Minutes - Board - 2021-12-20COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
DECEMBER 20, 2021
NOTE: THIS HYBRID IN -PERSON AND TELECONFERENCED MEETING WAS CONDUCTED
UTILIZING ELECTRONIC MEANS CONSISTENT WITH STATE OF CALIFORNIA ASSEMBLY BILL
361(GOV. CODE 54953(B)(3)).
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), Alan Burns (District Counsel), Dyana Bojarski
(Administrative Services Manager), Marc Davis (District Treasurer), Mark Esquer
(District Engineer), Gina Terraneo (Management Analyst II)
Others present
Joshua Calhoun, Teaman, Ramirez & Smith, Inc.
Mike Carey, CR&R
Meeting called to order at 4:30 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order - President Ooten
President Ooten called the meeting to order at 4:30 P.M.
Procedural: 2. Pledge of Allegiance - President Ooten
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President Ooten led the Pledge of Allegiance.
Procedural: 3. Invocation - Vice President Scheafer
Vice President Scheafer 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 and Public Information Officer, Noelani Middenway,
conducted roll call and noted that President Ooten, Vice President Scheafer,
Secretary Schafer, Director Perry, and Director Eckles were present.
Procedural: S. 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 at this time.
Procedural: 6. Ceremonial Matters and Presentations.
None at this time.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Ooten 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.
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Action (Consent), Minutes: 2. Approve the Board of Directors Study Session
Minutes of November 9, 2021
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent), Minutes: 3. Approve the Board of Directors Special Meeting
Minutes of November 16, 2021
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent), Minutes: 4. Approve the Board of Directors Regular Meeting
Minutes of November 22, 2021
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): S. Adopt Warrant Resolution No. CMSD 2022-06 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2022-06 approving District warrants for the month of November in the amount of
$1,333,276.10.
Action (Consent): 6. 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): 7. Approve Payroll Transparency Disclosure for November
2021
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 8. Receive and File the November 2021 Solid Waste Diversion
Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 9. Receive and File the November 2021 Organics Tonnage
Report
Recommendation: That the Board of Directors receive and file this report.
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Action (Consent): 10. Approve the preparation of a warrant to CR Transfer in
the amount of $200,870.02 for November 2021 recycling and disposal services
in the December 2021 warrant register
Recommendation: That the Board of Directors approves the preparation of a
warrant to CR Transfer in the amount of $200,870.02 for November 2021 recycling
and disposal services to be ratified in the December 2021 warrant register.
Action (Consent): 11. Accept the occupancy count as presented as 23,052 and
direct staff to prepare a warrant to CR&R Environmental Services for
$238,899.40 for November 2021 collection
Recommendation: That the Board of Directors accept the occupancy count as
presented using 23,052 as the correct number of active units and direct staff to
prepare a warrant to CR&R Environmental Services for November 2021 collection
based on this occupancy report so long as the contractor fulfills the obligations of
the agreement in the amount of $238,899.40 to be ratified in the December 2021
warrant list.
Action (Consent): 12. Approve the Investment Report for the Month of October
2021
Recommendation: That the Board of Directors approve the Investment Report for
the month of October 2021.
Action (Consent): 13. Approve the Investment Report for the Month of
November 2021
Recommendation: That the Board of Directors approve the Investment Report for
the month of November 2021.
Action (Consent): 14. Approve the 2022 Meeting and Office Closure Calendar
Recommendation: That the Board of Directors approve the Costa Mesa Sanitary
District 2022 Meeting and Office Closure Calendar as presented.
Action (Consent): 15. Receive and File the October 2021 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.
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Motion by Art Perry, second by Mike Scheafer.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Brett Eckles
There was no further discussion.
D. PUBLIC HEARINGS
None at this time.
E. GENERAL MANAGER'S REPORTS
Action, Receive and file: 1. Receive and File the Annual Comprehensive
Financial Report, Auditor's Report in Accordance with Government Auditing
Standards, and the Auditors' Required Communication for the year ended
June 30, 2021.
