Minutes - Board - 2023-06-26COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
JUNE 26, 2023
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), Gina Terraneo (Management Analyst II), Mark Esquer
(District Engineer), Kaitlin Tran (Finance Manager), Dyana Bojarski
(Administrative Services Manager), Alan Burns (District Counsel), Marc Davis
(District Treasurer), Lieu Tran (Senior Accountant), Marissa Pereyda
(Management Analyst II), David Griffin (Code Enforcement Officer)
Others present
Michael Tou, Citizens Advisory Committee Vice Chair
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.
Procedural: 2. Pledge of Allegiance - President Scheafer
President Scheafer led the Pledge of Allegiance.
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
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, Vice Secretary Ooten, 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.
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
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 May 9, 2023
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 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 May 22, 2023
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2023-12 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No.
CMSD 2023-12 approving District warrants for the month of May in the amount of
$703,537.29.
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 May 2023
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 7. Approve the Occupancy Count of 23,095 and Direct Staff to
Prepare a Warrant to CR&R Environmental Services for $246,047.20 for May
2023 Solid Waste Collection Services
Recommendation: That the Board of Directors:
1. Approve the occupancy count of 23,095; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for
$246,047.20 to be ratified with the June 2023 warrant register for May 2023
solid waste collection services.
Action (Consent): 8. Approve the Preparation of a Warrant to CR Transfer for
$253,332.84 in the June 2023 Warrant Register for May 2023 Recycling and
Disposal Services
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer for $253,332.84 to be ratified in the June 2023 warrant
register for May 2023 recycling and disposal services.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Action (Consent): 9. Receive and File the May 2023 Organics Tonnage Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 10. Receive and File the May 2023 Solid Waste Diversion
Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 11. Receive and File May 2023 Contracts Signed by the
General Manager
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 12. Approve the Investment Report for the Month of May
2023
Recommendation: That the Board of Directors approve the Investment Report for
the month of May 2023.
Motion: To approve the Consent Calendar as presented.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
D. PUBLIC HEARINGS
Procedural: 1. Open Public Hearing Confirming Wastewater Annual Charges
and Solid Waste Annual Charges
The public hearing was conducted for the annual wastewater charges.
Procedural: 2. Receive Comments
Procedural: 3. Close Public Comments
No comments were received and the public hearing was closed.
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Action: 4. Adopt Resolution No. 2023-982 confirming Wastewater Annual
Charges and Resolution No. 2023-983 confirming Solid Waste Annual Charges
respectively for FY 2023-24 to be collected with the General Taxes and Direct
the District Clerk to File with the County Auditor
Recommendation: That the Board of Directors adopt Resolution No. 2023-982
confirming the Wastewater Annual Charges and Resolution No. 2023-983
confirming the Solid Waste Annual Charges respectively for FY 2023-24 to be
collected with the general taxes and direct the Finance Manager to file with the
County Auditor.
Motion: To adopt Resolution No. 2023-982 confirming the Wastewater
annual charges for FY 2023-24 to be collected with the general taxes and
direct the District Clerk to file with the County Auditor.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Coten, Brett Eckles, Mike Scheafer
No: None
The Board adopted Resolution No. 2023-982 confirming the annual charges
for wastewater services for 2023-24 to be collected with the general taxes
and directed the District Clerk to file the report with the County Auditor.
The public hearing was opened for the Solid Waste Charges.
No comments were received and the public hearing was closed.
Motion: To adopt Resolution No. 2023-983 confirming the Solid Waste
Annual Charges for FY 2023-24 to be collected with the general taxes and
direct the District Clerk to file with the County Auditor.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Coten, Brett Eckles, Mike Scheafer
No: None
The Board adopted Resolution No. 2023-983 confirming the solid waste
annual charges for FY 2023-24 to be collected with the general taxes and
directed the District Clerk to file with the County Auditor.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES or THE BOARD or DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Procedural: 5. Open Public Hearing Before Liens are Placed on the FY 2023-24
Tax Roll
The public hearing was opened for hearing objections to filing liens on
properties with delinquent accounts.
