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Minutes - Board - 2025-04-15COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING APRm 15, 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), Kaitlin Tran (Finance Manager), Lieu Tran (Senior Accountant), Dyana Bojarski (Administrative Services Manager), Marissa Pereyda (Senior Management Analyst), Mark Esquer (District Engineer), John Gonzalez (Wastewater Maintenance Manager) Others present None Meeting called to order at 9:00 A.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Scheafer President Scheafer called the meeting to order at 9:00 a.m. He stated that the agenda incorrectly states that he is participating in this meeting remotely. He noted that he is attending this meeting in person. Procedural: 2. 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.) President Scheafer called the meeting to order at 9:00 A.M. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 15, 2025 District Clerk and Public Information Officer, Noelani Middenway, noted that President Scheafer, Vice President Ooten, Secretary Perry, Vice Secretary Schafer, and Director Wiltshire were present. General Manager, Scott Carroll, noted that Director Wiltshire is participating remotely due to illness. B. PUBLIC COMMENTS Procedural: 1. Public Comments President Scheafer opened public comments. Hearing none, he closed public comments. C. ITEMS OF STUDY Action, Discussion: 1. Proposed Preliminary Biennial Budget Review for Fiscal Years 2025-26 and 2026-27 Recommendation: That the Board of Directors review, discuss and provide comments, feedback and direction on the proposed preliminary Biennial Budget for the FYs 2025-26 and 2026-27. Finance Manager, Kaitlin Tran, presented report details. She stated that the total proposed budget for Fiscal Year 2025-25 is $17,446,300.00 and for Fiscal Year 2026-27 is $17,826,800.00. She provided an overview of the revenue projections for both fiscal years. Discussion followed regarding property tax revenue. Ms. Tran continued discussing the various revenue sources for both fiscal years. Discussion followed regarding hiring a third -party contractor to collect Christmas Trees. Ms. Tran presented information on non -operating revenue streams. She provided an overview of the projected expenses for both fiscal years. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 150 2025 Vice President Ooten recommended changing service loyalty pay to longevity pay. Administrative Services Manager, Dyana Bojarski, explained that longevity pay is pensionable, which is why District staff recommends service loyalty pay. Ms. Tran discussed the requirements for service loyalty pay. She provided information on the projected salaries and benefits expenses. Vice President Ooten expressed dissatisfaction with CR&R customer service. Senior Management Analyst, Marissa Pereyda, shared that the newly proposed position, Solid Waste Administrative Assistant I, will be dedicated to assisting the District with trash -related phone calls to improve customer service. Ms. Tran continued presenting the proposed personnel budget. Ms. Pereyda shared the tasks and duties of the proposed Solid Waste Administrative Assistant I position. Mr. Carroll discussed the proposed promotion of the Senior Management Analyst to Solid Waste Manager. Wastewater Maintenance Manager, John Gonzalez shared the tasks and duties of the proposed Electrical Instrumentation Technician position. Secretary Perry expressed support for the proposed Electrical Instrumentation Technician position. Ms. Bojarski presented details on District benefits and expenses. President Scheafer expressed support for increases to the District's cafeteria plans. Discussion followed regarding the costs of healthcare plans. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 15, 2025 Ms. Bojarski discussed the estimated costs for workers' compensation and service loyalty pay. She noted that service loyalty pay will not affect an employee's pension. Discussion followed regarding eligibility and the rating system for service loyalty pay. Secretary Perry suggested that employees must achieve all performance goals to receive service loyalty pay. President Scheafer stated that, to receive an "above expectations" rating, the goals should be challenging. Ms. Bojarski stated that service loyalty pay is a one-time payment per year. Discussion followed regarding Medicare and retirement expenses. Ms. Tran provided an overview of the proposed operations and maintenance (O&M) expenses for Fiscal Year 2025-26. She discussed the increases in 0&M cost projections including inflation, increases in cost of living, and the addition of new or expanded projects and events. Mr. Carroll discussed the solar photovoltaic system and Sewer System Management Plan (SSMP) expenses under the Professional Services account. Discussion followed regarding consulting services for the SSMP audit. District Engineer, Mark Esquer, discussed the proposed costs for updating District standards and drawings. Senior Management Analyst, Gina Terraneo, discussed the District's information technology (IT) grant and projects. Ms. Pereyda discussed the proposed cost of a solid waste rate study. Vice President Ooten inquired about a wastewater rate study. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 15, 2025 Mr. Carroll stated that District staff plans on conducting a wastewater rate study in Fiscal Year 2026-27. Mr. Esquer discussed the proposed costs associated with geographic information systems (GIS) sewer maintenance for Fiscal Year 2025-26. Ms. Pereyda discussed the cost projections for trash services for Fiscal Year 2025-26. Ms. Tran noted that certain projections may fluctuate based on tonnage data. She presented the proposed personnel budget and 0&M budget for Fiscal Year 2026-27. She discussed the proposed costs for new accounting software. Mr. Esquer provided information on the proposed parking lot enhancements at District Headquarters. Ms. Pereyda discussed the cost projections for trash services and programs for Fiscal Year 2026-27. Mr. Esquer presented the capital improvement projects (CIP) for Fiscal Years 2025-26 and 2026-27. Ms. Tran discussed budget transfers for both fiscal years and reviewed the proposed budget timeline. Discussion followed regarding the proposed budget amounts for the Asset Management Fund. President Scheafer complimented staff on their budget preparation and knowledge. The Board discussed reevaluating the Asset Management Fund balance. Vice Secretary Schafer commended staff on the budget presentation. D. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 15, 2025 None. Procedural: 2. Adjournment President Scheafer adjourned the meeting at 11:25 A.M. - Art Perry Secretary Mike Scheafer President