Minutes - Board - 2024-04-22COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
APRIL 22, 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), Marissa Pereyda (Management
Analyst II)
Others present
Jeremy Tamargo, NBS Government Finance Group
Jim Fisler, Orange County Local Agency Formation Commission
Julie Barreda, CR&R Representative
Karen Millard, Claimant
Michael Tou, Citizens Advisory Committee Vice Chair
Mike Carey, CR&R Representative
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, 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.
President Scheafer noted that the Board held a ribbon cutting ceremony to
celebrate the completion of the District's landscaping project.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Scheafer opened public comments.
Mesa Water Director and Orange County Local Agency Formation
Commission (OC LAFCO) Special District Member, Jim Fisler, introduced
himself and shared his accomplishments as an incumbent. He noted that he
is running for re-election and has one opponent. He discussed the current
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representation of various agency types on OC LAFCO. He expressed his
commitment to OC LAFCO and asked for the Board's vote.
Vice President Schafer asked about Mr. Fisler's opponent's experience.
Mr. Fisler stated that his resume mostly contains city government
experience.
Hearing no additional comments, President Scheafer closed public
comments.
C. ADJOURN TO CLOSED SESSION
1. Closed Session: Conference with Legal Counsel -Anticipated Litigation
Significant exposure to litigation pursuant to Paragraph (2) of subdivision (d)
and Paragraph (4) of subdivision (e) of Section 54956.9 (1 case)
President Scheafer adjourned to closed session at 4:41 p.m.
D. RECONVENE TO OPEN SESSION
1. Report out any announcements required by law
President Scheafer reconvened from closed session at 5:03 p.m. He reported
that the Board has considered the matter and proceeded to Item D2.
2. Motion to Reconsider/Renew Consideration of Karen Millard's Claim
Motion: To reconsider/renew consideration of Karen Millard's claim
Motion by Bob Ooten.
Motion failed to receive a second.
The Board will not reconsider Karen Millard's claim at this moment.
There was no further discussion.
E. PUBLIC HEARINGS
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None at this time.
F. 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 March 12, 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 March 25, 2024
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Approve the Preparation of a Warrant to CR Transfer for
$202,227.98 in the April 2024 Warrant Register for March 2024 Recycling and
Disposal Services
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $202,227.98 in the April 2024 warrant
register for March 2024 recycling and disposal services.
Action (Consent): 5. 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. Receive and File March 2024 Organics Tonnage Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent): 7. Receive and File March 2024 Solid Waste Diversion Report
Recommendation: That the Board of Directors receive and file the report.
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Action (Consent): 8. Approve Payroll Transparency Disclosure for March 2024
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 9. Adopt Warrant Resolution No. CMSD 2024-10 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2024-10 approving District warrants for the month of March in the amount of
$902,785.89.
Action (Consent): 10. Approve the Occupancy Count of 23,113 and Direct Staff
to Prepare a Warrant to CR&R Environmental Services for $258,551.26 for
March 2024 Solid Waste Collection Services
Recommendation: That the Board of Directors:
1. Approve the occupancy count of 23,113; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for
$258551.26 in the April 2024 warrant register for March 2024 solid waste
collection services.
Action (Consent): 11. Receive and File March 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 Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
Abstain: None
Not Present: None
There was no discussion.
G. GENERAL MANAGER REPORTS
Action, Receive and File: 1. Receive and File Final Solid Waste Rate Study and
Rate Recommendation
Recommendation: That the Board of Directors:
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1. Receive and File the Final Solid Waste Rate Study by NBS Finance
Group; and
2. Accept the rate recommendation identified in the study; and
3. Direct staff to send notices to property owners receiving solid waste
services regarding a public hearing to consider proposed maximum
rates for solid waste services, pursuant to the requirements of
Proposition 218; and
4. Set a Proposition 218 Public Hearing for Monday, June 24, 2024, at 4:30
p.m. at District Headquarters to consider adopting new solid waste
rates.
Management Analyst II, Marissa Pereyda, introduced the item.
President Scheafer opened the item to public comments. Hearing none, he
closed public comments.
Director Eckles commented that he does not find the proposed five-year rate
increase to be in the best interest of District ratepayers. He expressed
support for further discussing the reserve levels for the Solid Waste Fund.
He stated that he does not support the item's recommendation and would
prefer a two-year or three-year rate increase.
District Counsel, Alan Burns, clarified the item's recommendation.
