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Minutes - Board - 2025-05-27COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING MAY 27, 2025 Members present Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire Members absent Arlene Schafer 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 Wick (Administrative Services Manager), Marissa Pereyda (Senior Management Analyst), Kaitlin Tran (Financial Manager), Mark Esquer (District Engineer) Others present Anthony Elowsky, RDN Julie Barreda, CR&R 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 MAY 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, and Director Wiltshire were present while Vice Secretary Schafer was not present. President Scheafer stated that Vice Secretary Schafer is absent due to illness. 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 President Scheafer opened public comments. CR&R representative, Julie Barreda, commented on a traffic congestion issue on Santa Ana Avenue that was brought to her attention by Director Wiltshire. She shared that CR&R has rerouted all customers on Santa Ana Avenue to be serviced in the morning rather than the afternoon. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 Hearing no additional comments, President Scheafer closed public comments. C. CONSENT CALENDAR Action (Consent):1. Approve the Board of Directors Study Session Minutes of April 822025 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 2. Approve the Board of Directors Special Meeting Minutes of April 15, 2025 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. Approve the Board of Directors Regular Minutes of April 28, 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 2025-11 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2025-11 approving District warrants for the month of April in the amount of $1,105,621.44. Action (Consent): 6. Approve Payroll Transparency Disclosure for April 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 MAY 27, 2025 Action (Consent): 7. Approve the Preparation of a Warrant to CR Transfer for $74,787.29 in the May 2025 Warrant Register for April 2025 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $74,787.29 in the May 2025 warrant register for April 2025 recycling and disposal services. Action (Consent): 8. Approve the Occupancy Count of 23,209 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $395,776.11 in the May 2025 Warrant Register for April 2025 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,209; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $395,776.11 in the May 2025 warrant register for April 2025 solid waste collection services. Action (Consent): 9. Investment Report for the Month of April. 2025 Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File April 2025 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Motion: To approve the Consent Calendar, except for Item C7. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer The Board pulled Item C7 for discussion. General Manager, Scott Carroll, shared details regarding Item C7. He stated that the District has not paid any recycling invoices since the rollout of the Three -Cart System due to data discrepancies. He noted that staff are working with CR&R to resolve these issues. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 Ms. Barreda shared that a CR&R billing specialist resigned from CR&R, which led to multiple invoicing issues. She confirmed that CR&R staff are working to correct the recycling invoice errors. Senior Management Analyst, Marissa Pereyda confirmed that CR&R's invoicing errors date back to October 2024 and include misapplied organics, landfill, and recycling loads. She stated that staff are expecting to receive updated invoices, weight tickets, and diversion reports from CR&R. President Schaefer thanked staff for working with CR&R to correct these issues and requested an update on this item at the June Study Session. Motion: To approve Item C7. Motion by Nicole Wiltshire, second by Bob Ooten. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer There was no discussion. D. PUBLIC HEARINGS None at this time. E. GENERAL MANAGER REPORTS Action:1. Approve Auditor Engagement Letter for Fiscal Year 2024-25 Audit Recommendation: That the Board of Directors accepts the Auditor Engagement Letter for Fiscal Year 2024-25 Audit and authorizes President Scheafer to sign the Engagement Letter on behalf of CMSD. Finance Manager, Kaitlin Tran, provided report details regarding the Audit Engagement Letter for Fiscal Year 2024-25 from Nigro & Nigro, PC. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 President Scheafer asked how long the District has been working with Nigro & Nigro, PC. Ms. Tran stated that this will be the District's fifth year working with them. She noted that the District will be going out to bid for auditing services next year. Mr. Carroll provided more details regarding the bidding process. Motion: To accept the auditor engagement letter for the Fiscal Year 2024-25 audit and authorize President Scheafer to sign the engagement letter on behalf of CMSD. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer There was no further discussion. Action: 2. Authorization to Begin Recruitment for Expanded Staffing Needs Recommendation: That the Board of Directors approves moving forward with recruitment for additional staff prior to the approval of the biennial budget. Administrative Services Manager, Dyana Wick, shared report details. Secretary Perry asked if the District has any current staff members that would qualify for the Electrical Instrumentation Technician position. Mr. Carroll stated that the District is looking to recruit a new employee because the position is extremely technical. Discussion followed regarding recruitment methods. President Scheafer asked if the District shares its job openings with the California Special Districts Association (CSDA). COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 Ms. Wick stated that staff shared the Electrical Instrumentation Technician position with the California Water Environmental Association (CWEA). Vice President Ooten asked if it is required to state that the position is not yet approved by the Board during the recruitment process. Ms. Wick stated that the District will accept and review applications but not issue any job offers until after July 1, 2025. Mr. Carroll stated that staff can add "pending Board approval" to the job applications. Discussion followed regarding job qualifications. Motion: To approve moving forward with recruitment for additional staff prior to the approval of the biennial budget. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer There was no further discussion. Action: 3. Review and Comment on Draft FY 2025-30 Strategic Plan Recommendation: That the Board of Directors provide comments and direction to staff on the draft FY 2025-30 Strategic Plan. Mr. Carroll presented the 2025-30 Strategic Plan for additional review and comments. President Scheafer stated that he prefers the word "value" rather than "promote" for the core value of balance. He expressed support for the core value of sustainability. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 Secretary Perry and Vice President Ooten agreed with President Scheafer- s suggestions. Discussion followed regarding the position of a dedicated customer service employee and escalated customer service issues. Vice President Ooten suggested creating a work plan for "ongoing" items to establish a deadline. Director Wiltshire inquired about lockable recycling carts. Mr. Carroll stated that staff plan to present their suggestions for lockable carts in 2026. Ms. Barreda stated that CR&R does not offer lockable carts. She noted that they are typically used to keep bears out of trash carts in other areas. She noted that they are expensive and that CR&R will brainstorm other manufacturing ideas. Discussion followed regarding scavenging prevention and the impact of recycling revenue on trash rates. President Scheafer suggested having the Code Enforcement Officer provide more information on scavenging sources. Vice President Ooten suggested including the topic of lockable carts in the biennial community survey. Discussion followed regarding anti -scavenging stickers. Ms. Barreda discussed the effects of scavenging on CR&Ws operational costs. Director Wiltshire inquired about hiring an additional Code Enforcement Officer or adding temporary employees to assist with code enforcement duties. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 Mr. Carroll stated that the position used to be part-time and is now a full- time position. He noted that staff will have to research the costs for additional code enforcement staffing since it was not included in the proposed Fiscal Years 2025-26 and 2026-27 budgets. 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. District Engineer, Mark Esquer, shared updates on capital improvement proj ects. Discussion followed regarding grade 5 manholes. There was no further discussion, and the report was received. Action: 2. Adopt Permit and Fixture Fee Increases for FY 2025-26 Recommendation: The Board of Directors: 1. Receive and File final Fee Study Report, dated May 19, 2025, and 2. Effective July 1st, 2025, Adopt the 5-year Permit Fee Schedule, and 3. Effective July 1st, 2025, Adopt the Alternative 1A 5-Year Fixture Fee Schedule Mr. Esquer presented report details and reviewed the study's findings and recommendations. President Scheafer asked if the fixture fee updates will help balance the District's budget. Mr. Esquer stated that fixture fees are restricted and can only be used on projects that benefit the entire service area. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 President Scheafer asked if the fixture fees can be changed during the proposed 5-year schedule to adjust for inflation. Mr. Esquer stated that the schedule cannot be adjusted once it is approved. He noted that he can present the fee schedule to the Board to address any necessary changes. District Counsel, Alan Burns, stated that the Board can have another hearing to update the fixture fee schedule. He added that this item will be followed up with an ordinance to adopt the new fee schedule. Director Wiltshire inquired about the report's recommendations. Motion: To receive and file the Final Fee Study Report, dated May 19, 2025. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer Motion: To approve the 5-year Permit Fee Schedule, effective July 1st, 2025. Motion by Art Perry, second by Nicole Wiltshire. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer Motion: To approve the Alternative 1A 5-Year Fixture Fee Schedule, effective July 1st, 2025. Motion by Bob Ooten, second by Art Perry. President Scheafer expressed support for Option 2 5-Year Fixture Fee Schedule. Final Resolution: Motion Carries 4-0-0-1 COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer Secretary Perry discussed the construction plans at the Fairview Developmental Center. There was no further discussion. Action: 3. Delegate to the General Manager Authority to Award the #349A Mendoza Sewer Extension Project Contract to the Lowest Responsible Bidder Recommendation: The Board of Directors: 1. Adopt the 349 Mendoza Sewer Extension project as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15302, Class 2; and 2. Delegate Authority to the General Manager to award a contract to the lowest responsive and responsible bidder in an amount not to exceed $140,000; and 3. Approve a 10% contingency in the amount not to exceed $14,000; and 4. Direct staff to bring this item for ratification to the Board of Directors July 2025 meeting. Mr. Esquer provided report details. He shared information regarding the City of Costa Mesa's paving improvements for Baker Avenue and Mendoza Avenue. Motion: To adopt the 349 Mendoza Sewer Extension project as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15302, Class 2. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer Motion: To: COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 1. Delegate authority to the General Manager to award a contract to the lowest responsive and responsible bidder in an amount not to exceed $160,000; and 2. Approve a 10% contingency in the amount not to exceed $16,000; and 3. Direct Staff to bring this item for ratification to the Board of Directors July 2025 Meeting. Motion by Art Perry, second by Nicole Wiltshire. Final Resolution: Motion Carries 4-0-0-1 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: Arlene Schafer There was no further discussion. G. TREASURER'S REPORTS None. H. ATTORNEYS REPORTS None. 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 days 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- s Board meeting takes place this Wednesday and discussed the meeting agenda. COSTA MESA SANITARY DISTRICT PAGE 13 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) Secretary Perry shared that SARFPA discussed ongoing and completed projects. 3.Independent Special Districts of Orange County (ISDOC) - (Vice Secretary Schafer) President Scheafer shared that ISDOC is looking for a Board Secretary. 4. California Special Districts Association (CSDA) - (Vice Secretary Schafer) None. S. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer stated SDRMA had a special Board meeting and shared that their Chief Risk Officer will serve as interim CEO. He added that SDRMNs Board meeting takes place next week in Sacramento. He announced the five candidates on the ballot for the four open Board seats. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer shared that he attended an Orange County Council of Governments (OCCOG) meeting. Director Wiltshire shared that she attended a Costa Mesa City Council meeting. There was no further discussion. 1.OLD BUSINESS None at this time. COSTA MESA SANITARY DISTRICT PAGE 14 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 27, 2025 K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments President Scheafer shared that his neighbor's property failed to close escrow due to the proposed buyer having concerns over sewage odors from OC San sewers. Vice President Ooten discussed OC San's efforts to mitigate sewer odors. 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, June 23, 2025. President Scheafer adjourned the meeting at 6:25 p.m. Art Perry Secretary Mike Scheafer President