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Agenda Packets - Board - 2004-07-14f060MCI, _ _ _ ta d ril -r�,p Costa •��°assp�q�� ... an Independent Special District Arlene Schafer President Greg Woodside Vice President Art Perry Director NdX f `� 4NkN_P.9aRM ,V Jim Ferryman Secretary Dan Worthington Director Public Comments. Any member of the public may address the Board. Speakers on agenda items should identify themselves to the Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non - agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non - agenda items except under special circumstances. Speakers must limit their remarks to three minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. In compliance with ADA, contact Joan Revak, (714) 754 -5087, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title ll). Regular Meeting - Wednesday, July 14, 2004 RECOMMENDED ACTION I. CALL TO ORDER —6:00 p.m. — Conference Room 1A - Costa Mesa City Hall II. PLEDGE OF ALLEGIANCE — Director Ferryman III. INVOCATION — Director Woodside IV. ROLL CALL V. Costa Mesa Disposal CPI Adjustment VI. CR Transfer CPI Adjustment VII. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to be routine and will be enacted in one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board request specific items to be removed from the Consent Calendar for discussion, in which event the item will be removed from the Consent Calendar and considered in its normal sequence on the agenda. Reports Minute Approval 1. Recycling Committee — June 10, 2004 Approve Increase Approve Increase 1totecting our community's health 6y providing solidwaste andsewer coffection services. costamesasanitarydistrict. org 11 Costa. Mesa, Sa n Y, District AGENDA • I[] VIII IX. X. 0 2. Regular Meeting — June 10, 2004 3. Special Meeting — June 16, 2004 4. Special Meeting — June 23, 2004 Manager's Reports 5. Refunds 6. Occupancy Report and payment to Costa Mesa Disposal - July 2004 7. Monthly Spill Report to Regional Water Quality Control Board (RWQCB) 8. Minutes of Safety /Loss Control Meeting Held June 22, 2004 Engineer's Reports 9. Project Status Report Treasurer's Reports 10. Financial Report as of June 30, 2004 11. Report of Monies on Deposit as of June 30, 2004 12. Warrant Register for July 2004 in the amount of $713,395.86 13. Directors' Compensation and Reimbursement of Expenses for the Month of June 2004 -------------------------------------- - - - - -- -END OF CONSENT CALENDAR - - -- WRITTEN COMMUNICATIONS PUBLIC COMMENTS MANAGER'S REPORTS A. Anti - Scavenging and Screening of Trash Containers Enforcement Reports B. CMSD Strategic Plan 1. Year 2003/2004 Action Items July 14, 2004 Page 2 RECOMMENDED ACTION Approve Approve Receive and File Receive and File Receive and File Accept Report Receive and File Approve Payment Ratify Expenses Consider Receive and File Protecting our community's Health 6y providing sold waste and sewer collection services. costamesasanitarydistrict. org CQsta Mess Sanitaq District AGENDA 0 2. Separation of District from City a• Follow up action to June 23, 2004 Special Meeting b. .Second Draft of City of Costa Mesa /CMSD Agreement / +' Tenant Improvements CYCOVGN/Tty C. Recycling Reports 1. Waste Diversion Report — June 2004 D. Contract Payment to CR Transfer for recycling services and disposaa�l,� Payment for May 2004 Services --4 w `( 2. Payment for June 2004 Services 0 E 0 I [I Costa Mesa Disposal Request for Fully- Automated Service and Presentation of Master Plan TRC Professional Services Agreement Certificate of Appreciation for William J. Morris July 14, 2004 Page 3 RECOMMENDED ACTION Consider Consider Consider Receive and File Approve Approve Subject to Verification of Diversion Report by Staff Update and Consider Special Meeting Approve Consider Recycling Committee — Tuesday, July 13, 2004 — 9:00 a.m., CR -1A (Directors Worthington and Ferryman) 1. Strategic Planning 2003 -2004 - Public Outreach — Classroom Update on Schedule Recycling Projects Clh.V • `•�cHCr�t.Fl/t�.r" Q -lo; tl�la. J -log 31 ©, S la, 7 2. Large Item Collection Program Accept Report 3. Falcon Water -free Fixtures XI. ENGINEER'S REPORTS • A. aste Discharge Requirements (WDR) /1. General Update Consider Verbal Report from Manager and Attorney 1totecting our community s health by providing solid waste aril sewer coffection services. costamesasanitarydistrict. org Co,sta Mesa. Sanita.YN District July 14, 2004 AGENDA Page 4 . RECOMMENDED ACTION B. Project No. 166 — Manhole & Pump Station Coating and Miscellaneous Work 1. Bid Opening, Transfer of Funds and Award Bid Consider 2. Proposal to Provide Inspection Services Approve C. Report on Emergency or Non -Bid Sewer Work Accept Report XII. TREASURER'S REPORTS /A. Resolution No. 2005 -687 — Authorizing Investment of Monies in LAIF Adopt esolution -B. Ordinance No. 47 — Establishing Procedures for Payments do' Ordinance Resolution C. Resolution No. 2005 -688 — 2003 -2004 Investment Policy Adopt Resolution 2004 -2005 nterim istrict Budget ar,ld7 t �� Ado )'Interim Budget �E. Auditor's Report on Agreed -Upon Procedures Applied to Accept Report Investment Portfolio F. Bank of New York Custodial Services G. Health Benefit Providers XIII. ATTORNEY'S REPORTS A. Ordinance No. 46 Establishing Legal Authority as Required Under Regional State Water Quality Control Board Waste Discharge Requirements B. Project No. 168 - Tustin Pumping Station Relocation Reimbursement Agreement with City of Newport Beach for Sewer Construction C. Agreement with South Coast Plaza for Discharge of Wastewater Into CMSD Manholes XIV. LOCAL MEETINGS A. Orange County Sanitation District (OCSD) r `JV)h F VW ® 1. Regular Meeting — June 24, 2004 (Director Ferryman) B. Santa Ana River Flood Protection Agency (SARFPA) 1. Meeting — June 24, 2004 (Director Perry) Adop esolution Consider Adop Ordinance prove nd Execute Agreement Tpr v and ExeAgreemen t Accept Report Accept Report (Protecting our community's health 6y providing solid waste and sewer colTection services. costamesasanitarydistrict. org Costa Mesa. Sa- .itarN District AGENDA 40 C. Independent Special Districts of Orange County (ISDOC) D. Local Agency Formation Commission ( LAFCO) 1. LAFCO Costs for FY- 2004 -2005 in the amount of $11,240.82 E. California Special Districts Association (CSDA) 1. 2004 Annual Conference at Indian Wells — September 27 -30, 2004 XV. OLD BUSINESS XVI. NEW BUSINESS A. SDRMA Renewal Contribution Invoice — 2004 -2005 Program Year XVII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVIII. ADJOURNMENT 0 • 0 July 14, 2004 Page 5 RECOMMENDED ACTION Accep Report Authorize ayment Accept Report Consider Attendance Authorize Payment 1totecting our community s health 6y providing soW waste and sewer collection services. costamesasanitarrdcstrict. org • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING JUNE 8, 2004 The Costa Mesa Sanitary District Recycling Committee met at 9:00 a.m. in conference room 5A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Dan Worthington, Arlene Schafer Staff Present: Rob Hamers, Tom Fauth, Joan Revak, Bobby Young Director Worthington called the meeting to order at 9:00 a. m. STRATEGIC PLANNING 2004 — PUBLIC OUTREACH — CLASSROOM RECYCLING PROJECTS • Discussion was held on the accomplishments of the classroom recycling projects over the past school year. Plans to continue the program in September 2004 will commence. Director Worthington will contact the Newport-Mesa Unified School District office to coordinate future presentation dates. • PUBLIC COMMENTS There were no public comments. The meeting was adjourned at 9:26 a.m. Secretary President 0rotecting our community's heafth 6y provzdirW solidwaste and sewer co!%ection services, costamesa.sanitarydisoict. org • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 109 2004 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on June 10, 2004, at 4:00 p.m. at the Costa Mesa Historical Society. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: President Schafer called the meeting to order at 3:55 p.m. Director Perry led the Pledge of Allegiance Director Woodside gave the invocation. Arlene Schafer, Greg Woodside, Art Perry, James Ferryman, Dan Worthington None STAFF PRESENT: Robin Hamers, Manager /Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Clerk of the District; Marc Puckett, Treasurer; Bobby Young, Finance; Debbie Bjornson, Permit Processing Specialist; Denise Gilbert, Permit Processing Specialist; Wendy Davis, Treasurer; Cynthia King, Finance OTHERS PRESENT: Jim Atkinson, Mesa Consolidated Water is District COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 PAGE 2 President Schafer presented Mr. Marc Puckett with an Excellence in Service award plaque thanking him for his years of service to the Costa Mesa Sanitary District. President Schafer also thanked Bobby Young for his service to the District. Mr. Hamers introduced two new Staff members Wendy Davis, Treasurer and Cynthia King, Accountant. . ............................... CONSENT CALENDAR . ............................... Ms. Revak requested the Minutes of the Special Meeting, May 7, be corrected to reflect attendance by Mr. Alan Burns, legal counsel. Director Worthington motioned to approve the Consent Calendar as corrected. Director Perry seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Recycling Committee Meeting, May 5, 2004 Minutes of Special Meeting, May 7, 2004 Minutes of Regular Meeting, May 10, 2004 Minutes of Special Meeting, June 2, 2004 MANAGER'S REPORTS The Minutes of the Recycling Committee Meeting of May 5, 2004, were approved as distributed. The Minutes of the Special Meeting of May 7, 2004, were approved as corrected. The Minutes of the Regular Meeting of May 10, 2004, were approved as distributed. The Minutes of the Special Meeting of June 2, 2004, were approved as distributed. REFUNDS In accordance with Resolution No. 96 -584, adopted by the Costa Mesa Sanitary District on April 17, 1996, the following refunds were granted subsequent to receiving a signed statement from the applicants: • • E r Refund request by Steve,Alley, Clean Rooms West Inc. of $782.50 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 PAGE 3 Refund requested by: Steve Alley, Clean Rooms West Inc. Parcel Address: 350 Paularino Ave Assessor's Parcel No. 427 - 091 -13 Number of units: 1 Refund Requested: $782.50 Applicant paid for permits up front. Job was awarded to another contractor. Occupancy Report and The Trash Occupancy Count documented an Payment of $182,330.41 increase of 14 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of June 1, 2004. June 2004 Therefore, the total for June is 21,128. Board directed Staff to prepare a warrant for $182,330.41 to Costa Mesa Disposal on July 1, 2004, for payment for June trash collection based on the June count of 21,128. Monthly Spill Report to The Monthly Spill Report to the Regional Water Regional Water Quality Quality Control Board (RWQCB) for May 2004 was • Control Board (RWQCB) accepted as submitted. • ENGINEER'S REPORTS Project Status Report TREASURER'S REPORTS Financial Report as of May 31, 2004 Report of Monies on Deposit as of May 31, 2004 The Project Status Report dated June 2004, was accepted as submitted. The Financial Report as of May 31, 2004, was accepted as submitted. The Report of Monies on Deposit as of May 31, 2004, was received and filed. Warrant 2004 -12 for May Warrant Resolution #CMSD 2004 -12 was approved, 2004 in the amount of authorizing the President and Secretary to sign the $1,343,791.06 warrant and instructing the Treasurer to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $1,343,791.06. