How Costa Mesa Sanitary District board members seek compensation for the various meetings they attend on the agency’s behalf, and whether they should receive paid medical benefits, are up for discussion when officials convene Monday.
But the idea of part-time elected officials receiving health insurance on taxpayers’ dimes and potentially being paid $295 for watching prerecorded meetings on Youtube isn’t sitting well with some local residents close to the district.
CMSD — which offers solid waste removal for more than 23,000 mostly single-family residences citywide and oversees sewer service for Costa Mesa and portions of Newport Beach and unincorporated Orange County — is led by a five-member panel of elected officials who hold regular monthly meetings and study sessions.
Directors also attend other meetings and events, receiving $295 in per diem pay, up to six times each month, amounting to $1,770. Board member expenses typically reach the maximum amount and sometimes include more than six events, though they are only reimbursed up to the limit, with no explanation of what was approved or denied.
Monday’s discussion aims to clear up confusion about what exactly members can get paid for, as some have expensed one-on-one talks with General Manager Scott Carroll — currently not eligible for payment — as well as meetings with CMSD staff members and even among themselves.
A Jan. 13 study session report indicated ineligible meetings may have been compensated in the past, stating “in reviewing the way requests have been processed, staff noticed that it was operating under an assumption that was incorrect. It was believed by some that meetings with the GM were covered by the per diem, and in fact, they are not.”
Carroll acknowledged there may be confusion about the process and said Monday’s meeting should clarify district policies and procedures.
“We have two new board members. They are still learning what are the eligible meetings they can be reimbursed for,” the general manager said Thursday. “Some areas are a little bit gray.”
A director could watch a meeting of the Costa Mesa Planning Commission virtually and be compensated. They could visit a special event and receive $295 for their time. While written reports of events attended are required, not all expenses include them.
That doesn’t sit well with Costa Mesa resident Sue Lester, who’s served on the district’s Citizens Advisory Committee since its formation in 2017, but spoke to the Daily Pilot as a ratepayer.
Lester expressed concerns about funds paid for meetings that are held in person but also recorded for playback, when a member reports they attended virtually.
“If somebody said they attended a virtual meeting, who’s to say they didn’t go to a recording after a meeting, look for an item and then watch a recording and say they attended?” she said Thursday. “I don’t think we can put elected officials on an on-your-honor system.”
Also being discussed Monday is whether the elected officials should have their medical coverage paid for by the public agency, as the topic was broached in a Dec. 9 study session at the request of Director Shayanne Wright, appointed to the board in September to fill a vacancy left by Arlene Schafer.
Wright proposed the district consider paying members from $681 to $857 per month, indicating only two members would be interested in seeking such coverage.
“I do think it’s a valuable benefit to offer for recruiting future board members. I want to ensure that I’m bringing the best possible use of my time and energy to this job — and I do view this as a job — so adding something like this is a powerful lever in recruiting and retaining talent,” she said, later adding, “I can speak for myself personally that that would be substantial in its implications for my personal life.”
It’s not uncommon for special districts to receive medical benefits through CalPERS or “bucketed” funds. The Dec. 9 study session staff report listed what officials in other nearby utility districts receive. Irvine Ranch Water District pays $2,149 per month for coverage, while Midway City Sanitary District directors earn $2,236.
Advisory committee member Rosemarie Chora, speaking in a public comment at the study session, didn’t favor CMSD voting to give itself benefit payments.
“I am concerned about this particular issue. I do think it’s a significant benefit for such a small and niche district,” Chora said. “I do not think this is an appropriate use of the district’s funds.”
Carroll said the district is considering offering a monthly medical benefit to board members, potentially ranging from $680 to $850 per month, which they could apply to their own policies. But he didn’t know yet how CMSD would confirm the funds were spent as intended.
“[Would] they need to submit paperwork? That’s a good question. We’re still having that discussion,” he said.
Scott further said while increasing the rate of CMSD’s per-diem pay, or the number of meetings and events for which board members may be compensated is not on the table, it could come up.
“It hasn’t been requested by the board, but they can do that,” Caroll said Thursday. “That wasn’t a direction but that could change.”