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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS STUDY SESSION
OCTOBER 13, 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), Alan Burns (District Counsel), Noelani Middenway
(District Clerk and Public Information Officer), Kaitlin Tran (Finance Manager), Dyana
Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II),
Nabila Guzman (Management Analyst I), Edward Roberts (Code Enforcement Officer)
Others present
Mike Carey, CR&R Environmental Services, Citizens Advisory Committee Chair
Jim Mosher, District resident
Seth Greiner, Citizens Advisory Committee Member
1 Meeting called to order at 9:34 A.M.
A. OPENING ITEMS
I
Procedural: 1. 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.)
President Ferryman called the meeting to order at 9:34 A.M.
I
District Clerk and Public Information Officer, Noelani Middenway, noted that
President Ferryman, Vice President Ooten, Secretary Schafer, Director Scheafer,
f
and Director Perry were present at this time.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
1
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MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION
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President Ferryman opened public comments.
Ms. Middenway stated that District resident, Jim Mosher, requested to submit a
public comment.
Mr. Mosher stated that he has a few agenda-related comments, which he will share
as the Board addresses each item.
Hearing no other public comments, President Ferryman closed public comments.
C. ITEMS OF STUDY
Action, Receive and File: 1. September 2020 Code Enforcement Officer Report
Recommendation: That the Board of Directors receive and file this report.
Code Enforcement Officer, Ed Roberts, presented report details. He stated that he
conducted six proactive scavenging investigations. He shared that the staff report
contains brief narratives and maps of each investigation. He noted that he issued
a total of 97 warning notices, which included first and final notices. He added that
there were no instances of graffiti in September 2020. He stated that he reported
a damaged trash cart to a District resident who said that they will call the District
to have it replaced.
Director Perry shared that he has witnessed many mattresses placed on street
corners. He inquired if Mr. Roberts has noticed these items.
Mr. Roberts confirmed that he has noticed the increase in mattresses, which he
suspects to be a result of people moving out of multi-family properties.
Director Perry inquired if Mr. Roberts reports these items to the City of Costa Mesa.
Mr. Roberts stated that the District sometimes receives complaints from residents
regarding large items disposed of in the public right-of-way. He shared that City
staff patrol and pick up large items that are illegally dumped. He noted that if the
problem persists, then he will communicate with the City's Code Enforcement
Department.
There was no further discussion, and the report was received.
Action, Receive and File: 2. August & September 2020 Organics Tonnage Report
Recommendation: That the Board of Directors receive and file this report.
General Manager, Scott Carroll, stated that there is not much to report on this item.
He shared that there has been no disruption in service for this program due to the
COVID-19 pandemic. He noted that CR&R is still collecting a substantial amount
of organics tonnage and dealing with contamination issues. He added that the
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MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION
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District will provide the Board with an update on how it is dealing with
contamination.
There was no further discussion, and the report was received.
Action, Receive and File: 3. September 2020 Solid Waste Diversion Report
Recommendation: That the Board of Directors receive and file this report.
Mr. Carroll stated that there is nothing to report since solid waste reporting has
been temporarily delayed. He shared that CR&R has resumed operations at their
Materials Recovery Facility (MRF), which was temporarily closed for several
months due to the COVID-19 pandemic. He noted that the MRF is not fully
operational, but they are starting to process recyclables.
There was no further discussion, and the report was received.
Action, Receive and File: 4. Records Management Program - Update
Recommendation: That the Board of Directors receive and file the report.
Ms. Middenway presented report details. She noted that the Board requested this
item as a brief overview of the District's records management program. She stated
that, in 2010, the Board established the District's records management program
based on a recommendation from Gladwell Governmental Services. She added
that the District's records retention schedule is reviewed and updated annually by
Gladwell Governmental Services to ensure that the District is current with changes
in law and best practices of other agencies. She noted that the retention schedules
are copyrighted documents, which makes them unavailable to the public for this
report. She stated that, if the Board or the public requests to obtain a copy of the
retention schedules, then they can submit a public records request. She shared
that, when significant legal updates are made to the retention schedules, the
revisions will be submitted to the Board for adoption. She added that she
anticipates a legal update to be made in January 2021 regarding the recent case
laws addressing the deletion of emails for California Environmental Quality Act
(CEQA) related projects. She noted that all District public records are scanned into
the District's imaging system, Laserfiche. She stated that, to enhance
transparency, the District has made all public records, including their sewer atlas
plans, accessible on the District website. She discussed the District's system for
preparing District records for offsite storage and destruction, which are services
provided by Iron Mountain. She noted that questions regarding the District's record
retention system can be answered directly by Diane Gladwell of Gladwell
Governmental Services and that her phone number is provided on the District's
retention schedule.
