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Minutes - Board - 2023-06-26COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING JUNE 26, 2023 Members present Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk & Public Information Officer), Gina Terraneo (Management Analyst II), Mark Esquer (District Engineer), Kaitlin Tran (Finance Manager), Dyana Bojarski (Administrative Services Manager), Alan Burns (District Counsel), Marc Davis (District Treasurer), Lieu Tran (Senior Accountant), Marissa Pereyda (Management Analyst II), David Griffin (Code Enforcement Officer) Others present Michael Tou, Citizens Advisory Committee Vice Chair 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 JUNE 26, 2023 Procedural: 3. Invocation - Vice President Schafer Vice President Schafer 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 Schafer, Secretary Perry, Vice Secretary Ooten, and Director Eckles were present. Procedural: S. 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. Hearing none, he closed public comments. 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 May 9, 2023 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 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 May 22, 2023 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2023-12 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2023-12 approving District warrants for the month of May in the amount of $703,537.29. Action (Consent): S. 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): 6. Approve Payroll Transparency Disclosure for May 2023 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Approve the Occupancy Count of 23,095 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $246,047.20 for May 2023 Solid Waste Collection Services Recommendation: That the Board of Directors: 1. Approve the occupancy count of 23,095; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $246,047.20 to be ratified with the June 2023 warrant register for May 2023 solid waste collection services. Action (Consent): 8. Approve the Preparation of a Warrant to CR Transfer for $253,332.84 in the June 2023 Warrant Register for May 2023 Recycling and Disposal Services Recommendation: That the Board of Directors approve the preparation of a warrant to CR Transfer for $253,332.84 to be ratified in the June 2023 warrant register for May 2023 recycling and disposal services. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Action (Consent): 9. Receive and File the May 2023 Organics Tonnage Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Receive and File the May 2023 Solid Waste Diversion Report Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Receive and File May 2023 Contracts Signed by the General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 12. Approve the Investment Report for the Month of May 2023 Recommendation: That the Board of Directors approve the Investment Report for the month of May 2023. Motion: To approve the Consent Calendar as presented. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None D. PUBLIC HEARINGS Procedural: 1. Open Public Hearing Confirming Wastewater Annual Charges and Solid Waste Annual Charges The public hearing was conducted for the annual wastewater charges. Procedural: 2. Receive Comments Procedural: 3. Close Public Comments No comments were received and the public hearing was closed. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Action: 4. Adopt Resolution No. 2023-982 confirming Wastewater Annual Charges and Resolution No. 2023-983 confirming Solid Waste Annual Charges respectively for FY 2023-24 to be collected with the General Taxes and Direct the District Clerk to File with the County Auditor Recommendation: That the Board of Directors adopt Resolution No. 2023-982 confirming the Wastewater Annual Charges and Resolution No. 2023-983 confirming the Solid Waste Annual Charges respectively for FY 2023-24 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. Motion: To adopt Resolution No. 2023-982 confirming the Wastewater annual charges for FY 2023-24 to be collected with the general taxes and direct the District Clerk to file with the County Auditor. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Coten, Brett Eckles, Mike Scheafer No: None The Board adopted Resolution No. 2023-982 confirming the annual charges for wastewater services for 2023-24 to be collected with the general taxes and directed the District Clerk to file the report with the County Auditor. The public hearing was opened for the Solid Waste Charges. No comments were received and the public hearing was closed. Motion: To adopt Resolution No. 2023-983 confirming the Solid Waste Annual Charges for FY 2023-24 to be collected with the general taxes and direct the District Clerk to file with the County Auditor. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Coten, Brett Eckles, Mike Scheafer No: None The Board adopted Resolution No. 2023-983 confirming the solid waste annual charges for FY 2023-24 to be collected with the general taxes and directed the District Clerk to file with the County Auditor. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES or THE BOARD or DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Procedural: 5. Open Public Hearing Before Liens are Placed on the FY 2023-24 Tax Roll The public hearing was opened for hearing objections to filing liens on properties with delinquent accounts. Procedural: 6. Receive Comments Procedural: 7. Close Public Comments No persons objected and the public hearing was closed. Action: 8. Adopt Resolution No. 2023-984 Placing Liens on the FY 2023-24 Tax Roll Recommendation: 1. The Board of Directors approve the District to add the unpaid back billing charges to the upcoming tax roll for FY 2023-24. 2. Adopt Resolution No. 2023-984 Certifying to the Board of Supervisors and County Auditor a Statement of Delinquent and Unpaid Charges for Sewer and Other Services and Requesting Collection with the Annual Taxes Imposing a Lien. Motion: 1. To approve adding the unpaid back billing charges to the upcoming tax roll for FY 2023-24. 2. To adopt Resolution No. 2023-984 certifying to the Board of Supervisors and County Auditor a statement of delinquent and unpaid charges for sewer and other services and requesting collection with the annual taxes imposing a lien. Motion by Bob Ooten, second by Art Perry. Director Eckles inquired about the billing issues regarding the back billing charges. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Senior Accountant, Lieu Tran, stated that the billing issues are a result of incorrect unit counts, incorrect housing types, and the absence of an accessor parcel number (APN), which is necessary to place service charges. Director Eckles asked if these customers were notified of the back billing charges. Ms. Tran confirmed that they were notified of the issue and how they can contact the District. Director Eckles asked if any of these customers responded to the District regarding this issue. Ms. Tran stated that none of these customers responded to the District. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None The Board adopted Resolution No. 2023-984 certifying to the Board of Supervisors and County Auditor a statement of delinquent and unpaid charges for services and requesting collection on the tax roll. Procedural: 9. Open Public Hearing Before Adopting the Biennial Budget for Fiscal Years 2023-24 and 2024-25 The public hearing was opened. Procedural: 10. Receive Comments Procedural: 11. Close Public Comments Action: 13. Close Public Hearing No comments were received and the hearing was closed. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Action: 12. Adopt Resolution No. 2023-985 Adopting the Biennial Budget for Fiscal Years 2023-24 and 2024-25 Recommendation: The Board of Directors Adopt Resolution No. 2023-985 Adopting the Biennial Budget for Fiscal Year 2023-24 and 2024-25. Motion: To adopt Resolution No. 2023-985 adopting the biennial budget for Fiscal Year 2023-24 and 2024-25. Motion by Arlene Schafer, second by Art Perry. Director Eckles thanked District staff for incorporating the Board's suggestions and producing a balanced budget. President Scheafer congratulated Finance Manager, Kaitlin Tran, and her staff. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None The Board adopted resolution 2023-985 adopting the biennial budget. E. GENERAL MANAGER REPORTS Action: 1. California Special Districts Association (CSDA) Board of Directors Elections — Seat C Southern Network Recommendation: That the Board of Directors approve selecting Vice President Arlene Schafer to serve on CSDA's Board of Directors, Seat C and direct the General Manager to cast the District's vote for Vice President Schafer. General Manager, Scott Carroll, presented report details. President Scheafer stated that the other candidate is not present to make a speech. Mr. Carroll shared that he submitted a letter which has been attached to the staff report. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Motion: To approve selecting Vice President Arlene Schafer to serve on CSDA Board Directors, Seat C and direct the general manager to cast the district's vote for Vice President Schafer. Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None Vice President Schafer thanked the Board for their vote and noted that her opponent campaigned at a recent Independent Special Districts of Orange County (ISDOC) meeting. Vice Secretary Ooten shared that the other candidate has a very strong background in water and he hoped that he would consider serving on the board of the Association of California Water Agencies (ACWA). He stated that sanitary districts need more representation on the board of the California Special Districts Association (CSDA). There was no further discussion. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the District Engineer's Report and Capital Improvement Status Recommendation: That the Board of Directors receive and file the Engineer's Report. District Engineer, Mark Esquer, presented report details. Discussion followed regarding Capital Improvement Project #342 HQ Landscaping Project and sidewalks surrounding the District headquarters. Mr. Esquer reiterated the projects that will be presented to the Board for review at the July Board meeting. There was no further discussion, and the report was received. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Action: 2. Consider Adopting a Budget Adjustment to 335 Sewer Siphon Lining Project from Budget 334 Gisler Force Main Replacement Recommendation: That the Board of Directors approve the budget adjustment to transfer $75,000 from the CIP #334 Gisler Force Main Replacement budget to CIP #335 Sewer Siphon Rehabilitation Phase 2 project. Mr. Esquer presented report details. He stated that the item's recommendation needs to be amended to reflect a transfer of $100,000 instead of $75,000. He provided an overview of the project. Director Eckles asked District Counsel if there are any issues with updating the recommendation. District Counsel, Alan Burns, stated that the subject matter of the staff report has been properly noticed to the public and the Board. He confirmed that the Board is allowed to make adjustments as long as the basic subject matter is noticed. Motion: To approve the budget adjustment to transfer $100,000 from the CIP #334 Gisler Force Main Replacement budget to CIP 4335, Sewer Siphon Rehabilitation Phase 2 project. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries S-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None There was no further discussion. G. TREASURER'S REPORTS Action: 1. Consider Adopting Resolution 2023-986 Approving the Statement of Investment Policy and Delegating the Investment Function to the District Treasurer for Fiscal Year 2023-24 Recommendation: That the Board of Directors adopt Resolution 2023- 986 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for Fiscal Year 2023-24. District Treasurer, Marc Davis, presented the item. COSTA MESA SANITARY DISTRICT PAGE 11 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 Discussion followed regarding changes to the Local Agency Investment Fund (LAIF) policy. Motion: To adopt Resolution 2023-986 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for fiscal year 2023-24. Motion by Art Perry, second by Brett Eckles. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Brett Eckles, Mike Scheafer No: None There was no further discussion. H. ATTORNEY'S REPORTS None at this time. 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 Ooten) Vice Secretary Ooten discussed OCSD's asset management system, dedication of a brick to former Director Jim Ferryman, and OCSD-related odors in President Scheafer's neighborhood. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Secretary Perry stated that SARFPA approved their 2023-24 budget, elected their executive committee, and received a presentation on the Prado Dam. COSTA MESA SANITARY DISTRICT PAGE 12 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Vice President Schafer shared updates regarding ISDOC membership dues and policy updates. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Vice President Schafer discussed Board attendance at CSDA's Annual Conference and its impact on the District of Distinction award. She also discussed CSDA's Legislative Days. S. Special District Risk Management Authority (SDRMA) - (Director Scheafer) President Scheafer stated that SDRMA approved their budget and discussed changes to their employee handbook. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer, Vice President Schafer, and Vice Secretary Ooten shared that they attended a Water Advisory Committee of Orange County (WACO) meeting. Vice Secretary Ooten discussed the Term Limit Ad Hoc Committee meeting. President Scheafer asked when the Board and Citizen Advisory's Committee (CAC) meeting is taking place. Ms. Middenway stated that it will take place on Wednesday, July 12. There was no further discussion. i. OLD BUSINESS None at this time. COSTA MESA SANITARY DISTRICT MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 26, 2023 K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Secretary Perry exited the meeting at 5:29 p.m. PAGE 13 Vice Secretary Ooten requested a future discussion regarding SmartCover manholes. Director Eckles wished everyone a happy Independence Day. There were no additional comments. M. ADJOURN TO CLOSED SESSION None at this time. N. RECONVENE TO OPEN SESSION None at this time. O. CLOSING ITEMS Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District Board of Directors will be held on Monday, July 24, 2023. President Scheafer adjourned the meeting at 5:33 p.m. Art Perry Secretary M' e Scheafe President