Minutes - Board - 2020-11-23COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
NOVEMBER 23, 2020
(Vote: This meeting was conducted utilizing teleconferencing pursuant to Government code Section
54952.2 and the Governor's Executive Orders in effect waiving some of the requirements of that Section.
Members present
Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Members absent
None
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information
Officer), Alan Burns (District Counsel), Marc Davis (District Treasurer),
Michael Benesh (Interim District Engineer), Kaitlin Tran (Finance Manager), Dyana
Bojarski (Administrative Services Manager), Gina Terraneo (Management Analyst II)
Others present
Mike Carey (CR&R Environmental Services and District resident)
Judith Gielow (Citizens Advisory Committee Member and District resident)
Sue Lester (Citizens Advisory Committee Member and District resident)
Meeting called to order at 4:32 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order — President Ferryman
President Ferryman called the meeting to order at 4:32 P.M.
Procedural: 2. Pledge of Allegiance — President Ferryman
President Ferryman led the Pledge of Allegiance.
Procedural: 3. Invocation — Vice President Ooten
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President Ferryman postponed the Invocation until Vice President Ooten joined
the meeting.
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 and Public Information Officer, Noelani Middenway, conducted roll
call and noted that President Ferryman, Secretary Schafer, Director Scheafer, and
Director Perry were present at this time. She noted that Vice President Ooten was
not present at this time. Vice President Ooten joined the meeting at 4:40 P.M.
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.
General Manager, Scott Carroll, stated that the District received no late
communications.
Procedural: 6. Ceremonial Matters and Presentations.
None at this time.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Ferryman opened public comments.
District resident, Sue Lester, noted that she is a member of the Citizens Advisory
Committee (CAC), but that she is not speaking on behalf of the CAC. She noted
that tonight's meeting is President Ferryman's final meeting as a Board Member.
She thanked President Ferryman and expressed her respect, admiration and
appreciation for his public service and involvement in the community.
President Ferryman expressed appreciation for Ms. Lester's comments. He stated
that the City of Costa Mesa is fortunate to have so many great and vibrant people.
He shared that it has been an honor to serve the District as a Board Member and
to work with his fellow Board Members and District staff.
Ms. Lester noted that, during the most recent CAC meeting, CAC Chair Mike Carey
stepped down from his position as CAC Chair and Member due to his employment
with CR&R Environmental Services. She noted that there is no legal requirement
for his resignation from the CAC, but that Mr. Carey stepped down to eliminate any
perceived conflict of interest. She added that she admires Mr. Carey for this
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decision and encouraged all government officials to follow his example. Lastly, she
recommended that the Board appoints members to the CAC who live in every
voting district within the District's service area. She discussed the importance and
impact of educating residents in each district, especially those who may run for an
elected position on the District's Board. She thanked the Board for their service
and time.
The Board thanked Ms. Lester for her comments.
Hearing no additional comments, President Ferryman closed public comments.
Vice President Ooten joined the meeting at 4:40 p.m.
C. CONSENT CALENDAR
Action (Consent): 1. Approve Consent Calendar
Recommendation: That the Board of Directors approve the Consent Calendar as
presented.
Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes
of October 13, 2020
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting
Minutes of October 26, 2020
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2021-05 Approving District
Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2021-05 approving District warrants for the Month of October in the amount of
$946,010.95.
Action (Consent): 6. Approve Payroll Transparency Disclosure for October 2020
Recommendation: That the Board of Directors approve and file this report.
Action (Consent): 7. Accept the occupancy count as presented as 22,986 and direct
staff to prepare a warrant to CR&R Environmental Services for $238,215.41 for
October 2020 collection
Recommendation: That the Board of Directors accepts the occupancy count as presented
using 22,986 as the correct number of active units and direct staff to prepare a warrant to
CR&R Environmental Services for October 2020 collection based on this occupancy
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report so long as the contractor fulfills the obligations of the agreement in the amount of
$238,215.41 to be ratified in the November 2020 warrant list.
Action (Consent): 8. Approve the preparation of a warrant to CR Transfer in the
amount of $239,484.24 for October 2020 recycling and disposal services in the
November 2020 warrant register
Recommendation: That the Board of Directors approves the preparation of a warrant to
CR Transfer in the amount of $239,484.24 for October 2020 recycling and disposal
services to be ratified in the November 2020 warrant register.
