Minutes - Board - 2025-12-091 of 5
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COSTA MESA
SANITARY DISTRICT
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COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION
December 09, 2025
Members present:
Michael Scheafer, President
Robert Ooten, Vice President
Arth u r Perry, Secretary
Nicole Wiltshire, Director
Shayanne Wright, Director
Staff present:
Scott Carroll, General Manager
Noelan i Middenway, District Clerk/PIO
Gina Terraneo, Senior Management Analyst
Marissa Pereyda, Solid Waste Manager
David Griffin, Code Enforcement Officer
Dyana Wick, Administrative Services Manager
Alan Bums, District Counsel
Kaitlin Tran, Finance Manager
Others present:
Sue Lester, Citizens Advisory Committee Chair (CAC) and District customer
Kevin Gaxiola, Solid Waste Coordinator, City of Costa Mesa
Cindy Brenneman, CAC Memberand Districtcustomer
Rosemarie Chora, CAC Member and District customer
A. OPENING ITEMS
1. Call to Order
President Scheafer called the meeting to order at 9:00 a.m.
2. Roll Call
District Clerk and Public Information Officer, Noelani Middenway, conducted roll call
and noted that all Board Members were present.
B. PUBLIC COMMENTS
President Scheafer opened public comments.
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CAC Chair and District customer, Sue Lester, thanked General Manager, Scott Carroll, for
quickly having handrails installed in the District's parking lot. She also thanked Code
Enforcement Officer, David Griffin, for addressing scavenging in her neighborhood.
Hearing no other comments, President Scheafer closed public comments.
C. ITEMS OF STUDY
1. City of Costa Mesa Christmas Tree and Bulky Item Collection
Recommendation: That the Board of Directors receive and file this report.
Solid Waste Manager, Marissa Pereyda, introduced Kexin Gaxiola, Solid Waste
Coordinator with the City of Costa Mesa.
Mr. Gaxiola provided a presentation about the City of Costa Mesa's solid waste
collection services, including Christmas Tree and Bulky Item Collection. He noted that
the City has 7 franchise waste haulers and described how they operate. Additionally,
he discussed consistencies and inconsistencies between the services provided by the
varying waste haulers.
Director Wiltshire asked if the City does any outreach to its customers.
Mr. Gaxiola noted that outreach goes to property owners and it is their responsibility to
distribute information to theirtenants.
Vice President Ooten inquired about the City's diversion percentage.
Mr. Gaxiola noted that the City's diversion is approximately 65%. Regarding outreach,
he shared that information is distributed through the waste haulers, the City Spotlight
newsletter, and City and community events. He noted that one challenge is, due to the
varying disposal procedures among waste haulers, outreach must be generic enough
to apply to all customers.
Discussion followed regarding battery disposal, communication of waste services from
landlords to renters, the bulky item maximum within franchise agreements, and
negotiated agreements between landlords and waste haulers.
Director Wright recommended that the City share outreach directly with customers.
She commented that the varying haulerpractices causes confusion among customers,
and that an exclusive franchise agreement may provide a more streamlined
experience for cu stomers. She indicated support for th a City partnering with a mattress
h au ler for a drop-off program.
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Secretary Perry indicated agreement regarding the City transition ing to an exclusive
franchise agreement. He commented that he supports the District sharing the City's
program information on its website.
The Board thanked Mr. Gaxiola for his presentation.
2. Receive and File Code Enforcement Officers Report - November 2025
Recommendation: That the Board of Directors receive and file the report.
Mr. Griffin shared report details. He noted that there were 5 instances of scavenging in
November and he discussed notices issued for trash carts in public view.
3. Consideration of Reinstating CalPERS Health Benefits for Members of the
Board of Directors
Recommendation: That the Board of Directors discuss and provide direction to staff
regarding the potential reinstatement of Ca/PERS health benefits for Board members.
Administrative Services Manager, Dyana Wick, provided an overview of the staff
report. She noted that current law prohibits special district governing bodies from
participating in California Public Employees' Retirement System (CalPERS) retirement
benefits. Regarding health benefits, she noted that the Board is eligible for
participating in CalPERS health benefits through Public Employees' Medical and
Hospital Care Act (PEMHCA). She described the options for participation and the
related costs, should the Board elect to participate. She explained the long-term
modeling used within the financial review of the report.
