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Minutes - Board - 2023-10-23COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING OCTOBER 23, 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), Marissa Pereyda (Management Analyst II), Dyana Bojarski (Administrative Services Manager) Others present None 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 DIRECTORS REGULAR MEETING HELD OCTOBER 23, 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. None. Procedural: 6. Ceremonial Matters and Presentations. Mâ–º['Mt Mt- 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. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of September 12, 2023 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 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 September 25, 2023 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2024-04 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2024-04 approving District warrants for the month of September in the amount of $706,674.74. 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 September 2023 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Approve the occupancy count as presented as 23,097 and direct staff to prepare a warrant to CR&R Environmental Services for $258,372.28 for September 2023 Solid Waste Collection Services 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 $258,372.28 for September 2023 solid waste collection services to be ratified with the October 2023 warrant register. Action (Consent): 8. Receive and File September 2023 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 2023 Action (Consent): 9. Receive and File Annual Report of Expenses - Fiscal Year 2022-23 Recommendation: The Board of Directors receive and file the Annual Report of Expenses for the Fiscal Year 2022-23. Action (Consent): 10. Approve the Investment Report for the Month of August 2023 Recommendation: That the Board of Directors approve the Investment Report for the month of August 2023. Motion: To approve the Consent Calendar as presented. Motion by Bob Ooten, second by Art Perry. 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, Receive and File: 1. Receive and File Fiscal Year 2022-23 Annual Compliance Report for Requirements of Government Code Section 66013 (d) for Capacity Charges Recommendation: That the Board of Directors receive and file this report. Finance Manager, Kaitlin Tran, provided report details. There was no further discussion. Action: 2. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2022-23 to Fiscal Year 2023-24 Recommendation: That the Board of Directors approve the re -appropriation of funds in the Fiscal Year 2023-24 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 2023 10 Solid Waste Fund: Carryover Appropriations $40,000, Encumbrances $5,209.20 20 Wastewater Fund: Carryover Appropriations $2,086,077.91, Encumbrances $1,005,403.13 Ms. Tran provided report details. Motion: To approve the re -appropriation of funds in the Fiscal Year 2023-24 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $40,000, Encumbrances $5,209.20 20 Wastewater Fund: Carryover Appropriations $2,086,077.91, Encumbrances $1,005,403.13 Motion by Arlene Schafer, second by Art Perry. 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, Receive and File: 3. Receive and File the First Quarter Budget Review for Fiscal Year 2023-24 Recommendation: That the Board of Directors receive and file this report. Ms. Tran provided report details. She stated that the Solid Waste Fund is predicted to be over budget due to organics and recycling tonnages. She noted that the District's allocation from its annual assessments is expected to arrive in November 2023. President Scheafer inquired about the Personnel budget in the Wastewater Fund. Mr. Carroll stated that the three interim supervisors within the Wastewater Department received a 5% salary increase. Discussion followed regarding organics and recycling tonnage projections within the Solid Waste Fund. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 2023 Ms. Tran stated that the Solid Waste Fund's contingency budget will help offset overages. Director Eckles inquired about the contingency budget. Ms. Tran stated that the contingency budget is the difference between revenue and expenses and assists with any unexpected costs. Discussion followed regarding liability insurance costs and the Special Districts Risk Management Authority (SDRMA). Vice Secretary Ooten stated that the organics tonnage amounts will vary throughout the year and tend to decrease during the winter season. There was no further discussion. Action, Receive and File: 4. Receive and File 2023 Performance Measurement Report — 2nd Quarter, (January — September) Calendar Year Recommendation: That the Board of Directors receive and file this report. General Manager, Scott Carroll, presented the item. President Scheafer commented on the District's experience modification rate (EMOD). Vice Secretary Ooten requested to review any changes to performance goals. Director Eckles inquired about the District's Wellness Program. Mr. Carroll stated that the District tries to incentivize its employees to participate in the Wellness Program with games and contests. He shared that the District will be using a smartphone application to increase participation. Discussion followed regarding program contests and participation. President Scheafer asked if the District's health insurance providers provide any credits for participating in the Wellness Program. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 2023 Mr. Carroll stated that the Wellness Program is a District -operated program and not sponsored by health care providers. Vice Secretary Ooten discussed the Wastewater Department's pipeline cleaning goals. Mr. Carroll stated that the goal is to clean the whole sewer system in 220 days, which was established by the Board. District Engineer, Mark Esquer, expressed support for the cleaning goal as it helps to reduce the risk of sanitary sewer overflows (SSOs). President Scheafer inquired about public records requests. Mr. Carroll stated that the District has received more public records requests than usual but is completing them within an average of six days. Ms. Middenway stated that the District has received public records requests for capital improvement projects (CIPs), project proposals and contracts, easement drawings, and bidding documents. She shared that all District records are available on the District's website. There was no further discussion. Action, Receive and File: 5. Receive and File 2020-25 Strategic Plan Progress Report - Fiscal Year 2023-24 First Quarter Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented the item. President Scheafer asked when District staff will prepare the next strategic plan. Mr. Carroll stated that staff will start planning in the fall of Fiscal Year 2024- 25. There was no further discussion. F. ENGINEER'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 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. Mr. Esquer provided an update on current projects and shared that Project 327 Calcium Removal Phase I and Project 342 HQ Landscaping Project have both started. Discussion followed regarding Project 327 Calcium Removal Phase I. President Scheafer inquired about the sanitary sewer issues at the South Coast Plaza. Mr. Carroll shared that all restaurants located at the South Coast Plaza are in compliance with the District's fats, oil, and grease (FOG) program with the exception of Claim jumper. He stated that Claim jumper is working with a plumber to repair their grease interceptor. Discussion followed regarding the potential causes affecting Claim jumper's grease interceptor. Director Eckles inquired about the most recent inspection of South Coast Plaza's sewer system. Mr. Esquer stated that it was last inspected about two to three months ago. He noted that South Coast Plaza leases space to restaurants that are responsible for complying with the District's FOG program. He stated that the District will be inspecting South Coast Plaza on a monthly basis to assess FOG accumulation. District Counsel, Alan Burns, stated that South Coast Plaza and its tenant restaurants are both responsible for complying with the FOG program. 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 OCTOBER 23, 2023 G. TREASURER'S REPORTS Action: 1. Approve the Investment Report for the Month of September 2023 Recommendation: That the Board of Directors approve the Investment Report for the month of September 2023. District Treasurer, Marc Davis, provided report details. Discussion followed regarding the California Cooperative Liquid Assets Securities System (CLASS) and the Local Agency Investment Fund (LAIR Motion: To approve the Investment Report for the month of September 2023 Motion by Art Perry, second by Brett Eckles. 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 Mr. Burns shared new legislation regarding accessory dwelling units (ADUs) being sold separately from their main residences. Discussion followed regarding the District's sewer requirements and processes for ADUs. 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 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. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 2023 1.Orange County Sanitation District (OCSD) - (President Ooten) Vice Secretary Ooten stated that OCSD's Board meeting takes place this Wednesday. He shared that he attended OCSD's Operations Committee meeting earlier this month, during which they discussed the rehabilitation of sewers and plant facilities. He noted that OCSD's Friday luncheon begins at 11:00 a.m. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry stated that there was no SARFPA meeting this month. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer stated that she did not attend ISDOC's in -person meeting. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared that CSDA's Board Secretary/Clerk Conference takes place in November 2023. She stated that CSDA's membership is about 1,300 members. She commented on CSDA's Finance and Professional Development Committees. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer announced the retirement of SDRMA's Member Services Director, Ellen Doherty. He stated that he will be attending SDRMA's next meeting virtually. 6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer discussed the recent City/Districts Liaison Committee meeting and noted that the next meeting takes place January 19, 2024 and will be hosted by the District. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 2023 Vice Secretary Ooten shared that he attended a Water Advisory Committee of Orange County (WACO) meeting where they discussed the Central Valley's groundwater levels. He added that he also attended the OC Water Summit. There was no further discussion. T. 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 Director Eckles asked if the Board will discuss the Community Survey at the November Study Session. Mr. Carroll stated that the results of the survey will be presented at the November Board meeting. Discussion followed regarding the rebidding process of Project 330 Westbluff Pump Station Rehabilitation. There were no additional comments. M. ADJOURN TO CLOSED SESSION None at this time. N. RECONVENE TO OPEN SESSION None at this time. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD OCTOBER 23, 2023 O. CLOSING ITEMS Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, October 23, 2023. President Scheafer adjourned the meeting at 5:30 p.m. Art Perry Secretary Mike Sche fe President