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Minutes - Board - 2024-03-25COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MARCH 25, 2024 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), 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 Rosemarie Chora, Citizens Advisory Committee Member 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 MARCH 25, 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, Vice Secretary Ooten, and Director Eckles were 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. Claimant, Karen Millard, commented that she dismissed her small claims court case against the District. She provided a summary of her claim. She stated that she is requesting a $6,000 refund from the District for overcharges. She noted that, if her request is denied, she will proceed with a civil lawsuit and a class action lawsuit. She discussed the District's Core Values and Operations Code. She expressed concern for the accuracy of the District's billing records. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 District Counsel, Alan Burns, stated that Ms. Millard's claim is not on the agenda. President Scheafer stated that the Board cannot issue a decision regarding Ms. Millard's claim because the topic is not on the agenda. He requested to add a closed session item to the April Study Session to discuss the claim. Vice Secretary Ooten asked if the Board can revise the agenda to discuss the claim. Mr. Burns stated that, since it is not an item requiring immediate action, the agenda cannot be revised. General Manager, Scott Carroll, confirmed that this item will be placed on the April Study Session agenda for discussion, including both closed and open session items. President Scheafer explained the closed session process. He shared that the April Study Session will take place on April 9, 2024 at 8:00 a.m. Hearing no additional comments, 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 February 13, 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 February 26, 2024 Recommendation: That the Board of Directors approve the meeting minutes as presented. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 Action (Consent): 4. Approve Payroll Transparency Disclosure for February 2024 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 5. Adopt Warrant Resolution No. CMSD 2024-09 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2024-09 approving District warrants for the month of February in the amount of $790,170.60. 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 the Occupancy Count of 23,108 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $258,495.33 for February 2024 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,108; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $258,495.33 in the March 2024 warrant register for February 2024 solid waste collection services. Action (Consent): 8. Approve the Preparation of a Warrant to CR Transfer for $189,886.65 in the March 2024 Warrant Register for February 2024 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $189,886.65 in the March 2024 warrant register for February 2024 recycling and disposal services. Action (Consent): 9. Receive and File February 2024 Organics Tonnage Report Recommendation: That the Board of Directors approve and file the report. Action (Consent): 10. Receive and File February 2024 Solid Waste Diversion Report Recommendation: That the Board of Directors approve and file the report. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 Action (Consent): 11. Investment Report for the Month of February 2024 Recommendation: That the Board of Directors approve the Investment Report for the month of February 2024. Action (Consent): 12. Adopt Updated Records Retention Schedule Recommendation: That the Board of Directors adopt the updated Records Retention Schedules. Action (Consent): 13. Receive and File February 2024 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 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 Not Present: None There was no discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS Action: 1. Consider Adopting Ordinance No. 138 Adopting Revisions to the Operations Code Recommendation: That the Board of Directors take the following action: 1. Adopt Ordinance No. 138 — Revised Operations Code in its entirety. Administrative Services Manager, Dyana Bojarski, presented report details. She stated that the Operations Code consists of ordinances adopted by the Board of Directors that pertain to the ongoing operation of the District and serves as a reference of the District's laws for staff and the public. She noted COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 that revisions have been made to the Operations Code to ensure that the document is up to date with existing laws and District procedures. She added that legal counsel has reviewed the document. Karen Millard exited the meeting at 4:44 p.m. Motion: To adopt Ordinance No.138 Revised Operations Code in its entirety. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Not Present: None There was no further discussion. Action: 2. Consider Authorizing President Mike Scheafer to Submit the Declaration of Qualification to Vote and Nominations, if any, for the Orange County Local Agency Formation Commission Regular Special District Member Seat Recommendation: That the Board of Directors consider authorizing President Mike Scheafer to submit the Declaration of Qualification to Vote and Nominations, if any, for the Orange County Local Agency Formation Commission Regular Special District Member Seat Ms. Middenway presented the item. Discussion followed regarding other nominations for the Orange County Local Agency Formation Commission Regular Special District Member Seat. Ms. Middenway discussed the voting period for this item. She noted that the deadline to submit nominations is April 15. Discussion followed regarding Jim Fisler and his position on the Independent Special Districts of Orange County (ISDOC). Motion: To appoint President Michael Scheafer to submit the Declaration of Qualification to Vote and nominations, if any, for the Orange County Local Agency Formation Commission Regular Special District Member Seat. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Not Present: None There was no further discussion. Action: 3. Consider Appointment of Eight (8) Citizens Advisory Committee Members Recommendation: That the Board of Directors consider appointing eight (8) Citizens Advisory Members to fill the existing vacancies for six (6) two-year terms ending in 2026 and two (2) one-year terms ending in 2025. Management Analyst II, Gina Terraneo, presented report details. Director Eckles inquired about the status of the existing Citizen Advisory Committee (CAC) members who are reapplying. Discussion followed regarding division representation and CAC Vice Chair Tou's previous terms. Vice President Schafer inquired about the positions of CAC Chair and Vice Chair. Discussion followed regarding which applicants to appoint to a one-year term. President Scheafer recommended appointing two applicants from Division 1 to serve a one-year term. Motion: To appoint all eight (8) Citizens Advisory Committee applicants to fill the existing vacancies. Motion by Bob Ooten, second by Brett Eckles. Motion was amended. Motion: To appoint Michael Tou, Rosemarie Chora, Birger "Dickie" Fernandez, Paul R. Lancaster, Craig J. Holmes, and Xerxez Calilung to fill the COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 existing vacancies for six (6) two-year terms ending in 2026, and to appoint Dean Fisher and Ben Glassman for two (2) one-year terms ending in 2025. Motion by Bob Ooten, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Not Present: None There was no further discussion. Action: 4. Consider Approving Contribution Program Application for Concerts in the Park in the amount of $2,500 Recommendation: That the Board of Directors: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. Ms. Terraneo presented report details. President Scheafer stated that a contribution of $2,500 guarantees an event booth for the District. Secretary Perry asked about the dates of the event. Ms. Terraneo stated that there will be three concerts in the month of July with a possible fourth concert at the end of the month. Director Eckles stated that this event application satisfies District policy. President Scheafer noted that this event is great for District visibility. Motion: To: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. Motion by Arlene Schafer, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Not Present: None There was no further discussion. Action: 5. Consider Approving Contribution Application Request of $3,000 for Love Costa Mesa City Wide Serve Day on May 18, 2024 Recommendation: That the Board of Directors: 1. Make a finding that this contribution will increase District visibility and promote the District's purpose of recycling/diverting organics away from landfills; and 2. Approve the contribution request of $3,000 to sponsor the Love Costa Mesa City Wide Serve Day event on May 18, 2024 Director Eckles requested to recuse himself from this item since he has volunteered as an event organizer and has personally donated to the Love Costa Mesa City Wide Serve Day. Mr. Burns stated that Director Eckles is not legally required to recuse himself but may do so as a means of transparency and caution. Director Eckles exited the meeting room at 5:01 p.m. Ms. Middenway presented the contribution application details. President Scheafer shared details of last year's event. He stated that the District's booth did not receive a lot of engagement. Secretary Perry recommended contributing $1,000 to the event. Vice Secretary Ooten stated that the District donated $1,000 last year. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 President Scheafer shared that people attended the event's luncheon last year because of the catering. He noted that most of them left the event after receiving their food. He stated that Concerts in the Park has thousands of attendees while Love Costa Mesa Day will probably have less than 1,500. He expressed support for donating $1,000 rather than the requested amount of $3,000. Ms. Middenway shared that the District has also been asked by the Orange County Sanitation District (OCSD) to attend their anniversary event on the same date and time as Love Costa Mesa Day. Discussion followed regarding OCSD's event. Ms. Middenway shared that the District has $1,875 remaining in the budget for contributions. Vice Secretary Ooten recommended donating $1,500. Motion: To: 1. Make a finding that this contribution will increase District visibility and promote the District's purpose of recycling/diverting organics away from landfills; and 2. Approve the contribution amount of $1,000 to sponsor the Love Costa Mesa City Wide Serve Day event on May 18, 2024. Motion by Michael Scheafer, second by Art Perry. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: None Abstain: Brett Eckles Not Present: None Brett Eckles re-entered the meeting at 5:06 p.m. There was no further discussion. F. ENGINEER'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 Action, Receive and File: 1. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status 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. CAC Member Rosemarie Chora entered the meeting at 5:06 p.m. Discussion followed regarding the work on Adams Avenue by the District, Mesa Water, and the City of Costa Mesa. Mr. Esquer stated that there is no additional information regarding water levels due to rain activity. There was no further discussion, and the report was received. Action, Receive and File: 2. Receive and File Staff Report on Project #351 Adams #138303 Grade 5 Sewer Replacement Recommendation: That the Board of Directors receive and file the staff report on Project #351 Adams #138303 Grade 5 Sewer Replacement. Mr. Esquer presented report details. He stated that Project #351 Adams #138303 Grade 5 Sewer Replacement was awarded to Torres Construction. President Scheafer asked if the District has used Torres Construction. Mr. Esquer stated that the District has used them for multiple sewer projects. There was no further discussion, and the report was received. Action: 3. FY 23-24 CIP Budget Adjustments and Create Two New Projects #354 Elden Fan Replacement Project and New Project #355 SCP Sewer Urgent Capital Repair Project Recommendation: That the Board of Directors approve: 1. 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 #354 Elden Fan Replacement Project Budget of $110,000; and COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 3. New Project #355 SCP Sewer Urgent Capital Repair Budget of $120,000. Mr. Esquer presented report details and a closed-circuit televised video (CCTV) of the defective sewer pipe. Discussion followed regarding the re -lining of the pipe. CAC Member Chora inquired about the location of the damaged sewer pipe. Mr. Esquer stated that the easement is District property that is located on the South Coast Plaza's property. Motion: That the Board of Directors approve: 1. 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 #354 Elden Fan Replacement Project Budget of $110,000; and 3. New Project #355 SCP Sewer Urgent Capital Repair Budget of $120,000. Motion by Arlene Schafer, second by Art Perry. Director Eckles inquired about Project #334 Gisler Forcemain Replacement. Mr. Esquer explained why Project #334 Gisler Forcemain Replacement has been deferred. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Not Present: None There was no further discussion. G. TREASURER'S REPORTS None at this time. H. ATTORNEY'S REPORTS COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 Presentation: 1. Oral Report of Executive Compensation (General Manager) Government Code §54953(c)(3)) Mr. Burns stated that the Board and General Manager have reached an agreement for a 5% pay increase. He noted that the pay increase will be retroactive to January 2024. There was no further discussion. Action: 2. Consider Approving Second Amendment to Restated Employment Agreement for Scott Carroll, General Manager and Consider Approving General Manager's Annual Compensation of $231,484 Recommendation: That the Board of Directors: 1. Approve Second Amendment to Restated Employment Agreement for Scott Carroll, General Manager and 2. Approve General Manager's Annual Compensation of $231,484. Mr. Burns presented the item. Motion: To: 1. Approve Second Amendment to Restated Employment Agreement for Scott Carroll, General Manager; and 2. Approve General Manager's Annual Compensation of $231,484. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Not Present: None President Scheafer requested for Mr. Burns to update the Board on Ms. Millard's claim prior to the April Study Session. Director Eckles requested more information regarding Ms. Millard's previous claim hearings. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 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 that OCSD's Operations Committee discussed major rehabilitation projects and their budget. He noted that there was a closed session item regarding employee relations. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry stated that the SARFPA meeting takes place this Thursday, March 27, 2024. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer shared that she attended this month's ISDOC meeting. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared that she attended this month's CSDA meeting. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer shared that he attended SDRMA's Board meeting earlier today and that their Safety Claims Education Day is taking place tomorrow. He noted that there will be a 12% rate increase for workers' compensation coverage. He briefly discussed experience modifications for property and liability insurance. He shared that SDRMA approved a pay increase for their Chief Executive Officer. COSTA MESA SANITARY DISTRICT PAGE 15 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer verified upcoming Board meeting dates. 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 Vice Secretary Ooten stated that the Solid Waste Ad Hoc Committee previously discussed the fining process for noncompliance. He requested a review of that process at the next Study Session. 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 COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MARCH 25, 2024 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), 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 Rosemarie Chora, Citizens Advisory Committee Member 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 16 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 25, 2024 Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, April 22, 2024. President Scheafer adjourned the meeting at 5:39 p.m. ,,,� Art Perry Secretary Mike Scheafe President