Minutes - Board - 2024-05-28COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
MAY 289 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), Angela Colunga (Administrative Assistant I), Mark Esquer
(District Engineer), Alexandra Halfman (District Counsel), Marissa Pereyda
(Management Analyst II), Kaitlin Tran (Finance Manager), Lieu Tran (Senior
Accountant), Marc Davis (District Treasurer), Dyana Bojarski (Administrative
Services Manager)
Others present
Cindy Brenneman, Citizens Advisory Committee Member
Mike Carey, CR&R Representative
Rhoda Pflum
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
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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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, and Vice Secretary Ooten were present while Director Eckles was not
present.
President Scheafer stated that Director Eckles was excused from this
meeting.
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.
a�-
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Scheafer opened public comments. Hearing none, he closed public
comments.
F. CONSENT CALENDAR
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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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 April9, 2024
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent), Minutes: 3. Approve the Board of Directors Special Meeting
Minutes of April 16, 2024
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent), Minutes: 4. Approve the Board of Directors Regular Meeting
Minutes of April 22, 2024
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 5. Adopt Warrant Resolution No. CMSD 2024-11 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2024-11 approving District warrants for the month of April in the amount of
$1,062,183.96.
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 April 2024
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 8. Approve the Occupancy Count of 23,122 and Direct Staff to
Prepare a Warrant to CR&R Environmental Services for $258,651.94 in the May
2024 Warrant Register for April 2024 Solid Waste Collection Services
Recommendation: That the Board of Directors:
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1. Approve the occupancy count of 23,122; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for
$258,651.94 in the May 2024 warrant register for April 2024 solid waste
collection services.
Action (Consent): 9. Approve the Preparation of a Warrant to CR Transfer for
$211,736.80 in the May 2024 Warrant Register for April 2024 Recycling and
Disposal Services
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $211,736.80 in the May 2024 warrant
register for April 2024 recycling and disposal services.
Action (Consent): 10. Receive and File April. 2024 Organics Tonnage Report
Recommendation: That the Board of Directors receive and %le the report.
Action (Consent): 11. Investment Report for the Month of March 2024
Recommendation: That the Board of Directors approve the Investment Report for
the month of March 2024.
Action (Consent): 12. Receive and File April 2024 Solid Waste Diversion Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent): 13. Receive and File April 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 4-0-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no discussion.
D. PUBLIC HEARINGS
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IM IM
E. GENERAL MANAGER REPORTS
Action, Receive and File: 1. Receive and File the Fiscal Year 2023-24 Third
Quarter Budget Review
Recommendation: That the Board of Directors receive and file the Fiscal Year 2023-
24 Third Quarter Budget Review.
Rhoda Pflum entered the meeting at 4:33 p.m.
Senior Accountant, Lieu Tran, presented report details.
Vice Secretary, Bob Ooten, inquired about budgetary savings.
General Manager, Scott Carroll, stated that staff may use the budgetary
savings on items that were removed from the 2023-2024 budget. He noted
that if an item is under $125,000, then the General Manager has the authority
to approve the purchase. He discussed the District's plan to paint the exterior
of District Headquarters.
Secretary Perry asked about the cost to paint the building.
Mr. Carroll stated that it costs about $100,000. He noted that he will share
the exact cost with the Board in their weekly update email.
There was no further discussion, and the report was received.
Action: 2. Approve Auditor Engagement Letter for Fiscal Year 2023-24 Audit
Recommendation: That the Board of Directors Accepts the Auditor Engagement
Letter for Fiscal Year 2023-24 Audit and Authorize President Scheafer to Sign the
Engagement Letter on behalf of CMSD.
Finance Manager, Kaitlin Tran, introduced the item.
Discussion followed regarding the District's contract with Nigro & Nigro, PC.
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Motion: To accept the Auditor Engagement Letter for Fiscal Year 2023-24
Audit and Authorize President Scheafer to Sign the Engagement Letter on
Behalf of CMSD.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no further discussion.
Action: 3. Provide Comments on CR&R Incorporated Request for CPI Rate
Adjustment
Recommendation: That the Board of Directors provide comments and direct staff
to bring this item back to the June 11, 2024, Board of Directors Study Session to
consider approving a 3.10% adjustment to CR&R rates.
Management Analyst II, Marissa Pereyda, presented report details. She
noted that, according to CR&Ws 2023 contract amendment, the rate structure
will be re -adjusted prior to the implementation of the three -cart system in
October 2024.
President Scheafer asked if the Board could approve the item today rather
than at the next meeting.
Mr. Carroll stated that, since there is a quorum, the Board may approve the
item.
Cindy Brenneman entered the meeting at 4:43 p.m.
President Scheafer asked CR&R about their biggest expenses.
CR&R representative, Mike Carey, stated that labor and fuel are CR&Ws
biggest expenses.
President Scheafer inquired about the Consumer Price Index (CPI) rate.
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Ms. Pereyda noted that it is based on the average rate of inflation from
February 2023 to March 2024.
Discussion followed regarding CPI rate adjustments within the waste hauler
industry.
Vice Secretary Ooten inquired about the new rate structure for the three -
cart system.
Mr. Carroll stated that CR&R's hauling and occupancy rates will be adjusted
for Fiscal Year 2024-2025, which begins July 1. He noted that residential
assessment fees will be prorated since the three -cart system does not take
effect until October 2024.
Ms. Pereyda explained when the new resident and recycling rates will take
effect.
