Minutes - Board - 2024-06-24COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
JUNE 24, 2024
Members present
Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer
Members absent
None
Staff present
Scott Carroll (General Manager), Gina Terraneo (Management Analyst II), Angela
Colunga (Administrative Assistant I), Alan Burns (District Counsel), Marc Davis
(District Treasurer), Marissa Pereyda (Management Analyst II), Kaitlin Tran
(Finance Manager), Dyana Bojarski (Administrative Services Manager), Mark
Esquer (District Engineer)
Others present
Julie Barreda, CR&R representative
Mike Carey, CR&R representative
Doug Johnson, Ralph Andersen & Associates
Kittie O'neill, District resident
Jeremy Tamargo, NBS Finance Group
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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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.)
Management Analyst II, Gina Terraneo, conducted roll call and noted that
President Scheafer, Vice President Schafer, Secretary Perry, Vice Secretary
Ooten, and Director Eckles were present.
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.
None.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Scheafer opened public comments.
District resident, Kittie O'neill, commented that she would like to submit a
letter of protest to the proposed trash rates.
Ms. Terraneo accepted Ms. O'neill's protest letter.
Hearing no additional comments, President Scheafer closed public
comments.
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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 May 14, 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 May 28, 2024
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2024-12 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2024-12 approving District warrants for the month of May in the amount of
$960,773.44.
Action (Consent): S. 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. Approve Payroll Transparency Disclosure for May 2024
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 7. Approve the Preparation of a Warrant to CR Transfer for
$224,309.74 in the June 2024 Warrant Register for May 2024 Recycling and
Disposal Services
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $224,309.74 in the June 2024 warrant
register for May 2024 recycling and disposal services.
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Action (Consent): 8. Approve the Occupancy Count of 23,123 and Direct Staff to
Prepare a Warrant to CR&R Environmental Services for $258,663.13 in the
June 2024 Warrant Register for May 2024 Solid Waste Collection Services
Recommendation: That the Board of Directors:
1. Approve the occupancy count of 23,123; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for
$258,663.13 in the June 2024 warrant register for May 2024 solid waste
collection services.
Action (Consent): 9. Receive and File May 2024 Organics Tonnage Report
Recommendation: That the Board of Directors receive and %le the report.
Action (Consent): 10. Receive and File May 2024 Solid Waste Diversion Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent):11. Receive and File May 2024 Contracts Signed by the General
Manager
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 12. Investment Report for the Month of May 2024
Recommendation: That the Board of Directors approve the Investment Report for
the month of May 2024.
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
Abstain: None
Not Present: None
There was no discussion.
D. PUBLIC HEARINGS
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Action: 1. Presentation of Report Justifying Increases — Public Hearing and
Consideration of Annual Solid Waste Collection Charges
Recommendation: That the Board of Directors:
1. Determine whether a majority protest occurred for increasing solid waste
charges; and
2. If there is not a majority protest, adopt Resolution No. 2024-993 confirming
the charges.
President Scheafer introduced the item.
District Counsel, Alan Burns, provided an overview of a Proposition 218
hearing.
General Manager, Scott Carroll, provided an overview of the proposed
trash rates and three -cart system. He stated that the proposed trash
collection charges for Fiscal Years 2024-25 through 2028-29 meet the
substantive requirements of Proposition 218.
President Scheafer asked if all the appropriate mailings and publishing of
notices for this hearing have occurred.
Ms. Terraneo confirmed that the District has appropriately notified its
constituents of the Proposition 218 hearing.
President Scheafer asked for a status report on the protests that the District
has received in regards to the proposed trash rates.
Ms. Terraneo stated that the District has received 15 protests.
Procedural: 2.Open Public Hearing
President Scheafer opened the public hearing at 4:39 p.m.
Ms. O'neill inquired about her written protest.
President Scheafer stated that her protest has been accepted and that she is
welcome to comment on the public hearing.
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Procedural: 3. Close Public Hearing
President Scheafer closed the public hearing at 4:41 p.m.
