Minutes - Board - 2024-02-26COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
FEBRUARY 26, 2024
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), Mark Esquer
(District Engineer), Alan Burns (District Counsel), Marc Davis (District Treasurer),
Dyana Bojarski (Administrative Services Manager), Kaitlin Tran (Finance
Manager), Marissa Pereyda (Management Analyst II)
Others present
Karen Millard, Claimant
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 FEBRUARY 26, 2024
Procedural: 3. Invocation — Vice Secretary Ooten
Vice Secretary Ooten 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
Recommendation: That the Board of Directors approve the consent calendar as
presented.
COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
Action (Consent), Minutes: 2. Approve the Board of Directors Study Session
Minutes of January 9, 2024
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 22, 2024
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 26, 2024
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): S. Adopt Warrant Resolution No. CMSD 2024-08 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2024-08 approving District warrants for the month of January in the amount of
$1,292,017.48.
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 January 2024
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 8. Receive and File January 2024 Organics Tonnage Report
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 9. Receive and File January 2024 Solid Waste Diversion Report
Recommendation: That the Board of Directors approve and file the report.
COSTA MESA SANITARY DISTRICT PAGE 4
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
...-.._------_---
Action (Consent): 10. Approve the Occupancy Count of 23,104 and Direct Staff
to Prepare a Warrant to CR&R Environmental Services for $258,450.59 for
January 2024 Solid Waste Collection Services
Recommendation: That the Board of Directors:
1. Approve the occupancy count of 23,104; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for
$258,450.59 in the February 2024 warrant register for January 2024 solid
waste collection services.
Action (Consent): 11. Approve the Preparation of a Warrant to CR Transfer for
$210,453.04 in the February 2024 Warrant Register for January 2024 Recycling
and Disposal Services
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $210,453.04 in the February 2024 warrant
register for January 2024 recycling and disposal services.
Action (Consent): 12. Receive and File January 2024 Contracts Signed by the
General Manager
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 13. Investment Report for the Month of December 2023
Recommendation: That the Board of Directors approve the Investment Report for
the month of December 2023.
Action (Consent): 14.2023 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 Bob Ooten.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Not Present: Brett Eckles
There was no discussion.
D. PUBLIC HEARINGS
COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
None at this time.
E. GENERAL MANAGER REPORTS
Action: 1. Consider Approving or Denying Claim - Karen Millard 1022 W.
Wilson Street
Recommendation: That the Board of Directors deny claim from Karen Millard 1022
W. Wilson Street.
General Manager, Scott Carroll, presented report details and an overview of
the claim.
President Scheafer asked for the total amount requested by the claimant.
Mr. Carroll stated that the total amount is $5,866.36.
Claimant, Karen Millard, commented that she has owned the property at
1022 W. Wilson Street for the past nine years and that her father was the
previous property owner since 1997. She stated that, in September 2023, she
discovered that the District was charging her single -unit property as a multi-
unit property for trash and sewer services. She discussed the lack of
transparency regarding property tax bills and special assessment fees. She
requested a refund for her overpayments. She stated that, according to the
Generally Accepted Accounting Principles, overpayments cannot be kept by
an organization and must be credited or refunded. She noted that she does
not consider her claim to be a gift of public funds. She shared that she is
willing to pursue civil litigation for her claim.
Discussion followed regarding the overpayment amounts for the past 14
years and the District's rate tables for trash and wastewater services.
President Scheafer stated that the District's statute of limitations regarding
refunds is three years.
Ms. Millard confirmed that she sold her property in October 2023.
COSTA MESA SANITARY DISTRICT PAGE 6
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
President Scheafer asked Ms. Millard how she discovered that her property
was wrongfully assessed.
Ms. Millard stated that she discovered the issue after calling CR&R to
schedule a large item collection.
President Scheafer inquired about approving the total amount requested by
the claimant.
District Counsel, Alan Burns, stated that the Board may not have the
authority to do so.
Motion: To deny the claim from Karen Millard 1022 W. Wilson Street.
Motion by Art Perry
Mr. Carroll stated the claimant has not paid the assessment fees for her
property for Fiscal Year 2023-2024 since it was sold in October 2023.
