Minutes - Board - 2008-06-09C�
COSTA MESA SANITARY DISTRICT
MINUTES OF SPECIAL MEETING
JUNE 99 2008
The Costa Mesa Sanitary District held a Special Meeting at 9:00 a.m. on Wednesday,
June 9, 2008 at 628 W. 19th Street, Costa Mesa.
Directors Present: Art Perry, Arlene Schafer, Bob Ooten, Gary Monahan, James Ferryman
Staff Present: Robin B. Hamers, Manager /District Engineer; Tom Fauth, Assistant
Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the
District; Marc Davis, Treasurer /Director of Finance /CBIZ; Alan Burns,
Legal Counsel; Sherry Kallab, Management Analyst; Teresa Gonzalez,
Accountant
Others Present: Dean Ruff ridge & Bill Scottini
CR &R Incorporated
11292 Western Avenue
Stanton, CA 90680
President Art Perry called the meeting to order at 9:00 a.m. and turned the meeting over
to Mr. Hamers.
I. CSDA 391h Annual Conference & Exhibitor Showcase - September 22 -25, 2008,
Irvine
Mr. Hamers explained Director Schafer will be installed as President of the California
Special Districts Association (CSDA) at the 39th Annual Conference in September 2008.
A reception for the incoming President is scheduled for Wednesday, September 24, 2008
at the Hyatt Regency Irvine Hotel. There is a cost involved in the amount of $2500 and
Mesa Consolidated Water District offered to split the cost with the Costa Mesa Sanitary
District.
District Counsel Alan Burns noted the CMSD is a member of CSDA and has supported
Director Schafer's involvement in the Association. The CSDA supports the mission of the
• District and advocates on behalf of special districts. The participation has resulted in
benefits to the District and its ratepayers.
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Minutes of Special Meeting
June 9, 2008
Page 2
Mr. Burns opined the expenditure of $1,250 by the District would not be a gift of public
funds because this event furthers the mission of the District.
Director Ferryman moved to approve the expenditure of $1,250.00 for the Reception
honoring CSDA incoming President, CMSD Director Arlene Schafer. Director Ooten
seconded the motion.
The motion passed by the following roll call vote:
Ayes: Art Perry, Arlene Schafer, Robert Ooten, James Ferryman, Gary Monahan
Noes: None
Abstain: None
II. CR &R — Consider Resolution of Contractual Interpretations for 2007 -2008
Mr. Burns gave an overview of the Master Agreement between the CMSD and CR &R that
provides each party was given consideration for the various new burdens imposed.
CR &R was allowed to convert to fully automatic service resulting in reduced workers
• compensation and labor costs. The CMSD implemented a variable extra container charge
and CR &R was given a one -time additional four years on its evergreen term. The District
was allowed to sell the containers to CR &R and CR &R was required to take over
maintenance.
CR &R received 90% of the extra container program revenue for the 2006 -2007 fiscal year
while the contract states the District is entitled to 100% of future year revenue with the
money being used for "rate stabilization." The contract also states CR &R and the District
shall consider in good faith negotiations CR &R's expenses in the extra container program
with the overall goal of having the rate charged to District residents close to the County
average. The rate is currently the second highest in the County.
CMSD Staff suggested CR &R is entitled to $0.65 per month for each of the extra
containers for the cost of administration and billing while CR &R requested $2.73 per
month per extra container, which also includes operations, depreciation, and interest.
CR &R provided a breakdown by category of the $2.73.
Discussion between Mr. Ruff ridge, CMSD Board and Staff on all of these issues ensued.
President Perry suggested the District pay CR &R the $0.65 plus $0.50 per month per
extra container of the $8 per month charged to the residents who use extra containers; the
$0.50 per month per container being a good faith offer by the District while not
representing any particular cost. Staff calculated the percentage of $1.15 out of $8 to be
. rounded to 14 %.
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Minutes of Special Meeting
June 9, 2008
Page 3
Director Monahan moved to pay CR &R 14% of the total extra container revenue received
for the 2007 -2008 fiscal year. Director Ooten seconded the motion.
The motion passed by the following roll call vote:
Ayes: Art Perry, Arlene Schafer, Robert Ooten, James Ferryman, Gary Monahan
Noes: None
Abstain: None
IV. Public Comments
No members of the public were present.
ADJOURNMENT
President Perry adjourned the meeting at 10:10 a.m.
= Secretary
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