Procedural: 4. Determination Regarding Whether a Majority Protest Occurred
Ms. Terraneo confirmed that the District received 15 protests out of 19,637
parcels.
President Scheafer stated that the protest failed to receive a majority.
Procedural: S. Adopt Annual Solid Waste Collection Schedule of Charges
Motion: To adopt the schedule of charges for solid waste collection for the
years 2024 to 2029 as set forth in Resolution 2024-993.
Motion by Art Perry, second by Arlene Schafer.
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.
E. GENERAL MANAGER REPORTS
Action: 1. Classification and Compensation Study
Recommendation: That the Board of Directors approve the classification and
compensation recommendations with the effective date of July 1, 2024.
Administrative Services Manager, Dyana Bojarski, provided report details.
She discussed the average percentile rankings for salary ranges and benefits
amongst other local special districts.
Doug Johnson of Ralph Andersen & Associates stated that the concept of
ranking agencies by their average percentile rank highlights an agency's
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salaries and benefits plan within its market. He noted that an agency's
hierarchy is more important than its ranking number.
Ms. Bojarski continued her presentation and discussed workers'
compensation. She noted that the Special Districts Risk Management
Authority (SDRMA) was not able to provide the workers' compensation rate
for the next two fiscal years.
President Scheafer stated that he estimates the workers' compensation rate
to be 8% for the next two years.
Ms. Bojarski continued her presentation and discussed the study's projected
five-year cost analysis with a 3.4% cost of living adjustment (COLA). She
presented the proposed adjusted Fiscal Year 2024-25 budget. She noted that
the proposed recommendations will cost $50,900 in the salaries and benefits
account for Fiscal Year 2024-25.
Director Eckles asked how the District intends to cover the cost of $50,900.
Finance Manager, Kaitlin Tran, stated that the District intends to use the
budgetary savings from Fiscal Year 2023-24 to fund the expense.
Discussion followed regarding the use of reserve funds to cover deficits and
amending the budget for Fiscal Year 2024-25.
President Scheafer noted that lower COLA figures could result in more
budgetary savings. He added that there are other financial methods that the
District can utilize rather than using reserve funds to offset deficits.
Discussion followed regarding COLA projections.
Ms. Bojarski discussed longevity pay. She confirmed that the benefit of
longevity pay has been removed from the proposed recommendations due
to lack of information. She noted that staff will bring this topic back to the
Board for discussion at a future meeting. She reviewed the classification
recommendations, position reallocations, and updated salary ranges. She
presented the increases to the District's cafeteria plan, commercial driver's
license pay, and standby pay. She stated that staff is proposing to use the
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Fiscal Year 2023-24 salary and benefit savings to fund the proposed
additional costs of $50,900 for Fiscal Year 2024-25 salaries and benefits.
President Scheafer inquired about the Fiscal Year 2023-24 salary and benefit
savings.
Ms. Tran stated that the savings are a result of staffing vacancies and
overtime savings.
Vice Secretary Ooten commented that the District's budget is prudently
conservative. He discussed how staffing vacancies result in budgetary
savings.
Director Eckles inquired about legal budget requirements.
Discussion followed regarding budget appropriations.
Mr. Carroll stated that a budget is mainly a planning document. He noted
that it is not illegal to have an unbalanced budget.
District Treasurer, Marc Davis, clarified that, at the end of a fiscal year,
budgetary savings are returned to the District's net position and can be
appropriated in the next fiscal year.
Motion: To approve the classification and compensation recommendations
with the effective date of July 1, 2024.
Motion by Brett Eckles, second by Mike Scheafer.
Director Eckles and President Scheafer expressed recognition for staff.
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.
