Minutes - Board - 2006-07-24 (2)•
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
JULY 243 2006
Call to Order The Board of Directors of the Costa Mesa
Sanitary District met in special session on
July 24, 2006, at 6:00 p.m. at 1845 Park
Avenue, Costa Mesa.
Pledge of Allegiance
Invocation
Roll Call Directors Present:
Directors Absent:
President Ferryman called the meeting to
order at 6 :00 p.m.
Director Perry led the Pledge of Allegiance.
Director Woodside gave the Invocation.
James Ferryman, Greg Woodside, Art
Perry, Arlene Schafer, Dan Worthington
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; Ron Shef,
Ordinance Enforcement Officer
Others Present: Shirlee A. McDaniels
2046 Anaheim Avenue, Costa Mesa
Public Hearing - Consideration of Annual Trash Collection Charges to be
Collected with the General Taxes
Mr. Hamers reported on the negotiations and new agreement between the District and
• CR &R (on behalf of Costa Mesa Disposal and CR Transfer.) The new agreement
includes provisions to stabilize the trash collection rate paid by residents served by the
District and to institute a variable rate structure. For the fiscal year 2006 -2007, the
Costa Mesa Sanitary District
Minutes of Board of Directors Special Meeting
July 24, 2006
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trash collection rate will be frozen at the 2005 -2006 level of $239.41 per residence per
year unless a residence has more than two trash containers. Residents will be
charged $8 per month for each container beyond the first two. Subsequent provisions
will be implemented when the volume of the two containers exceeds 120 gallons of
capacity. The agreement was finalized after the notification postcards were mailed to
all the property owners. Therefore, the potential increase of the trash collection rate
by 8% as shown on the postcard does not apply.
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.
Mr. Burns read the requirements necessary to increase the trash rate:
Revenues derived from the fee or charge must not exceed the funds required to
provide the property related service.
Revenue from the fee or charge must,not be used for any purpose other than that for
which the fee or charge is imposed.
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.
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.
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.
The Manager shall be presenting a report for each charge in which he will document
how each of these tests have been met. This report has been made available to the
public for their review. Once that report has been presented, you should ask any
questions of staff that you might have, then ask the Clerk to provide the status report
on whether any protests have been received. The Clerk has provided notice by mail
to all parcels subject to the charges. The law provides that if written protests are
presented by a majority of the owners of the parcels, the charges may not be
• imposed. Since only written protests can be considered, staff has developed forms for
the use of the protesting owners so that any person wishing to protest tonight can
have their vote counted. There are over 17,755 parcels that are subject to the
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Minutes of Board of Directors Special Meeting
July 24, 2006
Page 3
charges being considered tonight. If there is not a sufficient protest, the Board may
consider whether or not to impose the charge and adopt the proposed resolution.
Presentation of Report
Mr. Fauth presented a report stating trash collection charges for 2006 -07 are $239.41
per dwelling unit per year. 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 identified in the District's yearly budget.
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 will consider implementing a variable charge program
based on the number of trash containers at each residence as part of this hearing.
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.
• President Ferryman verified from Joan Revak, Clerk of the District, that all required
notices were duly published.
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Minutes of Board of Directors Special Meeting
July 24, 2006
Page 4
Ms. Revak reported the District received 1 protest to date from a total of 17,755
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:
A written protest dated June 16, 2006 was received from Y. Lorman, 1641 Indus
Street, Santa Ana Heights, CA 92707. Ms. Lorman stated her belief that the trash
rates are unfair to single family residents as there are several "recovery houses" that
are businesses for the people operating them; and every week three and four trash
barrels are put out. Most other residences have only one or two.
Ms. Shirlee A. McDaniels, 2046 Anaheim Avenue, Costa Mesa was present at the
hearing and attended the meeting not to protest rates but to enlist the District to
encourage residents to consider taking their recyclables to Orange Coast College or
other recycling sites. Ms. McDaniels is aware of the materials recovery facility where
residential trash is taken for sorting out recyclables before being taken to the landfill
and she has taken one of the tours offered by the CMSD.
Mr. Hamers assured Ms. McDaniels that the District always promotes recycling and
will be placing an emphasis on "source reduction" as a means to lower the amount of
trash being landfilled.
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 17,755
parcels.
President Ferryman determined the protest failed.
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Minutes of Board of Directors Special Meeting
July 24, 2006
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Adopt Resolution No. 2006 -725 Confirming and Adopting the Report and Direct
Clerk to File with County Auditor
Director Schafer motioned to adopt Resolution No. 2006 -725, 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.
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.
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Presentation of Report
Mr. Fauth presented a report on the liquid waste disposal charges for 2006 -07
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
$37.64 + $2.77
$28.99 + $2.77
$21.90/1000 sf + $2.77
$21.90/1000 sf + $72.00
$21.90/1000 sf + $180.00
$64.51 /1000 sf + $2.77
$19.40/1000 sf + $2.77
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.
Fauth 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 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 sewer engineers and adopted by other sewer agencies.
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July 24, 2006
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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
commercial /industrial /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. The variable rate considers the respective burdens placed on the
system by the different users. 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 24,995
parcels notified. Ms. Revak reported the protest was received from Y. Lorman, 1641
Indus Street, Santa Ana Heights stating in setting rates consideration should be given
to multi- resident (recovery houses) that generate more sewage.
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.
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, noting that by law only written protests may be counted,
determined there was one protest filed from a total of 24,995 parcels.
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July 24, 2006
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President Ferryman determined the protest failed.
Adopt Resolution No. 2006 -26 Confirming and Adopting the Report and
Directing the Clerk to File with the County Auditor
Director Woodside motioned to adopt Resolution No. 2006 -726, 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.
ORAL COMMUNICATIONS
President Ferryman expressed his appreciation to District Staff for their diligent efforts
in the rate setting process and in negotiating the Agreement with CR &R.
• ADJOURNMENT
At 6:30 p.m., President Ferryman adjourned the meeting.
Secretary
•
President