Agenda Packets - Board - 2003-11-12.1 4
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- COSTA MESA
SANITARY DISTRICT
an Independent Special District
AGENDA
Arlene Schafer
President
Greg Woodside
Vice President
Art Perry
Director
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 II).
Regular Meeting - Wednesday, November 12, 2003
RECOMMENDED
ACTION
CALL TO ORDER — 6:00 p.m. — Conference Room 1A - Costa Mesa City Hall
II. PLEDGE OF ALLEGIANCE — Director Worthington
III. INVOCATION — Director Woodside
IV. ROLL CALL
V. 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 Meeting — October 7, 2003
2. Investment Oversight Committee — October 8, 2003
3. Regular Meeting — October 8, 2003
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COSTA MESA SANITARY DISTRICT
AGENDA
November 12, 2003
Page 2
RECOMMENDED
ACTION
4.
Special Meeting — October 13, 2003
Manager's
Reports
5.
Refunds
Approve
6.
Occupancy Report and payment to Costa Mesa Disposal — November 2003
Approve
7.
Monthly Spill Report to Regional Water Quality Control Board (RWQCB)
Receive and File
8.
Standardized Container Program — Lifting Bar Replacement Update
Accept Report
Engineer's
Reports
9.
Project Status Report
Receive and File
Treasurer's Reports
10.
Financial Report as of October 31, 2003
Accept Report
11.
Report of Monies on Deposit as of October 31, 2003
Receive and File
12.
Warrant Register for November 2003 in the amount of $601,636.62
Approve Payment
13.
Directors' Compensation and Reimbursement of Expenses for the month
Ratify Expenses
of October 2003
----------------------------- - - - - -- -END OF CONSENT CALENDAR - - --
VI. WRITTEN COMMUNICATIONS
VII. PUBLIC COMMENTS
VIII. MANAGER'S REPORTS
A. Anti - Scavenging and Screening of Trash Containers Enforcement Reports Consider
B. CMSD Strategic Plan
1. Year 2003 Action Items_.�r Receive and File
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2. Institutional Issues
a. Meeting with City Held on Oc ober 29, 2003
i.) Memo from Manager to Board Confirm Direction to Staff
ii.) Follow Up Letter to City of Costa Mesa Consider
3. Year 2004 Strategic Plan LTr � j�Aw (4 Consider
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COSTA MESA SANITARY DISTRICT November 12, 2003
AGENDA Page 3
RECOMMENDED
ACTION
C. Recycling Reports
1. Waste Diversion Report — September 2003 Receive and File
2. Waste Diversion Report — October 2003 Receive and File
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D. Contract Payment to CR Transfer for recycling
services and disposal
1. Payment for October 2003 Services Approve Subject to
Verification of Diversion
Report by Staff
`1 E. Recycling Committee — Wednesday, November 12, 2003 — 9:00 a.m.
1 1. Strategic Planning 2003 - Public Outreach — Classroom Recycling Projects
j (� 2. CostaMazing — District Participation
��,3. 2003 School Telephone Book Recycling Program
-�N- 2003 Christmas Tree Recycling Program
,4 5. Public Restrooms
r ENGINEER'S REPORTS
A. Waste Discharge Requirements (WDR)
1. General Update
X. TREASURER'S REPORTS
XI. ATTORNEY'S REPORTS
A. Costa Mesa Disposal Stock Acquisition by CR &R
B. 433 Walnut Place Agreement
C. Statute of Limitations for Sewer and Trash Refunds
XII. LOCAL MEETINGS
A. Orange County Sanitation District (OCSD)
1. Regular Meeting — October 22, 2003 (Director Ferryman)
Consider
Consider
Accept Report
Accept Report
Accept Report
Verbal Report from
Manager and Attorney
Accept Report
Consider
Accept Report
Accept Report
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COSTA MESA SANITARY DISTRICT
AGENDA
B. Santa Ana River Flood Protection Agency
1. Agenda for Full Agency Meeting on November 13, 2003 and
Schedule for 2004.
