2025_06_23_boardMonday, June 23, 2025
Board of Directors Regular Meeting
Time: 4:30 p.m.
Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626
***
The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be
made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary.
***
Public Comments: Members of the public can submit any comments in real time during the meeting or
prior to the meeting in writing for the Board of Directors' consideration by sending them to the District
Clerk at publiccomment@cmsdca.gov. Those comments will be made part of the official public record of
the meeting.
***
Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the
agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a
majority of the Board after the packet is prepared, a copy of that writing may be obtained from the
District Clerk's Office.
***
In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior
to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II).
A. OPENING ITEMS
1. Call to Order - President Scheafer
2. Pledge of Allegiance - President Scheafer
3. Invocation - Vice President Ooten
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.)
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.
6. Ceremonial Matters and Presentations
B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items
within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda.
Members of the public will have the opportunity to address the Board of Directors about all other items on this
agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is
prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The
Board of Directors will respond after public comment has been received. Please state your name. Each speaker
will be limited to four (4) continuous minutes.
1. Public Comments
C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be
acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for
discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those
in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four
(4) continuous minutes of comment on the consent calendar as a whole.
1. Approve the Board of Directors Study Session Minutes of May 13, 2025
2. Approve the Board of Directors Regular Meeting Minutes of May 27, 2025
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3. Adopt Warrant Resolution No. CMSD 2025-12 Approving District Warrant Registers
4. Approve Payroll Transparency Disclosure for May 2025
5. Approve the Directors' Compensation and Reimbursement of Expenses
6. Approve the Preparation of a Warrant to CR Transfer for $386,275.20 in the June 2025 Warrant Register for October
2024, November 2024, December 2024, February 2025, March 2025, April 2025, and May 2025 recycling and disposal
services
7. Approve the Occupancy Count of 23,209 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for
$395,776.11 in the June 2025 Warrant Register for May 2025 Solid Waste Collection Services.
8. Investment Report for the Month of May 2025
9. Receive and File May 2025 Contracts Signed by the General Manager
D. PUBLIC HEARINGS
1. Public Hearing to Consider an Ordinance Amendment to the Operations Code Chapter 6.04, Development and
Miscellaneous Fees and Adoption of a Fee Resolution Pertaining to Development Fee, Permit Fee, and Fixture Fee
Schedule(s)
2. Public Hearing to Consider Adopting a Resolution Confirming Wastewater and Solid Waste Annual Charges respectively
for Fiscal Year 2025-26 to be collected with the General Taxes and Direct the District Clerk to File with the County Auditor
3. Public Hearing to Consider Adopting the Biennial Budget for Fiscal Years 2025-26 and 2026-27
4. Public Hearing to Consider Adopting a Resolution Placing Liens on the Fiscal Year 2025-26 Tax Roll
E. GENERAL MANAGER'S REPORTS
1. Consider Adopting the Fiscal Year 2025-30 Strategic Plan
2. California Special Districts Association (CSDA) Board of Directors Election Ballot - Term 2026 - 2028; Seat B - Southern
Network
3. Assessing Wastewater Charges for Properties on Fairview Development Center
4. Receive and File Three-Cart System Commercial Performance Metrics
F. ENGINEER'S REPORTS
1. Receive and File Fiscal Year 2024-25 Capital Improvement Project Budget Adjustments
2. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status
G. TREASURER'S REPORTS
1. Consider Adopting Resolution 2025-1005 Approving the Statement of Investment Policy and Delegating the Investment
Function to the District Treasurer for Fiscal Year 2025-26
H. ATTORNEY'S REPORTS
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) - (Vice President Ooten)
2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry)
3. Independent Special Districts of Orange County (ISDOC) - (Vice Secretary Schafer)
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4. California Special Districts Association (CSDA) - (Vice Secretary Schafer)
5. Special District Risk Management Authority (SDRMA) - (President Scheafer)
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030
J. OLD BUSINESS
K. NEW BUSINESS
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
1. Oral Communications and Director Comments
M. ADJOURN TO CLOSED SESSION
N. RECONVENE TO OPEN SESSION
O. CLOSING ITEMS
1. Adjourn
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Monday, June 23, 2025
Board of Directors Regular Meeting
Time: 4:30 p.m.
Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626
***
The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be
made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary.
***
Public Comments: Members of the public can submit any comments in real time during the meeting or
prior to the meeting in writing for the Board of Directors' consideration by sending them to the District
Clerk at publiccomment@cmsdca.gov. Those comments will be made part of the official public record of
the meeting.
***
Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the
agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a
majority of the Board after the packet is prepared, a copy of that writing may be obtained from the
District Clerk's Office.
***
In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior
to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II).
A. OPENING ITEMS
Subject 1. Call to Order - President Scheafer
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Procedural
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A. OPENING ITEMS
Subject 2. Pledge of Allegiance - President Scheafer
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Procedural
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A. OPENING ITEMS
Subject 3. Invocation - Vice President Ooten
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Procedural
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A. OPENING ITEMS
Michael Scheafer, President
Robert Ooten, Vice President
Arthur Perry, Secretary
Arlene Schafer, Vice Secretary
Nicole Wiltshire, Director
Subject 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.)
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
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Type Procedural
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A. OPENING ITEMS
Subject 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.
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
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Type Procedural
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A. OPENING ITEMS
Subject 6. Ceremonial Matters and Presentations
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
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Type Procedural
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B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to
make comments on items within the subject matter jurisdiction of the Costa Mesa
Sanitary District that are not listed on this agenda. Members of the public will have
the opportunity to address the Board of Directors about all other items on this
agenda at the time those items are considered. Under the provisions of the Brown
Act, the Board of Directors is prohibited from taking action on oral requests but may
refer the matter to staff or to a subsequent meeting. The Board of Directors will
respond after public comment has been received. Please state your name. Each
speaker will be limited to four (4) continuous minutes.
Subject 1. Public Comments
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Procedural
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Angela Fatino, Management Analyst I
Date: June 23, 2025
Subject: Approve the Board of Directors Study Session Minutes of May 13, 2025
Summary
The recorded minutes of the May 13, 2025 Board of Directors Study Session are hereby submitted to the Board of Directors for review and
approval.
Staff Recommendation
That the Board of Directors approve the meeting minutes as presented.
Analysis
Attached to the staff report are the minutes for the Board of Directors Study Session of May 13, 2025.
Legal Review
Not applicable.
Environmental Review
Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental
Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own
procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and
Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.”
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the June 23, 2025 Board of Directors Regular Meeting at
District Headquarters and posted on the District’s website.
Alternative Actions
1. Do not approve the meeting minutes as presented.
2. Direct staff to report back with more information.
File Attachments
minutes_2025_05_13_ss.pdf (163 KB)
Subject 1. Approve the Board of Directors Study Session Minutes of May 13, 2025
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent), Minutes
Recommended
Action
That the Board of Directors approve the meeting minutes as presented.
Minutes View Minutes for May 13, 2025 - Board of Directors Study Session
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All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Angela Fatino, Management Analyst I
Date: June 23, 2025
Subject: Approve the Board of Directors Regular Meeting Minutes of May 27, 2025
Summary
The recorded minutes of the May 27, 2025 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and
approval.
Staff Recommendation
That the Board of Directors approve the meeting minutes as presented.
Analysis
Attached to the staff report are the minutes for the Board of Directors Regular Meeting of May 27, 2025.
Legal Review
Not applicable.
Environmental Review
Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental
Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own
procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and
Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.”
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the June 23, 2025 Board of Directors Regular Meeting at
District Headquarters and posted on the District’s website.
Alternative Actions
1. Do not approve the meeting minutes as presented.
2. Direct staff to report back with more information.
File Attachments
minutes_2025_05_27_rm.pdf (203 KB)
Subject 2. Approve the Board of Directors Regular Meeting Minutes of May 27, 2025
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent), Minutes
Recommended
Action
That the Board of Directors approve the meeting minutes as presented.
Minutes View Minutes for May 27, 2025 - Board of Directors Regular Meeting
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All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Amanda Doan, Accounting Clerk
Date: June 23, 2025
Subject: Adopt Warrant Resolution No. CMSD 2025-12 Approving District Warrant Registers
Summary
Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were
paid.
Recommendation
That the Board of Directors adopt Warrant Resolution No. CMSD 2025-12 approving District warrants for the month of May in the amount of
$1,587,932.
Analysis
Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were
paid.
Legal Review
Not Applicable.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of
the exempt classes", and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 "Projects" does not
include .... C. Continuing administrative or maintenance activities."
Financial Review
Sufficient funds are available in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2025 Board of Directors Regular meeting
at District Headquarters and posted on the District's website www.cmsdca.gov
Alternative Actions
Refer item back to staff with further instructions.
Subject 3. Adopt Warrant Resolution No. CMSD 2025-12 Approving District Warrant
Registers
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Budgeted Yes
Recommended
Action
That the Board of Directors adopt Warrant Resolution No. CMSD 2025-12 approving District
warrants for the month of May in the amount of $1,587,932.
