Minutes - Board - 2025-07-28COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
JULY 28, 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)
Others present
Cindy Brenneman, Citizens Advisory Committee Member and District resident
Michael Tou, Citizens Advisory Committee Vice Chair and District resident
Shayanne Wright, Citizens Advisory Committee Member and District resident
Sue Lester, Citizens Advisory Committee Chair and District resident
Meeting called to order at 4:30 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order - President Scheafer
President Scheafer called the meeting to order at 4:30 P.M.
Procedural: 2. Pledge of Allegiance - President Scheafer
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President Scheafer led the Pledge of Allegiance.
Procedural: 3. Invocation - Vice President Ooten
Vice President Ooten led the Invocation.
Procedural: 4. Roll Call - (If absences occur, consider whether to deem those
absences excused based on facts presented for the absence - such determination
shall be the permission required by law.)
District Clerk & Public Information Officer, Noelani Middenway, conducted
roll call and noted that President Scheafer, Vice President Ooten, Secretary
Perry, and Director Wiltshire were present while Vice Secretary Schafer was
not present.
President Scheafer stated that Vice Secretary Schafer's absence is excused.
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.
Citizens Advisory Committee Chair and District resident, Sue Lester, thanked
Vice Secretary Schafer for her 50 years of public service to the Costa Mesa
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community and to the District. She wished her well and expressed
appreciation for her contributions.
President Scheafer reiterated Ms. Lester's comments and noted that Vice
Secretary Schafer will be sorely missed by the Board. Hearing no additional
comments, he closed public comments.
C. CONSENT CALENDAR
Action (Consent): 1. Approve the Board of Directors Study Session Minutes of June
1022025
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 2. Approve the Board of Directors Regular Minutes of June 23,
2025
Recommendation: That the Board of Directors approve the meeting minutes as
presented.
Action (Consent): 3. Adopt Warrant Resolution No. CMSD 2026-01 Approving
District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD
2026-01 approving District warrants for the month of June in the amount of
$1,2551147.07.
Action (Consent): 4. Approve Payroll Transparency Disclosure for June 2025
Recommendation: That the Board of Directors approve and file the report.
Action (Consent): 5. Approve the Directors' Compensation and Reimbursement of
Expenses
Recommendation: That the Board of Directors approve the compensation and
reimbursement of expenses as presented.
Action (Consent): 6. Approve the Preparation of a Warrant to CR Transfer for
$269,941.73 in the July 2025 Warrant Register for January, February, May, and June
2025 Recycling and Disposal Services
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Recommendation: That the Board of Directors approve the preparation of a
warrant to CR Transfer in the amount of $269,941.73 in the July 2025 warrant
register for January, February, May, and June recycling and disposal services.
Action (Consent): 7. Approve the Occupancy Count of 23,216 and Direct Staff to
Prepare a Warrant to CR&R Environmental Services for $395,895.48 in the July
2025 Warrant Register for June 2025 Solid Waste Collection Services
Recommendation: That the Board of Directors:
1. Approve the occupancy count of 23,216; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for
$395,895.48 in the July 2025 warrant register for June 2025 solid waste
collection services.
Action (Consent): 8. Receive and File June 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 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 discussion.
D. PUBLIC HEARINGS
None.
E. GENERAL MANAGER REPORTS
Action, Receive and File: 1. Receive and File 2025 Performance Measurement
Report — 2nd Quarter (January — June) Calendar Year
Recommendation: That the Board of Directors receives and files this report.
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General Manager, Scott Carroll, presented report details.
President Scheafer inquired about any outstanding performance
measurements in the 2nd Quarter.
Mr. Carroll shared that the District's goal to complete the permit review
process is nine days and staff is doing so within an average of 5 days. He also
shared that the District's goal to respond to public records request is 10 days
and staff is doing so in less than four days. He discussed sanitary sewer spills
and hotspot cleanings due to an accumulation of grease in the sewer system.
Secretary Perry inquired about specific grease hotspots.
Mr. Carroll stated that the main hotspots are located at The Camp, South
Coast Plaza, and Triangle Square.
Discussion followed regarding CR&R's response to missed trash collections
and trash cart replacement requests.
Vice President Ooten commented on the format of the report.
There was no further discussion, and the report was received.
Action: 2. Consider Approving First and Second Amendments to Agreement with
Acorn Technology Services.
Recommendation: That the Board of Directors approve the First and Second
Amendments to the District's existing agreement with Acorn Technology Services
for comprehensive information technology management services.
Mr. Carroll provided report details.
President Scheafer expressed support for Acorn Technology Services.
Motion: To approve the First and Second Amendments to the District's
existing agreement with Acorn Technology Services for comprehensive
information technology management services.
Motion by Art Perry, second by Nicole Wiltshire.
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Ms. Lester inquired about the next steps if the amendments are not
approved.
District Counsel, Alan Burns, stated that the District would disavow the
contract and explore options for a new contract. He noted that the contractor
is responsible for knowing the limits of the District's authority.
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
Secretary Perry asked if the General Manager's purchasing authority should
be adjusted.
Mr. Carroll stated that this issue has been previously discussed, and the
public did not agree with increasing the General Manager's purchasing
authority. He noted that he can research the recommended threshold by the
Uniform Public Construction Cost Accounting Act (CUPCCAA) and provide an
update to the Board.
There was no further discussion.
F. ENGINEER'S REPORTS
Action, Receive and File:1. Receive and File the District Engineer's Monthly Report
and Capital Improvement Projects Status
Recommendation: The Board of Directors receive and file the Capital Improvement
Projects Status Report.
