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.
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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.
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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.
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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.
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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
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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.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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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
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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
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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.
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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
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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
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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
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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.
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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.
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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.
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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