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 PAGE 4 Directors Expenses for the Director Expenses for the Month of May 2004 were Month of May 2004 ratified as follows: Director Ferryman: $510.00 Director Perry: $680.00 President Schafer: 1020.00 + $31.50 Vice President Woodside: $510.00 Director Worthington: $1020.00 + 30.50 .......................... END OF CONSENT CALENDAR .......................... WRITTEN COMMUNICATIONS Ms. Revak reported there were no written communications received. PUBLIC COMMENTS There were no public comments made. MANAGER'S REPORTS REQUEST FOR ADJUSTMENT OF COMPENSATION FOR GENERAL COUNSEL CLOSED SESSION - PERSONNEL EXCEPTION GOVERNMENT CODE SECTION 54957 AFTER RECONVENING FROM CLOSED SESSION, TAKE ACTION WITH RESPECT TO THE REQUEST IN OPEN SESSION. Board determined a closed session was not necessary. Mr. Burns requested an increase in rates as follows: Position Former Rate Proposed Rate Senior Attorney, Partner $135 $155 Associate Attorney $100 $115 Law Clerk $65 $75 Paralegal $60 $70 Director Perry motioned to approve the compensation adjustment for General Counsel as requested. Director Woodside seconded. Motion carried 5 -0. i 1 0 • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING Q, JUNE 10, 2004 PAGE 5 REQUEST FOR ADJUSTMENT OF COMPENSATION FOR DISTRICT MANAGER/ENGINEER CLOSED SESSION - PERSONNEL EXCEPTION GOVERNMENT CODE SECTION 54957 AFTER RECONVENING FROM CLOSED SESSION, TAKE ACTION WITH RESPECT TO THE REQUEST IN OPEN SESSION. Board determined a closed session was not necessary. Mr. Hamers requested a rate increase as follows: Engineering and Management Draftsman Inspector Retainer 2 -man survey crew Current Rate $70 /hr 50 /hr 45 /hr 1,200 /mo 160/h r Proposed Rate $80 /hr 60 /h r 55 /hr 1,300 /mo 185/hr Director Perry motioned to approve the compensation adjustment for District Manager /Engineer as requested. Director Woodside seconded. Motion carried 5 -0. ANTI - SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT REPORTS POLICE REPORT Mr. Hamers presented a memorandum providing the statistics for the month of May 2004. The scavenging statistics for May are as follows: Location Calls for Service Cite /Arrest Area 1 0 3 Area II 0 0 Area III 7 0 Area IV 0 0 TOTAL 7 3 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING .TUNE 10, 2004 PAGE 6 DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT Mr. Hamers presented the ordinance enforcement summary report for the five -week period beginning April 19, 2004 and ending May 23, 2004. Mr. Shef's summary report contained the following information: • 20 flyers given to residents and 12 containers oversprayed and ID tagged. CMSD STRATEGIC PLAN YEAR 2003/2004 ACTION ITEMS Mr. Hamers presented the 2003/2004 Strategic Planning Action Items, reporting the District is on schedule for all items. Received and filed. SEPARATION OF DISTRICT FROM CITY FOLLOW UP ACTION TO .JUNE 2, 2004 SPECIAL MEETING TENANTIMPROVEMENTS Mr. Fauth reported Staff completed the software demonstrations and has chosen and ordered a package from Springbrook Software Inc. Staff requested a discount and all software training to be held on -site. Mr. Fauth reported Ms. Cynthia King has been hired as accountant for the District. Mr. Fauth reported escrow closed on the new building and all documentations received. General contractor quotations were due by June 4 and were not received because of the lack of time to put together a credible quotation. Both potential bidders are working to ascertain what will be needed to update the new facility and prepare a quote. Mr. Fauth presented photographs of the facility in its current condition. Mr. Fauth has been in contact with TRC to ensure the phone systems will be up and running in a timely manner. CaIPERS resolution due to be signed at the June 16, 2004 meeting. Mr. Fauth and Ms. Davis have been working to finalize the banking needs for the District. a 1 C7 • • ` COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 • PAGE Director Worthington requested a temporary Costa Mesa Sanitary District sign be placed out front of the new building as soon as possible. SECOND DRAFT OF CITY OF COSTA MESA/CMSD AGREEMENT Mr. Burns presented the second draft of the City of Costa Mesa /CMSD Agreement modified in light of the understanding reached with Mr. Allan Roeder. The agreement provides for the continued use of Field Services personnel and spells out their performance standards. It describes the compensation to be paid to the City and the fact that this arrangement is for a one -year term, subject to renewal upon the further agreement of the parties. The agreement also reflects the fact that the District will not be contracting for continued financial services with the City. Mr. Hamers discussed the fact that the new facilities will not be ready to move into when the District's lease with the City expires. There will • be a need to rent the current facilities from the City of Costa Mesa until new building is ready for occupation. Director Ferryman motioned to authorize Mr. Hamers to negotiate a reasonable rental agreement with the City of Costa Mesa to rent the current facilities for the additional time required. Director Woodside seconded. Motion carried 5 -0. RECYCLING REPORTS WASTE DIVERSION REPORT - MAY 2004 The Waste Diversion Report for May showing a 50.65% diversion rate for the City of Costa Mesa and a 51.83% diversion rate for the County was received and filed. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR MAY 2004 SERVICES Ms. Revak reported the CR Transfer invoice was received late and Staff is in the process of reconciling it. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 PAGE 8 • COSTA MESA DISPOSAL REQUEST FOR FULLY - AUTOMATED SERVICE AND PRESENTATION OF MASTER PLAN Mr. Hamers reported a written request has not yet been received. Discussion was ' held regarding the anticipated move to fully- automated service. PUBLIC SAFETY EMERGENCY SERVICES EXPO - SUNDAY, MAY 16, 2004 Mr. Fauth reported the 10th annual Public Safety Emergency Services Expo was held on Sunday, May 16, 2004, at Fire Station #4, 2300 Placentia Avenue. Mr. Fauth reported he learned upon arrival that there was no spot reserved for the District booth. A location was found in the rear of the Expo. Mr. Fauth reported the truck from CR Transfer with the bales of recycled materials did not arrive. Mr. Fauth suggested a reminder from Staff the day prior to the event to CR is Transfer regarding the recycled materials display as well as confirming a better location for the booth with the fire department. RECYCLING COMMITTEE - TUESDAY, .TUNE 8, 2004 - 9:00 A.M., CRA A DIRECTORS WORTHINGTON AND SCHAFER STRATEGIC PLANNING 2004 - PUBLIC OUTREACH - CLASSROOM RECYCLING PROJECTS Director Worthington reported they discussed accomplishments of the prior school year and plans for the next school year. Director Worthington suggested the program be limited to 6t' grade classes only. Mr. Harriers inquired as to the District's display at City Hall. Ms. Revak reported the display was removed from the showcase to make room for the next display. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 PAGE 9 • ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS - (WDR) GENERAL UPDATE Mr. Hamers reported the "Legal Authority" ordinance will be presented to the Board at the July regular meeting. The deadline for adoption of legal authority is July 30, 2004. After the Board reviews the ordinance, Mr. Hamers will prepare a submission to the State Regional Water Quality Control Board detailing how the Costa Mesa Sanitary District is meeting legal authority. Director Woodside thanked Mr. Hamers and Mr. Burns for helping to pave the way for the District. PROJECT NO'. 168 - TUSTIN PUMP STATION RELOCATION AGREEMENT WITH CITY OF NEWPORT BEACH TO CONSTRUCT DISTRICT SEWER LINES • Mr. Hamers reported the Board approved in concept for the City of Newport Beach to construct District sewer lines because the County Road Department and the City of Newport Beach have decided to realign the intersection and Irvine Avenue, to the north and south. The agreement is not yet ready for the Board to review and will be presented at the July regular meeting. PROJECT NO. 171 - TUSTIN PUMP STATION FORCE MAIN REHABILITATION PROPOSAL TO BEGIN DESIGN PHASE Mr. Hamers presented Project No.171, Tustin Pump Station Force Main Rehabilitation, Proposal to Begin Design Phase. The project was approved in the 2003 -2004 capital improvement program. Due to the length of the line, the project will be divided into phases and the limits of Phase I will be determined during the design phase. The proposal is to complete the design phase of the project at the hourly rates shown below, not to exceed $40,000. Engineer $ 70 per hour 2 man survey crew $185 per hour • 3 man survey crew $210 per hour COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 PAGE lO • Director Perry motioned to approve Project No. 171, Tustin Pump Station Force Main Rehabilitation Proposal to Begin Design Phase. Director Ferryman seconded. Motion carried 5 -0. PROJECT NO. 173 - SOUTH COAST PLAZA PUMP STATION FORCE MAIN PROPOSAL TO BEGIN DESIGN PHASE Mr. Hamers presented Project No.173, South Coast Plaza Pump Station Force Main Proposal to Begin Design Phase. The project was approved in the 2003 -2004 capital improvement program. The line ruptured on June 30, 2002, and during an inspection at that time it was found that the line was deteriorating to a point where it should be replaced. The proposal is to complete the design phase of the project at the hourly rates shown below, not to exceed $15,000. Engineer $ 70 per hour 2 man survey crew $185 per hour 3 man survey crew $210 per hour Director Perry motioned to approve Project No. 173, South Coast Plaza • Pump Station Force Main Proposal to Begin Design Phase. Director Woodside seconded. Motion carried 5 -0. Application for funding through Orange County Sanitation District was discussed. TREASURER'S REPORTS Mr. Puckett provided a brief report regarding investments. Mr. Puckett thanked the District for the recognition from the Board. ATTORNEY'S REPORTS RESOLUTION NO. 2004 -681, ORDERING THAT PUBLICATION OF ORDINANCE NO. 45 PROVIDING PURCHASING AUTHORITY FOR AN INDEPENDENT PURCHASING SYSTEM HAS OCCURRED Mr. Burns introduced Resolution No. 2004 -681, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 45 PROVIDING PURCHASING AUTHORITY FOR AN INDEPENDENT PURCHASING . SYSTEM HAS OCCURRED. COSTA MESA SANITARY DISTRICT . Wu MINUTES OF BOARD OF DIRECTORS REGULAR MEETING t : JUNE 10, 2004 • PAGE 11 Director Woodside motioned to adopt Resolution No. 2004 -681. Director Ferryman seconded. Motion carried 5 -0. Director Woodside motioned to discuss an item not on the agenda determining the need arose after the agenda was prepared and there is a need to take immediate action. Director Ferryman seconded. Motion carried 5 -0. President Schafer reported the 2004 CASA Annual Conference is going to be held on August 4 through August 7, 2004, at the Hyatt Regency in Monterey, California. Directors Schafer, Perry, and Ferryman expressed an interest in attending the conference. Director Perry motioned to approve attendance at the 2004 CASA Annual Conference for Directors Schafer, Perry, and Ferryman. Director Ferryman seconded. Motion carried 5 -0. Ms. Revak will make the reservations for the three directors. LOCAL MEETINGS • ORANGE COUNTY SANITATION DISTRICT (OCSD) REGULAR MEETING - MAY 26, 2004 (DIRECTOR FERRYMAN Director Ferryman attended the May 26, 2004, meeting and reported the following: ❖ Steve Anderson nominated as Chairman for next year ❖ Nominations for Vice Chair next meeting – Director Ferryman to be nominated SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) MEETING - MAY 27, 2004 (DIRECTOR PERRY) ❖ Budget approved ❖ Funding request — $58 million request for Prado Dam, $13 million received ❖ Final negotiations for Green River golf course INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) • President Schafer attended the June 1St ISDOC meeting and reported the following: COSTA MESA SANITARy DISTRICT ju MINUTES OF BOARD OF DIRECTORS REGULAR MEETING " .TUNE 10, 2004 i PAGE 12 • ❖ President Schafer won the reelection to LAFCO held on May 27 ❖ Discussion held on having an ethics workshop and program for the July 29th quarterly meeting LOCAL AGENCY FORMATION COMMISSION ( LAFCO) President Schafer attended the June 9th LAFCO meeting and reported the following: ❖ Irvine annexation to City of Irvine from County of 1,662 acres of unincorporated County territory in Irvine sphere of influence. Will continue on July agenda. ❖ Selection Committee new representative Dr. Bob Bower and Patsy Marshall named as Alternate. ❖ Lawsuit on Great Park ❖ LAFCO to host conference in Anaheim FINAL BUDGET FOR FY 2004 -2005 Mr. Hamers received a letter from Mr. Bob Aldrich, Acting Executive Director, Local Agency Formation Commission, dated May 14, 2004, . stating the final LAFCO budget for FY 2004 -2005 was adopted. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) President Schafer attended the CSDA Government Affairs Day and Local Coalition as well as CSDA Board meeting (May 11, 12, and 13, 2004). ❖ President Schafer will attend Chapter Roundtable on June 11, 2004. ❖ President Schafer will attend legislation meeting June 18, 2004. OLD BUSINESS Discussion on property tax revenue and special districts. NEW BUSINESS MEMBERSHIP IN COSTA MESA HISTORICAL SOCIETY Director Ferryman motioned to renew the District's membership in the Costa Mesa Historical Society and meeting room fee in the amount of $250.00. Director Perry seconded. Motion carried 5 -0. • LL • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 10, 2004 PACE 13 ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Ferryman suggested having a barbeque for the Rangels. Director Ferryman will discuss details with Ms. Revak. Director Woodside will be unable to attend the June 23, 2004, OCSD meeting. Director Perry will attend. President Schafer thanked Mr. Jim Atkinson for attending the meeting. ADJOURNMENT At 5:21 p.m., President Schafer adjourned the meeting. SECRETARY PRESIDENT SXNIr,�RpO ' He auo 0 • V. � N ♦ r ... ww yc��pORA��,� • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING JUNE 16, 2004 The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed Special Meeting on June 16, 2004 at 11:30 a.m., in Conference Room 3A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Arlene Schafer, Greg Woodside, James Ferryman, Arthur Perry Dan Worthington Staff Present: Robin B. Hamers, Manager /District Engineer; Thomas A. Fauth, Assistant Manager; Joan Revak, Clerk of the District; Alan Burns, General Counsel; Marc Puckett, Treasurer; Bobby Young, Accountant Others Present: Wendy Davis, CBIZ Accounting, Tax & Advisory of Orange County, Inc. Cynthia King, 826 S. Yellowstone Way, Anaheim Hills I. Public Comments There were no public comments made. II. California Public Employees' Retirement System (CaIPERS) Mr. Fauth presented an overview of the CaIPERS Contract. Annual costs of the proposed CaIPERS Contract were approved by the Board of Directors at the June 2, 2004 Special Meeting. Director Ferryman motioned to approve the Contract between the CaIPERS Board of Administration and the Costa Mesa Sanitary District Board of Directors. Director Woodside seconded. Motion passed 4 -0 with Director Worthington abstaining. • Director Woodside motioned to adopt Resolution CMSD- 2004 -683 authorizing a Contract with CaIPERS. Director Perry seconded. Motion passed 5 -0. Costa Mesa Sanitary District Minutes of Special Meeting Held June 16, 2004 Page 2 III. Appoint Wendy Davis as CMSD Treasurer Effective July 1, 2004 • A Professional Services Agreement between the Costa Mesa Sanitary District and CBIZ Accounting, Tax & Advisory of Orange County, Inc. for CBIZ to provide a contract District Treasurer was presented. Director Ferryman motioned to approve the Agreement. Director Woodside seconded. Motion passed 5 -0. Director Perry motioned to direct Staff to obtain a Bond for Wendy Davis subject to SDRMA recommendation for the appropriate amount. Director Ferryman seconded. Motion passed 5 -0. Director Perry motioned to direct the District Clerk to administer Oath of Office to Wendy Davis to become District Treasurer effective July 1, 2004 after the Bond is secured. Director Ferryman seconded. Motion passed 5 -0. IV. CMSD Administrative and Personnel Rules and Regulations Mr. Fauth presented an update on the status of CMSD Administrative and Personnel Rules and Regulations. Staff will continue working on the final documents and will present to the Board of Directors at a future Special Meeting. C] V. Approve CMSD Job Descriptions, Salary Structure and Benefit Package Effective July 1, 2004 and Approve Resignation from City of Employees Management Analyst, Clerk of the District and Permit Processing Specialists (2) Mr. Hamers noted that the Board has previously been provided with proposed job descriptions, salary structure and benefit package. All positions were analyzed with comparisons made with similar Districts, the City of Costa Mesa Salary Schedule, and the 2003 -04 Special District Administrative Salary and Benefits Survey compiled by the California Special District Association and Industry Insights, Inc. Mr. Hamers advised the Board that City of Costa Mesa policy is to give two weeks notice of resignation and the City has requested such from the four City of Costa Mesa employees assigned to the CMSD. Ms. Davis informed the Board that she is working on the employee health benefits package with CalPERS and outside contractors. It was suggested that CSDA and CASA be contacted for quotes on insurance coverage for District employees. • Protecting our community's health 6y providting solid waste and sewer colrection services. costamesasanitarydutrict. org r Costa Mesa Sanitary District + Minutes of Special* Meeting Held June 16, 2004 Page 3 • Director Perry motioned to approve the proposed CMSD job descriptions, salary structure and benefit package effective July 1, 2004. Director Worthington seconded. Motion passed 5 -0. The Board of Directors directed the Manager to write offers of employment to the Assistant Manager, Clerk of the District and the two Permit Processing Specialists. Director Ferryman motioned to approve an interim agreement with Accountant Cynthia King. Director Perry seconded. Motion passed 5 -0. VI. Progress on Items Pertaining to New CMSD Headquarters Mr. Fauth presented an update on. items pertaining to the District's new headquarters at 628 W. 19th Street, Costa Mesa. A quote was received from KDC Construction in the amount of $161,660 for all tenant improvements. Another bid is expected imminently. Ms. Davis informed the Board that pricing for CMSD services required had been requested from Bank of America and Staff is awaiting a fee schedule. Meetings are scheduled with multiple vendors and banks. • Mr. Fauth reported that Springbrook has agreed to provide training at the District site and the Agreement includes a 365 -day warranty period. Director Ferryman motioned to ratify the Agreement with Springbrook for Accounting Software. Director Perry seconded. Motion carried 5 -0. • The Agreement with TRC for computer hardware, software and installation is being reviewed by the Attorney for the District and will be brought back for ratification at a future special meeting. VII. Set Special Meeting Date A Special Meeting is scheduled for Wednesday, June 23, 2004 at 8:00 a.m. President Schafer adjourned the meeting at 1:00 p.m. Secretary President Protecting our community's fiw4h 6y pmviding solid waste and sewer coactwn services . costamesasanitarydustrict org e �S�SANIT�Ry OR 0 V � y COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING JUNE 23, 2004 The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed Special Meeting on June 23, 2004 at 8:00 a.m., in Conference Room 1A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Arlene Schafer, James Ferryman, Arthur Perry, Dan Worthington Staff Present: Robin B. Harriers, Manager /District Engineer; Thomas A. Fauth, Assistant Manager; Joan Revak, Clerk of the District; Alan Burns, General Counsel; Marc Puckett, Treasurer Others Present: Wendy Davis, CBIZ Accounting, Tax & Advisory of Orange County, Inc. Cynthia King, 826 S. Yellowstone Way, Anaheim Hills I. Public Comments There were no public comments made. II. CMSD Administrative and Personnel Rules and Regulations Mr. Hamers advised the Board of Directors the Administrative and Personnel Rules and Regulations mirror those of the City of Costa Mesa. Mr. Burns confirmed he has reviewed the Personnel Rules and Regulations, however, he requested approval of the Administrative Regulations be continued until a future date. Mr. Fauth noted the Personnel Rules establish a two -tier system in which those presently employed with the District will have vested rights to their job and do not have to serve a probationary period. New employees serve at the pleasure of the employer, the Costa Mesa Sanitary District. • Director Worthington motioned to approve the Personnel Rules and Regulations and to continue the Administrative Regulations until a later date. Director Perry seconded. Motion passed 4 -0. Costa Mesa Sanitary District Page 2 Minutes of Special Meeting Held June 23, 2004 • III. Agreement with Accountant Cynthia King An Agreement with Cynthia King to provide Accountant services to the District through June 30, 2004 was presented. Director Perry motioned to ratify the Agreement subject to District Counsel review and approval as to form. Director Worthington seconded. Motion passed 4 -0. IV. Progress on Items Pertaining to New CMSD Headquarters Mr. Hamers gave an update on progress on items pertaining to the new CMSD Headquarters. Bids were invited from construction contractors to perform tenant improvements to the building. Two bids came in; one of the bidders was unable to provide a Bond and was, therefore, disqualified. Mr. Fauth presented an Agreement with Cirks Construction to perform tenant improvements at 628 West 19th Street, Costa Mesa, California as part of the rehabilitation of a building to be used as District headquarters. The Contractor agrees to commence the work to be performed under this Agreement within five days of receipt of the "Notice to Proceed" and to diligently prosecute the work to completion before the expiration of 60 calendar days. Director Worthington motioned to approve the Agreement with the stipulation that in consideration for granting additional time to complete the job, the Board requests the liquidated damages be revised to $250.00 per calendar day. Director Perry seconded. Motion passed 4 -0. Director Ferryman motioned to approve agreement with the Gas Company to provide service to the building at 628 West 19th Street. Director Perry seconded. Motion passed 4 -0. Director Ferryman motioned to ratify agreement with TRC for software and installation in an amount not to exceed $75,000 subject to review and approval as to form by District Counsel. Director Perry seconded. Motion passed 4 -0. V. Workers Compensation Insurance Ms. Davis presented documents from the Special District Risk Management Authority ( SDRMA) to provide Workers Compensation coverage for the District. After the end of one year, SDRMA will reevaluate the cost based on the District's trend of claims. Director Worthington motioned to approve Resolution 2004- 684, approving the form of and authorizing the execution of a fifth amended joint powers agreement and authorizing participation in the Special District Risk Management Workers' Compensation Program. Director Perry seconded. Motion passed 4 -0 0 (Protecting our community's health 6y proviSing sofid waste and sewer colrection services. costamesasanitarydsstnct. org Costa Mesa Sanitary District Minutes of Special Meeting Held June 23, 2004 Page 3 • Director Ferryman motioned to approve Resolution No. 2004 -685, authorizing application to the Director of Industrial Relations, State of California for a Certificate of Consent to Self Insure Workers' Compensation Liabilities. Director Worthington seconded. Motion passed 4 -0. VI. Audit by Conrad & Associates A request was made to Conrad and Associates to prepare the CMSD audit for 2003- 04. Staff will work with City of Costa Mesa Staff and in December CMSD will make arrangements to have final audit performed. Director Ferryman motioned to approve Audit by Conrad & Associates at a cost not to exceed $6,300, subject to an acceptable legal relationship determination by District Counsel. Director Perry seconded. Motion passed 4 -0. VII. Agreement for Banking Services Ms. Davis advised the Board that proposals for banking services were requested from two banks. The District already has a relationship with Bank of America through services currently provided through the City of Costa Mesa and B of A also provided additional incentives. • Director Worthington motioned to ratify agreement with Bank of America to provide banking services to the District. Director Perry seconded. Motion passed 4 -0. VIII. Agreement for Payroll Services Ms. Davis reported that payroll services through Paychex and CBIZ Accounting Services were investigated. The District will be able to perform their own payroll services after completing training, beginning in January 2005. Director Ferryman motioned to approve agreement with Paychex for payroll services subject to review and approval as to form by District Counsel. Director Perry seconded. Motion passed 4 -0. IX. Health Benefit Providers Ms. Davis reported a number of health benefits proposals have been investigated by District Staff. Presently, CalPERS through the City of Costa Mesa covers Staff. Further investigation into other health plans is advised, however, continued health benefits for District Staff is required. Director Worthington suggested obtaining coverage through CalPERS for approximately six months while a market survey is be completed. Protecting our community's health 6y providing sofid waste and sewer collection serrvices costamesasanstarycfrstHa org Costa Mesa Sanitary District Minutes of Special Meeting Held June 23, 2004 Page 4 Director Perry motioned to approve the CalPERS benefit package and adopt CMSD Resolution No. 2004 -686, Electing to be subject to Public Employees' Medical an Hospital Care Act and Fixing the Employer's Contribution for Employees and the Employer's Contribution for Annuitants at Different Amounts. Director Worthington seconded. Motion passed 4 -0. President Schafer adjourned the meeting at 9:59 a.m. Secretary President T'rotecting our community's health 6y pmzOng solid waste and sewer coQection services. costamesasanitarydui tact. org 0 is • TO: Costa Mesa Sanitary District FROM: Ron Shef, Ordinance Enforcement Officer DATE: June 20, 2004 Subject: Ordinance Enforcement Summary Report