Minutes - Board - 2006-04-20 (2)t
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
April 20, 2006, at 6:00 p.m. at 628 W. 19th
Street, Costa Mesa.
Vice President Woodside called the
meeting to order at 6:00 p.m.
PLEDGE OF ALLEGIANCE Director Schafer led the Pledge of
Allegiance -
INVOCATION Vice President Woodside gave the
invocation.
ROLL CALL DIRECTORS PRESENT: Greg Woodside, Art Perry, Arlene
Schafer, Dan Worthington
DIRECTORS ABSENT: James Ferryman, absent and excused
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; Ron Shef,
Ordinance Enforcement Officer; Karl
Dulake, Maintenance Supervisor
OTHERS PRESENT: Dean Ruffridge, Senior Vice President,
CR &R
COSTA MESA SANITARY DISTRICT
a k MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 2
. ............................... CONSENT CALENDAR . ...............................
Director Worthington requested the format of financial documents that contain
information regarding charges to both sewer and trash be made more user -
friendly. He stated he had difficulty in discerning expenses on sewer and trash.
Ms. Davis stated the reports are in accordance with the Springbrook software
and she will invite Director Worthington to meet to explain the format.
Director Schafer inquired as to the timetable for completion of sewer televising.
Mr. Hamers reported the sewer televising should be completed by November
2007.
Director Worthington motioned to approve the Consent Calendar as presented.
Director Schafer seconded. Motion carried 4 -0.
REPORTS
MINUTE APPROVAL
Minutes of City /Districts
Liaison Committee Meeting —
March 17, 2006
Minutes of Recycling
Committee Meeting — March
20, 2006
Investment Oversight
Committee Meeting — March
23, 2006
Minutes of Regular Meeting -
March 23, 2006
MANAGER'S REPORTS
Refunds
The Minutes of the City /Districts
Liaison Committee Meeting of March
17, 2006, were approved as
distributed.
The Minutes of the Recycling
Committee Meeting of March 20,
2006, were approved as distributed.
The Minutes of the Investment
Oversight Committee Meeting of
March 23, 2006, were approved as
distributed.
The Minutes of the Regular Meeting of
March 23, 2006, were approved as
distributed.
There were no refunds for the month
of March 2006.
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 3
Occupancy Report and The Trash Occupancy Count
Payment of $194,872.68 to documented an increase of 4 units for
Costa Mesa Disposal - April the occupancy report for solid waste
2006 collection as of April 1, 2006.
Therefore, the total for April is 21,285.
Monthly Spill Report to
Regional Water Quality
Control Board (RWQCB)
ENGINEER'S REPORTS
Project Status Report
TREASURER'S REPORTS
Financial Report as of March
31, 2006
Treasurer's Report as of
March 31, 2006
Board directed Staff to prepare a warrant
for $194,872.68 to Costa Mesa Disposal
on May 1, 2006, for April 2006 collection
count of 21,285.
The Monthly Spill Report to the
Regional Water Quality Control Board
(RWQCB) for March 2006 was
accepted as submitted.
The Project Status Report dated April
2006 was accepted as submitted.
The Financial Report as of March 31.,
2006 was accepted as submitted.
The Treasurer's Report as of March
31, 2006 was accepted as submitted.
Warrant 2006 -10 for March Warrant Resolution #CMSD 2006 -10
2006 in the amount of was approved, authorizing the
$641,226.94 President and Secretary to sign the
warrant ratifying the payment of
certain claims and demands, and
specifying the funds out of which the
same were paid in the amount of
$641,226.94.
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 4
Directors Expenses for the
Month of March 2006
Director Compensation and Expense
Reimbursement for the Month of
March 2006 were approved and
ratified as follows:
Director Ferryman: $1,020.00
Director Perry: $340.00
Director Schafer: $1,020.00 + $13.35
Director Woodside: $340.00
Director Worthington: $1,020.00
END OF CONSENT CALENDAR ..........................
WRITTEN COMMUNICATIONS
Ms. Revak reported there were no written communications received.
PUBLIC COMMENTS
There were no public comments made.