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File Attachments
WARRANT RESO 2025-12.pdf (7,243 KB)
All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Amanda Doan, Accounting Clerk
Date: June 23, 2025
Subject: Approve Payroll Transparency Disclosure for May 2025
Summary
Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month.
Recommendation
That the Board of Directors approve and file the report.
Analysis
Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month.
Legal Review
Not Applicable.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of
the exempt classes", and the District has adopted "CEQA Guidelines and Administrative Content Executive Content Implementing Procedures"
that state on page 6 "Projects" does not include .... C. Continuing administrative or maintenance activities."
Financial Review
Sufficient funds are available in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2025 Board of Directors Regular meeting
at District Headquarters and posted on the District's website www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
Subject 4. Approve Payroll Transparency Disclosure for May 2025
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Fiscal Impact Yes
Budgeted Yes
Recommended
Action
That the Board of Directors approve and file the report.
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File Attachments
Payroll Transparency Disclosure May 2025.pdf (195 KB)
All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Noelani Middenway, District Clerk/Public Information Officer
Date: June 23, 2025
Subject: Directors' Compensation and Reimbursement of Expenses
Summary
The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval.
Analysis
Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses.
Staff Recommendation
That the Board of Directors approve the compensation and reimbursement of expenses as presented.
Legal Review
Not applicable.
Environmental Review
Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the
California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency
while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted
“CEQA Guidelines and Implementing Procedures” that state on page 6. "Projects” does not include …. C. Continuing administrative or
maintenance activities.”
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the June 23, 2025 Board of Directors Meeting at District
Headquarters and posted on the District’s website.
Alternative Actions
1. Do not approve the compensation and reimbursement of expenses as presented.
2. Direct staff to report back with more information.
File Attachments
2025-05_boardPR.pdf (256 KB)
Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors approve the compensation and reimbursement of expenses as
presented.
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All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Angela Fatino, Management Analyst I
Date: June 23, 2025
Subject: Approve the preparation of a warrant to CR Transfer for $386,275.20 in the June 2025 warrant register for October 2024,
November 2024, December 2024, February 2025, March 2025, April 2025, and May 2025 recycling and disposal services
Summary
The District pays CR Transfer monthly for the sorting of recyclables, landfill disposal, and the diversion of organic waste to an anaerobic
digestion facility to be recycled into renewable natural gas to fuel the solid waste collection trucks or to be processed into compost.
Recommendation
That the Board of Directors approve the preparation of a warrant to CR Transfer for $386,275.20 in the June 2025 warrant register for October
2024, November 2024, December 2024, February 2025, March 2025, April 2025, and May 2025 recycling and disposal services
Analysis
The following chart outlines the total tonnage and payments due for residential and organic waste collection in Costa Mesa and Newport Beach
during October 2024, November 2024, December 2024, February 2025, March 2025, April 2025, and May 2025 recycling and disposal services
2025. The tonnage rates approved by the Board of Directors on May 28, 2024, effective July 1, 2024, is $61.19 per ton for landfill disposal,
$15.27 for recycling services, and and $84.19 per ton for organics recycling.
Type of Waste Invoice No.Tonnage Rate Amount Billed
Landfill Waste - Costa Mesa (Oct)46155 166.37 $61.19 $10,179.59*
Landfill Waste - Costa Mesa (Nov)46233 7.61 $61.19 $465.63*
Landfill Waste - Costa Mesa (Dec)46309 25.35 $61.19 $1,551.23*
Landfill Waste - Costa Mesa (Feb)46459 19.01 $61.19 $1,163.25*
Landfill Waste - Costa Mesa (March)46535 1,748.99 $61.19 $107,020.70*
Landfill Waste - Costa Mesa (April)46610 1,861.09 $61.19 $113,880.08*
Landfill Waste - Newport Beach (May)46686 38.61 $61.19 $2,362.54*
Landfill Waste - Costa Mesa (May)46685 1,998.02 $61.19 $122,258.86*
Total Landfill Waste $358,881.88
Organics (Oct)46190 12.81 $84.19 $1,078.47*
Total Organics $1,078.47
Subject 6. Approve the Preparation of a Warrant to CR Transfer for $386,275.20 in the June
2025 Warrant Register for October 2024, November 2024, December 2024,
February 2025, March 2025, April 2025, and May 2025 recycling and disposal
services
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors approve the preparation of a warrant to CR Transfer for
$386,275.20 in the June 2025 warrant register for October 2024, November 2024, December
2024, February 2025, March 2025, April 2025, and May 2025 recycling and disposal services
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Recycling (Oct)46198 -175.32 $15.27 ($2,677.12)
Recycling (Nov)46274 4.75 $15.27 $72.54*
Recycling (Dec)46346 180.67 $15.27 $2,758.81*
Recycling (Feb)46500 409.81 $15.27 $6,257.80*
Recycling (Mar)46574 420.23 $15.27 $6,416.91*
Recycling (April)46651 480.95 $15.27 $7,344.15*
Recycling (May)013715 402.21 $15.27 $6,141.76*
Total Recycling $26,314.85
Grand Total $386,275.20
*Due to weight ticket calculation rounding, some invoice totals may be off by a few cents.
The following corrected invoices are currently pending from CR&R: revised January Recycling Invoice and May Organics Invoice.
Legal Review
Not applicable.
Environmental Review
Consideration of the CR Transfer warrant is an administrative matter and is exempt from the requirements of the California Environmental
Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own
procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and
Implementing Procedures" that state on page 6 "Projects" does not include... C. Continuing administrative or maintenance activities.
Financial Review
Sufficient funds are available in the adopted FY 2024-25 budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2025, Board of Directors Meeting held at
290 Paularino Avenue and posted on the District's website at www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Angela Fatino, Management Analyst I
Date: June 23, 2025
Subject: Approve the Occupancy Count of 23,209 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for
$395,776.11 in the June 2025 Warrant Register for May 2025 Solid Waste Collection Services.
Summary
The District's monthly payment to CR&R Environmental Services (CR&R) for solid waste collection services is calculated by multiplying the set
occupancy rate by the occupancy count, approved each month by the Board of Directors. The current occupancy rate is $17.0527 and the May
2025 occupancy count presented to the Board of Directors is 23,209, for a total payment of $395,776.11.
Recommendation
That the Board of Directors:
1. Approve the Occupancy Count of 23,209; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for $395,776.11 in the June 2025 warrant register for May 2025 solid
waste collection services.
Analysis
The occupancy count is the number of active units in the District's jurisdiction receiving solid waste collection services. The occupancy rate
approved by the Board of Directors on May 28, 2024, effective July 1, 2024, is $17.0527. The District pays CR&R $17.0527 per occupant, per
month for solid waste collection services. The occupancy count is increased or decreased monthly for new residential developments and
demolitions.
As of May 31, 2025, the District's occupancy count was 23,209 with no new accounts added since the last billing period. The occupancy count
approved by the Board of Directors for April 2025 was 23,209.
The District's payment to CR&R is calculated by multiplying the occupancy count by the occupancy rate. The payment calculation for May 2025
is included below.
Occupancy Count X Occupancy Rate = Payment to CR&R
23,209 $17.0527 $395,776.11
District staff will continue to track the number of new and removed service addresses.
Legal Review
Not applicable.
Subject 7. Approve the Occupancy Count of 23,209 and Direct Staff to Prepare a Warrant to
CR&R Environmental Services for $395,776.11 in the June 2025 Warrant Register
for May 2025 Solid Waste Collection Services.
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors:
1. Approve the Occupancy Count of 23,209; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for $395,776.11 in the
June 2025 warrant register for May 2025 solid waste collection services.
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Environmental Review
Consideration of the occupancy count is an administrative matter and is exempt from the requirements of the California Environmental Quality
Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own
procedures "to list those specific activities which fall within in each of the exempt classes," and the District has adopted "CEQA Guidelines and
Implementing Procedures" that state on page 6 "Projects" does not include... C. Continuing administration or maintenance activities.
Financial Review
Sufficient funds are available in the adopted FY 2024-25 budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2025, Board of Directors Meeting held at
290 Paularino Avenue and posted on the District's website at www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
File Attachments
May 2025 Occupancy Report.pdf (84 KB)
All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
From: Marc Davis, District Treasurer
Date: June 23, 2025
Subject: Approve the Investment Report for the Month of May 2025
Summary
Attached is the Investment Report for the month of May 2025. As required by the District's Statement of Investment Policy, the Investment
Report delineates all investment activity during the month.
Recommendation
That the Board of Directors approve the Investment Report for the month of May 2025.
Analysis
This report lists the types of securities held in the District's portfolio, the institutions from which the securities were purchased, maturity dates
and interest rates as of May 31, 2025. The District's investments are in compliance with the Statement of Investment Policy adopted by the
Board at the June 24, 2024 regular meeting, as well as the California Government Code. The market values in this report were provided by our
third party custodian, Pershing, LLC, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State
Treasurer's Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the
amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds.