Recommendation: That the Board of Directors receive and file:
1. The Annual Comprehensive Financial Report for Year Ended June 30, 2021,
2. Auditors' Report in Accordance with Government Auditing Standards, and
3. The Auditors' Required Communication for the Year Ended June 30, 2021.
Finance Manager, Kaitlin Tran, presented report details. She noted that the
report's name was changed from the Comprehensive Annual Financial
Report (CAFR) to the Annual Comprehensive Financial Report (ACFR). She
reviewed the report's financial highlights for the year ended June 30, 2021.
She stated that the District is 92% funded for its pension liability, while its
other post -employment benefits (OPEB) are fully funded. She shared that
Joshua Calhoun of Teaman Ramirez & Smith, Inc, the District's independent
auditing firm, is available for questions.
Mr. Calhoun thanked District staff for their assistance throughout the audit
process. He shared that, due to the ongoing COVID-19 pandemic, the audit
was performed remotely. He discussed the purpose of the audit, which was
to provide an opinion on the District's financial statements. He stated that
they have issued an unmodified opinion, which is also referred to as a
"clean" opinion. He discussed the independent auditors' report and two
other letters as part of the audit (internal control and compliance report and
auditor communication letter).
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Director Perry inquired if the District should consider increasing its pension
liability from 92% to 100% funded.
District Treasurer, Marc Davis, stated that the District's pension liability will
probably never be 100% funded. He noted that it will always be
underfunded because it is calculated two years behind. He shared that the
District is well -funded compared to other agencies. He stated that if the
District has extra funds, then the Board can consider fully funding its
pension liability.
There was no further discussion, and the report was received.
Action, Receive and File: 2. Receive and File the 2022 Sewer Rate Study
Preliminary Draft Report and Approve Setting a Public Hearing Date on
February 28, 2022 to Consider Adopting New Wastewater Rates to go into
Effect on July 1, 2022.
Recommendation: That the Board of Directors:
1. Receive and File the 2022 Sewer Rate Study Preliminary Draft Report and
2. Approve Setting a Public Hearing Date on February 28, 2022 to Consider
Adopting New Wastewater Rates to go into Effect on July 1, 2022.
President Ooten introduced the item.
General Manager, Scott Carroll, presented report details. He shared that the
Board received three presentations related to wastewater rate adjustments.
He stated that the District's consultant, Robert D. Niehaus, Inc. (RDN),
presented five options at the December Study Session and that the Board
directed District staff to present one of the five options at the December
Board meeting and approve setting a public hearing date on February 28,
2022 to consider adopting new wastewater rates. He presented a plan to host
a rate study workshop on January 26, 2022 as a hybrid meeting. He added
that the District will have a dedicated webpage for the wastewater rate
study.
Vice President Scheafer asked if the public hearing has to be separate from
a public meeting.
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District Counsel, Alan Burns, stated that the public hearing can be part of a
regular Board meeting.
Director Perry inquired about the proposed monthly wastewater rate.
Mr. Carroll reiterated the proposed wastewater rates.
Director Perry suggested using the rate figures when sharing information
with the public.
Mr. Carroll stated that the District's wastewater rates are still below the
average rate of other agencies that only provide wastewater collection.
Director Eckles expressed support for advertising the dollar amount rather
than the percentage amount.
President Ooten shared that the Board had a similar discussion regarding
rates in 2006.
Director Eckles shared that the Mesa Water District is experiencing the same
issues. He added that dollar amounts are more palatable for the public.
Motion: To:
1. Receive and File the 2022 Sewer Rate Study Preliminary Draft Report
and
2. Approve Setting a Public Hearing Date on February 28, 2022 to
Consider Adopting New Wastewater Rates to go into Effect on July 1,
2022.
Motion by Mike Scheafer, second by Arlene Schafer.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Brett Eckles
There was no further discussion.
Action: 3. Award Joel Ortiz, Wastewater Maintenance Worker III, $1,000 for his
Idea to Change the Scope of Work for Project #340 that will Save the District
$50,000 in Construction Cost.