2. Santa Ana River Flood Protection Agency Dues for 2003/2004
/ in the amount of $1,400.00
C. Independent Special Districts of Orange County (ISDOC)
/ 1. ISDOC Quarterly Meeting — October 30, 2003
D. Local Agency Formation Commission (LAFCO)
E. California Special Districts Association (CSDA)
XIII. OLD BUSINESS
XIV. NEW BUSINESS
A. Regular December 2003 Board of Directors Meeting
XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
XVI. CLOSED SESSION
November 12, 2003
Page 4
RECOMMENDED
ACTION
Accept Report
Authorize Payment
Accept Report
Consider
Consider
Change of Meeting Date
to December 10, 2003
A. Conference with Legal Counsel — Anticipated Litigation
Consideration Whether to Initiate Litigation (Government Code Section
54956.9 (C) (1 Case)
2. To Discuss Threatened Litigation — Correspondence from Stanley Jensen
Pursuant to Government Code Section 54956.9 (E)
XVII. ADJOURNMENT
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COSTA MESA SANITARY DISTRICT
MINUTES OF RECYCLING COMMITTEE MEETING
OCTOBER 7, 2003
The Costa Mesa Sanitary District Recycling Committee met at 9:00 a.m. in
conference room 1 A 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 2003 — PUBLIC OUTREACH — CLASSROOM RECYCLING
PROJECTS
Director Worthington reported vermi- composting presentations have been made at
Anderson School and TeWinkle Middle School. The two schools now have
composting bins in their classrooms, teaching students the usefulness of food
scraps and diverting them from the landfills.
COSTAMAZING — DISTRICT PARTICIPATION
Ms. Revak presented a card prepared by Staff with a picture of the Adobe at the
Costa Mesa Estancia at 1900 Adams Avenue with history on the Adobe and the
peppercorns. The card will be placed in a plastic bag with peppercorns collected
from the tree and distributed at the CostaMazing Fun Run on February 7, 2004.
MINI TELEPHONE BOOK RECYCLING PROGRAM - 2003
Ms. Revak presented the final report for the 2003 Mini Telephone Book Recycling
Program. The 2003 program ran from August 8 through September 19 with bins
located at City Hall and the Orange Coast College Recycling Center. Books totaling
1,800 were collected in the mini program comparing to 2,825 books collected in the
2002 program. Many residents may be saving their yellow pages for the school
program in December.
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Costa Mesa Sanitary District
Minutes of Recycling Committee Meeting
s October 7, 2003
Page 2
2003 SCHOOL TELEPHONE BOOK RECYCLING PROGRAM
Ms. Revak presented the letter inviting school participation in the 2003 Telephone
Book Recycling Program. This year's program will run from December 1, 2003 to
January 12, 2004. Participating schools can earn $200 to $650 based on the
enrollment population of each school with a grand prize award of $250 to the
Elementary, Jr. High and High School collecting the greatest number of pounds of
phone books per student.
The schools must designate how they will use the award funds and in the past such
items include classroom supplies, science equipment, library books, technology
supplies and field trips.
The District's program challenges the students to collect the most telephone books
and be rewarded in addition to providing a hands -on opportunity to learn about
recycling.
USED TIRE ROUNDUP — SATURDAY, OCTOBER 11, 2003
Mr. Fauth informed the Committee of the upcoming Used Tire Roundup that will
occur from 10:00 a.m. to 2:00 p.m. on Saturday, October 11, 2003 at the City
Corporation Yard, 2300 Placentia Avenue. The annual event offers residents the
free drop off opportunity to dispose of unwanted tires.
Staff learned from Mike Carey of the Orange Coast College Recycling Center of a
need to dispose of 400 tires that were recently illegally dumped at the Center. The
Center has requested monetary assistance to dispose of the tires by having them
removed by the Orange County Conservation Corps and transported to American
Tire Disposal. The request will be presented to the Board of Directors for
consideration at the October 8, 2003 regular meeting.
PUBLIC COMMENTS
There were no public comments.
The meeting was adjourned at 10:04 a.m.
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COSTA MESA SANITARY DISTRICT
MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING
OCTOBER 8, 2003
CALL TO ORDER The meeting was called to order at 5:30 p.m. by Director Schaefer.
ROLL CALL Committee Members Present:
Mr. Rob Hamers, District Manager
Director Jim Ferryman (rotating committee member)
Director Arlene Schafer (rotating committee member)
Committee Members Absent:
None
Staff Members Present:
Ms. Joan Revak, Clerk of the District
Mr. Marc Puckett, Treasurer
Mr. Bobby Young, Accounting Supervisor
TREASURER'S REPORT FOR THE MONTH AND QUARTER ENDED JUNE 30, 2003
NEW BUSINESS
OPEN DISCUSSION
ADJOURNMENT
Approved by:
Mr. Puckett presented the Treasurer's Report and discussed the recent
investing activity of the District. Discussion followed.