The weighted average stated rate of return (current yield) for the District's investment portfolio as of May 31, 2025, was 3.088%. The yield to
maturity of the portfolio was 3.089%. The District's weighted average interest rate was 118 basis points (1.184%) below the LAIF average
monthly rate of 4.272% for the month of May 2025. The weighted average number of days to maturity for the District's total portfolio was 330
days (0.90 years). The duration of the underlying securities in LAIF as of May 31, 2025 was 236 days.
The District's investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must
mature within one year. The percentage of the portfolio maturing in one year or less as of May 31, 2025 was 67.16%. The District has adequate
cash reserves necessary to meet its obligations for the next six months.
A majority of the District's cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the
District's cash and investments are as follows:
Solid Waste Fund:
Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020.
The Operating Reserve can only be accessed with prior Board approval.
Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash
deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue
dry period is from June through October.
Subject 8. Investment Report for the Month of May 2025
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors approve the Investment Report for the month of May 2025.
Goals 8.0 Finance
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Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs.
Wastewater Fund:
Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020.
The Operating Reserve can only be accessed with prior Board approval.
Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have
not yet been completed.
Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash
deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue
dry period is from June through October.
Undesignated - Remaining available cash, which is available to be appropriated by the Board.
Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities.
Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers.
Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer
pipes and related infrastructure.
Legal Review
Legal review is not required.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of
the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6, "Projects" does not
include...C. Continuing administrative or maintenance activities.
Financial Review
The portfolio was budgeted to earn an average rate of 1.487% for the year ending June 30, 2025. Through May 31, 2025, the portfolio has
earned a weighted average interest rate of 2.841%.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2025 Board of Directors meeting at District
Headquarters (290 Paularino Avenue) and on the District's website at www.cmsdca.gov.
Alternative Actions
Refer the matter back to staff.
File Attachments
Investment Report - May 2025.pdf (428 KB)
All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered
to be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
From: Scott Carroll, General Manager
Date: June 23, 2025
Subject: Receive and File May 2025 Contracts Signed by the General Manager
Summary
At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the
previous month. Below are the contracts he signed in the months of May 2025.
Recommendation
That the Board of Directors receive and file this report
Analysis
The following contracts/agreements were signed by the general manager in May 2025.
Contracts/Agreements
1. Jamison Engineering - Project 354 Elden Pump Station Godwin Building Door Installation. An entry door is being cut out of the masonry
enclosure building that houses the Godwin Bypass Pumps. The door will give staff easier access to the pump. Cost: $17,450.
Purchase Orders
1. Infosend, Inc. – Creating and mailing 19,760 postcards informing residents of a solid waste rate increase effective on July 1, 2025. Cost:
$8,457.87
2. Roadway Construction – Providing traffic control for Project 349, Mendoza Drive Gravity Main Extension. Cost: $950.00
3. CSLM Construction Inc. – Manufacturing and installing an office trailer at Rob Hamers Yard. The trailer will be used by wastewater
maintenance supervisor and the wastewater maintenance lead worker. Cost: $62,645.00
Legal Review
Not applicable
Environmental Review
Providing the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter that will not result in
direct or indirect physical changes in the environment and is not considered a "project".
Financial Review
There is adequate funding in the budget to perform the contract services mentioned above.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2025 Board of Directors meeting at District
Headquarters and on District website at www.cmsdca.gov
Subject 9. Receive and File May 2025 Contracts Signed by the General Manager
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Goals 6.0 Administrative Management
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Alternative Actions
1. Direct staff to report back with more information.
All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after
public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is
waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items
listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent
calendar as a whole.
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D. PUBLIC HEARINGS
To: Board of Directors
From: Mark Esquer, District Engineer
Date: June 23, 2025
Subject: Public Hearing to Consider an Ordinance Amendment to the Operations Code Chapter 6.04, Development and
Miscellaneous Fees and Adoption of a Fee Resolution Pertaining to Development Fee, Permit Fee, and Fixture Fee Schedule(s)
Summary
On May 26, 2025, the Board of Directors Recieved and Filed the final Permit and Fixture Fee Study Report, dated May 2025. In addition, the
Board of Directors also approved the proposed Sewer Fees and Fixture Fee Option 1A Schedule(s) that were outlined in the Final Study
Report.
District staff is recommending the Board consider replacing the Operations Code Chapter 6.04, Development and Miscellaneous Fees, Permits,
and Charges, in its entirety. In addition, staff is recommending the Board of Directors Adopt a 5-Year Permit and Fixture Fee Schedule(s)
Resolution.
Recommendation
That the Board of Directors:
1. Adopt these Fee adjustments as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15300, that provides for
administrative matters as exempt.
2. Adopt Ordinance No. 2025-140 Replacing and Amending Chapter 6.04 of the Operational Code in its entirety, and
3. Adopt Resolution No. 2025-1000 of the Board of Directors of the Costa Mesa Sanitary District a New 5-Year Fixture, Permit, and other
Development-related Fee Schedule(s).
Analysis
The Costa Mesa Sanitary District (District) retained Robert D. Niehaus, Inc. (RDN) to conduct a Fee Study consisting of a review of the Sewer
Permit Program costs and a determination of updated fees. Depending on which fee, it has been 7 to 12 years since fees have been changed.
The current fees do not cover the District Permit Program cost(s). The Final Permit and Fixture Fee Study Report (Study Report) is complete
and District staff is recommending increases to the Permit and Fixture Fees for the upcoming 5-year period.
RDN worked cooperatively with District staff to develop and evaluate fee alternatives along with study results. Based on this analysis and
review, District staff provided the Board with the final Study Report and a 5-Year Fee Increase Recommendation(s) which was Approved and
Filed in May 2025.
The overall cost of sewer permits, plan checks, inspections, and fixture fees will increase as the current Fees are not covering the District costs,
including labor, inspection and other program costs. A first-year Fee summary and overview schedule is outlined in the Financial Section.
Permit, Fixture, and Development Fees will increase and the associated 5-year Fee Schedule is provided, see attached Schedule(s).
An overview of revisions is as follows:
1. Section 6.04.020: Updated to reflect a separate Resolution for Fixture Fees and Permit Fees.
Subject 1. Public Hearing to Consider an Ordinance Amendment to the Operations Code
Chapter 6.04, Development and Miscellaneous Fees and Adoption of a Fee
Resolution Pertaining to Development Fee, Permit Fee, and Fixture Fee Schedule(s)
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action
Recommended
Action
That the Board of Directors:
1. Conduct a Public Hearing to consider an Ordinance Amendment and the adoption of a Fee
Resolution pertaining to development fees; and
2. Adopt these Fee adjustment(s) as Categorically Exempt per the California Environmental
Quality Act (CEQA) Section 15300, that provides for administrative matters as exempt; and
3. Adopt Ordinance 2025-140 Replacing and Amending Chapter 6.04 of the Operational Code
in its entirety; and
4. Adopt Resolution No. 2025-1000 of the Board of Directors of the Costa Mesa Sanitary
District a New 5-Year Fixture, Permit, and other Development-related Fee Schedule(s).
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2. Section 6.04.040: Updated language and minor changes to reflect updates associated with Laws and other requirements.
3. Section 6.04.050: Updated language and minor changes to reflect updates associated with Laws and other requirements..
4. Section 6.04.060: Updated language and minor changes to reflect updates associated with Laws and other requirements. Also
updates the State Contractor License Requirements.
5. Section 6.04.070: Removed Fixture Fee Schedule and include a reference to a Separate Resolution for Permit and Fixture Fees
6. Section 6.04.080: Removed Permit, Plan Check, Annexation Fee Schedules/Information, and Connection Fee Values and Updated
language to reflect reference to a Separate Fee Schedule Resolution.
Otherwise, typographical errors were fixed, code sections corrected and general organizational formatting was performed.
Legal Review
District Counsel has reviewed and commented on the associated documents. In addition, District Counsel has reviewed and approved the
attached ordinance and resolution.
Environmental Review
Revising subject documents is an administrative matter and is categorically exempt under the California Environmental Quality Act (CEQA)
(Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list
those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing
Procedures” that state on page 6 “”Projects” does not include "Continuing administrative or maintenance activities.”
Financial Review
In fiscal year 2023-24, the District collected about $203,800 in Fixture fees. The Fixture Fee Option1A, approved by the Board of Directors in
May 2025, will generate about $750,000 per year starting in Year 5 (FY29-30): a 270% increase. Refer to the first-year comparison chart,
below, for an example comparison. The Fixture Fee Option 1A provides for a transition from the Option 2 Fixture Fee to the final year Option 1A
Fixture Fees over the 5-year, schedule period. Therefore the increase in Fixture Fees will accordingly transition to the final amount.