Procedural: 6. Receive Comments
Procedural: 7. Close Public Comments
No persons objected and the public hearing was closed.
Action: 8. Adopt Resolution No. 2023-984 Placing Liens on the FY 2023-24 Tax
Roll
Recommendation:
1. The Board of Directors approve the District to add the unpaid back billing
charges to the upcoming tax roll for FY 2023-24.
2. Adopt Resolution No. 2023-984 Certifying to the Board of Supervisors and
County Auditor a Statement of Delinquent and Unpaid Charges for Sewer
and Other Services and Requesting Collection with the Annual Taxes
Imposing a Lien.
Motion:
1. To approve adding the unpaid back billing charges to the upcoming
tax roll for FY 2023-24.
2. To adopt Resolution No. 2023-984 certifying to the Board of
Supervisors and County Auditor a statement of delinquent and unpaid
charges for sewer and other services and requesting collection with the
annual taxes imposing a lien.
Motion by Bob Ooten, second by Art Perry.
Director Eckles inquired about the billing issues regarding the back billing
charges.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Senior Accountant, Lieu Tran, stated that the billing issues are a result of
incorrect unit counts, incorrect housing types, and the absence of an
accessor parcel number (APN), which is necessary to place service charges.
Director Eckles asked if these customers were notified of the back billing
charges.
Ms. Tran confirmed that they were notified of the issue and how they can
contact the District.
Director Eckles asked if any of these customers responded to the District
regarding this issue.
Ms. Tran stated that none of these customers responded to the District.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
The Board adopted Resolution No. 2023-984 certifying to the Board of
Supervisors and County Auditor a statement of delinquent and unpaid
charges for services and requesting collection on the tax roll.
Procedural: 9. Open Public Hearing Before Adopting the Biennial Budget for
Fiscal Years 2023-24 and 2024-25
The public hearing was opened.
Procedural: 10. Receive Comments
Procedural: 11. Close Public Comments
Action: 13. Close Public Hearing
No comments were received and the hearing was closed.
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Action: 12. Adopt Resolution No. 2023-985 Adopting the Biennial Budget for
Fiscal Years 2023-24 and 2024-25
Recommendation: The Board of Directors Adopt Resolution No. 2023-985
Adopting the Biennial Budget for Fiscal Year 2023-24 and 2024-25.
Motion: To adopt Resolution No. 2023-985 adopting the biennial budget for
Fiscal Year 2023-24 and 2024-25.
Motion by Arlene Schafer, second by Art Perry.
Director Eckles thanked District staff for incorporating the Board's
suggestions and producing a balanced budget.
President Scheafer congratulated Finance Manager, Kaitlin Tran, and her
staff.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
The Board adopted resolution 2023-985 adopting the biennial budget.
E. GENERAL MANAGER REPORTS
Action: 1. California Special Districts Association (CSDA) Board of Directors
Elections — Seat C Southern Network
Recommendation: That the Board of Directors approve selecting Vice President
Arlene Schafer to serve on CSDA's Board of Directors, Seat C and direct the
General Manager to cast the District's vote for Vice President Schafer.
General Manager, Scott Carroll, presented report details.
President Scheafer stated that the other candidate is not present to make a
speech.
Mr. Carroll shared that he submitted a letter which has been attached to
the staff report.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Motion: To approve selecting Vice President Arlene Schafer to serve on
CSDA Board Directors, Seat C and direct the general manager to cast the
district's vote for Vice President Schafer.
Motion by Art Perry, second by Brett Eckles.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
Vice President Schafer thanked the Board for their vote and noted that her
opponent campaigned at a recent Independent Special Districts of Orange
County (ISDOC) meeting.
Vice Secretary Ooten shared that the other candidate has a very strong
background in water and he hoped that he would consider serving on the
board of the Association of California Water Agencies (ACWA). He stated
that sanitary districts need more representation on the board of the
California Special Districts Association (CSDA).
There was no further discussion.
F. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File the District Engineer's Report and
Capital Improvement Status
Recommendation: That the Board of Directors receive and file the Engineer's
Report.
