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2025_03_11_study_sessionTuesday, March 11, 2025 Board of Directors Study Session Time: 9:00 a.m. Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626 *** The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary. *** Public Comments: Members of the public can submit any comments in real time during the meeting or prior to the meeting in writing for the Board of Directors' consideration by sending them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will be made part of the official public record of the meeting. *** Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained from the District Clerk's Office. *** In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Michael Scheafer, President Robert Ooten, Vice President Arthur Perry, Secretary Arlene Schafer, Vice Secretary Nicole Wiltshire, Director Subject 1. 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.) Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type Procedural B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type Procedural C. ADJOURN TO CLOSED SESSION Subject 1. Performance evaluation (Gov. Code §54957) Title: General Manager Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type C. ADJOURN TO CLOSED SESSION Subject 2. Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Scheafer Unrepresented party: General Manager Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type D. RECONVENE TO OPEN SESSION Subject 1. Reconvene to Open Session and Report Out Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type E. ITEMS OF STUDY To: Board of Directors From: Scott Carroll, General Manager Date: March 11, 2025 Subject: Receive Summary of Staff's Attendance to the Water & Wastewater Equipment, Treatment & Transport Show in Indianapolis, Indiana from February 16-19, 2025 Summary The Water & Wastewater Equipment, Treatment & Transport Show (WWETT) is the world's largest annual trade show for wastewater and environmental services professional. More than 12,000 people, and over 500 leading suppliers from over twenty industries attend the WWETT show. In addition, over 45 countries are represented at the show. CMSD's Wastewater Maintenance Supervisors, Tony Gomez and Jesse Blakely attended WWETT25. They will be providing an oral report to the Board about their learning experience at the show that include receiving innovative product demonstrations from exhibitors as well as attending expert-led education breakout sessions. Recommendation That the Board of Directors receives and files this report. Analysis WWETT offers a comprehensive educational program, a full slate of live demos, an array of networking opportunities, and an extensive expo floor where wastewater professionals and product sellers come together to see and experience the latest product innovations and technology. In addition over 90 education sessions, workshops and technical tours are available during the four-day show. Legal Review Not applicable Environmental Review Receiving a summary report about professional development is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Attending WWETT25 is in the FY 2024-25 Budget. A total of $5,600 is budgeted for WWETT25 in which actual expenses are below budget amount. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 11, 2025 Board of Directors study session meeting at District Headquarters and posted on the District’s website. Alternative Actions Subject 1. Receive Summary of Staff's Attendance to the Water & Wastewater Equipment, Treatment & Transport Show in Indianapolis, Indiana from February 16-19, 2025 Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type Discussion Goals 1.0 Sewer Infrastructure 1. Direct staff to report back with more information. E. ITEMS OF STUDY To: Board of Directors Via: Scott Carroll, General Manager From: David Griffin, Code Enforcement Officer Date: March 11, 2025 Subject: Receive and File February 2025 Code Enforcement Officer Report Summary This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti on trash carts, and trash container enforcement. For the month of February 2025, the CMSD Code Enforcement Officer (CEO) focused his efforts on patrols in various parts of the community. The goal is to identify and deter instances of scavenging and residential trash carts left within the public view. Recommendation That the Board of Directors receive and file this report. Analysis In the month of February, Officer Griffin observed 3 individuals searching in trash carts on Puente, Columbia, and Orange Ave. All individuals were advised of the District's scavenging law and given verbal warnings before they went on their way. In the month of February, Officer Griffin issued 185 first warnings notices (yellow tag) to residential properties for having their trash carts in public view. Officer Griffin did not observe graffiti on trash carts in the month of February. To address resident concerns, Officer Griffin is patrolling streets by 6:30 a.m. Legal Review Not applicable. Environmental Review Code enforcement activities and reporting are not a disturbance of the environment similar to grading or construction and do not constitute a project under CEQA or the District’s CEQA Guidelines. Financial Review Officer Griffins' activities are funded in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 11, 2025, Board of Directors Study Session meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments Code Enforcement Officer Report February 2025.pdf (417 KB) Subject 2. Receive and File February 2025 Code Enforcement Officer Report Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type Action (Consent), Receive and File Recommended Action That the Board of Directors receive and file this report. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. ITEMS OF STUDY To: Board of Directors From: Scott Carroll, General Manager Date: March 11, 2025 Subject: Discussion of Orange County Waste and Recycling Proposed Waste Infrastructure System Enhancement (WISE) Agreement Summary Orange County jurisdictions, including CMSD, have benefited from long standing Waste Disposal Agreements (WDAs) that allowed Orange County Waste and Recycling (OCWR) to provide landfill disposal services with reasonable rates (tip fees), disposal guarantees, and importation revenue sharing for each jurisdiction. The WDAs expire on June 30, 2025. With the closure of the Brea Olinda landfill scheduled for FY 28, and the passage of 1383, OCWR believes it is necessary to update the existing agreements to ensure the county can meet or exceed the lifespan of the two remaining landfills in Orange County while at the same time, offer organics processing services to assist jurisdictions be in compliance with SB 1383. Recommendation That the Board of Directors provide direction to staff. Analysis OCWR is proposing to replace the WDA with a new Waste Infrastructure System Enhancement (WISE) Agreement that will strive to accomplish the following objectives: A 10-year county commitment to continue providing the essential public services of waste disposal. New organics processing services. A path forward to compliance with SB 1383 requirements. An efficient and advanced disposal system managed by well trained staff. Landfill diversion through Material Recovery Facilities (MRF) and organics disposal/processing services, including food waste. Continuation of importation revenue to each city/special district. One inclusive rate (tip fee). To assist jurisdictions be in compliance with SB 1383, OCWR is proposing new and expanded organic waste recycling infrastructure that will consist of three phases. Phase 1A - Open Windrow Composting for processing green waste in an open air environment where the material can break down in the presence of oxygen. Phase 1B - Covered aerated static pile composting uses airflow to break down organic waste into compost. The piles are covered to control odors and retain heat. Phase 2 - Co-Digestion for food waste by using Orange County Sanitation District's existing digesters. Phase 3 - High Solids Anaerobic Digestion facility The following is brief overview of the terms of the proposed WISE agreement. Jurisdictions must deliver all controllable organic waste to the County's infrastructure. Jurisdictions shall arrange for the "take back" of its proportional share of finished compost from the County's organic infrastructure on a weekly/monthly basis. Jurisdictions shall be entitled to an Organic Take Back Rebate in the amount of $70/ton for its proportional share of all bulk recovered organic waste project it takes back from the county's organic infrastructure. Subject 3. Discussion of Orange County Waste and Recycling Proposed Waste Infrastructure System Enhancement (WISE) Agreement Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type Discussion Goals 2.0 Solid Waste If jurisdictions fails to meet its organic take back requirement, county reserves the right to limit acceptance of additional controllable organic waste from jurisdictions. Requires jurisdictions to have flow control authority over solid waste materials If a jurisdiction does not have flow control - agreement must be amended by July 1, 2025. Jurisdictions shall notify in writing each Hauler of the County’s third-party beneficiary rights. If the Jurisdiction fails to transport all waste material to the County system, jurisdictions will be fined by the County. Jurisdictions may also opt to send all residential organics to OCW&R. If jurisdictions do not send green material to OCW&R, they must pay a 10% additional per ton fee . 50% of net import revenues will be paid to the participating jurisdictions. The gate rate (tip fee) will increase 92% from $42.65/ton to $82.00/ton and the rate will continue to increase every year for the next ten years when it will top out at $107/ton in 2035, a 151% increase from the current rate. See attachment. OCWR first presented the proposed WISE agreement to cities and special districts leadership on November 20, 2024. The Orange County City Managers Association (OCCMA) created an ad hoc committee to continue meeting with OCWR official to discuss and resolve concerns raised by jurisdiction leadership. CMSD's general manager is serving on the ad hoc committee. On February 20, 2025, the ad hoc committee met with OCWR officials. The committee made it clear that the proposed gate rate increase of 92% and the requirement of organics being delivered to the landfills is unacceptable. The committee informed OCWR that the majority of jurisdictions already have contracts in place to comply with SB 1383, so the county's ambitious plan to expand its