This report covers a four -week period beginning May 24, 2004 and ending June 20, 2004. Twenty -eight courtesy flyers were left or given directly to residents with six containers over- sprayed due to graffiti. During the second week of this period, Memorial Day, falling on the Monday of the week, caused collection to be off schedule by one day. With respect to an ongoing problem on E. 20th St., resolution seems to have been made, at least temporarily. The complaining neighbor called the District to thank us for clearing up this situation and hopefully won't have to call us again. In addition four other problems involving complaints referencing Indus ® St. Tustin, Av., Cornell and Monte Vista have hopefully been settled although sometimes dormancy is short lived. Photos continue to be taken for documentation on these and other complaints. Pickups and deliveries as required by staff were made such as delivery of certificates and plaques made to several schools in the District honoring certain teachers relative to school and District related programs. Currently, the large item collection program is in progress and will continue through August. Residents constantly ask the Enforcement officer about the program. Each year less scavenger action has been noticed and hopefully this year will be less that last year. Possibly, this will mirror the decreased scavenger action noticed with our new containers. CMSD seer: 714- 764-GW , . CMSD HQ Schedule 07/1412004 05/07/2004 Staff met 3rd time with Vertex to review colors, carpeting, furniture, room la outs; Finalize furniture order - Have purchase agreement ready for 6 -10 -04 Board Mt 06/02/2004 CMSD Board approved MIS proposal NTE $75K, S ringbrook SAN, NTE $65K; Informed Board of Vertex furniture - 50°% of $112K includes $41K disco 06/04/2004 Completed Accountant Interviews - selected Michelle Holguin 06/04/2004 Closed Escrow on HQ 06/04/2004 Arrange for phone service in HQ - Asst Mgr gave verbal ATP to TRC for proposal = cabling, computers, servers, phone system, Mark Serres, Matt Brawle (323- 353 - 6863), Mike Onifer (323- 654 -6504) bids to carriers, data line bids; 06104/2004 GC Quotations due to CMSD at 1400hrs - did not arrive; Called RTA for inquiry. 06/07/2004 Setup Payroll system through contractor if not done in -house - Selected Paychex - meet with Paychex 6 -9 -04 Tina Roman, 4/438 -4000 x4710 06/07/2004 MCWD - water on NO 6 -8 -04 in CMSD name 06/07/2004 SCE - Electric on A/O 6 -8 -04 in CMSD name 06/07/2004 Asst Mgr confirmed So Cal Gas Cc does not have service at HQ - requested survey site - provide estimate to add gas to site 06/0712004 Asst Mgr meeting with OCE - Tony Cacciapa lia - copier service options 06/07/2004 Asst Mgr Request Vacate Excess ROW -Susan S. 06/08/2004 06/09/2004 Union Bank 0900 Mtg 06/09/2004 Sprin brook Welcome Call - 1000 000/2004 Paychex 1000 Mt - Tina Roman 4/438 -4000 x4710 06/1012004 CMSD Board Mtg: 1600 hrs - Historical Society 06/15/2004 Schedule IT wiring in HQ 06116/2004 Obtain all District licensed software, CDs, licenses, 06/16/2004 District staff paid as City employees submit letter of resignation to City of Costa Mesa Personnel - Effective Last Day as City Employee: 6 -30 -04 06/15 - 07/15/20 Staff Confirming Details for Banking, Payroll, Employee Benefits, Provider selections 07/06/2004 CMSD - City of Costa Mesa Interim Agreement signed 07/06/2004 Asst M r Installs S rin brook Software on 2 computers: Training-on 7 -6 thru 7 -8, Treasurer, Accountant & Permit Processors trained on Permits modu 07/07/2004 Banking Established with Bank of America: Checks, Deposit Slips, Account Representatives/Signatures 07/07/2004 Contractor Meeting #1: Asst Mgr meets with KDC Construction, Crowell Electric, RTA reps and resolve Request For Information (RFI) #1 and #2 07/07/2004 Staff Orders District Monument Sign - temporary from Sign Depot - $260.00 07/08/2004 Tenant Improvement / Demo Pies taken 07/13/2004 Future Home of CMSD sign installed on Monument 07/01- 14/2004 Staff Refined Interim Budget for Board Mt g. 7 -14 -04 07/14/2004 Staff completed and submitted Plumbing Fixture Approval 07/14/2004 Contractor Meeting #2: Asst Mgr meets with KDC Construction, RTA reps and resolve Request For Information RFI #3 07/14/2004 Staff Faxed The Gas Cc Application for service to Vince Belleville 714- 432 -5020 Voice 714 - 432 -6031 07/14/2004 Confirmed Payroll Setup complete with Paychex - Tina Roman 714 -438 -4000 x4710 07/14/2004 Asst Mgr Approved DSL Internet service order for new HQ - new e -mail addresses; Point of Contact (POC ): Mike Onifer RC): 310 - 989 -4549 07/15/2004 Staff TRC Telecon regarding MIS Agreement, services, hardware and software, 07/26/2004 Order new business cards with new phone numbers, HQ address, e-mail address Arrange for security service in HQ - Have service agreement ready for 8 -12 -04 Board Mt Arrange for landscaping contractor service at HQ - Have service agreement ready for 8 -12 -04 Board Mt 07129/2004 Arrange for housekeeping service at HQ - Have service agreement ready for 8 -12 -04 Board Mt 08/09/2004 Arrange for moving company services for B -24 -30 -2004 move to HQ - Have service agreement ready for 8 -12 -04 Board Mtq 08/27/2004 Consider Leasing low- emissions Vehicle (hybrid?) 08/24- 31/2004 Move into District HQ CMSD Staff: 714 -754 -5043 ow- 628 W 19 St — CMSD Headquarters Improvements 7 -14 -04 — "Future Home of CMSD" Floor Conference Room 1" Floor Restroom 2d Floor Restroom 2d Floor Conference Room .i 0 • • ,11111,1 July 1, 2004 Costa Mesa Sanitary District Mr. Robin B Hammers PO Box 1200 Costa Mesa Ca 92628 Dear Rob, RECEIVED J U L - 2 2004 COSTA MESA SANITARY OISTRIC, First, I would like to apologize on behalf of Costa Mesa Disposal (CMD) on the delay to present this letter to the Costa Mesa Sanitary District (CMSD) Board. The transitional process of moving the office and operations has taken longer than expected. Converting and integrating two (2) computer systems, customer service, and drivers was a time consuming process that is almost complete. CMD is formally requesting permission from the Board to fully automate the residential refuse collection for the City of Costa Mesa. Our goal is to implement this process within the next sixty (60) to one hundred and twenty (120) days. As discussed in our previous presentation the following items are being requested: 1) Fully automate the residential refuse service at no charge to the CMSD. Benefits to Automation • Reduction in damaged barrels • Reduction in size of fleet and truck traffic • Reduction of driver injuries and claims • Reduction in insurance costs Obstacles in Automation: • Excess trash outside the container • Streets/ Alleys with barriers to automation • Customer acceptance to automation Proposed Solutions to Obstacles: • Drivers/ management will work with residents to ensure that the majority of the trash is contained within the barrel. However, an occasional heavy duty garbage bag next to the container will be picked up. • CMD recognizes that all areas of the city cannot be automated. As a result, some semi - automated routes will remain. • CMD will work with CMSD to continue to educate Costa Mesa residential customers on the benefits of automation. 2) CMD is requesting to delete the C'MSD phone number from the green cards in an • effort to have all Costa Mesa residents call the CMD customer service center. • Once CMD is granted permission all literature will be reprinted and redistributed. 3) CMD is requesting to take over the container management program that includes container inventory, resident requests, and changing containers as needed. CMD has been using one fully automated truck to service residents within the City while painting and refurbishing older CMD equipment with the intent to continue servicing in a semi - automated process. Over time, in some areas of the City the process has become fully automated. As a result, this unplanned pilot program has gained acceptance amongst residents and has shown positive results. Please feel free to contact us directly to discuss or clarify our proposed request to fully automate the residential collection in the City of Costa Mesa. Sincerely, Dan Otting� Ronnenberg Cc The Board Joan Revak Tom Fauth U !_ g A 7 = COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING MARCH 29, 2004 The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed Special Meeting on March 29, 2004 at 6:00 p.m., in Conference Room 1A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Arlene Schafer, Greg Woodside, Arthur Perry, Dan Worthington Staff Present: Robin B. Hamers, Manager /District Engineer; Thomas A. Fauth, Assistant Manager; Joan Revak, Clerk of the District; Alan Bums, Legal Counsel; Marc Puckett, District Treasurer; Debbie Bjornson and Denise Gilbert, Permit Processing Specialists • Others Present: David Ronnenberg and Dan Offing, Representing Costa Mesa Disposal and CR &R, 11282 Western Avenue, Stanton, California I. Presentation by Costa Mesa Disposal (CMD) and CR &R for Improvements to Trash Collection Program Including Request for Implementing Fully Automated Service. CR &R purchased 100% of CMD stock and a straight stock sale leaves the Costa Mesa Disposal Corporation intact. The purchase does not change the contractual relationship between the District and CMD. David Ronnenberg of CR &R and CMD gave a power point presentation showing the history, staffing and services being provided by the companies. The following items were covered: CMD will be painting the trucks blue to match CR &R trucks and the phone number of CMD will be added below the CMD name. ® CMD will offer recommendations for revising the green regulations card including deletion of the CMSD phone number in order to have all resident calls fielded by CMD administrative staff in Stanton. !'rntci firlg out i'illlllllll111f 1'.� hid %1Il 6l' Itl "o('IdIlk� S( III (I tlS/i dllti St rt 9.T i "(��%i'i flt�Il Sir('IieS. ( � )'1t'I1IliSdSIIII It( n'dIstnif.0 n I Costa Mesa Sanitary District Minutes of Special Meeting Held March 29, 2004 Page 2 CR &R is performing a waste characterization study of all its clients including the CMSD and the results will be available by the end of the 1s' quarter 2004. CMD will utilize the CR &R computer operations personnel to convert the CMD database that is based on property addresses to a system based on assessor's parcel numbers in order to coincide with the District's database. The end result will be a simplification of the database resulting in a more effective occupancy count and ability to analyze and manage the data. • CMD supports implementation of a variable rate structure and upon upgrading the CMD database, options will be presented to the Board. • CR &R currently processes 100% of the District's trash through the Materials Recovery Facility. Batteries are being removed by magnetic separation and are being recycled. CR &R supports the District's consideration of a school battery- recycling program to educate students. CMD is prepared to request approval to provide fully automated service at no cost to the District. CMD can retrofit the CMD trucks with new arms. CMD recognizes the worker's compensation and insurance costs will be greatly reduced with a fully automated system plus CR &R provides fully automated • service to 100% of the agencies they serve. Details of a fully automated program, including how to handle excess trash outside the containers, were discussed and will be submitted as part of the written request to provide fully automated service. • CMD is prepared to permanently take over the container management program including keeping a container inventory, handling resident requests, and changing out containers as necessary. CMD recognizes the District's desire for the use of environmentally safer fuels and understands the South Coast AQMD's regulations and the California Air Resources Board's (CARE) regulations in this regard. New CR &R trucks use AQMD and CARB approved fuels. CR &R desires consistency between CR &R trucks and CMD trucks so trucks identical to CR &R trucks would most likely be used inside the District. Mr. Ronnenberg acknowledged that a written request to the Board is required to implement the above changes. The Board of Directors complimented Mr. Ronnenberg and Mr. Otting on their presentation and added the Board looks forward to moving ahead with the proposed improvements. • Protecting our communitv's (eattfi fiv prmdirnq .sohuf waste and .seiner coQ -ction ser"ces. costamesasanitandrstnct.org Costa Mesa Sanitary istrict Minutes of Special Meeting Field March 29, 2004 (0 II. Public Comments • There were no public comments made. President Schafer adjourned the meeting at 7:30 p.m. Secretary" Page 3 Protecting our community's health 6y providing soCufwaste andsewerco!!ection services. costa mesasa nitarydistrict. org COST A 5WESA.SA9VIT,A`R.