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Minutes - Board - 2025-01-27COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING JANUARY 27, 2025 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), Gina Terraneo (Senior Management Analyst), Alexandra Halfman (District Counsel), Marc Davis (District Treasurer), Mark Esquer (District Engineer), Lieu Tran (senior Accountant), Marissa Pereyda (Senior Management Analyst Others present Cindy Brenneman, District resident and Citizen Advisory Committee member Mike Carey, CR&R Sue Lester, District resident and Citizen Advisory Committee member 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. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 Procedural: 3. Invocation - Vice President Ooten 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: 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. None. Procedural: 6. Ceremonial Matters and Presentations None. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Scheafer opened public comments. District resident, Sue Lester, stated that she is speaking as a resident and not on behalf of the Citizens Advisory Committee (CAC). She commented on Board attendance of community virtual meetings. She suggested for the District to strengthen its guidelines on meeting attendance and Board expenses. Hearing no additional comments, President Scheafer closed public comments. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 F. CONSENT CALENDAR Action (Consent): 1. Approve the Board of Directors Study Session Minutes of December 10, 2024 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 2. Approve the Board of Directors Regular Minutes of December 23, 2024 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. Adopt Warrant Resolution No. CMSD 2025-07 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2025-07 approving District warrants for the month of December in the amount of $1,210,349.95. Action (Consent): 4. Approve the Occupancy Count of 23,166 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $395,042.85 in the January 2025 Warrant Register for December 2024 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,166; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $395,042.85 in the January 2025 warrant register for December 2024 solid waste collection services. 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 the Preparation of a Warrant to CR Transfer for $180,213.62 in the January 2025 Warrant Register for December 2024 Recycling and Disposal Services COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $180,213.62 in the January 2025 warrant register for December 2024 recycling and disposal services. Action (Consent): 7. Receive and File December 2024 Organics Tonnage Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 8. Receive and File December 2024 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 9. Approve Payroll Transparency Disclosure for December 2024 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 10. Receive and File December 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 Bob Ooten, second by Art Perry. 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. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS Action, Receive and File: 1. Receive and File the Fiscal Year 2024-25 Mid -Year Budget Review Senior Accountant, Lieu Tran, presented report details. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 Discussion followed regarding budgetary savings in personnel benefits and salaries and Board expenses. There was no further discussion, and the report was received. Action: 2. Discuss Preliminary Budget Calendar for the Fiscal Year 2025-26 and 2026-27 Budgets Recommendation: That the Board of Directors discuss the proposed target dates for adopting the Fiscal Year 2025-26 and 2026-27 Budgets. Finance Manager, Kaitlin Tran, presented report details. She stated that the Board will review the initial budget at the April Study Session. Discussion followed regarding opportunities for Board input. Secretary Perry asked if the preliminary budget calendar was designed by the District or by a regulatory agency. General Manager, Scott Carroll, stated that District staff drafted the preliminary budget calendar. There was no further discussion. Action, Receive and File: 3. Receive and File General Manager's 2024 Performance Goals and Consider Approving his 2025 Performance Goals Recommendation: That the Board of Directors: 1. Receive and file the General Manager's 2024 Performance Goals; and 2. Approve the General Manager's 2025 Performance Goals; and 3. Authorize the President to negotiate a compensation adjustment to the General Manager; and 4. Report back on the tentatively agreed upon adjustment for Board approval consideration Mr. Carroll presented report details. He stated that eight out of the ten performance goals were completed and that two goals were not completed due to budget constraints. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 Discussion followed regarding the proposed 2025 performance goals and project feasibility. Vice President Ooten suggested for each goal to have a more specific timeline. Discussion followed regarding the performance goals related to the Fairview Development Center project. There was no further discussion, and the report was received. Action, Receive and File: 4. Receive and File 2024 Annual Performance Report Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented report details on the District's 2024 Performance Measurements. President Schaefer commented on the District's experience modification WOD) rate. Discussion followed regarding Wellness Program participation. 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 2024-25 Second Quarter Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented report details. Vice President Ooten suggested creating an annual list of strategic goals for the upcoming 2025-2030 Strategic Plan. There was no further discussion, and the report was received. Action, Receive and File: 6. Receive and File 2024 Public Outreach Data COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 Recommendation: That the Board of Directors receive and file this report. Ms. Middenway presented report details. Discussion followed regarding increases in engagement due to the Three - Cart Rollout. Director Wiltshire inquired about website traffic and the average open rate of District emails. She suggested migrating the District's presence on X to Bluesky. Ms. Middenway continued her presentation and discussed 2025 events. President Scheafer shared an interactive idea for rewarding customers who read the District's newsletter. Vice President Ooten suggested advertising the District's Sewer Slayer comic book to increase youth involvement. Secretary Perry inquired about the District's contract with its consulting agency, Tripepi Smith. Ms. Middenway stated that the District's contract with Tripepi Smith is completed but that they are available to perform ad hoc services. Director Wiltshire suggested adding a box on the first page of the newsletter that highlights newsletter articles. There was no further discussion, and the report was received. Action: 7. Consider Authorizing Continuation of Resolution No. 2024-997 Confirming 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. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 2. Approve authorizing continuation of Resolution No. 2024-97. District Engineer, Mark Esquer, provided an update on Project #355 South Coast Plaza (SCP). Discussion followed project costs and impacts. 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 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 Motion: To approve authorizing continuation of Resolution No. 2024-997. 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 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 shared updates on capital improvement projects. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 There was no further discussion, and the report was received. G. TREASURER'S REPORTS Action: 1. Investment Report for the Month of December 2024 Recommendation: The Board of Directors approve the Investment Report for the month of December 2024. Mr. Davis presented report details. Vice President Ooten discussed the Asset Management Fund. Discussion followed regarding the District's vehicle fleet and federal investments. Motion: To approve the Investment Report for the month of December 2024. Motion by Arlene Schafer, 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 further discussion. 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. COSTA MESA SANITARY DISTRICT PAGE 10 MUMTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 1.Orange County Sanitation District (OC San) - (Vice President Ooten) Vice President Ooten stated that OC San is working on their strategic plan and budget process. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Vice President Ooten) Vice President Ooten stated that SARFPA discussed their flood plan protection for Orange County and Prado Dam progress. 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 was appointed to CSDNs Membership Committee, Development Committee, and Finance Committee. 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 Director Wiltshire shared topics covered during the City of Costa Mesa council meeting. Vice Secretary Ooten shared that the Water Advisory Committee of Orange County (WACO) discussed climate extremes. President Scheafer discussed the City/Districts Liaison Committee meeting. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 Vice Secretary Schafer stated that she attended the City/Districts Liaison Committee meeting remotely. Ms. Lester asked if three Board members are allowed to attend the same meeting. President Scheafer stated that the Brown Act applies to informational meetings. Discussion followed regarding meeting types. 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 Vice President Ooten inquired about the District's internal policies regarding Board meeting attendance. There was no further discussion. M. ADJOURN TO CLOSED SESSION None at this time. N. RECONVENE TO OPEN SESSION None at this time. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JANUARY 27, 2025 O. CLOSING ITEMS Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, February 24, 2025. President Scheafer adjourned the meeting at 5:47 p.m. Art Perry Mike Scheaf Secretary President