MANAGER'S REPORTS
TRASH COLLECTION PROGRAM
OPPORTUNITIES FOR DECREASING CMSD TRASH COLLECTION RATES
Mr. Hamers reported the Board asked Staff to investigate the District's
rate and provide an explanation as to why it is close to the highest rate in
Orange County. Mr. Hamers reported Staff met with CR &R to receive
input. A letter from Mr. Dean Ruff ridge, Senior Vice President of CR &R,
was provided to the Board.
Mr. Ruffridge's letter offered the explanation that the District has a higher
cost because the Costa Mesa Sanitary District has a "single stream"
program with a guaranteed 50% recycling rate.
Mr. Hamers discussed the options available to the Board:
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Accept the justification provided by CR &R that states the CMSD rate is •
appropriate at the existing and projected future cost levels that include
a yearly CPI increase plus new pass- through costs.
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
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APRIL 20 2006
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2. Retain a consultant who has experience in trash collection matters to
perform a rate justification investigation.
3. Place Costa Mesa Disposal and CR Transfer on notice that the six -
year rolling contract is being terminated with the intention of placing the
trash collection and recycling contract out to bid.
Mr. Burns inquired as to whether the current demand for materials makes
recyclables more valuable and thereby brings in more money. Mr.
Ruffridge acknowledged recyclables are currently garnering a high rate.
Ms. Davis asked Mr. Ruffridge why the District isn't receiving a reduced
rate when CR &R is receiving more money for recycling 50% of the trash.
Director Worthington suggested a future contract should contain a
provision to receive a portion of the money received from selling the
recyclables.
Mr. Burns asked if the District's rate would go down if they recycled a
lesser percent.
Mr. Ruffridge explained that in a contract where a city shares in recyclable
income, they share when the return drops and the cost to dispose of the
materials exceeds the return on the item.
Mr. Harriers requested CR &R provide an estimation of charges should the
District reduce recycling percentages. CR &R will provide the list for
comparison at the May 4, 2006 Special Meeting.
Mr. Ruffridge stated the rate the District is paying is negotiable.
Mr. Fauth provided an overview of the breakdown of volume of trash
picked up per day from the eleven various routes.
Vice President Woodside suggested the item be continued to the Special
Meeting for further discussion. Additional questions for Staff are to be
directed to Ms. Revak.
Mr. Ruffridge left the meeting at 6:50 p.m.
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 6
REQUEST FROM CR&R FOR PASS - THROUGH FUEL COSTS AND OTHER
PROVISIONS
CR &R has requested an increase for pass- through fuel costs, processing
costs, and other increases that are extraordinary in nature. Discussion on
May 4, 2006 will include this request.
TRANSFER OF OWNERSHIP OF TRASH CONTAINERS TO COSTA MESA DISPOSAL
Mr. Hamers reported the Board asked Staff to ascertain whether CR &R
would take over ownership of the trash containers. Mr. Hamers reported
CR &R would take over responsibility of the containers if the District would
complete the payoff of the initial loan taken to purchase the containers.
CR &R would not provide compensation to the District for the existing
containers. CR &R agreed to absorb all future costs for replacement and
purchase of additional new containers.
PROJECTED 2006-2007 TRASH COLLECTION PROGRAM BUDGET
Ms. Davis and Ms. Kallab prepared an estimate of what the 2006 -2007
budget would be for trash services. The minimum increase, based on
costs, would be 7 to 8 percent.
SEWER PROGRAM
FIELD MAINTENANCE SERVICES
Mr. Hamers reported contractors National Plant Services and Jimni are
performing well for the District.
PRELIMINARY 2006 -2007 CIP
Mr. Hamers reported a revised Capital Improvement Plan was faxed to
Board members. Mr. Hamers reported the projected sewer program
increase was pared down to approximately a 12 percent increase, with the
CIP consisting of mostly maintenance items such as televising the system,
FOG program, and WDR requirements for cleaning.
Mr. Burns suggested Mr. Hamers request the City of Costa Mesa provide
the District with any /all records from cleaning the sewer system.
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Special Meetings will be held on May 4, 2006 and May 25, 2006 for •
additional discussion.