Motion: To approve a 3.10% adjustment to CR&R rates.
Final Resolution: Motion Carries 4-0-0-1
Motion by Art Perry, second by Bob Ooten.
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no further discussion.
Action: 4. California Special Districts Association (CSDA) Board of Directors
Elections — Seat A Southern Network
Recommendation: That the Board of Directors approve selecting one of the three
candidates to serve on CSDA Board Directors, Seat A and direct the general
manager to cast the district's vote.
Mr. Carroll presented report details.
Motion: To approve selecting Jo MacKenzie to serve on CSDA Board
Directors, Seat A and direct the general manager to cast the district's vote.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 4-0-0-1
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no further discussion.
Action: 5. Consider Casting Vote to Appoint Regular Special District Member
Seat to OC LAFCO
Recommendation: That the Board of Directors:
1. Consider approving James Fisler for the regular special district member seat
of OC LAFCO; and
2. Approve authorizing President Scheafer to cast the vote on CMSD's behalf;
and
3. Approve designating Vice President Schafer to serve as the alternate voting
member.
Mr. Carroll presented report details.
Motion: To:
1. Consider approving James Fisler for the regular special district
member seat of OC LAFCO; and
2. Approve authorizing President Scheafer to case the vote on CMSD's
behalf; and
3. Approve designating Vice President Schafer to serve as the alternate
voting member.
Motion by Bob Ooten, second by Arlene Schafer.
President Scheafer commented on Joe Muller's withdrawal from the
election.
Final Resolution: Motion Carries 4-0-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no further discussion.
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F. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File the District Engineer's Monthly
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.
Discussion followed regarding the Gisler Pump Station.
President Scheafer asked if the recent power outage affected the California
Pump Station.
Mr. Carroll stated that the California Pump Station lost power for a minimal
amount of time. He noted that staff can remotely monitor water levels.
There was no further discussion, and the report was received.
Action: 2. Award Contract to Vicon Enterprise, Inc. for Project 330 West Bluff
Pump Station Rehabilitation, Re -Bid Adopt CEQA Determination, Award a
Contract, and Approve a Contingency
Recommendation: That the Board of Directors:
1. Adopt Project #330 West Bluff Pump Station Rehab Rebid project as
Categorically Exempt per the California Environmental Quality Act (CEQA)
Section 15302, Class 2; and
2. Award a contract to the lowest responsive and responsible bidder, Vicon
Enterprise, Inc., in the amount of $338,820; and
3. Approve a 10% contingency in the amount of $33,822.
Mr. Esquer presented report details.
Discussion followed regarding the re -bidding process and the price
increases to the project's scope of work.
Motion: To:
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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1. Adopt Project #330 West Bluff Pump Station Rehab Rebid project as
Categorically Exempt per the California Environmental Quality Act
(CEQA) Section 15302, Class 2; and
2. Award a contract to the lowest responsive and responsible bidder,
Vicon Enterprise, Inc., in the amount of $338,820; and
3. Approve a 10% contingency in the amount of $33,882.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 4-0-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no further discussion.
Action: 3. Approve Project 343 Elden Forcemain Bypass Improvement Project
Change Order #3
Recommendation: That the Board of Directors approve Project 343 Elden
Forcemain Bypass Improvement Project Change Order #3 in the amount of $13,956.
Mr. Esquer presented report details.
Motion: To approve Project 343 Elden Forcemain Bypass Improvement
Project Change Order #3 in the amount of $13,956.
Motion by Arlene Schafer, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no further discussion.
G. TREASURER'S REPORTS
Action: 1. Investment Report for the Month of April 2024
Recommendation: That the Board of Directors approve the Investment Report for
the month of April 2024.
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District Treasurer, Marc Davis, presented report details.
President Scheafer asked when the presidential election will affect the stock
market.
Mr. Davis suggested that the presidential debates may increase the volatility
of the market.
Secretary Perry asked if the City of Costa Mesa participates in the California
Cooperative Liquid Assets Securities System (CLASS).
Mr. Davis stated that the City of Costa Mesa does not participate in CLASS.
Motion: To approve the Investment Report for the month of April 2024.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-0-1
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
No: None
Abstain: None
Not Present: Brett Eckles
There was no further discussion.
H. ATTORNEY'S REPORTS
Associate Counsel of Harper and Burns, Alexandra Halfman, introduced
herself to the Board.
Discussion followed regarding the Brown Act's stipulations for remote
meeting attendance.
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
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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authorized for each days 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 (OC San) - (President Ooten)
Vice Secretary Ooten shared updates regarding OC San's board and
committee elections.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Secretary Perry shared updates from the recent SARFPA meeting. He
discussed various project improvements involving the Santa Ana River
mainstream and Prado Dam.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
Vice President Schafer stated that she did not attend the ISDOC meeting.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Vice President Schafer shared CSDA updates regarding membership. She
discussed the National Special Districts Coalition.
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
President Scheafer stated that SDRMA's Board meeting takes place next
month.
6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
President Scheafer shared that he attended the Solid Waste Association of
North American (SWANA) symposium. He stated that he attended sessions
regarding organics recycling and management styles.
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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
President Scheafer commended staff for their reports and presentations.
Vice President Schafer expressed recognition for the District's latest Living
Green edition.
Secretary Perry and President Scheafer commended the District's social
media presence.
There was no further discussion.
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, June 24, 2024.
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President Scheafer adjourned the meeting at 5:42 p.m.
Art Perry Mike Schq6fer
Secretary President