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Minutes - Board - 2023-02-27COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 27, 2023 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, Mike Scheafer Members absent Brett Eckles Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Gina Terraneo (Management Analyst II), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Mark Esquer (District Engineer), Alan Burns (District Counsel), Marc Davis (District Treasurer), Nabila Guzman (Management Analyst I) Others present Michael Tou, Citizens Advisory Committee Member Mike Carey, CR&R Environmental Services Tom Chandler, member of the public Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Scheafer President Scheafer called the meeting to order at 4:30 P.M. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 Procedural: 2. Pledge of Allegiance — President Scheafer President Scheafer led the Pledge of Allegiance. Procedural: 3. Invocation — Vice President Schafer Vice President Schafer 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 & Public Information Officer, Noelani Middenway, conducted roll call and noted that President Scheafer, Vice President Schafer, Secretary Perry, and Vice Secretary Ooten were present while Director Eckles was not 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. None. Procedural: 6. Ceremonial Matters and Presentations. None. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Scheafer opened public comments. Hearing none, he closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 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 January 10, 2023 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 January 23, 2023 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 4. Approve the City/Districts Liaison Committee Meeting Minutes of January 27, 2023 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): S. Approve Payroll Transparency Disclosure for January 2023 Recommendation: That the Board of Directors approve and file the report. 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. Adopt Warrant Resolution No. CMSD 2023-08 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2023-08 approving District warrants for the month of January in the amount of $619,381.32. Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling and disposal services in the February 2023 warrant register COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling and disposal services to be ratified in the February 2023 warrant register. Action (Consent): 9. Accept the occupancy count as presented as 23,091 and direct staff to prepare a warrant to CR&R Environmental Services for $246,004.59 for January 2023 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,091 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for January 2023 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $246,004.59 to be ratified in the February 2023 warrant list. Action (Consent): 10. Receive and File the December 2022 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File the December 2022 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 12. Receive and File the December 2022 and January 2023 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 13. Receive and File 2022 Annual Health Benefits Broker Fees Report 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 Arlene Schafer. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: None Absent: Brett Eckles COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS Action, Receive and File: 1. Receive and File the Fiscal Year 2022-23 Mid -Year Budget Review Recommendation: That the Board of Directors receive and file the Fiscal Year 2022-23 Mid -Year Budget Review. Finance Manager, Kaitlin Tran, provided report details. She stated that this report is based on the amended budget as of December 31, 2022. She reported that 44.2% of the Solid Waste Fund has been expended and that staff anticipates a budgetary savings of $418,900. She stated that the District has received approximately $3.9 million in Solid Waste revenue. She shared that 52.4% of the Wastewater Fund has been expended and that staff anticipates a budgetary savings of $47,000. She stated that the District has received approximately $4 million in Wastewater revenue. Vice Secretary Ooten asked if the revenue amounts include the District's new Wastewater fees. Ms. Tran confirmed that the new Wastewater fees are included in the revenue data. There was no further discussion, and the report was received. Action: 2. Communications Plan for 3-Cart Rollout Recommendation: That the Board of Directors receives and files this report. Management Analyst I, Nabila Guzman, introduced the item. Management Analyst II, Gina Terraneo, provided report details. She discussed the goals, distribution strategies, budget, timeline, and performance measures of the communications plan. President Scheafer inquired about the locations of the town hall meetings. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 General Manager, Scott Carroll, stated that the town halls will be hosted in strategic locations throughout the District's service area. President Scheafer suggested distributing this information through the elected officials that represent the District's service area such as the state senator, Orange County supervisor, and assemblyperson. He noted that some customers may complain about the removal of their organics -exempt status. He expressed support for distributing information through the Newport -Mesa Unified School District (NMUSD). Secretary Perry suggested sharing this information at Costa Mesa City Council meetings. He asked if CR&R will be informing customers about the available cart sizes. CR&R representative, Mike Carey, confirmed that CR&R will be mailing surveys regarding cart sizes and level of service to trash customers. He shared that CR&R has completed its trash cart audits. Discussion followed regarding organics recycling exemptions and trash carts in public view. Vice Secretary Ooten recommended emphasizing the fact that these changes to trash service are required by state law. Secretary Perry asked if there will be exemptions for properties whose green waste is collected by landscapers. Mr. Carroll stated that there are no exemptions for residential properties. He noted that the Organics Recycling Cart can still be used to collect food waste. Vice Secretary Ooten discussed the City of Costa Mesa's ordinance regarding carts designated for collecting food waste. He recommended staying informed of the City's communications regarding organic waste. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRuARY 27, 2023 President Scheafer requested for CR&R to display the different cart lids at the future town hall meetings. Mr. Carey confirmed that CR&R can provide the lids and small -sized carts. Discussion followed regarding trash service for multi -family complexes and landscaping waste. President Scheafer expressed recognition for the communications plan and congratulated Ms. Guzman on her new job with the City of Laguna Beach. There was no further discussion, and the report was received. Action: 3. Considers Nominating Vice President Arlene Schafer as a Candidate to Serve CSDA Board of Directors Seat C - Southern Network Recommendation: That the Board of Directors approve nominating and supporting Vice President Arlene Schafer as a candidate for the California Special Districts Association Board of Directors Seat C - Southern Network. Mr. Carroll presented nomination details. Motion: To approve nominating and supporting Vice President Arlene Schafer as a candidate for the California Special Districts Association Board of Directors Seat C - Southern Network. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: None Absent: Brett Eckles Director Perry asked when the election takes place. President Scheafer stated that all votes must be submitted by July 14, 2023. There was no further discussion. F. ENGINEER'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 Action, Receive and File: 1. Receive and file the District Engineer's and Capital Improvement Status Report Recommendation: That the Board of Directors receive and file the Engineer's Report. District Engineer, Mark Esquer, presented report details. He shared that Ms. Tran and the Finance staff helped to provide a clearer financial report regarding capital improvement projects (CIPs). He provided updates regarding siphon rehabilitations and manhole repairs. He added that he will be presenting his recommendation for the Elden Force Main Redundancy Project at the next Board meeting. President Scheafer inquired about the recent rain events. Mr. Esquer stated that next month's report will have more data regarding infiltration and inflow (I/I) from the recent rain events. Vice Secretary Ooten stated that I/I depends on the pattern of rainfall. There was no further discussion, and the report was received. G. TREASURER'S REPORTS Action: 1. Approve the Investment Report for the Month of January 2023 Recommendation: That the Board of Directors approve the Investment Report for the month of January 2023. District Treasurer, Marc Davis, presented report details. He provided an update on the District's participation in the California Cooperative Liquid Assets Securities System (CLASS). President Scheafer asked if only special districts are allowed to invest in CLASS. Mr. Davis stated that CLASS is marketed to all government agencies. Motion: To approve the Investment Report for the month of January 2023. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 Motion by Arlene Schafer, second by Bob Ooten. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: None Absent: Brett Eckles There was no further discussion. H. ATTORNEY'S REPORTS District Counsel, Alan Burns, noted that there is no report because the teleconferencing regulations under AB 361 expire tomorrow. The Board discussed telecommuting regulations regarding appointed officials and alternate positions. 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) Vice Secretary Ooten shared OCSD updates. He stated that there will be a celebration for the Groundwater Replenishment System in April. He discussed issues related to sea level and tide changes. He mentioned that OCSD is building a new headquarters on Ellis Avenue. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry stated that there was no SARFPA meeting for this month. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer stated that the ISDOC quarterly meeting had an environmental reporter as the guest speaker. She shared that Rick Howard of Orange County Mosquito and Vector Control is retiring. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer provided updates regarding her CSDA appointments. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer stated that SDRMA's Annual Safety Claims Day will be taking place on March 22nd in Sacramento. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Schafer shared that she attended a Water Advisory Committee of Orange County (WACO) meeting. Vice Secretary Ooten provided a brief overview of the WACO meeting. Discussion followed regarding the Prado Dam. President Scheafer shared that he attended the Orange County Council of Governments (OCCOG) Board meeting. He discussed Senate Bill 411. He stated that OCCOG's General Assembly will take place on March 23rd at the Richard Nixon Presidential Library. Vice Secretary Ooten mentioned that OCSD meetings are now taking place in -person. President Scheafer shared that ISDOC is hoping to resume in -person meetings, but that they can longer meet at the Municipal Water District of Orange County (MWDOC) due to construction. He noted that the Board COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 needs an updated meeting reimbursement form due to the new mileage amounts. There was no further discussion. i. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Vice Secretary Ooten commented on pension liability and requested to review the District's position. Secretary Perry stated that the District still has a pension balance. Discussion followed regarding the District's policy for pension liabilities. Vice President Schafer expressed recognition for the District's Annual Comprehensive Financial Report (ACFR). She suggested including page numbers on all staff reports. President Scheafer inquired about medication disposal. Mr. Carroll stated that most pharmacies have drop boxes for medications. President Scheafer discussed CSDA's webinar on emergency preparedness and cybersecurity. He wished good luck to Ms. Guzman on her departure from the District. There were no additional comments. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2023 M. ADJOURN TO CLOSED SESSION Discussion: 1. Performance evaluation (Gov. Code §54957) Title: General Manager District Counsel, Alan Burns, stated that Mr. Carroll may be present for his performance evaluation but not for the negotiation discussion. President Scheafer adjourned to closed session at 5:32 p.m. Discussion: 2. Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Scheafer Unrepresented party: General Manager President Scheafer adjourned to closed session at 5:32 p.m. N. RECONVENE TO OPEN SESSION 1. Report Out of Closed Session Vice Secretary Ooten left the meeting at 6:00 p.m. President Scheafer reconvened from closed session at 6:12 p.m. and noted that no reportable action was taken during the closed session. O. CLOSING ITEMS Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, March 27, 2023. President Scheafer adjourned the meeting at 6:12 p.m. 14 Art Perry Secretary v� M' e Scheafer President