Minutes - CAC - 2025-03-12COSTA MESA SANITARY DISTRICT
MINUTES OF THE CITIZENS ADVISORY COMMITTEE MEETING
MARCH 12, 2025
CAC Members present
Jeff Arbour, Cindy Brenneman, Xerxez Calilung, Rosemarie Chora, Paul
Lancaster, Sue Lester, Michael Tou
CAC Members absent
Dean Fisher, Dickie Fernandez, Ben Glassman, Craig Holmes
Board Members present
Michael Scheafer, Arlene Schafer
Staff present
Scott Carroll (General Manager), Gina Terraneo (Senior Management Analyst),
Alan Burns (District Counsel), Mark Esquer (District Engineer), Marissa Pereyda
(Senior Management Analyst), Angela Colunga (Management Analyst I)
Others present
Anthony Elowsky, RDN
Meeting called to order at 6:00 P.M.
A. OPENING ITEMS
Procedural: 1. Call to Order
Citizens Advisory Committee (CAC) Chair Lester called the meeting to order
at 6:00 p.m.
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Procedural: 2. Roll Call
Senior Management Analyst, Gina Terraneo, conducted roll call. She noted
that CAC Members Arbour, Brenneman, Calilung, Chora, Lester, Lancaster,
and Tou were present, while CAC Member Fisher, Fernandez, Glassman, and
Holmes were not present.
Procedural: 3. Public Comments - Speakers will be limited to three minutes. The
three minutes per speaker time allotted may be extended for good cause by a
majority vote of the committee.
None.
B. ITEMS
Action:1. Approve the Citizens Advisory Committee Meeting Minutes of November
13, 2024
Recommendation: That the Citizens Advisory Committee approve the meeting
minutes as presented.
CAC Chair Lester introduced the item.
Motion: To approve the meeting minutes as presented.
Motion by Cindy Brenneman, second by Michael Tou.
Final Resolution: Motion carries 7-0-4
Ayes: Jeff Arbour, Cindy Brenneman, Xerxez Calilung, Rosemarie Chora,
Paul Lancaster, Sue Lester, Michael Tou
No: None
Not Present: Dean Fisher, Dickie Fernandez, Ben Glassman, Craig Holmes
There was no further discussion.
Action, Receive and File: 2. Receive and File the 2025 Christmas Tree Collection
Program
Recommendation: That the Citizens Advisory Committee receives and files this
report.
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Senior Management Analyst, Marissa Pereyda, presented report details. She
recognized the District's Solid Waste Intern, Stephanie Tsai, for her
reporting. She discussed Christmas tree tonnage and program complaints.
She stated that District staff recommends hiring a third -party contractor to
address missed Christmas trees by CR&R.
Discussion followed regarding illegally dumped Christmas trees and hiring
a third -party contractor to assist with the program.
President Scheafer shared that CR&R will be tagging Christmas trees that are
not in compliance with the program's guidelines next year.
CAC Member Chora stated that there were many trees that followed the
program's guidelines that were missed by CR&R.
Discussion followed regarding program outreach efforts.
There was no further discussion, and the report was received.
Action 3. Review AB 2257: Optional Process for Updating Water and Wastewater
Rate Setting Procedures
Recommendation: That the Citizens Advisory Committee recommend the Board of
Directors considers updating CMSD's rate setting procedures to limit litigated
challenges.
General Manager, Scott Carroll, introduced the item.
District Counsel, Alan Burns, presented report details. He discussed the
existing substantive and procedural requirements under Proposition 218.
He provided information regarding the Plantier v. Ramona Municipal Water
Districtcase, which is considered the catalyst for Assembly Bill (AB) 2257. He
explained the objection and protest hearing rules under AB 2257. He
discussed Board action after a protest hearing and the contents of the
administrative record. He shared the pros and cons of implementing AB
2257's procedures.
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CAC Member Arbour expressed support for implementing AB 2257s
optional procedures.
Discussion followed regarding adopting AB 2257 for certain rate increases.
CAC Chair Lester stated that implementing these new procedures could help
protect the District from future litigation.
Mr. Burns stated that he is not aware of any special districts in California
that have utilized the procedures under AB 2257. He noted that the law went
into effect on January 1, 2025.
Discussion followed regarding details of the Plantier v. Ramona Municipal
Water District case and the financial impacts of AB 2257.
CAC Vice Chair Tou recommended reviewing the procedures of AB 2257
when there is a change in assessments.
CAC Member Chora stated that these procedures may reduce District staff s
flexibility due to the increase in regulations. She recommended reviewing
how other special districts implement AB 2257. She noted that this law
applies in instances where assessments procedures are being changed.
