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Minutes - Board - 2023-05-22COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MAY 22, 2023 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), Gina Terraneo (Management Analyst II), Mark Esquer (District Engineer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Alan Burns (District Counsel), Marc Davis (District Treasurer), Marissa Pereyda (Management Analyst II) Others present Michael Tou, Citizens Advisory Committee Vice Chair 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. Procedural: 2. Pledge of Allegiance - President Scheafer President Scheafer led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Schafer COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DEPECTORS REGULAR MEETING HELD MAY 22, 2023 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, Vice Secretary Ooten, 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. President Scheafer stated that the Board has received a printed copy of the District's contract with GCI Construction, Inc. for Project 335 Sewer Siphon Phase 2 Emergency Pipeline Failure. General Manager, Scott Carroll, stated that the contract was not included in the staff report under Item F3. He noted that it has been printed and made available for the Board and public. There were no additional late communications. 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 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 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 11, 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 April 24, 2023 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2023-11 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2023-11 approving District warrants for the month of April in the amount of $883,951.41. Action (Consent): 5. Approve Payroll Transparency Disclosure for April 2023 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 6. Receive and File the April 2023 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 7. 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): 8. Accept the occupancy count as presented as 23,095 and direct staff to prepare a warrant to CR&R Environmental Services for $246,047.20 for April 2023 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 23,095 as the correct number of active units and direct staff to COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 prepare a warrant to CR&R Environmental Services for April 2023 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $246,047.20 to be ratified in the May 2023 warrant list. Action (Consent): 9. Receive and File April 2023 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the April 2023 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Approve the preparation of a warrant to CR Transfer in the amount of $184,678.94 for April 2023 in the May 2023 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $184,678.94 for April 2023 recycling and disposal services in the May 2023 warrant register. Action (Consent): 12. Approve the Investment Report for the Month of April 2023 Recommendation: That the Board of Directors approve the Investment Report for the month of April 2023. Motion: To approve the Consent Calendar as presented. 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 No: None D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 Action: 1. Preliminary Biennial Budget 3`'d Review for Fiscal Years 2023-24 and 2024-25 Recommendation: That the Board of Directors provide feedback to staff regarding the proposed preliminary Biennial Budget for the Fiscal Years 2023-24 and 2024- 25. Finance Manager, Kaitlin Tran, presented report details. She discussed the Classification and Compensation Study budgeted for Fiscal Year 2023-24, Robin B. Hamers' (RBH) increased rates for engineering services, and the condition of the District's crane truck. Director Eckles inquired about the reduced funds that were allotted for the Classification and Compensation Study. Ms. Tran stated that the funds were placed in the contingency account. Discussion followed regarding the approval process for specific expenses. Mr. Carroll stated that the budget will be presented at the June Board meeting for final approval and adoption. There was no further discussion. Action: 2. Consider Approving District Counsel's Request for Compensation Increase Recommendation: That the Board of Directors approve District Counsel's request for compensation increase. Mr. Carroll introduced the item. District Counsel, Alan Burns, recused himself from this item at 4:42 p.m. Mr. Carroll stated that the proposed rate increases are substantially lower than most lawyer services for the public sector. Director Eckles inquired about the 2019 rate increases for this item. Mr. Carroll stated that he does not have that information. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 Motion: To approve the District Counsel's request for a compensation increase. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None There was no further discussion. Action: 3. Consider Approving sending Mark Esquer, District Engineer, Steve Cano, Wastewater Maintenance Superintendent and Alex Arreola, Wastewater Maintenance Worker II and Tony Gomez, SCADA Technician/Industrial Electrician to the 38th 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, and Tony Gomez, SCADA Technician/Industrial Electrician to the 381h Annual Tri-State Seminar in Las Vegas, Nevada on August 7-10, 2023. Mr. Carroll presented the item. Vice Secretary Ooten requested that District staff provide a report on this item after attending the conference. Motion: To approve sending Mark Esquer (District Engineer), Steve Cano (Wastewater Superintendent), Alex Arreola (Wastewater Maintenance Worker II), and Tony Gomez (SCADA Technician/Industrial Electrician) to the 38th Annual Tri-State Seminar in Las Vegas, Nevada on August 7-10, 2023 and to receive a report from staff after the conference. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 Action: 4. Consider Approving Contribution Program Application for Save Our Youth (SOY) 30th Anniversary Gala Recommendation: That the Board of Directors: 1. 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; and 2. Consider approving the SOY contribution request of a $2,S00 sponsorship. Ms. Middenway presented the contribution request for SOY and discussed requirements for the District to provide contributions. Discussion followed regarding SOY's contribution application. Mr. Carroll stated that the District typically offers sponsorships in exchange for promotion of District services. Discussion followed regarding the District's sponsorship for the Costa Mesa Foundation's Concerts in the Park. Ms. Middenway stated that this is the first time SOY has submitted a contribution application. Discussion followed regarding the contribution amount. President Scheafer stated that SOY's efforts primarily benefit residents within the west side neighborhoods of Costa Mesa. Director Eckles commented that the organization did not provide enough information and recommended denying the contribution application. Mr. Burns stated that the District's contribution must satisfy a District purpose. Motion: To: 1. 