Minutes - Board - 2010-05-27•
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
MAY 273 2010
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
May 27, 2010 at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
PLEDGE OF Director Ferryman led the Pledge of
ALLEGIANCE Allegiance.
INVOCATION Mr. Fauth gave the invocation.
ROLL CALL DIRECTORS PRESENT:, Arlene Schafer, Robert Ooten, Gary
Monahan, James Ferryman, Art Perry
DIRECTORS ABSENT:
STAFF PRESENT: Scott Carroll, General Manager; Joan Revak,
Office Manager /Clerk of the District; Robin B.
Hamers, District Engineer; Alan Burns, Legal
Counsel; Tom Fauth, Operations Manager;
Marc Davis, Treasurer; Sherry Kallab,
Administrative Manager
OTHERS PRESENT Dean Ruffridge, George Lazaruk, Joyce
Amato
CR &R, Incorporated
11292 Western Avenue
Stanton, CA 90680
COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
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ANNOUNCEMENT OF LATE COMMUNICATIONS
PAGE 2
Ms. Revak reported there were two late communications received after posting the agenda
and mailing the Board packet. The items will be considered under "New Business ".
CONSENT CALENDAR
Director Ooten moved to approve the Consent Calendar. Director Ferryman seconded the
motion. Motion carried 5 -0.
REPORTS
MINUTE APPROVAL
Minutes of Sewer. System Committee
Meeting — April 13, 2010
The Minutes of the Sewer System Committee
Meeting of April 13, 2010 were approved as
distributed.
Minutes of Recycling Committee Meeting The Minutes of the Recycling Committee
—April 19, 2010 Meeting of April 19, 2010 were approved as
distributed.
Minutes of the Regular Board of
Directors Meeting — April 22, 2010
Refunds
The Minutes of the Regular Board of Directors
Meeting of April 22, 2010 were approved as
distributed.
There were no refund requests for the
month of April 2010.
Occupancy Report and Payment of The Trash Occupancy Count documented
$196,795.32 to Costa Mesa Disposal — no increase for the occupancy report for
April 2010 solid waste collection as of May 1, 2010.
Therefore, the total for April is 21,495 and
the payment of $196,795.32 was ratified.
Monthly Spill Report to State Water The Monthly Spill Report to the State Water
Resources Control Board Resources Control Board (SWRCB) for May
2010 was accepted as submitted.
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COSTA MESA SANITARY DISTRICT PAGE 3
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
Waste Diversion Report for April 2010 The Waste Diversion Report dated April 2010
was accepted as submitted.
Contract Payment of $173,656.58 to
CR Transfer —April 2010
Contract Payment of $8,275.83
to CR Transfer — Santa Ana
Heights /Newport Beach —April 2010
Ordinance Enforcement Officer's
Report
ENGINEER'S REPORTS
Project Status Report
Howard S. Wright Contractors Invoice
in the amount of $401,822.78
TREASURER'S REPORTS
Financial Report as of April 30,
2010
Treasurer's Report as of April 30, 2010
Warrant Register for the month of April
2010 in the amount of $1,110,309.61
The contract payment of $173,656.58 to
CR Transfer for recycling services and
disposal for the month of April 2010 was
ratified as submitted.
The contract payment of $8,275.83 to CR
Transfer for recycling services and disposal
for Santa Ana Heights /Newport Beach for
the month of April 2010 was ratified as
submitted.
The Ordinance Enforcement Officer's Report
dated May 27, 2010 was accepted as
submitted.
The Project Status Report dated May 2010
was accepted as submitted.
The Howard S. Wright Invoice for work
performed through April 30, 2010 in the
amount of $401,822.78 was ratified as
submitted.
The Financial Report as of April 30, 2010
was accepted as submitted.
The Treasurer's Report as of April 30,
2010 was accepted as submitted.
Warrant Resolution #CMSD 2010 -11 was
approved, authorizing the 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
$1,110,309/61.
COSTA MESA SANITARY DISTRICT
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
Directors Compensation &
Reimbursement of Expenses for the
month of April 2010.
PUBLIC COMMENTS
PAGE 4
Director Compensation and Expense
Reimbursements for the month of April
2010 were approved and ratified as
follows:
President Schafer: $1,326.00 + $28.25
Vice President Ooten: $1,326.00 + $48.81
Director Monahan: $884.00
Director Ferryman: $1,326.00 + $106.91
Director Perry: $1,326.00
END OF CONSENT CALENDAR
There were no public comments.
