Minutes - Board - 2017-02-22 •-i'
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
FEBRUARY 22,2017
Members present
Arlene Schafer, Art Perry, Bob Ooten, James Ferryman, Mike Scheafer
Members absent
None
Staff present
Scott Carroll (General Manager), Noelani Middenway (District Clerk), Alan Burns
(District Counsel), Robin Hamers (District Engineer), Kaitlin Tran (Senior Accountant),
Gina Terraneo (Management Analyst I)
Others present
Dean Ruffridge (CR&R), Lawrence Jones (CR&R)
Meeting called to order at 9:00 AM
A. OPENING ITEMS
Procedural: 1. Roll Call
District Clerk, Noelani Middenway, conducted roll call. All Board Members were
present.
Procedural: 2. Public Comments
President Scheafer opened public comments. Seeing nobody wishing to speak,
President Scheafer closed public comments.
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
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B. DISCUSSION ITEMS
Discussion: 1. Receive and File the CMSD Landfill Diversion Report
Recommendation: That the Board of Directors receive and file the CMSD Landfill
Diversion Report.
General Manager, Scott Carroll, presented the Landfill Diversion Reports for FY
2015-2016 and FY 2016-2017. He noted that the last waste characterization
study was performed by CR&R in 2011 and recommended that the District do
another study in the near future. Mr. Carroll also noted that the Board of Directors
had goals of achieving 75% diversion by 2015 and 90% diversion by 2020 and
suggested revising the goals as appropriate.
Director Perry asked how long the waste characterization study would take to
complete and how much it would cost.
Mr. Carroll replied that the study would take about a week and that there would
be no cost to the District.
Assistant Secretary Ooten commented that District staff should develop elements
within the strategic plan to reach the policy goal of 75% diversion.
Director Perry suggested that the District explore the possibility of including
Orange Coast College (OCC) Recycling Center's diverted tonnage in the
District's diversion rate. Additionally, he suggested providing a part-time
employee to track the city of residence for OCC Recycling Center customers.
Assistant Secretary Ooten reiterated the value of including planning elements
(such as Director Perry's suggestion) into the District's strategic plan.
Discussion followed regarding the responsibility of the City of Costa Mesa to
meet a 75% diversion rate by the year 2020.
Dean Ruffridge of CR&R commented that the District currently has the highest
diversion rate out of the 34 cities that CR&R services. Additionally, he discussed
the drought's adverse effect on organics collection, he indicated support
for Director Perry's suggestion regarding OCC Recycling Center's diverted
materials, and he suggested implementing CR&R's "Recycling Rangers" program
to tag residential mixed waste carts with public outreach information to
encourage organic recycling.
Discussion followed regarding the process and potential results of the "Recycling
Rangers" program.
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
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Mr. Ruffridge added that CR&R has invested $5 million in the CR Transfer facility
to increase the number of sorting lines in order to increase the amount of
diverted materials.
Discussion followed regarding coordinating with OCC and the City of Costa Mesa
to find out which agencies can receive credit for OCC Recycling Center's diverted
tonnage. Additionally, the Board of Directors requested that an item be placed on
the upcoming Liaison Committee Meeting agenda to discuss how the City of
Costa Mesa is planning to meet its 75% diversion goal by 2020.
There were no further questions or discussion and the report was received.
Action: 2. Approve issuing a Notice of Termination to CR&R Environmental
Services.
Recommendation: That the Board of Directors approves issuing a Notice of Termination
to CR&R Environmental Services.
General Manager, Scott Carroll, introduced a discussion of the District's contract
with CR&R Environmental Services and noted that it has been 10 years since the
Board of Directors last discussed the evergreen clause of the contract.
Director Perry asked if a Notice of Termination is required in order to begin a new
contract.
District Counsel, Alan Burns, noted that a termination is not required to develop
or renegotiate a new contract.
Assistant Secretary Ooten indicated that he would like to understand staffs
strategic planning efforts in regards to diversion before making changes to the
contract with CR&R.
Secretary Schafer indicated agreement with Director Perry and shared that she
supports renegotiation rather than termination of the contract.
President Scheafer indicated that he supports the recommendation to issue a
Notice of Termination.
Vice President Ferryman noted that CR&R's ability to process organic material is
keyto determiningwhich trash hauler to contract with. Heindicated
d Gated that the
result may be the same whether the District goes out to bid or renegotiates the
contract.
Mr. Carroll noted that the District can negotiate the evergreen clause out of the
contract.
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President Scheafer suggested that staff negotiate the contract with CR&R and
bring the results to the Board of Directors at a future Special Meeting.
Discussion followed regarding the timeframe for negotiations, how to
communicate the negotiations to the press, and CR&R's vision for organic
recycling.
President Scheafer suggested that the District bring up the possibility of taking
over commercial trash in Costa Mesa at the next Liaison Committee Meeting.
Dean Ruffridge of CR&R noted that the District has requested to take over
commercial trash in the past and the City Council did not approve it. He added
that a Notice of Termination usually signals a slowing of operations to trash
haulers and noted that CR&R would like to discuss rate methodologies, the
occupancy reporting process, and the "Recycling Ranger" program during the
contract renegotiation.
District Engineer, Robin Hamers, suggested that a list of talking points be
developed for the Board of Directors and any staff that may be contacted by the
press regarding the contract negotiation.
Motion: To accept CR&R's offer and negotiate an elimination of the evergreen
clause, to be substituted with a fixed term with renewal options and new program
parameters. Negotiations are to be completed within 3-6 months.
Motion byArt Per second b Arlene Schafer.
Perry, Y
Final Resolution: Motion Carries 5-0
Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer
The Board of Directors accepted CR&R's offer to negotiate an elimination of the
evergreen clause, to be substituted with a fixed term with renewal options and
new program parameters with negotiations to be completed within 3-6 months.
There were no further questions or discussion.
C. ITEMS
NG
I I S
Procedural: 1. Oral Communications & Director Comments
President Scheafer asked if any Board members or staff were planning to attend
the Special District Risk Management Association's (SDRMA) Safety/Claims
Education Day.
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MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
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Assistant Secretary Ooten requested that staff look into an issue that he has with
the search engine on the District's website homepage.
Secretary Schafer noted that she will not be attending the February 23, 2017
Board of Directors regular meeting.
Procedural: 2. Adjournment
President Scheafer adjourned the meeting 10:00 A.M.
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Arlene Schafer Michael Scheafer
Secretary
President