Director Wright noted that she prepared an executive summary to share her comments
and analysis. She confirmed that in the Equal Method, the Board does not have to
match the employee range. She suggested a range of $681-$857 as a midpoint
between whatfull-time employees receive and the minimum amount set by PEMHCA.
She noted that she is operating underthe assumption that if a plan exceeds the
benefit, the excess would be deducted from the member's paycheck. Additionally, she
thanked staff forthe long-term model provided and recommended thatthe Board
discuss their openness to the reinstatement today, and if they decide to move forward,
request an analysis from staff along with a recommendation aboutwhich budgetary
funds are available to cover the benefits. Lastly, she commented that the benefitwould
act as a valuable recruiting tool forfuture board members.
President Scheafer asked which participation structure is used by the local agencies
listed in the staff report.
Ms. Wick noted that this information was not readily available.
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President Scheafer discussed Medicare. He indicated that he supports being
financially conservative, keeping in mind thatthis benefitwould need to be maintained
in future years. He requested information about a bucket option and a Health
Retirement Account.
Ms. Wick explained the District's current Health Retirement Account program.
Vice President Ooten requested a cost analysis that shows the cost if only 2 or 3
members elect to participate in the benefit.
The Board requested a cost analysis for a range of $680-$850 for elected officials only,
without additional family benefits.
Director Wiltshire indicated supportfor pursuing reinstating the benefit. She noted that
she likely would not participate currently, but would like to know that it is available
should she need it.
Ms. Lester commented that the benchmarking used for other local districts is not
comparable to the District because of the size of the District's service area and the
nature of its services. She commented that the Board has volunteered their service for
many years and are supposed to look out for ratepayers. Additionally, she commented
regarding the executive summary and added that the timing of this discussion is not
good, in light of escalating landfill fees.
CAC Member and District customer, Rosemarie Chora, expressed concern regarding
this discussion and commented that she does not believe it is budgeted or appropriate
given the District's rising expenses. She added that it may be appropriate in another 3
to 5 years.
President Scheafer closed public comments. He inquired about whether staff has
information about potential landfill fee increases beyond 2026 and requested that this
item be brought back at the January Board Meeting.
4. Reviewing and Commenting on Proposed Administrative Regulations No.
140, Accessory Dwelling Unit (ADU)
Recommendation: That the Board of Directors:
1. Review and comment on Proposed Administrative Regulations No. 140, Accessory
Dwelling Unit (ADU); and
2. Direct staff to present Proposed Administrative Regulations No. 140 to the Citizens
Advisory Committee on January 14, 2026 for review and recommendation.
Mr. Carroll presented the policy and noted that staff is requested the Board's feedback
and the item will then be brought to the CAC for review.
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District Counsel, Alan Burns, shared the definition of an Accessory Dwelling Unit
(ADU) and described how the law currently views them. He noted that the District's
primary concern is wastewater capacity and the Legislature has set the parameters
for what the District can charge in terms of impact fees. He added that the District can
also charge forwaste collection, and the proposed Administrative Regulation will act
as guidance for these fees. Lastly, he noted that the policy will act as a living
document because the ADU laws change frequently.
Secretary Perry confirmed that the District is notified when the City of Costa Mesa
approves new ADUs.
Director Wright noted that the City implemented a step in their approval process that
requires applicants to go to the District and Mesa Water before proceeding in their
permit approval process. She added that the City is working on a pre -approved plan
program to streamline the ADU building process and encouraged staff to continue
coordinating with City on this process.
Discussion followed regarding bringing the item to the CAC for review and the
rationale behind 750 feet as a threshold for impact fees.
D. CLOSING ITEMS
1. Oral Communications and Director Comments
Director Wiltshire noted that it is near her one-year anniversary of being sworn in and
thanked the Board and staff for their support.
Vice PresidentOoten requested a summary of whatthe Districttried to achieve in 2025
related to the strategic plan.
2. Adjournment
President Scheafer adjourned the meeting at 10:32 a.m.
Arth u r Perry, Secretary
Michael Scheaf r, President