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Minutes - Board - 2022-11-08COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION NOVEMBER 8, 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 Art Perry, Arlene Schafer, Bob Ooten, Brett Eckles, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk and Public Information Officer), Gina Terraneo (Management Analyst II), Mark Esquer (District Engineer), Alan Burns (District Counsel), Dyana Bojarski (Administrative Services Manager), Kaitlin Tran (Finance Manager), Nabila Guzman (Management Analyst I), Angela Colunga (Administrative Assistant I), Tanisha Tingling (Administrative Assistant II) Others present Julie Barreda, CR&R Mike Carey, CR&R Sabrina Marquez, CR&R Meeting Called to order at 8:01 A.M. A. OPENING ITEMS Procedural: 1. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 President Ooten called the meeting to order at 8:01 A.M. Management Analyst II, Gina Terraneo, noted that President Ooten, Vice President Scheafer, Secretary Schafer, Director Perry, and Director Eckles were present. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Ooten opened public comments. Hearing none, he closed public comments. C. ITEMS OF STUDY Action, Receive and File: 1. Receive and File October 2022 Code Enforcement Officer Report Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the report. General Manager, Scott Carroll, noted that the Interim Code Enforcement Officer, David Griffin, was not available to present his report. Director Eckles discussed a scavenging case on Elden Avenue. He requested more details from Mr. Griffin. Mr. Carroll stated that he will send more details in his weekly email updates to the Board. There was no further discussion, and the report was received. Action: 2. Proposed Reorganization in the Solid Waste Department Recommendation: That the Board of Directors provide feedback and then direct staff to report back in March 2023 for approval consideration. President Ooten introduced the item. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 Mr. Carroll provided report details. He discussed the proposed reorganization of the Solid Waste Department, which includes two new positions and two promotions. He noted that, due to Senate Bill (SB) 1383, the Solid Waste Department will have additional duties that require more staffing. He shared that the new intern position will be funded by the District's CalRecycle grant. He stated that the promotion from Management Analyst I to Management Analyst II includes supervisory duties. He discussed the costs for the new positions and promotions. He added that, based on the current tonnage trends, the proposed reorganization can be funded within the District's budget and through grant funds. He shared that this item will be brought back to the Board in March 2023 for approval. Secretary Schafer requested that the potential new staff members be introduced to the Board. Director Perry inquired about CR&R's cart audits. Mr. Carroll stated that the District would like to have a staff member assist CR&R with the cart audits. Director Perry asked if the two promotions require those staff members to work full-time at District Headquarters. Mr. Carroll stated that the Management Analyst II position will continue to telecommute. He shared that the new hires will be required to work full-time at District Headquarters for the first three months of employment. He reviewed the District's measures for ensuring continued customer service while telecommuting. Director Perry expressed support for the Management Analyst II to work full-time at District Headquarters. Director Eckles inquired about funding for the intern position. Mr. Carroll stated that District staff will request additional funding from the Board after its grant funding is expended. Discussion followed regarding the intern position. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 Director Eckles asked if a budget adjustment will be necessary to fund the two new positions. Mr. Carroll stated that, based on tonnage trends, a budget adjustment or rate increase may be necessary. Director Eckles inquired about ongoing costs associated with the reorganization. Mr. Carroll stated that District staff will provide that information to the Board at a future meeting. Director Eckles suggested reviewing this item next month. Mr. Carroll stated that District staff will be collecting more tonnage data in the next few months and recommends reviewing this item in 2023. Vice President Scheafer inquired about the District's facility maintenance services. Mr. Carroll stated that the District is working on contracting out that service. He noted that it has been difficult to find a replacement for the District's current Facilities Maintenance Worker. Vice President Scheafer recommended expediting the promotion of the Code Enforcement Officer to full-time status due to SB 1383 regulations. He inquired about the recruitment process for the intern position. Mr. Carroll stated that the District is currently recruiting local college students who are studying environmental science and sustainability. He shared that the District currently has about 12 applicants for the intern position. President Ooten expressed support for the proposed reorganization. He inquired about the District's budget for the intern position. Mr. Carroll stated that the intern position is limited to 1,000 hours per year. He added that if the position is an administrative asset, then the District will recommend making it a permanent part-time position. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 President Ooten asked if the District's CalRecycle grant can help fund other positions. Mr. Carroll stated that an amendment would be required to justify expenditure changes. Discussion followed regarding additional grant funding for a full-time SB 1383 specialist. Director Perry inquired about the deadline for expending grant funds. Mr. Carroll stated that grant funding must be used within two years. President Ooten expressed support for the proposed reorganization and discussed the District's budgetary savings and organic tonnage decreases due to drought -tolerant landscaping. There was no further discussion. Action: 3. Proposed SB 1383 Compliant CMSD Rate Recommendation: That the Board of Directors provides feedback to staff. President Ooten introduced the item. Mr. Carroll presented report details. He reviewed tonnage and occupancy rates. He discussed the proposed rate for CR&R's new agreement, which is based on historical tonnage rates and operational costs. He provided a breakdown of the proposed monthly rate of $24.16 for SB 1383-compliant services. Director Eckles inquired about a comparison of current tonnage -based rates and the proposed flat rate. Mr. Carroll stated that District staff will provide that information to the Board. President Ooten stated that the flat rate calculations are based on an average yearly rate of 44,000 tons. He noted that the flat rate will result in about a COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 $700,000 difference in cost compared to tonnage -based rates. Director Eckles asked how many other agencies utilize tonnage -based rates. Mr. Carroll stated that the District is the only local agency that is utilizing tonnage -based rates rather than a flat rate. Director Eckles asked how the proposed flat rate compares to other local agencies. Mr. Carroll assured the Board that the rate is very competitive. Discussion followed regarding the timeline of implementing the new rate. President Ooten inquired about the two guaranteed rates in CR&R's current contract. Mr. Carroll stated that the proposed flat rate will replace the tonnage -based rates. He noted that the guaranteed lowest organic tonnage rate (in CMSD's current contract) is calculated into the proposed flat rate. Discussion followed regarding CR&R's net -to -hauler rate. President Ooten requested more information regarding the proposed flat rate. He discussed organic tonnage decreases. Director Perry stated that the cost of additional recycling trucks is included in the flat rate. Director Eckles asked if the flat rate is also a fixed rate barring any cost -of - living adjustments (COLA). CR&R representative, Julie Barreda, confirmed that it is a fixed rate barring any COLA and County of Orange disposal rate increases. She confirmed that the proposed monthly rate of $24.16 includes the cost of additional recycling trucks. President Ooten discussed the Regional Housing Needs Allocation (RHNA) projections for Costa Mesa. He stated that their projections could result in a COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 50% increase in occupancy for the District. Discussion followed regarding cost increases based on RHNA allocations. Vice President Scheafer stated that the RHNA allocations will result in more multi -family properties than single-family. President Ooten stated that occupancy rate increases will increase CR&R's service costs. Ms. Barreda stated that the property owner decides if their accessory dwelling unit (ADU) receives separate trash service. President Ooten asked how CR&R charges ADUs. Ms. Barreda stated that CR&R charges based on parcel number. Vice President Scheafer confirmed that property owners have the discretion to reassign parcel numbers for ADUs. Director Eckles requested to omit tonnage data collected during the COVID- 19 pandemic and to include residential growth projections. Director Perry shared that he attended the recent Water Advisory Committee of Orange County (WACO) meeting, which discussed the state's decision to rescind its housing requirements. Vice President Scheafer stated that the California Department of Housing and Community Development (HCD) may issue new policy that will affect RHNA projections. Mr. Carroll stated that District staff will provide more detailed information regarding the proposed flat rate. Vice President Scheafer requested to include a 5% COLA in the flat rate calculations. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 Action, Receive and File: 4.2022 Missed Trash Pick -Up (January — October) Recommendation: That the Board of Directors receive and file this report. President Ooten introduced the item. Mr. Carroll presented report details. He noted that there were 81 missed trash complaints for October 2022. He added that missed trash complaints may have increased due to CR&R personnel issues for the months of September and October. Director Eckles asked if 81 missed collections would trigger CR&R's liquidated damages policy under the proposed agreement. Ms. Barreda stated that 24 missed trash pickups per week would initiate liquidated damages. President Ooten stated that the Board requested pre-COVID-19 pandemic data for missed trash complaints. Mr. Carroll stated that 2017-2018 data was emailed to the Board. Ms. Barreda discussed CR&R personnel changes and shared that two new trash trucks have been added to the District's fleet. Mr. Carroll noted that 81 missed collections is less than 0.05% of the total population served. He assured the Board that CR&R is working on reducing the current rate of missed trash pickups. There was no further discussion, and the report was received. Action: S. 341 Elden FM Redundancy & Elden PS Overland Emergency Bypass Pumping Improvement Implementation Plan Recommendation: That the Board of Directors discuss the project with staff, ask questions, and provide feedback regarding implementing the recommended improvements and projects. President Ooten introduced the item. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NovEMBER 8, 2022 District Engineer, Mark Esquer, presented report details. He stated that the Elden Pump Station contains the biggest risk and impact within the District's wastewater system. He discussed the project's emergency overland bypass plan regarding long-term force main outages. He noted that it will require additional equipment for pumping overland to the discharge manhole. He added that the project also consists of building a redundant force main system. He discussed the main issues and concerns, such as earthquakes, line breaks, and corrosion damage that could affect the Elden force main. He shared details regarding the District's Air Release Valve Removal Project. He discussed his concerns regarding pumping wastewater flow within 2-3 days. He reviewed the project's implementation plan and short-term (3-9 months) and long-term plans (3-5 years). He presented a map of the project area and images of flexible piping and pumping stations. He shared details of an emergency response trailer. He reviewed the proposed project budget, which ranges from $10414 million. He noted that it will cost about $1 million for the emergency bypass system and about $10.5 million for the Elden Force Main Redundancy Project. He stated that the District is exploring county and state funding to help with the project costs. He noted that there are several funding options, such as loans or selling District bonds. Secretary Schafer stated that the California Special Districts Association (CSDA) maybe able to offer the District a loan for this project. Mr. Esquer stated that he would prefer to obtain county or state funding prior to applying for a loan. Director Eckles asked if the emergency overland bypass plan will be completed in the next 6-9 months. Mr. Esquer stated that the District will move forward with that plan depending on budget availability. Director Eckles inquired about the ideal timeframe for the Elden Force Main Redundancy Project. Mr. Esquer stated that the project will take about 3 years to complete including 1 year to design the project. He noted that the short-term plan will help determine the timeline of the long-term plan. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 Discussion followed regarding the risk factors associated with each part of the project. Director Eckles expressed support for proceeding with the emergency overland bypass plan and requested to further discuss funding options. Mr. Esquer stated that District staff will review its funding options with the District Treasurer and Finance Department. Vice President Scheafer asked if additional pump stations will require similar work. Mr. Esquer confirmed that all pump stations currently have 1 discharge line that will eventually need dual force mains. He stated that, in the next 10-15 years, the District will be adding secondary force mains to their pump stations. Discussion followed regarding the status of other pump stations. Mr. Esquer stated that, other than the Elden Pump Station, most pump stations can be serviced with a Vactor combination sewer cleaner to pump wastewater. He noted that not all pump stations have the same level of risk exposure. President Ooten inquired about Elden Pump Station modifications. Mr. Esquer discussed the design and implementation phase of the project. Discussion followed regarding the short-term plan and coordinating with other agencies. President Ooten discussed the District's Wastewater rate increases and available funds for this project. Mr. Esquer confirmed that the Wastewater rate increases included funding for Wastewater projects. He noted that District policy requires the Capital Outlay Fund to have a minimum of $5 million dollars. Discussion followed regarding the Capital Outlay Fund. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 Secretary Schafer stated that, by January 2023, there will be newly elected officials to weigh in regarding funding for this project. Director Perry asked if the Board will be reviewing this item at the November Board meeting. Mr. Esquer stated that he will further discuss the District's budget options at the November Board meeting and the design work at the January Board meeting. He noted that if the emergency overland bypass plan is approved at the November Board meeting, then District staff can begin the work in December 2022 or January 2023. President Ooten discussed the effects of a significant earthquake on sewer lines and water supply. There was no further discussion. Action: 6. Consider Adopting Resolution No. 2022-974 Authorizing Remote Meetings Recommendation: That the Board of Directors adopt Resolution No. 2022-974 authorizing remote meetings. President Ooten introduced the item. Motion: To adopt Resolution No. 2022-974 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. D. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments Director Perry commented that former Board member, Dan Worthington, is interested in installing the District's American Flag Drop Box at the Mesa Verde Library. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD NOVEMBER 8, 2022 President Ooten expressed support for Mr. Worthington's suggestion. Vice President Scheafer commented that Mr. Worthington has offered to purchase the American Flag Drop Box from the District. Mr. Carroll stated that Board action is required to donate the item to Mr. Worthington. Discussion followed regarding relocating the item. There were no additional comments. Procedural: 2. Adjournment President Ooten adjourned the meeting at 9:42 A.M. Arlene Schafer Secretary i7AA I LU;� Bob Ooten President