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Action: 2. Consider approving out of state traveling for employes attending the
Tri-State Seminar in Las Vegas, Nevada from August 5-8, 2024
Recommendation: That the Board of Directors approve out of state traveling for
the following employees attending the Tri-State Seminar in Las Vegas, Nevada
from August 5-8, 2024:
a. Jesse Blakely, Interim Wastewater Maintenance Supervisor
b. Alex Arreola, Wastewater Maintenance Worker II
c. Chris Johnson, Electrical Instrumentation Technician
Mr. Carroll introduced the item.
Motion: To approve out state traveling for the following employees attending
the Tri-State Seminar in Las Vegas, Nevada from August 5-8, 2024:
a. Jesse Blakely, Interim Wastewater Maintenance Supervisor
b. Alex Arreola, Wastewater Maintenance Worker II
c. Chris Johnson, Electrical Instrumentation Technician
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
Abstain: None
Not Present: None
There was no further discussion.
Action: 3. Consider approving out of state traveling for employees attending
the Water Environment Federation Exhibition and Conference (WEFTEC) in
New Orleans, Louisiana from October 5-9, 2024
Recommendation: That the Board of Directors approve out of state traveling for
the following employees attending the Water Environment Federation Exhibition
and Conference (WEFTEC) in New Orleans, Louisiana from October 5-9, 2024:
a. Tony Gomez, Interim Wastewater Maintenance Supervisor
b. Joel Ortiz, Wastewater Maintenance Worker III
c. Mark Esquer, District Engineer
Mr. Carroll introduced the item.
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Motion: To approve out state traveling for the following employees attending
the Water Environment Federation Exhibition and Conference (WEFTEC) in
New Orleans, Louisiana from October 5-9, 2024:
a. Tony Gomez, Interim Wastewater Maintenance Supervisor
b. Joel Ortiz, Wastewater Maintenance Worker III
c. Mark Esquer, District Engineer
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
Abstain: None
Not Present: None
There was no further discussion.
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 easements for Project 329 Aviemore Force
Main Replacement.
Vice Secretary Ooten commended Mr. Esquer for completing one-third of the
capital improvement projects.
There was no further discussion, and the report was received.
G. TREASURER'S REPORTS
Action: 1. Consider Adopting Resolution 2024-994 Approving the Statement of
Investment Policy and Delegating the Investment Function to the District
Treasurer for Fiscal Year 2024-25
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Recommendation: That the Board of Directors adopt Resolution 2024-994
approving the Statement of Investment Policy and delegating the investment
function to the District Treasurer for Fiscal Year 2024-25.
District Treasurer, Marc Davis, presented the item.
Motion: To adopt Resolution 2024-994 approving the Statement of
Investment Policy and delegating the investment function to the District
Treasurer for fiscal year 2024-25.
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
Abstain: None
Not Present: None
There was no further discussion.
H. ATTORNEY'S REPORTS
None at this time.
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 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 stated that OC San meets this Wednesday, June 26,
2024.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
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Secretary Perry stated that SARFPA meets this Thursday, June 27, 2024.
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 a finance meeting
on July 17, 2024.
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
President Scheafer stated that SDRMA meets Wednesday and Thursday of
this week.
Ms. Bojarski shared that the District has received their property liability and
workers' compensation rates for Fiscal Year 2024-25.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Vice Secretary Ooten shared that he attended a Water Advisory Committee
of Orange County (WACO) meeting which discussed groundwater basins.
President Scheafer commended staff for the District's Shredding and
Compost Giveaway Event.
There was no further discussion.
1. OLD BUSINESS
None at this time.
K. NEW BUSINESS
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None at this time.
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Discussion: 1.Oral Communications and Director Comments
Director Eckles thanked staff for working the Shredding and Compost
Giveaway Event. He shared details regarding the Newport -Mesa Soccer
Classic and thanked CR&R for their contributions. He suggested that the
District provides a banner or booth at the event next year.
Vice President Schafer wished all fathers a Happy Father's Day.
President Scheafer wished Mr. Carroll a safe trip to Vietnam.
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, July 22, 2024.
President Scheafer adjourned the meeting at 5:29 p.m.
Art Perry
Secretary
Mike Scheaf r
President