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Minutes - Board - 2022-12-13COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION DECEMBER 13, 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), Alan Burns (District Counsel), Dyana Bojarski (Administrative Services Manager), Kaitlin Tran (Finance Manager), Nabila Guzman (Management Analyst I), David Griffin (Interim Code Enforcement Officer) Others present Jim Mosher, District resident Julie Barreda, CR&R Mike Balliet, Michael Balliet Consulting Mike Carey, CR&R Meeting called to order at 8:02 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 DECEMBER 13, 2022 President Ooten called the meeting to order at 8:02 A.M. District Clerk & Public Information Officer, Noelani Middenway, 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 the 2022 Certified Election Results Recommendation: That the Board of Directors receive and file the November 8, 2022 certified election results. Ms. Middenway presented the election results. There was no further discussion, and the report was received. Procedural: 2. Administration of the Oath of Office to Directors Schafer, Ooten, and Scheafer Ms. Middenway administered the oath of office to Directors Schafer, Ooten, and Scheafer. President Ooten, Vice President Scheafer, and Secretary Schafer recited the oath of office. There was no further discussion. Action, Receive and File: 3. Receive and File November 2022 Code Enforcement Officer Report Recommendation: That the Board of Directors receive and file this report. Interim Code Enforcement Officer, David Griffin, provided report details. He COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD DECEMBER 13, 2022 stated that there was one act of scavenging detected in November 2022 and 60 cases of trash carts in public view reported. Discussion followed regarding repeat offenders of trash carts in public view. There was no further discussion, and the report was received. Action, Receive and File: 4. Receive and File Waste Composition Studies #4 from Michael Balliet Consulting Recommendation: That the Board of Directors provide comments regarding the results of the Solid Waste Characterization Studies conducted on November 15, 2022. Management Analyst I, Nabila Guzman, stated that Mike Balliet of Michael Balliet Consulting completed waste composition study #4. Mr. Balliet described the area of study. He reported a 10% contamination level for the mixed waste route collected on East 15tt'to East 19th Streets. He shared that the easily recyclable materials are removed from the collection loads to determine the potential weight and volume of a blue recycling container. He stated that the second sort of the study had a 14.41% contamination level for the mixed waste route collected on West 15t" to 19tt' Streets. He noted that this sort had more bagged food waste. Discussion followed regarding bagged food waste. Secretary Schafer suggested including an article regarding compostable bags in the next issue of the District's newsletter. Discussion followed regarding recyclable materials that would be placed in a blue recycling cart. President Ooten inquired about the District's public outreach efforts. Management Analyst II, Gina Terraneo, confirmed that the District has issued mailers, door hangers, newsletter articles, and advertised on social media. Secretary Schafer recommended informing local gardeners to place yard COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD DECEMBER 13, 2022 waste in the Organics Recycling Carts. Director Perry asked if a similar audit was performed in Newport Beach. Mr. Balliet stated that he has not done this type of audit for Newport Beach. He proposed that the District's Organics Recycling Program is likely performing better since it has been in effect longer than the City of Newport Beach's program. Vice President Scheafer asked if air -filled bags are more recyclable than packing peanuts. Mr. Balliet stated that they are theoretically more recyclable than Styrofoam. There was no further discussion, and the report was received. Action: 5. Third Review of Draft Agreement Amendment with CR&R Incorporated Recommendation: That the Board of Directors review the second draft amendment and provide staff with feedback. Ms. Guzman presented the draft agreement amendment with CR&R and noted that the amendment changes are listed in the staff report. Director Eckles inquired about the amendment's liquidated damages policy. Mr. Carroll confirmed that the liquidated damages policy is activated after 23 missed trash collections per month. Director Eckles asked if the Consumer Price Index (CPI) increase is capped at 5%. Ms. Guzman confirmed that CPI increases are limited to 5% and noted that the language in the amendment regarding CPI increases has been updated with more information. Director Eckles asked if CR&R's profitability is judged companywide, or only in terms of the services provided to the District. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD DECEMBER 13, 2022 Ms. Guzman stated that their profitability will pertain to District -related business. Discussion followed regarding the District's benchmarks for assessing CR&R's profitability. District Counsel, Alan Burns, recommended providing CR&R with more guidance as to what will be required to earn a CPI increase (e.g. profit margins). Director Eckles expressed agreement with Mr. Burn's recommendation. President Ooten inquired about CR&R's proposed rates. CR&R representative, Julie Barreda, stated that costs may fluctuate due to landfill disposal costs. President Ooten inquired about occupancy fees. Ms. Guzman explained the projected increases in occupancy. Ms. Barreda discussed the differences between recyclables and items made of recycled materials. Discussion followed regarding how to recycle Styrofoam. President Ooten confirmed that the amendment contains the "most favorable organics rate" clause. Director Eckles asked if these minor changes will be reflected in a new contract or a contract amendment. Mr. Burns stated that these changes will be an amendment to the contract. Director Eckles requested a red -line version of the amendment before approving the final amendment. Mr. Carroll stated that District staff will provide strikethrough and clean versions of the amendment at the December Board meeting. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD DECEMBER 13, 2022 President Ooten asked when this amendment will go into effect. Ms. Barreda stated that it would go into effect after Board approval. Mr. Burns stated that the District must update their Operations Code prior to approving this item. President Ooten inquired about the rollout of the three -cart system. Ms. Guzman stated that the three -cart rollout will occur during the summer of 2024. Discussion followed regarding the three -cart rollout. District resident, Jim Mosher, commented on trash cart labels and how they will be used to inform District customers about how to properly sort their waste. He discussed the differences between the City of Newport Beach's recycling program and the District's three -cart program. He suggested utilizing changeable rather than permanent labeling in case the program is updated. Ms. Barreda stated that CR&R will not be using embossed lids. She noted that the cart lid labels will contain pictures, text in English and Spanish, and information regarding household hazardous waste. She added that there will be a cart label instructing customers to break down their cardboard. Vice President Scheafer asked if this item will be presented at the December Board meeting for final approval. Mr. Carroll stated that it will be presented at the January Board meeting after updating the Operations Code. There was no further discussion. Action: 6. Consider Adopting Resolution No. 2022-976 Authorizing Remote Meetings Recommendation: That the Board of Directors adopt Resolution No. 2022-976 authorizing remote meetings. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD DECEMBER 13, 2022 President Ooten introduced the item. Motion: To adopt Resolution No. 2022-976 authorizing remote meetings. 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. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments Director Eckles thanked District staff for their work on contract negotiations with CR&R. He wished everyone a Merry Christmas and Happy New Year. There were no additional comments. Procedural: 2. Adjournment President Ooten adjourned the meeting at 8:45 A.M. AIP Art Perry Secretary Mike Scheafer President