Minutes - Board - 2022-01-24COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
JANUARY 24, 2022
NOTE: THIS 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, Mike Scheafer
Members absent
Brett Eckles
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public
Information Officer), Alan Burns (District Counsel), Kaitlin Tran (Finance
Manager), Dyana Bojarski (Administrative Services Manager), Marc Davis (District
Treasurer), Mark Esquer (District Engineer), Gina Terraneo (Management Analyst
II)
Others present
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, and Director Perry were present while Director Eckles
was not 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.
Ms. Middenway stated that the District did not receive any late
communications. She noted that Director Eckles' absence is excused from
this meeting due to illness.
Procedural: 6. Ceremonial Matters and Presentations.
Secretary Schafer requested to adjourn tonight's meeting in honor of Bill
Nelson.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Ooten opened public comments. Hearing none, he closed public
comments.
C. CONSENT CALENDAR
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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 December 14, 2021
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 December 20, 2021
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2022-07 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2022-07 approving District warrants for the month of December in the amount of
$573,909.43.
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 December
2021
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the
amount of $211,640.96 for December 2021 recycling and disposal services in
the January 2022 warrant register
Recommendation: That the Board of Directors approves the preparation of a
warrant to CR Transfer in the amount of $211,640.96 for December 2021 recycling
and disposal services to be ratified in the January 2022 warrant register.
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Action (Consent): 8. Accept the occupancy count as presented as 23,058 and
direct staff to prepare a warrant to CR&R Environmental Services for
$238,961.58 for December 2021 collection
Recommendation: That the Board of Directors accept the occupancy count as
presented using 23,058 as the correct number of active units and direct staff to
prepare a warrant to CR&R Environmental Services for December 2021 collection
based on this occupancy report so long as the contractor fulfills the obligations of
the agreement in the amount of $238,961.58 to be ratified in the January 2022
warrant list.
Action (Consent): 9. Receive and File the December 2021 Solid Waste Diversion
Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 10. Receive and File the December 2021 Organics Tonnage
Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 11. Receive and File the December 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.
Motion by Mike Scheafer, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
Not Present: 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 Fiscal Year 2021-22 Mid -Year
Budget Review
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Recommendation: That the Board of Directors receive and file the Fiscal Year 2021-
22 Mid -Year Budget Review.
President Ooten introduced the item.
There was no discussion, and the report was received.
Action, Receive and File: 2. Popular Annual Financial Report (PAFR) for the
Year Ended June 30, 2021
Recommendation: That the Board of Directors receive and file the Popular Annual
Financial Report (PAFR) for the Year Ended June 30, 2021.
President Ooten introduced the item. He shared that the District is one of
only a few public agencies that produces this report.
There was no further discussion, and the report was received.
Action, Receive and File: 3. Receive and File FY 2020-25 Strategic Plan Progress
Report — FY 2021-22 Second Quarter
Recommendation: That the Board of Directors receive and file this report.
President Ooten introduced the item.
Vice President Scheafer inquired about the District's Compost Giveaway
event.
Mr. Carroll stated that the event was postponed last year due to the COVID-
19 pandemic.
Vice President Scheafer asked if the District used to give away compost
receptacles.
Mr. Carroll stated that the previous Compost Giveaway event accepted
clothing donations and distributed bags of compost to District customers. He
shared that the District will be hosting a shredding event this year as well as
a compost event. He noted that the two events may be combined into one.
Vice President Scheafer stated that, due to Senate Bill (SB) 1383, there has
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been a lot of discussion about composting on social media. He recommended
educating the public about CR&R's composting efforts.
Discussion followed regarding composting.
Mr. Carroll stated that District staff is in the preliminary phase of planning
the shredding and compost event. He noted that staff will be discussing this
event with the City of Costa Mesa.
Secretary Schafer discussed Emergency Operations Center (EOC) planning
and recommended for the Board to be involved in the process.
Mr. Carroll confirmed that, if the District's EOC is activated, then the Board
has a role in carrying out emergency management procedures. He added
that the Board will be included in the training process.
President Ooten asked who supplies the compost for the event.
Mr. Carroll stated that the compost is provided by CR&R and that it comes
from CR&R's Anaerobic Digestor Facility.
Vice President Scheafer inquired about other areas that may require smoke
testing.
Mr. Carroll stated that there are currently no areas that require smoke
testing. He noted that the District experienced rain ingress during the last
rain event, which he will be discussing with District Engineer, Mark Esquer,
to determine if there were inflow issues in the Fairview trunk area.
Discussion followed regarding inflow.
