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2025_11_10_study_sessionNovember 10, 2025 Board of Directors Study Session 09:00 AM Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626 The livestream of the meeting can be viewed by visiting the District's YouTube channel at 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 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). OPENING ITEMS Call to Order 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. 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 A. 1. 2. B. 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. ITEMS OF STUDY Receive and File Code Enforcement Officer Report - September and October 2025 Page 3 Recommendation: That the Board of Directors receive and file this report.  Receive Three-Cart Tonnage and Diversion Update Page 28 Recommendation: That the Board of Directors receive and file this report. Receive Orange County Waste & Recycling (OCWR) Waste Disposal Agreement (WDA) Negotiations Update Page 34 Recommendation: That the Board of Directors receive an update on the Waste Disposal Agreement (WDA) negotiations with Orange County Waste & Recycling (OCWR). CLOSING ITEMS Oral Communications and Director Comments Adjournment The next Study Session of the Costa Mesa Sanitary District Board of Directors will be held at 9:00 a.m. on Tuesday, December 9, 2025 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. C. 1. 2. 3. D. 1. 2. 2 of 2 1 Staff Report To:Board of Directors Via:Scott Carroll, General Manager From:David Griffin, Code Enforcement Officer Date:November 10, 2025 Subject: Code Enforcement Officer Report - September and October 2025 Summary This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti on carts, and trash container enforcement. For the months of September and October 2025, the District’s Code Enforcement Officer (CEO) focused their 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. Staff Recommendation That the Board of Directors receive and file this report. Analysis September In the month of September, Officer Griffin observed 3 individuals searching in carts on Cynthia, Wallace, and Wilson. All individuals were advised of the District's scavenging law and given verbal warnings before they went on their way. In the month of September, Officer Griffin issued 81 first warnings notices (yellow tag) to residential properties for having their trash carts in public view. Officer Griffin observed zero instance(s) of graffiti on trash carts in the month of September. October In the month of October, Officer Griffin observed 5 individuals searching in carts on Iowa, New Hampshire, Van Buren, Cannondale, and Miner. One individual was cited by CMPD for scavenging. All other individuals were advised of the District's scavenging law and given verbal warnings before they went on their way. In the month of October, Officer Griffin issued 118 first warnings notices (yellow tag) to residential properties for having their trash carts in public view. 2 Officer Griffin observed zero instance(s) of graffiti on trash carts in the month of October. To address concerns, Officer Griffin is patrolling the community by 6:30 A.M. Legal Review Not applicable. Environmental Review Consideration of the monthly Code Enforcement Officer Report 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 Solid Waste Budget includes one full-time Code Enforcement Officer. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the November 10, 2025, Board of Directors Study Session at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions. Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: David Griffin, Code Enforcement Officer Date: October 14, 2025 Re: Code Enforcement Officer Report – September 2025 This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti, and trash container enforcement. For the month of September, the CMSD Code Enforcement Officer 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. In the month of September, the District saw a number of complaints filed with CMSD Code Enforcement staff regarding scavenging activity in the city. As with most scavenging complaints, the alleged violations take place in the early morning hours. In order to address resident concerns, the Code Enforcement Officer is patrolling streets by 6:30 am. Included below are instances of scavenging that were detected while the Officer was investigating specific complaints. Scavenging Ordinance: Operations Code Section 7.01.030. Rubbish Removal - Scavenging Prohibited. The District and its duly authorized agents or any contractor with whom the District may at any time enter into a contract or franchise therefore, and the agents, servants, and employees of