Vice Secretary Ooten clarified that Ms. Millard partially paid for trash and
sewer services at the time of sale of her property in October 2023.
Motion: To approve the claim from Karen Millard 1022 W. Wilson Street.
Motion by Bob Ooten
Vice Secretary Ooten's motion died due to lack of second motion.
Vice President Schafer seconded Secretary Perry's motion.
Final Resolution: Motion Fails 2-2-1
Aye: Arlene Schafer, Art Perry
No: Bob Ooten, Mike Scheafer
Not Present: Brett Eckles
Mr. Carroll stated that the District and the Claimant have a small claims
court date scheduled for Wednesday, February 28.
President Scheafer stated that the Board will decide their next step after the
small claims trial.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
Ms. Millard stated that she can also withdraw her claim from small claims
court and pursue civil litigation.
There was no further discussion.
Action, Receive and File: 2. Receive and File the Fiscal Year 2023-24 Mid -Year
Budget Review
Recommendation: That the Board of Directors receive and file the Fiscal Year 2023-
24 Mid -Year Budget Review.
Finance Manager, Kaitlin Tran, presented report details.
There was no discussion, and the report was received.
Action, Receive and File: 3.2024 Christmas Tree Collection Program
Recommendation: That the Board of Directors receive and file this report.
Management Analyst II, Marissa Pereyda, presented report details.
Discussion followed regarding missed Christmas tree pickups.
Vice Secretary Ooten suggested researching the City of Costa Mesa's
Christmas tree service information.
Discussion followed regarding Christmas tree tonnage amounts.
President Scheafer inquired about the program's start date.
Ms. Pereyda stated that the District changed the program's start date from
the day after Christmas to the week after Christmas to better accommodate
customers.
There was no further discussion, and the report was received.
F. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File the District Engineer's Report and
Capital Improvement Projects Status
COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
Recommendation: That the Board of Directors receive and file the District
Engineer's Report and Capital Improvement Projects Status.
District Engineer, Mark Esquer, presented report details and discussed the
recent rain activity.
Discussion followed regarding flood areas and storm drains.
Mr. Carroll stated that the Wastewater staff utilizes a geographic
information systems (GIS) map to determine low lying areas.
There was no further discussion, and the report was received.
Action: 2. Delegate to the General Manager Authority to Award the #351 Adams
Ave Sewer Grade 5 Replacement Project Contract to the Lowest Responsible
Bidder
Recommendation: That the Board of Directors:
1. Adopt the #351 Adams Ave #138303 Grade 5 Sewer Replacement project as
Categorically Exempt per the California Environmental Quality Act (CEQA)
Section 15302, Class 2; and
2. Delegate Authority to the General Manager to award a contract to the lowest
responsive and responsible bidder in an amount not to exceed $140,000; and
3. Approve a 10% contingency in the amount not to exceed $14,000; and
4. Direct Staff to bring this item for Ratification to the Board of Directors March
2024 Meeting.
Mr. Esquer presented report details.
Secretary Perry inquired about the bid proposals for this project.
Mr. Esquer stated that the District has not received any bid proposals yet. He
noted that the bid closing date is Wednesday, February 28.
Motion: That the Board of Directors:
1. Adopt the #351 Adams Ave #138303 Grade 5 Sewer Replacement
project as Categorically Exempt per the California Environmental
Quality Act (CEQA) Section 15302, Class 2.
Motion by Bob Ooten, second by Art Perry.
COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Not Present: Brett Eckles
Motion: That the Board of Directors:
1. Delegate Authority to the General Manager to award a contract to the
lowest responsive and responsible bidder in an amount not to exceed
$150,000; and
2. Approve a 10% contingency in the amount not to exceed $15,000; and
3. Direct Staff to bring this item for Ratification to the Board of Directors
March 2024 Meeting.
Motion by Bob Ooten, second by Art Perry.
Discussion followed regarding the project's estimate.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Not Present: Brett Eckles
There was no further discussion.
