2025_08_12_study_sessionTuesday, August 12, 2025
Board of Directors Study Session
Time: 9:00 a.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, Noelani Middenway 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
Michael Scheafer, President
Robert Ooten, Vice President
Arthur Perry, Secretary
Nicole Wiltshire, Director
Subject 1. 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 Aug 12, 2025 - Board of Directors Study Session
Access Public
Type Procedural
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/11
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 Aug 12, 2025 - Board of Directors Study Session
Access Public
Type Procedural
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/11
C. ITEMS OF STUDY
Oral Report
Introduction of New Employees:
Nathalia Cervantes, Administrative Assistant I
Christian Cantero, Electrical Instrumentation Technician
Subject 1. Introduction of New Employees, Nathalia Cervantes and Christian Cantero -
Oral Report
Meeting Aug 12, 2025 - Board of Directors Study Session
Access Public
Type Presentation, Receive and File
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/11
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: David Griffin, Code Enforcement Officer
Date: August 12, 2025
Subject: Receive and File July 2025 Code Enforcement Officer Report
Summary
This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti on trash carts, and trash
container enforcement. For the month of July 2025, the CMSD Code Enforcement Officer (CEO) focused his efforts on patrols in
various parts of the community. The goal is to identify and deter instances of scavenging and residential trash carts left within the public
view.
Recommendation
That the Board of Directors receive and file this report.
Analysis
In the month of July, Officer Griffin observed 4 individuals searching in trash carts on Knox, Ogle, Pomona, and Morristown Ln. All
individuals were advised of the District's scavenging law and given verbal warnings before they went on their way.
In the month of July, Officer Griffin issued 142 first warnings notices (yellow tag) to residential properties for having their trash carts in
public view.
Officer Griffin did not observe graffiti on trash carts in the month of July.
To address resident concerns, Officer Griffin is patrolling streets by 6:30 a.m.
Legal Review
Not applicable.
Environmental Review
Code enforcement activities and reporting are not a disturbance of the environment similar to grading or construction and do not
constitute a project under CEQA or the District’s CEQA Guidelines.
Financial Review
Officer Griffins' activities are funded 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 August 12, 2025, Board of Directors Study
Session meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
Code Enforcement Officer Report July 2025.pdf (516 KB)
Subject 2. Receive and File July 2025 Code Enforcement Officer Report
Meeting Aug 12, 2025 - Board of Directors Study Session
Access Public
Type Receive and File
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#4/11
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: August 12, 2025
Subject: Overview of the Asset Replacement Fund
Summary
The Costa Mesa Sanitary District (CMSD) established its Asset Replacement Fund (ARF) in Fiscal Year 2010-2011 as a proactive
financial planning tool. The fund was created to ensure the District has dedicated resources available for the timely replacement of
major capital infrastructure and equipment.
Over time, through the budgetary process, CMSD has made consistent contributions to this fund to promote fiscal responsibility, reduce
reliance on debt financing, and ensure operational continuity. The ARF also receives quarterly interest earned from investments. The
investment earned revenue is distributed 10% to the Solid Waste Fund and 90% to the Wastewater Fund.
Recommendation
Receive and file the staff report on the District’s Asset Replacement Fund.
Analysis
The Asset Replacement Fund is a designated reserve fund established to accumulate and hold financial resources for the scheduled
replacement or major rehabilitation of the District’s capital assets. These assets typically have useful lives ranging from 5 to 20 years.
Rather than funding replacements from operating revenues or incurring debt at the time of failure, the Asset Replacement Fund allows
CMSD to plan ahead and allocate the necessary resources over time. When new vehicles are purchased, operating expenses for
repairs will decrease, while contributions to the ARF will increase to support future replacements.
HOW THE DISTRICT DETERMINES FUNDING LEVELS
Funding for the ARF is guided by a long-term asset management approach that includes the following key steps:
1. Asset Inventory and Valuation
CMSD maintains a comprehensive database of its capital assets, including age, condition, and estimated replacement costs.
Assets include portable generators, bypass pumps and hoses, vehicles, CCTV equipment, administrative technology (servers,
Springbrook Software, Boardroom AV System)
2. Useful Life and Replacement Schedule
Each asset is assigned a useful life based on the District’s capital asset useful life policy (Operation Codes Section 4.03.090,
Capital Assets) and historical experience.
Equipment 5-20 years
Computer 5-20 years
Vehicles 10-12 years or 105,000 to 125,000 miles, depending on the vehicle
Portable Pumps 10 years
Portable Generators 20 years
Subject 3. Overview of the Asset Replacement Fund
Meeting Aug 12, 2025 - Board of Directors Study Session
Access Public
Type Discussion, Receive and File
Goals 7.0 Finance
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#5/11
Immobile Pumps (Godwins) 20 years
3. Annual Contribution Calculation
The District uses a straight-line depreciation method to estimate the annual set-aside needed for each asset. Example: If a
pump worth $300,000 has a 20-year life, CMSD sets aside $15,000 per year for its eventual replacement.
4. Adjustment for Inflation and Market Costs
Replacement cost estimates for inflation, market changes, and technology upgrades. At the start of the ARF, the District applied
a 25% factor to account for inflation.
5. Review During Budget Process
The ARF is reviewed annually during the budget development and capital improvement planning process. Contributions may be
adjusted based on changes in asset conditions, priorities, or external cost pressures.
STATUS OF THE ASSET REPLACEMENT FUND
Staff are currently in the process of updating the District’s capital asset listing for the fiscal year ending June 30, 2025. The attached
Capital Asset Listing (Attachment A) reflects data as of December 2024. The District currently has a total of 69 assets for which funds
are either actively being set aside or have already been fully reserved.
