Minutes - Board - 2023-02-27COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
FEBRUARY 27, 2023
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, Mike Scheafer
Members absent
Brett Eckles
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public
Information Officer), Gina Terraneo (Management Analyst II), Kaitlin Tran
(Finance Manager), Dyana Bojarski (Administrative Services Manager), Mark
Esquer (District Engineer), Alan Burns (District Counsel), Marc Davis (District
Treasurer), Nabila Guzman (Management Analyst I)
Others present
Michael Tou, Citizens Advisory Committee Member
Mike Carey, CR&R Environmental Services
Tom Chandler, member of the public
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.
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Procedural: 2. Pledge of Allegiance — President Scheafer
President Scheafer led the Pledge of Allegiance.
Procedural: 3. Invocation — Vice President Schafer
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, and Vice Secretary Ooten 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.
None.
Procedural: 6. Ceremonial Matters and Presentations.
None.
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
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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 January 10, 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 January 23, 2023
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent), Minutes: 4. Approve the City/Districts Liaison Committee
Meeting Minutes of January 27, 2023
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): S. Approve Payroll Transparency Disclosure for January
2023
Recommendation: That the Board of Directors approve and file the report.
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. Adopt Warrant Resolution No. CMSD 2023-08 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No.
CMSD 2023-08 approving District warrants for the month of January in the
amount of $619,381.32.
Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in
the amount of $184,664.90 for December 2022 recycling and disposal services
in the February 2023 warrant register
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Recommendation: That the Board of Directors approves the preparation of a
warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling
and disposal services to be ratified in the February 2023 warrant register.
Action (Consent): 9. Accept the occupancy count as presented as 23,091 and
direct staff to prepare a warrant to CR&R Environmental Services for
$246,004.59 for January 2023 collection
Recommendation: That the Board of Directors accept the occupancy count as
presented using 23,091 as the correct number of active units and direct staff to
prepare a warrant to CR&R Environmental Services for January 2023 collection
based on this occupancy report so long as the contractor fulfills the obligations of
the agreement in the amount of $246,004.59 to be ratified in the February 2023
warrant list.
Action (Consent): 10. Receive and File the December 2022 Organics Tonnage
Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 11. Receive and File the December 2022 Solid Waste
Diversion Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 12. Receive and File the December 2022 and January 2023
Contracts Signed by the General Manager
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 13. Receive and File 2022 Annual Health Benefits Broker
Fees Report
Recommendation: That the Board of Directors receive and file this report.
Motion: To approve the Consent Calendar as presented.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Absent: Brett Eckles
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D. PUBLIC HEARINGS
None at this time.
E. GENERAL MANAGER REPORTS
Action, Receive and File: 1. Receive and File the Fiscal Year 2022-23 Mid -Year
Budget Review
Recommendation: That the Board of Directors receive and file the Fiscal Year
2022-23 Mid -Year Budget Review.
Finance Manager, Kaitlin Tran, provided report details. She stated that this
report is based on the amended budget as of December 31, 2022. She
reported that 44.2% of the Solid Waste Fund has been expended and that
staff anticipates a budgetary savings of $418,900. She stated that the
District has received approximately $3.9 million in Solid Waste revenue.
She shared that 52.4% of the Wastewater Fund has been expended and that
staff anticipates a budgetary savings of $47,000. She stated that the District
has received approximately $4 million in Wastewater revenue.
Vice Secretary Ooten asked if the revenue amounts include the District's
new Wastewater fees.
Ms. Tran confirmed that the new Wastewater fees are included in the
revenue data.
There was no further discussion, and the report was received.
Action: 2. Communications Plan for 3-Cart Rollout
Recommendation: That the Board of Directors receives and files this report.
Management Analyst I, Nabila Guzman, introduced the item.
Management Analyst II, Gina Terraneo, provided report details. She
discussed the goals, distribution strategies, budget, timeline, and
performance measures of the communications plan.
President Scheafer inquired about the locations of the town hall meetings.
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General Manager, Scott Carroll, stated that the town halls will be hosted in
strategic locations throughout the District's service area.
President Scheafer suggested distributing this information through the
elected officials that represent the District's service area such as the state
senator, Orange County supervisor, and assemblyperson. He noted that
some customers may complain about the removal of their organics -exempt
status. He expressed support for distributing information through the
Newport -Mesa Unified School District (NMUSD).
Secretary Perry suggested sharing this information at Costa Mesa City
Council meetings. He asked if CR&R will be informing customers about the
available cart sizes.
CR&R representative, Mike Carey, confirmed that CR&R will be mailing
surveys regarding cart sizes and level of service to trash customers. He
shared that CR&R has completed its trash cart audits.
Discussion followed regarding organics recycling exemptions and trash
carts in public view.
Vice Secretary Ooten recommended emphasizing the fact that these
changes to trash service are required by state law.
Secretary Perry asked if there will be exemptions for properties whose
green waste is collected by landscapers.
Mr. Carroll stated that there are no exemptions for residential properties.
He noted that the Organics Recycling Cart can still be used to collect food
waste.
Vice Secretary Ooten discussed the City of Costa Mesa's ordinance
regarding carts designated for collecting food waste. He recommended
staying informed of the City's communications regarding organic waste.
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President Scheafer requested for CR&R to display the different cart lids at
the future town hall meetings.
Mr. Carey confirmed that CR&R can provide the lids and small -sized carts.
Discussion followed regarding trash service for multi -family complexes
and landscaping waste.