1. CMSD FINANCIAL STATEMENTS
Mr. Puckett indicated that this is a standing agenda item and presented
the financial statements for detailed discussion if there were questions.
Discussion followed.
2. INVESTMENT AUDIT REPORT
Mr. Puckett discussed the Investment Audit Report. There were no
findings of deficiencies within the report. All investment activity was
compliant with governing law and adopted policies. Discussion followed.
There were no items discussed under open discussion
The meeting adjourned at 5:58 p.m.
Secretary, Costa Mesa Sanitary District
Board of Directors
President, Costa Mesa Sanitary District
Board of Directors
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
October 8, 2003, at 6:00 p.m. in Room 1-
A of the Civic Center, 77 Fair Drive,
Costa Mesa.
PLEDGE OF ALLEGIANCE
INVOCATION
ROLL CALL
President Schafer called the meeting to
order at 6:00 p.m.
Director Ferryman led the pledge.
Director Woodside gave the invocation.
DIRECTORS PRESENT: Arlene Schafer, Art Perry, James
Ferryman, Dan Worthington, Greg
Woodside
DIRECTORS ABSENT: None
STAFF PRESENT: Robin Hamers, Manager /District
Engineer; Alan Burns, Legal Counsel;
Tom Fauth, Assistant Manager; Joan
Revak, Clerk of the District; Marc Puckett,
Treasurer; Bobby Young, Finance; Ron
Shef, District Ordinance Enforcement
Officer; Debbie Bjornson, Permit
Processing Specialist; Denise Gilbert,
Permit Processing Specialist.
• OTHERS PRESENT: None
,,SANITj� COSTA MESA SANITARY DISTRICT
- a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 2
. ............................... CONSENT CALENDAR. ...............................
Director Perry motioned to approve the Consent Calendar as presented. Director
Worthington seconded. Motion carried 5 -0.
REPORTS
MINUTE APPROVAL
Minutes of Recycling
Committee Meeting,
September 3, 2003
Minutes of Regular
Meeting,
September 5, 2003
Minutes of Special
Meeting,
September 29, 2003
MANAGER'S REPORTS
The Minutes of the Recycling Committee Meeting of
September 3, 2003, were approved as distributed.
The Minutes of the Regular Meeting of September 5,
2003, were approved as distributed.
The Minutes of the Special Meeting of September 29,
2003, were approved as distributed.
Occupancy Report and The Revised Trash Occupancy Count documented a
Payment of $181,959.33 decrease of 3 units for the occupancy report for solid
to Costa Mesa Disposal — waste collection as of October 1, 2003. Therefore,
October 2003 the total for October is 21,085.
Board directed Staff to prepare a warrant for
$181,959.33 to Costa Mesa Disposal on November 1,
2003, for payment for October trash collection based
on the October count of 21,085.
Monthly Spill Report to The Monthly Spill Report to the Regional Water
Regional Water Quality Quality Control Board (RWQCB) for September
Control Board (RWQCB) 2003 was accepted as submitted.
Standardized Container The Standardized Container Program — Lifting Bar
Program — Lifting Bar Replacement Update was accepted as submitted.
Replacement Update
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 3
ENGINEER'S REPORTS
Project Status Report The Project Status Report dated October 2003,
was accepted as submitted.
Minutes of Safety /Loss The Minutes for the Safety /Loss Control meeting of
Control Meeting September 17, 2003, were accepted as submitted.
TREASURER'S REPORTS
Financial Report as of The Financial Report as of September 30, 2003,
September 30, 2003 was accepted as submitted.
Report of Monies on The Report of Monies on Deposit as of September
Deposit as of 30, 2003, was received and filed.
September 30, 2003
Warrant 2004 -04 for Warrant Resolution #CMSD 2003 -04 was
September 2003 in the approved, authorizing the President and Secretary
amount of $419,075.90 to sign the warrant and instructing the Treasurer to
• draw a warrant from the Costa Mesa Sanitary
District General Fund in the amount of
$419,075.90.
Directors Expenses for the Director Expenses for the Month of September
Month of September 2003 2003 were ratified as follows:
Director Ferryman: $340.00
Director Perry: $680.00
President Schafer: $1,020.00 + 458.58
Vice President Woodside: $510.00
Director Worthington: $680.00
.......................... END OF CONSENT CALENDAR ..........................
