Minutes - Board - 2025-06-23COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
JUNE 23, 2025
Members present
Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
Members absent
Arlene Schafer
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk/Public
Information Officer), Gina Terraneo (Senior Management Analyst), Alan Burns
(District Counsel), Marc Davis (District Treasurer), Dyana Wick (Administrative
Services Manager), Marissa Pereyda (Senior Management Analyst), Kaitlin Tran
(Financial Manager), Mark Esquer (District Engineer), Lieu Tran (Senior
Accountant)
Others present
Jim Fisler, Orange County Local Agency Formation Commission
Paul Mesmer, Independent Special Districts of Orange County
Meeting called to order at 4:30 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order - President Scheafer
President Scheafer called the meeting to order at 4:30 P.M.
Procedural: 2. Pledge of Allegiance - President Scheafer
President Scheafer led the Pledge of Allegiance.
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Procedural: 3. Invocation — Vice President Ooten
Vice President Ooten led the Invocation.
Procedural: 4. Roll Call - (If absences occur, consider whether to deem those
absences excused based on facts presented for the absence — such determination
shall be the permission required by law.)
District Clerk & Public Information Officer, Noelani Middenway, conducted
roll call and noted that President Scheafer, Vice President Ooten, Secretary
Perry, and Director Wiltshire were present while Vice Secretary Schafer was
not present.
President Scheafer stated that Vice Secretary Schafer is absent due to illness.
There was no further discussion.
Procedural: 5. Announcement of Late Communications - Unless directed otherwise
by the Board of Directors, all actions shall be based on/memorialized by the latest
document submitted as a late communication.
None.
Procedural: 6. Ceremonial Matters and Presentations
None.
B. PUBLIC COMMENTS
Procedural: 1. Public Comments
President Scheafer opened public comments.
Mesa Water Director and Orange County Local Agency Formation
Commission (OC LAFCO) Special District Member, Jim Fisler, introduced
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himself and shared his OC LAFCO e-newsletter. He thanked Director
Wiltshire for attending a Mesa Water District board meeting.
Independent Special Districts of Orange County (ISDOC) representative, Paul
Mesmer, introduced himself as ISDOC's 1st Vice President and solicitated
input on ISDOC services. He shared information about ISDOC and invited the
District to participate in their events.
The Board thanked Mr. Fisler and Mr. Mesmer for their comments.
Hearing no additional comments, President Scheafer closed public
comments.
C. CONSENT CALENDAR
Action (Consent):1. Approve the Board of Directors Study Session Minutes of May
1302025
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 2. Approve the Board of Directors Regular Minutes of May 27,
2025
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Adopt Warrant Resolution No. CMSD 2025-12 Approving
District Warrant Registers
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.
Action (Consent): 4. Approve Payroll Transparency Disclosure for May 2025
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): S. Approve the Directors' Compensation and Reimbursement of
Expenses
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Recommendation: That the Board of Directors approve the compensation and
reimbursement of expenses as presented.
Action (Consent): 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
Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $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.
Action (Consent): 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
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.
Action (Consent): 8. Investment Report for the Month of May 2025
Recommendation: That the Board of Directors receive and file this report.
Action (Consent): 9. Receive and File May 2025 Contracts Signed by the General
Manager
Recommendation: That the Board of Directors receive and file this report.
Motion: To approve the Consent Calendar.
Motion by Art Perry, second by Nicole Wiltshire.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
There was no discussion.
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D. PUBLIC HEARINGS
Action: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)
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).
President Scheafer introduced the public hearing information. He opened
public comments. Hearing none, he closed public comments.
Ms. Middenway stated that the District did not receive any protests for this
item.
Motion: To adopt these fee adjustment(s) as categorically exempt per the
California Environmental Quality Act (CEQA) Section 15300, that provides
for administrative matters as exempt.
Motion by Art Perry, second by Nicole Wiltshire.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
Motion: To adopt Ordinance 2025-140 replacing and amending Chapter 6.04
of the Operational Code in its entirety.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
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No: None
Abstain: None
Not Present: Arlene Schafer
Motion: To 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).
Motion by Bob Ooten, second by Nicole Wiltshire.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
There was no further discussion, and the public hearing was closed.