said contractor while any said contract or franchise is in force shall have the exclusive right to gather, collect and remove all waste material from all residential premises served by the District and no other persons than those above shall gather, collect, and remove any trash or waste material or convey or transport any trash or waste material in or along or over any public street, alley, or highway in the District, or take any waste material from any receptacle in which the same has been placed for collection or removal or interfere with or disturb any such receptacle or remove any such receptacle from any location Board of Directors October 14, 2025 Page 2 of 10 where same is place by the owner thereof; provided, however, that nothing in this section shall be deemed to prohibit the occupant of any dwelling house from himself removing any trash or waste material accumulated on the premises occupied by him as a dwelling house and disposing of the same in a lawful manner, or to prohibit any person from gathering, collecting and removing from the premises occupied by him any trash or waste material or other objects of debris considered to be large items. Once trash or waste material has been placed in a container and placed curbside for collection, no person shall scavenge or remove any item from said container except for the District's contractor/franchisee. (Ord. 27, 1997) September Proactive Scavenging Investigations: 3 Board of Directors October 14, 2025 Page 3 of 10 2336 Cynthia Ct.- While patrolling Wednesdays trash routes found an adult male going into CMSD carts. Made contact and explained why he cannot scavenge. He replaced items taken in my presence and left without incident. Board of Directors October 14, 2025 Page 4 of 10 2242 Wallace Ave.- While patrolling the area observed a male subject riding up to CMSD Carts and looking into them. Hung back to watch and he saw me and took off. Looked around the area for him but to no avail. Board of Directors October 14, 2025 Page 5 of 10 952 Wilson St.- During the course of my patrols. Observed an adult female going into CMSD carts and pulling items. Made contact, and advised her of our Ordinance on Scavenging. She was kind enough to return said items taken in my presence. And left the area without incident. Board of Directors October 14, 2025 Page 6 of 10 Trash Container Enforcement: In the month of September, there were a few customer complaints reported to the District Headquarters regarding trash carts in public view. The following is a list of locations where trash cart violations were found and addressed by the Courtesy Notice process. Trash Carts In Public View Ordinance: Operations Code Section 7.01.080. Removal of Trash Containers. (a) Residential containers placed in the street shall be removed from the curb by midnight the day of collection and shall be stored in the rear or side yard of the property so as to be out of view from the street. Containers placed in the alley for collection shall be removed from the alley by midnight the day of collection and shall be stored so as to be out of the public alley, completely on private property, and out of view from the public street. (Ord. 100, 2014) (b) A hardship exception or variance may be obtained by any person whose property is uniquely situated to not allow container removal from the public alley or who has a personal hardship not allowing such storage. A hardship waiver form must be completed explaining the reason(s) for a hardship. Such a hardship exception or variance shall be approved in a letter or other memorialization from the General Manager or designee. Such memorialization shall list the reasons and may be limited in time. (Ord. 27, 1997) (Ord. 93, 2012) Total Cases: 81 The following locations received warnings: (3) Anaheim St. (5) Bernard St. (4) Canyon Dr. (3) Capital St. (3) Darrell St. (3) Grant Ave. (3) Hamilton St. (5) Joann St. (4) Jennifer Ln. (2) Lynn Ct. Board of Directors October 14, 2025 Page 7 of 10 (6) Maple Ave. (5) Meyer Pl. (7) Oriole Dr. (2) Pamela Ln. (4) Parsons St. (1) Placentia Ave. (1) Republic Ave. (1) Sea Bluff Dr. (3) State Ave. (2) Tanager Dr. (1) Thurin St. (2) Trabuco Cir. (4) Towne St. (1) Valley Cir. (6) Victoria St. Board of Directors October 14, 2025 Page 8 of 10 END OF TRASH CONTAINER ENFORCEMENT REPORT_________________________________________________________ Board of Directors October 14, 2025 Page 9 of 10 NO CASES OF GRAFFITI ON TRASH CARTS WERE OPENED IN THE MONTH OF SEPTEMBER. Board of Directors October 14, 2025 Page 10 of 10 ____________________________________________________________________ Scavenging Report – September 2025 Costa Mesa Sanitary District Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: David Griffin, Code Enforcement Officer Date: November 10, 2025 Re: Code Enforcement Officer Report October 2025 This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti, and trash container enforcement. For the month of October, the CMSD Code Enforcement Officer 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. In the month of October, the District saw a number of complaints filed with CMSD Code Enforcement staff regarding scavenging activity in the city. As with most scavenging complaints, the alleged violations take place in the early morning hours. In order to address resident concerns, the Code Enforcement Officer is patrolling streets by 6:30 am. Included below are instances of scavenging that were detected while the Officer was investigating specific complaints. Scavenging Ordinance: Operations Code Section 7.01.030. Rubbish Removal - Scavenging Prohibited. The District and its duly authorized agents or any contractor with whom the District may at any time enter into a contract or franchise therefore, and the agents, servants, and employees of said contractor while any said contract or franchise is in force shall have the exclusive right to gather, collect and remove all waste material from all residential premises served by the District and no other persons than those above shall gather, collect, and remove any trash or waste material or convey or transport any trash or waste material in or along or over Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Board of Directors November 10, 2025 Page 2 of 13 any public street, alley, or highway in the District, or take any waste material from any receptacle in which the same has been placed for collection or removal or interfere with or disturb any such receptacle or remove any such receptacle from any location where same is place by the owner thereof; provided, however, that nothing in this section shall be deemed to prohibit the occupant of any dwelling house from himself removing any trash or waste material accumulated on the premises occupied by him as a dwelling house and disposing of the same in a lawful manner, or to prohibit any person from gathering, collecting and removing from the premises occupied by him any trash or waste material or other objects of debris considered to be large items. Once trash or waste material has been placed in a container and placed curbside for collection, no person shall scavenge or remove any item from said container except for the District's contractor/franchisee. (Ord. 27, 1997) October Proactive Scavenging Investigations: 5 Board of Directors November 10, 2025 Page 3 of 13 2614 Elden Ave.- During my patrols, I located two individuals going into CMSD carts. Made contact and advised them this was prohibited activity in the city limits. They stopped and left the area without incident. First contact. Board of Directors November 10, 2025 Page 4 of 13 1798 New Hampshire Dr.- During my patrols, I located an individual going from cart to cart. Made contact and asked if he knew that scavenging is prohibited, to which he replied, “no.” Informed him that he could be cited for this if he is caught for a second time. He left the area without incident. First contact. Board of Directors November 10, 2025 Page 11 of 13 3074 Van Buren Ave.- While patrolling Friday’s routes, I found an individual that I had seen two weeks prior. I pulled over and contacted CMPD dispatch. I identified myself, the current situation, and the incident from two weeks earlier. CMPD responded within minutes. One of the officers was the same officer who responded two weeks prior and knew the situation. CMPD tried to confirm his identity since he provided false information. They advised they would arrest him to confirm his identity, then cite and release him for scavenging if he had no warrants. Board of Directors November 10, 2025 Page 12 of 13 1004 Cannondale Cir.- While on patrol of Friday’s route, I found an adult male subject with empty boxes. I contacted him and advised him who I was, and why I made contact. He said he did not live in the area. I explained our ordinance on scavenging, and he apologized and left without incident. First contact. Board of Directors November 10, 2025 Page 13 of 13 2184 Miner St.