WRITTEN COMMUNICATIONS
Mr. Hamers reported there were no written communications received.
PUBLIC COMMENTS
• There were no public comments made, no public in attendance.
+� *SAMIi� COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 4
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MANAGER'S REPORTS
ANTI - SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT REPORTS
POLICE REPORT
Mr. Hamers presented a memorandum providing the scavenging statistics for
September as follows:
Location Calls for Service Cite /Arrest
Area 1
0
5
Area II
1
0
Area III
1
5
Area IV
0
0
TOTAL
2
10
DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT
Director Worthington reported he participated in a ride along with Mr. Shef and
Costa Mesa Councilman Allan Mansoor to view commercial and multifamily
dwellings where the dumpsters were overfilled and appliances and furniture •
littered alleyways.
Mr. Hamers presented the ordinance enforcement summary report for the four -
week period beginning August 25, 2003 and ending September 21, 2003.
Mr. Shefs summary report contained the following information:
• 25 flyers given to residents and 8 containers oversprayed and ID tagged.
• A scavenger vehicle taking newspapers (repeat offender) was observed
and photographed and information forwarded to Staff. Mr. Shef
suggested reminding residents to place newspapers inside the
containers.
Mr. Hamers suggested Mr. Shef leave a green card at the residence with the
item circled when he discovers newspapers left beside containers.
Denise Gilbert arrived at 6:1Op. m.
CMSD STRATEGIC PLAN
YEAR 2003 ACTION ITEMS
Mr. Hamers presented the Strategic Planning Action Items list with status for
each item for reference purposes. Director Woodside motioned to receive
and file the report. Director Ferryman seconded. Motion carried •
unanimously.
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- a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 5
INSTITUTIONAL ISSUES — SPECIAL MEETING — MONDAY, OCTOBER 13, 2003 AT
6:00 P.M.
There will be a Special Meeting on Monday, October 13, 2003, at 6:00 p.m. to
discuss Institutional Issues.
VARIABLE RATE STRUCTURE FOR TRASH COLLECTION PROGRAM
Mr. Fauth reported Staff has been investigating options for a variable rate
structure. Discussion was held regarding the possible options.
Mr. Fauth will distribute copies of a publication to Directors with information
regarding variable rate structure programs.
President Schafer motioned to direct Staff to finish their research on a
variable rate structure for trash collection and include the item on the 2004
Strategic Plan for consideration. With the impending management change at
Costa Mesa Disposal, it will be 2004 before a variable rate structure can be
considered. Director Woodside seconded. Motion carried 5 -0.
• PUBLIC OUTREACH
Mr. Harriers provided an overview of a memorandum dated September 10,
2003, on expanding the public outreach program and satisfying the strategic
planning action item.
RECYCLING REPORTS
WASTE DIVERSION REPORT — AUGUST 2003
Director Perry motioned to receive and file the Waste Diversion Report for
August, showing a diversion rate of 50.05. Director Ferryman seconded.
Motion carried 5 -0.
WASTE DIVERSION REPORT — SEPTEMBER 2003
The Waste Diversion Report for September has not yet been received.
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COSTA MESA SANITARY DISTRICT
a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 6
CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL
FOR SEPTEMBER 2003
PAYMENT FOR AUGUST 2003 SERVICES
Director Perry motioned to approve contract payment to CR Transfer for
recycling services and disposal for the month of August 2003, in the amount of
$167,060.57. Director Ferryman seconded. Motion carried 5 -0.
PAYMENT FOR SEPTEMBER 2003 SERVICES
Director Perry motioned to approve contract payment to CR Transfer for
recycling services and disposal for the month of September 2003, in the amount
of $174,887.25, subject to verification by Staff of the Waste Diversion Report.
Director Ferryman seconded. Motion carried 5 -0.
STANDARDIZED TRASH CONTAINER PROGRAM
Mr. Harriers reported there were no updates to report.
ORANGE COUNTY RESIDENTIAL TRASH COLLECTION SURVEY - OCTOBER 2003 •
Ms. Revak presented the Orange County Residential Trash Collection Survey
for the Board's review. Ms. Revak reported 15 cities had an increase in their
trash collection rate and Irvine and Mission Viejo reported decreases. Ms.
Revak reported 14 cities have a variable rate structure. The average monthly
rate is $13.04.