There was no further discussion, and the report was received.
Action, Receive and File: 4. Receive and File 2021 Annual Performance
Measurement Report
Recommendation: That the Board of Directors receive and file this report.
President Ooten introduced the item.
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Vice President Scheafer inquired about Mr. Carroll's opinion of the report
and noted that there were many green measures and some red measures.
Mr. Carroll stated that measures coded in red refer to goals that have not
been achieved. He noted that there can be various reasons why goals are not
achieved and explained that some goals may need to be updated to be
achievable.
Vice President Scheafer inquired about the measure of issuing emergency
repair permits within 24 hours.
Mr. Carroll stated that, for that measure, the District requires permittees to
provide certain insurance documents, which can delay the processing time.
He shared that some applicants did not submit their insurance documents
in a timely manner in order for their emergency permit to be processed in
24 hours. He noted that these instances skewed the overall data for this
measure. He stated that the District is hoping to improve on this goal to
achieve the benchmark.
There was no further discussion, and the report was received.
Action, Receive and File: S. Receive and File General Manger's 2021
Performance Goals
Recommendation: That the Board of Directors receive and file the General
Manager's 2021 Performance Goals and prepare a list of Performance Goals for
2022.
President Ooten introduced the item.
Mr. Carroll stated that all ten goals were achieved in 2021.
Director Perry inquired about the fourth goal on the report. He asked if the
District has developed a plan to collect electronic devices.
Mr. Carroll stated that District staff has developed a plan for a paper
shredding event and a cardboard recycling event. He added that the budget
for each event has been developed and that District staff is currently
reviewing the logistics. He noted that the District has not planned an
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electronic waste event but that those materials can be collected as part of
the Household Hazardous Waste (HHW) program.
Director Perry expressed support for hosting an electronic waste event. He
asked if Mr. Carroll enjoys working with the California Special Districts
Association (CSDA).
Mr. Carroll stated that he enjoys his participation in CSDA very much. He
shared that he will be leading the good governance workshop at CSDA's
Special District Leadership Academy.
Secretary Schafer expressed recognition for Mr. Carroll's involvement in
CSDA.
President Ooten shared that he is currently working on the General
Manager's goals for next year with Mr. Carroll. He asked when those goals
will be presented to the Board.
Mr. Carroll stated that he emailed the goals to the Board for discussion
during closed session at tonight's meeting.
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 Improvement
Projects Status Report
Recommendation: That the Board of Directors receive and file the Capital
Improvement Projects Status Report.
President Ooten introduced the item.
Director Perry asked if the work at President Pump Station has been
completed.
Mr. Esquer stated that the project is still underway and should be completed
in February. He provided an update on other engineering projects. He noted
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that he will be meeting with the Orange County Sanitation District (OCSD) to
discuss the regional sewer connection at Gisler Avenue.
Discussion followed regarding OCSD.
President Ooten offered to assist Mr. Esquer in discussing the project with
OCSD management.
Mr. Esquer noted that there was a typo in the report for Capital
Improvement Project #337. He stated that the proposed project is less than
$800 (not $80).
There was no further discussion, and the report was received.
G. TREASURER'S REPORTS
Action: 1. Approve the Investment Report for the Month of December 2021
Recommendation: That the Board of Directors approve the Investment Report for
the month of December 2021.
President Ooten introduced the item.
District Treasurer, Marc Davis, provided report details. He stated that there
have been major market fluctuations during the first part of the year, likely
due to tensions surrounding Ukraine and potential increases to interest rates
by the Federal Reserve. He added that three purchases were made in
December 2021.
Vice President Scheafer asked to review the interest rate comparison chart
on page 3 of the report.
Mr. Davis stated that the District's rate is substantially higher than the Local
Agency Investment Fund (LAIF).
Discussion followed regarding interest rate stability.
Vice President Scheafer expressed recognition for Mr. Davis' report.
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Director Perry asked if Mr. Davis works with other public agencies and how
the District's investments compare to other agencies.
Mr. Davis stated that he works with multiple public agencies and that each
agency is different based on their investment policy and risk tolerance. He
shared that some agencies might earn more if they have more commercial
investments and some agencies might earn less if they are more
conservative. He noted that the District's investment activity is average
compared to other public agencies.
Motion: To approve the Investment Report for the month of December 2021.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
Not Present: Brett Eckles
There was no further discussion.
H. ATTORNEYS REPORTS
Action: 1. Consider Adopting Resolution No. 2022-952 Authorizing Remote
Meetings
Recommendation: That the Board of Directors Adopt Resolution No. 2022-952
Authorizing Remote Meetings.
President Ooten introduced the item.
Director Perry asked if District staff will be returning to the office on January
31, 2022.
Mr. Carroll provided an update regarding the COVID-19 pandemic for the
Orange County area. He noted that District staff may continue to
telecommute if hospitalization cases for the coronavirus continue to trend
upwards.
Director Perry asked if anyone on staff has contracted the virus presently.
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Mr. Carroll stated that no staff members presently have coronavirus. He
noted that he will update the Board of his decision to reopen District offices.
Motion: To adopt Resolution No. 2021-951 Authorizing Remote Meetings.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
Not Present: Brett Eckles
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 days 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 OCSD's Groundwater
Replenishment Steering Committee meeting.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry stated that there will be a SARFPA meeting Thursday, January
27, 2022, but he will be out of town. He asked if President Ooten can attend
on his behalf.
President Ooten stated that he might be able to attend the meeting.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
Secretary Schafer shared that the new association member was introduced
at the ISDOC Board meeting. She stated that ISDOC is inviting special district
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members to contribute to their website. She discussed new ISDOC dues and
noted that there will be no dues for 2022. She shared that Carolyn Emery of
the Orange County Local Agency Formation Commission of Orange County
(OC LAFCO) is the speaker for an ISDOC meeting scheduled this Thursday,
January 27, 2022. She noted that the meeting will also feature Mesa Water
District.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer shared that she attended a CSDA Board meeting on Friday,
January 21, 2022. She stated that she was re-elected to CSDA's Alliance
Committee for another two years. She added that CSDA thanks every special
district that has written support letters to legislators. She discussed ballot
initiative 21-004281.
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
Vice President Scheafer shared that he attended an SDRMA meeting and was
selected as Board President for 2022.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Secretary Schafer shared that she attended a Costa Mesa Chamber of
Commerce Government Affairs Committee meeting and a Water Advisory
Committee of Orange County (WACO) meeting.
Director Perry shared that he attended the City of Costa Mesa's voting
districts workshop. He reported that only District 4 will be adjusted. He
recited the rules and goals of redistricting.
Discussion followed regarding future City of Costa Mesa redistricting
meetings.
President Ooten shared that he also attended the WACO meeting. He
reported that the Central Valley's water supply is low so they created a tile
system to collect more water. He shared that he met with Mr. Carroll to
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discuss the District's Proposition 218 notice, the District's vaccination
process, negotiations with CR&R, CR&R service issues, and hiring a
demographer for redistricting. He announced that the District hired a new
Wastewater Maintenance Worker II.
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
Vice President Scheafer asked if Mr. Carroll will be providing a presentation
at the January 26th Wastewater Workshop meeting.
Mr. Carroll stated that he will be providing a presentation and that it is not
considered a Board meeting.
District Counsel, Alan Burns, stated that only two Board members may
participate in the workshop.
The Board agreed to attend the meeting but not participate in the discussion.
Vice President Scheafer commented that the waste hauler that services his
property in Palm Springs, Burrtec, allows customers to place five large items
out for disposal per week.
Secretary Schafer commented that the City of Newport Beach allows five
large item pickups per year. She also confirmed that the Liaison Committee
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meeting has been cancelled for this month and rescheduled for February 11,
2022 at 8:00 a.m.
There was no further discussion.
M. ADJOURN TO CLOSE SESSION
Discussion: 1. Performance evaluation (Gov. Code §54957) Title: General Manager
President Ooten adjourned to closed session at 5:38 p.m.
Mr. Burns stated that the closed session is to discuss a performance
evaluation per Gov. Code 54957 for the General Manager, where the
designated labor negotiator/agency designated representative is President
Ooten and the unrepresented party is the General Manager.
Discussion: 2. Conference with labor negotiator (Gov. Code §54957.6) Agency
Designated Representative: President Ooten Unrepresented party: General
Manager
President Ooten adjourned to closed session at 5:38 p.m.
N. RECONVENE TO OPEN SESSION
1. Report Out of Closed Session
President Ooten reconvened from closed session at 6:03 p.m. and noted that
no reportable action was taken during the closed session.
O. CLOSING ITEMS
Procedural: 1. Adjourn - The next meeting of the Costa Mesa Sanitary District
Board of Directors will be held on Monday, February 28, 2021.
President Ooten adjourned the meeting at 6:03 p.m. in honor of Bill Nelson
who served on the Orange County Cemetery District and was a past
President of CSDA.
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Arlene Schafer
Secretary
Bob Ooten
President
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