See the Attached 5-Year Permit Fee and 5-Year Fixture Fee Schedule(s) for the new fees.
Comparison Char of First year Costs
Item FY 2023-24
Revenue
Option #1A
Revenue
Option #2
Revenue
Permit Fees $38,400 $47,000 $47,000
Plan Check and Inspection $101,400 $160,000 $160,000
Fixture Fees $64,000 $195,000 $131,000
Total $203,800 $402,000 $338,000
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2025 Board of Directors regular meeting at
District Headquarters and on District website at www.cmsdca.gov.
Alternative Actions
Direct staff to report back with more information.
File Attachments
Affidavit 8002380 Costa Mesa Sanitary Fixture Fees.pdf (532 KB)
Ordinance No. 140.pdf (186 KB)
Resolution No. 2025-1000.pdf (179 KB)
Administrative File Attachments
2025 06 Final Development Fee Ordinance 18 6.04.docx (30 KB)
2025 06 18 ARB resol fees cmsd.docx (24 KB)
ord_140 (2).docx (30 KB)
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resolution_fixture_fees (2).docx (24 KB)
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D. PUBLIC HEARINGS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Alan Burns, District Counsel
Date: June 23, 2025
Subject: Adopt Resolution No. 2025-1001 confirming Wastewater Annual Charges and Resolution No. 2025-1002 confirming Solid
Waste Annual Charges respectively for FY 2025-26 to be collected with the General Taxes and Direct the District Clerk to File with the
County Auditor.
Summary
The District adopted the procedures authorized by Health and Safety Code Section 5470 that allows solid waste and wastewater charges to be
collected on the assessment roll. To do so we must adopt a report assessing the charges against the parcels every year. The proposed
resolutions make those assessments.
Recommendation
The Board of Directors adopt Resolution No. 2025-1001 confirming the Wastewater and Resolution No. 2025-1002 confirming the Solid
Waste Annual Charges respectively for FY 2025-26 to be collected with the general taxes and direct the Finance Manager to file with the
County Auditor.
Analysis
The District has adopted the procedures provided in Health and Safety Code Section 5470 to allow our solid waste and wastewater collection
charges to be collected with other taxes on the County assessment roll. To be able to do so, the District went through a mailed notice
proceeding and the process was implemented in the early 1990s. Since that implementation, Proposition 218 was passed (Article XIIID of the
California Constitution) which required that fees must be justified as proportional and in other ways proper whenever a new fee or increase is
needed. That proceeding also requires mailed notice and a protest hearing. In FY 2025-26 the fee for wastewater collection will remain
unchanged (0.00%) and the fee for solid waste collection will increase 9.00%.
The District followed the Proposition 218 procedures in considering the increase in solid waste charges and a protest hearing was held on June
24, 2024, and the protest failed. In accordance with Government Code Section 54756, the District is required to give notice at least 30 days
before each increase goes into effect. The notice for the 9.00% increase in the solid waste collection fee was mailed, in a form of a postcard, to
property owners 30 days prior to tonight's meeting. Attached as Exhibit 1 is a copy of the postcard notice. Because there will be no
increase for the wastewater charge where the charge will remain the same from current year, complying with Government
Code Section 54756, giving notice at least 30 days, is not necessary.
The District is required to annually assess both the solid waste and wastewater charges by parcel for the Assessor. The procedure to assess
parcels must be adopted after a noticed public hearing, for which notice is published two weeks before in an appropriate newspaper. The
District will provide the County with an electronic version of a report which contains a description of each property receiving services and the
Subject 2. Public Hearing to Consider Adopting a Resolution Confirming Wastewater and
Solid Waste Annual Charges respectively for Fiscal Year 2025-26 to be collected
with the General Taxes and Direct the District Clerk to File with the County Auditor
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action
Fiscal Impact Yes
Budget Source Wastewater & Solid Waste Funds
Recommended
Action
The Board of Directors adopt Resolution No. 2025-1001 confirming the Wastewater and
Resolution No. 2025-1002 confirming the Solid Waste Annual Charges respectively for FY
2025-26 to be collected with the general taxes and direct the Finance Manager to file with the
County Auditor.
Goals 8.0 Finance
8.2 Finance - Adopt a balanced budget
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charges. The real property may be described by reference to the assessor’s parcel map description.
The hearing should be held to consider objections or protests to the assessments. Upon conclusion of the hearing, the Board may adopt the
resolutions approving the assessments to be filed with the Auditor. The Clerk must then file the assessments with the Auditor before August 10.
The Clerk must confirm that the charges were adopted by the Board. The Auditor must then enter the charges against the parcels on the
assessment roll. The charges are then collected by the Assessor and if the charges are not paid, there are procedures for liens, penalties and
collections.
Legal Review
District Counsel has reviewed and approved this report along with resolutions that are attached hereto.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not
include......C. Continuing administrative or maintenance activities.”
Financial Review
The assessed rate for solid waste will increase 9.00% while the assessed rate for wastewater will remain the same from the year before. See
below charts for each individual customer class rate.
Wastewater Rates for FY 2025-26 Solid Waste Rates for FY 2025-26
Customer Class Rate Customer Class Per Month Per Year
Residential (Per Dwelling Unit) Single Family $29.88 $358.52
Single Family Residential $118.43
Multi-Family Residential 89.89
Trailer 83.48
Accessory Dwelling Unit (ADU) 43.54
Non-Residential (Per 1000 sq. ft.
Commercial – Ave Strength $ 51.63
Commercial – High Strength 57.49
Industrial 132.96
Public Notice Process
In accordance with Government Code Section 54756, the District gave proper 30 days notice, in the form of a postcard mailed to every
property owner, before the solid waste fee increase went into effect. In addition, the hearing was properly noticed with two weeks newspaper
notice in accordance with Government Code Section 6066. Copies of this report are on file and will be included with the entire agenda packet
for the June 23, 2025 Board of Directors regular meeting at District Headquarters and on the District’s website www.cmsdca.gov.
Alternative Actions
1. Do not adopt the resolutions and refer the matter back to staff.
File Attachments
Prop 218 4 x 6 Postcard_PROOF.pdf (618 KB)
Affidavit 8002030 Costa Mesa Sanitary Solid Waste Wastewater.pdf (448 KB)
Resolution No. 2025-1001 - Wastewater.pdf (121 KB)
Resolution No. 2025-1002 - Solid Waste.pdf (112 KB)
Administrative File Attachments
resolution_2025-1001_wastewater.docx (63 KB)
resolution_2025-1002_solidwaste (3).docx (25 KB)
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D. PUBLIC HEARINGS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: June 23, 2025
Subject: Public Hearing to Consider Adopting the Biennial Budget for Fiscal Years 2025-26 and 2026-27
Summary
Over the course of several meetings, staff received input from the Board of Directors and the public regarding the District’s proposed biennial
budget for Fiscal Years (FY) 2025-26 and 2026-27. Staff have incorporated all recommendations into the budget, as directed by the Board, and
are pleased to present the proposed budget for adoption. The total budget presented for adoption for FY 2025-26 is $17,446,300 and for FY
2026-27 is $17,826,800, as shown in attachments A and B.
Recommendation
The Board of Directors Adopt Resolution No. 2025-1003 Adopting the Biennial Budget for Fiscal Years 2025-26 and 2026-27.
Analysis
FY 2025-26 Proposed Budget (Attachment A):
The total proposed budget for FY 2025-26 is $17,446,300. The Solid Waste Fund proposed budget reflects a balanced budget of $8,690,900
which includes the second 9% rate increase from the 2024 Solid Waste Rate Study adopted by the Board.
The Wastewater Fund reflects a balanced budget of $8,363,100. Fiscal Years 2025-26 represents the fourth year of the five-year rate increase
plan. The wastewater rates will remain stable for the next two Fiscal Years. Based on the District's records, staff projects a 0.08% growth in
property, driven by a combination of Accessory Dwelling Units (ADUs) and commercial customer classes.
Property tax revenues are unrestricted revenues previously recorded in the Solid Waste Fund for rate stabilization. Staff proposed to transfer
100% of this revenue to the Solid Waste Fund in FY 2025-26 and to distribute between the Solid Waste and Wastewater Funds in the second
year. The proposed property tax revenues are $392,300 and $400,000 for FY 2025-26 and 2026-27, respectively.
FY 2025-26 Capital Outlay
The proposed budget for FY 2025-26 includes a request of $230,500 from the Administration Capital Outlay budget to replace the
District's outdated and ineffective security system and to enhance information technology security.