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
T; APRIL 20, 2006
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DISTRICT YARD UPDATE
Mr. Hamers reported the sale of the property for a District yard fell through
and a letter requesting reimbursement of expenses has been sent. Mr.
Hamers reported renting a yard appeared to be costly and Staff will
continue to search for a yard to purchase.
CMSD STRATEGIC PLAN
YEAR 2006 STRATEGIC PLANNING ACTION ITEMS
The Year 2006 Strategic Planning Action Items report was received and
filed. Mr. Hamers had no additional input.
NEW DISTRICT HEADQUARTERS
BUILDING AND GROUNDS AD HOC COMMITTEE
UPDATE ON ROOF, GUTTERS, AND COLUMN IMPROVEMENTS
. Mr. Fauth reported the agreement has been signed and the
contractor is waiting for dry weather to begin the roof.
RECYCLING REPORTS
WASTE DIVERSION REPORT - MARCH 2006
Ms. Revak presented the Waste Diversion Reports for March 2006
showing a 50.58% diversion rate.
Director Perry motioned to receive and file the report. Director Schafer
seconded. Motion carried 4 -0.
CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES
AND DISPOSAL
PAYMENT FOR MARCH 2006 SERVICES
Ms. Revak presented the invoices for February 2006 recycling services, and
disposal. Director- Schafer motioned to ratify contract payment to CR
Transfer for recycling services and disposal for the month of March 2006 in
• the amount of $174,197.04. Director Perry seconded. Motion carried 4 -0.
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MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 8
Director Schafer motioned to ratify contract payment to CR Transfer for
recycling services and disposal for Santa Ana Heights for the month of March
2006 in the amount of $12,728.10. Director Perry seconded. Motion carried
4 -0.
STANDARDIZED TRASH CONTAINER PROGRAM REPORTS
Mr. Hamers reported Staff meets with Mr. Shef on a regular basis and
during their recent meeting three items of concern regarding the
standardized trash container program were discussed. The number one
item of concern is removing the trash containers the evening after the
trash is collected. Number two, all the. trash inside the containers with the
lids closed and number three is the marking of addresses on the
containers by residents.
Mr. Fauth provided a synopsis of performance review of Costa Mesa
Disposal. Mr. Fauth reported District Staff will meet with Costa Mesa
Disposal on June 12, 2006, to discuss the 7 -item list compiled by Staff and •
sent to Norma Fernandez, Costa Mesa Disposal, on April 19, 2006;
Overall, the District is pleased with the service, but would like to see
improvement in a few areas.
Mr. Fauth provided a status update on the number of containers in
inventory.
The Ordinance Enforcement Summary Report for the month of March 2006
was accepted. Mr. Shef reported address marking seems to be increasing in
the multi - family housing areas. Mr. Shef speculated the rainy weather
contributed to containers being left out after pickup and trash bags not being
picked up by CMD drivers.
RECYCLING COMMITTEE — MONDAY, APRIL 17, 2006 - 12:00 P.M.,
CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA,
DIRECTORS WOODSIDE AND PERRY
RECYCLING COMMITTEE GOALS FOR 2006/2006
Vice President Woodside reported a program with the Girl Scout troup has
been initiated and they will meet on Friday, March 21, 2006.
Vice President Woodside reported receiving an email from Mr. William •
Anderson, Curbside, Inc., describing their battery bucket program.
Curbside distributes buckets with the capacity to hold 80 -100 pounds of
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
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used batteries to be collected and properly disposed for a fee of $175 per
bucket.
Vice President Woodside stated the battery bucket opportunity will be
discussed in the next recycling committee meeting.
UNIVERSAL WASTE - REQUIREMENTS EFFECTIVE FEBRUARY 9. 2006
RECYCLING EVENT - SATURDAY, JUNE 17, 2006
Vice President Woodside provided some highlights on the June 17,
2006 event to educate the public on the new universal waste
requirements. The contractor is preparing a mailing to the businesses
in the City. The City of Costa Mesa will include the information on the
event in their recreational flyer.
Mr. Fauth provided a 3 -page handout from Integrated Waste
Management entitled Wastes Banned from the Trash listing items that
require disposal other than household or small business trash
containers.