WRITTEN COMMUNICATIONS
Ms. Revak presented an Award to the Costa Mesa Sanitary District for outstanding
professional accomplishments presented at the 82nd Annual Conference of the
California Water Environment Association in Sacramento.
GENERAL MANAGER'S REPORTS
Mr. Carroll presented a final draft version of the Costa Mesa Sanitary District Strategic
Plan for Fiscal Years 2010 -15. The plan was developed using a systematic approach of
gathering input from Staff, interviewing individual Board members and conducting
workshops to brainstorm strategic elements, objectives and performance
measurements. Director Ooten requested a change on page 14, item 1.3 Hot Spot
Abatement Program, as follows: This program will include an evaluation of hot spots on
a case -by -case basis along with the development of a plan for eliminating hot spots.
The plan will take into consideration economics (i.e. the cost to perform the repair vs.
routine maintenance) and the environment as factors for eliminating hot spots."
Director Ooten moved to adopt the Strategic Plan with the recommended amendment.
Director Monahan seconded the motion. Motion carried 5 -0. Director Ferryman
requested regular updates on the status of the action items of the Strategic Plan.
CMSD ORDINANCE NO. 76, REVISING THE CHARGES COLLECTED BY THE DISTRICT &
ESTABLISHING THAT FIXTURE FEES ARE CAPACITY CHARGES & MAKING RELATED
CLARIFYING CHANGES
Mr. Carroll presented an Ordinance changing the District's fixture fees to identify those
fees as capacity charges with legal implications relating thereto with increases in those
fixture fees which are now to be set by resolution. Mr. Carroll stated the District has
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COSTA MESA SANITARY DISTRICT PAGE 5
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
long charged fees for plumbing fixtures in proposed developments. The revenues
generated from these fees are to be specifically used for reconstruction of sewage
facilities; these fees have not been increased since 1970. A report by the District
Engineer was presented justifying an increase in the fixture fees. The report was
provided to the Building Industry Association (BIA) for their review and comment and no
response was received from BIA. Director Ooten stated the fees are extremely low and
in view of the fact the fees have not changed in over 30 years a higher increase is
warranted. Director Ooten suggested revised fees should be submitted to the Board for
approval on an annual basis. Attorney Burns stated the first action should be to
establish fixture fees are capacity charges. The second action should be to set the
fees. Director Ferryman stated the proposed fees are extremely low. Director Monahan
moved to approve and adopt Ordinance No. 76, Revising the Charges Collected by the
District and establishing that fixture fees are capacity charges and making related
clarifying changes. Director Ferryman seconded the motion. Motion carried 5 -0.
CMSD RESOLUTION NO. 2010 -780 ESTABLISHING FIXTURE FEES
Director Monahan moved to adopt CMSD Resolution No. 2010 -780 Establishing Fixture
Fees, retroacting the $0.25 increase from January 1, 1971 to January 1, 2009,
increasing the fixture fee to $17.25 per unit. Director Perry seconded the motion.
Motion carried 5 -0.
PETTY CASH POLICY
Mr. Carroll presented a revised petty cash policy repealing District Administration
Regulation 3.8 Petty Cash, and replacing it with the revised policy presented to the
Board. Changes include a petty cash disbursement limit of $100 or less, monthly
reconciliation, control sheet, semi - annual random audit, review of material safety data
sheet before use of purchased chemicals. Director Ooten moved to approve the
revised petty cash policy. Director Monahan seconded the motion. Motion carried 5 -0.
PRESENTATION BY DEAN RUFFRIDGE, CR &R INCORPORATED
President Schafer introduced Mr. Dean Ruffridge of CR &R Incorporated who in turn
introduced Ms. Joyce Amato, Chief Financial Officer and Vice President Mr. George
Lazaruk. Mr. Ruffridge stated the main issue he will address revolves around rates:
"The net rate is really in the middle of the current Orange County rates. Some cities
have eliminated franchise fees, recently, the cities of Dana Point, Orange, Aliso Viejo,
all of the Orange County franchise areas as well as Tustin, to keep their rates low.