Director Scheafer stated that the California Special Districts Association (CSDA)
issues guidelines on records retention. He inquired if Gladwell Governmental
Services follows the State of California's guidelines for records retention.
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Ms. Middenway confirmed that Gladwell Governmental Services abides by the
State's guidelines.
Director Scheafer inquired about the locations of Iron Mountain's facilities.
Ms. Middenway stated that there are several facilities all over the region and
throughout the state. She added that the storage facilities are temperature
controlled and secured. She shared that permanent records like District minutes,
resolutions and ordinances are sent to Iron Mountain to be retained securely.
District Counsel, Alan Burns, stated that, in 2013 when the District signed their
contract with Gladwell Governmental Services, the District had a concern about a
copyright preventing a Public Records Act(PRA) request. He noted that the District
has not issued a final opinion on the matter. He added that, when the District
receives a related PRA request, he will provide the Board with an opinion.
Vice President Ooten inquired about the percentage of records that are digital.
Ms. Middenway stated that all District records are digital. She noted that all
documents that have been approved by the Board have been imaged and made
available to the public.
Vice President Ooten inquired if only hard copies of District records are sent to Iron
Mountain.
Ms. Middenway confirmed that both digital and hard copies have the same
retention schedule.
Vice President Ooten asked if electronic files are stored by Iron Mountain.
Ms. Middenway stated that electronic files are hosted by Laserfiche.
Mr. Mosher stated that the District's Operations Code, Section 1.07.030 lists
several documents that are retained permanently. He inquired if the District's
retention schedule is an administrative document that is retained and modified by
District staff, and if the Board and the public are notified when changes are made
to the retention schedule.
Mr. Burns stated that District ordinances have precedence and that the Board has
adopted an ordinance regarding the District's retention schedule. He added that if
' the District decides to modify their retention schedule, then the Board will need to
adopt a resolution regarding those changes.
There was no further discussion, and the report was received.
Action, Discussion: 5. Board Secretary Compensation and Per Diem Meeting
Request
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Recommendation: That the Board of Directors provide direction to staff.
Mr. Carroll stated that this agenda item was requested by_Mr. Mosher. He shared
that Mr. Mosher's comments have been attached to the report. He noted that the
comments were submitted to Mr. Burns for a response.
Mr. Burns provided report details. He stated that the Board has an ordinance
regarding the list of approved meetings that qualify for per diem compensation. He
noted that the per diem has been raised over the years, but it has been limited to
six days per month. He added that, in adopting the ordinance, the Board gave
discretion to each director to use their own judgement in attending a recognized
meeting that is relative and important to District business. He stated that there is a
different criterion for expense reimbursement payments. He noted that Board
members will receive reimbursement for District-related expenses within the state.
He added that reimbursement for District-related expenses that occur out of the
state requires Board approval. He discussed Board Secretary compensation,
according the District's Operations Code. He stated that the District Clerk serves
as the Board's professional secretary. He added that the main function of the
Board Secretary is to sign District documents. He noted that the District has the
authority to compensate the Board Secretary in the same manner as other Board
members.
Director Scheafer asked if Mr. Burns' opinion on this item has changed based on
this discussion.
Mr. Burns confirmed that his opinion on Board Secretary compensation and per
diem has not changed.
Director Scheafer inquired about how much time has been expended by District
staff on this agenda item and if the item requires Board approval.
Mr. Burns stated that a considerable amount of time has been spent on responding
to public comments. He noted that the District has a provision which states that a
Board member is to consult with the General Manager to request an agenda item
to ensure that the District's resources are not exhausted. He added that the District
does not have the same requirement for members of the public who submit a
request for an agenda item.
Director Scheafer suggested that perhaps the provision should also be applied to
members of the public. He stated that the District has not changed anything
regarding Board Secretary compensation and per diem, yet it has spent a
significant amount of time researching it.
President Ferryman stated that it is Mr. Carroll's responsibility to oversee the use
of staff time on these matters.
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Mr. Mosher expressed agreement with the comments made by Director Scheafer
and noted that he is concerned about the use of District resources. He stated that
he submitted comments on this topic and requested a Board meeting to review this
topic. He noted that his intent is to ensure that the District is following best
practices. He added that the Health and Safety Code sees the position of Board
Secretary as a professional position that requires special compensation. He
shared that, in preparation for this discussion, he surveyed the operations of other
special districts in California. He noted that he did not survey all 60 sanitary
districts, but among the districts he did survey, he found that having a Board
member serving as Secretary is not the common practice. He stated that at least
two-thirds of the surveyed districts did not have a Board member serving as
Secretary. He shared that a surprising number of other districts designate one
Board member as Board Treasurer. He noted that he would prefer that the District
did not have a professional Board Secretary. He added that the District is following
an unusual practice of having a Board member serve as a Secretary to the Board.