Motion: To:
1. Accept the rate recommendation identified in the study; and
2. Direct staff to send notices to property owners receiving solid waste
services regarding a public hearing to consider proposed maximum
rates for solid waste services, pursuant to the requirements of
Proposition 218; and
3. Set a Proposition 218 Public hearing for Monday, June 24, 2024, at 4:30
p.m. at District Headquarters to consider adopting new solid waste
rates.
Motion by Art Perry, second by Bob Ooten.
President Scheafer thanked Director Eckles for his comments and requested
for the General Manager to review the District's reserve levels and provide
more research on that topic.
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Final Resolution: Motion Carries 4-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: Brett Eckles
Abstain: None
Not Present: None
There was no further discussion.
Action: 2. Consider Approving Start Date for Implementing Curbside Recycling
Program for SB 1383 Compliance
Recommendation: That the Board give staff direction to implement the Curbside
Recycling Program on October 7 or November 7, 2024.
General Manager, Scott Carroll, introduced the item.
Citizens Advisory Committee Vice Chair, Michael Tou, entered the meeting
at 5:11 p.m.
Discussion followed regarding the start date for implementing the three -cart
system rollout.
Director Eckles inquired about a January start date for the program. He
expressed support for starting the rollout in November.
Vice President Schafer stated that Halloween may affect cart delivery.
President Scheafer stated that an October start date should guarantee that
the rollout will be completed by Christmas and avoid delays to the Christmas
Tree Collection Program. He asked CR&R how much of the rollout will be
completed in four weeks.
CR&R representative, Julie Barreda, stated that about 50% of the rollout
should be completed in four weeks. She shared that CR&R is comfortable
with starting on October 7th but noted that they will be concluding the City
of Laguna Beach's rollout on October 5th.
President Scheafer mentioned that he attended the City of Costa Mesa's Earth
Day Event in which he discussed the three -cart system with customers. He
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shared that District customers expressed interest in starting the rollout as
soon as possible.
President Scheafer opened the item to public comments. Hearing none, he
closed public comments.
Motion: To implement the Curbside Recycling Program on October 7, 2024.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: Brett Eckles
Abstain: None
Not Present: None
There was no further discussion.
Action, Receive and File: 3. Receive and File 2024 Performance Report - 1st
Quarter (January -March) Calendar Year
Recommendation: That the Board of Directors receive and file this report.
Mr. Carroll presented the item. He noted that the District's experience
modification (eMOD) rate is at 100%.
President Scheafer commented on workers' compensation rate renewals.
There was no further discussion, and the report was received.
Action, Receive and File: 4. Receive and File 2020-25 Strategic Plan Progress
Report - Fiscal Year 2023-24 Third Quarter
Recommendation: That the Board of Directors receive and file this report.
Mr. Carroll presented the item. He stated that District staff will start drafting
a new strategic plan next year.
There was no further discussion, and the report was received.
Action: S. Consider Approving Contribution Application for Costa Mesa -
Newport Harbor Fish Fry
Recommendation: That the Board of Directors:
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1. Approve the Costa Mesa -Newport Harbor Lions Club's Contribution
Application requesting 3 District generators for the Fish Fry event; 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.
Management Analyst II, Gina Terraneo, presented report details. She
confirmed that the Costa Mesa -Newport Harbor Lions Club's has submitted
their certificate of insurance.
President Scheafer asked if the Costa Mesa -Newport Harbor Lions Club's has
submitted a waiver of subrogation.
Ms. Terraneo stated that she will ask the Costa Mesa -Newport Harbor Lions
Club's to submit that waiver.
Motion: To:
1. Approve the Costa Mesa -Newport Harbor Lions Club's Contribution
Application requesting 3 District generators for the Fish Fry event;
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.
Motion by Mike Scheafer, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
Abstain: None
Not Present: None
There was no further discussion.
Action: 6. Consider Approving Contribution Application for the City of Costa
Mesa's Independence Day Celebration
Recommendation: That the Board of Directors:
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1. Approve the City of Costa Mesas contribution application at the $1,000
"Yankee Doodle" sponsorship level for the Independence Day Celebration
event; 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 and staffs recommendation. She
provided information regarding the District's contribution budget.
Director Eckles inquired about the event timeline. He expressed concern
about whether this event is appropriate for District purposes.
Ms. Terraneo shared that this is the first time that the City of Costa Mesa has
asked the District to attend.
Director Eckles stated that the City should allow the District to have a booth
at the event at no cost. He discussed the background of this event.
Motion: That the Board of Directors:
1. Approve the City of Costa Mesa's contribution application at the $1,000
"Yankee Doodle" sponsorship level for the Independence Day
Celebration event; 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.
Motion by Art Perry.
Motion failed to receive a second.
Director Eckles submitted a substitute motion.