Commercial users in some cities pay a much higher franchise fee and without any
residential franchise fee such as Dana Point; they eliminated their residential franchise
fees to keep their rates low. This allows residential rates to be somewhat lower than a
residential -only franchise which is the case here in Costa Mesa. Mr. Ruffridge stated he
believes after July 1, 2010 there will be six to ten cities with higher rates than $19.95,
the rate of the Costa Mesa Sanitary District, based upon landfill increases and cost of
living
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MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
increases in Orange County. Although I noted your rate from CR &R is in the middle of
the Orange County pack I believe this Board essentially wanted the gross figure of
$19.95 to be in the middle of the pack over a period of time. CR &R believes this can be
accomplished, however, it will take time. CR &R did not ask for rate increase but asked
for a meeting with the Board to negotiate any adjustments charged otherwise the
CMSD Staff report is very detailed and is a good report. CR &R appreciates the
relationship and history with the CMSD. Even as landfill rates are going up 36% in
Orange County July 1, 2010, CR &R has been able to control the cost of doing business
in these economic times. CR &R offers the following consideration:
1. CR &R will replace our existing diesel collection fleet totally within the next
four years.
2. CR &R offers the Board not to request a CPI increase on the hauling
component of the current rate and will maintain the current $9.15 hauling rate
for the next year.
3. CR &R will not request a CPI increase on the processing /recycling component
of the rate and will maintain the current $52.22 per ton rate.
4. CR &R proposes not to increase the CRT processing rate of $52.22 due to the
landfill increase July 1, 2010. We do, however, reserve the option to review
this and the impact on our company annually going forward; but, we will not
increase your rate for the 2010 -2011 fiscal year."
Mr. Ruffridge thanked the President and the Board for allowing him to speak at this
meeting.
President Schafer queried Mr. Ruffridge for the status of the Perris plant. Mr. Ruffridge
replied the Perris Plant is moving forward. Mr. Ruffridge stated he would send a report
from Mr. Paul Relis on the status of the plant. CR &R was selected as one of three
companies to enter into a Memorandum of Understanding (MOU) with Los Angeles
County to develop an alternative technology to landfill. CR &R and Los Angeles County
will jointly work to develop a 150 ton per day Anaerobic Digester (AD) system to be co-
located with CR &R's Perris MRF/Transfer station. Under the MOU, Los Angeles
County will assist CR &R in obtaining grant funding for the project. Mr. Ruffridge stated
he will send the report from Paul Relis to Ms. Revak on Friday, May 28, 2010.
Director Monahan questioned if a goal is to get to a single franchise hauler and if the
process isn't started. now, the concern is if we put off going out to bid for another year, it
delays another year of having a franchise for both the residential and commercial in the
event the City and the CMSD come to an agreement. Discussion was held on this
subject. Mr. Ruffridge proposed CR &R take a rate survey at July 1, 2010 after new
rates have been adopted by Orange County agencies.
COSTA MESA SANITARY DISTRICT PAGE 7
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
GENERAL MANAGER'S REPORTS (CONTINUED)
RECYCLING COMMITTEE
Director Ooten gave a report on the May 24, 2010 Recycling Committee meeting.
Ms. Throop of CR &R, Inc. reported on the Orange County Green Fair at the Santa Ana
Civic Center on May 20, 2010.. The quarterly grant status report was discussed. The
District generated $8,180 in additional funds from the sale of Earth Machines to
residents of Costa Mesa. Director Ooten reported the public outreach recycling booth at
the Costa Mesa Community Run April 23 -24, 2010 was successful as was the Summer
Safety Expo held on May 16, 2010. Director Ooten suggested new goals for the
Committee be established based on the new Strategic Plan.
ENGINEER'S REPORTS
789 PAULARINO AVENUE, ILLEGAL SEWER CONNECTION
Mr. Harriers reported on a property located at 789 Paularino Avenue connected illegally
to the CMSD sewer system by constructing a lateral from 789 Paularino across the
property line of 795 Paularino Avenue and into the private sewer of 795 Paularino. Both
properties are owned by Ms. Jean L. Park. The property at 789 Paularino has never
been annexed to the Costa Mesa Sanitary District. Mr. Hamers stated Staff is
requesting at the very least, the Board request the property owner to pay annexation
and connection fees. The Board directed Staff to request an inspection of the property,
document reasonable efforts and, if compliance by the property owner is not obtained,
Mr. Carroll will contact Mr. Burns to have an inspection warrant issued to inspect the
property. The matter was referred to the Sewer System Committee to resolve and
report back to the Board of Directors.
SEWER SYSTEM COMMITTEE
Director Monahan reported on the Sewer System Committee meeting held on Tuesday,
May 18, 2010. There was one small sewer spill on Iowa Street that was completely
contained. Private pumping stations were discussed. The Santa Margarita force main
spill of 900,000 gallons was discussed. Flushable, non -woven products were
mentioned and AB 2256. A handout on the subject from Central Contra Costa Sanitary
District was provided. Updates on GIS, SCADA, the CCTV program were provided.