Action (Consent): 9. Receive and File the October 2020 Organics Tonnage Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 10. Receive and File the October 2020 Solid Waste Diversion
Report
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 11. Receive and File Contracts Signed by the General Manager —
October 2020
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 12. Approve the Investment Report for the Month of October 2020
Recommendation: That the Board of Directors approve the Investment Report for the
month of October 2020.
Director Scheafer requested to pull Item C5 for discussion.
Motion: To approve the Consent Calendar as presented with the exception of Item
C5.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
Action (Consent): 5. Approve the Directors' Compensation and Reimbursement of
Expenses
Recommendation: That the Board of Directors approve the compensation and
reimbursement of expenses as presented.
Director Scheafer noted that he listed eight meetings on his Director's
Compensation and Reimbursement of Expenses form, but he was only able to
attend seven of the listed meetings. He noted that he submitted the form prior to
the eighth meeting. He confirmed that he attended over six meetings, which is the
maximum number of meetings per month for compensation, therefore there is no
change to his compensation amount.
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Motion: To approve the compensation and reimbursement of expenses as
presented.
Motion by Michael Scheafer, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
There was no further discussion.
Procedural: 3. Invocation — Vice President Ooten
Vice President Ooten led the Invocation.
D. PUBLIC HEARINGS
None at this time.
E. GENERAL MANAGER'S REPORTS
None at this time.
F. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File the Monthly Capital Improvements
Project Status Report
Recommendation: That the Board of Directors receive and file the report.
Interim District Engineer, Michael Benesh, presented report details. He shared that
construction for the President Pump Station will begin at the end of November
2020. He noted that the project was awarded in October 2020. He discussed the
removal of the air release valve located in the Mesa Drive bridge and stated that
the bids for that project will be submitted in early December 2020. He added that
the District recently received bids for the Manhole Resurfacing project.
There was no further discussion, and the report was received.
G. TREASURER'S REPORTS
None at this time.
H. ATTORNEY'S REPORTS
Action, Receive and File: 1. New FPPC Rule of the "Public Generally" Exception
Recommendation: That the Board of Directors receive and file the report.
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District Counsel, Alan Burns, presented report details. He stated that elected
officials are typically required to abstain from anything that has a material effect on
their income. He reported that there is a new exception that applies if an elected
official is a part of the "public generally." He noted that there is a two -prong test to
determine whether the exception applies, which asks if there is a significant
segment of the population affected and if there is any unique effect on the elected
official. He stated that this exception applies to voting on matters such as the
District's residential property assessment fees. He explained that if 15% of the
other residential properties in the District's service area are affected and if there is
nothing unique applied specifically to the elected official, then the elected official
can vote on the matter. Mr. Burns noted that he can further assist when the Board
encounters a matter where this exception might apply.
There was no further discussion, and the report was received.
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 (OCSD) - (President Ferryman and Vice President
Ooten)
President Ferryman shared that he attended a three-hour San Diego Association
of Governments (SANDAG) Borders Committee meeting. He noted that a new
representative will be appointed to fill his upcoming vacancy.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Director Perry shared that he attended a SARFPA meeting on November 19, 2020.
He noted that a Washington, D.C. representative, Jim McConnell, reported on the
Senate runoff election in Georgia. He stated that President Trump's refusal to
concede the general election and the subsequent lame duck period will affect the
passage of a water bill that is drafted to help fund the Santa Ana River Mainstream
project. He discussed other SARFPA projects including the Westminster
Watershed project and Prado Dam project.
Vice President Ooten shared that he attended an OCSD Operations Committee
meeting. He reported that the Operations Committee is working on replacing the
Bay Bridge pump station located on Pacific Coast Highway. He discussed other
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OCSD projects regarding industrial cleaning, rehabilitation of the Orange -Western
sub -trunk, and electrical repairs.
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
Secretary Schafer shared that she attended a Water Advisory Committee of
Orange County (WACO) meeting, which featured a panel of speakers who
reported on the affordability and history of water.
Secretary Schafer discussed ISDOC and shared that an ISDOC representative
requested for the California Special Districts Association (CSDA) to support
changes regarding filing requirements for the general election. She commented
that CSDA does not want to get involved in this matter. She added that the ISDOC
Executive Board decided not to collect ISDOC dues for the next year. Additionally,
she noted that she attended OCSD's virtual State of the District and tour.
