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Minutes - Board - 2025-04-28COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING APRIL 28, 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), William Curley III (District Counsel), Marc Davis (District Treasurer), Dyana Wick (Administrative Services Manager), Mark Esquer (District Engineer), Marissa Pereyda (Senior Management Analyst), Lieu Tran (Senior Accountant) Others present Julie Barreda, CR&R Mike Carey, CR&R Michael Tou, District resident & Citizen Advisory Committee Vice Chair Reina Cuthill, Love Costa Mesa 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 COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 282 2025 President Scheafer 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. B. PUBLIC COMMENTS Procedural: 1. Public Comments None. C. CONSENT CALENDAR Action (Consent): 1. Approve the Board of Directors Study Session Minutes of March 11, 2025 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 282 2025 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 2. Approve the Board of Directors Regular Minutes of March 24, 2025 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. 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): 4. Adopt Warrant Resolution No. CMSD, 2025-10 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2025-09 approving District warrants for the month of March in the amount of $2,137,075.04. Action (Consent): S. Approve Payroll Transparency Disclosure for March 2025 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 6. Receive and File March 2025 Organics Tonnage Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 7. Approve the Preparation of a Warrant to CR Transfer for $58,545.69 in the April 2025 Warrant Register for March 2025 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $58,545.69 in the April 2025 warrant register for March 2025 recycling and disposal services. Action (Consent): 8. Approve the Occupancy Count of 23,182 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $395,315.69 in the April 2025 Warrant Register for March 2025 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,182; and COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 2. Direct staff to prepare a warrant to CR&R Environmental Services for $395,315.69 in the April 2025 warrant register for March 2025 solid waste collection services. Action (Consent): 9. Receive and File March 2025 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: 1. Consider Approving Second Amendment to Waste Disposal Agreement with County of Orange Recommendation: That the Board of Directors approve the Second Amendment to the Waste Disposal Agreement with the County of Orange. General Manager, Scott Carroll, provided report details. He explained landfill tipping fees. District Counsel, William Curley, stated that the increased tipping fees due to the County of Orange's shortfalls has had a countywide impact. Vice President Ooten inquired about the next solid waste rate study. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 Motion: To approve the Second Amendment to the Waste Disposal Agreement with the County of Orange. 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 further discussion. Action: 2. Consider Approving CR&R Incorporated Annual Request for CPI Rate Adjustment Recommendation: That the Board of Directors consider approving CR&R's proposal for a 3.1% CPI rate adjustment request. Senior Management Analyst, Marissa Pereyda, provided report details. Motion: To approve CR&R's proposal for a 3.1% CPI rate adjustment. 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 further discussion. Action: 3. Hiring a Third -Party Contractor to Pick Up Christmas Trees Recommendation: That the Board of Directors provide direction to staff. Mr. Carroll provided report details. Vice President Ooten asked if this issue was included in the last community survey. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 Mr. Carroll stated that it was not included in the survey, but it can be added to the next survey. Discussion followed regarding call volume and CR&R customer service. Secretary Perry stated that CR&R should not be charged extra for servicing customers who request a pickup outside of the Christmas tree collection window. Ms. Pereyda clarified that requests that are submitted outside of the collection window are reported as a large item request and not a missed Christmas Tree pickup. President Scheafer stated that there may be instances where the customer did not place their tree curbside for pickup during the collection window but reported that they did, so that it would reflect poorly on CR&R. He added that all customers now have an Organics Recycling Cart due to the Three -Cart System. He suggested providing more education on how to use the Organics Recycling Cart as a second option for disposing of a Christmas tree. Mr. Carroll suggested forgoing the hiring of a third -party contractor for 2026 and conducting more research and education on Christmas tree disposal. Discussion followed regarding customer complaints and phone calls. Director Wiltshire asked if the collection window can be extended. CR&R representative, Julie Barreda, stated that CR&R changed the collection window to the first two weeks of January. She noted that CR&R will collect and sort flocked trees for landfill disposal. Director Wiltshire stated that multifamily properties with a dumpster do not receive any Christmas tree collection information. There was no further discussion. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 Action: 4. Adoption of the 2025 Multi Jurisdictional Hazard Mitigation Plan (MJHMP) Recommendation: That the Board of Directors adopt Resolution No. 2025-999 Adopting the Orange County Water and Wastewater Multijurisdictional Hazard Mitigation Plan. Mr. Carroll provided report details. He noted that districts that are not included in the Multi -jurisdictional Hazard Mitigation Plan are required to draft their own plan. Motion: To adopt Resolution No. 2025-999 Adopting the Orange County Water and Wastewater Multijurisdictional Hazard Mitigation Plan. Motion by Art Perry, second by Nicole Wiltshire. 