`Y�DI.S`TWC7 Memorandum ... an Independent SpeciafDistrict To: Board of Directors Staff From: Robin B. Harriers, Manager /District Engineer Date: January 22, 2004 Subject: Update on CMD Management of Trash Collection Operation Staff members Rob Harriers, Tom Fauth and Joan Revak met with CR &R officials David Ronnenberg and Dan Otting on January 21, 2004 to discuss the progress of CR &R's reorganization of the Costa Mesa Disposal (CMD) management. Various items were discussed and the progress of each is shown below. • In review, CR &R has purchased 100% of the CMD stock and a straight stock sale leaves the CMD Corporation intact. The purchase does not change the contractual relationship between the District and CMD, therefore, all references below are to CMD. 1� The discussion covered the following items: • CMD will be painting the trucks blue to match the CR &R blue trucks. The phone number of CMD will be added below the CMD name. • The CMD property on Placentia Avenue is up for sale and the CMD operation will remain at the Placentia Avenue headquarters until close of escrow. • CMD Office Manager Dee Cernak is the only previous CMD office worker still in employment and will stay on to assist new CMD Operations Manager Dan Otting. • CMD desires the CMSD phone number to be deleted from the green regulations card in order to have all resident calls be fielded by CMD administrative staff in Stanton. CMD will furnish other recommendations for revising the regulations card. 1totecting our community's heafth 6y providing solid waste andsewer cofiection services. costamesasanitarydistrict. org Update on C® Management of Trash Collection Program January 22, 2004 Page 2 ' • David Ronnenberg will revise the item on the Waste Diversion Report shown • as "Other (Concrete /Asphalt/Wood)" to delete the reference to concrete, asphalt, and wood and substitute a more correct explanation for the category that includes food, small particulate matter and inert materials. • CR &R is performing a waste characterization study of all its clients including the CMSD and the results will be available by the end of the 1St quarter 2004. • CMD will be writing a letter to Roto Industries that the lifting bars supplied by Roto during the standardized container rollout did not meet bid specifications and the failure of the substandard small diameter bars placed undue stress on the container material weakening it in the bar area. • CMD will utilize the CR &R computer operations personnel to convert the CMD database that is based on property addresses to a system based on assessor's parcel numbers in order to coincide with the District's database. The end result will be a simplification of the database resulting in a more effective occupancy count and ability to analyze and manage the data. • CMD supports implementation of a variable rate structure and upon upgrading the CMD database, options will be presented to the Board. The CMSD Assistant Manager previously provided a potential program to the Board. • CR &R currently processes 100% of the District's trash through the Materials Recovery Facility and batteries are being removed by magnetic separation. The batteries are being recycled and CR &R will also accept batteries obtained through a school recycling program. CR &R supports the District's consideration of a school battery- recycling program to educate students. CMD understands that the implementation of fully automated service requires Board of Director approval and is prepared to seek such approval. CMD is prepared to request approval to provide fully automated service at no cost to the District. CMD can retrofit the CMD trucks with new arms. CMD recognizes the worker's compensation and insurance costs will be greatly reduced with a fully automated system plus CR &R provides fully automated service to 100% of the agencies they serve. Details of a fully automated program, including how to handle excess trash outside the containers, were discussed and options will be presented to the Board. • CMD is prepared to permanently take over the container management program including keeping a container inventory, handling resident requests, and changing out containers as necessary. • Protecting our community's health 6y providing solid waste and sewer collection services. costamesasanitarydutnct. org • • • Update on CMD Management of Trash Collection Program January 22, 2004 Page 3 CMD recognizes the District's desire for the use of environmentally safer fuels and understands the South Coast AQMD's regulations in this regard. New CR &R trucks use AQMD approved fuels. CR &R desires consistency between CR &R trucks and CMD trucks so trucks identical to CR &R trucks would most likely be used inside the District. David Ronnenberg was very pleasant and accommodating and it appears the restructuring of CMD management by CR &R will bring the District's program into the state of the art. Staff was very pleased with the meeting. In order to bring all the above - described items into a recognizable plan, Mr. Ronnenberg will be preparing a master plan and time frame for implementation of the desired improvements. At the February regular Board meeting, Staff will be requesting the Board select a date for a special meeting to review the proposed master plan. The master plan will also include a written request from CMD to implement a fully automated program. Please call if there are any questions regarding the above information. cc: David Ronnenberg, CR &R Dan Offing, CR &R tTrotecting our community's health 6y providing solidwaste andsewercollection services. costamesasanitarydistrict. org • RBIOg([g:-L,L nN R NA911iNn (909) 674 -OM TO: District Manager/ Engineer FROM: District Counsel DATE: June 7, 2004 RE: Costa Mesa Disposal Contract Amendment Rob - the following is a proposed checklist of items for possible negotiation in any Costa Mesa Disposal (" CMD ") contract amendment: 1. We should have a clear description of CMD and how the stock is owned. 2. We need a provision that the District's consent to assignment extends to the sale of 401/o of the stock or if control of the corporation passes. 3. We should try to determine if there is any relationship between CMD and Roto Industries. 4. We should provide CERCLA indemnification and guarantees that all waste will be delivered to District's designated facility (flow control). 5. Right to direct additional services, subject to fair compensation being paid. 6. Conversion of the vehicles to alternate fuels. 7. Display on vehicles. S. Vehicle cleaning schedule. 9. Vehicles to be driven in compliance with Vehicle Code. 10. CMD shall properly cover its loads. 11. All employees shall wear uniforms with name identification. 12. Employees shall not solicit nor accept any gratuities for performing services pursuant to the franchise. TnfA Ydd ET:ZT b00Z /L0190 ,i I LAW OFFICES OF HARPER & BMS LLP A LBUrED LIABR.BY PARSNL7tSK[P INCLUDING A FAMMS10NAL C0RP0"nON 453 S. G ASS71I STREET ALAN X BURNS ORANOE, CALIFORNIA 92866 JOHN R. HARPER' COL M R BURNS (714) 771 -7723 OF COUNSEL FAX (714) 7443350 =1 A CURTIN° MICHAEL MONTOONIER ° °A PROPPSSIONAL CORPORAnON RBIOg([g:-L,L nN R NA911iNn (909) 674 -OM TO: District Manager/ Engineer FROM: District Counsel DATE: June 7, 2004 RE: Costa Mesa Disposal Contract Amendment Rob - the following is a proposed checklist of items for possible negotiation in any Costa Mesa Disposal (" CMD ") contract amendment: 1. We should have a clear description of CMD and how the stock is owned. 2. We need a provision that the District's consent to assignment extends to the sale of 401/o of the stock or if control of the corporation passes. 3. We should try to determine if there is any relationship between CMD and Roto Industries. 4. We should provide CERCLA indemnification and guarantees that all waste will be delivered to District's designated facility (flow control). 5. Right to direct additional services, subject to fair compensation being paid. 6. Conversion of the vehicles to alternate fuels. 7. Display on vehicles. S. Vehicle cleaning schedule. 9. Vehicles to be driven in compliance with Vehicle Code. 10. CMD shall properly cover its loads. 11. All employees shall wear uniforms with name identification. 12. Employees shall not solicit nor accept any gratuities for performing services pursuant to the franchise. TnfA Ydd ET:ZT b00Z /L0190 ,i I Costa Mesa Sanitary District Costa Mesa Disposal Agreement June 7, 2004 Page 2 11 CMD to report any accumulation of trash observed not put out for collection. 14. CMD shall conduct annual audit of its route including premises, containers, etc. 15. CMD shall provide to each customer on at least a quarterly basis, listing of services offered, rates, hours of operations; etc. 16. Office hours shall be at least 8am -5pm, Monday- Friday, excluding holidays. A responsible and qualified person shall be available by phone toll -free during all regular hours. Service shall be adequate to handle all calls on busiest days. Recorder of voice mail for messages with next business day follow up shall be available. 17. Log of complaints and resolution to be maintained and available to District for two years. 18. Government liaison person must be identified who will be available at all reasonable times. Cell phone to be given and/or other means by which can be reached after hours. 19. Public education — do we need more? 20. Community events support — do we need more? 21. Rates - review how calculated and what increases necessary. Should we revise? 22. Performance review each year or every two years. A. Performance review of contract, number of complaints, etc. B. Compliance with laws. C. Responsiveness to City's needs, flexibility in complying with new programs. D. Reports submitted on time and accurately. E. CMD to submit an annual review of other cities' comparable trash collection rates and a justification of CMD's rates as being reasonable. F. CMD to submit list of Board of Directors, officers and all equipment used to perform the contract. 9 G. Based on such periodic review Board of Directors will make determination as to whether to allow evergreen clause to continue or whether such term shall be wound down. 0 23. CERCLA defense records - manifests of all trash collected and where deposited. 70- Xdd ET:ZT POOZ /LO /90 d ` Costa Mesa Sanitary District Costa Mesa Disposal June 7, 2004 Page 3 24. Records of segregation of material /recycling, etc. CRT? 25. District right to demand a certified audit of CND's books. 26. CMD shall provide District with a copy of any report, complaint, pleadings or any other communication related to CND's performance of this Agreement. 27. Indemnification, etc. - needs revision? 28. Insurance - review for adequacy and form. 29. Bonds — review? 30. City's right to take over contract in the event of non - performance - use CND's equipment, etc., not a "taking" to do so because of default. 31. Rights in the event of a strike take over collection? ® 32. Events causing default {listed). 33. Penalties for various failures in service. 34. Preservation if rights of privacy of customers - contents of trash not to be invaded, etc. 35. Compliance with investigation laws. 36. Agree to fully cooperate in any review of service or billing issues. The above is simply meant as a checklist for internal discussion. aL Alan R. Bums District Counsel e ffi YVA PT : zi VOOZ /L0190 FALCON WATERfREE TECHNOLOGIES Title: Savings Examples Issued: 12/19/03 Page: 1 of 1 Savings Examples The table below illustrates how dramatically Falcon new buildings /renovations, reduced maintenance time Waterfree urinals generate savings, whether you install and oice cleaning requirements, elimination of plumbing a few or retrofit an entire facility. As you review these emergencies, elimination of odor and odor control products, examples. please note that some organizations have found and improved hygiene as the result of toucr. -free operation a single flush urinal can cost up to $1,000 per year to and no standing water exposed to the restrocm environment. maintain in nigh traffic applications. Also note these Since every installation is unique. please consult your Falcon examples do not account for lower prices earned for larger representative for an R01 analysis for your situation. Chances volume curcnases of urinals or replacement cartridges. are good the estimate for your savings will be higher than Nor do they account for any of the additional benefits of these examples. Falcon urinals: lower purchase and installation costs for 75 unit 100 unit 200 unit installation installation irrstallation SAVINGS ANALYSIS ASSUMPTIONS Total Facilitv Population 1500 3000 5000 °o of Males in Population 55 916 50 90 60% Number of Males 825 ! 