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Recommendation: That the Board of Directors award Joel Ortiz, Wastewater
Maintenance Worker III, $1,000 for his idea to change the scope of work for Project
#340 that will save the District $50,000 in construction cost.
President Ooten provided an overview of the item.
Director Eckles thanked Wastewater Maintenance Worker III, Joel Ortiz, for
his idea to save District funds.
Mr. Carroll shared that Mr. Ortiz offered his suggestion at an all -staff
meeting.
Vice President Scheafer asked if the level of the reward is based on the
amount of money saved by the idea.
Mr. Carroll stated that it depends on the idea. He noted that some rewarding
ideas have no tangible savings like safety improvements. He shared that this
is the first time the District has awarded an employee $1,000 for their
rewarding idea, which is the highest amount.
Motion: To award Joel Ortiz, Wastewater Maintenance Worker III, $1,000 for
his idea to change the scope of work for Project #340 that will save the
District $50,000 in construction cost.
Motion by Art Perry, second by Arlene Schafer.
Motion by Brett Eckles, second by Mike Scheafer.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
There was no further discussion.
Action: 4. Adopt Resolution No. 2021-949 Supporting Federal Polyfluoroalkyl
Substances (PFAS) Legislation to Protect Ratepayers and Water/Wastewater
Agencies.
Recommendation: That the Board of Directors approves adopting Resolution No.
2021-949 and authorize President Ooten to sign letters supporting federal
polyfluoroalkyl substances legislation to protect ratepayers and water/wastewater
agencies.
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President Ooten introduced the item.
Mr. Carroll presented report details. He shared that the Orange County
Water District (OCWD) is working with water agencies and stakeholders to
address polyfluoroalkyl substances (PFAS) in the OCWD Groundwater Basin.
He stated that PFAS chemicals were used to make Teflon or nonstick
cookware. He added that PFAS are widely used to coat paper and cardboard
wrappers for fast food and baking goods. He shared that these chemicals
have been discharged into the Groundwater Basin throughout the years and
that the OCWD is spending over $1 billion dollars cleaning that water. He
noted that OCWD is also at risk of being sued under current federal pollution
laws. He added that the federal government is considering legislation that
would make public water and wastewater agencies exempt from being held
liable for PFAS. He stated that OCWD and the Orange County Sanitation
District (OCSD) have asked the District for assistance by adopting a
resolution of support.
Director Eckles stated that this proposed amendment was passed by the
House of Representatives. He asked if the Senate has reviewed it.
Mr. Carroll stated that he unsure about its position in Congress.
President Ooten stated that most of the PFAS in the OCWD Groundwater
Basin comes from upstream sewer treatment plants. He shared that many
cities are spending a lot of money to help clean this water.
Discussion followed regarding the ubiquitous nature of PFAS and the status
of the bill in Congress.
Motion: To approve adopting Resolution No. 2021-949 and authorize
President Ooten to sign letters supporting federal polyfluoroalkyl substances
legislation to protect ratepayers and water/wastewater agencies.
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
There was no further discussion.
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Action: 4. Consider Adopting Resolution No. 2021-950 Certifying that Certain
Charges are Delinquent and Unpaid for 60 Days and Requesting that the
County Recorder File Those Charges as a Lien (Peter Bedford 1826 Pomona
Avenue, Costa Mesa, CA).
Recommendation: That the Board of Directors adopt Resolution No. 2021-950
Certifying that Certain Charges are Delinquent and Unpaid for 60 Days and
Requesting that the County Recorder File Those Charges as a Lien (Peter Bedford
1826 Pomona Avenue, Costa Mesa, CA)
President Ooten introduced the item.
Vice President Scheafer asked if the property owner has contacted the
District.
Mr. Carroll stated that the property owner has not tried to contact the
District.
Director Perry asked if Peter Bedford is the resident or property owner.
Mr. Carroll stated that Mr. Bedford is the property owner and that he lives
in Huntington Beach.
Director Eckles asked how the property owner will be notified if this
resolution is adopted.
Mr. Carroll stated that, if the resolution passes, then the District will send the
resolution to the County of Orange, who will place a lien on the owner's
property tax bill. He noted that the District has already notified the property
owner. He confirmed that the amount listed in the resolution reflects the lien
amount.
