Minutes - Board - 2001-07-25 (2)r --
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COSTA MESA SANITARY DISTRICT
MINUTES OF SPECIAL MEETING HELD JULY 259 2001
CALL TO ORDER The Costa Mesa Sanitary District attended a Special Meeting at
10:00 a.m. in Conference Room 5A at the Costa Mesa Civic
Center. 77 Fair Drive. Costa Mesa
President Schafer called the meeting to order at 10:00 a.m.
Director Worthington led the Pledge of Allegiance
Vice President Woodside gave the Invocation.
ROLL CALL: Directors Present: Arlene Schafer, Greg Woodside, Art Perry,
Jim Ferryman, Dan Worthington
Staff Present: Robin Hamers, Manager /Engineer; Alan Burns,
• Legal Counsel; Tom Fauth, Assistant Manager;
Joan Revak, Clerk of the District; Marc Puckett,
Finance Director; Dawn Schmeisser, Assessment
Specialist
Others Present: Grace Camacho, Costa Mesa Breeze
I. PRELIMINARY 2001 -2002 TRASH COLLECTION AND SEWER SERVICE RATES
Mr. Hamers briefly reviewed the preliminary rate calculation prepared by Mr. Puckett that
was included in the 2001 -2002 District budget. The rate structure reflected a 5.8%
increase in the trash rate to $184.62 per year and the sewer rates reflected a 1%
increase.
II. SURVEY OF ORANGE COUNTY TRASH AND SEWER RATES
Mr. Hamers reviewed four items: The CMSD chart showing the history of the District's
rates, a current sewer rate survey prepared by Ms. Revak, the yearly trash collection
rate survey prepared by Ms. Revak and a newspaper clipping noting a 12% rate
increase for sewer services provided by the Irvine Ranch Water District for portions of
• Newport Beach.
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III. DISCUSSION OF RATE STRUCTURE
Costa Mesa Sanitary District
Minutes of Special Meeting
June 19, 2001
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Mr. Hamers and Mr. Puckett reviewed the current District Budget for sewer services
noting that a 1 % increase in rates still does not cover the proposed budget because of a
last minute capital improvement project. The project is modifying or relocating the Tustin
Pumping Station to accommodate a street widening project.
Mr. Puckett noted that the District's sewer rates have not increased in eight years and
that such a rate structure is subject to occasional deficits. Mr. Hamers and Mr. Puckett
recommended a steadily increasing rate structure at approximately the yearly CPI.
Because it has been so long since the last increase, Mr. Hamers recommended a 5%
increase. For the single family residences, a 5% increase equates to only a $1.15 per
year increase.
Mr. Hamers noted that a long term steadily increasing rate structure was also
recommended by Mr. Greg Lowry, a financial planner previously hired by the District.
Mr. Hamers noted the Board's success at holding rates level for a long term and its
positive effect on the community, however, an increase is appropriate at this time.
• The Board also noted that the District's rates for trash and sewer compared favorably to
rates in other Orange County cities.
With respect to the proposed trash collection rate, the Board noted the rate covers all
expenses except for the new standardized containers that are being provided at no
charge.
The Board reviewed the proposed rates sent out on the Public Hearing notice, which
were 5% increases on all the sewer rates and a 5.8% increase on the trash collection
rate.
The Board directed Staff to prepare the Public Hearing agenda reflecting the 5% and
5.8% increases along with written justification for the increases.
IV. ABILITY TO ADJUST BUDGET TO MODIFY RATES
Mr. Hamers noted that should the Board desire to modify rates, items can be deleted
from the budget or reserves can be used.
V. PUBLIC COMMENTS
No public comments were received.
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The meeting was adjourned at 11:20 a.m.
secretary
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Costa Mesa Sanitary District
Minutes of Special Meeting
June 19, 2001
Page 3