Action: 3. FY 23-24 CIP Budget Adjustments and Create New Project #352 Iowa
#135734 Sewer Grade 5 Liner Project and New Project #353 Gisler #150136
Sewer Grade 5 Replacement Project
Recommendation: That the Board of Directors approve:
1. FY 23-24 Capital Outlay Budget Adjustments, as detailed in the Financial
Review, below, for a no -cost change to the FY CIP Budget; and
2. New Project #352 Iowa #135734 Sewer Grade 5 Liner project Budget of
$10,000; and
3. New Project #353 Gisler #150136 Sewer Grade 5 Liner Replacement project
Budget of$125,350.
Mr. Esquer presented report details.
Discussion followed regarding the potential sewer work on E 16thStreet.
COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
Motion: That the Board of Directors approve:
1. FY 23-24 Capital Outlay Budget Adjustments, as detailed in the
Financial Review, below, for a no -cost change to the FY CIP Budget;
and
2. New Project #352 Iowa #135734 Sewer Grade 5 Liner project Budget
of $10,000; and
3. New Project #353 Gisler #150136 Sewer Grade 5 Liner Replacement
project Budget of$125,350.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Not Present: Brett Eckles
There was no further discussion.
G. TREASURER'S REPORTS
Action: 1. Investment Report for the Month of January 2024
Recommendation: That the Board of Directors approve the Investment Report for
the month of January 2024.
District Treasurer, Marc Davis, presented the quarterly review of the
District's investment portfolio.
Discussion followed regarding Super Tuesday and the California
Cooperative Liquid Assets Securities System (CLASS).
Vice Secretary Ooten inquired about the District's new sewer cleaning truck.
Mr. Carroll stated that the truck will be delivered in May.
Motion: That the Board of Directors approve the Investment Report for the
month of January 2024.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
COSTA MESA SANITARY DISTRICT PAGE 11
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
Not Present: Brett Eckles
There was no further discussion.
H. ATTORNEY'S REPORTS
President Scheafer inquired about Ms. Millard's claim.
Mr. Burns stated that, if Ms. Millard pursues civil litigation, she will have to
dismiss her small claims case. He noted that the District has the right to
appeal the verdict of the small claims case.
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)
Vice Secretary Ooten shared updates regarding OCSD's new headquarters
and stated that they are working on selecting a firm to perform a
classification and compensation study.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Secretary Perry stated that SARFPA did not meet this month.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
President Scheafer shared that ISDOC is having a hard time finding speakers
for their quarterly meetings.
COSTA MESA SANITARY DISTRICT PAGE 12
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Vice President Schafer shared that CSDA is preparing for their conference in
Palm Springs.
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
President Scheafer shared that SDRMA's Safety Claims Education Day is
taking place at the end of March.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Vice President Schafer shared Water Advisory Committee of Orange
County's (WACO) planning meeting agenda. She stated that they are looking
for speakers.
Vice Secretary Ooten shared that he attended a WACO meeting where
groundwater was discussed.
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
COSTA MESA SANITARY DISTRICT PAGE 13
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
President Scheafer welcomed back Vice President Schafer and Ms.
Middenway. He congratulated Secretary Perry for having a former golf
player play in the major leagues.
Secretary Perry noted that the player's family is key to his success and
discussed the player's playing history.
Vice President Schafer noted that she is happy to be back and stated that the
District's new landscaping looks beautiful.
There were no additional comments.
M. ADJOURN TO CLOSED SESSION
Discussion: 1. Performance evaluation (Gov. Code §54957) Title: General
Manager
President Scheafer adjourned to closed session at 5:40 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 5:40 p.m.
N. RECONVENE TO OPEN SESSION
1. Report Out of Closed Session
Vice Secretary Ooten exited the meeting at 5:56 p.m.
President Scheafer reconvened the meeting to open session at 5:56 p.m. He
stated that the Board gave authorization to the Board President to negotiate
a salary adjustment for the General Manager. He noted that the new contract
will be presented at the March Board meeting.
O. CLOSING ITEMS
COSTA MESA SANITARY DISTRICT PAGE 14
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD FEBRUARY 26, 2024
Procedural: 1. Adjourn - The next meeting of the Costa Mesa Sanitary District
Board of Directors will be held on Monday, March 25, 2024.
President Scheafer adjourned the meeting at 5:57 p.m.
Art Perry
Secretary
f
Mike Scheafer
President