Director Perry asked if the lien would incur interest if the owner does not
pay his bill.
Mr. Burns confirmed that interest will accrue. He noted that if it is not paid
within 10 years, then the District will have to renew the resolution to renew
the lien.
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Discussion followed regarding the owner's property bill lien.
Motion: To adopt Resolution No. 2021-950 Certifying that Certain Charges are
Delinquent and Unpaid for 60 Days and Requesting that the County Recorder
File Those Charges as a Lien (Peter Bedford 1826 Pomona Avenue, Costa
Mesa, CA)
Motion by Mike Scheafer, second by Brett Eckles.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
There was no further discussion.
F. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File the Monthly Capital Improvement
Projects Status Report
Recommendation: That the Board of Directors receive and file the Capital
Improvement Projects Status Report.
President Ooten introduced the item.
Mr. Esquer stated that the District currently has eight active projects. He
reported that capital improvement project (CIP) #318 President Pump
Station Reconstruction will be completed in January 2022. He stated that CIP
#326 19t` Street Force Main Replacement has been completed. He reviewed
the status of the remaining CIPs.
Director Perry asked if the status updates referred to the current fiscal year.
Mr. Esquer confirmed that he was referring to the current fiscal year.
Vice President Scheafer inquired about the smoke studies performed at the
Orange County Fairgrounds.
Mr. Esquer stated that the smoke studies helped determine if there were
open drains and connections that allowed rain into the sewer system. He
reported that the County of Orange and the Orange County Sanitation
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District (OCSD) covered the open drains and connections. He added that he
will work with District staff to perform re -inspections of the Orange County
Fairgrounds.
Director Perry asked if there were other smoke studies performed
throughout the District's service area.
Vice President Scheafer stated that there were smoke studies performed in
Mesa Del Mar neighborhood.
Mr. Carroll stated that one of his goals is to review OCSD's Inflow and
Infiltration (I/I) studies and develop a plan to reduce inflow. He shared that
OCSD's studies reported that the Fairview Road trunk sewer, which is
connected to the District's sewer line, is experiencing inflow. He stated that
the District will be televising, plugging and sealing those lines to see if it
produces an impact. He provided an update on the Orange County
Fairgrounds and reported that, during the last period of rain (before last
week's rainstorm), the calculation was below the 2% ingress goal that the
District is trying to achieve.
President Ooten stated that OCSD has delayed the enlargement of the
Fairview Road trunk sewer.
Mr. Esquer stated that he discussed the District's Manhole Plugging Program
and relining work with OCSD. He shared that the District's activities have
resulted in reduced inflow. He discussed performing a study to determine
which sub -trunks are producing inflow.
Director Perry inquired about Costa Mesa High School's inflow impact.
Discussion followed regarding the area surrounding Costa Mesa High School
and the Fairview Developmental Center.
There was no further discussion, and the report was received.
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Action: 2. Project No. 326 191h Street Force Main Replacement: Accept
Improvements as Completed, File Notice of Completion, Exonerate Labor and
Materials Bond and Exonerate Faithful Performance Bond.
Recommendation: That the Board of Directors:
1. Accept improvements as completed and file a Notice of Completion
2. Exonerate Labor and Material Bond 35 days after Notice of Completion is
recorded; and
3. Exonerate Faithful Performance Bond one year after Notice of Completion
is recorded.
President Ooten introduced the item.
Mr. Esquer stated that CIP #32619th Street Force Main Replacement replaced
the old asbestos force main and was completed on October 16, 2021.
Director Eckles asked if there were any stop notices or change orders issued.
Mr. Esquer discussed a few of the change orders and noted that they were
all less than 10% of the approved contingency plan.
Motion: To:
1. Accept improvements as completed and file a Notice of Completion
2. Exonerate Labor and Material Bond 35 days after Notice of Completion is
recorded; and
3. Exonerate Faithful Performance Bond one year after Notice of
Completion is recorded.
Motion by Brett Eckles, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
There was no further discussion.