Security Cameras at HQ and District Yard (DY) - This capital project aims to replace the District's outdated and ineffective
security system with modern camera technology, advanced CCTV software, and the necessary infrastructure to support the
new system. The proposed budget for the installation of the new security cameras at the District Headquarters (HQ) and the
District Yard (DY) is $100,000. The cost will be allocated with 10% charge to the Solid Waste Fund and 90% to the
Subject 3. Public Hearing to Consider Adopting the Biennial Budget for Fiscal Years 2025-26
and 2026-27
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action
Fiscal Impact Yes
Recommended
Action
The Board of Directors:
1. Conduct a Public Hearing; and
2. Adopt Resolution No. 2025-1003 Adopting the Biennial Budget for Fiscal Years 2025-26 and
2026-27
Goals 8.2 Finance - Adopt a balanced budget
8.0 Finance
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Wastewater Fund. The 90% cost for the Wastewater Fund will be supported by the Facilities Revolving Fund. The
Headquarters and District Yard have been identified as serving the needs of all residents. Amounts collected in the Facilities
Revolving Fund are related to a facility that is of benefit to the person who contributed the money. In the past, the District
used the Facilities Revolving Fund to support the purchase and installation of the Solar Panels, purchase of the 290
Paularino building and the Drought Tolerant Landscape project. Staff proposed to transfer $90,000 from the Facilities
Revolving Fund to the Wastewater Fund to support the replacement of the security cameras at HQ and District Yard (DY)
project.
Information Technology (IT) Projects - All of the upcoming IT projects in the proposed budget are grant funded. CMSD was
one of 97 local agencies that were awarded the FY 2024 State and Local Cyber Security Grant. The grant totals $195,894
that will be distributed and managed by the California Office of Emergency Services (CalOES). These projects will be
completed by CMSD’s IT Managed Service Provider, Acorn Technology Services, by December 31, 2026, and are therefore
included in the proposed FY 25-26 budget. The project budgets are allocated across two accounts: Capital Outlay (for
equipment, licensing, and subscriptions) and Professional Services (for contractor labor). Additionally, the grant will support
staff time dedicated to the project. The remainder of the IT budget in both Fiscal Years includes recurring expenses (such as
IT technical support and network maintenance), annual vulnerability scans and remediations, website hosting and
maintenance, office equipment (such as computers, tablets, phones, printers, and copiers), emergency equipment (such as
radios), and various software licenses and subscriptions.
FY 2026-27 Proposed Budget (Attachment B):
The total proposed budget for FY 2026-27 is $17,826,800. The Solid Waste Fund proposed budget reflects a balanced budget of $9,221,400
which includes the third 7% rate increase from the 2024 Solid Waste Rate Study adopted by the Board. The Wastewater Fund reflects a
balanced budget of $8,205,400. This reflects a 2% decrease compared to the proposed budget of $8,363,100 for Fiscal Year 2025-26. The
decrease is primarily attributed to a reduction in revenue for FY 2026-27, including the absence of Cyber Security grant funding. The
anticipated decrease in revenue will result in a corresponding reduction in expenses. As noted earlier, the proposed property tax revenues
budget for FY 2026-27 is $400,000. Staff proposed to use this revenue to support both the Solid Waste and Wastewater Funds.
FY 2026-27 Capital Outlay
The proposed budget for FY 2026-27 includes a request for $185,000 for the Administration Capital Outlay budget.
HQ Parking Lot (and Landscaping) Improvements $100,000: This project will bring the HQ parking area into compliance with current
building and ADA codes, update the landscaping to xeriscape, update and improve lighting, and provide an outdoor employee lunch
area. The project will also install additional rainwater runoff facilities, remove tree roots that have been damaging the asphalt. Staff
proposed $100,000 to transfer from the Facilities Revolving Fund to the Wastewater Fund to support the HQ Parking Lot (and
Landscaping) Improvements.
Master Plan $85,000 - This project will provide for an update of the District Sewer Master Plan (MP). The last MP update was
developed in 2021.
FYs 2025-26 and 2026-27 Capital Improvement Projects (CIP)
The District’s Asset Management Fund is a crucial financial resource established to support capital improvement projects and emergency
repairs, ensuring the District can effectively maintain and upgrade its infrastructure while preserving financial stability. The fund is governed by
a policy that encourages the use of prudent funding mechanisms for capital projects, including the “Pay As You Go” method, debt issuance
(such as bonds), or a combination of both. Historically, the District has utilized the “Pay As You Go” method to fund capital improvement
projects. The annual transfers from the Asset Management Fund to the Wastewater Fund to support the Capital Improvement Projects (CIP)
are aligned with the CIP budget and are reflected in the "Transfers" section of the budget. The total budget of the proposed Capital
Improvement Projects (CIP) for fiscal years 2025-26 and 2026-27 are $1,511,000 and $1,345,000, respectively.
In addition, the District mandates a minimum balance of $5 million in the Asset Management Fund to ensure sufficient resources for planned
and unforeseen projects. Annual transfers from the Wastewater Fund are allocated to this reserve, and any transfers out of the fund must
maintain this minimum balance. The fund plays a crucial role in financing both long-term capital improvements and urgent repairs, ensuring the
District can effectively manage its infrastructure while adhering to sound financial practices. For Fiscal Years 2025-26 and 2026-27, staff have
proposed transfers of $1,591,000 and $1,345,000, respectively, from the Wastewater Fund to the Asset Management Fund. These transfers
include the respective year's CIP budget amounts, along with an additional contribution of $80,000 for Fiscal Year 2025-26. These transfers will
help increase the Asset Management Fund balance, ensuring they align with the District’s goal of maintaining a balance of at least $5 million.
Legal Review
District Counsel reviewed this staff report and prepared the resolutions that are attached hereto.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not
include …. C. Continuing administrative or maintenance activities.”
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Financial Review
The proposed budgets for FY 2025–26 and FY 2026–27 reflect balanced totals of $17,446,300 and $17,826,800, respectively.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2025 Board of Directors regular meeting at
District Headquarters and on District website www.cmsdca.gov.
Alternative Actions
1. Refer the matter back to staff for additional information.
File Attachments
Attachment A Proposed Budget FY 2025-26.pdf (1,165 KB)
Attachment B Proposed Budget FY 2026-27.pdf (1,099 KB)
Attachment C. Budget Resolution 2025-1003.pdf (169 KB)
Affidavit 8002384 Costa Mesa Sanitary Biennial Budget.pdf (412 KB)
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D. PUBLIC HEARINGS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Lieu Tran, Sr. Accountant
Date: June 23, 2025
Subject: Adopt Resolution No. 2025-1004 Placing Liens on the Fiscal Year 2025-26 Tax Roll
Summary
The Costa Mesa Sanitary District (CMSD) identified three properties that were incorrectly billed for wastewater services on the County of
Orange tax roll from Fiscal Year (FY) 2021-22 through FY 2024-25, due to inaccurate classifications and/or unit counts. These discrepancies
have since been corrected, and all three properties are scheduled to be billed accurately on the FY 2025-26 tax roll.
Between April and June 2025, the District sent a minimum of three (3) correspondences, including letters and invoices, to each property owne
mailing address on file. As of today, the outstanding balances for these properties have been delinquent for more than 60 days. The affecte
properties are listed in the section below.
Recommendation
1. The Board of Directors approve the District to add the unpaid back billing charges to the upcoming tax roll for FY 2025-26.
2. Adopt Resolution No. 2025-1004 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.
Analysis
District staff discovered that Assessor Parcel Numbers (APNs) 988-013-72, 988-013-76, and 420-051-01 were incorrectly classified and/or
assigned inaccurate unit counts. As a result, these properties were not properly assessed for sewer service charges over several years. This
error violates CMSD’s Operations Code Chapters 6.06 and 7.02.
To correct the issue, CMSD has back billed the property owners for Fiscal Years (FY) 2021-22 through 2024-25, which includes the past three
years plus the current fiscal year. Each invoice was sent with a letter explaining the charges, detailing the process to contest them during a
public hearing, and stating that any unpaid amounts would be added to the FY 2025-26 tax roll if not paid by the due date.
The initial letters and invoices were mailed in April 2025. Follow-up reminder letters and invoices were sent in May and June 2025 to property
owners who had not yet submitted payment to the District. As of today, the outstanding balances for these properties have been delinquent for
more than 60 days. Staff recommends that the Board of Directors approve adding the unpaid back billing charges to the upcoming FY 2025–26
tax roll in order to recover the cost of services rendered.
Legal Review
The receipt of service without payment provided a windfall to the owner. The assessments are obligations based on statute, and the statute of
limitations for an action based on statute, including an assessment, is three years. (CCP §338; Swamp-Land Dist. No. 307 v. Glide 112 Cal. 85
(1896).) The District does not have to file a complaint to recover this money, but can file a lien and seek recovery on the tax rolls with other
charges. (H & S C §§5473.11, 6523.3.)
Environmental Review
Consideration of placing charges on the property tax roll is an administrative matter and is exempt from the requirements of the
California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency
while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has
Subject 4. Public Hearing to Consider Adopting a Resolution Placing Liens on the Fiscal Year
2025-26 Tax Roll
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action
Recommended
Action
1. The Board of Directors approve the District to add the unpaid back billing charges to the
upcoming tax roll for FY 2025-26.
