Minutes - Board - 2013-10-01ITEM NO. 01
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
OCTOBER 1, 2013
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in special session on
October 1, 2013 at 9:30A.M. at 628 W. 19th
Street, Costa Mesa.
ROLL CALL DIRECTORS PRESENT: James Ferryman, Robert Ooten, Art Perry,
Arlene Schafer, Mike Scheafer
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Noelani
Middenway, Deputy Clerk of the District;
Javier Ochiqui, Management Analyst;
Elizabeth Pham, Management Assistant;
OTHERS PRESENT: Jim Mosher, Resident; Dean Ruffridge,
CR &R; Mike Silva, CR &R; Lawrence Jones,
CR &R; Julia McGinnis, Orange County
Waste & Recycling
PUBLIC COMMENT
President Ferryman invited members of the public to address the Board.
Seeing no one, President Ferryman closed public comments.
General Manager Carroll provided presentation details on the proposed organic
recycling program by utilizing CR &R's anaerobic digestive (AD) facility in Perris, CA. Mr.
Carroll discussed advantages and disadvantages of source separating and co- mingling
and felt that participating in the AD program would help achieve the Board's goal of
reaching 75% diversion by 2015. Mr. Carroll discussed the cost of participating in the
AD program, noted that a recommendation from the auditor resulted in a $.50 decrease
- $.25 in the hauler rate and $.25 in the CRT rate. Mr. Carroll noted that the AD facility is
projected to go online in November 2014 and if the District chose to participate in the
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
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program, the hauler rate would increase to $.80 to $.85 cents to pay for the additional
carts, the CRT rate would remain the same, and the AD facility would be $71.50 per ton.
Director Ooten questioned why staff chose a 95 gallon container and questioned what
percentage of green waste would be captured.
Mr. Carroll responded and noted that 33 % of green waste would be captured
Director Schafer requested to see CR &R's presentation prior to asking additional
questions.
Mr. Dean Ruffridge introduced the item and noted that Mr. Mike Silva would provide a
presentation regarding the evolution of trash, the evolution of the AD program and
discuss the proposal for the District's participating in the AD program.
Mr. Silva provided a presentation and discussed the evolution of trash and noted that as
technology, disposal rates, and government regulations have changed, CR &R has
developed technology to meet the requirement of 75% diversion. Mr. Silva discussed
the potential ban of organics and recommended that the District adopt a two waste
stream system that would separate recyclables from organics. Mr. Silva noted that
CR &R's 52 trucks operate on clean natural gas (CNG) which they would be able to
produce themselves from the organic waste that is sent to the AD facility. Mr. Silva
explained in detail how organics are processed at the AD facility, the benefits to the
environment and residents, and how government regulations will be met by participating
in the AD program.
Director Schafer commented that members of the public have expressed concern
regarding the addition of an extra cart, questioned what CR &R is doing with City of
Costa Mesa since the City handles the commercial disposal, and questioned what other
agencies are doing business with CR &R.
Mr. Silva noted that he has not addressed commercial disposal.
Mr. Ruffridge indicated that the City of Costa Mesa does not have a franchise
agreement with CR &R and noted that some franchise cities are looking to mandate food
waste. Mr. Ruffridge noted that the City of Newport Beach is very interested in the AD
system and have been informed that the Costa Mesa Sanitary District is the first agency
that has the option to go on line.
Mr. Silva indicated that his goal is for those with one can will go to two cans, and those
with three cans will contract to two cans.
President Ferryman discussed educating residents on separating organics from
recyclables, requested clarification on the bottom line for participating in the AD
program, and expressed concern regarding maintaining a favorable rate.
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Mr. Silva assured that the District would receive the most favored nation rate and
discussed the incremental cost.
Discussion followed.
Director Ooten discussed the customer survey results that stated 91% of customers
prefer the single can system, noted that residents were willing to pay more for increased
recycling, and wanted to see something that addresses the fees.
Discussion followed.
Vice President Scheafer questioned if collection for both carts would take place on the
same day and expressed concern regarding the learning curve for citizens and
questioned how long the process would take.
Mr. Silva stated that CR &R believes that the AD program is the only way that residential
diversion will reach 75% and the learning curve should take about 30 days.
Mr. Ruffridge discussed CR &R's public education and the description of the carts.
Vice President Scheafer expressed support of being innovative to meet regulations.
Director Schafer questioned how the District's participation in the AD program would
affect the District's compost bin sales.
Mr. Ruffridge did not feel that compost bin sales would be impacted.
President Ferryman invited Mr. Mosher to address the Board.
Mr. Mosher commented regarding the three can system that his elderly uncle is a part of
and expressed concern regarding obtaining 100% resident participation and felt that the
learning curve would take more than 30 days. Mr. Mosher expressed concern regarding
the production of methane and questioned if there was a way to dispose of green waste
without CO2 being released into the atmosphere.
Mr. Silva addressed Mr. Mosher's concerns and noted that the methane would be used
for energy but there is no method to eliminate the production of methane.
President Ferryman questioned how the District's evergreen contract with CR &R would
be affected if the District were to participate in the AD program.
General Manager Carroll noted that he would discuss that matter with District Counsel
Burns, however, Mr. Carroll suggested that an amendment to the existing contract
would be more appropriate.
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Mr. Silva noted that CR &R's initial thought is that the evergreen contract would remain
the same and an amendment to the contract would state the date that the AD program
would take effect and that the rate would be incremental.
Mr. Carroll noted that the contract amendment would include the recommendations from
the audit.
Director Ooten noted that the Board could initiate a new contract.
Mr. Carroll requested direction from the Board.
President Ferryman stated that he wanted to know what the net cost is and what the
proposed cart will look like.
Director Schafer suggested that another meeting be held to address the Board's
concerns and have a visual of what the cart will look like.
Discussion followed.
General Manager Carroll questioned if the Board would like him to provide a projection
of incremental increases overtime.
President Ferryman agreed.
Director Ooten questioned when the AD facility would begin operations.
Mr. Silva indicated that the expected launch date is November 2014.
Director Schafer questioned what the expected response time frame is between CR &R
and the District.
Mr. Carroll suggested that another meeting be held to address the net cost, size of the
cart, rate projection, and community awareness plan.
President Ferryman requested to include what is being suggested to have in the
kitchen.
Director Ooten stated that a schedule was very important and felt it important to
distribute a press release explaining the 75% diversion regulatory framework that is
driving the District to do business differently.
Discussion followed.
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General Manager Carroll noted that the Board had adopted the Zero Waste goals and
indicated that the goal was to reach 75% diversion by 2015. Mr. Carroll questioned
when the Board would like to further discuss the proposed contract amendment.
Discussion followed.
The Board of Directors requested to hold a special meeting on October 29, 2013 at 9:30
a.m.
Director Ooten suggested that a notification be sent to the public to inform them of what
is to be discussed at the October 29 meeting.
ADJOURNMENT
There being no further business to come before the Board, President Ferryman
adjourned the meeting at 10:48 a.m.
LIP
Art Perry
Secretary