UPDATED FLYER
Mr. Fauth reported the E -Waste flyer is being revised.
TOUR OF CR&R AND LANDFILL - MAY 23, 2006 - NEWPORT HEIGHTS
ELEMENTARY SCHOOL
Vice President Woodside reported there will be a tour of the CR &R
materials recovery facility and the Frank Bowerman. landfill with Newport
Heights Elementary School on May 23, 2006. Ms. Davis will participate in
the tour.
COSTA MESA PUBLIC SAFETY EMERGENCY SERVICES EXPO - SUNDAY
MAY 7, 2006
Vice President Woodside reported there will be a Public Safety
Emergency Services EXPO held on Sunday, May 7, 2006. Mr. Fauth
reported the District has participated in the event for the last six years.
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 10
REVIEW REQUEST FOR ADJUSTMENT OF COMPENSATION FOR
GENERAL COUNSEL
CLOSED SESSION - PERSONNEL EXCEPTION GOVERNMENT CODE SECTION
54957
The Board determined there was no need to adjourn to closed session to
discuss performance of General Counsel.
Mr. Burns submitted a request for an increase in his hourly rate for the
Board's consideration.
Mr. Burns requested rate increase is as follows:
Position
Existing Rate
Proposed Rate
Senior Attorney, Partner
$155
$170
Associate Attorney
$115
$125
Law Clerk
$75
$80
Paralegal
$70
$75
Director Perry
requested for
carried 4 -0.
motioned to approve the requested rate increase as
General Counsel. Director Schafer seconded. Motion
REVIEW REQUEST FOR ADJUSTMENT OF COMPENSATION FOR
TREASURER
CLOSED SESSION - PERSONNEL EXCEPTION GOVERNMENT CODE SECTION
54957
The Board determined there was no need to adjourn to closed session to
discuss performance of the Treasurer.
Ms. Davis submitted a request for an increase in her hourly rate for the
Board's consideration.
Ms. Davis requested a rate increase as follows:
Name
Current Hourly
rate .
Adjustment
Proposed
Hourly Rate
Marc Davis
$105
$7
$112
Wendy Davis
$75
$5
$80
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
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Director Perry motioned to approve the rate increase for Treasurer as
requested. Director Schafer seconded. Motion carried 4 -0.
ENGINEER'S REPORTS
WASTE DISCHARGE REQUIREMENTS - (WDR)
GENERAL UPDATE
Mr. Hamers reported the proposed state requirements are out for public
comments. Mr. Hamers reported the District is in full compliance. Mr.
Hamers is on the regional steering committee and reported they are looking
at some very important issues for the future for sewer maintenance and
operation.
DEVELOPMENT AT 1901 NEWPORT BLVD — RUTTER DEVELOPMENT
Director Schafer motioned to approve and execute the agreement with
• Rutter Development Corporation subject to payment of $100,000 of in -lieu
fees. Director Worthington seconded. Motion carried 3 -0.
REPORT ON EMERGENCY WORK — PRESIDENT PUMPING STATION
At the March 2006 regular meeting, the Board approved purchase of two
new pumps to replace the existing pumps at the President Pumping Station.
Since then, Mr. Hamers declared an emergency condition when bolts
holding one of the pumps in place were no longer secure and it became
necessary to replace the pumps under an emergency condition. Mr.
Hamers will provide the total cost at the May meeting.
TREASURER'S REPORTS
FY- 2006/2007 BUDGET SPECIAL MEETINGS
Vice President Woodside reminded Board members there will be two
Special Meetings, May 4, 2006 at 6:00 p.m. and May 25, 2006 at 6:00
p.m.
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MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 12
SELECTION OF INDEPENDENT AUDITORS
Ms. Davis reported the firm of Diehl, Evans, & Company, LLP, certified
public accountants & consultants, was the lowest bidder and the Board
approved the contract at the March 2006 meeting. Ms. Davis stated the
contract was ready to execute.
TAX AND REVENUE ANTICIPATION NOTE (TRAM)
Ms. Davis reported the operating reserve is considered unrestricted
reserves and causes the District to have too much available cash to
qualify for the Tax and Revenue Anticipation Note.