500 3000 I Number of Urinals I 75 100 200 I Number of Uses per DaviPerson 3 1 3 3 I Gallons Per Flush for Old Urinals I 3 1 3 3 1 'Water costs per 1000 Gallons I $2.50 1 52.50 $2.50 Sewer costs oer 1000 Gallons 1 $2.50 1 52.50 1 $2.50 Ooeratino Days 1 260 1 260 1 260 ANNUAL WATER SAVINGS Total waste water savings per year in gallons /dollars 1 1.930,500 gals. 3.510.000 gals. 7020.000 gals. ;3 usesrdav x 260 days x no. of users x water cost) I $4.826.25 588.775 51 7.550 ANNUAL SEWER SAVINGS -oral waste .eater savings cer year in gallons /dollars II 1,930.500 3.510.cfl0 7.020,000 '3 uses /day x 260 days x no. of users x sewer rate) f $4.826.25 53.775 I $17 550 TOTAL WATER + SEWER SAVINGS I $9.652.50 1J-7550 $35.100 ANNUAL OPERATING COST COMPARISON Flush urinal: mainter.ance /valve repair. labor and materials j avera e ($75 Per urinal) j $5.625 57.500 $15.000 Falcon: replacement cartridge cost) i based on 7.000 uses oer cartridge I $3,21,750 55.850 $11,700 TOTAL OPERATING COST SAVINGS I $2.40750 51.650 $3.300 ESTIMATED TOTAL ANNUAL SAVINGS (Water /Sewer Savings plus Operating Cost Savings) $12,060 I $19,200 T $38,400 ?!ease rote All assumptions are conservative and assume .eater and sewer rates remain unchanged for the life of the .rstallaticn The major variables are arnual usage. water FALCON 3rd sewer ates. and existing or projected costs for s WATERFREE TECHNOLOGIES ,^airrairirg flush urinals. Payback on your investment in =alcor unrals can often be measured in months and our ;: A T Falcon Waterfree Techrclegies. LLC S f rarcmg c ograms enable some installations to ;ererate rstart paycacks 1 593 Galbraith Avenue SE Grand Rapids. MI 49546 Tel: 866.275.3718 (toll -free) Fax: 616.95 - 4.3579 E-mail: nfoi4falconwaterfree.com WWW.131GUl iwaierirL,e.com COSTA 911ESASA9U7A'R7�DI,STqUC7 ... an In& pendent Specia[Di strict Memorandum To: Board of Directors From: Wendy H. Davis, District Treasurer Date: July 14, 2004 Subject: CPI ADJUSTMENT — COSTA MESA DISPOSAL Per the District's contract with Costa Mesa Disposal, the basic rate paid to Costa Mesa Disposal is adjusted annually by an amount equal to the percentage change in the Consumer Price Index (CPI) for the 12 -month period ending in May of each year. The attached calculation includes the rate increase, which is scheduled to take effect retroactive to July 1, 2004, based upon the contract with Costa Mesa Disposal. Staff has determined that the trailing 12 -month CPI factor as of May 2003 was 3.70 %. The maximum annual increase is contractually capped at 3.00 %. Since the actual CPI factor of 3.70% is greater than the contract maximum, the rate of 3.00% will be used. The rate increase is $.2589 per occupancy. The District's new monthly rate per occupancy payable to Costa Mesa Disposal is as follows: 2003 -04 Trash rate per occupancy $8.6298 2004 -05 Rate increase based on May, 2004 CPI .2589 2004 -05 Trash rate per occupancy $8.8887 Effective July 1, 2004 The estimated total contract cost is $ 2,258,617. This estimate is based upon the new occupancy rate of $ 8.89. In addition, the contract amount represents a projected increase in the number of occupants from the June 1, 2004 level of 21,128 to 21,175. If you have any questions or need additional information do not hesitate to contact me directly at your convenience. i- Attachments Protecting our community's health 6y providing solid waste and sewer collection services costa mesasanitarydstrict. org COSTA MESA DISPOSAL Trash Rate Calculation CONSUMER PRICE INDEX (LOS ANGELES /RIVERSIDE /ORANGE COUNTY, CA) INCREASE Index as of May, 2003 Index as of May, 2004 Occupancy as of June, 2004 Percent increase * Maximum increase 3% Basic Rate Calculation: Last Year's Basic Rate (Sec. IV) Increase in Basic Rate = 8.6298 x 3.0% Last Year's Basic Rate Effective July 1, 2004, the rate shall be: 8.8887X21,128X12= C] 186.4 193.3 21,128 (193.3- 186.4)/186.4 = 3.70% 3.00% 8.6298 per Occupancy 0.2589 8.6298 8.8887 2,253,603.92 $ 2,253,603.92 Budget Amount (Est. occupancy of 21,175) $ 2,258,617.15 Budget Variance Fav /(Unfav) $ 5,013.22 • Ar ;curd ul- Directors I ri, rn' .S. hater i,rurl c I "I I nrlr,r r hr,t it,,,",ta!�,ful7 .Stuff l�r�Irr.,' ;rr,utrrr Thum,,.; .1. FuIIIII lll,nr t ci ak /= ar 11uilin', lddress Street tddre%% C.�sta Mesa Sanitarp District ... �m D,1bqev1C)el'1t Spleciat DistYlct June 1, 2004 Board of Directors Costa Mesa Sanitary District P.O. Box 1200 Costa Mesa, CA 92628 -1200 SUBJECT: TRASH OCCUPANCY COUNT Dear Board of Directors: There has been an increase of 14 units for the occupancy report for solid waste collection as of June 1, 2004; therefore, the total occupancy count for June is 21,128. Staff recommends the following: 1. The Board of Directors accepts the occupancy count as presented using 21,128 as the correct number of units. 2. The Board of Directors directs staff to prepare a warrant to Costa Mesa Disposal on July 1, 2004 for June 2004 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $182,330.41 to be ratified on the July 1, 2004 warrant list. Sincerely, Thomas A. Fauth Assistant Manager cc: Costa Mesa Disposal Debbie Bjornson Permit Processing Specialist :'�•i'(c'illfl;) t!lil' l{IUL'I{Ili !'� �rt',IIi11 i`1t jlYlti'I1�111ij 41111 fl' ;(�t� ,Iil�� `11't'1" il?��t'Ct.011 kl "i'1l.'�, ir'�lJOWNil :t.trt`INist 1 I_, ' ThidW is available on the Internet on the day of publication at htto: / /www.bls. ro9 /o s achist.htm. This card is also available on our Fax -On- Demand e. To obtair a copy call 415 - 975 -4567. When asked for a document number, enter 9100. Eleven prior months are also on the the Fax -On- Demand system, to receive a copy of Apri 2004, enter9104, March2004, enter9103, February2004, enter9102, January2004 ,enter9101,December2003,enter9l l 2,November2003,enter9111,etc. CON SUM ERPRICElNDEXESPACIFICCITIESANDU .S.CITYAVERAGE May2004 ALLITEMSINDEXES ( 1982- 84= 100unlessotherwisenotedl A =1, 500, 000populationandover * *B /C= lessthan1, 500,000population Dash(- )= NotAvailable. Released ateJune15, 2004. Then extmonthlyandbi- mo nth lyreleasesarescheduledforJmy16, 2004. The nextsemi -a nuuaIreleaseswiIIbeissuedonAugust17 ,2004. Anchorage(907)271 -2770 LosAngeles(310)235 -6884 Portland(503)326 -2081 San Francisco(415)975 -4350 Honolulu(808)541 -2808 Phoenix(480)503 -9075 San Diego (619)557 -6538 Seattle(206)553 -0645 This card is available on the day of release by electronic distribution. Just go to www.bis.gov /bis /list.htm and sign up for the free on -line delivery service. For uestions, pleasecontactusatBLSinfoSF (5)BLS.GOV or(415)975 -4350. All UrbanConsumers(CPI -U) UrbanWageEarnersandClericalWorkers (CPI -W) PercentChan e PercentChan e MONTHLYDATA Indexes Indexes Year 1 Month Year 1 Month ending ending ending ending' May April May April May May May April May April May May 2003 2004 2004 2004 2004 2004 2003 2004 2004 2004 2004 2004 183.5 188.0 189.1 2.3 3.1 0.6 179.4 183.5 184.7 2.1 3.0 0.7 U. S. CityAverage . ............................... ( 1967= 100) ...... ............................... 549.7 563.2 566.4 - - - 534.3 546.5 550.2 - - - LosAngeles- Riverside- OrangeCo...... 186.4 191.9 193.3 2.3 3.7 0.7 179.9 185.2 186.8 2.4 3.8 0.9 ( 1967= 100) ...... ............................... 550.7 566.9 571.0 - - - 531.7 547.4 552.0 - - - West ...................... ............................... 188.5 192.3 193.4 1.9 2.6 0.6 183.8 187.3 188.6 1.7 2.6 0.7 ( Dec. 1977 = 100) .......................... 304.7 310.8 312.6 - - - 295.7 301.4 303.5 - - - West- A* ............... ............................... 191.2 194.6 195.9 1.5 2.5 0.7 185.0 188.2 189.6 1.5 2.5 0.7 ( Dec. 1977 = 100) .......................... 311.8 317.4 319.4 - - - 299.4 304.6 306.9 - - - West- B/ C * *(Dec.1996= 100) .............. 114.7 117.8 1 118.2 2.5 3.1 0.3 114.4 117.2 1 117.8 2.2 3.0 0.5 AIIUrbanConsumers(CPI -U) UrbanWage Earn ersandCIericalWorkers (CPI -W) PercentChan e PercentChan e BI- MONTHLYDATA Indexes Indexes Year 2Months Year 2Months ending ending en din ending April Feb. April Feb. April April April Feb. April Feb. April April 2003 2004 2004 2004 2004 2004 2003 2004 2004 2004 2004 2004 San Francisco- Oakland- SanJose........ 197.3 198.1 198.3 0.2 0.5 0.1 193.6 194.1 194.7 0.2 0.6 0.3 ( 1967 = 100) ...... ............................... 606.6 609.0 609.6 - - - 589.5 591.2 593.0 - - - Seattle- Tacoma - Bremerton ............... 192.3 193.5 194.3 1.2 1.0 0.4 187.0 187.8 189.1 0.9 1.1 0.7 1967 = 100 ...... ............................... 586.2 590.0 592.3 - - - 554.6 556.9 560.8 - - - A =1, 500, 000populationandover * *B /C= lessthan1, 500,000population Dash(- )= NotAvailable. Released ateJune15, 2004. Then extmonthlyandbi- mo nth lyreleasesarescheduledforJmy16, 2004. The nextsemi -a nuuaIreleaseswiIIbeissuedonAugust17 ,2004. Anchorage(907)271 -2770 LosAngeles(310)235 -6884 Portland(503)326 -2081 San Francisco(415)975 -4350 Honolulu(808)541 -2808 Phoenix(480)503 -9075 San Diego (619)557 -6538 Seattle(206)553 -0645 This card is available on the day of release by electronic distribution. Just go to www.bis.gov /bis /list.htm and sign up for the free on -line delivery service. For uestions, pleasecontactusatBLSinfoSF (5)BLS.GOV or(415)975 -4350. COST .A 9k1ESAS17N!`CAR7�DbMrRTC7' Memorandum ... an Independent Specia( District To: Board of Directors From: Wendy H. Davis, District Treasurer V Date: July 14, 2004 Subject: PROPOSED CPI ADJUSTMENT — CR TRANSFER, INC. Per the District's contract with CR Transfer, Inc., the basic rate to CR Transfer is adjusted annually by an amount equal to the percentage change in the Consumer Price Index (CPI) for the trailing 12 -month period ending in May of each year. The attached compensation calculation reflects the basic rate increase, which is scheduled to take effect retroactive to July 1, 2004 based on the contract formula for determining annual rate increases with CR Transfer, Inc. Staff has calculated the 12 -month CPI factor as of May 2004 to be 3.70 %. The contract maximum annual increase is capped at 3.00 %. Since the actual CPI factor is greater than the contract maximum, the rate of 3.00% will be used. The basic rate increase based upon the CPI factor is $1.17 per ton. The landfill rate of $11.00 per ton remains unchanged since the diversion rate remains at 50 %. The net result of the increase in the basic rate is summarized below. Increase / (Decrease) 2004 -05 2003 -04 Amount Percent Basic rate $40.02 $38.85 $1.17 3.00% Landfill fee $11.00 $11.00 $0.00 0.00% Transfer rate $ 51.02 $ 49.85 $1.17' 3.00% The estimated total contract cost is $ 2,121,622 based upon this new rate and the revised tonnage estimates for FY 2004 -05. If you have any questions or need additional information do not hesitate to contact me directly at your convenience. • Attachments ,Protecting ourcommunity's fiea(tfi f;v f7rowidiicq solid wa.ste a ndsewercoffection services. costa ntesasa n ita rydrstrict. otg 1K • 2003 -04 Year Base Rate 2003 -04 Diversion % 2004 -05 Diversion % 2003 -04 Landfill Fee (per Ton) 2004 -05 Landfill Fee (per Ton) CPI as of May, 2003 CPI as of May, 2004 May 2004 / May 2003 = CPI (193.3- 186.40) / 186.40 = 2003 -04 $ 38.85 Max CPI Adjustment 3.00% Per Ton Increase $ 1.17 i ' 1 $ 38.85 50.00% 50.00% $ 22.00 $ 22.00 186.40 193.30 3.70% 3.70% Costa Mesa Sanitary District Rate Calculation for CR Transfer, Inc. Fiscal Year 2004 -2005 Contractual Requirements Increase Fiscal Year Required 2003 -2004 Beginning Diversion tJULY 01 $ 1.17 3.00% Landfill Rate $ 11.00 $ 11.00 $ - 1995 25.00% 1996 30.00% $ 49.85 1997 30.00% 1998 37.50% 1999 50.00% 2000 50.00% 2001 50.00% 2002 50.00% 2003 50.00% 2004 50.00% i ' 1 $ 38.85 50.00% 50.00% $ 22.00 $ 22.00 186.40 193.30 3.70% 3.70% Costa Mesa Sanitary District Rate Calculation for CR Transfer, Inc. Fiscal Year 2004 -2005 2004 -2005 Landfill Fee @ $22.00 x 50.00% = 2003 -2004 Landfill Fee @ $22.00 x 50.00% = Base Compensation per ton of waste delivered to CRT (excluding landfill fees) $18.92 + 3% (18.92)= Previous Base + CPI Previous Base + CPI Previous Base + CPI + $6.92 per ton Previous Base + CPI + $6.92 per ton Previous Base + CPI Previous Base + CPI Previous Base + CPI + Renegotiated CPI Previous Base + CPI Previous Base + CPI 11.00 11.00 CPI Not to Exceed 3% $ 18.92 0.03000 x 18.92 ) + 18.92 = $ 19.49 0.01547 x 19.49 ) + 19.49 = $ 19.79 0.01270 x 19.79 ) + 19.79 = $ 20.04 0.01755 x 20.04 ) + 20.04 = $ 27.31 0.02403 x 27.31 ) + 27.31 = $ 34.89 0.02948 x 34.89 ) + 34.89 = $ 35.92 0.03000 x 35.92 ) + 35.92 = $ 37.00 0.02830 x 37.00 ) + 37.00 = $ 38.06 0.02080 x 38.06 ) + 38.06 = $ 38.85 0.03000 x 38.85 ) + 38.85 = $ 40.02 Increase 2004 -2005 2003 -2004 (Decrease) % Base Rate $ 40.02 $ 38.85 $ 1.17 3.00% Landfill Rate $ 11.00 $ 11.00 $ - 0.00% Transfer Rate $ 51.02 $ 49.85 $ 1.17 2.34% 2004 -2005 Landfill Fee @ $22.00 x 50.00% = 2003 -2004 Landfill Fee @ $22.00 x 50.00% = Base Compensation per ton of waste delivered to CRT (excluding landfill fees) $18.92 + 3% (18.92)= Previous Base + CPI Previous Base + CPI Previous Base + CPI + $6.92 per ton Previous Base + CPI + $6.92 per ton Previous Base + CPI Previous Base + CPI Previous Base + CPI + Renegotiated CPI Previous Base + CPI Previous Base + CPI 11.00 11.00 CPI Not to Exceed 3% $ 18.92 0.03000 x 18.92 ) + 18.92 = $ 19.49 0.01547 x 19.49 ) + 19.49 = $ 19.79 0.01270 x 19.79 ) + 19.79 = $ 20.04 0.01755 x 20.04 ) + 20.04 = $ 27.31 0.02403 x 27.31 ) + 27.31 = $ 34.89 0.02948 x 34.89 ) + 34.89 = $ 35.92 0.03000 x 35.92 ) + 35.92 = $ 37.00 0.02830 x 37.00 ) + 37.00 = $ 38.06 0.02080 x 38.06 ) + 38.06 = $ 38.85 0.03000 x 38.85 ) + 38.85 = $ 40.02 COSTA MESA SANITARY DISTRICT Rate Calculation for CR Transfer, Inc. Fiscal Year 2004 -2005 2003 -2004 FISCAL YEAR TONNAGE * Amounts from previous year used; current year figures are unavailable. • Actual Tonnage Actual Tonnage Total City of Costa Mesa Santa Ana Heights Tonnage June, 2003* 3,095.74 221.17 3,316.91 July 2003 3,576.09 297.26 3,873.35 August 2003 3,145.66 232.80 3,378.46 September 2003 3,288.24 220.03 3,508.27 October 2003 3,162.39 260.60 3,422.99 November 2003 2,783.39 207.16 2,990.55 December 2003 3,121.18 257.61 3,378.79 January 2004 3,080.21 210.77 3,290.98 February 2004 2,555.23 196.32 2,751.55 March 2004 3,346.27 293.79 3,640.06 April 2004 3,339.88 233.28 3,573.16 May 2004 3,006.12 241.75 3,247.87 TOTAL 40,372.94 Total Tonnage x Base Rate = 40,372.94 x 40.02 = 1,615,725.06 Total Tonnage x Landfill Fee = 40,372.94 x 11.00 = 444,102.34 Total $ 2,059,827.40 Total Budget $ 2,121,622.22 Budget Variance Fav /(Unfav) $ 61,794.82 * Amounts from previous year used; current year figures are unavailable. • This c3Ws available on the Internet on the day of publication at htto: / /www.bls.a 9 /i)achist.htm. This card is also available on our Fax -On- Demand se . To obtain a copy call 415 - 975 -4567. When asked for a document number, enter 9100. Eleven prior months are also on the the Fax -On- Demand system, to receive a copy of April 2004, enter9104, March2004, enter9103, February2004, enter9102, January2004, enter9101, December2003, enter9112 ,November2003,enter9111,etc. CON SUM ERPRICEINDEXESPACIFICCITIESAN DU. S.CITYAVERAGE May2004 ALLITEMSINDEXES (1982 -84 =100 uniessotherwisenoted) *A =1, 500, 000populationandover * *B /C= lessthan1, 500,000population Dash(- )= NotAvailable. ReleasedateJune15, 2004. The nextmo nth lyandbi- monthlyreleasesarescheduledforJuly16, 2004. Thenextsemi- anuualreleaseswillbeissuedonAugust17 ,2004. Anchorage(907)271 -2770 LosAngeles(310)235 -6884 Portland(503)326 -2081 San Francisco(415)975 -4350 Honolulu(808)541 -2808 Phoenix(480)503 -9075 San Diego(619)557-6538 Seattle(206)553 -0645 This card is available on the day of release by electronic distribution. Just go to www.bls.gov /bls /list.htm and sign up for the free on -line delivery service. Fo questions, pleasecontactusatBLSinfoSF (&B LS. GOV or(415)975 -4350. AIIUrbanConsumers(CPI -U) UrbanWage Earn ersandCIericalWorkers (CPI -W) PercentChan e PercentChan e MONTHLYDATA Indexes Year 1 Month Indexes Year 1 Month ending ending ending ending' May April May April May May May April May April May May 2003 2004 2004 2004 2004 2004 2003 2004 2004 2004 2004 2004 183.5 188.0 189.1 2.3 3.1 0.6 179.4 183.5 184.7 2.1 3.0 0.7 U. S. CityAverage . ............................... ( 1967 = 100) ...... ............................... 549.7 563.2 566.4 - - - 534.3 546.5 550.2 - - - LosAngeles- Riverside- OrangeCo...... 186.4 191.9 193.3 2.3 3.7 0.7 179.9 185.2 186.8 2.4 3.8 0.9 ( 1967= 100) ...... ............................... 550.7 566.9 571.0 - - - 531.7 547.4 552.0 - - - West ...................... ............................... 188.5 192.3 193.4 1.9 2.6 0.6 183.8 187.3 188.6 1.7 2.6 0.7 ( Dec. 1977 = 100) .......................... 304.7 310.8 312.6 - - - 295.7 301.4 303.5 - - - West- A* ............... ............................... 191.2 194.6 195.9 1.5 2.5 0.7 185.0 188.2 189.6 1.5 2.5 0.7 ( Dec. 1977 = 100) .......................... 311.8 317.4 319.4 - - - 299.4 304.6 306.9 - - - West- B /C * *(Dec.1996= 100) .............. 114.7 117.8 1 118.2 2.5 3.1 0.3 114.4 1 117.2 1 117.8 2.2 3.0 0.5 All Urban Consumers(CPI -U) UrbanWageEarnersandClericalWorkers (CPI -W) PercentChan e PercentChan e BI- MONTHLYDATA Indexes Indexes Year 2Months Year 2Months ending ending ending ending April Feb. April Feb. April April April Feb. April Feb. April April 2003 2004 2004 2004 2004 2004 2003 2004 2004 2004 2004 2004 SanFrancisco- Oakland- SanJose........ 197.3 198.1 198.3 0.2 0.5 0.1 193.6 194.1 194.7 0.2 0.6 0.3 ( 1967= 100) ...... ............................... 606.6 609.0 609.6 - - - 589.5 591.2 593.0 - - - Seattle- Tacoma - Bremerton ............... 192.3 193.5 194.3 1.2 1.0 0.4 187.0 187.8 189.1 0.9 1.1 0.7 1967 =100 ...... ............................... 586.2 590.0 592.3 - - - 554.61 556.9 560.8 - - - *A =1, 500, 000populationandover * *B /C= lessthan1, 500,000population Dash(- )= NotAvailable. ReleasedateJune15, 2004. The nextmo nth lyandbi- monthlyreleasesarescheduledforJuly16, 2004. Thenextsemi- anuualreleaseswillbeissuedonAugust17 ,2004. Anchorage(907)271 -2770 LosAngeles(310)235 -6884 Portland(503)326 -2081 San Francisco(415)975 -4350 Honolulu(808)541 -2808 Phoenix(480)503 -9075 San Diego(619)557-6538 Seattle(206)553 -0645 This card is available on the day of release by electronic distribution. Just go to www.bls.gov /bls /list.htm and sign up for the free on -line delivery service. Fo questions, pleasecontactusatBLSinfoSF (&B LS. GOV or(415)975 -4350. I MP05 -002 •sANlTARy COSTA MESA SANITARY DISTRICT c� u me % ONn DEPARTMENT OF FINANCE u MARC R. PUCKETT 'ycO+POlt A� INTEROFFICE MEMORANDUM DIRECTOR OF FINANCE TO: SANITARY DISTRICT BOARD MEMBERS FROM: MARC PUCKETT, DIRECTOR OF FINANCE COPY TO: JUDY VICKERS, REVENUE SUPERVISOR DATE: JULY 7, 2004 SUBJECT: TREASURER'S REPORT FOR THE MONTH OF JUNE, 2004 Attached is the Treasurer's Report for the month of June, 2004. This performance report lists the types of securities held, institutions the securities are purchased from, maturity dates and interest rates for all securities in the District's investment portfolio as of the end of the reporting period. All of the District's •investments as of June 30, 2004, are in compliance with the Investment Policy and the California Government Code. All market values provided in this report were obtained from Bank of New York, except for the Local Agency Investment Fund (LAIF). Market values for LAIF were provided by the State Treasurer's Office. The market values shown for the District's investment in .LAIF represent the District's contractual rights to its LAIF account and does not represent the value of the underlying portfolio securities within the pool. As of June 30, 2004, the District has adequate cash reserves necessary to meet its obligations for the next six months. The weighted average stated rate of return (current yield) for the Sanitary District's investment portfolio as of June 30, 2004, was 3.461%. The yield to maturity of the portfolio was 3.447 %. The weighted average interest rate of the District's portfolio was 194 basis points (1.941 %) above the daily weighted average rate of return of the State of California Local Agency Investment Fund (LAIF) of 1.520% as of June 29, 2004. The weighted average rate of return for LAIF for the month of June was not available as of today, therefore, the daily weighted average rate of return for LAIF as of the last day of the month for which such information is available was used for comparative purposes. The weighted average number of days to maturity for the District's total portfolio was 1,241 days (3.400 years). The average duration of the underlying securities in the LAIF as of June 29, 2004, was 189 days. COMPLIANCE REPORTING The District's investment portfolio is currently in violation of its liquidity limitations which require that no less than 20% of the portfolio matures within one year. This condition exists as a result of the additional payouts occurring to effectuate the District's purchase of its new District Headquarters and equipping that facility. During the month of June, a total of $1,700,178.56 was paid out by the District. This amount is significantly in excess of the monthly cash payouts of approximately $600,000, in June, on a historic basis. Based upon the District's current cash flows, it is anticipated that the District's • investment portfolio will not meet this liquidity limitation again until December, 2004. It is not anticipated, at this time, that this condition will result in the need to sell any securities prior to maturity. Sufficient revenues in excess of current expenditures should be received in December, 2004, to allow for the investment portfolio to again meet this current liquidity requirement. If you have any questions or need additional information, feel free to contact me directly. MAR R. PUCKETT Dir for of Finance Attachments • • • • COSTA MESA SANITARY DISTRICT TREASURER'S REPORT OF POOLED CASH AND INVESTMENTS AS OF JUNE 30, 2004 ACTIVE ACCOUNTS Bank of America Reconciling Items Total Active Accounts INVESTMENTS Local Agency Investment Fund Sweep Account Medium Term Corporate Notes Federal Agency Securities Total Investments TOTAL POOLED CASH & INVESTMENTS DEPOSITS OUTSTANDING BANK BALANCE IN TRANSIT CHECKS BOOK BALANCE $ 879,446.97 - 384,151.12 495,295.85 86,616.94 - 86,616.94 879,446.97 86,616.94 384,151.12 581,912.79 1,333,285.31 1,333,285.31 681,095.25 681,095.25 8,549,531.25 8,549,531.25 10,563,911.81 - - 10,563,911.81 $ 11,443,358.78 86,616.94 384,151.12 11,145,824.60 DATE COSTA MESA SANITARY DISTRICT INVESTMENT ACTIVITY SUMMARY FOR THE MONTH OF JUNE 2004 Total investments outstanding as of May 31, 2004 $ 12,713,91L81 Purchase Maturity Coupon Yield to Additions: Date Date Rate Maturity Cost Investment Purchases: Total Purchases: None - Deductions: Investment Maturity Proceeds: - Total Maturities: None - Investments Called: - Total Investments Called: None - Net increase (decrease) in Sweep Account (35,000.00) • Net increase (decrease) in LAIF (2,115,000.00) Total investments outstanding as of June 30, 2004 $ 10,563,911.81 • 3 COSTA MESA SANITARY DISTRICT • INVESTMENT ACTIVITY SUMMARY FOR THE QUARTER ENDING JUNE 30, 2004 • • Total investments outstanding as of March 31, 2004 Additions: Investment Purchases: Federal Home Loan Mortgage Corporation Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Total Purchases: Deductions: Investment Maturity Proceeds: Total Maturities: None Investments Called: Total Investments Called: None Net increase (decrease) in Sweep Account Net increase (decrease) in LAIF Purchase Maturity Interest Yield to Date Date Rate Maturity 04/27/04 04/27/09 4.125% 4.125% 04/30/04 04/30/09 4.050% 4.050% 04/30/04 04/30/09 4.130% 4.130% 05/04/04 05/04/09 4.200% 4.200% 05/11/04 05/11/09 4.500% 4.500% Total investments outstanding as of June 30, 2004 $ 11,686,237.58 Cost 1,000,000.00 500,000.00 250,000.00 500,000.00 200,000.00 2,450,000.00 (6,562.50) (3,565,763.27) $ 10,563,911.81 4 COSTA MESA SANITARY DISTRICT INVESTMENTS AND INVESTMENT EARNINGS AS OF JUNE 30, 2004 INTEREST COUPON INVESTMENT EARNED AT PURCHASE MATURITY INVESTMENT CUSIP NUMBER RATE AMOUNT 06/30/04 DATE DATE COMMENTS Local Agency Investment Fund - STP N/A 1.520% ** $ 1,333,285.31 1,333,285.31 1,486,400.60 CMSD SOLID WASTE FUND 594 1,693,602.10 Bank of New York- Sweep Account N/A 0.530% - - 24.48 DEPOSITS FUND 701 (2,638.18) MTCN (Texas Instruments Inc.) 882508AH7 6.125% 681,095.25 708,783.75 05/15/2001 02/01/2006 Bullet, S &P /Moodys rated as A/ A2 *(CR - No change) FHLMC 3128X1AT4 3.250% 1,000,000.00 994,490.00 05/14/2003 05/14/2007 Callable 11/14/03 with 5 days notice. FFCB 31331QV61 2.625% 500,000.00 485,000.00 06/24/2003 09/24/2007 Callable 09/24/03 with 7 days notice. FHLMC 3128X1AW7 3.750% 1,000,000.00 995,580.00 05/14/2003 05/14/2008 Callable 11/14/03 with 5 days notice. FFCB 31331QS32 1240% 600,000.00 585,375.00 06/18/2003 06/18/2008 Callable 09/18/03 with 7 days notice. FHLB 31339YDRO 3.050% 1,499,531.25 1,451,250.00 07/22/2003 07/22/2008 Callable 10/22/03 with 5 days notice. FHLB 31339YPE6 3.400% 1,000,000.00 980,000.00 07/30/2003 07/30/2008 Callable 10/30/03 with 5 days notice. FNMA 3136F34U7 3.910% 500,000.00 498,593.75 08/14/2003 08/14/2008 Callable 11/14/03 withl0 days notice. FHLMC 3128X26Y6 4.125% 1,000,000.00 995,590.00 04/27/2004 04/27/2009 Callable 07/27/04 with 5 days notice. FHLB 3133X5ZK7 4.050% 500,000.00 495,000.00 04/30 /2004 04/30/2009 Callable 07/30/04 with 5 days notice. FHLB 3133X63Y0 4.130% 250,000.00 248,281.25 04/30 /2004 04/30/2009 Callable 07/30/04 with 5 days notice. FHLB 3133X6EQ5 4.200% 500,000.00 497,343.75 05/04/2004 05/04/2009 Callable 06/04/04 with 5 days notice. FHLB 3133X6LG9 4.500% 200,000.00 200,125.00 05/11/2004 05/11/2009 Callable 06/11/04 with 5 days notice. TOTAL $ 10,563,911.81 