Minutes - Board - 2005-08-11 (2)•
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 11, 2005
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in special session on
August 11, 2005, at 6:00 p.m. at 1845 Park
Avenue, Costa Mesa.
President Ferryman called the meeting to
order at 6:00 p.m.
PLEDGE OF ALLEGIANCE Director Perry led the Pledge of Allegiance.
INVOCATION Director Woodside gave the invocation.
is ROLL CALL DIRECTORS PRESENT: James Ferryman, Greg Woodside, Art
Perry, Arlene Schafer, Dan Worthington
DIRECTORS ABSENT: None
STAFF PRESENT: Robin B. Hamers, Manager /District
Engineer; Alan Burns, Legal Counsel; Tom
Fauth, Assistant Manager; Joan Revak,
Board Secretary/Program Manager /Clerk of
the District; Wendy Davis, Treasurer;
Sherry Kallab, Accountant; Denise Gilbert,
Permit Processing Specialist
OTHERS PRESENT: None
PUBLIC HEARING - CONSIDERATION OF ANNUAL TRASH COLLECTION CHARGES TO BE
COLLECTED WITH THE GENERAL TAXES
Mr. Burns gave a brief overview outlining the process for consideration of annual trash
collection charges, explaining Proposition 218 procedural rules will be followed for the
• proposed increase.
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MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 11, 2005
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Mr. Burns read the requirements necessary to increase the trash rate:
1. Revenues derived from the fee or charge must not exceed the funds required
to provide the property related service.
2. Revenue from the fee or charge must not be used for any purpose other than
that for which the fee or charge is imposed.
3. The amount of a fee or charge imposed upon any parcel or person as an
incident of property ownership must not exceed the proportional cost of the
service attributable to the parcel.
4. The fee or charge may not be imposed for service unless the service is actually
used by, or immediately available to, the owner of the property in question.
Fees or charges based on potential or future use of a service are not permitted.
Standby charges must be classified as assessments and must not be imposed
without compliance with the proportionality requirement for assessments.
5. No fee or charge may be imposed for general governmental services such as
police, fire, ambulance, or libraries, where the service is available to the public
in substantially the same manner as it is to property owners.
PRESENTATION OF REPORT
Mr. Hamers presented a report stating trash collection charges for 2005 -06 are $239.41
per dwelling unit per year for the 2005/06 annual trash collection charge. The charge
meets the substantive requirements of Proposition 218 as follows:
1. Revenues derived from the fee or charge do not exceed the funds required to
provide the trash collection service. The charges are calculated by adding
together the cost of components necessary to provide the service and then
apportioning this to those receiving trash collection services. No components
other than those directly related to providing service are used to establish rates.
The components include trash collection, recycling, education and special
programs, and administration.
2. Revenue from the fee or charge is not used for any purpose other than for which
the fee or charge is imposed. The revenue is to be used only for the components
of providing trash collection service as outlined in Paragraph 1 above and as
40 identified in the District's yearly budget.
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°'� MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
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AUGUST 11, 2005
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3. The amount of a fee or charge imposed upon any parcel or person as an incident
of property ownership does not exceed the proportional cost of the service
attributable to the parcel. The amount of the yearly charge is determined by
dividing the cost of all the components of providing service by the number of
parcels receiving service, as the vast majority of parcels produce an
approximately equal amount of solid waste and all parcels enjoy the benefits of
the public education and have an opportunity to participate in the special
programs. The District considered implementing a variable charge program
based on the number of trash containers at each residence, however, the cost. of
implementing and maintaining the system will exceed the potential savings to the
residents.
4. The fee or charge is not imposed for service unless the service is actually used
by, or immediately available to, the owner of the property in question. Properties
not receiving trash collection service or that receive service from other entities
providing trash collection, are not charged.
5. No fee or charge is imposed for general governmental services such as police,
fire, ambulance, or libraries, but is only imposed for trash services. The District
provides only trash collection and sewer service and all fees collected for trash
collection are used only for that purpose.
Mr. Hamers stated he determined the rate increase is necessary due to the required
increase in the contractual agreement to contractors regarding the Consumer Price
Index increase. Additionally, 88% of the cost for solid waste is attributed to trash
collection and recycling.
President Ferryman verified from Joan Revak, Clerk of the District, that all required
notices were duly published.
