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Minutes - Board - 2009-07-30• 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING JULY 309 2009 Call to Order The Board of Directors of the Costa Mesa Sanitary District met in special session on July 30, 2009, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. Pledge of Allegiance Invocation Roll Call Directors Present: Directors Absent: President Schafer called the meeting to order at 6:00 p.m. Director Monahan led the Pledge of Allegiance. Assistant Manager Tom Fauth gave the Invocation. Arlene Schafer, Robert Ooten, Gary Monahan, James Ferryman, Arthur Perry Staff Present: Donald F. McIntyre, Interim District Manager; Robin B. Hamers, District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Marc Davis, Treasurer Others Present: Jitka Rollova, 2153A San Michel Drive East, Costa Mesa Geoff West, 1973 Aliso Avenue, Costa Mesa Jillian, 4386 Shasta Place, San Diego • Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting July 30, 2009 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. The Assistant 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 17,971 parcels that are subject to the 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." �$ Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting -;; July 30, 2009 Page 3 Presentation of Report Mr. Fauth presented a report stating trash collection charges for 2009 -10 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 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. 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. . 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 and implemented a variable charge program based on the number of trash containers at each residence and those persons utilizing additional containers 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 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 Schafer 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 17,971 parcels notified. %a zc a' t Open Public Hearing Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting July 30, 2009 Page 4 President Schafer 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: Ms. Jitka Rollova stated she came to the hearing to observe the process and President Schafer thanked her for attending. Mr. Geoff West acknowledged he also came to observe the process and had no comments. Close Public Hearing President Schafer closed the public hearing. Determination Regarding Protests • President Schafer 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 17,971 parcels. President Schafer determined the protest failed. Adopt Resolution No. 2009 -771 Confirming and Adopting the Report and Directing Clerk to File with County Auditor Director Monahan motioned to adopt Resolution No. 2009 -771, 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 Ooten seconded. Motion carried 5 -0. President Schafer stated the Board will now consider sewer charges. Public Hearing - Consideration of Annual Liquid Waste Charges to be Collected with the General Taxes 4 President Schafer stated the same overview given by Attorney Burns for the_ solid waste charges applies to the annual liquid waste charges. President Schafer then requested from Mr. Fauth a report on the liquid waste disposal charges for 2009 -10. • • • `u jc Presentation of Report Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting July 30, 2009 Page 5 Mr. Fauth presented a report on the liquid waste disposal charges for 2009 -10 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 $66.23 + $2.77 $51.00 + $2.77 $38.52/1000 sf + $2.77 $38.52/1000 sf + $72.00 $38.52/1000 sf + $180.00 $113.50/1000 sf + $2.77 $34.14/1000 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 Order No. 2006 - 0003 -DWQ, Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems, especially with respect to the FOG program and capacity assurance plan. Additional money is also needed for the sewer lateral assistance program. Mr. Fauth outlined how the charges for liquid waste disposal meet the substantive requirements of Proposition 218 as follows: 991. 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. Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting July 30, 2009 • ��'° agA.Jr 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 Schafer 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 25,198 parcels notified. Open Public Hearing President Schafer 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. ® Two members of the public were in attendance at the public hearing with no comments or protests. Costa Mesa Sanitary District igASikPq�;`�,^ Minutes of Board of Directors Special Meeting July 30, 2009 Page 7 Close Public Hearing President Schafer closed the public hearing. Determination Regarding Protests President Schafer directed Ms. Revak, Clerk of the District, to tally the number of protests. Ms. Revak reported two written protests were presented by Mr. Reginald Thatcher of 524 W. Canal Drive, Gulf Shores, AL 36542, and Mr. James Candelmo of 20431 SW Cypress Street, Newport Beach, CA 92660. Ms. Revak, noting that by law only written protests may be counted, determined there were two protests filed from a total of 25,198 parcels. President Schafer determined the protest failed. Adopt Resolution No. 2009 -772 Confirming and Adopting the Report and Directing the Clerk to File with the County Auditor Director Monahan motioned to adopt Resolution No. 2009 -772, 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 Ooten seconded. Motion carried 5 -0. ORAL COMMUNICATIONS Director Ferryman stated the Board takes their job very seriously and strive to keep the rates as economical as possible. Mr. Hamers added that contractual Staff agrees and keeps their rates to the District as low as possible in furtherance of that goal. President Schafer stated she received an announcement from CSDA advising Districts have until August 7, 2009 to make nominations for awards, including President of the Year. Director Perry stated President Schafer would make a great recipient of the award given her dedication to the City, County and the State of California and moved to nominate President Schafer for the CSDA President of the Year. Director Ferryman seconded. Discussion was held. Motion passed 5 -0. • 40 F Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting July 30, 2009 Page 8 It was noted Staff is working on submission of paperwork for two other CSDA awards in the Exceptional Public Outreach category — the Sewer Lateral Assistance Program and the Recycling and Waste Diversion Grant Program. Ms. Revak stated District Staff will submit the necessary documents to CSDA prior to the August 7, 2009 deadline Ms. Revak informed the Board the CMSD website is at least 90% up -to -date and suggested the Board visit the updated site with the most current information. The Board expressed their appreciation for the efforts of Staff in making the website current. President Schafer advised of the necessity for a Closed Session Special Meeting. The meeting is scheduled for Monday, August 3, 2009 at 5:00 p.m. at CMSD Headquarters. Ms. Revak will prepare the Notice of Special Meeting and post at District Headquarters. ADJOURNMENT At 6:32 p.m., President Schafer adjourned the meeting. Secr tare