Minutes - Board - 2025-04-28COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
APRIL 28, 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), William Curley
III (District Counsel), Marc Davis (District Treasurer), Dyana Wick (Administrative
Services Manager), Mark Esquer (District Engineer), Marissa Pereyda (Senior
Management Analyst), Lieu Tran (Senior Accountant)
Others present
Julie Barreda, CR&R
Mike Carey, CR&R
Michael Tou, District resident & Citizen Advisory Committee Vice Chair
Reina Cuthill, Love Costa Mesa
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
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President Scheafer led the Pledge of Allegiance.
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, Vice Secretary Schafer, and Director Wiltshire were present.
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
None.
C. CONSENT CALENDAR
Action (Consent): 1. Approve the Board of Directors Study Session Minutes of
March 11, 2025
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Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 2. Approve the Board of Directors Regular Minutes of March 24,
2025
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. 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): 4. Adopt Warrant Resolution No. CMSD, 2025-10 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2025-09 approving District warrants for the month of March in the amount of
$2,137,075.04.
Action (Consent): S. Approve Payroll Transparency Disclosure for March 2025
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 6. Receive and File March 2025 Organics Tonnage Report
Recommendation: That the Board of Directors receive and file the report.
Action (Consent): 7. Approve the Preparation of a Warrant to CR Transfer for
$58,545.69 in the April 2025 Warrant Register for March 2025 Recycling and
Disposal Services
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $58,545.69 in the April 2025 warrant
register for March 2025 recycling and disposal services.
Action (Consent): 8. Approve the Occupancy Count of 23,182 and Direct Staff to
Prepare a Warrant to CR&R Environmental Services for $395,315.69 in the April
2025 Warrant Register for March 2025 Solid Waste Collection Services
Recommendation: That the Board of Directors:
1. Approve the occupancy count of 23,182; and
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2. Direct staff to prepare a warrant to CR&R Environmental Services for
$395,315.69 in the April 2025 warrant register for March 2025 solid waste
collection services.
Action (Consent): 9. Receive and File March 2025 Contracts Signed by the General
Manager
Recommendation: That the Board of Directors receive and file this report.
Motion: To approve the Consent Calendar as presented.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: None
There was no discussion.
D. PUBLIC HEARINGS
None at this time.
E. GENERAL MANAGER REPORTS
Action: 1. Consider Approving Second Amendment to Waste Disposal Agreement
with County of Orange
Recommendation: That the Board of Directors approve the Second Amendment to
the Waste Disposal Agreement with the County of Orange.
General Manager, Scott Carroll, provided report details. He explained
landfill tipping fees.
District Counsel, William Curley, stated that the increased tipping fees due
to the County of Orange's shortfalls has had a countywide impact.
Vice President Ooten inquired about the next solid waste rate study.
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Motion: To approve the Second Amendment to the Waste Disposal
Agreement with the County of Orange.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: None
There was no further discussion.
Action: 2. Consider Approving CR&R Incorporated Annual Request for CPI Rate
Adjustment
Recommendation: That the Board of Directors consider approving CR&R's proposal
for a 3.1% CPI rate adjustment request.
Senior Management Analyst, Marissa Pereyda, provided report details.
Motion: To approve CR&R's proposal for a 3.1% CPI rate adjustment.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: None
There was no further discussion.
Action: 3. Hiring a Third -Party Contractor to Pick Up Christmas Trees
Recommendation: That the Board of Directors provide direction to staff.
Mr. Carroll provided report details.
Vice President Ooten asked if this issue was included in the last community
survey.
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Mr. Carroll stated that it was not included in the survey, but it can be added
to the next survey.
Discussion followed regarding call volume and CR&R customer service.
Secretary Perry stated that CR&R should not be charged extra for servicing
customers who request a pickup outside of the Christmas tree collection
window.
Ms. Pereyda clarified that requests that are submitted outside of the
collection window are reported as a large item request and not a missed
Christmas Tree pickup.
