Minutes - Board - 2020-05-26COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
MAY 26, 2020
Note: This meeting was conducted utilizing teleconferencing pursuant to Government code Section
54952.2 and the Governor's Executive Orders in effect waiving some of the requirements of that Section.
Members present
Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Members absent
None
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information
Officer), Alan Burns (District Counsel), Marc Davis (District
Treasurer), Michael Benesh (Interim District Engineer), Kaitlin Tran (Finance Manager),
Dyana Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst
II)
Others present
Mike Carey (Citizens Advisory Committee Chair & District resident)
Meeting called to order at 4:30 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order — President Ferryman
President Ferryman called the meeting to order at 4:30 P.M.
Procedural: 2. Pledge of Allegiance — President Ferryman
President Ferryman led the Pledge of Allegiance.
Procedural: 3. Invocation - Vice President Ooten
Vice President Ooten led the Invocation.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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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.)
Management Analyst ll, Gina Terraneo, conducted roll call and noted that
President Ferryman, Vice President Ooten, Secretary Schafer, Director Scheafer,
and Director Perry were present at this time.
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.
General Manager, Scott Carroll, stated that the District received late
communications from District resident, Jim Mosher. He reviewed Mr. Mosher's
comments for the Board.
There was no further discussion.
Procedural: 6. Ceremonial Matters and Presentations
None at this time.
B. Public Comments
Procedural: 1. Public Comments
President Ferryman opened public comments.
Seeing no one wishing to speak, President Ferryman 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 April 14, 2020
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 27, 2020
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
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Action (Consent): 4. 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): 5. Adopt Warrant Resolution No. CMSD 2020-11 Approving District
Warrant Registers
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 6. Payroll Transparency Disclosure for April 2020
Recommendation: That the Board of Directors accept the occupancy count as presented
using 22,939 as the correct number of active units and direct staff to prepare a warrant to
CR&R Environmental Services for March 2020 collection based on this occupancy report
so long as the contractor fulfills the obligations of the agreement in the amount of
$237,728.33 to be ratified in the April 2020 warrant list.
Action (Consent): 7. Accept the occupancy count as presented as 22,961 and direct
staff to prepare a warrant to CR&R Environmental Services for $237,956.32 for April
2020 collection
Recommendation: That the Board of Directors approve and file this report.
Action (Consent), Minutes: 8. Approve the preparation of warrant to CR Transfer for
$259,592.04 for April 2020 recycling and disposal services in the May 2020 warrant
register.
Recommendation: That the Board of Directors approves the preparation of warrant to CR
Transfer in the amount of $259,952.04 for April 2020 recycling and disposal services to
be ratified in the May 2020 warrant register.
Action (Consent): 9. Contracts Signed by the General Manager
Recommendation: That the Board of Directors approve and file this report.
Action (Consent): 10. Investment Report for the Month of April 2020
Recommendation: That the Board of Directors approve the Investment Report for the
month of April 2020.
Action (Consent): 11. Receive and File 2019 Annual Health Benefits Broker Fees
Report
Recommendation: That the Board of Directors approve and file this report.
Motion: To approve the Consent Calendar as presented.
Motion by Arlene Schafer, second by Mike Scheafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
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There was no further discussion.
D. PUBLIC HEARINGS
None at this time.
E. GENERAL MANAGER'S REPORTS
Action: 1. Approve Auditor Engagement Letter for Fiscal Year 2019-2020 Audit
Recommendation: That the Board of Directors approve and file the report.
Mr. Carroll provided report details. He noted that the District's Finance Manager,
Kaitlin Tran, is available for questions.
Directory Perry inquired if the fee of $9,750 for the audit is similar to previous audit
fees.
Ms. Tran stated that this will be the third audit performed by Teaman, Ramirez &
Smith, Inc. for the District. She noted that their audit fee increases by $250 each
year. She emphasized that the District is being charged a fair and competitive rate
by the auditing firm.
Director Scheafer inquired how often the District selects a new auditing firm. He
stated that the District typically hires a new auditing firm every five years.
Ms. Tran stated that the District has a three-year contract with Teaman, Ramirez
& Smith, Inc. with the option of two, one-year term extensions. She noted that the
firm prior to Teaman, Ramirez & Smith, Inc. quoted the District a much higher fee
for auditing services.
Motion: To approve and file the report.
Motion by Bob Ooten, second by Mike Scheafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There was no further discussion.
Action: 2. Update on District's Response to COVID-19
Recommendation: That the Board of Directors receive and file the report.
Mr. Carroll provided report details. He noted that select businesses are reopening
according to Governor Newsom's guidelines. He reviewed the recent actions
performed by the District.
Director Perry inquired about cardboard disposal.
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Mr. Carroll noted that the District encourages its customers to break down their
cardboard before placing it in their Mixed Waste cart.
Director Perry inquired about the cost of purchasing a television for the District's
Board room.
Mr. Carroll stated that it will probably cost $1,000.
Director Perry shared that he was given a new, large television as a fundraiser
item and is interested in selling it for public use.
Secretary Schafer inquired if the District currently has a security guard at its
headquarters.