RECYCLING COMMITTEE - OCTOBER 7, 2003— 9:00 A.M. DIRECTOR WORTHINGTON
AND PRESIDENT SCHAFER
STRATEGIC PLANNING 2003 — PUBLIC OUTREACH — CLASSROOM RECYCLING
PROJECTS
Director Worthington reported the vermi- composting project is underway with
five worm containers placed in two schools. Mr. Fauth reported $416 has
been spent on the program to date.
COSTAMAZING - DISTRICT PARTICIPATION
Director Worthington brought in a sample of peppercorns he picked for
distribution at the District's booth at the Fairview Park on February 7, 2004.
Ms. Revak will locate plastic bags for the insert and peppercorn samples. •
COSTA MESA SANITARY DISTRICT
- a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 7
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MINI - TELEPHONE BOOK RECYCLING PROGRAM
Ms. Revak reported the Mini Telephone Book Recycling Program ended on
September 19, 2003 with 1,800 books collected.
2003 SCHOOL TELEPHONE BOOK RECYCLING PROGRAM
Ms. Revak reported the 2003 Telephone Book Recycling Fundraising
Opportunity and Contest letters have been sent to the schools and responses
are coming in. The program will run from December 1, 2003 to January 12,
2004.
USED TIRE ROUND UP — SATURDAY, OCTOBER 11, 2003
Director Worthington reported the Used Tire Round -Up will be held on
Saturday, October 11, 2003 from 10:00 a.m. to 2:00 p.m. at the City
Corporation Yard.
Director Worthington reported he wished to discuss an item not on the
agenda.
• Director Perry motioned to consider a nonagenda item based on the fact that
the need arose after the agenda was prepared and there is a need to take
immediate action. Director Woodside seconded. Motion carried 5 -0.
Director Worthington reported being contacted by the Orange Coast College
Recycling Center regarding approximately 400 used tires that had been
illegally dumped at their facility on Adams Avenue. Mr. Michael Carey,
Recycling Coordinator, requested the District's assistance in disposing of the
tires. The cost to remove the tires would be approximately $400.
Director Woodside motioned to approve assistance in the disposal of the tires
at the Orange Coast College Recycling Center, not to exceed $500.00,
subject to verification that the Orange Coast College Recycling Center is a
nonprofit organization. Director Perry seconded. Motion carried 5 -0.
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COSTA MESA SANITARY DISTRICT
s ° a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 8
ENGINEER'S REPORTS
WASTE DISCHARGE REQUIREMENTS — (WDR)
GENERAL UPDATE
Mr. Hamers presented a copy of the letter and accompanying materials
mailed to food service businesses in the District to introduce the new grease
control program.
Mr. Burns reported a draft ordinance was completed on October 7, 2003. Mr.
Burns thanked Mr. Hamers for his input and contribution to the ordinance.
REPORT ON EMERGENCY WORK
Mr. Hamers provided a synopsis of two emergency repairs, the Napoli Way
sewer main and 23rd Street pumping station electrical panel, made on an
immediate basis so as not to endanger the public.
Director Perry motioned to approve the report on emergency work. Director
Woodside seconded. Motion carried 5 -0. •
TREASURER'S REPORTS
INVESTMENT OVERSIGHT COMMITTEE (PRESIDENT SCHAFER AND DIRECTOR
FERRYMAN)
Mr. Puckett reported the Investment Oversight Committee met on October 8,
2003, and a report will be provided at the November regular meeting.
INVESTMENT AUDIT REPORT
Mr. Puckett provided an overview of the Report of Independent Certified Public
Accountants on Agreed -Upon Procedures Applied to Investment Portfolio
performed by Conrad and Associates, L.L.P. Mr. Puckett reported in all cases
the auditors found the investments of the District were in conformance with the
investment policy guidelines.
UPDATE OF POOLE V. COUNTY OF ORANGE
Mr. Puckett provided an article from the September 25, 2003 edition of the Los
Angeles Times regarding the status of the Robert Poole v. Orange County
lawsuit. A hearing has been set in the 4th District Court of Appeal in Santa for •
December 16, 2003.
y ° "'4•. COSTA MESA SANITARY DISTRICT
- a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 9
ATTORNEY'S REPORTS
Mr. Burns had nothing to report.