G. TREASURER'S REPORTS
None at this time.
H. ATTORNEY'S REPORTS
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Action: 1. Consider Adopting Resolution No. 2021-951 Authorizing Remote
Meetings
Recommendation: That the Board of Directors Adopt Resolution No. 2021-948
Authorizing Remote Meetings.
President Ooten introduced the item.
Motion: To adopt Resolution No. 2021-951 Authorizing Remote Meetings.
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
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.
1. Orange County Sanitation District (OCSD) - (President Ooten)
President Ooten shared that he attended two OCSD meetings. He stated that
he will be submitting his reimbursement report with meeting details. He
noted that he does not receive payment from the District to attend OCSD
meetings since he is paid by OCSD.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry stated that there was no SARFPA meeting this month.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
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Secretary Schafer shared that ISDOC had a Board meeting via Zoom because
their facility is being renovated. She stated that they discussed the legislative
report and the new ISDOC website. She added that the next meeting is
January 27, 2022 and that Carolyn Emery, the Chief Executive Officer of the
Local Agency Formation of Orange County (LAFCO), is the guest speaker.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer shared that she attended a CSDA Board meeting on
November 18, 2021 and a CSDA Finance Corporation meeting on November
19, 2021. She stated that the Executive Board drafted their planning session
for the next year, which will be held at the Coronado Island Marriott Resort
from January 21-23, 2022.
S. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
Vice President Scheafer stated that there was no SDRMA meeting this month.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Vice President Scheafer inquired about the January Liaison Committee
meeting.
Ms. Middenway stated that the Liaison Committee will meet on January 28,
2022 at District Headquarters. She noted that the Liaison Committee
typically meets on the third Friday in January, but the District is closed that
day.
Secretary Schafer inquired about holiday leave time for District staff.
Mr. Carroll stated that the District approved Christmas Eve and New Year's
Eve as additional holidays.
Secretary Schafer commented that all the cities and school districts seem to
give more time off for their workers.
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President Ooten stated that the District approved the additional holidays a
few years ago.
Vice President Scheafer stated that the City of Costa Mesa is closed between
Christmas and New Year. He asked if the District has considered a similar
schedule.
Mr. Carroll stated that he is unsure if the City's closure is mandatory or
voluntary for City employees.
Vice President Scheafer stated that he is interested in the City's policy
regarding their holiday closure and asked Mr. Carroll to present this
information to the Board.
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 Perry commented that the District is receiving COVID-19 relief
funding from the federal government. He asked how this funding will be
utilized.
Mr. Carroll stated that the funds will help replenish accounts that lost
revenue.
Director Perry asked if these funds are restricted.
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Mr. Carroll stated that the District has some flexibility in applying these
funds but that a certain amount must be allocated for solid waste and
wastewater services.
Secretary Schafer commended District staff for their household hazardous
waste door hanger.
Vice President Scheafer discussed a recent 60 Minutes episode regarding
straight line sewer systems, which are primarily found in low income areas
with mobile homes.
Director Eckles inquired about CR&R's current labor agreement.
Discussion followed regarding the truck drivers' union.
Director Eckles commented that today is his one-year anniversary since
joining the Board. He thanked District staff and the Board for their help and
wished everyone a Merry Christmas and Happy New Year.
President Ooten commented that the District received a substantial amount
of money through the federal government and CSDA. He stated that the
federal infrastructure bill recently passed. He requested for District staff to
research available CIP funding through that bill.
Mr. Carroll shared that he has been in contact with CSDA about project
funding.
Mr. Esquer shared that he can check with OCSD's legislative team if the
District's wastewater projects qualify for funding.
Vice President Scheafer thanked Mr. Burns for his synopses on new
legislation.
Mr. Burns stated that, according to the District's contract with CR&R, CR&R
is required to notify the District about labor disputes and negotiations.
There was no further discussion.
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M. ADJOURN TO CLOSE 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, January 24, 2021.
President Ooten adjourned the meeting at 5:39 P.M.
Arlene Schafer
Secretary
Bob Cloten
President
'Ilk