2. Adopt Resolution No. 2025-1004 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.
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adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative
or maintenance activities.”
Financial Review
Below is the list of properties that remain unpaid for wastewater services during the period of FY 2021-22 through FY 2024-25.
Address APN Outstanding Balance
2551 Santa Barbara Ln 25, CM 988-013-72 $ 11,811.16
Harbor Blvd 420061, CM 988-013-76 $ 9,946.24
2579 San Clemente Dr, CM 420-051-01 $ 27,352.16
Total $ 49,109.56
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the June 23, 2025 Board of Directors regular meeting at
District Headquarters and posted on the District’s website at www.cmsdca.gov. This matter will be the subject of a hearing.
Alternative Actions
1. Waive all past due charges for properties listed.
File Attachments
Proof 8002702 Costa Mesa Sanitary Lien Village Investments.pdf (89 KB)
Resolution No. 2025-1004.pdf (123 KB)
Administrative File Attachments
procedure_script_delinquent_accounts.pdf (56 KB)
Resolution_2025-1004.docx (40 KB)
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: June 23, 2025
Subject: Consider Adopting the Fiscal Year 2025-30 Strategic Plan
Summary
A strategic plan outlines the direction an organization aims to pursue and helps establish realistic objectives and goals aligned with its vision
and mission. CMSD's adopted the FY 2020-25 Strategic Plan is ending on June 30, 2025, marking the most ambitious initiative in the district's
history. The plan encompassed eight strategic elements, 125 strategic goals, and detailed strategies for achieving them. See goals achieved
over the past five years in the attached document.
On January 13, 2025, the Board of Directors began laying the groundwork for preparing the FY 2025-30 Strategic Plan by approving the
following schedule:
January 13, 2025 Board Special Meeting – Where are we now?
January – March 2025 – staff draft objectives and goals
April 8, 2025 Board Study Session – Board reviews, edits and comments on draft objectives and goals
May 21, 2025, Citizens Advisory Committee – CAC reviews, edits and comments on draft 2025-30 Strategic Plan
May 27, 2025, Board of Directors meeting – Board reviews draft plan.
June 10, 2025 Board Study Session – Board reviews final draft plan
June 23, 2025 Board of Directors meeting – Board adopts FY 2025-30 Strategic Plan
Recommendation
That the Board of Directors adopt the Fiscal Year 2025-30 Strategic Plan
Analysis
The process began with the Board performing a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. The primary purpose of a
SWOT analysis is to assess the district's current position and guide strategic planning by examining our internal strengths and weaknesses, as
well as external opportunities and threats. After the Board performed the SWOT analysis, the analysis was expanded after the general manager
performed the exercise with all district staff. Attached is the completed SWOT analysis.
After the Board performed the SWOT analysis, staff requested guidance from the Board on potential revisions to the district's vision and
mission statements, core values and strategic elements. Soon after, staff provided their comments and suggestions for revising the strategic
plan.
Both the Board and staff agreed the district's vision and mission statements should remain the same, which states:
Vision Statement
Leading a community that is free from solid waste and wastewater pollution.
Mission Statement
To protect public health and the environment for current and future generations.
The core values and strategic elements were slightly modified. The Board of Directors directed staff to develop objectives, tasks to be
completed (goals), and tasks completion timeline for each strategic element and then report back. From January through March, the general
manager met with each department to facilitate discussion and complete the Board assignment. On April 8, 2025, the Board of Directors
reviewed the proposed strategic objectives, tasks and completion deadline.
Subject 1. Consider Adopting the Fiscal Year 2025-30 Strategic Plan
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action
Recommended
Action
That the Board of Directors adopt the Fiscal Year 2025-30 Strategic Plan
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On May 21, 2025, the Citizens Advisory Committee reviewed the draft strategic plan and made several comments and suggestions to the plan.
On May 27, 2025, the Board of Directors reviewed and commented on the final draft version of the plan. The Fiscal Year 2025-30 Final
Strategic Plan document is attached hereto and ready for Board approval consideration.
Legal Review
Not applicable
Environmental Review
Preparing a strategic plan document is an administrative matter and is exempt from the requirements of the California Environmental Quality
Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own
procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and
Implementing Procedures" that state on page 6 "Projects" does not include... C. Continuing administrative or maintenance activities.
Financial Review
There are no costs for developing the proposed FY 2025-30 Strategic Plan because the creation of the proposed plan was facilitated internally.
Typically, a consultant will charge between $50,000 to $75,000 facilitating the preparation of a strategic plan. The proposed FY 2025-30
Strategic Plan is aligned with the proposed biennial FY 2025/26-2026/27 Budget and the Plan will continue to be align with future budgets.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the June 23, 2025, Board of Directors meeting at District
Headquarters and posted on the District's website at www.cmsdca.gov.
Alternative Actions
1. Do not approve the Fiscal Year 2025-30 Strategic Plan and direct staff to report back with more information
File Attachments
Strategic Plan FY 2020-25 FINAL Report.xlsx (48 KB)
2025-2030 Strategic Plan Final.pdf (15,612 KB)
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: June 23, 2025
Subject: California Special Districts Association (CSDA) Board of Directors Election Ballot - Term 2026 - 2028; Seat B - Southern
Network
Summary
The California Special Districts Association (CSDA) is a 501c(6), not-for-profit association that was formed in 1969 to promote good
governance and improved core local services through professional development, advocacy, and other services for all types of independent
special districts. CSDA is governed by an 18-member Board of Directors elected by electronic voting. The Board consists of three directors
from each of the six networks throughout California. The Board meets bi-monthly in Sacramento to guide the Association’s legislative and
member benefit programs.
Recommendation
That the Board of Directors direct the General Manager to cast a vote for one of the three candidates running for the CSDA Board of Directors,
Southern Network, Seat B.
Analysis
Electronic voting is now open for Seat B of the six networks for the 2026–2028 term. The Costa Mesa Sanitary District is part of the Southern
Network, where three candidates are running for Seat B:
Don Bartz, General Manager, Phelan Piñon Hills Community Services District (Incumbent)
Jason Dafforn, General Manager, Valley Sanitary District
John Skerbelis, Director, Rubidoux Community Services District
Additional information about the candidates is attached. Voting closes on July 25, 2025, at 5:00 p.m. Staff is seeking direction from the Board
on which candidate CMSD should vote for.
Legal Review
Not applicable
Environmental Review
Selecting and voting for a candidate for CSDA Board of Directors is an administrative matter that will not result in direct or indirect physical
changes in the environment and is not considered a "project".
Financial Review
There are no financial impacts to the district for casting a vote for Seat B of CSDA's Southern Network
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2025 Board of Directors regular meeting at
District Headquarters and on District website at www.cmsdca.gov
Alternative Actions
1. Do not cast a vote for any candidates.
Subject 2. California Special Districts Association (CSDA) Board of Directors Election Ballot -
Term 2026 - 2028; Seat B - Southern Network
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action
Recommended
Action
That the Board of Directors direct the General Manager to cast a vote to one of the three
candidates running for CSDA Board of Directors Southern Section, Seat B.
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File Attachments
don-bartz-candidate-information-form.pdf (114 KB)
don-bartz-candidate-statement.pdf (42 KB)
jason-dafforn-candidate-information-form.pdf (955 KB)
Jason Dafforn.pdf (229 KB)
jason-dafforn-candidate-statement.pdf (26 KB)
john-skerbelis-candidate-information-form.pdf (1,009 KB)
john-skerbelis-candidate-statement.pdf (189 KB)
don-bartz-candidate-information-form.pdf (114 KB)
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Lieu Tran, Sr. Accountant
Date: June 23, 2025
Subject: Assessing Wastewater Charges for Properties on Fairview Development Center
Summary
The District identified errors in classification and/or unit counts for ten properties within the Fairview Development Center, owned by the State
of California and Village Investments, which led to inaccurate sewer service charge assessments. After corrections, backbills totaling
$119,862.20 were issued for FY 2021-22 through 2024-25. The District has received $70,752.64 from the State of California, while Village
Investments still has an outstanding balance of $49,109.56. Any unpaid balances may be placed as tax liens on the FY 2025-26 tax roll. All
records have been updated to ensure accurate billing moving forward.
Recommendation
That the Board of Directors receive and file this report.
Analysis
District staff discovered that ten properties owned by the State of California and Village Investments within the Fairview Development Center,
located in Costa Mesa, were incorrectly classified and/or assigned inaccurate unit counts. As a result, these properties were not properly
assessed for sewer service charges over several years, which is a violation of CMSD’s Operations Code Chapters 6.06 and 7.02.
To correct the issue, staff conducted site visits to verify the proper classifications and number of units for each Accessor Parcel Number (APN).
Based on these findings, CMSD backbilled or credited the property owners for Fiscal Years (FY) 2021-22 through 2024-25, covering the past
three years plus the current fiscal year. As a result, the property owners owe the District a total of $119,862.20 for services they received but
have not yet paid for.
