Minutes - Board - 2025-04-15COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
APRm 15, 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), Kaitlin Tran
(Finance Manager), Lieu Tran (Senior Accountant), Dyana Bojarski (Administrative
Services Manager), Marissa Pereyda (Senior Management Analyst), Mark Esquer
(District Engineer), John Gonzalez (Wastewater Maintenance Manager)
Others present
None
Meeting called to order at 9:00 A.M.
A. OPENING ITEMS
Procedural: 1. Call to Order - President Scheafer
President Scheafer called the meeting to order at 9:00 a.m. He stated that the
agenda incorrectly states that he is participating in this meeting remotely.
He noted that he is attending this meeting in person.
Procedural: 2. 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.)
President Scheafer called the meeting to order at 9:00 A.M.
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
HELD APRIL 15, 2025
District Clerk and Public Information Officer, Noelani Middenway, noted
that President Scheafer, Vice President Ooten, Secretary Perry, Vice
Secretary Schafer, and Director Wiltshire were present.
General Manager, Scott Carroll, noted that Director Wiltshire is participating
remotely due to illness.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Scheafer opened public comments. Hearing none, he closed public
comments.
C. ITEMS OF STUDY
Action, Discussion: 1. Proposed Preliminary Biennial Budget Review for Fiscal
Years 2025-26 and 2026-27
Recommendation: That the Board of Directors review, discuss and provide
comments, feedback and direction on the proposed preliminary Biennial Budget
for the FYs 2025-26 and 2026-27.
Finance Manager, Kaitlin Tran, presented report details. She stated that the
total proposed budget for Fiscal Year 2025-25 is $17,446,300.00 and for Fiscal
Year 2026-27 is $17,826,800.00. She provided an overview of the revenue
projections for both fiscal years.
Discussion followed regarding property tax revenue.
Ms. Tran continued discussing the various revenue sources for both fiscal
years.
Discussion followed regarding hiring a third -party contractor to collect
Christmas Trees.
Ms. Tran presented information on non -operating revenue streams. She
provided an overview of the projected expenses for both fiscal years.
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Vice President Ooten recommended changing service loyalty pay to
longevity pay.
Administrative Services Manager, Dyana Bojarski, explained that longevity
pay is pensionable, which is why District staff recommends service loyalty
pay.
Ms. Tran discussed the requirements for service loyalty pay. She provided
information on the projected salaries and benefits expenses.
Vice President Ooten expressed dissatisfaction with CR&R customer service.
Senior Management Analyst, Marissa Pereyda, shared that the newly
proposed position, Solid Waste Administrative Assistant I, will be dedicated
to assisting the District with trash -related phone calls to improve customer
service.
Ms. Tran continued presenting the proposed personnel budget.
Ms. Pereyda shared the tasks and duties of the proposed Solid Waste
Administrative Assistant I position.
Mr. Carroll discussed the proposed promotion of the Senior Management
Analyst to Solid Waste Manager.
Wastewater Maintenance Manager, John Gonzalez shared the tasks and
duties of the proposed Electrical Instrumentation Technician position.
Secretary Perry expressed support for the proposed Electrical
Instrumentation Technician position.
Ms. Bojarski presented details on District benefits and expenses.
President Scheafer expressed support for increases to the District's cafeteria
plans.
Discussion followed regarding the costs of healthcare plans.
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
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Ms. Bojarski discussed the estimated costs for workers' compensation and
service loyalty pay. She noted that service loyalty pay will not affect an
employee's pension.
Discussion followed regarding eligibility and the rating system for service
loyalty pay.
Secretary Perry suggested that employees must achieve all performance
goals to receive service loyalty pay.
President Scheafer stated that, to receive an "above expectations" rating, the
goals should be challenging.
Ms. Bojarski stated that service loyalty pay is a one-time payment per year.
Discussion followed regarding Medicare and retirement expenses.
Ms. Tran provided an overview of the proposed operations and maintenance
(O&M) expenses for Fiscal Year 2025-26. She discussed the increases in 0&M
cost projections including inflation, increases in cost of living, and the
addition of new or expanded projects and events.
Mr. Carroll discussed the solar photovoltaic system and Sewer System
Management Plan (SSMP) expenses under the Professional Services account.
Discussion followed regarding consulting services for the SSMP audit.
District Engineer, Mark Esquer, discussed the proposed costs for updating
District standards and drawings.
Senior Management Analyst, Gina Terraneo, discussed the District's
information technology (IT) grant and projects.
Ms. Pereyda discussed the proposed cost of a solid waste rate study.
Vice President Ooten inquired about a wastewater rate study.
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
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Mr. Carroll stated that District staff plans on conducting a wastewater rate
study in Fiscal Year 2026-27.
Mr. Esquer discussed the proposed costs associated with geographic
information systems (GIS) sewer maintenance for Fiscal Year 2025-26.
Ms. Pereyda discussed the cost projections for trash services for Fiscal Year
2025-26.
Ms. Tran noted that certain projections may fluctuate based on tonnage data.
She presented the proposed personnel budget and 0&M budget for Fiscal
Year 2026-27. She discussed the proposed costs for new accounting software.
Mr. Esquer provided information on the proposed parking lot
enhancements at District Headquarters.
Ms. Pereyda discussed the cost projections for trash services and programs
for Fiscal Year 2026-27.
Mr. Esquer presented the capital improvement projects (CIP) for Fiscal Years
2025-26 and 2026-27.
Ms. Tran discussed budget transfers for both fiscal years and reviewed the
proposed budget timeline.
Discussion followed regarding the proposed budget amounts for the Asset
Management Fund.
President Scheafer complimented staff on their budget preparation and
knowledge.
The Board discussed reevaluating the Asset Management Fund balance.
Vice Secretary Schafer commended staff on the budget presentation.
D. CLOSING ITEMS
Procedural: 1. Oral Communications and Director Comments
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
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None.
Procedural: 2. Adjournment
President Scheafer adjourned the meeting at 11:25 A.M.
-
Art Perry
Secretary
Mike Scheafer
President