4. California Special Districts Association (CSDA) - (Secretary Schafer)
Secretary Schafer shared that she attended a CSDA Professional Development
committee meeting. She noted that CSDA has collected almost half of their
membership dues for this year and that CSDA is in the process of forming their
committees. She shared that she will be on the CSDA Legislative and Professional
Development committees next year, and that she will serve as Secretary of the
CSDA Executive Board. She listed other special district representatives serving on
the CSDA Executive Board.
Vice President Ooten shared that he attended the recent WACO meeting. He
stated that a representative from the State Water Resources Control Board
discussed a new program called Safer. He discussed the potential consolidation
of smaller water districts. He also discussed turnover on the OCSD Board and
shared that OCSD has four alternate Board Members and nine Directors that will
not return for another term. He added that OCSD recognized President Ferryman
for his years of service.
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
Director Scheafer shared that SDRMA had their Board meeting in early November
2020. He stated that there was a report from SDRMA's excess lines broker who
discussed California's insurance rates. He noted that there will be rate increases
for property and casualty insurance. He added that SDRMA is forming a captive
reinsurance company based out of Utah.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
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Director Perry shared that he attended a Costa Mesa City Council meeting. He
stated that the City had a proclamation for Small Business Saturday and
Movember 2020 to bring attention to men's health. He noted that they discussed
a letter to Newport -Mesa Unified School District (NMUSD) regarding a proposed
new site for the Estancia performing arts center. He also shared that the City's Fire
Department has stated that heaters are not allowed in tents used for outdoor
restaurant dining. He reported that the City currently has no COVID-19 patients at
the overflow site at the Fairview Developmental Center. He added that a new
bicycle facility is being developed on Merrimac Way and noted that the street will
be undergoing improvements for the bicycle facility. He reported that there was a
discussion regarding the Joint Powers Authority for a Community Choice Energy
program for Irvine and Fullerton. He stated that the City approved a memorandum
with Newport Beach for the permanent shelter on Airway Avenue.
Vice President Ooten shared that he serves on the NMUSD Bond Committee and
discussed the Estancia performing arts center.
J. 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
Vice President Ooten thanked President Ferryman for his service to the District.
He shared that he worked for President Ferryman for 25 years, and that he has
worked with him for the past 14 years. He noted that President Ferryman has been
a part of OCSD and the District for over 30 years.
Director Scheafer shared that he has learned a great deal from President
Ferryman as a friend and fellow Board Member. He expressed his appreciation for
President Ferryman's service and thanked him for his work.
Secretary Schafer shared that she has a lot of great memories with President
Ferryman. She expressed her appreciation for his service and thanked him for his
support.
Director Perry thanked President Ferryman for his advice and leadership. He noted
that President Ferryman is a source of inspiration for his career. He thanked him
for his service.
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President Ferryman thanked his fellow Board Members for their comments.
Mr. Burns requested to make an additional comment. He shared that the Santa
Monica Voting Rights Act case has been taken up by the Supreme Court, and he
noted that he will share the results once they are available. Additionally, he
thanked President Ferryman for his service and commented that he will be greatly
missed at the District.
There were no further comments or discussion.
M. ADJOURN TO CLOSED SESSION
Discussion: 1. Confer with Legal Counsel - Existing Litigation Paragraph (1) of
subdivision (d) Section 54956.9 California River Watch v. Costa Mesa Sanitary District,
USDC No.: 8:20-cv-01702
President Ferryman adjourned the meeting to closed session at 5:18 P.M. to
discuss the following:
Confer with Legal Counsel - Existing Litigation Paragraph (1) of subdivision (d)
Section 54956.9 California River Watch v. Costa Mesa Sanitary District, USDC
No.: 8:20-cv-01702
N. RECONVENE TO OPEN SESSION AND REPORT OF ACTION TAKEN
1. Announce any reportable action taken in closed session.
President Ferryman reconvened the meeting to open session at 5:41 P.M. and
noted that no reportable action was taken during the closed session.
O. CLOSING ITEMS
Procedural: 1. Adjourn
President Ferryman adjourned the meeting at 5:41 P.M.
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Arlene Schafer
Secretary
°�• James Ferryman
President