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Minutes - Board - 2025-03-24COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MARCH 24, 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), Alan Burns (District Counsel), Marc Davis (District Treasurer), Dyana Bojarski (Administrative Services Manager), Mark Esquer (District Engineer), Kaitlin Tran (Finance Manager), Marissa Pereyda (Senior Management Analyst) Others present Anthony Elowsky, RDN Cindy Brenneman, District resident and Citizens Advisory Committee Applicant Michael Tou, District resident and Citizens Advisory Committee Vice Chair Shayanne Wright, District resident and Citizens Advisory Committee Applicant Sue Lester, District resident and Citizens Advisory Committee Applicant Meeting called to order at 4:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - Vice President Ooten District Counsel, Alan Burns, shared that President Scheafer is currently on District business and has joined the meeting remotely. He stated that Vice President Ooten will be presiding over the meeting. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 General Manager, Scott Carroll, explained Assembly Bill (AB) 2449, which allows board members to attend meetings remotely due to District -related travel. The request for remote participation based on exceptions provided by AB 2448 having properly been made, the meeting continued allowing remote participation by President Scheafer. Vice President Ooten called the meeting to order at 4:30 P.M. Procedural: 2. Pledge of Allegiance - Vice President Ooten Vice President Ooten led the Pledge of Allegiance. 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. There was no further discussion. 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. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 B. PUBLIC COMMENTS Procedural: 1. Public Comments None. E. CONSENT CALENDAR Action (Consent): 1. Approve the Board of Directors Special Meeting Minutes of January 13, 2025 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 2. Approve the Board of Directors Study Session Minutes of February 24, 2025 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. Approve the Board of Directors Regular Minutes of February 24, 2025 Recommendation: That the Board of Directors approve the meeting minutes as presented. 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. Adopt Warrant Resolution No. CMSD 2025-09 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2025-09 approving District warrants for the month of February in the amount of $1,129,737.39. Action (Consent): 6. Approve Payroll Transparency Disclosure for February 2025 Recommendation: That the Board of Directors approve and file the report. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 Action (Consent): 7. Receive and File February 2025 Organics Tonnage Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 8. Approve the Occupancy Count of 23,185 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $395,366.85 in the March 2025 Warrant Register for February 2025 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,185; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $395,366.85 in the March 2025 warrant register for February 2025 solid waste collection services. Action (Consent): 9. Approve the Preparation of a Warrant to CR Transfer for $150,691.02 in the March 2025 Warrant Register for February 2025 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $150,691.02 in the March 2025 warrant register for February 2025 recycling and disposal services. Action (Consent):10. Approve Investment Report for the Month of February 2025 Recommendation: That the Board of Directors approve the Investment Report for the month of February 2025. Action (Consent): 11. Receive and File February 202S 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. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 F. PUBLIC HEARINGS None at this time. G. GENERAL MANAGER REPORTS Action:1. Consider Appointment of Five (5) Citizens Advisory Committee Members Recommendation: That the Board of Directors consider appointing five (5) Citizens Advisory Members to fill the existing vacancies for five (5) two-year terms ending in 2027. Vice President Ooten asked for discussion. President Scheafer noted that some of the proposed appointees might be in attendance to make public comment. Citizens Advisory Committee (CAC) applicant, Sue Lester, shared that she is reapplying to the CAC. She stated that, in the seven years that she has served on the CAC, she never missed a meeting. She added that she was excited to see that the District received more applications than available positions. She expressed support for CAC incumbents, Cindy Brenneman and Jeff Arbour. She suggested creating alternate, non -voting positions for the CAC. Citizens Advisory Committee (CAC) applicant, Shayanne Wright, expanded upon her CAC application and shared her background in technology and software. She noted that she has been a Costa Mesa resident for many years and has recently become a homeowner. She also shared that she is a Chief Financial Officer of a clothing company based in Costa Mesa. She stated that she has financial and project management skills and has served on the City of Costa Mesa- s Parks and Community Services Commission. Citizens Advisory Committee (CAC) applicant, Cindy Brenneman, commented that she has thoroughly enjoyed her time on the CAC. She shared that she has been a Costa Mesa resident since 1972 and has spent a lot of her time volunteering within the City in many different aspects. She expressed support for working with District staff and the Board and at District events. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 Secretary Perry commented on the current makeup of the CAC based on the District divisions. He recommended appointing two out of the three applicants from District S. Motion: To appoint Sue Lester, Cindy Brenneman, Jeff Arbour, Brooke Natzke, and Shayanne Wright to fill the existing vacancies for five (2) two- year terms ending in 2027. 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. H. 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. District Engineer, Mark Esquer, shared updates on capital improvement proj ects. Vice President Ooten requested to discuss Item F4 prior to Item F2. There was no further discussion, and the report was received. Action: 4. Consider Transferring $170,000 from the FY 2024-2025 Capital Improvement Budget to Provide Additional Funding for Project 355 South Coast Plaza Emergency Sewer Replacement Recommendation: The Board of Directors approve transferring $170,000 from the FY 2024-2025 Capital Improvement Budget to provide additional funding for Project 355 South Coast Plaza Emergency Sewer Replacement. Mr. Esquer provided report details. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 Motion: To approve transferring $170,000 from the FY 2024-25 Capital Improvement Budget to provide additional funding for Project 355 South Coast Plaza Emergency Sewer Replacement. 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 Vice President Ooten requested for Mr. Esquer to continue with Item F2. There was no further discussion. Action, Discussion: 2. Review Sewer Building Permit and Fixture Fee Preliminary Study Information Recommendation: The Board of Directors discuss the Permit Program, ask questions, and provide feedback. Mr. Esquer provided an overview of the Sewer Building Permit and Fixture Fee Preliminary Study and introduced Anthony Elowsky with Robert D. Niehaus, Inc. (RDN). Mr. Elowsky provided a presentation about the study and proposed fee structure options. District resident and Citizen Advisory Committee Vice Chair, Michael Tou, entered the meeting at 5:19 p.m. Secretary Perry inquired about the manhole elevation fee. President Scheafer inquired about the annexation fee. Mr. Esquer provided clarification for the manhole elevation and annexation fees. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 Discussion followed regarding contractors who have performed work without a sewer permit. Secretary Perry inquired about the residential properties located at the Fairview Developmental Center. Mr. Elowsky continued his presentation on the study. He shared that the Citizens Advisory Committee has recommended proceeding with Option 1 of the study. President Scheafer asked if the proposed fixture fees are subject to a Proposition 218 hearing. Mr. Burns confirmed that these are not subject to a Proposition 218 hearing. Mr. Esquer shared the District's efforts to communicate these changes with the public and business community. Discussion followed regarding the study's calculation for cost per gallon. Ms. Esquer explained the next steps of the study and the differences between the two proposed options. There was no further discussion. Action: 3. Consider Determining a Sole -Source Contract with Jamison Engineering Contractors for Installing One Odor Control Scrubber at Elden Pump Station is in the Best Interest of the District Recommendation: The Board of Directors determine a sole source contract with Jamison Engineering Contractors for installing one odor control scrubber at Elden Pump Station is in the best interest of the District and authorize the General Manager to sign the contract in the amount of $23,500. Ms. Esquer provided report details and noted that his report incorrectly states Section 4.04.100 (e) of the District's Operations Code. He stated that it should have listed Section 4.05.050 (a). COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 Mr. Burns clarified that this item is not considered a sole -source exception rather it is a negotiated contract exception under Section 4.05.050 (a) of the District's Operation Code. Discussion followed regarding installation costs. Motion: To: 1. Adopt the replacement of existing sewer infrastructure, with in -kind capacity, as categorically exempt from 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) "Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity." 2. Make findings that this project essentially replaces a ventilation fan that exceeded its useful life, the project will not change the station capacity and only provides for replacement of the ventilation fan and improved odor handling, and this odor scrubber will not increase the capacity of the Elden pump station and will reduce the number of complaints from the golf club and surrounding community. 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 Motion: To make a finding to award to Jamison Engineering using the authority of a negotiated contract under $60,000, per Section 4.05.050 (a) of the District's Operations Code. 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 COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 There was no further discussion. I. TREASURER'S REPORTS None at this time. J. ATTORNEY'S REPORTS Action:1. Oral Report of Executive Compensation (General Manager) (Government Code §54953(c)(3)) Mr. Burns provided report details. He stated that the General Manager and the Board of Directors have reached a tentative agreement on the General Manager's annual compensation increase and that the parties have agreed that the General Manager's compensation shall be increased by 6% of his salary. He stated that the General Manager's salary shall therefore be $245,373.08 and that other benefits will be based on this amount and that it is retroactive to his salary date in January 2025. Action: 2. Consider Approving Third Amendment to Restated Employment Agreement for Scott Carroll, General Manager, and Consider Approving General Manager's Annual Compensation of $245,373.08. Motion: To approve Third Amendment to Restated Employment Agreement (Scott Carroll). 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. K. 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 COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 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) Vice President Ooten shared that OC San discussed their strategic plan, board services, and transparency and ethics at their recent board meeting. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) Nothing to report. 3.Independent Special Districts of Orange County (ISDOC) - (Vice Secretary Schafer) President Scheafer stated that ISDOC is currently discussing their membership dues and their next quarterly meeting. 4. California Special Districts Association (CSDA) - (Vice Secretary Schafer) Vice Secretary Schafer stated that she attended a CSDA Finance Committee meeting. S. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer stated that he is currently in Sacramento for SDRMA's Board meeting. 6.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer shared that he will be attending the grand opening of the Mesa Water Education Center on Friday, March 28 with Ms. Middenway. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MARCH 24, 2025 Director Wiltshire shared that she attended Representative Dave Min's town hall meeting. There was no further discussion. L. OLD BUSINESS None at this time. M. NEW BUSINESS None at this time. N. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments President Scheafer thanked Vice President Ooten for presiding over the meeting. There was no further discussion. 0. CLOSING ITEMS Procedural: 1. Adjourn - The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, April 28, 2025. Vice President Ooten adjourned the meeting at 5:51 p.m. Art Perry Mike Scheafer Secretary President