Additionally, Mr. Mosher shared that, according to the Health and Safety Code,
Board stipends are to be paid in addition to items other than actual Board meetings
that have been requested by the Board. He stated that he researched stipends
given by the other 60 sanitary districts in the state and found that two of the
District's Board members consistently earn the most out of 300 directors in
California. He added that all of the District's Board members are ranked within the
top ten earned stipends. He explained that this is a result of the District offering a
very generous stipend per meeting and allowing Board members to be
compensated for the maximum amount of six meetings per month or 72 meetings
per year. He noted that it is common in other districts to appoint specific Board
members to attend local meetings. He added that the appointments are recorded
so that Board members can receive compensation for meetings other than District
meetings. He stated that the Fair Political Practices Commission (FPPC) requires
the appointment of Board members to other local meetings to be reported on form
806. He noted that the 806 forms posted on the District's website are outdated and
that only two appointments are listed with incorrect information. He added that
other special districts are more transparent in their reporting. He discussed the
$295 compensation rate and stated that the amount probably exceeds the intent
the State legislature has for sanitary district boards. He shared that in 2000, the
State legislature adopted a regulation that set compensation at $100 with a right
to raise the amount five percent per year. He inquired about how the Board
interpreted this regulation and noted that the Board raised its compensation in
January 2001 to$170,which was the base for the five percent increases. He added
that the State legislature's intent was to start with a base of $100. He stated that
the District's compensation was set at $100 in 1987. He concluded by saying that
the District's interpretation of this regulation has contributed to its Board members
being among the highest paid special district Board members.
Mr. Burns stated that the 806 form is required for Board members who are
appointed to another agency's board and receive compensation from that agency.
He added that he researched how the five percent increase has been applied to
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Board compensation. He noted that the District is following the California
Association of Sanitation Agencies (CASA) and CSDA guidelines for
compensation. He shared that Board members are permitted to receive a little over
$300 in per diem for meetings, but he noted that the Board decided against
compensating members at this amount. He stated that the Board arbitrarily
selected the $295 rate.
Director Scheafer stated that the insinuation that Board members simply attend
meetings is inaccurate. He shared that he attends a lot of meetings and regularly
exceeds the six compensable meetings per month. He noted that he attends other
meetings to learn and absorb information that he can apply to policy decisions for
the District. He noted that some meetings do not directly affect the District, but he
does not want to miss an opportunity to potentially discover how to make better
policies for the District. He discussed a public comment in the memo that implies
that the Board receives a lucrative stipend. He commented that the compensation
he receives from the District is not lucrative and he noted that he spends a
considerable amount of time away from his family and business to attend meetings
and perform other acts of service in the interest of the District. He confirmed that
his position is voluntary, but he reiterated that he did not volunteer for the purpose
of monetary gain. He stated that the Board is strongly devoted to making the
District the best district in California and that he does not find it appropriate to
compare the District to smaller, dissimilar districts in northern California. In terms
of providing direction to District staff, he stated that this item can be closed and
that the District should move forward with other matters.
Director Perry expressed agreement with Director Scheafer's remarks.
President Ferryman inquired if the Board needs to act on this item.
Mr. Carroll and Mr. Burns stated that the Board can either act or provide direction.
President Ferryman recommended verifying the intent and policy of the Board by
making a motion.
Motion: To receive and file the report and to continue to follow the
established procedures and guidelines for Board compensation.
Motion by Mike Scheafer, second by Art Perry.
Final Resolution: Motion Carries 5-0.
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There was no further discussion.
Procedural: 1. Oral Communications and Director Comments
Director Perry inquired if Mr. Carroll has researched CSDA's notice regarding cities
being responsible for collection of certain solid waste materials.
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Mr. Carroll stated that District staff has researched the matter and is planning to
address this as a discussion item for a future Study Session. He inquired if Director
Perry would like the item to be placed on the agenda for the November Study
Session.
Director Perry agreed to discuss it at next month's Study Session and stated that
the District and the City of Costa Mesa need to be aware of new guidelines.
Director Scheafer stated that Director Perry discussed a proliferation of mattresses
being illegally dumped in the public right-of-way. He requested an update on how
the City of Costa Mesa services these items.
Vice President Ooten inquired if mattresses are eligible for CR&R's Large Item
Collection program.
Mr. Carroll confirmed that mattresses qualify for CR&R's program. He noted that
the illegal dumping issue usually involves multi-family properties that are serviced
by the City of Costa Mesa.
Director Scheafer offered best wishes to President Ferryman and Director Perry
who are currently running for reelection to the Board.
There was no further discussion.
Procedural: 2. Adjournment
President Ferryman experienced internet connectivity issues and was unable to
adjourn the meeting.
Vice President Ooten adjourned the meeting at 10:18 A.M.
0 Tr
a"----Arlene Schafer J es Ferryman
Secretary a' c-sident