He asked Mr. Carroll if he is attending the General Manager workshop. Ms. Middenway confirmed that the Board is set to attend the conference. Mr. Carroll confirmed that he will be presenting at that workshop. Director Perry inquired about the Special Districts Leadership Academy. Mr. Carroll stated that no Board members are attending the Special Districts Leadership Academy. Vice President Scheafer shared that he may be attending the Special Districts Leadership Academy on behalf of SDRMA. Secretary Schafer shared that the winners for General Manager of the Year and Board Member of the Year will be presented at the annual CSDA conference. Director Eckles thanked everyone for participating in tonight's meeting. He also thanked District staff, City of Costa Mesa staff, and the Newport -Mesa Unified School District for coordinating the upcoming Compost and Shredding Event. He shared that the Costa Mesa United Pilot Cup is taking place next week. He thanked CR&R for providing additional trash bins. He expressed support for term limits at all levels of government and requested to place that discussion on an upcoming Study Session agenda. Mr. Carroll stated that the Compost and Shredding Event takes place June 11, 2022. COSTA MESA SANITARY DISTRICT PAGE 22 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2022 Vice President Scheafer expressed support for Mr. Carroll's customer service. Director Perry asked what time District staff will be setting up for the Compost and Shredding Event. Mr. Carroll stated that setup starts at 7:00 a.m. He added that the event takes place from 8:00 a.m. to 12:00 p.m. There were no additional comments. M. ADJOURN TO CLOSED SESSION None at this time. N. RECONVENE TO OPEN SESSION None at this time. O. CLOSING ITEMS Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, June 27, 2022. Vice President Scheafer adjourned the meeting at 5:54 p.m. Arlene Schafer Secretary Bob Ooten President