Loading...
Minutes - Board - 2024-12-23COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING DECEMBER 23, 2024 Members present Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk/Public Information Officer), Alan Burns (District Counsel), Mark Esquer (District Engineer), Angela Colunga (Management Analyst I), Lieu Tran (senior Accountant) Others present Craig Holmes, District resident and Citizen Advisory Committee member Paul Kaymark, Nigro & Nigro 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 Ooten COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Vice President Ooten 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 Ooten, Secretary Perry, Vice Secretary Schafer, and Director Wiltshire 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. 00- Procedural: 6. Ceremonial Matters and Presentations IWITITI-3 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. Action (Consent): 2. Adopt Warrant Resolution No. CMSD 2025-06 Approving District Warrant Registers COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2025-06 approving District warrants for the month of November in the amount of $1,052,325.25. Action (Consent): 3. Approve Payroll Transparency Disclosure for November 2024 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 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): 5. Approve the Occupancy Count of 23,153 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $394,821.16 in the December 2024 Warrant Register for November 2024 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,153; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $394,821.16 in the December 2024 warrant register for November 2024 solid waste collection services. Action (Consent): 6. Approve the Preparation of a Warrant to CR Transfer for $190,246.36 in the December 2024 Warrant Register for November 2024 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $190,246.36 in the December 2024 warrant register for November 2024 recycling and disposal services. Action (Consent): 7. Receive and File November 2024 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 8. Receive and File November 2024 Organics Tonnage Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 9. Investment Report for the Month of November 2024 COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Recommendation: That the Board of Directors approve the Investment Report for the month of November 2024. Action (Consent): 10. Receive and File November 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, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: None There was no discussion. None at this time. E. GENERAL MANAGER REPORTS Action, Receive and File: 1. Receive and File the Annual Comprehensive Financial Report (ACFR) and the Auditor's Required Communication for the year ended June 30, 2024 Recommendation: That the Board of Directors receive and file: 1. The Annual Comprehensive Financial Report for Year Ended June 30, 2024, 2. The Auditor's Required Communication for the Year Ended June 30, 2024. General Manager, Scott Carroll, introduced the item. Senior Accountant, Lieu Tran, presented the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024. She introduced the District's auditor, Nigro & Nigro. She highlighted a few key financial findings of the audit. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Paul Kaymark of Nigro & Nigro discussed the firm's scope of work and presented its financial audit of the District. He stated that the firm has issued an unmodified opinion on the District's annual financial statements. He discussed the financial variances between 2023 and 2024. Secretary Perry asked if the District's net position includes physical assets. Mr. Carroll confirmed that it includes all physical assets. Vice President Ooten commented on the audits operating indicators and financial statistics. Discussion followed regarding trash and wastewater assessments. Mr. Kaymark confirmed that trash assessments increased due to the 2024 rate increase. Discussion followed regarding the District's investment earnings. There was no further discussion, and the report was received. Action, Receive and File: 2. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2024 Recommendation: That the Board of Directors receive and file the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2024. Ms. Tran presented the Popular Annual Financial Report (PAFR) for the year ended June 30, 2024. She noted that the PAFR is a simplified version of the ACFR. She shared that, for the past nine years, the District has earned recognition from the Government Finance Officers Association (GFOA) for its PAFR. President Scheafer explained that not all government agencies produce a PAFR. Mr. Carroll stated that the PAFR is another demonstration of open government and transparency by the District. He noted that an ACFR can be COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 difficult to understand for a member of the public. He added that the PAFR condenses the information of the ACRFR by using tables and graphs so that the public can digest the information. He shared that the District has earned the GFONs Triple Crown Award for its ACFR, PAFR, and budget presentation. Secretary Perry asked if it costs money to produce the PAFR. Mr. Carroll stated that the report is produced internally. Ms. Tran shared that there is a $250 application fee to submit the PAFR to GFOA. There was no further discussion. Action: 3. Consider Authorizing Continuation of Resolution No. 2024-997 Confamiing 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. Carroll presented report details. He shared that construction work for Project #355 South Coast Plaza (SCP) Emergency Sewer Replacement is scheduled to begin on January 6, 2025 and should take about six weeks to complete. Motion: To approve authorizing continuation of Resolution No. 2024-997. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: None COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Motion: To adopt Project #355 SCP Emergency Sewer Replacement at statutory exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15269(b), Emergency Projects. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: None District Engineer, Mark Esquer, provided a brief update on the emergency work performed at the SCP pump station. Discussion followed regarding the cost of the emergency work. 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. Discussion followed regarding weather concerns and emergency overflow projects. President Scheafer inquired about a broken manhole cover on Harbor Boulevard. Secretary Perry stated that the construction work taking place on Harbor Boulevard may have contributed to the manhole damage. Discussion followed regarding the design of the manhole cover. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 There was no further discussion, and the report was received. Action: 2. FY 24-25 Capital Improvement Project Budget Adjustments of $85,000 and Create a new Project #530 SCP Sewers 136136 and 136138 Urgent Capital Repair Recommendation: The Board of Directors: 1. Adopt Project #530 South Coast Plaza Sewers 136136 and 136138 Urgent Capital Repairs as categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a Class 2 project as stated under 15302(c); and 2. Approve the 24-25 FY Capital Outlay Budget Adjustments, as detailed in the Financial Review, below, for a no -cost change to the FY CIP Budget; and 3. Create a new Project #530 SCP Sewers 13613 and 136138 Urgent Capital Repairs Budget of $85,000. Mr. Esquer presented report details. He stated that the SCP maintenance team discovered dirt and soil in the District's sewer lines. He shared that one of the sewer lines had several wastewater taps that were broken and had a minor offset joint due to several grade 5 defects. He stated that staff has set up an emergency lining project for February 2025. He noted that the second sewer line had a major offset joint which will need to be replaced. Discussion followed regarding the location of the sewer work. Vice President Ooten asked why District staff did not recognize these issues. Mr. Esquer stated that these sewer lines were televised two years ago and no offset joints were identified at that time. He added that District staff cleans that location once a year rather than SCP's maintenance team who cleans it three to four times a year due to grease buildup. Motion: To adopt Project #530 South Coast Plaza Sewers 136136 and 136138 Urgent Capital Repairs as categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a Class 2 project as stated under 15302(c) Motion by Bob Ooten, second by Art Perry. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: None Motion: To approve the 24-25 FY Capital Outlay Budget Adjustments, as detailed in the Financial Review, below, for a no -cost change to the FY CIP Budget and create a new Project #530 SCP Sewers 136136 and 136138 Urgent Capital Repairs Budget of $85,000. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: None There was no further discussion. G. TREASURER'S REPORTS None at this time. H. ATTORNEYS 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 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) - (Vice President Ooten) COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Vice President Ooten stated that OC San discussed contract negotiations and rehabilitation projects. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) Secretary Perry stated that SARFPA did not meet this month. 3.Independent Special Districts of Orange County (ISDOC) - (Vice Secretary Schafer) Nothing to report. 4. California Special Districts Association (CSDA) - (Vice Secretary Schafer) Vice Secretary Schafer stated that she attended a CSDA Finance Committee and Board meeting. She shared that the CSDA annual conference will take place in Monterrey next year. S. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer stated that SDRMA discussed their strategic plan at their recent Board meeting. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice Secretary Schafer and Vice Secretary Ooten shared that they attended a Water Advisory Committee of Orange County (WACO) meeting, which discussed the Colorado River. There was no further discussion. T. OLD BUSINESS None at this time. K. NEW BUSINESS COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1.Oral Communications and Director Comments President Scheafer wished everyone a happy holiday and expressed recognition for District staff. Ms. Middenway confirmed that the Board has a special meeting on January 13, 2025 to discussed the 2025-20230 strategic plan. President Scheafer stated that the January Study Session will start at 9:00 a.m. There was no further discussion. M. ADJOURN TO CLOSED SESSION None at this time. N. RECONVENE TO OPEN SESSION None at this time. 0. CLOSING ITEMS Procedural: 1. Adjourn - The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, January 27, 2024. President Scheafer adjourned the meeting at 5:21 p.m. Art Perry Mike Scheafer COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD DECEMBER 23, 2024 Secretary President