District Engineer, Mark Esquer, presented report details.
Discussion followed regarding Capital Improvement Project #342 HQ
Landscaping Project and sidewalks surrounding the District headquarters.
Mr. Esquer reiterated the projects that will be presented to the Board for
review at the July Board meeting.
There was no further discussion, and the report was received.
COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Action: 2. Consider Adopting a Budget Adjustment to 335 Sewer Siphon Lining
Project from Budget 334 Gisler Force Main Replacement
Recommendation: That the Board of Directors approve the budget adjustment to
transfer $75,000 from the CIP #334 Gisler Force Main Replacement budget to CIP
#335 Sewer Siphon Rehabilitation Phase 2 project.
Mr. Esquer presented report details. He stated that the item's
recommendation needs to be amended to reflect a transfer of $100,000
instead of $75,000. He provided an overview of the project.
Director Eckles asked District Counsel if there are any issues with updating
the recommendation.
District Counsel, Alan Burns, stated that the subject matter of the staff
report has been properly noticed to the public and the Board. He
confirmed that the Board is allowed to make adjustments as long as the
basic subject matter is noticed.
Motion: To approve the budget adjustment to transfer $100,000 from the
CIP #334 Gisler Force Main Replacement budget to CIP 4335, Sewer Siphon
Rehabilitation Phase 2 project.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries S-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
There was no further discussion.
G. TREASURER'S REPORTS
Action: 1. Consider Adopting Resolution 2023-986 Approving the Statement of
Investment Policy and Delegating the Investment Function to the District
Treasurer for Fiscal Year 2023-24
Recommendation: That the Board of Directors adopt Resolution 2023-
986 approving the Statement of Investment Policy and delegating the investment
function to the District Treasurer for Fiscal Year 2023-24.
District Treasurer, Marc Davis, presented the item.
COSTA MESA SANITARY DISTRICT PAGE 11
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
Discussion followed regarding changes to the Local Agency Investment
Fund (LAIF) policy.
Motion: To adopt Resolution 2023-986 approving the Statement of
Investment Policy and delegating the investment function to the District
Treasurer for fiscal year 2023-24.
Motion by Art Perry, second by Brett Eckles.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
There was no further discussion.
H. ATTORNEY'S REPORTS
None at this time.
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 discussed OCSD's asset management system,
dedication of a brick to former Director Jim Ferryman, and OCSD-related
odors in President Scheafer's neighborhood.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Secretary Perry stated that SARFPA approved their 2023-24 budget, elected
their executive committee, and received a presentation on the Prado Dam.
COSTA MESA SANITARY DISTRICT PAGE 12
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
Vice President Schafer shared updates regarding ISDOC membership dues
and policy updates.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Vice President Schafer discussed Board attendance at CSDA's Annual
Conference and its impact on the District of Distinction award. She also
discussed CSDA's Legislative Days.
S. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
President Scheafer stated that SDRMA approved their budget and discussed
changes to their employee handbook.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
President Scheafer, Vice President Schafer, and Vice Secretary Ooten
shared that they attended a Water Advisory Committee of Orange County
(WACO) meeting.
Vice Secretary Ooten discussed the Term Limit Ad Hoc Committee meeting.
President Scheafer asked when the Board and Citizen Advisory's
Committee (CAC) meeting is taking place.
Ms. Middenway stated that it will take place on Wednesday, July 12.
There was no further discussion.
i. OLD BUSINESS
None at this time.
COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD JUNE 26, 2023
K. NEW BUSINESS
None at this time.
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Discussion: 1. Oral Communications and Director Comments
Secretary Perry exited the meeting at 5:29 p.m.
PAGE 13
Vice Secretary Ooten requested a future discussion regarding SmartCover
manholes.
Director Eckles wished everyone a happy Independence Day.
There were no additional comments.
M. ADJOURN TO CLOSED 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, July 24, 2023.
President Scheafer adjourned the meeting at 5:33 p.m.
Art Perry
Secretary
M' e Scheafe
President