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; and COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 �. Approve the SOY contribution request of a $500 sponsorship Motion by Bob Ooten. Motion failed to receive a second. Substitute Motion To: 1. 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; and 2. Approve the SOY contribution request of a $500 sponsorship, only if the District is provided recognition for the sponsorship and the ability to promote a District program or service. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None President Scheafer requested an update on this item at the next Study Session. There was no further discussion. Action, Receive and File: S. Receive and File Government Investing 101 Report Recommendation: That the Board of Directors receive and file this report. District Treasurer, Marc Davis, provided a presentation on government investing. He discussed allowable investments and deposits, risk and liquidity, local agency bonds, repurchase agreements, and mortgage - backed securities. He explained common investment terms, investment objectives and philosophy, and how investments are placed. He provided an overview of the current investment environment. He discussed the District's portfolio and its relationship with interest rates and stocks. Discussion followed regarding the Local Agency Investment Fund (LAIF), the California Cooperative Liquid Assets Securities System (CLASS) fund, and the District's portfolio. There was no further discussion, and the report was received. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 Action: 6. Approve Auditor Engagement Letter for Fiscal Year 2022-23 Audit Recommendation: That the Board of Directors accepts the Auditor Engagement Letter for Fiscal Year 2022-23 Audit and authorize President Scheafer to sign the engagement letter on behalf of CMSD. Ms. Tran provided report details. Motion: To accept the auditor engagement letter for the Fiscal Year 2022-23 audit and authorize President Scheafer 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, Bob Ooten, Brett Eckles, Mike Scheafer No: None There was no further discussion. F. ENGINEER'S REPORTS 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. There was no further discussion, and the report was received. Action: 2. Consider Approving New Rates with Robin B. Hamers & Associates for Engineering, Inspection, and Contract Administration Services Recommendation: That the Board of Directors approve RBH proposed rate increases. Mr. Esquer discussed the rate increases for RBH's services. Discussion followed regarding prevailing wage rates for inspection services and RBH's contract. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 Motion: To approve updated rates with Robin B. Hamers & Associates, Inc. for engineering, inspection, and contract administration services. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: Brett Eckles There was no further discussion. Action: 3. Ratify the GCI Agreement for the P335 Sewer Siphon Phase 2 Emergency Pipeline Failure Recommendation: That the Board of Directors approve the following: 1. Ratify the staff negotiated and approved time -and -materials contract with GCI Construction, Inc. to provide emergency construction services, including dewatering well installations and related services; 2. Direct staff to bring the Insituform Change Order back before the Board for ratification; 3. Direct staff to provide a final project update and review of expenditures. Mr. Esquer discussed the status of Project 335 Sewer Siphon Phase 2 Emergency Pipeline Failure. Mr. Burns stated that, in order to approve the recommended actions, the Board must issue a finding that there is a need to continue the emergency work. President Scheafer suggested filing a claim with the Special Districts Risk Management Authority (SDRMA) regarding this project. Discussion followed regarding the contract's labor costs. Vice Secretary Ooten inquired about the pipeline's patch work. Mr. Esquer stated that the contractor used reinforcement material to internally patch the pipeline. Motion: To approve the following: COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DHIECTORs REGULAR MEETING HELD MAY 22, 2023 1. Ratify the staff negotiated and approved time -and -materials contract with GCI Construction Inc. to provide emergency construction services, including dewatering well installations and related services; 2. Direct staff to bring the Insituform Change Order back before the Board for ratification; 3. Direct staff to provide a final project update and review of expenditures; 4. Make a finding that there is cause to continue the emergency work for Project 335 Sewer Siphon Phase 2. Motion by Brett Eckles, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None There was no further discussion. G. TREASURER'S REPORTS None at this time. H. ATTORNEY'S REPORTS None at this time. 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 updates regarding OCSD's strategic plan. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 Secretary Perry stated that SARFPA meets next week. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer stated that she did not attend ISDOC's meeting due to another meeting conflict. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared updates on CSDA's Legislative Days event. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer shared updates regarding SDRMA and workers' compensation rates. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer shared that he attended a Water Advisory Committee of Orange County (WACO) meeting. 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 COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 22, 2023 Director Eckles thanked District staff for working the Compost Giveaway Event. Mr. Carroll recognized District staff for their efforts at the event and stated that 477 vehicles attended the event and over 50,000 pounds of compost were distributed. President Scheafer thanked CR&R for assisting with the event. Director Eckles suggested including shredding services at the next Compost Giveaway Event. He shared information regarding the Newport Mesa Soccer Classic. President Scheafer thanked District staff for hosting a booth at the I Love Costa Mesa Day event. 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 26, 2023. President Scheafer adjourned the meeting at 6:13 p.m. Art erry Mike Scheafer Secretary President