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Minutes - CAC & Board - 2024-07-22COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD OF DIRECTORS AND CITIZENS ADVISORY COMMITTEE MEETING JULY 22, 2024 Board Members present President Scheafer, Vice President Schafer, Secretary Perry, Vice Secretary Ooten, Director Eckles Board Members absent None CAC Members present Cindy Brenneman, Xerxes Calilung, Rosemarie Chora, Dickie Fernandez, Dean Fisher, Craig Holmes, Sue Lester, Michael Tou CAC Members absent Jeff Arbour, Ben Glassman, Paul Lancaster Staffpresent Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Gina Terraneo (Senior Management Analyst), Alan Burns (District Counsel), Marc Davis (District Treasurer), Mark Esquer (District Engineer), Marissa Pereyda (Senior Management Analyst), Angela Colunga (Management Analyst I) Others present Tom Brenneman, District resident Meeting called to order at 6:00 P.M. A. OPENING ITEMS Procedural: 1. Call to Order — President Scheafer COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 President Scheafer called the meeting to order at 6:00 p.m. 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. PAGE 2 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 for the Board and noted that President Scheafer, Vice President Schafer, Secretary Perry, Vice Secretary Ooten, and Director Eckles were present. She conducted roll call for the Citizens Advisory Committee (CAC) and noted that CAC Members Brenneman, Fernandez, Fisher, Holmes, Lester, and Tou were present, while CAC Members Arbour, Calilung, Chora, Glassman and Lancaster were not present at this time. 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. Procedural: 6. Ceremonial Matters and Presentations. None. B. PUBLIC COMMENTS Procedural: 1. Public Comments COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE 3 President Scheafer opened public comments. Hearing none, he closed public comments. 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 June 11, 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 June 24, 2024 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2025-01 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2025-01 approving District warrants for the month of June in the amount of $1,627,346.38. Action (Consent): 6. Approve Payroll Transparency Disclosure for June 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 $204,149.37 in the July 2024 Warrant Register for June 2024 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $204,149.37 in the July 2024 warrant register for June 2024 recycling and disposal services. 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 July 2024 Warrant Register for June 2024 Solid Waste Collection Services COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE 4 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 July 2024 warrant register for June 2024 solid waste collection services. Action (Consent): 9. Receive and File June 2024 Organics Tonnage Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 10. Receive and File June 2024 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 11. Receive and File June 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 Brett Eckles, second by NONE. Motion dies for lack of a second. CAC Chair Lester requested to pull Item CS for discussion. Motion: To approve the Consent Calendar as presented, except for Item CS. Motion by Brett Eckles, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Abstain: None Not Present: None CAC Member Xerxes Calilung entered the meeting at 6:06 p.m. 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. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE 5 CAC Chair Lester stated that only three Board members turned in an expense report for June 2024. She inquired about the item's submission timeline, virtual meetings, and reimbursement for supplies. President Scheafer stated that some meetings are only offered virtually such as the Independent Special Districts of Orange County (ISDOC) meetings. Ms. Middenway stated that the Board has the first two weeks following a regular Board meeting to submit their expense reports. District Counsel, Alan Burns, noted that expense reports should be submitted within a reasonable timeframe, according to District policy. Director Eckles shared that he did not submit his expense report for June 2024 because he forgot to do so. General Manager, Scott Carroll, stated that the Board is entitled to request reimbursement for personal expenses used for District matters, such as ink and paper. CAC Chair Lester asked if CAC members are allowed to request reimbursement for personal expenses used for District matters. Mr. Carroll stated that he will find out if committee members can be reimbursed for such expenses. Discussion followed regarding Board meeting attendance. Motion: To approve the Item C5. Motion by Brett Eckles, second by Arlene Schafer. 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. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 D. PUBLIC HEARINGS PAGE 6 Action: 1. Adoption of Solid Waste and Wastewater Annual Charges for FY 2024-25 to be Collected with the General Taxes Recommendation: That the Board of Directors: 1. Adopt Resolution No. 2024-995 confirming the solid waste annual charges for FY 2024-25 to be collected with the general taxes and direct the District clerk to file with the County Auditor 2. Adopt Resolution No. 2024-996 confirming the wastewater annual charges for FY 2024-25 to be collected with the general taxes and direct the District Clerk to file with the County Auditor President Scheafer introduced the item. He opened the public hearing at 6:14 p.m. Ms. Middenway stated that the District has not received any additional protests since the last Board meeting. President Scheafer invited public comments. Hearing none, he closed the public hearing at 6:14 p.m. Motion: To adopt Resolution No. 2024-996 confirming the wastewater annual charges for FY 2024-25 to be collected with the general taxes and direct the District Clerk to file with the County Auditor. Motion by Art Perry, second by Arlene Schafer. Director Eckles asked about the consequences of these resolutions if they fail to receive Board approval. Mr. Burns stated that if these resolutions are not approved and are not filed with the County Auditor, then the District will not receive its revenue. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Abstain: None Not Present: None COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE % Motion: To adopt Resolution No. 2024-995 confirming the solid waste annual charges for FY 2024-25 to be collected with the general taxes and direct the District Clerk to file with the County Auditor. Motion by Art Perry, second by Arlene Schafer. 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. E. GENERAL MANAGER REPORTS Action: 1. Approve the Citizens Advisory Committee Meeting Minutes of May % 2024 Recommendation: That the Citizens Advisory Committee approves the meeting minutes as presented. CAC Chair Lester introduced the item. Motion: To approve the Citizens Advisory Committee Meeting minutes as presented. Motion by Xerxes Calilung, seconded by Dean Fisher. Final Resolution: Motion carries 6-0-1-4 Ayes: Xerxes Calilung, Dickie Fernandez, Dean Fisher, Sue Lester, Michael Tou, Craig Holmes No: None Abstain: Cindy Brenneman Not Present: Jeff Arbour, Rosemarie Chora, Ben Glassman, Paul Lancaster There was no discussion. Action, Receive and File: 2. Receive and File Citizens Advisory Committee FY 2024-25 Proposed Work Plan Recommendation: That the Board of Directors and Citizens Advisory Committee consider approving the proposed FY 2024-25 Work Plan. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 Mr. Carroll introduced the item. Director Eckles confirmed that CAC Chair Lester met with Mr. Carroll to discuss and determine the CAC's 2024-25 work plan. Secretary Perry inquired about Orange Coast College (OCC) Recycling Center. Mr. Carroll stated that he will provide an update during Oral Communications and Director Comments. There was no further discussion, and the item was received. Action, Discussion: 3. Review and Comment on Proposed Amendments to the Alkaline Battery Recycling Program Recommendation: That the Citizens Advisory Committee reviews and provides feedback on staffs proposed amendments. Management Analyst I, Angela Colunga, provided an overview of the proposed updates to the Alkaline Battery Recycling Program based on CAC feedback. She noted that staff is recommending a budget adjustment of $30,000 to add to the existing program budget of $20,000. CAC Chair Lester confirmed program details regarding battery and prize amounts. She asked if the program yard signs will be used on school property or displayed within the community. Ms. Colunga stated that the signs are intended for school use only. She noted that the yard signs are optional for the participating schools. Discussion followed regarding a federal program for battery drop off sites. CAC Chair Lester asked if the District receives any money from collecting batteries. Ms. Colunga confirmed that the District does not financially benefit from collecting batteries. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE 9 Director Eckles confirmed the total number of eligible schools within the District's service area. Motion: To recommend that the Board implement staffs proposed program amendments. Motion by Sue Lester, seconded by Cindy Brenneman. Final Resolution: Motion carries 7-0-0-4 Ayes: Cindy Brenneman, Xerxes Calilung, Dickie Fernandez, Dean Fisher, Sue Lester, Michael Tou, Craig Holmes No: None Abstain: None Not Present: Jeff Arbour, Rosemarie Chora, Ben Glassman, Paul Lancaster There was no further discussion. Action, Receive and File: 6. Scheduled Townhall Meetings for SB 1383 Recommendation: That the Citizens Advisory Committee receives and files this report. The CAC and the Board agreed to discuss Items E6 and E8 prior to discussing Item E4. Mr. Carroll shared the schedule for the upcoming townhall meetings for the three -cart system rollout and asked the CAC to help promote these meetings. Discussion followed regarding the capacity limits of the District's Boardroom. Mr. Carroll noted that the first two townhall meetings will be hosted at District Headquarters and will be livestreamed on YouTube. CAC Chair Lester recommended streaming the townhall meetings on Costa Mesa Television (CMTV). CAC Member Chora entered the meeting at 6:31 p.m. CAC Chair Lester asked the CAC to attend at least one townhall meeting. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 Discussion followed regarding accessing CMTV. PAGE 10 Mr. Carroll confirmed that the City of Costa Mesa will help promote the townhall meetings and three -cart system rollout. CAC Vice Chair Tou recommended providing a presentation to the Costa Mesa City Council regarding the details of the three -cart system. He also recommended including program information in the City's Snapshot email. There was no further discussion, and the report was received. Action: 8. Consider Amending Travel Policy by allowing the General Manager to Approve Out of State Traveling in Nevada and Arizona Recommendation: That the Citizen Advisory Committee recommends the Board of Directors adopt Amended Travel Policy allowing the General Manager to approve out of state traveling in Nevada and Arizona. Mr. Carroll provided report details. CAC Member Chora recommended amending the travel policy to include General Manager approval for out-of-state travel all states within the continental United States. CAC Member Fisher expressed agreement with CAC Member Chora's recommendation. CAC Chair Lester recommended that the travel policy be limited to General Manager approval for out-of-state travel to Arizona and Nevada. She stated that the Board should have the discretion to approve out-of-state travel to all other states and for unbudgeted travel. Motion: To recommend that the Board of Directors adopt the amended travel policy allowing the General Manager to approve out-of-state traveling in Nevada and Arizona if it is budgeted. Motion by Sue Lester, seconded by Cindy Brenneman. Final Resolution: Motion carries 8-0-0-3 Ayes: Cindy Brenneman, Xerxes Calilung, Rosemarie