President Scheafer stated that there may be instances where the customer
did not place their tree curbside for pickup during the collection window but
reported that they did, so that it would reflect poorly on CR&R. He added that
all customers now have an Organics Recycling Cart due to the Three -Cart
System. He suggested providing more education on how to use the Organics
Recycling Cart as a second option for disposing of a Christmas tree.
Mr. Carroll suggested forgoing the hiring of a third -party contractor for 2026
and conducting more research and education on Christmas tree disposal.
Discussion followed regarding customer complaints and phone calls.
Director Wiltshire asked if the collection window can be extended.
CR&R representative, Julie Barreda, stated that CR&R changed the collection
window to the first two weeks of January. She noted that CR&R will collect
and sort flocked trees for landfill disposal.
Director Wiltshire stated that multifamily properties with a dumpster do not
receive any Christmas tree collection information.
There was no further discussion.
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Action: 4. Adoption of the 2025 Multi Jurisdictional Hazard Mitigation Plan
(MJHMP)
Recommendation: That the Board of Directors adopt Resolution No. 2025-999
Adopting the Orange County Water and Wastewater Multijurisdictional Hazard
Mitigation Plan.
Mr. Carroll provided report details. He noted that districts that are not
included in the Multi -jurisdictional Hazard Mitigation Plan are required to
draft their own plan.
Motion: To adopt Resolution No. 2025-999 Adopting the Orange County
Water and Wastewater Multijurisdictional Hazard Mitigation Plan.
Motion by Art Perry, second by Nicole Wiltshire.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: None
There was no discussion.
Action, Receive and File: S. Receive and File the Fiscal Year 2024-25 Third Quarter
Budget Review
Recommendation: That the Board of Directors receive and file the Fiscal Year 2024-
25 Third Quarter Budget Review.
Senior Accountant, Lieu Tran presented the 2024-25 Third Quarter Budget
Review.
There was no further discussion, and the report was received.
Action, Receive and File: 6. Receive and File 2025 Performance Report —1st Quarter
(January -March) Calendar Year
Recommendation: That the Board of Directors receive and file this report.
Mr. Carroll presented the quarterly performance report.
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Vice President Ooten recommended an edit to the reporting mechanism for
the wastewater cleaning section of the report.
President Scheafer commented on staff participation in the Employee
Wellness Program.
There was no further discussion, and the report was received.
Action: 7. Consider Approving Contribution Application for Costa Mesa -Newport
Harbor Fish Fry
Recommendation: That the Board of Directors:
1. Approve the Costa Mesa Newport Harbor Lions Club's Contribution
Application requesting 3 District generators for the Fish Fry event; and
2. Make a finding that this contribution will increase District visibility and
promote the District's purpose of recycling, source separation, and
wastewater collection through educational information and activities
provided at the District's event booth.
Senior Management Analyst, Gina Terraneo, presented report details.
Discussion followed regarding the District's booth location.
Motion: To:
1. Approve the Costa Mesa -Newport Harbor Lions Club's Contribution
Application requesting 3 District generators for the Fish Fry event;
and
2. Make a finding that this contribution will -increase District visibility
and promote the District's purposes of recycling, source separation,
and wastewater collection through educational information and
activities provided at the District's event booth.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: None
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There was no further discussion.
Action: 8. Consider Approving Contribution Application for Love Costa Mesa City
Wide Volunteer Day
Recommendation: That the Board of Directors:
1. Determine whether the contribution will serve one of the District's statutory
purposes and describe how the purpose will be advanced.
2. Consider approving the contribution request to sponsor the Love Costa Mesa
City Wide Volunteer Day event on May 17, 2025.
Ms. Terraneo presented report details.
Reina Cuthill with Love Costa Mesa commented that any donation amount
will result in a booth at the Love Costa Mesa Day event. She provided event
information.
Discussion followed regarding donation amounts.
Gina stated that the District has a remaining balance of $4,500 in the
sponsorship account.