As of June 30, 2025, the ARF balance is approximately $3,283,000, with $199,600 allocated to the Solid Waste Fund and $3,083,400 to
the Wastewater Fund (Attachment B). This balance represents accumulated reserves designated for the replacement of identified
capital assets.
Following a comprehensive review, staff determined that both the Solid Waste Fund and the Wastewater Fund have excess reserves
relative to their current asset replacement needs. The Solid Waste Fund only requires reserves sufficient to replace the Code
Enforcement Officer’s vehicle and select administrative information technology equipment. Based on the updated Capital Asset Listing
(Attachment A), the total ARF requirement is approximately $3,036,000—of which $79,700 is allocated to the Solid Waste Fund and
$2,956,300 to the Wastewater Fund.
This results in excess reserves of approximately $119,900 in the Solid Waste Fund and $127,100 in the Wastewater Fund. The surplus
in the Wastewater Fund is primarily due to the cancellation of a planned fund transfer for the purchase of the 2024 Kenworth Vactor
Combo Sewer Cleaner (Unit 2010) on August 26, 2024. The District was able to cover the cost of Unit 2010 using unspent funds from
the operating budget at the time of delivery. While the Board may choose to reallocate these excess reserves to the fund balance, staff
recommends retaining them in the ARF to address potential future asset replacement needs or unexpected expenditures.
Finally, it is important to note that as the District continues to acquire additional capital assets, ARF contributions will need to be
adjusted accordingly to ensure adequate funding for future replacements.
Legal Review
Not applicable.
Environmental Review
A Performance Measurement Program 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 no immediate fiscal impact associated with this report. The District’s financial model already incorporates annual ARF
contributions as part of its adopted budget and rate structure. Any proposed changes to ARF contribution levels will be brought to the
Board as part of future budget cycles.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the August 12, 2025 Board of Directors Study
Session at District Headquarters and on District website at www.cmsdca.gov .
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
Attachment A - Asset Replacement Fund- Asset Listing.pdf (105 KB)
Attachment B Asset Replacement Fund Balance Sheet 06-30-2025.pdf (1,066 KB)
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#6/11
Attachment B-01 Asset Replacement Fund.pdf (634 KB)
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#7/11
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Marissa Pereyda
Date: August 12, 2025
Subject: Recycle Coach Recycling Education
Summary
With the District's Three-Cart System fully implemented, the District desires to simplify and encourage proper source separation and
reduce contamination. Recycle Coach offers a comprehensive “What Goes Where” search tool, including local disposal information and
collection requirements for common and uncommon items, collection reminders, and additional educational resources and tools. Ryan
Buhay, Recycle Coach's Head of Sales, will provide a demonstration of the Recycle Coach platform and features.
Recommendation
That the Board of Directors receive and file this report.
Analysis
Recycle Coach is a mobile app and online platform designed to help solid waste customers manage their waste and recycling by
providing personalized information about disposal and recycling guidelines (What Goes Where), collection schedules (My Schedule),
and additional educational resources (Discovery Zone). District customers will be able to access these features, available in English
and Spanish, via the District's website and the Recycle Coach mobile app.
What Goes Where
The "What Goes Where" guide is a comprehensive search tool that informs District customers how to property dispose of organics,
recyclable items, landfill waste, household hazardous waste, and bulky items. The tool will be configured to the District's disposal
guidelines, includes 15,000 search terms based on 400 parent materials, and can be updated to include new items. An example of the
Recycle Coach "What Goes Where" tool is available on the City of Glendale's website.
My Schedule
District customers can input their address to receive their collection schedule and set up collection day reminders. Reminder emails,
texts and push notifications can be configured to include additional recycling tips or messages.
Discovery Zone
Discovery Zone offers additional educational content, including videos, quizzes, kids activity packets, and blogs to help customers learn
about proper recycling practices and reduce contamination.
The Recycle Coach platform will also provide District staff with a Client Portal with analytics and reporting, such as most commonly
searched items and quiz responses, that can inform additional outreach and education efforts.
An overview of Recycle Coach's full Essentials Package, including What Goes Where, My Schedule, and Discovery Zone is provided in
the attached presentation. Some Essentials Package functions and premium add-on features are not applicable and/or were not
selected as part of the District's package. Ryan Buhay, Recycle Coach's Head of Sales, will provide a demonstration of the Recycle
Coach platform and the features the District can utilize to share recycling education with District customers.
Legal Review
District Legal Counsel will review the District's agreement with Recycle Coach prior to implementation.
Environmental Review
Subject 4. Recycle Coach Recycling Education
Meeting Aug 12, 2025 - Board of Directors Study Session
Access Public
Type Discussion, Receive and File
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#8/11
Review of recycling education software 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
The District's Fiscal Year 2025-26 and 2026-27 Budgets include funds for Recycle Coach's annual costs. Recycle Coach's pricing is
based on a three-year contract, with the annual cost for Recycle Coach included below.
FY 2025-26: $20,660
FY 2026-27: $21,279
FY 2027-28: $21,917
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the August 12, 2025, Board of Directors Study
Session 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
Recycle Coach Overview.pdf (10,080 KB)
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#9/11
D. CLOSING ITEMS
Subject 1. Oral Communications and Director Comments
Meeting Aug 12, 2025 - Board of Directors Study Session
Access Public
Type
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#10/11
D. CLOSING ITEMS
The next Study Session of the Costa Mesa Sanitary District Board of Directors will be held at 9:00 a.m. on Tuesday, September 9, 2025
in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.
Subject 2. Adjournment
Meeting Aug 12, 2025 - Board of Directors Study Session
Access Public
Type Procedural
8/7/25, 12:31 PM BoardDocs® Pro
https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#11/11