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Minutes - Board - 2025-09-02 ?SSP S4NITgRyO ® ttwe COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING SEPTEMBER 2, 2025 Members present Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk/Public Information Officer), Gina Terraneo (Senior Management Analyst), Marissa Pereyda (Senior Management Analyst), Alan Burns (District Counsel) Others present David Martinez, District resident Shayanne Wright, District resident and Citizens Advisory Committee Member Steve Friedman, District resident Sue Lester, District resident and Citizens Advisory Committee Chair 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. 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 and Public Information Officer, Noelani Middenway, noted that President Scheafer, Vice President Ooten, Secretary Perry, and Director Wiltshire were present. B. PUBLIC COMMENTS COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 Procedural: 1. Public Comments President Scheafer opened public comments. District resident and Citizens Advisory Committee (CAC) Chair, Sue Lester, thanked District staff and the Board and congratulated the District for winning three awards at the California Special Districts Association (CSDA) conference. President Scheafer shared more details regarding the District's CSDA awards. Ms. Middenway noted that District staff received written public comments, which have been made available to the Board and public. Hearing no additional comments, President Scheafer closed public comments. C. ITEMS FOR CONSIDERATION Procedural: 1. Candidate Interviews President Scheafer introduced the item and the candidates. He stated that each candidate will be interviewed individually. He randomly picked the order of interviews with Sue Lester being the first candidate, Shayanne Wright as the second candidate, and Steve Friedman as the third candidate. The Board interviewed Ms. Lester. President Scheafer asked Ms. Lester why she wants to be on the Board. Ms. Lester shared that she has served on the CAC in various capacities for the last seven years. She stated that the District is responsible for multiple critical parts related to the health and welfare of the community. She added that from her seven years on the CAC, she has learned the importance of being educated on the procedures and activities of the District. She stated that she is ready to take the next step and contribute at a higher level. Vice President Ooten asked Ms. Lester about her personal objective and goals for serving on the Board and what she hopes to contribute. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 Ms. Lester discussed new technologies and methods for increasing efficiency and cutting costs. She stated that she would like to participate in keeping rates as fair and low as possible. She expressed concerns about Orange County landfill capacity and its financial implications. She stated that her work experience in human resources, loss prevention, and operations make her a good candidate that will contribute in many ways to the Board. She added that she has nothing but the best intentions for the District and believes that she will bring value to the Board. Director Wiltshire asked Ms. Lester about good governance. Ms. Lester stated that good governance means representing the people that you are elected or appointed to represent while being an advocate for the organization that you are governing. She added that it also includes setting a reasonable mission, vision, and core values, and to be an advocate for the public as it relates to setting and following the law and policy and upholding fiduciary responsibilities. President Scheafer asked what should happen to the Board if they violate good governance. Ms. Lester stated that the District and the ratepayers will suffer. She added that if a Board member violates the law, then they should be punished. Secretary Perry asked Ms. Lester about the most important qualities and values that a Board member should possess. Ms. Lester stated that Board members should have integrity, be fair, and study, learn and ask questions to make the best decision for the public. She added that Board members also need to be conscientious of an organization's budget and trust staff. Director Wiltshire inquired about Ms. Lester's time commitment to the Board and expectations. Ms. Lester stated that she knows the Board's regular meeting schedule and that a Board member needs to be available for unexpected meetings. She noted that she has a flexible schedule and that her personal life will not infringe upon her duties. President Scheafer asked about the most significant challenges, threats, and opportunities facing the District. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 Ms. Lester stated that the District should have a strong plan for infrastructure and emergencies with reserves to cover potential threats. She added that District challenges include keeping rates low while being able to provide the necessary services and functions. She expressed support for pursuing tiered rates to help inspire customers to limit waste. She discussed District opportunities related to new technologies, efficiency, new programs, and ideas related to extending the life of infrastructure and assets. President Scheafer asked about Ms. Lester's experience with Living Desert. Ms. Lester stated that she supports Living Desert because of her love for animals and Palm Desert. She asked the Board why only three of the five candidates are being interviewed. President Scheafer stated that the other two candidates do not live in division 5. The Board interviewed Ms. Wright. President Scheafer asked Ms. Wright why she wants to be on the Board. Ms. Wright discussed her work and public service experience. She shared that she currently serves on the City of Costa Mesa's Parks and Community Services Commission. She shared her experience running for Mesa Water District's Board. Vice President Ooten asked Ms. Wright about her personal objectives and goals for serving on the Board and what she hopes to contribute. Ms. Wright stated that she will bring a new perspective as she is usually the only member of the public in her demographic. She added that it is important to have young people who have technological experience and people with families and small businesses. She noted that she is excited to bring her operational and project management experience to the Board and shared that she is good at cross- functional collaboration. She shared that her unique background will apply very efficiently to District operations and that she is a fast learner and inquisitive. Director Wiltshire asked Ms. Wright about good governance. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 Ms. Wright stated that good governance corresponds to integrity and transparency. She shared that she respects elected officials that work hard to understand projects and issues. She noted that small governing boards are often overlooked by the public. She stated that, in addition to having ethical and moral values, she would commit herself to bringing her best work to the organization. She added that she has watched board members get comfortable and passive during their terms. Secretary Perry asked Ms. Wright about the most important qualities and values that a Board member should possess. Ms. Wright stated that a Board member should be professionally qualified. She added that a good Board member possesses the qualities to campaign, interact with people, translate District operations to get the public more involved, and trust staff with their recommendations and research. She noted that community service and communication skills are necessary in addition to handling large documents like capital improvement projects, master plans, and budget documents. Director Wiltshire inquired about Ms. Wright's time commitment to the Board and expectations. Ms. Wright stated that she knows the Board's regular meeting schedule and shared that she has a flexible work schedule as a business owner. She shared that she would treat this appointment as a part-time job and that she is ready to commit a significant amount of time to serving on the Board. She noted that she possesses a high level of efficiency. Discussion followed regarding Ms. Wright's experience at Azusa Pacific University. President Scheafer asked about the most significant threats and opportunities facing the District. Ms. Wright discussed improving customer support, creating a better system for asset management and permitting, and collaborating with the City of Costa Mesa's Building Department, Planning Commission, and Mesa Water District on development and housing. She stated that the biggest threat to local government is apathy and lack of public involvement. She noted that she is concerned about Mesa Water District's consolidation efforts. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 Vice President Ooten asked Ms. Wright about technological threats. Ms. Wright discussed cybersecurity threats, waste, lack of technology, and not using the best tools for project management. She expressed support for the District's website and customer service portal. She noted that developments in artificial intelligence for government are premature. She shared her background in technology and software development. Secretary Perry asked Ms. Wright if she is currently serving on the City's Parks and Community Services Commission. Ms. Wright confirmed that she is the vice chair of that commission. She noted that she can meet with the City Attorney to determine if there is a conflict in serving on the commission and the District's Board. District Counsel, Alan Burns, stated that he would have to research if those two offices are incompatible. He added that if the candidate accepts the second office, then they must vacate the first office if it is found to be in conflict. The Board stated that public comments will be accepted after candidate interviews are completed. The Board adjourned for a five-minute break at 5:19 p.m. and reconvened at 5:24 p.m. The Board interviewed Mr. Friedman. President Scheafer asked Mr. Friedman why he wants to be on the Board. Mr. Friedman shared his background in engineering and consulting. He stated that he always wanted to be an advocate for the public and to help guide a public entity. Vice President Ooten asked Mr. Friedman about his personal objectives and goals for serving on the Board and what he hopes to contribute. Mr. Friedman stated that he wants to help protect the environment and represent his fellow neighbors and customers. He noted that the District does a good job of being invisible by making sure the COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 toilets flush and trash is picked up. He added that there will be hard decisions that need to be made, and that he would like to help figure those out. Director Wiltshire asked Mr. Friedman about good governance. Mr. Friedman stated that it requires being impartial and the ability to set personal objectives aside and think about how your decisions impact the community. Secretary Perry asked Mr. Friedman about the most important qualities and values that a Board member should possess. Mr. Friedman stated that a Board member should be fair and open- minded and should listen and trust their staff. He added that it requires being involved and informed about the industry to make informed decisions. Director Wiltshire inquired about Mr. Friedman's time commitment to the Board and expectations. Mr. Friedman shared that he is active in the industry and attends multiple water and wastewater meetings. He stated that he is familiar with the regular Board schedule and is available as needed. Discussion followed regarding Mr. Friedman's experience in the wastewater industry and business associations. President Scheafer asked about the most significant threats and opportunities facing the District. Mr. Friedman stated that there may be opportunities to get beneficial use of the wastewater that is sent to the Orange County Sanitation District (0C San) for treatment. He shared that he does not have a great understanding of how the trash industry works but is concerned about the threat of limited landfill capacity. He discussed the impact of rising costs on sewer and trash rates. He stated that his goal would be to communicate to customers that the organization is only charging the cost of providing services. President Scheafer asked if Mr. Freidman anticipates running for reelection next year, if he is appointed. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 Mr. Friedman confirmed that he would seek another term for division 5. Discussion: 2. Discussion President Scheafer thanked all candidates for their interest and opened public comments. District resident, David Martinez, shared that he is a resident of division 5 and personally attested for Shayanne Wright based on her public service experience. Hearing no additional comments, President Scheafer closed public comments. Director Wiltshire nominated Shayanne Wright and stated that she has demonstrated tremendous capacity for leadership in multiple roles. She added that her specialized experience would benefit the Board. She stated that, based on her interview, she has a specific vision for the City and is not afraid to challenge leadership and ideas. Secretary Perry seconded Director Wiltshire's motion to nominate Shayanne Wright. President Scheafer made a substitute motion to nominate Sue Lester. He stated that all three candidates are extremely qualified and demonstrated a strong commitment to the Board. He acknowledged Ms. Lester's dedication to the District. His motion failed to receive a second. Action: 3. Appointment of Board of Directors Seat for Voting Division 5 for the term expiring December 2026 Motion: That the Board of Directors appoint Shayanne Wright to fill the Board of Directors vacancy representing Voting Division 5 for the term expiring December 2026. Motion by Nicole Wiltshire, second by Art Perry. Final Resolution: Motion Carries 4-0 Aye: Art Perry, Bob Ooten, Mike Scheafer, Nicole Wiltshire No: None Abstain: None Not Present: None President Scheafer congratulated Ms. Wright on her appointment. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 2, 2025 D. CLOSING ITEMS Procedural: 1. Oral Communications and Director Comments President Sheafer asked when Ms. Wright will be sworn into office. Ms. Middenway stated that she will be sworn in at the next Study Session on Tuesday, September 9. President Scheafer stated that the Study Session starts at 9:00 a.m. Secretary Perry noted that he is unable to attend the September Study Session. There was no further discussion. Procedural: 2. Adjournment President Scheafer adjourned the meeting at 5:42 P.M.PaTh AI Art Perry Mike Scheafer Secretary President