Minutes - Board - 2008-08-060
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 6, 2008
Call to Order The Board of Directors of the Costa Mesa
Sanitary District met in special session on
August 6, 2008, at 5:30 p.m. at 628 W. 19th
Street, Costa Mesa.
Pledge of Allegiance
Invocation
Roll Call Directors Present:
Directors Absent:
President Perry called the meeting to order
at 5:30 p.m.
Director Ferryman led the Pledge of
Allegiance.
Assistant Manager Tom Fauth gave the
Invocation.
Arthur Perry, Arlene Schafer, Robert
Ooten, James Ferryman, Gary Monahan
Staff Present: Robin B. Harriers, Manager /District
Engineer; Alan Burns, Legal Counsel; Tom
Fauth, Assistant Manager; Joan Revak,
Board Secretary/Program Manager /Clerk of
the District; Wendy Davis, Acting
Treasurer; Teresa Gonzalez, Accountant;
Sherry Kallab, Management Analyst
Others Present: Rick Reyno, 2950 Baker Street, Costa
Mesa
Katherine Yong, 162 Cabrillo Street, Costa
Mesa
Dennis Ashenporf, 3210 Montana, Costa
Mesa
{N{ Costa Mesa Sanitary District
` Minutes of Board of Directors Special Meeting
August 6, 2008
Page 2
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.
Mr. Burns read the requirements necessary to follow Proposition 218:
"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."
Assistant Manager Tom Fauth then presented the Engineer's Report.
Presentation of Report
Mr. Fauth presented the Engineer's Report stating trash collection charges for 2008-
09 are $239.41 per dwelling unit per year, which represents no increase from the
previous year's charges. The charge meets the substantive requirements of
Proposition 218 as follows:
1. Revenues derived from the fee or charges 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.
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Costa Mesa Sanitary District
Minutes of Board of Directors Special Meeting
August 6, 2008
Page 3
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 has considered a variable charge program based on the
number of trash containers at each residence and those persons will pay added charges
in addition to the basic service.
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
0 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 Perry verified from Joan Revak, Clerk of the District, that all required notices
were duly published.
Ms. Revak reported the District received no protests to date from a total of 17,956
parcels notified.
Open Public Hearing
President Perry 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. There were no protests received.
Close Public Hearing
• President Perry closed the public hearing.
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Determination Regarding Protests
Costa Mesa Sanitary District
Minutes of Board of Directors Special Meeting
August 6, 2008
Page 4
President Perry directed Ms. Revak, Clerk of the District, to tally the number of
protests. Ms. Revak determined there were no protests filed from a total of 17,956
parcels.
President Perry determined the protest failed.
Adopt Resolution No. 2008 -757 Confirming and Adopting the Report and
Directing Clerk to File with County Auditor
Director Monahan motioned to adopt Resolution No. 2008 -757, 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 Schafer Ooten 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:
91. 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.
Costa Mesa Sanitary District
Minutes of Board of Directors Special Meeting
August 6, 2008
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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. Fauth presented the Engineer's Report for the liquid waste disposal charges for
2008 -09 showing a 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 in Option 3 in the report and also 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
$60.71 + $2.77
$46.75 + $2.77
$35.31 A 000 sf + $2.77
$35.31 A 000 sf + $72.00
$35.31 A 000 sf + $180.00
$104.03/1000 sf + $2.77
$31.29/1000 sf + $2.77
• The proposed charges are an increase over the previous fiscal year. The rate
increase is necessary due to increases in maintenance and operational costs of the
sewer system and to provide additional funding for capital replacement reserves and
capital replacement projects. Additional funds are also necessary to operate and
maintain the sewer system in conformance with the State Water Resources Control
Board's Waste Discharge Requirements (WDR). Additional funds are needed for
sewer lateral assistance program. 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.
e} r Costa Mesa Sanitary District
> Minutes of Board of Directors Special Meeting
August 6, 2008
Page 6
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.
These calculations were well documented in Resolution No. 94 -542 which was
adopted by the Board in 1994.
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 Perry verified from Joan Revak, Clerk of the District, that all required notices
were duly published.
Ms. Revak reported the District received no protests to date from a total of 25,096
parcels notified.
Open Public Hearing
President Perry 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.
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Costa Mesa Sanitary District
Minutes of Board of Directors Special Meeting
August 6, 2008
Page 7
Mr. Rick Reyno of 2950 Baker Street in Costa Mesa provided a written protest to the
proposed sewer charges for 2008 -2009. Mr. Reyno stated he does not feel the sewer
fees are charged proportionally, suggesting the District measure the flow per
household. Mr. Reyno protested the increase in sewer rates. Director Monahan,
Legal Counsel Alan Burns and CMSD Manager /District Engineer explained the logic in
the method used in calculating the rates and Mr. Hamers stated the courts have held
an engineering approximation is usually acceptable in lieu of the exact calculation
when the calculation of the exact amount becomes costly and burdensome.
Close Public Hearing
President Perry closed the public hearing.
Determination Regarding Protests
President Perry directed Ms. Revak, Clerk of the District, 'to tally the number of
protests. Ms. Revak reported one written protest was presented by Mr. Rick Reyno of
2950 Baker Street, Costa Mesa. Ms. Revak, noting that by law only written protests
may be counted, determined there was one protest filed from a total of 25,096 parcels.
President Perry determined the protest failed.
Adopt Resolution No. 2008 -758 Confirming and Adopting the Report and
Directing the Clerk to File with the County Auditor
Director Ooten motioned to adopt Resolution No. 2008 -758, 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 Ferryman seconded. Motion carried 5 -0.
ORAL COMMUNICATIONS
Ms. Katherine Yong stated she came to the hearing to observe the process and
President Perry thanked her for attending.
President Perry expressed his appreciation to District Staff for their diligent efforts in
the rate setting process.
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Costa Mesa Sanitary District
Minutes of Board of Directors Special Meeting
August 6, 2008
Page 7
Mr. Rick Reyno of 2950 Baker Street in Costa Mesa provided a written protest to the
proposed sewer charges for 2008 -2009. Mr. Reyno stated he does not feel the sewer
fees are charged proportionally, suggesting the District measure the flow per
household. Mr. Reyno protested the increase in sewer rates. Director Monahan,
Legal Counsel Alan Burns and CMSD Manager /District Engineer explained the logic in
the method used in calculating the rates and Mr. Hamers stated the courts have held
an engineering approximation is usually acceptable in lieu of the exact calculation
when the calculation of the exact amount becomes costly and burdensome.
Close Public Hearing
President Perry closed the public hearing.
Determination Regarding Protests
President Perry directed Ms. Revak, Clerk of the District, 'to tally the number of
protests. Ms. Revak reported one written protest was presented by Mr. Rick Reyno of
2950 Baker Street, Costa Mesa. Ms. Revak, noting that by law only written protests
may be counted, determined there was one protest filed from a total of 25,096 parcels.
President Perry determined the protest failed.
Adopt Resolution No. 2008 -758 Confirming and Adopting the Report and
Directing the Clerk to File with the County Auditor
Director Ooten motioned to adopt Resolution No. 2008 -758, 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 Ferryman seconded. Motion carried 5 -0.
ORAL COMMUNICATIONS
Ms. Katherine Yong stated she came to the hearing to observe the process and
President Perry thanked her for attending.
President Perry expressed his appreciation to District Staff for their diligent efforts in
the rate setting process.
Costa Mesa Sanitary District
` Minutes of Board of Directors Special Meeting
August 6, 2008
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ADJOURNMENT
At 6:06 p.m., President Perry adjourned the meeting.
secretary
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Got'�&
President