- While patrolling the area, I found an individual going into CMSD carts. Made contact to advise this was a prohibited activity and to cease due to the fact that she could be cited for this activity. She said sorry, and left on foot without incident. Board of Directors November 10, 2025 Page 14 of 13 Trash Container Enforcement: In the month of May, there were a few customer complaints reported to the District Headquarters regarding trash carts in public view. The following is a list of locations where trash cart violations were found and addressed by the Courtesy Notice process. Trash Carts In Public View Ordinance: Operations Code Section 7.01.080. Removal of Trash Containers. (a) Residential containers placed in the street shall be removed from the curb by midnight the day of collection and shall be stored in the rear or side yard of the property so as to be out of view from the street. Containers placed in the alley for collection shall be removed from the alley by midnight the day of collection and shall be stored so as to be out of the public alley, completely on private property, and out of view from the public street. (Ord. 100, 2014) (b) A hardship exception or variance may be obtained by any person whose property is uniquely situated to not allow container removal from the public alley or who has a personal hardship not allowing such storage. A hardship waiver form must be completed explaining the reason(s) for a hardship. Such a hardship exception or variance shall be approved in a letter or other memorialization from the General Manager or designee. Such memorialization shall list the reasons and may be limited in time. (Ord. 27, 1997) (Ord. 93, 2012) Total Cases: 118 The following locations received warnings: (3) Arnold St. (1) Albert Pl. (1) Bayside Ct. (4) Bernard St. (1) Canyon Dr. (2) Center St. (1) Cheyenne St. (6) Church St. (1) Continental Ave. (1) Costa Mesa St. Board of Directors November 10, 2025 Page 15 of 13 (2) Corsica Pl. (2) Fuchsia St (2) Florida Cir. (5) Fordham Dr. (3) Hawaii Cir. (2) Hamilton St. (2) Hanover Dr. (7) Iowa St. (1) Jeffrey Dr. (2) Knowell Pl. (2) Meyer Pl. (9) Maple Ave. (10) Nevada Ave. (2) New Hampshire Dr. (3) Oriole Dr. (1) Ross St. (3) Santa Ana St. (2) State St. (2) Taylor Wy. (16) Tustin Ave. (2) Victoria St. (5) Wallace Ave. (1) Westbrook Pl. (2) Whittier Ave. (3) Wyoming Cir. Board of Directors November 10, 2025 Page 16 of 13 (3) 16th St. (3) 17th St. Board of Directors November 10, 2025 Page 17 of 13 END OF TRASH CONTAINER ENFORCEMENT REPORT Board of Directors November 10, 2025 Page 18 of 13 NO CASES OF GRAFFITI ON TRASH CARTS WERE OPENED IN THE MONTH OF OCTOBER. Board of Directors November 10, 2025 Page 19 of 13 Scavenging Report October 2025 (0) Friday 1 Staff Report To:Board of Directors Via:Scott Carroll, General Manager From:Marissa Pereyda, Solid Waste Manager Date:November 10, 2025 Subject: Three-Cart Tonnage and Diversion Update Summary Under the former two-cart Mixed Waste System, the District’s diversion rate was typically between 60% and 61%. Following implementation of the Three-Cart System, there has not been sufficient source-separated material placed in the Recycling Cart to sustain the diversion levels previously achieved through mixed-waste processing. For the first quarter of FY 2025–26, the District’s diversion rate is 31.6%. Julie Barreda, Senior Regional Vice President with CR&R, will provide an oral report outlining CR&R’s action plan to improve the District’s diversion rate. This report also includes updated Three-Cart System tonnage data, which will be presented to the Board of Directors monthly as part of the Consent Calendar. Staff Recommendation That the Board of Directors receive and file this report. Analysis With the implementation of the District’s Three-Cart System, the reporting of collection tonnage has been revised to account for three separate waste streams: organics, recyclables, and landfill waste. This change reflects compliance with state-mandated source separation requirements and represents a significant operational shift from the prior two-cart Mixed Waste System, where recyclables were recovered through mixed-waste processing. The charts attached to this report include FY 2024-25 and FY 2025-26 tonnage and diversion data. The transition to the Three-Cart System has had a direct impact on the District’s overall diversion rate. Under the former Mixed Waste System, the District consistently achieved diversion rates of approximately 60–61%. However, because the new system relies heavily on customers 2 properly separating materials at the source, there has not yet been sufficient participation in the Recycling Cart to achieve similar diversion levels. For the first quarter of FY 2025-26, the District’s diversion rate is 31.86%. Staff will continue to closely monitor the performance of the Three-Cart System and will provide updated diversion and tonnage reports to the Board of Directors each month as part of the Consent Calendar. These reports will help track progress and identify opportunities for improvement as system participation increases and