TREASURER'S REPORTS
INVESTMENT OVERSIGHT COMMITTEE MEETING
Mr. Davis reported on the Investment Oversight Committee meeting held at 5:00
p.m. on May 27, 2010.
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COSTA MESA SANITARY DISTRICT PAGE 8
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
ATTORNEY'S REPORTS
Claim by Back Bay, Ltd. For Property at 2651 -1675 Irvine Avenue
(CMSD Project #168 — Irvine Pump Station Relocation)
Mr. Burns reported the Back Bay Center litigation settled in the amount of $1 M.
The District was totally indemnified. Mr. Burns reported there will be a settlement
hearing and there are a few issues outstanding.
CMSD Ordinance No. 77, Enacting an Administrative Citation Svstem
Mr. Burns presented for the Board's consideration, an Ordinance enacting an
administrative citation system for the District's Operations Code. This ordinance
allows a code violation to be prosecuted civilly. Because violations would be
civil, the offender would not be subjected to criminal sanctions. Staff would still
have discretion to cite violations as criminal offenses when appropriate.
Director Ferryman moved to adopt Ordinance No. 77. Director Perry seconded
the motion. Motion passed 5 -0.
• CLERK OF THE DISTRICT REPORTS
CMSD RESOLUTION No. 2010 -779
Ms. Revak presented CMSD Resolution No. 2010 -779, Ordering that Publication
of Ordinance No. 75 Revising the Plan Check, Inspection, Permit & Annexation
Fee Provisions of the District Operations Code has been published. Director
Monahan moved to adopt CMSD Resolution No. 2010 -779. Director Perry
seconded the motion. Motion carried 5 -0.
ELECTION 2010
Ms. Revak reported on the November 2, 2010 Election. Directors Arlene
Schafer, Gary Monahan and Robert Ooten are incumbents of the three Director
seats to be filled in the 2010 election. Ms. Revak stated candidate statements
are limited to 200 words paid for by the candidate, per the CMSD operations
code, and the candidate filing period is July 12 through August 6, 2010, 5:00 p.m.
The Candidate Handbook will be completed the last week of May and will be
posted on the Registrar of Voters website.
CITY CLERKS ASSOCIATION OF CALIFORNIA CONFERENCE - APRIL 26-30, 2010
Ms. Revak reported on the City Clerks Association of California conference held
April 26 -30, 2010 and expressed her appreciation to the Board for giving her the
opportunity to attend the worthwhile conference.
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COSTA MESA SANITARY DISTRICT PAGE 9
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT (OCSD)
Director Ferryman reported on the OCSD meeting held May 26, 2010. Larry
Crandall was elected Chairman and Troy Edgar was elected Vice Chair. The
Board approved some language in the agreement with the County of Orange with
regard to the SARI line.
SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA)
Director Perry reported he and Director Ferryman attended the Santa Ana River
Flood Protection Agency meeting held at 4:00 p.m. May 27, 2010 and presented
the highlights of the meeting. Director Perry reported status of the Santa Ana
River project was given; discussion of alternatives for the future role of the
SARFPA in view of the original purposes outlined in the bylaws; review of
compensation for the Executive Director and a recommendation to the full
agency meeting for approval of the 2010 -2011 budget.
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC)
• President Schafer reported on the May 4, 2010 meeting. Discussion was held on
topics for future meetings that would be of interest to everyone.
LOCAL AGENCY FORMATION COMMITTEE ( LAFCO)
President Schafer was unable to attend the May 12, 2010 LAFCO meeting due to
her attendance at the CSDA Legislative Days. The oath of office will be taken for
the re- elected members at the June 9, 2010 meeting and a review of interviews
for the private sector member will also be addressed.
CHAMBER OF COMMERCE
President Schafer reported on the May 5, 2010 meeting of the Chamber of
Commerce. General Manager Scott Carroll also attended the meeting. Updates
were given by representatives of the status of the entity they represented.
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA)
President Schafer reported on Legislative Days held in Sacramento May 10 -12,
2010. President Schafer, Director Ferryman and General Manager Scott Carroll
attended. President Schafer reported there were 140 attendees; the speakers
were good and it was a great opportunity to be heard in the Capitol. The three
representatives from CMSD attended a few receptions and had the opportunity to
meet with Assemblyman Jim Silva.