The District began mailing letters and invoices in April 2025. Each invoice was accompanied by a letter explaining the charges, outlining the
process for contesting them during a public hearing, and stating that any unpaid amounts would be added to the FY 2025-26 tax roll if not paid
by the due date. Follow-up reminder letters and invoices were sent in May and June 2025 to property owners who had not yet submitted
payment.
To date, the District has received payments from the State of California totaling $70,752.64. Village Investments has contacted the District and
indicated that payment will be mailed soon. If payment is not received by June 23, 2025, staff proposed placing a tax lien on the FY 2025–26
tax roll for any properties with outstanding balances in order to recover the cost of services rendered.
In addition, the District has corrected the classifications and/or unit counts for each APN, and all properties are scheduled to be accurately
billed on the FY 2025-26 tax roll.
Legal Review
The receipt of service without payment provided a windfall to the owner. The assessments are obligations based on statute, and the statute of
limitations for an action based on statute, including an assessment, is three years. (CCP §338; Swamp-Land Dist. No. 307 v. Glide 112 Cal. 85
(1896).) The District does not have to file a complaint to recover this money, but can file a lien and seek recovery on the tax rolls with other
charges. (H & S C §§5473.11, 6523.3.)
Environmental Review
Consideration of placing charges on the property tax roll is an administrative matter and is exempt from the requirements of the
California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency
while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has
adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative
or maintenance activities.”
Subject 3. Assessing Wastewater Charges for Properties on Fairview Development Center
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Receive and File
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Financial Review
Below is a list of properties owned by the State of California that have made payments to the District for wastewater services during FY 2021-
22 through FY 2024-25.
Address APN Amount Paid
NA CA-55, COSTA MESA 420-051-03 $ 848.16
2515 MERRIMAC WAY 1, COSTA MESA 420-041-01 55,947.60
2500 MERRIMAC WAY, COSTA MESA 420-061-02 39,718.44
2503 CHRISTOPHER LN, COSTA MESA 420-071-01 2,201.62
2476 MARK LN, COSTA MESA 420-012-16 (14,543.40)
NA CA-55, COSTA MESA 420-041-02 (37.70)
6 MARK LN, COSTA MESA 420-041-03 (13,382.08)
Total $ 70,752.64
Below is a list of properties owned by Village Investments with outstanding balances for wastewater services from FY 2021–22 through FY
2024–25.
Address APN Outstanding
Balance
2551 SANTA BARBARA LN 25, COSTA MESA 988-013-72 $ 11,811.16
HARBOR BLVD 420061, COSTA MESA 988-013-76 9,946.24
2579 SAN CLEMENTE DR, COSTA MESA 420-051-01 27,352.16
Total $ 49,109.56
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the June 23, 2025 Board of Directors regular meeting at
District Headquarters and posted on the District’s website at www.cmsdca.gov. This matter will be the subject of a hearing.
Alternative Actions
Refer item back to staff with further instructions.
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Senior Management Analyst
Date: June 23, 2025
Subject: Receive and File Three-Cart System Commercial Performance Metrics
Summary
As part of the District's Three-Cart System outreach efforts, staff worked with communications consultant, Tripepi Smith, to develop an
evergreen 30-second commercial to be distributed both on social media and television/streaming platforms. The commercial asks customers to
"do your part and sort smart" using the Recycling, Organics, and Landfill Carts and briefly describes which materials belong in each cart. This
commercial differs from the four public service announcement videos released in 2024, which helped prepare customers for the three-cart
transition by covering the following topics: why CMSD is moving to a three-cart system, how to properly sort waste, positive impacts on the
environment, and what to expect during the rollout.
This is the District's first venture into advertising on television and streaming platforms. While it can be a costly, the District recognizes the value
of reaching customers on the digital platforms where they spend the most time, and the ability to target customers more accurately. Additionally,
digital advertising creates less paper waste than print advertising, which is in line with the District's values. The purpose of this report is to
provide a high level overview of the commercial's performance on the various distribution platforms.
Recommendation
That the Board of Directors receive and file this report.
Analysis
The District engaged three paid advertising platforms to distribute its commercial: Spectrum Reach, Division D, and Meta (Facebook). Outlined
below are some key terms, along with the campaign details and performance metrics associated with each platform.
Key Terms
Impressions: the number of times an ad is displayed on a viewer's screen, regardless of whether the viewer sees or interacts with it
Completion Rate: the percentage of viewers who allow the full 30-second ad to play from start to finish
Views: the number of unique instances that a video is played (excludes replays of the video by the same viewer)
Clicks: the number of times a user selects a hyperlink to navigate to a webpage
Spectrum Reach
Since Costa Mesa's primary cable and internet provider is Spectrum, the District chose to advertise on Spectrum's streaming television service.
This service allows Spectrum internet customers to stream television live to access traditional cable channels such as ESPN, Disney, HGTV,
etc. Below are the campaign details.
Subject 4. Receive and File Three-Cart System Commercial Performance Metrics
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Receive and File
Goals 5.6 Community Outreach & Communications - Enhance communications platforms
5.5 Community Outreach & Communications - Use clear messaging and education to
engage the community in District programs and activities
5.4 Community Outreach & Communications - Track and report communications metrics
5.0 Community Outreach & Communications
2.0 Solid Waste
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Audience targeting: Split between homeowners & general market, zip codes 92626 & 92627
Campaign
Month Impressions Completion
Rate Top 5 Networks Budget
April 145,346 97.52%Spectrum News, Fox News, Spectrum
Sports, Amazon Ads, Vizio $4,500
May 147,847 98.10%Spectrum News, Fox News, Spectrum
Sports, Amazon Ads, CNN $4,500
Division D
As an alternative to traditional cable television channels, the District ran ad campaigns with Division D to reach customers who use subscription
streaming platforms such as Netflix, Disney/Hulu, Paramount, etc. Below are the campaign details.
Audience targeting: homeowners & renters in zip codes 92626 & 92627
Campaign
Month Impressions Completion
Rate Top 5 Platforms Budget
April 90,615 97.60%Paramount, Peacock, Max,
Hulu, Disney+$4,176.48
May 97,041 97.75%Paramount, Max, Peacock,
Hulu, Disney+$4,176.48
Additionally, the District purchased placement of three-cart system web banners (graphic below) to retarget users who viewed the commercial
and drive traffic to the District's website.
Campaign Month Impressions Clicks Budget
April 64,352 163 $323.53
May 66,523 101 $323.53
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Meta (Facebook)
Since Facebook consistently receives the most engagement out of all the District's social media platforms, the District ran two ad campaigns to
promote the Three-Cart System commercial. Below are the campaign details.
Campaign Month Impressions Views Clicks Budget
April 100,964 48,798 1,527 $1,000
May 88,630 120,900 32,232 $1,000
In addition to the paid ads, the District posted its commercial on YouTube, X, and Instagram.
Website
Lastly, to demonstrate the impact of the commercial on the District's website traffic, below are some website metrics from before and after the
aforementioned ad campaigns.
Month Total Views Homepage Views Three-Cart Webpage Views Total Active Users
February 12,829 4,568 246 6,396
March 12,306 5,194 209 6,578
April 18,929 10,577 1,214 13,125
May 23,934 10,883 2,616 15,898
Presentation Link
Legal Review
Not applicable.
Environmental Review
Educating the District's customers about how to source separate household waste through a 30-second commercial is an administrative matter
and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA
Guidelines.
Financial Review
There are sufficient funds within the Solid Waste Public Info/Education/Promotion account to cover the costs related to producing and
advertising the commercial, which are outlined below.
Description Vendor Cost
Video production*Tripepi Smith $1,215
Ad Buying/Placement OnSight Group $4,050
Advertiser - Streaming Cable Spectrum Reach $11,475**
Advertiser - Streaming Platforms & Web Banners Division D $11,475**
Advertiser - Social Media Meta $2,000**
Total $30,215
*The video is comprised of stock footage and footage originally filmed by Tripepi Smith for the District's 2024 Three-Cart System public service
announcement videos; therefore, the production costs are limited to editing existing footage and stock footage.
**These are the advertising budgets. Like most digital ads, a maximum budget is set in advance. Once the ad campaign ends, the advertiser
charges only for the actual number of impressions delivered. If fewer impressions are served than originally estimated, the final cost may be
slightly lower than the budgeted amount.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2025 Board of Directors Meeting at
District Headquarters and posted on the District’s website.
Alternative Actions
Direct staff to report back with more information.
File Attachments
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Presentation Three-Cart System Commercial.pdf (5,234 KB)
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F. ENGINEER'S REPORTS
To: Board of Directors
Subject 1. Receive and File Fiscal Year 2024-25 Capital Improvement Project Budget
Adjustments
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action, Discussion
Fiscal Impact No
Budget Source Various Capital Improvement Line items
The Subject activity, a budget adjustment, is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public
Resources Code Section 21000 et seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those
specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing
Procedures” that state on page 6 “Projects” does not include......C. Continuing administrative or maintenance activities.”