Action: 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
Recommendation: That 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 Fiscal Year 2025-26 to be collected with the
general taxes and direct the Finance Manager to file with the County Auditor.
President Scheafer introduced the item.
District Counsel, Alan Burns, stated that this public hearing is an annual
procedure to assess all properties in the District with wastewater and solid
waste charges. He noted that this is public's opportunity to protest their
property charges.
Ms. Middenway stated that the District did not receive any protests for this
item.
Motion: To adopt Resolution No. 2025-1001 confirming the Wastewater and
Resolution No. 2025-1002 confirming the Solid Waste Annual Charges
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respectively for FY 2025-26 to be collected with the general taxes and direct
the Finance Manager to file with the County Auditor.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
There was no further discussion, and the public hearing was closed.
Action: 3. Public Hearing to Consider Adopting the Biennial Budget for Fiscal Years
2025-26 and 2026-27
Recommendation: That the Board of Directors adopt Resolution No. 2025-1003
adopting the Biennial Budget for Fiscal Years 2025-26 and 2026-27.
President Scheafer opened the public hearing.
Finance Manager, Kaitlin Tran, noted that, since the last budget
presentation, there have been no additional changes to the proposed
biennial budget.
Vice President Ooten inquired about the proposed budget allocation for the
asset management fund.
General Manager, Scott Carroll, confirmed that the fund has been
appropriately budgeted to cover District needs.
Motion: To adopt Resolution No. 2025-1003 adopting the Biennial Budget for
Fiscal Years 2025-26 and 2026-27.
Motion by Art Perry, second by Nicole Wiltshire.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
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There was no further discussion, and the public hearing was closed.
Action: 4. Public Hearing to Consider Adopting a Resolution Placing Liens on the
Fiscal Year 2025-26 Tax Roll
Recommendation: That the Board of Directors:
1. 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.
President Scheafer noted that this item has been pulled from the agenda.
Mr. Carroll shared that the District has received payment from the property
owner for past wastewater services and is no longer requesting to place a
lien on the property's tax roll.
There was no further discussion.
E. GENERAL MANAGER REPORTS
Action: 1. Consider Adopting the Fiscal Year 2025-30 Strategic Plan
Recommendation: That the Board of Directors adopt the Fiscal Year 2025-30
Strategic Plan.
Mr. Carroll provided report details and shared that staff, the Board, and the
Citizens Advisory Committee (CAC) have all contributed to the Fiscal Year
2025-30 Strategic Plan. He thanked District employee, Angela Fatino, for
designing the final document.
President Scheafer thanked staff for preparing the plan and thanked Mr.
Carroll for directing the process.
Vice President Ooten thanked staff to establishing due dates for each item
within the plan.
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Motion: To adopt the Fiscal Year 2025-30 Strategic Plan.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
There was no further discussion.
Action: 2. California Special Districts Association (CSDA) Board of Directors
Election Ballot — Term 2026-2028; Seat B — Southern Network
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.
Mr. Carroll shared the election details and candidates running for the CSDA
Board of Directors, Southern Network, Seat B. He noted that Don Bartz is the
incumbent.
President Scheafer expressed support for reelecting Don Bartz.
Motion: To direct the General Manager to cast a vote for Don Bartz for CSDA
Board of Directors Southern Section, Seat B.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
There was no further discussion.
Action, Receive and File: 3. Assessing Wastewater Charges for Properties on
Fairview Development Center
Recommendation: That the Board of Directors receive and file this report.
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Senior Accountant, Lieu Tran, provided report details.
President Scheafer inquired about the misclassification of the properties at
the Fairview Development Center.
Ms. Tran stated that some properties were not being assessed while others
were misclassified with the wrong number of units.
Discussion followed regarding the location of these properties and the
Fairview Development Center Master Plan.
There was no further discussion, and the report was received.
Action, Receive and File: 4. Receive and File Three -Cart System Commercial
Performance Metrics
Recommendation: That the Board of Directors receive and file this report.
Senior Management Analyst, Gina Terraneo, presented report details.
Discussion followed regarding the commercial's video completion rate
through Spectrum Reach.
President Scheafer commended staff for the commercial's performance.
Director Perry asked if the District will continue running the commercial.
Ms. Terraneo stated that staff has been discussing the next steps for
advertising the commercial with a limited budget.
Director Perry inquired about the next waste characterization study.
Senior Management Analyst, Marissa Pereyda, stated that the next studies
are scheduled for this week.
President Schefer stated that the commercial should help satisfy the
education component of Senate Bill 1383.
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Director Perry asked about the total cost of the commercial.
Ms. Terraneo stated that the total cost was about $30,000.
President Scheafer congratulated Finance Manager, Kaitlin Tran, on being
awarded Staff Person of the Year by CSDA.
There was no further discussion, and the report was received.
F. ENGINEER'S REPORTS
Action, Receive and File: 1. Receive and File Fiscal Year 2024-25 Capital
Improvement Project Budget Adjustments
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.
District Engineer, Mark Esquer, discussed the capital improvement project
(CIP) budget adjustments. He requested Board approval of the proposed
budget adjustments.
Motion: To approve the 24-25 FY Capital Outlay Budget Adjustments, as
detailed in the Financial Review, for a no -cost change to the FY CIP Budget.
Motion by Bob Ooten, second by Art Perry.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
There was no further discussion.
Action, Receive and File: 2. Receive and File the District Engineer's Monthly Report
and Capital Improvement Projects Status
Recommendation: The Board of Directors receive and file the Capital Improvement
Projects Status Report.
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Mr. Esquer shared updates on capital improvement projects.
There was no further discussion, and the report was received.
G. TREASURER'S REPORTS
Action: 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
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.
District Treasurer, Marc Davis, presented the item.
Motion: To adopt Resolution 2025-1005 approving the Statement of
Investment Policy and delegating the investment function to the District
Treasurer for fiscal year 2025-26.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries 4-0-0-1
Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire
No: None
Abstain: None
Not Present: Arlene Schafer
There was no further discussion.
H. ATTORNEYS REPORTS
Mr. Burns shared a recent Proposition 218 challenge to San Francisco's
sewer and storm water charges.
There was no further discussion.
I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is
required to be given by a Director for any meeting for which expense
reimbursement of any kind is provided. Note: For meetings for which the per diem
compensation is sought, the Operations Code provides that such compensation is
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authorized for each day's service rendered as a Director at the request of the Board
(not to exceed six days in one month), and certain meetings are specified as being
eligible as set forth in District Operations Code § 3.01.030. For meetings not so
listed, the Board must approve the service for it to be eligible for the per day
compensation.
1. Orange County Sanitation District (OC San) - (Vice President Ooten)
Vice President Ooten discussed OC San's Board meeting agenda item
regarding anaerobic digestion.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry)
Secretary Perry shared that SARFPA meets this week.
3.Independent Special Districts of Orange County (ISDOC) - (Vice Secretary
Schafer)
None.
4. California Special Districts Association (CSDA) - (Vice Secretary Schafer)
None.
S. Special District Risk Management Authority (SDRMA) - (President Scheafer)
President Scheafer stated SDRMA shared that their Chief Risk Officer will
serve as interim CEO. He added that SDRMA has a special meeting this week.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Director Wiltshire shared that she attended a Costa Mesa City Council
meeting which had a presentation on business improvement area
reauthorization and levy assessment.
There was no further discussion.
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T. OLD BUSINESS
None at this time.
K. NEW BUSINESS
None at this time.
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Discussion: 1. Oral Communications and Director Comments
Director Perry inquired about the District's solid waste charges compared to
other local agencies.
Mr. Carroll stated that solid waste charges will soon be impacted by the
County of Orange's landfill tipping fees.
Discussion followed regarding trash pickup issues on Placentia Avenue due
to the City of Costa Mesa's bike lane bollards.
Mr. Carroll shared that the City has agreed to meet with the District more
frequently to discuss public works and transportation projects that will
affect District operations.
President Scheafer wished everyone a happy Independence Day.
Vice President Ooten shared that he will be on vacation in July and will be
missing the next two Board meetings.
There was no further discussion.
0. CLOSING ITEMS
Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District
Board of Directors will be held on Monday, July 28, 2025.
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President Scheafer adjourned the meeting at 5:35 p.m.
C
Art Perry Mike Scheafer
Secretary President