Ms. Revak reported the District received 1 protest to date from a total of 17,696 parcels
notified.
OPEN PUBLIC HEARING
President Ferryman opened the public hearing, requesting each speaker to limit their
comments to three minutes and advising participants that, by law, only a written protest
will count. The following protests were received:
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 11, 2005
PAGE 4
Mr. Arthur E. Goddard, 2901 Palau Place. Mr. Goddard protested the increase in trash
rates stating that no property owner should pay more than his or her proportional share
of the total cost.
CLOSE PUBLIC HEARING
President Ferryman closed the public hearing.
DETERMINATION REGARDING PROTESTS
President Ferryman directed Ms. Revak, Clerk of the District, to tally the number of
protests. Ms. Revak determined there was 1 protest filed from a total of 17,696 parcels.
President Ferryman determined the protest failed.
ADOPT RESOLUTION NO. 2005 -713 CONFIRMING AND ADOPTING THE REPORT AND DIRECT
CLERK TO FILE WITH COUNTY AUDITOR
• Director Schafer motioned to adopt Resolution No. 2005 -713, A RESOLUTION OF THE
BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT OF ORANGE
COUNTY, CALIFORNIA, DETERMINING THAT A MAJORITY PROTEST DID NOT
OCCUR WITH RESPECT TO THE PROPOSED CHARGES FOR TRASH
COLLECTION, ADOPTING THE REPORT ON FILE WITH THE CLERK OF THE
DISTRICT AND DIRECTING THE CLERK TO FILE THE REPORT WITH THE
AUDITOR. Director Woodside seconded. Motion carried 5 -0.
PUBLIC HEARING - CONSIDERATION OF ANNUAL LIQUID WASTE CHARGES TO BE COLLECTED
WITH THE GENERAL TAXES
Mr. Burns gave a brief overview outlining the process for consideration of annual liquid
waste charges. Mr. Burns explained the substantive requirements of Proposition 218 will
be met.
Mr. Burns read the requirements of Proposition 218:
1. Revenues derived from the fee or charge must not exceed the funds required to
provide the property related service.
2. Revenue from the fee or charge must not be used for any purpose other than that
• for which the fee or charge is imposed.
COSTA MESA SANITARY DISTRICT
SPECIAL MEETING MINUTES OF BOARD OF DIRECTORS
AUGUST 11, 2005
PAGE 5
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3. The amount of a fee or charge imposed upon any parcel or person as an incident
of property ownership must not exceed the proportional cost of the service
attributable to the parcel.
4. The fee or charge must not be imposed for service unless the service is actually
used by, or immediately available to, the owner of the property in question. Fees
or charges based on potential of future use of a service are not permitted.
Standby charges must be classified as assessments and must not be imposed
without compliance with the proportionality requirement for assessments.
5. No fee or charge can be imposed for general governmental services such as
police, fire, ambulance, or libraries, where the service is available to the public in
substantially the same manner as it is to property owners.
PRESENTATION OF REPORT
Mr. Hamers presented a report on the liquid waste disposal charges for 2005 -06
• showing his review of the proposed rate per category, the rates being the total of the
base charge plus the fats, oils and grease (FOG) control program recovery fee as shown
below:.
Single family residence per year
Multi- family residence per year
Commercial w/o food service per year
Commercial w /cold food service per year
Commercial w /hot food service per year
Industrial per year
Other per year
$31.37 + $2.31
$24.16 + $2.31
$18.25/1000 sf + $2.31
$18.25/1000 sf + $60.00
$18.25/1000 sf + $150.00
$53.76/1000 sf + $2.31
$16.17/1000 sf + $2.31
The proposed charges are an increase over the previous fiscal year. Additional funds
are also necessary to operate and maintain the sewer system in conformance with the
Regional Water Quality Control Board's Waste Discharge Requirements (WDR). Mr.
Hamers outlined how the charges for liquid waste disposal meet the substantive
requirements of Proposition 218 as follows:
1. Revenues derived from the annual sewer fee charges do not exceed the funds
required to provide the sewer service. The base sewer charges are calculated by
adding together the costs of all the components of providing the service and then
apportioning the required funds to each of the properties connected to the
system. The components of providing the service include the yearly capital
• replacement projects, the maintenance and operation costs of maintaining the
system and administration costs. A variable level charge was added to each of
the property categories to recover a portion of the costs of the comprehensive
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 11, 2005
PAGE 6
fats, oils and grease control program that is required under the WDR. These
charges are also shown in the Engineer's Report.