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT
REGULAR MEETING - SEPTEMBER 24, 2003 (DIRECTOR FERRYMAN
Director Ferryman attended the September 24, 2003 meeting and reported
the following:
• Review counsel's contract
• Contesting of contractor's bid
• Profit and Loss Statement for Tule Ranch
INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC)
President Schafer attended the Executive Board Meeting on October 7, 2003.
ISDOC QUARTERLY MEETING - OCTOBER 30, 2003
President Schafer reported the Quarterly Meeting will be held on October 30,
2003, 11:30 a.m. at the MWDOC Headquarters in Fountain Valley. The
Honorable Thomas W. Wilson, Chairman, Orange County Board of
Supervisors, will be speaking. All Directors will be in attendance.
LOCAL AGENCY FORMATION COMMISSION ( LAFCO)
President Schafer attended the September 8, 2003, LAFCO public hearing and
discussed the following.
• Update on legislation
• Update on MSRs
• Update on Cal - LAFCO Conference in San Francisco on September 23 -26
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA)
President Schafer attended the 3rd Governance Workshop on Finance on
Monday, September 22, and the Annual Conference of CSDA on Tuesday
through Thursday, September 23 -25.
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- Va MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
OCTOBER 8, 2003
PAGE 10
OLD BUSINESS
There was no old business discussed.
NEW BUSINESS
SPECIAL DISTRICT INSTITUTE (SDI) ADMINISTRATION SEMINAR OCTOBER 16 -17, 2003
The Special District Administration Seminar will be held October 16 -17, 2003. No
Directors expressed an interest in attending the Seminar.
ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
President Schafer reported she reserved the Golden Dragon for December 18,
2003, for a District holiday party.
Mr. Hamers thanked Debbie and Denise for attending the meeting and commended
them for the excellent job they perform.
Director Worthington thanked Mr. Burns for opening his home for the recent
Oktoberfest.
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 TO DISCUSS
ANTICIPATED LITIGATION (1 CASE)
President Schafer adjourned to a closed session at 7:33 p.m.
President Schafer returned to the Regular meeting at 8:02 p.m. reporting no
action was taken during the closed session.
ADJOURNMENT
At 8:03 p.m., President Schafer adjourned the meeting.
SECRETARY PRESIDENT
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• COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
OCTOBER 13, 2003
The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed
Special Meeting on October 13, 2003 at 6:00 p.m., in Conference Room 1A 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, Legal Counsel; Marc Puckett, District Treasurer
• I. Institutional Issues
A. Opening Remarks by Manager /District Engineer
Manager Rob Hamers presented the Institutional Issues report dated May
29, 2003. The purpose of the Special Meeting is to update the Board on
Staff's progress on the District becoming independent from the City of
Costa Mesa.
B. Review of CMSD Staff Work to Date
Mr. Fauth provided a proposed new organizational chart, noting that if the
Board desired Treasury responsibilities from the current District Treasurer,
it will have to be by Agreement with the City of Costa Mesa. Job
Descriptions have been re- written for the Assistant Manager and Board
Secretary as corresponding positions in the City of Costa Mesa do not
exist. Other job descriptions are similar to City positions with minor
changes in tailoring them to CMSD.
Mr. Fauth reported the District can provide its employees with CalPERS
benefits, however, the process takes six to nine months.
• Documents available for review by the Board were Administrative
Regulations, Employee Handbook, Payroll Information and the 1994
Study by Creative Management Solutions.
(Protecting our community's health 6y providing soCuf waste and sewer col%ction services.
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Costa Mesa Sanitary District Page 2
Minutes of Special Meeting Held October 13, 2003
Discussion was held on a new site for the District and the advantages of
buying a property over leasing. It was suggested that a Real Estate Agent
be contacted to locate desirable property for District purchase.
C. City Response to District Inquiries
Mr. Hamers provided a timeline on City response to District inquiries. No
formal response has been received from the May 29, 2003 termination
letter sent to the City.
D. Upcoming Meeting Between Two Directors and Two Council
Members
A meeting is scheduled for October 29, 2003 and attendees will be:
City Manager Allan Roeder, City of Costa Mesa Council Members Libby
Cowan and Mike Scheafer and CMSD District Manager Rob Hamers and
Directors Arlene Schafer and Jim Ferryman.
E. Direction to Staff
Board directed Staff to
a. Start application process with CalPERS.
b. Contact a real estate agent to locate property for District to
purchase.