organics recycling infrastructure is not necessary. It was also suggested OCWR create two separate gate fees; one for trash and the other for organics. The committee also made it clear to OCWR having the WISE agreement executed and implemented by July 1, 2025 is unrealistic because of Prop 218 and public outreach requirements. The committee recommended the WDA be extended for another year, ending on June 30, 2026. At the February 20 meeting, OCWR officials agreed to extend the WDA for six months, ending on December 31, 2025. They propose the WISE agreement goes into effect on January 1, 2026 and the gate fee to increase to $67.76. The ad hoc committee rejected OCWR latest proposal. OCWR admitted the 92% rate increase is not primarily due to expanding its organics waste recycling infrastructure, but rather its due to the current gate fee of $42.65 not being sustainable, as the county landfill system will be operating in a deficit in a few years. See attachment. The committee created a technical advisory subcommittee to review OCWR finances to better understand the projected deficit and to seek clarity regarding the reasons for the proposed rate increase. CMSD Treasurer, Marc Davis, is serving on the subcommittee. The ad hoc committee and OCWR are meeting again on March 11 at 9:00 am. Marissa Pereyda will be representing CMSD at the meeting. Legal Review Not applicable at this time; however, when cities/special districts leadership and OCWR agree on the terms, a revised WISE agreement will be presented to District Counsel for review. Environmental Review Receiving a summary report about negotiations with OCWR regarding landfill disposal services is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Unknown at this time. When the jurisdictions and OCWR agree on a gate fee for trash disposal, staff will perform a financial analysis to determine the financial impacts, if any, to the district. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 11, 2025 Board of Directors study session meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information. File Attachments Project WISE Gate Rate Per Ton.pdf (91 KB) OCWR Operating Cash Balance.pdf (240 KB) E. ITEMS OF STUDY To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 11, 2025 Subject: Receive and File Six (6) Citizens Advisory Committee Applications Summary There are currently a total of five (5) vacancies on the Citizens Advisory Committee (CAC) that require the Board to appoint new members to serve on the committee. Recommendation That the Board of Directors receive and file six (6) Citizens Advisory Committee (CAC) applications for appointment consideration at the March 24, 2025 Board of Directors meeting. Analysis The Citizens Advisory Committee (CAC) consists of 11 members that provide advisory input on subject matters desired by the Board of Directors. CAC members serve staggered two-year terms. Five (5) vacancies currently exist for the upcoming 2025-2027 term. District staff publicized these vacancies for a total of 5 weeks on the District's website, as well as through targeted email campaigns and social media posts. A total of six (6) applications were received from the following individuals: Sue Lester Current CAC Chair Served on CAC a total of 3.5 terms, 2018-2019, 2019-2021, 2021-2023 and 2023-2025 District 5 resident Cindy Brenneman Current CAC Member Served on CAC a total of 2 terms, 2021-2023 and 2023-2025 District 3 resident Jeff Arbour Current CAC Member Served on CAC a total of 2 terms, 2021-2023 and 2023-2025 District 1 resident Brooke Natzke New applicant District 4 resident Donald Neal New applicant District 5 resident Shayanne Wright New applicant District 5 resident Currently, for the 2024-2026 CAC terms, there is (1) member from District 1, (1) member from District 2, (1) member from District 3, (2) members from District 4, and (1) member from District 5. Each of the redacted applications are attached to the staff report for the Board's consideration. The Board will be asked to appoint members to fill the vacancies at the March 24, 2025 Board of Directors meeting. Subject 4. Receive and File Six (6) Citizens Advisory Committee Applications Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type Discussion, Receive and File Legal Review Not applicable. Environmental Review Appointing members to the Citizens Advisory Committee is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 11, 2025 Board of Directors Study Session at District Headquarters and posted on the District’s website. Alternative Actions Refer the matter back to staff. File Attachments Lester_Sue_redacted.pdf (184 KB) Brenneman_Cindy_redacted.pdf (189 KB) Arbour_Jeff_redacted.pdf (240 KB) Natzke_Brooke_redacted.pdf (169 KB) Natzke_Brooke_resume_redacted.pdf (101 KB) Neal_Donald_redacted.pdf (163 KB) Neal_Donald_resume_redacted.pdf (168 KB) Wright_Shayanne_redacted.pdf (170 KB) F. CLOSING ITEMS Subject 1. Oral Communications and Director Comments Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type F. CLOSING ITEMS The next Study Session of the Costa Mesa Sanitary District Board of Directors will be held at 9:00 a.m. on Tuesday, April 8, 2025 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. Subject 2. Adjournment Meeting Mar 11, 2025 - Board of Directors Study Session Access Public Type Procedural