Chora, Dickie Fernandez, Dean Fisher, Sue Lester, Michael Tou, Craig Holmes COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 No: None Abstain: None Not Present: Jeff Arbour, Ben Glassman, Paul Lancaster There was no further discussion. PAGE 11 Action, Receive and File: 4. Receive and File 2024 Performance Report — 2nd Quarter (January -June) Calendar Year Recommendation: That the Board of Directors receives and files this report. Mr. Carroll presented report details. Discussion followed regarding the District's experience modification (e- mod) rate. Director Eckles inquired about the District's Wellness Program. Mr. Carroll stated that his goal is to achieve a participation level of 80% for the Wellness Program. Discussion followed regarding the District's annual Employee Engagement Survey. Director Eckles asked why satisfaction levels with the District's app, GoCMSD, have declined. Mr. Carroll stated that the decline in satisfaction levels is a result of CR&R's performance. He noted that satisfaction levels with District staff remain high. There was no further discussion, and the report was received. Action, Receive and File: 5. Receive and File 2020-25 Strategic Plan Progress Report — Fiscal Year 2023-24 Fourth Quarter Recommendation: That the Board of Directors receives and files this report. Mr. Carroll provided report details. He added that District staff will begin planning for its next strategic plan for fiscal years 2025-2030. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 There was no further discussion. PAGE 12 Action: 7. Consider Changing the Date or Cancelling the September 10, 2024 Study Session due to the Board of Directors Attendance of the California Special Districts Association Annual Conference on September 9-12, 2024 Recommendation: That the Board of Directors direct staff to change the date or cancel the September 10, 2024 Study Session. Mr. Carroll presented the item. President Scheafer recommended cancelling the September Study Session. Motion: To cancel the September 10, 2024 Study Session and move any items to the September 23, 2024 Board Meeting, if needed. Motion by Brett Eckles, 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: 9. Consider Adopting Ordinance No. 139 Pertaining to Out of State Traveling Recommendation: That the Board of Directors considers the Citizens Advisory Committee's recommendations regarding the proposed amendments to the district's out of state traveling policy. Mr. Carroll presented the item and noted that the CAC has approved recommending Ordinance No. 139 to the Board. Motion: To approve Ordinance No. 139, as recommended by the Citizens Advisory Committee, which includes proposed amendments to the District's out-of-state traveling policy. Motion by Art Perry, second by Bob Ooten. No votes recorded. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE 13 Director Eckles stated that the word "budgeted" should be included in the ordinance regarding out-of-state travel. Mr. Carroll confirmed that the ordinance pertains to budgeted travel. President Scheafer expressed concerns for expanding this policy to travel beyond Arizona and Nevada. He stated that the Board can discuss travel to other states at Study Sessions or at special Board meetings. Mr. Carroll confirmed that the ordinance pertains to out-of-state travel to only Arizona and Nevada. He also clarified that travel expenditures must be approved as part of the budget process. Discussion followed regarding the current language of the proposed ordinance. The Board requested for the ordinance to be updated regarding non - budgeted travel for Board members and presented at the August Board meeting for approval. 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 Project Status Recommendation: That the Board of Directors receive and file the Capital Improvement Status Report. District Engineer, Mark Esquer, provided report details. There was no further discussion. F. TREASURER'S REPORTS Action: 1. Investment Report for the Month of June 2024 Recommendation: That the Board of Directors approve the Investment Report for the month of June 2024. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 District Treasurer, Marc Davis, provided report details. PAGE 14 Motion: To approve the Investment Report for the month of June 2024. 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. H. ATTORNEYS REPORTS Mr. Burns discussed the overturn of the Chevron U.S.A. Inc v. Natural Resources Defense Council court case. 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 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 (OC San) - (President Ooten) Secretary Perry stated that OC Sans meeting takes place later this week. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry stated that SARFPA's meeting was cancelled. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE 15 President Scheafer stated that there is nothing to report for ISDOC. He discussed the Orange County Council of Governments (OCCOG). 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer shared that she attended a CSDA finance committee meeting. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer stated that SDRMA is hosting a meeting at District Headquarters on Wednesday, July 24. 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 shared that he attended a Kiwanis Club meeting and discussed Senate Bill 1393 and the District's three -cart system rollout. 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 Director Eckles thanked the CAC for attending tonight's meeting. COSTA MESA SANITARY DISTRICT MINUTES OF THE JOINT BOARD AND CAC MEETING HELD JULY 22, 2024 PAGE 16 Vice President Schafer expressed recognition for the District's latest outreach letter regarding the three -cart system. President Scheafer thanked the CAC for their participation. Mr. Carroll provided an update on the OCC Recycling Center. CAC Chair Lester expressed recognition for the District's Shredding and Compost Giveaway Event. 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, August 26, 2024. President Scheafer adjourned the meeting at 7:12 p.m. Sue Lester Chair Michael Tou Vice Chair