2. Revenues from the charge are not used for any purpose other than for which the
fee or charge is imposed. No funds collected from the charges are used for
expansion or augmentation to the sewer system, only the purposes as designated
in the applicable statutes. Similarly, no funds derived from the charges are used
for solid waste collection, recycling or administration thereof.
3. The amount of a fee or charge imposed upon any parcel or person as an incident
of property ownership does not exceed the proportional cost of the service
attributable to the parcel. Each parcel connected _to the system falls into a
property category type, which has a related estimated maximum sewer flow. The
maximum estimated sewer flow is based on actual flow metering tests along with
flow rates calculated and established by other sewer agencies.
The total estimated maximum sewer flows and acres of property developed are
used to determine the funding contribution from each property category type.
• Each individual parcel, based on the actual number of residential units or
commercialrndustrial /other square footage, is assigned its proportional share of
the required funds of each property category type. In addition to the base sewer
charges, a variable level charge was added to recover a portion of the costs of
the new grease control program. Therefore, each property contributes its
proportional share.
4. The fee or charge is not imposed for service unless the service is actually used
by, or immediately available to, the owner of the property in question. Properties
are only charged if they are physically connected to the sewer system. Vacant
land or properties with storage or other buildings not receiving sewer service are
not charged.
5. No fee or charge is imposed for general governmental services such as police,
fire, ambulance, or libraries, but is only imposed for sewer services. The District
provides only trash collection and sewer service and all fees collected as sewer
charges are used only for related expenses.
President Ferryman verified from Joan Revak, Clerk of the District, that all required
notices were duly published.
Ms. Revak reported the District received 1 protest to date from a total of 24,219 parcels
. notified. Ms. Revak also reported receipt of a letter from Mr. Steven C. Kiser, Counsel to
Park Mesa Village expressing his clients' objection to lack of information and justification
concerning the proposed sewer service rate increases.
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OPEN PUBLIC HEARING
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 11, 2005
PAGE 7
President Ferryman opened the public hearing, requesting each speaker to limit their
comments to three minutes and advising participants that, by law, only a written protest
will count.
Mr. Arthur E. Goddard, 2901 Palau Place. Mr. Goddard protested the increase in sewer
rates stating that no property owner should pay more than his or her proportional share
of the total cost.
Mr. Mark Abrams, 174 Broadway, protested the increase for multi family residence
stating the increase was too much and should be proportional to actual use.
Mr. & Mrs. M. Velastegui, 2060 Placentia Avenue questioned the method of calculating
the rates.
Mr. Hamers stated the only true way to measure flow would be to install a meter at each
• parcel and the cost of doing so would be too costly to the residents and business
owners.
CLOSE PUBLIC HEARING
President Ferryman closed the public hearing.
DETERMINATION REGARDING PROTESTS
Vice President Woodside directed Ms. Revak, Clerk of the District, to tally the number of
protests. Ms. Revak, noting that by law only written protests may be counted,
determined there was one protest filed from a total of 24,219 parcels.
President Ferryman determined the protest failed.
ADOPT RESOLUTION NO. 2005 -714 CONFIRMING AND ADOPTING THE REPORT AND DIRECTING
THE CLERK TO FILE WITH THE COUNTY AUDITOR
Director Woodside motioned to adopt Resolution No. 2005 -714, A RESOLUTION OF
THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT OF
ORANGE COUNTY, CALIFORNIA, DETERMINING THAT A MAJORITY PROTEST
DID NOT OCCUR WITH RESPECT TO THE PROPOSED USER FEE FOR LIQUID
WASTE DISPOSAL AND ADOPTING THE REPORT ON FILE WITH THE CLERK OF
• THE DISTRICT AND DIRECTING THE CLERK TO FILE THE REPORT WITH THE
AUDITOR. Director Perry seconded. Motion carried 5 -0.
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 11, 2005
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Mr. Hamers expressed his appreciation to District Staff for their diligent efforts in the
rate setting process.
ADJOURNMENT
At 6:39 p.m., President Ferryman adjourned the meeting.
SECRETARY
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PRESIDENT