Mr. Burns shared that, every year, the District issues a published notice to
all property owners to challenge their property's assessment.
Motion: To recommend that staff bring back more information at the
September 10, 2025 meeting, including the costs of conducting town hall
meetings and sending out any required mailings.
Motion by Michael Tou, second by Cindy Brenneman.
Final Resolution: Motion carries 7-0-4
Ayes: Cindy Brenneman, Xerxez Calilung, Rosemarie Chora, Paul Lancaster,
Sue Lester, Michael Tou, Jeff Arbour
No: None
Not Present: Dickie Fernandez, Ben Glassman, Craig Holmes, Dean Fisher
There was no further discussion.
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Action 4. Review Sewer Building Permit and Fixture Fee Preliminary Study
Information
Recommendation: That the Citizens Advisory Committee provides feedback.
District Engineer, Mark Esquer, introduced the item and Anthony Elowsky
of Robert D. Niehaus (RDN).
Mr. Elowsky provided a presentation on the proposed sewer building permit
and fixture fees. He discussed the study's overview, primary objectives, and
proposed methodology. He shared the proposed permit fees and a five-year
rate schedule, which includes a 3% cost -of -living -adjustment (COLA), 5%
merit raise, and a 4.4% contract labor increase.
Discussion followed regarding additional inspection fees, the proposed five-
year rate schedule, and how the Consumer Price Index (CPI) was applied to
the rate schedule.
CAC Vice Chair Tou confirmed that there is one proposal for permit fees and
two proposals fixture fees.
Mr. Elowsky presented information on fixture fees and discussed the buy -in
method. He shared the proposed methodology and explained the two
options for determining the fixture unit capacity. He provided the proposed
fixture fees in option 1 and option 2 of the study and shared a five-year rate
schedule for both options.
Mr. Esquer stated that there is an error in the staff report under the financial
review section. He noted that the figures for options 1 and 2 should be
reversed. He clarified that option 1 is a new method for calculating the
impact of fixtures on the District's wastewater system.
Discussion followed regarding the revenue generated from the two options
and capacity costs.
CAC Member Chora suggested including deltas and percentage differences
in the proposed fixture fee graphs. She stated that the study indicates that
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the District is not collecting enough permit fees to cover capacity costs. She
noted that, as a result, the cost is shifted from the developer to wastewater
ratepayers. She expressed support for a full -cost recovery plan. She inquired
if another study will be conducted in five years.
Mr. Carroll confirmed that another study will be conducted in five years.
CAC Member Arbour asked if these proposed charges only apply to new
customers.
Mr. Esquer stated that they will apply to new development customers as well
as customers who are remodeling their home and adding new fixtures.
Discussion followed regarding climate -related disasters and their effect on
the construction cost index.
Motion: To recommend Option 1.
Motion by Paul Lancaster, second by Sue Lester.
CAC Vice Chair Tou recommended sharing this information with the Costa
Mesa Chamber of Commerce.
Final Resolution: Motion carries 6-0-1-3
Ayes: Cindy Brenneman, Xerxez Calilung, Paul Lancaster, Sue Lester,
Michael Tou, Jeff Arbour
No: None
Abstain: Rosemarie Chora
Not Present: Dickie Fernandez, Ben Glassman, Craig Holmes, Dean Fisher
There was no further discussion.
C. CLOSING ITEMS
Procedural: 1. Committee Member Comments
CAC Chair Lester reminded the committee to attend at least one Board
meeting or Study Session. She shared that the meeting calendar is available.
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She recommended having CAC members sign up to attend a Board meeting.
She stated that the Board has six applicants for the 2025-2027 CAC term. She
recommended including the CAC handbook to applicants. She thanked the
CAC, District staff, and the Board and stated that she has very much enjoyed
her time on the CAC since its inception.
There was no further discussion.
Procedural: 2. Board/Staff Comments
Mr. Carroll recognized the CAC members who term ended at the conclusion
of tonight's meeting. He thanked the members who have re -applied for the
committee.
CAC Vice Chair Tou inquired about District events.
Ms. Terraneo stated that staff can send out information about District events
to the CAC.
Mr. Carroll shared that Mesa Water District's new education center is
opening on March 28, 2025. He added that the District's proposed
preliminary biennial budget will be presented at the next CAC meeting.
Procedural: 3. Adjournment
CAC Chair Lester adjourned the meeting at 7:37 p.m. and stated that the next
CAC meeting is scheduled for May 14, 2025.
Sue Lester
Citizens Advisory Committee Chair