Motion: To ask if the City of Costa Mesa will allow the District to host a booth
at the Independence Day Celebration event without providing a
sponsorship.
Motion by Brett Eckles, second by Bob Ooten.
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Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
No: None
Abstain: None
Not Present: None
There was no further discussion.
Action: 7. Consider Rescheduling May 28, 2024 Board of Directors Meeting
Recommendation: That the Board of Directors provide direction to staff.
Mr. Carroll introduced the item.
President Scheafer shared that he will be at the Solid Waste Association of
North America (SWANA) convention from May 201h to May 23rd
Director Perry suggested having the May Board meeting on May 291h.
Director Eckles shared that he will be out of town the week of May 271".
Mr. Carroll shared that the meeting is already scheduled for Tuesday, May
28th.
The Board agreed to keep the meeting as scheduled for May 281h.
Vice Secretary Ooten exited the meeting at 5:32 p.m.
There was no further discussion.
H. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File the District Engineer's Report and
Capital Improvement Projects Status
Recommendation: The Board of Directors receive and file the Capital Improvement
Projects Status Report.
District Engineer, Mark Esquer, presented report details.
There was no further discussion, and the report was received.
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Action: 2. Project No. 324 Sewer Rehabilitation Phase 4 Project: Accept
Improvements as Completed, File Notice of Completion, Exonerate Labor and
Materials Bond and Exonerate Faithful Performance Bond
Recommendation: That the Board of Directors:
1. Accept improvements as completed and file a Notice of Completion;
2. Exonerate Labor and Material Bond 35 days after Notice of Completion is
recorded; and
3. Exonerate Faithful Performance Bond one year after Notice of Completion
is recorded.
Mr. Esquer stated that Projects #324 and #342 are both complete and the
District needs to file two Notices of Completion with the County of Orange to
exonerate the projects' labor and materials bonds and faithful performance
bonds.
Motion: To:
1. Accept improvements as completed and file a Notice of Completion;
2. Exonerate Labor and Material Bond 35 days after Notice of
Completion is recorded; and
3. Exonerate Faithful Performance Bond one year after Notice of
Completion is recorded.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-0-1
Aye: Arlene Schafer, Art Perry, Brett Eckles, Mike Scheafer
No: None
Abstain: None
Not Present: Bob Ooten
There was no further discussion.
Action: 3. Project No. 342 HQ Landscape Renovation: Accept Improvements as
Completed, File Notice of Completion, Exonerate Labor and Materials Bond
and Exonerate Faithful Performance Bond
Recommendation: That the Board of Directors:
1. Accept improvements as completed and file a Notice of Completion;
2. Exonerate Labor and Material Bond 35 days after Notice of Completion is
recorded; and
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3. Exonerate Faithful Performance Bond one year after Notice of Completion
is recorded.
Motion: To:
1. Accept improvements as completed and file a Notice of Completion;
2. Exonerate Labor and Material Bond 35 days after Notice
Completion is recorded; and
3. Exonerate Faithful Performance Bond one year after Notice
Completion is recorded.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Carries 4-0-0-1
Aye: Arlene Schafer, Art Perry, Brett Eckles, Mike Scheafer
No: None
Abstain: None
Not Present: Bob Ooten
There was no further discussion.
I. TREASURER'S REPORTS
None at this time.
I. ATTORNEY'S REPORTS
Mr. Burns shared updates regarding recent court cases.
There was no further discussion.
of
of
K. 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.
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1. Orange County Sanitation District (OCSD) - (President Ooten)
Vice Secretary Ooten was not present to provide the report.
President Scheafer shared that OCSD is having an open house event on June
8th
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Secretary Perry stated that the SARFPA meeting will take place next month.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
Vice President Schafer stated that there is nothing to report for ISDOC.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Vice President Schafer shared that she will be attending CSDA's conference
later this year.
S. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
President Scheafer shared that SDRMA is working on replacing a board
member.
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.
President Scheafer commented on the City of Costa Mesa's Earth Day Event.
He commended District staff who worked at the event. He inquired about
the upcoming City/Districts Liaison Committee meeting.
Ms. Middenway stated that the meeting will take place in May.
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Vice President Schafer shared that Love Costa Mesa Day will take place on
May 18th.
There was no further discussion.
L. OLD BUSINESS
None at this time.
M. NEW BUSINESS
None at this time.
N. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Discussion: 1.Oral Communications and Director Comments
None.
O. CLOSING ITEMS
Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District
Board of Directors will be held on Tuesday, May 28, 2024.
President Scheafer adjourned the meeting at 5:49 p.m.
Art Perry Mike Schea er
Secretary President