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. Action, Receive and File: S. Receive and File the Fiscal Year 2024-25 Third Quarter Budget Review Recommendation: That the Board of Directors receive and file the Fiscal Year 2024- 25 Third Quarter Budget Review. Senior Accountant, Lieu Tran presented the 2024-25 Third Quarter Budget Review. There was no further discussion, and the report was received. Action, Receive and File: 6. Receive and File 2025 Performance Report —1st Quarter (January -March) Calendar Year Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented the quarterly performance report. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 282 2025 Vice President Ooten recommended an edit to the reporting mechanism for the wastewater cleaning section of the report. President Scheafer commented on staff participation in the Employee Wellness Program. There was no further discussion, and the report was received. Action: 7. Consider Approving Contribution Application for Costa Mesa -Newport Harbor Fish Fry Recommendation: That the Board of Directors: 1. Approve the Costa Mesa Newport Harbor Lions Club's Contribution Application requesting 3 District generators for the Fish Fry event; and 2. Make a finding that this contribution will increase District visibility and promote the District's purpose of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. Senior Management Analyst, Gina Terraneo, presented report details. Discussion followed regarding the District's booth location. Motion: To: 1. Approve the Costa Mesa -Newport Harbor Lions Club's Contribution Application requesting 3 District generators for the Fish Fry event; and 2. Make a finding that this contribution will -increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. 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 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 There was no further discussion. Action: 8. Consider Approving Contribution Application for Love Costa Mesa City Wide Volunteer Day Recommendation: That the Board of Directors: 1. Determine whether the contribution will serve one of the District's statutory purposes and describe how the purpose will be advanced. 2. Consider approving the contribution request to sponsor the Love Costa Mesa City Wide Volunteer Day event on May 17, 2025. Ms. Terraneo presented report details. Reina Cuthill with Love Costa Mesa commented that any donation amount will result in a booth at the Love Costa Mesa Day event. She provided event information. Discussion followed regarding donation amounts. Gina stated that the District has a remaining balance of $4,500 in the sponsorship account. The Board discussed the District's contribution amount. President Scheafer complimented the event. Motion: To: 1. Make a finding that the contribution will serve the District's statutory purposes of solid waste collection and recycling, which will be advanced by increasing District visibility with a community booth that educates the public about the 3-Cart collection system and various special programs. 2. Approve the contribution request to sponsor the Love Costa Mesa City Wide Volunteer Day event on May 17, 2025 in the amount of $1500. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 Abstain: None Not Present: None There was no 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. District Engineer, Mark Esquer, shared updates on capital improvement projects. Discussion followed regarding the close out procedures for Project No 350 Hitch Crafter Building Demolition. Mr. Esquer discussed Project No 530 South Coast Plaza Urgent Sewer Replacement. There was no further discussion, and the report was received. Action: 2. Project No 335 South Coast Plaza Emergency Sewer Replacement: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, Exonerate Faithful Performance Bond, and approve the Close -Out Agreement Recommendation: The Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Materials Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. 4. Approve the Close -Out Agreement. Mr. Esquer provided report details. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 Motion: To: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Materials Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded; and 4. Approve the Close -Out Agreement Approve the Close -Out Agreement. 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. G. TREASURER'S REPORTS Action: 1. Investment Report for the Month of March 2025 Recommendation: The Board of Directors approve the Investment Report for the month of March 2025. District Treasurer, Marc Davis, presented report details. Motion: To approve the Investment Report for the month of March 2025. Motion by Bob Ooten, second by Nicole Wiltshire. 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 COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 Mr. Curley shared that District Counsel, Alan Burns, is recovering well. There was no further discussion. 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) Vice President Ooten shared that OC San discussed their strategic plan and sewer system management update at their recent board meeting. He shared that they are conducting a digital asset management study. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) Secretary Perry shared that SARFPA meets next 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 CSDA is preparing for their annual conference. 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 President Scheafer stated SDRMA has terminated their Chief Executive Officer (CEO) and shared that their Chief Risk Officer will serve as interim CEO. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Ooten shared that he attended a Water Advisory Committee of Orange County (WACO) meeting which discussed the Sykes Reservoir. President Scheafer shared the Board attended the recent Liaison Committee meeting. He added that he attended an Orange County Council of Governments (OCCOG) meeting, which elected a new chair and vice chair and had a presentation from an Air Quality Management District (AQMD) representative. Director Wiltshire shared that she attended an Animal Services Committee meeting, which discussed allocating resources to educate the public about animal services. There was no further discussion. 1.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 There was no discussion. 0. CLOSING ITEMS COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD APRIL 28, 2025 Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, May 27, 2025. President Scheafer adjourned the meeting at 5:46 p.m. Art Perry Miklop e AScheafer Secretary President