C. Provide an Agenda for October 29, 2003 Meeting with City
Council members and City Manager.
i. Provide list of services District potentially desires
to contract with City.
1. Cost of Services
II. Consideration of New Meeting Time for the Regular November Board of
Directors Meeting
The November 2003 regular meeting time has been changed to Wednesday,
November 12, 2003 at 6:00 p.m. in conference room 1A at City Hall.
III. Public Comments
There were no members of the public present and no public comments made.
The meeting adjourned at 7:38 p.m.
Secretary
President
(Protecting our community's health 6y providing soCuf waste and sewer codection services.
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CMI Staff: 714 - 754 -5043 Davis School g
Re Y lin Presentation 11 -05 -06
Stanley Jensen
2149 Shelley Street
Placentia, CA 92870
(714) 996 -4725
Costa Mesa Sanitary District
77 Fair Drive
P.O. Box 1200
Costa Mesa, CA 92628 -1200
Attention: Board of Directors
November 3, 2003
Re: Real Property Situated at 261 Mesa Drive in the City
of Costa Mesa, APN 439 - 202 -23
Trash Disposal and "Sanitary Assessment" Fees
Dear Board of Directors
INTRODUCTION
Title to the above referenced real property is held by
the estate of ELLA JONSSON, deceased; I am the administrator.
• On August 14, 2003, I appeared at the public hearing
held by the Costa Mesa Sanitary District (CMSD) to argue that
CMSD is assessing trash collection and sewer fees that are
arbitrary and unfair, especially as the relate to the subject
real property. The board and the other attendees were most
cordial and I thank you for that.
The probate court is demanding that I promptly complete
my duties as administrator and bring the probate procedure to
conclusion. Before I can do so, however, I must resolve my
dispute with CMSD. If we cannot reach an agreement promptly,
I must file a lawsuit in the Superior Court so it can determ-
ine this matter. In view of these facts, time is of the
essence and I must have your response within fifteen days.
As I was leaving the aforesaid meeting, President Schafer
promised to send me a copy of Proposition 218. I did not
receive that copy so I obtained a copy from my California
Assemblymember, along with a copy of the "Arguments in Favor
of" and the "Arguments Against" the proposition. I have
thoroughly researched the law on this matter and it is clear
to me that the way CMSD is assessing trash collection and
sewer fees is in gross violation of the mandates of the
proposition.
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FACTS •
Situated on the referenced property are five small rentals,
one with three rooms, one with two rooms, and three with one
room. Each rental is suitable for and is occupied by one
tenant. Trash generated by the tenants and by the property
typically will not fill even three of the containers provided
by CMSD. For the convenience of the tenants, however, four
containers are on the property.
CMSD assesses the owner of the subject property a "Trash
Disposal Fee" and a "Sanitary Assessment" fee that are five
times the fees it assesses owners of a single family residence.
For a single family residence, CMSD will supply and service
as many trash containers as the owner requests, all for the same
minimum fee (Ord. #37).
CMSD has offered the following reasons for assessing fees
against the subject property that are five times those assessed
against a property with a single family residence:
1. There are five rentals on the property
2.
Each
rental
has
a private entrance
3.
Each
rental
has
some kitchen facilities
•
4.
Each
rental
has
its own mail box, and
5. Each rental has a bathroom.
LAW AND ARGUMENT
Proposition 218 was approved by the voters in November,
1996. Its provisions became part of the California Constitution,
effective July 1, 1997 by adding:
Article 13C "Voter Approval for Local Tax Levies," and
Article 13D "Assessment and Property- Related Fee
Reform."
Only Article 13D is relevant to this matter. §1 "Applicat-
ion," and §2 "Definitions" make it clear that the Article
applies to CMSD and the subject fees. Any argument that it
does not would be specious so no recitation is deemed necessary
here.
- 2 - •
The above five criteria relied on by CMSD in setting the
40 fees on the subject parcel are all invalidated by §6(b)(3),
which provides:
"The amount of a fee or charge imposed upon any parcel
or person as an incident of property ownership shall not
exceed the proportional cost of the service attributable
to the parcel."
•
It does not appear that CMSD has made any attempt to
comply with this constitutional mandate.
The fees are assessed against the property parcel (Ord. #37)
and they are added to the owner's tax bill. The fees are not
assessed against the tenants and the number of tenants cannot
be a consideration by CMSD in setting the fees assessed against
a parcel.