District Engineer, Mark Esquer, indicated support for the Board discussing
an adjustment to the General Manager's approval threshold. He shared
updates on capital improvement projects.
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Discussion followed regarding the property damage to the Elden Pump
Station and guardrail.
There was no further discussion, and the report was received.
Action: 2. Project 535 Irvine/Harbor PS Electrical Improvements — Adopt CEQA
Determination and Award a Contract
Recommendation: The Board of Directors:
1. Adopt Project #535 Irvine/Harbor PS Electrical Improvements as
Categorically Exempt per the California Environmental Quality Act (CEQA)
Section 15302, Class 2; and
2. Award a contract to the lowest responsive and responsible bidder, Amtek
Construction, Inc., in the amount of $133,333.
Mr. Esquer presented the item.
Motion: To adopt Project 535 Irvine/Harbor PS Electrical Improvements
Project as Categorically Exempt per the California Environmental Quality
Act (CEQA) Section 15302, Class 2.
Motion by Art Perry, second by Mike Scheafer.
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 award a contract to the lowest responsive and responsible
bidder, Amtek Construction, Inc., in the amount of $133,333.
Motion by Mike Scheafer, 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
President Scheafer commended Mr. Esquer for his recent presentation at the
City/Districts Liaison Committee meeting.
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There was no further discussion.
G. TREASURER'S REPORTS
Action: 1. Investment Report for the Month of June 2025
Recommendation: That the Board of Directors approve the Investment Report for
the month of June 2025.
District Treasurer, Marc Davis, presented a quarterly review of the District's
investments and noted the rise in inflation over the last three months.
Vice President Ooten discussed the District's Asset Replacement Fund.
Motion: To approve the Investment Report for the month of June 2025.
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 further discussion.
H. ATTORNEY'S REPORTS
Action: 1. Options for Filling Board of Director, Division 5 Vacancy
Recommendation: That the Board of Directors implement one of the following
procedures as per California Government Code Section 1780:
a. Fill the vacancy by appointment; or
b. Call for a special election
District Counsel, Alan Burns, presented report details. He stated that Vice
Secretary Schafer has given notice that she is retiring from the Board
effective August 1, 2025. He stated that the Board can appoint a member of
the public or hold a special election to fulfill the Board vacancy. He
confirmed that the Board has 60 days from August 1, 2025 to make an
appointment. He noted that if an appointment is not made within 60 days,
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then the Board of Supervisors will make an appointment for the District. He
added that the other available option is to hold a stand-alone election at a
cost of about $500,000.
President Scheafer inquired about keeping the Board seat vacant until its
term has expired.
Mr. Burns confirmed that, since the term does not expire within 60 days, the
Board must fulfill the vacancy.
Mr. Carroll stated that the District must provide 15 days for candidates to
apply for appointment.
Secretary Perry recommended notifying applicants as soon as tomorrow
and setting up candidate interviews within three weeks.
Mr. Burns clarified that candidates have the right to listen to all interviews
since it is a public meeting.
Discussion followed regarding the timeline for interviews and application
guidelines.
Secretary Perry recommended holding a special meeting for candidate
interviews in the first week of September.
The Board agreed to hold a special meeting on Tuesday, September 2nd at
4:30 p.m.
Discussion followed on the District's procedures for notifying potential
candidates.
Ms. Middenway stated that the deadline for applications will be August 28,
2025.
Motion: To fill the vacancy by appointment as per California Government
Code Section 1780, and to begin advertising for the vacancy on July 29, set a
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submission deadline of August 28, and hold candidate interviews on
September 2 at 4:30 p.m.
Motion by Art Perry, second by Mike Scheafer.
Mr. Burns noted that the Board does not need to formally accept Vice
Secretary Schafer's resignation.
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.
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 days 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)
Secretary Perry attended OC San's Board meeting on Vice President Ooten's
behalf. He reported on OC Sans Citizens Academy, staff recognition, and
their rehabilitation project of the gravity sewer line along the 405-freeway
in Costa Mesa.
2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry)
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3.Independent Special Districts of Orange County (ISDOC) - (Vice Secretary
Schafer)
President Scheafer stated that ISDOC is not having a quarterly meeting this
month and will be meeting in October.
4. California Special Districts Association (CSDA) - (Vice Secretary Schafer)
President Scheafer discussed CSDA's upcoming conference. He confirmed
that the August Board meeting will take place on August 18, 2025.
5. Special District Risk Management Authority (SDRMA) - (President Scheafer)
President Scheafer stated SDRMA has a Board meeting next week. He added
that he will be virtually attending a special meeting tomorrow for the Special
Districts Reinsurance Group.
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
President Scheafer shared that he attended a Water Advisory Committee of
Orange County (WACO) meeting.
Director Wiltshire reported on the City/Districts Liaison Committee meeting
and Costa Mesa City Council meeting.
There was no further discussion.
T. OLD BUSINESS
None at this time.
K. NEW BUSINESS
None at this time.
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
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Discussion: 1. Oral Communications and Director Comments
President Scheafer shared appreciation for Vice Secretary Schafer's
contributions to the Costa Mesa community and Chamber of Commerce.
Vice President Ooten commented on Vice Secretary Schafer's
recommendations.
President Scheafer also noted that Vice Secretary Schafer was a big
ambassador for CSDA.
There was no further discussion.
O. CLOSING ITEMS
Procedural: 1. Adjourn — The next meeting of the Costa Mesa Sanitary District
Board of Directors will be held on Monday, August 18, 2025.
President Scheafer adjourned the meeting at 5:29 p.m.
Art Perry M' e Scheafer
Secretary President