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COSTA MESA SANITARY DISTRICT PAGE 10
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
CSDA ANNUAL CONFERENCE - SEPTEMBER 20- 23.2010
President Schafer reported the CSDA Annual Conference is being held at the
Newport Beach Marriott Hotel September 20 -23, 2010. Directors planning to
attend are President Schafer, Directors Ooten, Ferryman and Perry and each
Director will advise Ms. Revak of the days they plan to attend.
Director Ooten moved to approve President Schafer's stay at the hotel during the
conference as she is Chair of the Conference. Director Perry seconded the
motion. Motion carried 5 -0.
CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA)
The CASA Spring Conference was held at the Newport Beach Marriott Hotel
April 28 -30, 2010. President Schafer, Director Ferryman and General Manager
Scott Carroll attended.
Ms. Revak advised the Ethics Course will be offered at the conference.
INTEGRATED WASTE MANAGEMENT COMMISSION MEETING
Director Ooten attended a meeting of the Integrated Waste Management
Commission on May 13, 2010. Trash laws and regulations were discussed.
Revenues are going down. AB 939 was discussed as well as grants offered by
the Commission. A large amount of revenue is spent on educational purposes.
A large portion is allotted to the Discovery Center in Santa Ana.
OLD BUSINESS
There was no old business to discuss.
NEW BUSINESS
CHANGE OF JUNE 2010 REGULAR BOARD MEETING DATE TO MONDAY JUNE 21 2010
AT 5:30 P.M.
President Schafer requested a change in the date for the regular June Board of
Directors meeting. Director Monahan moved to change the date to Monday,
June 21, 2010. Director Perry seconded the motion. Motion passed 5 -0.
President Schafer requested an item be considered as the need arose after posting of
the agenda. Director Monahan moved to consider the item. Director Perry seconded
the Motion. Motion carried 5 -0.
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COSTA MESA SANITARY DISTRICT PAGE 11
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
HELD MAY 27, 2010
CMSD RESOLUTION NO. 2010-781 - A RESOLUTION IN SUPPORT OF SOUND
STATEWIDE POLICIES THAT ADVANCE CLEAN AND SUSTAINABLE LOCAL WATER
SUPPLIES
Director Monahan moved to adopt Resolution No. 2010 -781, as well as a letter to
the State Water Resources Control Board urging review of the petition pending
regarding the San Diego Regional Water Quality Control Board's NPDES
requirements for the South Coast Water District's Groundwater Recovery Facility
(GRF). Director Ooten seconded the motion. Motion carried 5 -0.
President Schafer requested an item be considered as the need arose after posting of
the agenda. Director Monahan moved to consider the item. Director Ferryman
seconded the Motion. Motion carried 5 -0.
ASSEMBLY BILL 155 (MENDOZA - OPPOSE VERSION: AS PROPOSED TO BE
AMENDED FROM APPROPRIATION SUSPENSE FILE
Director Monahan moved to send a letter to the Honorable Tom Harman in
opposition to Assembly Bill 155. Director Ooten seconded the motion. Motion
carried 5 -0. General Manager Scott Carroll will draft a letter to Senator Harman
for signature by President Schafer.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Schafer stated there will be a Closed Session at the June 21, 2010 meeting
for the purpose of evaluating the General Manager. Evaluation forms were distributed
to the Directors.
Director Monahan questioned Mr. Carroll on when the postcard mailing would have to
go out in order to change the sewer or trash rates. Mr. Carroll stated there would not be
a rate increase, therefore, a postcard mailing is not required.
Director Monahan reported on the latest meeting with the Governor's office on the
Orange County Fairgrounds. Negotiations are going forward. The next meeting in
Sacramento is June 7, 2010.
Director Monahan also reported the Orange County Register newspaper stated the City
of Costa Mesa's action to be a "rule of law" city has the State Latino caucus all up in
arms and they are threatening to block the legislation to allow the sale of the
Fairgrounds to the City of Costa Mesa to punish the City for being a "rule of law" city
which basically says Costa Mesa is not a sanctuary city.
President Schafer also requested Staff to send a letter to Katrina Foley on being named
Citizen of the Year by Orange Coast College. Ms. Revak will draft the letter for
President Schafer's signature.
COSTA MESA SANITARY DISTRICT PAGE 12
MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING
y HELD MAY 27, 2010
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President Schafer adjourned the meeting at 7:32 p.m.
-Seer. a rj.,'
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President