From: Mark Esquer P.E., District Engineer
Date: June 23, 2025
Subject: Fiscal Year 2024-25 Capital Improvement Project Budget Adjustments
Summary
The District must move budget between capital improvement project line item budgets to accommodate higher than anticipated
construction costs and extra work for two projects: Project 535 Irvine Harbor Pump Station Electrical Improvements and Project 311
Manhole Cover Replacements. The P311 MH Frame & Cover Replacement project is over spent by $9,113, and the P535 Irvine Harbor
Electrical Improvements requires about $67,000 to eventually make a project award, as of May 31, 2025, CIP Budget report
The P535 Irvine harbor PS Electrical Improvements consists of updating the incoming wire size and electrical components at the two
pump stations to meet current electrical codes. The District Engineer budgeted $100,000 to conduct the improvement project. because of
a misunderstanding of the construction costs, the District Engineer did not budget sufficient cost for the construction project.
Due to unanticipated frame and cover failures and the need to replace three additional frame and covers, the P311 Manhole Frame and
Cover Replacement went over the project budget. This project replaces aged or failing frames and covers.
The District Engineer reviewed the current CIP project list and is requesting that line items from various projects be adjusted to
accommodate the extra project costs, see summary in the Financial Section, below.
Staff will review the proposed budget changes, appropriations, and recommendations in detail during the verbal report.
Recommendation
The Board of Directors:
Approve the 24-25 FY Capital Outlay Budget Adjustments, as detailed in the Financial Review, below, for a no-cost change to the FY CIP
Budget; and
Analysis
The Board of Directors adopted a wastewater Capital Improvement Project (CIP) budget comprising twenty-one (21) wastewater projects.
Since adoption of the FY25 CIP budget, District staff have periodically adjusted budgets based on unknow conditions and/or
urgent/emergency work. District staff has reviewed the various projects and is proposing to adjust the CIP Project to accommodate the
extra project work.
Legal Review
Legal review is not required at this time.
Environmental Review
Financial Review
The proposed $76,223 budget adjustments are sufficient to cover the project costs or overage. This action provides for no increase in the
CIP outlay for the current fiscal year. As of May 31, 2025, Project #311 Manhole Frame and Cover Replacements has a $9,113 deficit,
Project #347 Elden Odor Scrubber has the available budget of $18,804, and Project #535 Irvine Harbor Electrical Improvements has the
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Account Description Account #Increase Decrease End Balance
P311 Manhole Frame &
Cover Replacements
20-201311-4300 $9,200 $87
P327 Calcium Removal 20-201327-4300 $11,957 $0
P330 WestBluff PS Rehab 20-201330-4300 $31,071 $0
P336 Grade 4 Sewer
Replace
20-201336-4300 $22,420 $0
P342 HQ Landscaping 20-201342-4300 $1,662 $0
P347 Elden Odor Scrubber 20-201347-4300 $4,021 $14,783
P350 Demolish HitchCrafter
Bldg
20-201350-4300 $5,092 $0
P535 Irvine Harbor Elec
Improvements
20-202535-4300 $67,023 $165,457
$76,223 $76,223
Based on CIP Budget Report Ending May 31, 2025
available budget of $98,434. Funds from each Project with a proposed ending budget of $0 are being used to balance the project budget
imbalances. See Budget table below for summary of changes.
Public Notice Process
Copies of this Staff Board report are on file and will be included with the entire agenda packet for June 23, 2025, Regular Board meeting
at District Headquarters and on the District website at www.cmsdca.gov.
Alternative Actions
1. Refer the matter back to District staff for consideration of alternatives and return to a future meeting, or;
2. Do not approve recommended CIP budget adjustments and direct staff to continue with the existing CIP outlay.
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F. ENGINEER'S REPORTS
To: Board of Directors
From: Mark Esquer, District Engineer
Date: June 23, 2025
Subject: Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status
Summary
The District Engineer has provided a memorandum with a brief summary of major capital or other engineering activities for the subject period.
The District Engineer's memorandum is attached. Also attached is a detailed summary of the Capital Improvement Project cost report ending
the previous previous calendar month.
Recommendation
The Board of Directors receive and file the Capital Improvement Status Report.
Analysis
Attached is information regarding project or technical sewer activities for the Board of Directors' use and information.
Legal Review
Not Applicable.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not
include …. C. Continuing administrative or maintenance activities.”
Financial Review
The cost of preparing this report is contained within the operating budget. There are sufficient funds available in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2025 Board of Directors Regular meeting
at District Headquarters and posted on the District’s website www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
File Attachments
2025 06 Monthly Engineers Report CMSD Memorandum.pdf (226 KB)
2025-05 Financial Section for CIP Updates.pdf (71 KB)
Administrative File Attachments
2025 06 Monthly Engineers Report CMSD Memorandum.docx (105 KB)
Subject 2. Receive and File the District Engineer's Monthly Report and Capital Improvement
Projects Status
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Discussion, Receive and File
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G. TREASURER'S REPORTS
To: Board of Directors
From: Marc Davis, District Treasurer
Date: June 23, 2025
Subject: Consider Adopting Resolution 2025-1005 Approving the Statement of Investment Policy and Delegating the Investment
Function to the District Treasurer for Fiscal Year 2025-26
Summary
Attached is the proposed Statement of Investment Policy for Fiscal Year 2025-26 (Policy). The Policy documents the Board’s guidelines under
which the District Treasurer can invest the District’s idle funds.
Recommendation
That the Board of Directors adopt Resolution 2025-1005 approving the Statement of Investment Policy and delegating the investment function
to the District Treasurer for Fiscal Year 2025-26.
Analysis
California Government Code §53646(a)(2) allows the District Treasurer to submit an annual investment policy to the Board for consideration. It
is not a requirement to do so, but staff believes it is prudent to continue this practice. The enclosed Policy documents the Board’s objectives
surrounding the selection of investments, as well as those investments in which the Board has authorized. It also provides limitations on
specific investments.
The responsibility for placing investments rests with the Board. California Government Code §53607 allows the Board to delegate the
investment function to the District Treasurer for a period of one year. The attached Resolution approves the Policy and delegates the
investment function to the District Treasurer for the 2025-26 fiscal year.
The Policy has been attached in two versions. A clean version that the Board will be considering for approval, and a red-lined version so that
the Board can review the proposed changes to the Policy. Once approved, the Policy will be distributed to the brokers assisting the District with
the investment of its idle funds.
Legal Review
District Counsel has reviewed Resolution 2025-1005 as to form.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not
include….C. Continuing administrative or maintenance activities.”
Financial Review
The Statement of Investment Policy guides the Treasurer in how to invest the District’s idle funds. The amount of investment earnings to be
generated as a result of the investing function is based upon the market conditions at the time of investment.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the June 24, 2024 Board of Directors regular meeting at
District Headquarters and on the District’s website at www.cmsdca,gov.
Subject 1. Consider Adopting Resolution 2025-1005 Approving the Statement of Investment
Policy and Delegating the Investment Function to the District Treasurer for Fiscal
Year 2025-26
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Action
Recommended
Action
That the Board of Directors adopt Resolution 2025-1005 approving the Statement of
Investment Policy and delegating the investment function to the District Treasurer for fiscal
year 2025-26.
Goals 8.5 Finance - Evaluate the District's Investment policy annually
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Alternative Actions
1. Do not adopt Resolution and retain investment function at the Board level
2. Refer the matter back to staff
Attachments
Attachment 1 – Resolution Number 2025-1005
Attachment 2 – Statement of Investment Policy for Fiscal Year 2025-26
Attachment 3 – Statement of Investment Policy for Fiscal Year 2025-26 (redline version)
File Attachments
Attachment 1 - Investment Resolution No 2025-1005.docx (23 KB)
Attachment 2 - Statement of Investment Policy for FY 2025-26.docx (62 KB)
Attachment 3 - Statement of Investment Policy for FY 2025-26 (Redline).docx (65 KB)
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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.
Subject 1. Orange County Sanitation District (OCSD) - (Vice President Ooten)
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type
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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.
Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry)
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type
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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.
Subject 3. Independent Special Districts of Orange County (ISDOC) - (Vice Secretary
Schafer)
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
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Type
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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.
Subject 4. California Special Districts Association (CSDA) - (Vice Secretary Schafer)
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type
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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.
Subject 5. Special District Risk Management Authority (SDRMA) - (President Scheafer)
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type
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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.
Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
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Type
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L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Subject 1. Oral Communications and Director Comments
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Discussion
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O. CLOSING ITEMS
The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, July 28, 2025 in the
District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.
Subject 1. Adjourn
Meeting Jun 23, 2025 - Board of Directors Regular Meeting
Access Public
Type Procedural
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