additional public education and outreach efforts are implemented. Julie Barreda, Senior Regional Vice President with CR&R, will provide an oral report outlining CR&R’s action plan to increase the District’s diversion rate, including enhanced public education and outreach to improve proper sorting practices and route audits to identify contamination issues. Legal Review Not applicable. Environmental Review Consideration of the District's diversion rate 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 Per the most recent projections, the District’s FY 2025–26 budget includes sufficient funds to accommodate current tonnage estimates. Staff will continue to monitor tonnage and update budget projections as needed. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the November 10, 2025, Board of Directors Study Session at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions. Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 FY 2024-25 Recycling 17.72 190.01 382.28 452.98 409.81 420.23 480.95 402.21 394.89 3,151.08 Organics 853.34 830.88 676.94 746.16 689.23 643.39 814.26 554.18 645.46 839.14 885.92 834.12 9,013.02 Landfill 2,082.45 1,724.99 1,817.70 1,928.75 2,036.63 1,864.64 11,455.16 Mixed Waste 2717.94 2429.39 2394.14 2545.96 2122.19 2034.96 14,244.58 Total Tonnage 3,571.28 3,260.27 3,071.08 3,309.84 3,001.43 3,060.63 3,349.69 2,688.98 2,883.39 3,248.84 3,324.76 3,093.65 37,863.84 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 JUL-24 AUG-24 SEP-24 OCT-24 NOV-24 DEC-24 JAN-25 FEB-25 MAR-25 APR-25 MAY-25 JUN-25TonnageThree-Cart Tonnage FY 2024-25 Recycling Organics Landfill Mixed Waste 3,571.28 3,260.27 3,071.08 3,309.84 3,001.43 3,060.63 3,349.69 2,688.98 2,883.39 3,248.84 3,324.76 3,093.65 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 FY 2024-25 Diverted 2,176.95 2,010.03 1,845.21 1,998.60 1,843.83 1,879.94 1,069.26 793.27 887.08 1,041.50 1,104.84 1,050.69 17,701.20 Residual (Landfill)1,394.33 1,250.24 1,225.87 1,311.24 1,157.60 1,180.69 2,280.43 1,895.71 1,996.31 2,207.34 2,219.92 2,042.96 20,162.64 Total Tonnage 3,571.28 3,260.27 3,071.08 3,309.84 3,001.43 3,060.63 3,349.69 2,688.98 2,883.39 3,248.84 3,324.76 3,093.65 37,863.84 Diversion Rate 60.96%61.65%60.08%60.38%61.43%61.42%31.92%29.50%30.77%32.06%33.23%33.96%46.75% 2,176.95 2,010.03 1,845.21 1,998.60 1,843.83 1,879.94 1,069.26 793.27 887.08 1,041.50 1,104.84 1,050.69 1,394.33 1,250.24 1,225.87 1,311.24 1,157.60 1,180.69 2,280.43 1,895.71 1,996.31 2,207.34 2,219.92 2,042.96 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25TonnageThree-Cart Diversion FY 2024-25 Diverted Residual (Landfill) Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 FY 2025-26 Recycling 500.69 346.95 409.19 1,256.83 Organics 841.84 669.93 877.62 2,389.39 Landfill 2,179.83 2,016.18 1,937.69 6,133.70 Total Tonnage 3,522.36 3,033.06 3,224.50 9,779.92 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 JUL-25 AUG-25 SEP-25 OCT-25 NOV-25 DEC-25 JAN-26 FEB-26 MAR-26 APR-26 MAY-26 JUN-26TonnageThree-Cart Tonnage FY 2025-26 Recycling Organics Landfill 3,522.36 3,033.06 3,224.50 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 FY 2025-26 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 FY 2025-26 Diverted 1,126.38 863.11 1,101.42 3,090.91 Residual (Landfill)2,395.98 2,169.95 2,123.08 6,689.01 Total Tonnage 3,522.36 3,033.06 3,224.50 9,779.92 Diversion Rate 31.98%28.46%34.16%31.60% 1,126.38 863.11 1,101.42 2,395.98 2,169.95 2,123.08 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26TonnageThree-Cart Diversion FY 2025-26 Diverted Residual (Landfill) 1 Staff Report To:Board of Directors Via:Scott Carroll, General Manager From:Marissa Pereyda, Solid Waste Manager Date:November 10, 2025 Subject: Orange County Waste & Recycling (OCWR) Waste Disposal Agreement (WDA) Negotiations Update Summary Solid waste disposal at Orange County landfills is governed by a Waste Disposal Agreement (WDA) under which cities and sanitary districts agree to exclusively deposit certain waste at the County of Orange’s landfills in exchange for low and stable disposal rates. The current WDA was entered into in 2009 and subsequently amended to extend the term through June 30, 2025. A Second Amendment to the WDA further extended the term of the agreement by one year, through June 30, 2026. The Orange County City Manager Association (OCCMA), along with Orange County’s sanitary districts, is currently negotiating a successor agreement to the WDA with Orange County Waste & Recycling (OCWR). Participating agencies continue to advocate for rate transparency, equitable cost distribution, and sufficient time for Proposition 218 compliance prior to implementation. The proposed rate increase carries