Article 13D of the Constitution permits only one criterion
in setting the fees, i.e., "the proportional cost of the service
attributable to the parcel." ( §6(b)(3))
CMSD has offered the argument that because the rentals
have some kitched facilities, the potential to generate more
trash exists. Paragraph (b)(4) specifically provides:
"Fees or charges based on potential or future
use of a service are not permitted."
CMSD's "Trash Collection Regulations" as set out in its
Ordinance No. 37, provide that for a single family residence
CMSD will furnish and service as many containers as the owner
requests, with no additional fees. Parcel owners who take
advantage of this liberal regulation are not paying their
"proportional cost" so the costs of picking up their excess
trash is born by all the other parcel owners.
To date, only a few opinions have been published by the
courts of record relating to the provisions of Article 13D
that are discussed herein. They are discussed in Howard Jarvis
Taxpayers Assn. v. City of Roseville, 97 CA4th 637. While the
facts of that case differ from those presented here, the legal
issues are the same and the case does relate to fees for water,
sewer and refuse service. In footnote 16 (p. 645) the court
cites and quotes from an opinion of the California Attorney
General:
"We believe that each water fee or charge must be
examined individually in light of the (Proposition 218)
constitutional mandate" 80 Ops. Cal. Atty. Gen, 183,
186 (1997)
- 3 -
In the "Analysis of Proposition 218" prepared by the
Legislative Analyst, in the part entitled "Proposed Require-
ments for Property - related Fees" (p. 2), the analyst states:
"The measurement's requirements would also expand
local government's administrative workload. For
example, local governments would have to adjust many
property- related fees, potentially (1) setting them on
a block -by -block or parcel -by- parcel basis and (2) ending
programs that allow low - income people to pay reduced
property- related fees."
The administrative workload of CMSD will, of course, expand
when it begins complying with the mandates of Proposition 218.
On May 21, 2002, I first complained to CMSD about the way
fees were set for trash collection. Management's response was
that the fees are being reconsidered and that fees will be
changed so as to be based on the amount of trash picked up.
No changes were made.
On August 14, 2003, when I registered the same complaint
at the public hearing held by CMSD, the same management
responded that the changes in the fee structure necessary to
comply with the mandates of Proposition 218 would be too time
consuming, and that if the changes were made, other parcel
owners would complain, i.e., those who are generating large
amounts of trash but not paying their proportional share of
the costs of its disposal. Management said it may reconsider
the fee structure but not for at least another year.
Clearly, none of the excuses offered by CMSD for its
failure and refusal to comply with the mandates of 218 are
valid. The mandates of the Constitution must prevail over
the objections of the parcel owners who generate excessive trash
but pay only the minimum fee, and those mandates must prevail
over the objections of CMSD management that it would be too
time consuming to comply with those mandates.
SETTLEMENT DEMAND
I firmly believe that CMSD should be ordered by a court
to restructure its fees. If I must file a lawsuit to resolve
this matter, that is one of the things that will be requested
in the complaint so that all parcel owners similarly situated
will benefit. In my circumstances /capacity, however, my first
consideration must be the interests of the heir to the estate.
I trust that your first interest is to dispose of this matter
as rapidly as possible without the inconvenience and burden of
a lawsuit.
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•
Settlement demand, therefore, is that the fees assessed
against the subject property be reduced to be more commensu-
rate with the amount of services provided. As for the trash
fee, I believe that since CMSD has furnished four containers,
a fee that is twice that assessed against a single family
residence would be fair.
As for the "Sanitary Assessment" fee, the "proportional
cost" of the service provided is not as easy to establish.
I see no reason why it should differ from that for a single
family residence but for settlement purposes, I will agree
to a reduction to twice the fee assessed against a single
family residence.
The provisions of Article 13D have been in effect for
six years and CMSD has collected excessive fees during that
time. Demand is hereby made, therefore, for refund of the
fees that exceeded twice the fees against a single family
residence, subject to any applicable statute of limitations.
CONCLUSION
All the members of the Board of Directors, and the
management and staff with whom I have had contact regarding
this matter have been very pleasant and cordial, and I
appreciate that.
I trust that you will find the settlement demand to be
fair and reasonable so this matter can be disposed of without
litigation.
Please respond promptly. If you should choose not to
settle this matter, I must file the lawsuit without further
delay.
Thank you for your courtesy and cooperation.
Very truly yours,
Stanley Jensen
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