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Minutes - Board - 2023-07-24COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING JULY 24, 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), Alan Burns (District Counsel), Marc Davis (District Treasurer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager) Others present Eric Sterling, David Volz Design 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. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JuLY 24, 2023 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, 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 District received one late communication, which was emailed to all Board members. 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 Action (Consent):1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of June 13, 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 June 26, 2023 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2024-01 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2024-01 approving District warrants for the month of June in the amount of $2,076,461.02. Action (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 June 2023 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Accept the occupancy count as presented as 23,097 and direct staff to prepare a warrant to CR&R Environmental Services for $246,068.51 for June 2023 collection Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,097; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $246,068.51 for June 2023 solid waste collection services to be ratified with the July 2023 warrant register. Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the amount of $214,660.90 in the July 2023 warrant register for June 2023 recycling and disposal services COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $214,660.90 in the July 2023 warrant register for June 2023 recycling and disposal services. Action (Consent): 9. Receive and File the June 2023 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the June 2023 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File June 2023 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 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 discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS Action: 1. Receive and File 2020-25 Strategic Plan Progress Report — FY 2022-23 Fourth Quarter Recommendation: That the Board of Directors receive and file this report. General Manager, Scott Carroll, introduced the report. Discussion followed regarding the District's insurance costs and experience modification rate (Emod). COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Director Eckles requested District staff to explore the use of artificial intelligence (AI) to connect with residents via text messaging. There was no further discussion, and the report was received. Action: 2. Receive and File the Preliminary Fourth Quarter Budget Review of FY 2022-23 Recommendation: That the Board of Directors receive and file this report. Finance Manager, Kaitlin Tran, presented report details. President Scheafer inquired about the savings in the District's election fund. Ms. Tran stated that election costs did not increase as much as District staff anticipated. Director Eckles stated that there is an overall budget savings of $2 million. Ms. Tran stated that the Wastewater Fund has a budgetary savings of about $400,000 and the Solid Waste Fund has a budgetary savings of about $500,000. She noted that this report does not include the District's Capital Improvement Projects (CIP) but confirmed that the CIP Fund is still within its budget. There was no further discussion, and the report was received. Action: 3. Receive and File 2023 Performance Measurement Report — 2°d Quarter, (January — June) Calendar Year Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented the item and discussed the District's Emod rate. Discussion followed regarding Special Districts Risk Management Authority (SDRMA) insurance claims and rate changes. There was no further discussion, and the report was received. F. ENGINEER'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 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 Engineer's Report. District Engineer, Mark Esquer, provided report details and an update on current projects. Discussion followed regarding the emergency repair work on American Avenue. There was no further discussion, and the report was received. Action: 2. Adopt CEQA Determination, Consider Approving a Budget Adjustment to 342 HQ Landscaping Renovation from Budget 334 Gisler Forcemain, Awarding a Contract to Urban Habitat, Inc., and Approving a Contingency Recommendation: That the Board of Directors: 1. Adopt the 342 Landscaping Renovation project as Categorically Exempt per the California Environmentally Quality Act (CEQA) Section 15302, Class 2 and 4; and 2. Approve a Budget Adjustment to Transfer $164,000 from 334 Gisler Forcemain Replacement Project to the 342 Landscaping Renovation budget; and 3. Award a contract to the lowest responsive and responsible bidder, Urban Habitat, Inc., in the amount of $389,830; and 4. Approve a 10% contingency in the amount of $38,893. Mr. Esquer presented Project 342 HQ Landscaping Renovation and invited landscape architect, Eric Sterling, to provide further detail and answer questions. Discussion followed regarding the requested budget adjustment, other work completed by Urban Habitat, Inc., and prevailing wages. COSTA MESA SANrrARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DmEcTORs REGULAR MEETING HELD JULY 24, 2023 Vice President Schafer inquired about the removal of the sidewalks from the project. Mr. Esquer continued presenting project details. He stated that the City of Costa Mesa decided to remove their sidewalk project, which resulted in additional savings for the District. He discussed the landscaping changes including the removal of grass, grading improvements, the replacement of sprinklers and conduits, the installation of water and irrigation lines, and the addition of new plants, trees, rocks, and gravel. President Scheafer recommended rehabilitating the outdoor picnic area since it is considered an employee amenity. Discussion followed regarding the City's other sidewalk projects. Mr. Esquer continued presenting project details regarding pipe design and the rainfall/runoff capture system. He discussed the project's funding and the requirements to fix the District's water and sewer lines. Discussion followed regarding the removal and replanting of trees on District property and the rainfall/runoff capture system. Director Eckles requested to review the project's bid breakdown. Mr. Esquer provided additional financial information for the project. He discussed the environmental benefits of the landscaping design. Secretary Perry inquired about the funding for Project 334 Gisler Forcemain Replacement. Mr. Esquer stated that the District is currently prioritizing other unexpected sewer failures prior to resuming Project 334 Gisler Forcemain Replacement. He noted that he is hoping to replenish the project's funding by the end of the year. President Scheafer expressed support for the rainfall/runoff capture system. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Director Eckles expressed concern about the scope of the project. Mr. Esquer stated that he can provide the Board with the project's bidding requirements, scope of work, and plans. Discussion followed regarding incoming revenue from property tax assessments. Vice Secretary Ooten requested District staff to research options that will help reduce the overall cost of the project. President Scheafer expressed support for this item especially since the District only received one bid for it. Motion: To do the following: 1. Adopt the 342 HQ Landscaping Renovation project as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15302, Class 2 and 4; and 2. Approve a Budget Adjustment to Transfer $164,000 from 334 Gisler Forcemain Replacement Project to the 342 HQ Landscape Renovation Project; and 3. Award a contract to the lowest responsive and responsible bidder, Urban Habitat, Inc. in the amount of $389,830; and 4. Approve a 10% contingency in the amount of $38,983. Motion by Art Perry, second by Mike Scheafer. Director Eckles inquired about the project's timeline. Mr. Esquer stated that construction will begin in September 2023. He noted that the contractor has 75 working days to complete the project. Director Eckles asked how long Urban Habitat will hold their bid. Mr. Esquer estimated that their bid will hold for at least 60 days. Final Resolution: Motion Carries 4-1 COSTA MESA SANrrARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: Brett Eckles President Scheafer requested to review the scope of work at the next Study Session meeting. Director Eckles commented on deductive change orders. There was no further discussion. Action: 3. Adopt CEQA Determination, Release Bonadiman Water, Inc., from their Bid, Award a Contract to GCI Construction, Inc., and Approve a Contingency Recommendation: That the Board of Directors approve the following: 1. Adopt the 343 Elden Emergency Bypass project as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15302, Class 2; and 2. Release Bonadiman Water Inc., from their bid; and 3. Award a contract to the second lowest responsive and responsible bidder, GCI Construction, Inc., in the amount of $204,000; and 4. Approve a 10% contingency in the amount of $20,400. Mr. Esquer provided project details. He stated that the project consists of replacing bypass connections and wet well hatches and installing a new concrete slab. He discussed the project's bidders and the recommended changes to the original budget for the project. Vice President Schafer asked if the recommended changes to the project affect its construction timeline. Mr. Esquer stated that the changes do not affect the project's timeline. He proposed that this project will be completed by the end of November 2023. Director Eckles inquired about the engineer's estimate for this project. Mr. Esquer stated that costs have changed over the last 12 months, which may have affected the engineer's estimate. He discussed hiring an estimator to help calculate project costs. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Discussion followed regarding the project's budget. Motion: To do the following: 1. Adopt the 343 Elden Emergency Bypass project as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15302, Class 2; and 2. Release Bonadiman Water, Inc. from their Bid; and 3. Award a contract to the second lowest responsive and responsible bidder, GCI Construction, Inc. in the amount of $204,000; and 4. Approve a 10% contingency in the amount of $20,400. 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. Action: 4. Consider Adopting Ordinance No. 137 Changing the Authority to Award Contracts and Making Other Clarifications and Revising Chapters 4.04 and 4.06 Recommendation: That the Board of Directors adopt Ordinance No. 137. Mr. Esquer presented report details. He addressed the written comments on this item submitted by District resident, Jim Mosher. He discussed the substantive changes to the policy, which include increasing the no bidding requirement from $5,000 to $15,000. He described the four types of bidding procedures. Director Eckles commented that, under California law, the District could approve a no bidding requirement larger than $15,000. He expressed support for this item. Motion: To adopt Ordinance No. 137 as presented. Motion by Arlene Schafer, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 There was no further discussion. President Scheafer adjourned the meeting for a rest break at 6:14 p.m. and reconvened the meeting at 6:19 p.m. G. TREASURER'S REPORTS Action: 1. Approve the Investment Report for the Month of June 2023 Recommendation: That the Board of Directors approve the Investment Report for the month of June 2023. District Treasurer, Marc Davis, presented report details. He provided an update on the California Cooperative Liquid Assets Securities System (CLASS). Discussion followed regarding CLASS. Motion: To approve the Investment Report for the month of June 2023. 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. H. ATTORNEY'S REPORTS District Counsel, Alan Burns, stated that the Fair Political Practices Commission (FPPC) adopted new regulations for elected officials and campaign contributions. He stated that local officials can now solicit public employees for campaign donations. He shared that his other client, Home Gardens in Riverside, received 310 protests to their recent Proposition 218 hearing. 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 COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 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 construction projects. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry stated that SARFPA's meeting was cancelled for this month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer stated that ISDOC has decided to continue its teleconferenced meetings rather than in -person meetings. She added that ISDOC is still looking for a Board Secretary. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared she won her re-election campaign for CSDA. She noted that it will be formally announced at the CSDA Annual Conference. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer stated that there is nothing to report for SDRMA. He shared that he will be flying to Salt Lake City, Utah this upcoming Wednesday for a captive meeting. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Vice Secretary Ooten shared that he attended a Water Advisory Committee of Orange County (WACO) meeting, which discussed AI and its relation to the water and wastewater industries. He discussed Senate Bill 1383's turf requirement. President Scheafer shared that he met with District staff and a District resident to discuss missed trash pickups. There was no further discussion. J. 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 President Scheafer stated that he has a few questions for District staff regarding the due date of sexual harassment training. 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 COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JULY 24, 2023 Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, August 21, 2023. President Scheafer adjourned the meeting at 6:35 p.m. Art Perry Mike Schea er Secretary President