significant implications for all Orange County agencies, as well as their solid waste partners, haulers, and the community we serve. Staff Recommendation That the Board of Directors receive an update on the Waste Disposal Agreement (WDA) negotiations with Orange County Waste & Recycling (OCWR). Analysis Orange County Waste & Recycling (OCWR) presented the proposed successor agreement, titled the Waste Infrastructure System Enhancement (WISE) agreement, to Orange County cities and sanitary districts in November 2024. The WISE agreement proposed increasing the landfill disposal rate, or tipping rate, from $42.65 to $82.00 per ton (a 92.3% increase). The Orange County City Manager Association (OCCMA) formed an ad hoc committee in December 2024 to negotiate a successor agreement to the WDA and requested an extension of the current WDA to allow time for negotiations. OCWR agreed to the OCCMA committee’s extension request. 2 At the April 28, 2025, Board of Directors meeting, the Board approved the Second Amendment to the Waste Disposal Agreement between the Costa Mesa Sanitary District and OCWR. This amendment extended the term of the current WDA by one year, through June 30, 2026, to allow time for the County and all participating cities and sanitary districts to negotiate terms of a successor agreement. The Second Amendment also implemented a 2.6% disposal fee increase, resulting in a revised landfill disposal rate of $43.76 per ton effective July 1, 2025, consistent with the escalation formula in the existing WDA. The purpose of this extension was to maintain continuity of service while OCWR and the OCCMA committee and affected agencies conducted its due diligence and negotiated the structure and rates for a new, long-term waste disposal agreement that will replace the current WDA upon expiration. The OCCMA and affected Orange County cities and special districts continue to engage in active negotiations with OCWR, and on October 13, 2025, OCWR issued its “Last/Best Final Proposal” outlining two rate structure options for consideration: •Option 1: Immediate increase to $73 per ton in FY 2026–27, with subsequent annual adjustments by the Waste Disposal Index (WDI). County Offer ($/ton)% Increase*$/ton Increase Current $43.76 7/1/2026 $73.00 67%$29.24 7/1/2027 $76.09 4%$3.09 7/1/2028 $79.31 4%$3.22 Total Increase (Net increase from current rate)81%$35.55 *Uses 15-year Water Sewer Trash Index average increase for 2027-2028 increases. •Option 2 (recommended by the OCCMA Technical Advisory Subcommittee): A phased approach beginning at $67 per ton in FY 2026–27, increasing to $74 per ton in FY 2027– 28, and $81 per ton in FY 2028–29, followed by periodic evaluations and WDI-based adjustments every three years. County Offer ($/ton)% Increase*$/ton Increase Current $43.76 7/1/2026 $67.00 53%$23.24 7/1/2027 $74.00 10%$7.00 7/1/2028 $81.00 9%$7.00 Total Increase (Net increase from current rate)85%$37.24 *Uses 15-year Water Sewer Trash Index average increase for 2027-2028 increases. Discussions continue to progress toward a finalized agreement expected in early 2026. Based on current disposal tonnages and rate scenarios, the District’s landfill costs under the new agreement options are projected to exceed budget projections by approximately $464,000 3 (option 2) to $596,000 (option 1) in FY 2026-27 with additional increases anticipated in subsequent years. The approved FY 2025-26 Budget includes $60,000 to conduct a solid waste rate study to assess the financial impacts of the new disposal rates, identify necessary adjustments to maintain cost recovery and service sustainability, and provide a framework for any future rate- setting actions consistent with Proposition 218 requirements. Legal Review Legal review is not applicable at this time. When the cities/special districts and OCWR agree on the terms, a revised WISE agreement will be presented to District Counsel for review. Environmental Review Consideration of the Waste Disposal Agreement (WDA) negotiations 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 Based on OCWR’s current proposal, the District’s landfill costs are projected to exceed budget projections by approximately $464,000 (option 2) to $596,000 (option 1) in FY 2026-27. The precise fiscal impact will depend on the final rate structure selected and any approved phase-in schedule. The District's Fiscal Year 2025-26 Budget includes $60,000 to conduct a solid waste rate study to determine the solid waste rate necessary to cover the increased disposal costs. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the November 10, 2025, Board of Directors Study Session at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions.