Minutes - Board - 2024-10-28COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DiRECTOR.S REGULAR MEETING
OCTOBER 28, 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), Alan Burns (District Counsel), Marc Davis (District
Treasurer), Mark Esquer (District Engineer), Kaitlin Tran (Finance Manager),
Marissa Pereyda (Senior Management Analyst), Angela Colunga (Management
Analyst I)
Others present
None
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.
Procedural: 3. Invocation - Vice President Schafer
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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: 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.
President Scheafer stated that the Board received late communication from
Ms. Karen Millard.
The Board directed staff to schedule a closed session item to discuss her
letter at the November Study Session.
Procedural: 6. Ceremonial Matters and Presentations
None.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
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.
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MMUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
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Action (Consent): 2. Approve the Board of Directors Regular Meeting Minutes of
September 23, 2024
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent), Minutes: 3. Adopt Warrant Resolution No. CMSD 2025-04 District
Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2025-04 approving District warrants for the month of September in the amount of
$897,230.67.
Action (Consent), Minutes: 4. 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): S. Approve Payroll Transparency Disclosure for September 2024
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 6. Approve the Preparation of a Warrant to CR Transfer for
$203,489.12 in the October 2024 Warrant Register for September 2024 Recycling
and Disposal Services
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $203,489.12 in the October 2024 warrant
register for September 2024 recycling and disposal services.
Action (Consent): 7. Receive and File September 2024 Organics Tonnage Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent): 8. Approve the Occupancy Count of 23,148 and Direct Staff to
Prepare a Warrant to CR&R Environmental Services for $266,968.20 in the October
2024 Warrant Register for September 2024 Solid Waste Collection Services
Recommendation: That the Board of Directors:
1. Approve the occupancy count of 23,148; and
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2. Direct staff to prepare a warrant to CR&R Environmental Services for
$266,968.20 in the October 2024 warrant register for September 2024 solid
waste collection services.
Action (Consent): 9. Receive and File September 2024 Solid Waste Diversion Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent): 10. Receive and File September 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.
D. PUBLIC HEARINGS
None at this time.
E. GENERAL MANAGER REPORTS
Action, Receive and File: 1. Receive and File the First Quarter Budget Review for
Fiscal Year 2024-25
Recommendation: That the Board of Directors receive and file this report.
General Manager, Scott Carroll, introduced the item.
Finance Manager, Kaitlin Tran, presented report details. She stated that,
based on the limited spending trends through September 30, staff expects
the Solid Waste Fund to be within budget by June 30, 2025, and the
Wastewater Fund to be under budget by $50,000 by June 30, 2025 due to the
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vacancy of the Wastewater Maintenance Manager position. She noted that
projections with less than 3 months of activity should not be relied upon. She
added that, as of September 30, the District has not received any annual
apportionment of annual assessments.
President Scheafer asked if the emergency project at the South Coast Plaza
will affect the budget.
Ms. Tran stated that staff has reorganized a few projects to secure funding
for the South Coast Plaza project.
Director Eckles inquired about the Wastewater Maintenance Manager
vacancy.
There was no further discussion, and the report was received.
Action: 2. Carryover Appropriations and Carryover Encumbrances from Fiscal
Year 2023-24 to Fiscal Year 2024-25
Recommendation: That the Board of Directors approve:
1. The re -appropriation of funds in the Fiscal Year 2024-25 for the carryover
items from the prior fiscal year as detailed in Attachments A and B, and
summarized as follows:
10 Solid Waste Funds: Carryover Appropriations $5,473,
Encumbrances $11,436
20 Wastewater Fund: Carryover Appropriations $2,78%993,
Encumbrances $1,306,644.
2. The Proposed Budget Adjustments to Reallocate Funds within the FY 2024-
25 Capital Improvement Projects as detailed in Attachment C.
Ms. Tran presented report details. She stated that the carryover
appropriations represent budgeted Fiscal Year 2023-24 appropriations for
goods and services that were not expended as of June 30, 2024 but are
expected to be expended in Fiscal Year 2024-25. She explained that the
carryover encumbrances represent purchase orders issued for goods and
services which were not received during the prior fiscal year.
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Discussion followed regarding the carryover appropriation for the Drought
Tolerant Landscaping project.
District Engineer, Mark Esquer, discussed change orders and landscaping
fees associated with the Drought Tolerant Landscaping project.
Ms. Tran presented Attachment C of the staff report which details complete
and incomplete projects.
Mr. Carroll stated that staff anticipates lower water and maintenance costs
with the new landscaping.
Motion: That the Board of Directors approve the re -appropriation of funds
in the Fiscal Year 2024-25 for the carryover items from the prior fiscal year
as detailed in Attachments A and B, and summarized as follows:
10 Solid Waste Fund: Carryover Appropriations $5,473,
Encumbrances $11,436
20 Wastewater Fund: Carryover Appropriations $2,789,933,
Encumbrances $1,306,644.
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
Motion: That the Board of Directors approve the Proposed Budget
Adjustments to Reallocate Funds within the FY 2024-25 Capital Improvement
Projects as detailed in Attachment C.
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 discussion.
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Action: 3. Fiscal Year 2023-2024 Annual Compliance Report for Requirements of
Government Code Section 66013(d) for Capacity Charges
Recommendation: That the Board of Directors receive and file this report.
Ms. Tran presented report details. She stated that, during Fiscal Year 2023-
24, the Facilities Revolving Fund collected $65,858 in capacity charges, and
that, as of June 30, 2024, the funds available totaled $131,109. She added that,
during Fiscal Year 2023-24 and 2024-25 biennial budget process, the Board
approved the transfer of $200,000 from the Facilities Revolving Fund to the
Wastewater Fund to demolish the old Hitch Crafter building at the District
Yard. She noted that the project is still ongoing and should be completed by
the end of this year.
Mr. Esquer provided an update on the demolition of the Hitch Crafter
building.
President Scheafer inquired about an increase in fixture fees due to
affordable housing requirements.
Discussion followed regarding new developments within the District's
service area and capacity impacts.
President Scheafer inquired about the Fairview Developmental Center.
Mr. Esquer discussed sewer maintenance and flow monitoring in regard to
the Fairview Developmental Center.
Secretary Perry inquired about accessory development units (ADU) within
the District's service area.
Mr. Esquer stated that east side Costa Mesa and the Adams Avenue corridor
are more likely to have ADUs.
There was no further discussion, and the report was received.
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Action, Receive and File: 4. Receive and File 2024 Performance Measurement
Report — 3rd Quarter (January — September) Calendar Year
Recommendation: That the Board of Directors receive and file this report.
Mr. Carroll presented the item.
Director Eckles inquired about employee satisfaction.
Mr. Carroll stated that the survey allows employees to describe their reasons
for satisfaction or dissatisfaction.
Vice Secretary Ooten requested for staff to inform the Board of any goal
changes within the Performance Management Program.
There was no further discussion, and the report was received.
Action, Receive and File: S. Receive and File 2020-25 Strategic Plan Progress Report
— Fiscal Year 2024-25 First Quarter
Recommendation: That the Board of Directors receive and file this report.
Mr. Carroll presented the item. He shared that staff will be preparing a new
Strategic Plan in January 2025.
There was no further discussion, and the report was received.
Action: 6. Consider Authorizing Continuation of Resolution No. 2024-997
ConEwming an Emergency to Replace Critical Infrastructure of the South Coast
Plaza Pump Station
Recommendation: That the Board of Directors:
1. Adopt Project #355 SCP Emergency Sewer Replacement as statutory exempt
under the California Environmental Quality Act (CEQA) (Public Resources
Code Section 21000 et. seq.) under Section 15269(b), Emergency Projects.
2. Approve authorizing continuation of Resolution No. 2024-997
Mr. Caroll presented the item.
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Mr. Esquer provided a status update on Project #355 South Coast Plaza
Emergency Sewer Replacement.
Discussion followed regarding dewatering and excavation.
Vice Secretary Ooten discussed groundwater usage.
Motion: To adopt Project #355 SCP Emergency Sewer Replacement as
statutory exempt under the California Environmental Quality Act (CEQA)
(Public Resources Code Section 21000 et. seq.) under Section 15269(b),
Emergency Projects.
Motion by Brett Eckles, 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
Motion: To approve authorizing continuation of Resolution No. 2024-997 to
support the #355 SCP Urgent Capital Repair Project.
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 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.
Mr. Esquer presented report details.
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There was no further discussion, and the report was received.
Action: 2. Project No. 343 Elden Emergency Bypass Improvements: Accept
Improvements as Completed, File Notice of Completion, Exonerate Labor and
Materials Bond and Exonerate Faithful Performance Bond
Recommendation: The Board of Directors approves:
1. Accept improvements as completed and %le 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 presented report details.
Motion: To approve:
1. Improvements as completed and file a Notice of Completion;
2. Exonerate Labor and Materials 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 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.
M
Action: 3. Approve a Sole -Source Contract to West Coast Safety for the Modification
of Emergency Lay -flat Hose and Purchase of Additional Fittings
Recommendation: The Board of Directors approve sole -source contract to West
Coast Safety for the purchase of several fittings and custom length hose, not -to -
exceed of $138,626, including freight/delivery and taxes.
Mr. Esquer presented report details. He stated that the Wastewater
Department has requested additional fittings for the lay -flat house to make
it more user-friendly. He noted that staff suggests a sole -source contract with
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West Coast Safety because they are the original manufacturer of the lay -flat
hose.
Discussion followed regarding the contract's budget.
Vice Secretary Ooten expressed support for this item and noted that it will
improve flexibility.
Motion: To approve:
1. The determination and finding for a sole -source contract instead of
the competitive bidding process as it is in the best interest of the
District for all reasons stated by the District Engineer; and
2. A sole -source contract to West Coast Safety for the modification of
emergency lay -flat hose and purchase of additional fittings.
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: 4. Consider Approving the Acquisition of One (1) New 200 KW Portable
Generator from Quinn Power Caterpillar Company and Appropriate Funds for
$167,000
Recommendation: The Board of Directors:
1. Approve a budge appropriation of $84,000 from the Asset Replacement
Fund, a budget appropriation of $55,400 from the Wastewater Fund Balance
and a budget adjustment of $27,600 from the Annual Sewer Maintenance
Account to the Wastewater Capital Outlay Account totaling $167,000
2. Approve the acquisition of one (1) new 20OKW Portable Caterpillar
Generator from Quinn Power Caterpillar Company for $167,000.
Mr. Esquer presented report details. He shared the procurement process for
a new generator.
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President Scheafer asked if the new generator is the same type as the one
that was damaged.
Mr. Esquer stated- that the damaged generator was depreciated and did not
meet the California Air Resources Board's (CARB) standards.
Discussion followed regarding replacement cost coverage for the new
generator.
Motion: To approve:
1. A budget appropriation of $84,000 from the Asset Replacement Fund,
a budget appropriation of $55,400 from the Wastewater Fund Balance
and a budget adjustment of $27,600 from the Annual Sewer
Maintenance Account to the Wastewater Capital Outlay Account
totaling $167,000;
2. The acquisition of one (1) new 20OKW Portable Caterpillar Generator
from Quinn Power Caterpillar Company for $167,000;
3. A replacement cost coverage claim to the Special Districts Risk
Management Authority for reimbursement of the cost of the new
generator; and
4. The determination and finding that the District is dispensing with the
competitive bidding process because another government agency has
already bid this item.
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.
G. TREASURER'S REPORTS
Action: 1. Investment Report for the Month of September 2024
Recommendation: That the Board of Directors approve the Investment Report for
the month of September 2024.
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District Treasurer, Marc Davis, presented report details.
Motion: To approve the Investment Report for the month of September 2024.
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.
H. ATTORNEYS REPORTS
District Counsel, Alan Burns, shared that Government Code 84308 has been
amended regarding the qualification threshold for campaign contributions.
He stated that the California judicial system has determined that a reduction
in rates does not prompt a Proposition 218 hearing. He discussed a court case
regarding bribery involving a Los Angeles City Councilmember. He also
noted that the California legislature has increased all public works bidding
limits for competitive bidding.
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)
Vice Secretary Ooten stated that OC San discussed rehabilitation projects and
labor negotiations.
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2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Secretary Perry stated that SARFPA meets next week.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
President Scheafer stated that ISDOC had a brief meeting this month.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Vice President Schafer stated that she attended a CSDA Finance Committee
meeting.
S. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
President Scheafer stated that SDRMA meets next week.
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. She shared that she
suggested re -formatting WACO meetings.
President Scheafer shared that he attended an Orange County Council of
Governments (OCCOG) meeting and discussed the recent City/Districts
Liaison Committee meeting.
Vice Secretary Ooten commented on the City/Districts Liaison Committee
meeting and recognized District staff for their presentation.
Director Eckles shared his experience working with the Newport -Mesa
Unified School District (NMUSD) and the City of Costa Mesa.
Secretary Perry expressed support for the City/Districts Liaison Committee
meeting.
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President Scheafer commented on the District's Three -Cart Town Hall
meetings and commended staff for their performance.
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
Mr. Esquer shared that the District recently signed an agreement with the
contractor for the South Coast Plaza Emergency Sewer Replacement and he
will present it to the Board in November.
President Scheafer requested for Mr. Carroll to prepare a response to Ms.
Millard.
Mr. Carroll provided an update on the Wastewater Maintenance Manager
recruitment.
There was no further discussion.
M. ADJOURN TO CLOSED SESSION
None at this time.
N. RECONVENE TO OPEN SESSION
None at this time.
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O. CLOSING ITEMS
Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District
Board of Directors will be held on Monday, November 25, 2024.
President Scheafer adjourned the meeting at 5:53 p.m.
Art Perry
Secretary
Mike Scheafe
President