Mr. Carroll confirmed that there is no security guard at the District's headquarters
since the building is closed to the public.
Director Perry inquired if the District will be testing customers' temperatures.
Mr. Carroll stated that the District cannot test the public's temperature due to
medical privacy concerns. He noted that the District is researching implementing
a questionnaire for the public and for District staff.
Director Perry inquired how many consecutive days has the County witnessed a
decrease in the amount of COVID-19 cases reported.
Mr. Carroll stated that the most consecutive days with a decrease in reported
cases has been five. He noted that the amount of cases fluctuates every day.
Director Scheafer inquired about the District's suspension of collecting sharps and
medications.
Mr. Carroll stated that the public can drop off their sharps and medications at
District headquarters since the collection boxes are in the front of the building.
Vice President Ooten inquired if that message has been posted on the website.
Mr. Carroll noted that it has not been posted on the website, but if a member of the
public visits District headquarters for disposal, then District staff will provide
assistance by unlocking the lobby doors. He continued reviewing the recent
actions performed by the District.
With regard to a question asked during the previous item, District Counsel Alan
Burns shared that the District's Operations Code states that the District will go out
to bid for professional services every five years.
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There was no further discussion, and the report was received.
F. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File the Monthly Capital Improvements
Project Status Report
Recommendation: That the Board of Directors receive and file the report.
Interim District Engineer, Michael Benesh, provided report details.
Director Scheafer inquired if the District owes the City of Costa Mesa for manholes.
Mr. Benesh stated that the District has not received a bill from the City of Costa
Mesa for manholes.
Ms. Tran shared that she received an emailed invoice from the City of Costa Mesa
for manholes, but that the email message was addressed to the Orange County
Sanitation District (OCSD). She noted that she is not sure if the email message
was sent as a mistake.
There was no further discussion, and the report was received.
G. TREASURER'S REPORTS
Nothing to report.
H. ATTORNEY'S REPORTS
Nothing to report.
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) - (Vice President Ooten)
President Ferryman stated that the OCSD meeting is scheduled for Wednesday,
May 27, 2020.
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2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry stated that the SARFPA meeting is scheduled for Thursday, May
28, 2020.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
Secretary Schafer stated that the scheduled ISDOC meeting was cancelled.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer shared that she attended a Fiscal Committee meeting for
CSDA. She stated that the CSDA's Legislative Committee met on Thursday, April
9, 2020. She shared that state legislators are back from recess.
She shared that Mike Carey was re-elected as the Citizens Advisory Committee
(CAC) Chair and that Elodie Katz was elected to serve as the CAC's Vice Chair.
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
Director Scheafer stated that he attended CSDA's Legislative Days. He stated that
SDRMA had a Board meeting in May, in which they discussed a water agency
located north of Palmdale that has been contaminating the waterways with arsenic.
He stated that SDRMA has sent out their annual renewal notices. He shared that
SDRMA has been losing money on their minimum premium members.
6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Vice President Ooten shared that he is on the Citizens Oversight Committee for
the Newport -Mesa Unified School District. He stated that the Committee discussed
Measure F Bonds and how the Newport -Mesa Unified School District is applying
that bond to the new theater at Estancia High School.
Director Perry stated that he attended the Water Advisory Committee of Orange
County (WACO) meeting on May 1, 2020 in which they discussed the COVID-19
challenges for Orange County water districts. He shared that the Federal
government is giving the State of California $685 million dollars for public housing
and rentals and $4.8 billion for homeless assistance.
Director Scheafer shared that he attended the WACO meeting as well.
Director Perry stated that he attended the Costa Mesa City Council meeting. He
shared that the Fairview Developmental Center accepted ten patients with COVID-
19, and that the City has an emergency response team located at the Fairview
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Developmental Center. He noted that the City typically earns about $1.5 million
dollars in tax revenue from South Coast Plaza, but due to its closure, the City
estimates that it will be losing about $3 million in tax revenue. He shared that the
local soup kitchen is collecting plastic bags for takeout food orders.
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
Director Scheafer inquired if Mr. Carroll has spoken with former District Board
Member and District resident, Dan Worthington, recently. He shared that Mr.
Worthington suggested for the District to connect with OCSD and Mesa Water
District to inform the public that COVID-19 does not affect the wastewater system.
Vice President Ooten recommended that Mr. Worthington research the issue
online. He noted that there are many articles stating that scientists can test for the
RNA or DNA of the viruses in sewage.
Director Scheafer clarified that Mr. Worthington suggested that the District does
more public outreach on the issue.
Vice President Ooten inquired if there will be a Study Session item regarding the
smoke testing of the Fairgrounds at the June meeting.
Mr. Carroll stated that it will not be on the June Study Session agenda, but it will
be reported soon.
There was no further discussion.
M. ADJOURN TO CLOSED SESSION
No closed session.
N. RECONVENE TO OPEN SESSION AND REPORT OF ACTION TAKEN
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No closed session.
O. CLOSING ITEMS
Procedural: 1. Adjourn
President Ferryman adjourned the meeting at 5:07 P.M.
ne Schafer
Secretary
James Ferryman
President