The Board discussed the District's contribution amount.
President Scheafer complimented the event.
Motion: To:
1. Make a finding that the contribution will serve the District's statutory
purposes of solid waste collection and recycling, which will be
advanced by increasing District visibility with a community booth
that educates the public about the 3-Cart collection system and various
special programs.
2. Approve the contribution request to sponsor the Love Costa Mesa City
Wide Volunteer Day event on May 17, 2025 in the amount of $1500.
Motion by Arlene Schafer, second by Art Perry.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
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Abstain: None
Not Present: None
There was no 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
projects.
Discussion followed regarding the close out procedures for Project No 350
Hitch Crafter Building Demolition.
Mr. Esquer discussed Project No 530 South Coast Plaza Urgent Sewer
Replacement.
There was no further discussion, and the report was received.
Action: 2. Project No 335 South Coast Plaza Emergency Sewer Replacement: Accept
Improvements as Completed, File Notice of Completion, Exonerate Labor and
Materials Bond, Exonerate Faithful Performance Bond, and approve the Close -Out
Agreement
Recommendation: The Board of Directors:
1. Accept improvements as completed and file a Notice of Completion;
2. Exonerate Labor and Materials Bond 35 days after Notice of Completion is
recorded; and
3. Exonerate Faithful Performance Bond one year after Notice of Completion
is recorded.
4. Approve the Close -Out Agreement.
Mr. Esquer provided report details.
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Motion: To:
1. Accept improvements as completed and file a Notice of Completion;
2. Exonerate Labor and Materials Bond 35 days after Notice of
Completion is recorded; and
3. Exonerate Faithful Performance Bond one year after Notice of
Completion is recorded; and
4. Approve the Close -Out Agreement
Approve the Close -Out Agreement.
Motion by Arlene Schafer, second by Bob Ooten.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: None
There was no further discussion.
G. TREASURER'S REPORTS
Action: 1. Investment Report for the Month of March 2025
Recommendation: The Board of Directors approve the Investment Report for the
month of March 2025.
District Treasurer, Marc Davis, presented report details.
Motion: To approve the Investment Report for the month of March 2025.
Motion by Bob Ooten, second by Nicole Wiltshire.
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: None
There was no further discussion.
H. ATTORNEYS REPORTS
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Mr. Curley shared that District Counsel, Alan Burns, is recovering well.
There was no further discussion.
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 (OC San) - (Vice President Ooten)
Vice President Ooten shared that OC San discussed their strategic plan and
sewer system management update at their recent board meeting. He shared
that they are conducting a digital asset management study.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry)
Secretary Perry shared that SARFPA meets next month.
3.Independent Special Districts of Orange County (ISDOC) - (Vice Secretary
Schafer)
Nothing to report.
4. California Special Districts Association (CSDA) - (Vice Secretary Schafer)
Vice Secretary Schafer stated that CSDA is preparing for their annual
conference.
5. Special District Risk Management Authority (SDRMA) - (President Scheafer)
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President Scheafer stated SDRMA has terminated their Chief Executive
Officer (CEO) and shared that their Chief Risk Officer will serve as interim
CEO.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Vice President Ooten shared that he attended a Water Advisory Committee
of Orange County (WACO) meeting which discussed the Sykes Reservoir.
President Scheafer shared the Board attended the recent Liaison Committee
meeting. He added that he attended an Orange County Council of
Governments (OCCOG) meeting, which elected a new chair and vice chair
and had a presentation from an Air Quality Management District (AQMD)
representative.
Director Wiltshire shared that she attended an Animal Services Committee
meeting, which discussed allocating resources to educate the public about
animal services.
There was no further discussion.
1.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
There was no discussion.
0. CLOSING ITEMS
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Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District
Board of Directors will be held on Monday, May 27, 2025.
President Scheafer adjourned the meeting at 5:46 p.m.
Art Perry Miklop
e AScheafer
Secretary President