President Scheafer expressed recognition for the communications plan and
congratulated Ms. Guzman on her new job with the City of Laguna Beach.
There was no further discussion, and the report was received.
Action: 3. Considers Nominating Vice President Arlene Schafer as a
Candidate to Serve CSDA Board of Directors Seat C - Southern Network
Recommendation: That the Board of Directors approve nominating and
supporting Vice President Arlene Schafer as a candidate for the California Special
Districts Association Board of Directors Seat C - Southern Network.
Mr. Carroll presented nomination details.
Motion: To approve nominating and supporting Vice President Arlene
Schafer as a candidate for the California Special Districts Association Board
of Directors Seat C - Southern Network.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Absent: Brett Eckles
Director Perry asked when the election takes place.
President Scheafer stated that all votes must be submitted by July 14, 2023.
There was no further discussion.
F. ENGINEER'S REPORTS
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Action, Receive and File: 1. Receive and file the District Engineer's and Capital
Improvement Status Report
Recommendation: That the Board of Directors receive and file the Engineer's
Report.
District Engineer, Mark Esquer, presented report details. He shared that
Ms. Tran and the Finance staff helped to provide a clearer financial report
regarding capital improvement projects (CIPs). He provided updates
regarding siphon rehabilitations and manhole repairs. He added that he
will be presenting his recommendation for the Elden Force Main
Redundancy Project at the next Board meeting.
President Scheafer inquired about the recent rain events.
Mr. Esquer stated that next month's report will have more data regarding
infiltration and inflow (I/I) from the recent rain events.
Vice Secretary Ooten stated that I/I depends on the pattern of rainfall.
There was no further discussion, and the report was received.
G. TREASURER'S REPORTS
Action: 1. Approve the Investment Report for the Month of January 2023
Recommendation: That the Board of Directors approve the Investment Report for
the month of January 2023.
District Treasurer, Marc Davis, presented report details. He provided an
update on the District's participation in the California Cooperative Liquid
Assets Securities System (CLASS).
President Scheafer asked if only special districts are allowed to invest in
CLASS.
Mr. Davis stated that CLASS is marketed to all government agencies.
Motion: To approve the Investment Report for the month of January 2023.
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Motion by Arlene Schafer, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Absent: Brett Eckles
There was no further discussion.
H. ATTORNEY'S REPORTS
District Counsel, Alan Burns, noted that there is no report because the
teleconferencing regulations under AB 361 expire tomorrow.
The Board discussed telecommuting regulations regarding appointed
officials and alternate positions.
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)
Vice Secretary Ooten shared OCSD updates. He stated that there will be a
celebration for the Groundwater Replenishment System in April. He
discussed issues related to sea level and tide changes. He mentioned that
OCSD is building a new headquarters on Ellis Avenue.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Secretary Perry stated that there was no SARFPA meeting for this month.
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3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
Vice President Schafer stated that the ISDOC quarterly meeting had an
environmental reporter as the guest speaker. She shared that Rick Howard
of Orange County Mosquito and Vector Control is retiring.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Vice President Schafer provided updates regarding her CSDA
appointments.
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
President Scheafer stated that SDRMA's Annual Safety Claims Day will be
taking place on March 22nd in Sacramento.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Vice President Schafer shared that she attended a Water Advisory
Committee of Orange County (WACO) meeting.
Vice Secretary Ooten provided a brief overview of the WACO meeting.
Discussion followed regarding the Prado Dam.
President Scheafer shared that he attended the Orange County Council of
Governments (OCCOG) Board meeting. He discussed Senate Bill 411. He
stated that OCCOG's General Assembly will take place on March 23rd at the
Richard Nixon Presidential Library.
Vice Secretary Ooten mentioned that OCSD meetings are now taking place
in -person.
President Scheafer shared that ISDOC is hoping to resume in -person
meetings, but that they can longer meet at the Municipal Water District of
Orange County (MWDOC) due to construction. He noted that the Board
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needs an updated meeting reimbursement form due to the new mileage
amounts.
There was no further discussion.
i. 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 Secretary Ooten commented on pension liability and requested to
review the District's position.
Secretary Perry stated that the District still has a pension balance.
Discussion followed regarding the District's policy for pension liabilities.
Vice President Schafer expressed recognition for the District's Annual
Comprehensive Financial Report (ACFR). She suggested including page
numbers on all staff reports.
President Scheafer inquired about medication disposal.
Mr. Carroll stated that most pharmacies have drop boxes for medications.
President Scheafer discussed CSDA's webinar on emergency preparedness
and cybersecurity. He wished good luck to Ms. Guzman on her departure
from the District.
There were no additional comments.
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M. ADJOURN TO CLOSED SESSION
Discussion: 1. Performance evaluation (Gov. Code §54957) Title: General
Manager
District Counsel, Alan Burns, stated that Mr. Carroll may be present for his
performance evaluation but not for the negotiation discussion.
President Scheafer adjourned to closed session at 5:32 p.m.
Discussion: 2. Conference with labor negotiator (Gov. Code §54957.6) Agency
Designated Representative: President Scheafer Unrepresented party:
General Manager
President Scheafer adjourned to closed session at 5:32 p.m.
N. RECONVENE TO OPEN SESSION
1. Report Out of Closed Session
Vice Secretary Ooten left the meeting at 6:00 p.m.
President Scheafer reconvened from closed session at 6:12 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, March 27, 2023.
President Scheafer adjourned the meeting at 6:12 p.m.
14
Art Perry
Secretary
v�
M' e Scheafer
President