ATTORNEY'S REPORT
COSTA MESA DISPOSAL AND CR TRANSFER MASTER AGREEMENT
Mr. Burns had nothing additional to add to the Costa Mesa Disposal and
CR Transfer Master Agreement. The item will be discussed at the Special
meeting scheduled for May.
JIMNI SYSTEMS INC. AGREEMENT FOR PUMPING STATION
MAINTENANCE
Mr. Burns reported the contract with Jimni Systems Inc. is ready to be
executed. Mr. Burns instructed Staff to obtain an endorsement of
insurance certificate from Jimni Systems. Mr. Fauth reported an
endorsement of insurance has been received. Director Perry motioned to
execute the agreement with Jimni Systems Inc. Director Schafer
seconded. Motion carried 4 -0.
AB 1234 SUNSHINE LAW INTERPRETATION
Mr. Burns reported Director Woodside had previously requested he
discuss AB 1234 with the Orange County Water District General Counsel.
Mr. Burns reported he had a conversation with the Orange County Water
District General Counsel to discuss the interpretation of AB 1234. Mr.
Burns related they discussed that while AB 1234 did not apply literally, the
intent was there and the District should continue with its current
interpretation.
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MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
,. APRIL 20, 2006
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LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD) — APRIL 19, 2006
President Ferryman was not present to provide an update.
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
There was no meeting of the Santa Ana River Flood Protection Agency in
the month of April
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC)
QUARTERLY MEETING, THURSDAY, MARCH 30, 2006
Director Schafer attended the Executive Board meeting of March 7, 2006
and reported they discussed plans for the General Meeting.
49 Director Schafer attended the Quarterly Meeting of March 30, 2006 and
reported John Withers, Director Schafer, and Charlie Wilson gave an
update on LAFCO. Director Schafer provided materials for the Board's
perusal.
Director Worthington reported he was pleased with the selection of the
speaker for the Quarterly meeting.
LOCAL AGENCY FORMATION COMMISSION (LAFCO)
Director Schafer reported she attended the meeting on March 8, 2006.
Director Schafer reported they are at a standstill on the Newport
Beach /Costa Mesa annexation. Director Schafer provided a letter from
the Mayor for the Board's review.
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA)
Director Schafer did not attend the CSDA meeting.
CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA)
Director Schafer did not attend the CASA meeting.
°4;„ •., COSTA MESA SANITARY DISTRICT
' MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20 2006
PAGE 14
OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD
ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030
WACO
Director Schafer attended the WACO meeting on March 3, 2006 and
reported they discussed sediment management in the Prado reservoir.
Mr. Hasan Nouri, President, Rivertech Inc, discussed an option of
hydraulic dredging for the Santa Ana River.
An update on the restoration effort progress at the Salton Sea was given.
Director Schafer provided notes for the Board's review.
Director Schafer reported a representative from Western Municipal Water
District is requesting letters regarding the water infrastructure. Director
Schafer presented materials for the Board's review and requested an
analysis of the proposed constitutional amendment be presented at the
May 4, 2006 Special Meeting. Ms. Revak will provide research materials
to the Board.
Director Worthington reported on Senate Bill 1620 and provided a report
on peripheral canals in the delta area. Director Worthington reported
there is a new bill out to reduce the Metropolitan Water District Board from
37 members to 13 elected members. Director Worthington reported
Orange County has the largest potable water system in the world.
Director Worthington reported Joan Irvine is writing a book on Orange
County.
CHAMBER OF COMMERCE
Director Schafer attended the Chamber of Commerce meeting on March
23, 2006 and reported she provided an update to the Chamber on
activities of the Costa Mesa Sanitary District.
Director Schafer attended a Chamber of Commerce breakfast on Measure
M and provided notes for the Board's review.
OLD BUSINESS
There was no old business discussed.
NEW BUSINESS
There was no new business discussed.
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
APRIL 20, 2006
PAGE 15
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Vice President Woodside reported there is a lawsuit against San Bernardino
LAFCO from an environmental group regarding a sphere of influence
determination.
ADJOURNMENT
At 8:10 p.m., Vice President Woodside adjourned the meeting.
SECRETARY
PRESIDENT