10,468,697.81 * *Represents the month end daily rate for June. LAIF monthly average not available at time of report. KEY: STP - State Treasurers Pool MTCN - Medium Term Corporate Note FFCB - Federal Farm Credit Bank FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation CP- Commercial Paper FNMA - Federal National Mortgage Association *CR = Current rating as of April 15, 2004 COSTA MESA SANITARY DISTRICT POOLED CASH AND INVESTMENTS BY FUND AS OF JUNE 30, 2004 SEWER CONSTRUCTION FUND 592 $ 212,106.95 FACILITIES REVOLVING FUND 593 1,486,400.60 CMSD SOLID WASTE FUND 594 1,693,602.10 CMSD LIQUID WASTE FUND 595 7,756,328.65 SELF - INSURANCE FUND 602 24.48 DEPOSITS FUND 701 (2,638.18) $ 11,145,824.60 • • COSTA MESA SANITARY DISTRICT SUMMARY OF POLICY LIMITATIONS AS OF JUNE 30, 2004 DESCRIPTION U.S. Treasury Bills U.S. Treasury Notes Federal Agency Issues: FICB FFCB FLB FHLB FNMA FHLMC Other * Banker's Acceptances Certificates of Deposit Negotiable Certificates of Deposits Commercial Paper Medium Term Corporate Notes Repurchase Agreements Reverse Repurchase Agreements LAIF (Local Agency Investment Fund) Current Balance Orange County Treasurer's Pool Money Market Mutual Funds (Sweep Account) Asset - Backed and Mortgage - Backed Securities TOTAL CURRENT PERCENTAGE BASED ON MARKET VALUE AS OF 06/30/04 0.00% 0.00% 0.00% 10.41% 0.00% 37.39% 4.73% 28.40% 0.00% 0.00% 0.00% 0.00% 0.00% 6.45% 0.00% 0.00% 12.62% 0.00% 0.00% 0.00% 100.00% MAXIMUM PERCENTAGE UNLIMITED UNLIMITED 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% UNLIMITED 30.00% 15% or 30% (1) 30.00% UNLIMITED 10% of base $ 40,000,000.00 $ 1,333,285.31 35.00% 10% per fund (2) 20.00% % of Portfolio Maturing within one year 12.62% no less than 20% % of Portfolio Maturing or Callable within one year 93.55% (1) Current dollar weighted average maturity as of 06/30/04 is 0 days. (2) Also limited to 20% in total. *These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE 0 COSTA MESA SANITARY DISTRICT OUTSTANDING INVESTMENTS BY INSTRUMENT TYPE AS OF JUNE 30, 2004 v • % OF PORTFOLIO SPECIAL CHARACTERISTICS OF INVESTMENTS 12.62% Local Agency Investment Fund - State Treasurer's Pool 0.00% Stagecoach Funds Inc. - Treasury Money Market Mutual Fund Bullet; S &P /Moodvs rated as A /A2 *(CR - No change) 6.45% 28.40% 37.39% 4.73% Callable 11/14/03 with 5 days notice. Callable 11/14/03 with 5 days notice. Callable 07/29/04 with 5 days notice. Callable 10/22/03 with 5 days notice. Callable 10/30/03 with 5 days notice. Callable 07/30/04 with 5 days notice. Callable 07/30/04 with 5 days notice. Callable 06/04/04 with 5 days notice. Callable 06/11/04 with 5 days notice. Callable 11/14/03 with 10 days notice. Callable 09/24/03 with 7 days notice. Callable 09/18/03 with 7 days notice. 10.41% 100.00% *CR = Current rating as of April 15, 2004 TYPE OF PURCHASE MATURITY INTEREST MARKET INSTITUTION INVESTMENT DATE DATE RATE COST VALUE LAIF POOL N/A CONTINUOUS 1.520% ** $ 1,333,285.31 1,333,285.31 Bank of New York SWEEP N/A CONTINUOUS 0.530% - - Morgan Keegan MTCN (Texas Instruments Inc) 05/15/2001 02/01/2006 6.125% 681,095.25 708,783.75 681,095.25 708,783.75 Morgan Stanley FHLMC 05/14/2003 05/14/2007 3.250% 1,000,000.00 994,490.00 Banc of America FHLMC 05/14/2003 05/14/2008 3.750% 1,000,000.00 995,580.00 Wells Fargo FHLMC 04/27/2004 04/27/2009 4.125% 1,000,000.00 995,590.00 3,000,000.00 2,985,660.00 Morgan Keegan FHLB 07/22/2003 07/22/2008 3.050% 1,499,531.25 1,451,250.00 Morgan Keegan FHLB 07/30/2003 07/30/2008 3.400% 1,000,000.00 980,000.00 Morgan Keegan FHLB 04/30/2004 04/30/2009 4.050% 500,000.00 495,000.00 Morgan Stanley FHLB 04/30/2004 04/30/2009 4.130% 250,000.00 248,281.25 Morgan Keegan FHLB 05/04/2004 05/04/2009 4.200% 500,000.00 497,343.75 Morgan Stanley FHLB 05/11/2004 05/11/2009 4.500% 200,000.00 200,125.00 3,949,531.25 3,872,000.00 Morgan Keegan FNl`QA 08/14/2003 08/14/2008 3.910% 500,000.00 498,593.75 500,000.00 498,593.75 Citigroup Global Markets Inc. FFCB 06/24/2003 09/24/2007 2.625% 500,000.00 485,000.00 Morgan Stanley FFCB 06/18/2003 06/18/2008 3.240% 600,000.00 585,375.00 11100,000.00 1,070, 375.00 $ 10,563,911.81 10,468,697.81 "Represents the month end daily rate for June. LAIF monthly average not available at time of report. % Rounds5 /4 v • % OF PORTFOLIO SPECIAL CHARACTERISTICS OF INVESTMENTS 12.62% Local Agency Investment Fund - State Treasurer's Pool 0.00% Stagecoach Funds Inc. - Treasury Money Market Mutual Fund Bullet; S &P /Moodvs rated as A /A2 *(CR - No change) 6.45% 28.40% 37.39% 4.73% Callable 11/14/03 with 5 days notice. Callable 11/14/03 with 5 days notice. Callable 07/29/04 with 5 days notice. Callable 10/22/03 with 5 days notice. Callable 10/30/03 with 5 days notice. Callable 07/30/04 with 5 days notice. Callable 07/30/04 with 5 days notice. Callable 06/04/04 with 5 days notice. Callable 06/11/04 with 5 days notice. Callable 11/14/03 with 10 days notice. Callable 09/24/03 with 7 days notice. Callable 09/18/03 with 7 days notice. 10.41% 100.00% *CR = Current rating as of April 15, 2004 06/11/04 Total outstanding investments 'Represents the month end daily rate for June. LAIF monthly average not available at time of report. WEIGHTED AVERAGE INTEREST RATE OF PORTFOLIO 3.461 WEIGHTED AVERAGE YIELD TO MATURITY 3.447 eo WEIGHTED AVERAGE DAYS TO MATURITY 1,241 DAYS MATURITY OF PORTFOLIO LESS POOLS 1,420 DAYS • COST 1,333,285.31 681,095.25 1,000,000.00 500,000.00 1,000,000.00 600,000.00 1,499,531.25 1,000,000.00 500,000.00 1,000,000.00 500,000.00 250,000.00 500,000.00 200,000.00 $ 10,563,911.81 COSTA MESA SOTARY DISTRICT OUTSTANDING INVESTMENTS AS OF JUNE 30, 2004 TYPE OF PURCHASE MATURITY/ DAYS TO COUPON YIELD TO INSTITUTION INVESTMENT DATE CALL DATE MATURITY RATE MATURITY Local Agency Investment Fund Pool 1 1.520 % ** 1.520 % $ Bank of New York Sweep 1 0.530 % 0.530 % Morgan Keegan MTCN (Texas Instruments Inc.) 05/15/01 02/01/06 581 6.125 % 5.900 % Morgan Stanley FHLMC 05/14/03 05/14/07 1,048 3.250 % 3.250 % 11/14/03 Citigroup Global Markets Inc. FFCB 06/24/03 09/24/07 1,181 2.625 % 2.625 % 09/24/03 Banc of America FHLMC 05/14/03 05/14/08 1,414 3.750 % 3.750 % 11/14/03 Morgan Stanley FFCB 06/18/03 06/18/08 1,449 3.240 % 3.240 % 09/18/03 Morgan Keegan FHLB 07/22/03 07/22/08 1,483 3.050 % 3.050 % 10/22/03 Morgan Keegan FHLB 07/30/03 07/30/08 1,491 3.400 % 3.400 % 10/30/03 Morgan Keegan FNMA 08/14/03 08/14/08 1,506 3.910 % 3.910 % 11/14/03 Wells Fargo FHLMC 04/27/04 04/27/09 1,762 4.125 % 4.125 % 07/27/09 Morgan Keegan FHLB 04/30/04 04/30/09 1,765 4.050 % 4.050 % 07/30/04 Morgan Stanley FHLB 04/30/04 04/30/09 1,765 4.130 % 4.130 % 07/30/04 Morgan Keegan FHLB 05/04/04 05/04/09 1,769 4.200 % 4.200 % 06/04/04 Morgan Stanley FHLB 05/11/04 05/11/09 1,776 4.500 % 4.500 % 06/11/04 Total outstanding investments 'Represents the month end daily rate for June. LAIF monthly average not available at time of report. WEIGHTED AVERAGE INTEREST RATE OF PORTFOLIO 3.461 WEIGHTED AVERAGE YIELD TO MATURITY 3.447 eo WEIGHTED AVERAGE DAYS TO MATURITY 1,241 DAYS MATURITY OF PORTFOLIO LESS POOLS 1,420 DAYS • COST 1,333,285.31 681,095.25 1,000,000.00 500,000.00 1,000,000.00 600,000.00 1,499,531.25 1,000,000.00 500,000.00 1,000,000.00 500,000.00 250,000.00 500,000.00 200,000.00 $ 10,563,911.81 COSTA MESA SANITARY DISTRICT SCHEDULE OF INVESTMENTS OUTSTANDING FOR ALL MATURITIES WITH MARKET VALUES AS OF JUNE 30, 2004 * *Represents the month end daily rate for June. LA1F monthly average not available at time of report. NET PURCHASE MATURITY INSTITUTION/ TYPE OF COUPON MARKET ACCRUED GAIN /LOSS DATE DATE BROKER /DEALER INVESTMENT PAR RATE COST VALUE INTEREST IFSOLD N/A CONTINUOUS LAIF POOL $ 1,333,285.31 1.520% ** 1,333,285.31 1,333,285.31 N/A CONTINUOUS Bank of New York SWEEP - 0.530% - - - - 05/15/01 02/01/06 Morgan Keegan MTCN (Texas Instruments Inc.) 675,000.00 6.125% 681,095.25 708,783.75 17,226.56 27,688.50 05/14/03 05/14/07 Morgan Stanley FHLMC 1,000,000.00 3.250% 1,000,000.00 994,490.00 4,243.05 (5,510.00) 06/24/03 09/24/07 Citigroup Global Markets Inc. FFCB 500,000.00 2.625% 500,000.00 485,000.00 3,536.46 (15,000.00) 05/14/03 05/14/08 Banc of America FHLMC 1,000,000.00 3.750% 1,000,000.00 995,580.00 4,895.83 (4,420.00) 06/18/03 06/18/08 Morgan Stanley FFCB 600,000.00 3.240% 600,000.00 585,375.00 702.00 (14,625.00) 07/22/03 07/22/08 Morgan Keegan FHLB 1,500,000.00 3.050% 1,499,531.25 1,451,250.00 20,206.25 (48,281.25) 07/30/03 07/30/08 Morgan Keegan FHLB 1,000,000.00 3.400% 1,000,000.00 980,000.00 14,261.11 (20,000.00) 08/14/03 08/14/08 Morgan Keegan FNMA 500,000.00 3.910% 500,000.00 498,593.75 7,439.86 (1,40625) 04/27/04 04/27/09 Wells Fargo FHLMC 1,000,000.00 4.125% 1,000,000.00 995,590.00 7,333.33 (4,410.00) 04/30/04 04/30/09 Morgan Keegan FHLB 500,000.00 4.050% 500,000.00 495,000.00 3,431.25 (5,000.00) 04/30/04 04/30/09 Morgan Stanley FHLB 250,000.00 4.130% 250,000.00 248,281.25 1,749.51 (1,718.75) 05/04/04 05/04/09 Morgan Keegan FHLB 500,000.00 4200% 500,000.00 497,343.75 3,325.00 (2,656.25) 05/11/04 05/11/09 Morgan Stanlev FHLB 200,000.00 4.500% 200,000.00 200,125.00 1,250.00 125.00 Total investments outstanding $ 10,558,285.31 10,563,911.81 10,468,697.81 89,600.21 (95,214.00) * *Represents the month end daily rate for June. LA1F monthly average not available at time of report. 0 COST $ 600,000.00 500,000.00 1,499,531.25 1,000,000.00 1,000,000.00 1,000,000.00 500,000.00 1,000,000.00 500,000.00 250,000.00 500,000.00 200,000.00 PAR 600,000.00 500,000.00 1,500,000.00 1,000,000.00 1,000,000.00 1,000,000.00 500,000.00 1,000,000.00 500,000.00 250,000.00 500,000.00 200,000.00 $ 8,549,531.25 8,550,000.00 COSTA MESA SANITARY DISTRICT CALL SCHEDULE AS OF JUNE 30, 2004 PURCHASE MATURITY INTEREST CALL TYPE OF INVESTMENT DATE DATE RATE DATE FFCB 06/18/03 06/18/08 3.240% 09/18/03 FFCB 06/24/03 09/24/07 2.625% 09/24/03 FHLB 07/22/03 07/22/08 3.050% 10/22/03 FHLB 07/30/03 07/30/08 3.400% 10/30/03 FHLMC 05/14/03 05/14/07 3.250% 11/14/03 FHLMC 05/14/03 05/14/08 3.750% 11/14/03 FNMA 08/14/03 08/14/08 3.910% 11/14/03 FHLMC 04/27/04 04/27/09 4.125% 07/27/04 FHLB 04/30/04 04/30/09 4.050% 07/30/04 FHLB 04/30/04 04/30/09 4.130% 07/30/04 FHLB 05/04/04 05/04/09 4.200% 06/04/04 FHLB 05/11/04 05/11/09 4.500% 06/11/04 0 COST $ 600,000.00 500,000.00 1,499,531.25 1,000,000.00 1,000,000.00 1,000,000.00 500,000.00 1,000,000.00 500,000.00 250,000.00 500,000.00 200,000.00 PAR 600,000.00 500,000.00 1,500,000.00 1,000,000.00 1,000,000.00 1,000,000.00 500,000.00 1,000,000.00 500,000.00 250,000.00 500,000.00 200,000.00 $ 8,549,531.25 8,550,000.00 0 0 0 COSTA MESA SANITARY DISTRICT DAILY CASH FLOWS AS OF JUNE 30, 2004 14,000,000 12,000,000 10,000,000 U 8,000,000 6,000,000 4,000,000 2,000,000 - I I I -T I I I p 1;P oo, p o) p p o) o1 � §�) o , � oO) � oOb G oO) � o b oa ' o ob ob o`b ob oo°, Q° o° Q° Q° Q° o° Q° o° Q° 0 Q° o° Q° o° Q° o°- o° �~o�~�~ o 4 4 QvVv 3 tit ti� ti� ti tiff tiff ti�� ti �10 o� o �yo' 00 0 � �o o��16 - w��w� I',' �, � ry� "V DATE 0 0 0 - COSTA MESA SANITARY DISTRICT CASH FLOWS AS OF JUNE 30, 2004 3,000,000 - - -- — - - 2,500,000 -- -- - - 2,000,000 -- - - u 1,500,000 - GC1 1,000,000 - - - 500,000 - cyD cyD co cyl� cyD 0 0 0 0 0 0 0 0 0 0 0 0 0 o a z � � F.+ co w r Date �`' REVENUE —EXPENSE • • • 2003 /2004 MARKET RATES AS OF JUNE 30, 2004 5.50 - - - 5.00 4.50 4.00 3 -MONTH LIBOR 3.50 6 -MONTH LIBOR x U 3.00 90 DAY T -BILL OG W 26 WEEK T -BILL a 2,50 1 YR T -BILL 2 YR T -NOTE 2.00 - - 0004, 3 YR T -NOTE 1.50 5 YR T -NOTE 10 YR T -NOTE 1.00 - - -._ 0.50 - 7-7T` �o ti� � ti ti� Op' ti� � �O' co ti� ,�O' ��' F-+ C-0 DATE • • • COSTA MESA SANITARY DISTRICT - ASSET ALLOCATION AS OF JUNE 30, 2004 FEDERAL HOME LOAN MORTGAGE CORPORATION 28% MEDIUM TERM CORPORATE NOTES 6% LOCAL AGENCY FEDERAL HOME I INVESTMENT LOAN BANK FEDERAL FUND 38% NATIONAL FEDERAL FARM 13% MORTGAGE CREDIT BANK ASSOCIATION 10% 5 % % Rounded 5/4 F] Local Agency Investment Fund ®Federal Farm Credit Bank Federal National Mortgage Association Federal Home Loan Bank ® Federal Home Loan Mortgage Corporation F] Medium Term Corporate Notes Total In Thousands $ 1,333 1,100 500 3,950 3,000 681 $ 10,564 0 0 • COSTA MESA SANITARY DISTRICT - PORTFOLIO INTEREST RATE INFORMATION AS OF JUNE 30, 2004 7.00 6.75 6.50 6.25 6.00 5.75 5.50 5.25 5.00 4.75 4.50 z 4.25 U 4.00 a 3.75 a 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 o' oti oti oti o',- oti o'� o`� o� o`� o� o`ti o`ti o`ti o`ti o`ti o`� oti o`� o`� o`� o`� o`� o`� o`� o`� o`� o`� o`� ip o`� o°` o°� Q° Q° o°, o°. oG °° � S`as'� �,q�� oS' Sa~�+o�O0�4 oG °° DATE *LAIF rate reflects daily rate at month end. OCIP rate for June not available at time of report. ,,, CMSD AVERAGE LAIF T -BILL (1 YEAR) —T -BILL (3 YEAR) OCIP COSTA MESA SANITARY DISTRICT - MATURITIES DISTRIBUTION AS OF JUNE 30, 2004 % Rounded 5/4 rn 1 - 180 Days 181 - 365 Days 1 - 2 Years 2- 3Years 3 - 4 Years 4- 5Years TOTAL In Thousands $ 1,333 681 1,000 2,100 5,450 $ 10,564