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Minutes - Board - 2006-08-14 P COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14, 2006 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on August 14, 2006, at 6:00 p.m. at 628 W. 1 9tn Street, Costa Mesa. President Ferryman called the meeting to r o de r at 6:00 p.m. PLEDGE OF ALLEGIANCE Director Schafer led the Pledge of Allegiance. INVOCATION Vice President Woodside gave the invocation. ROLL CALL DIRECTORS PRESENT: James Ferryman, Greg Woodside, Arlene Schafer, Dan Worthington, Art Perry DIRECTORS ABSENT: None STAFF PRESENT: Robin B. Hamers, Manager/District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager/Clerk of the District; Wendy Davis, Treasurer; Sherry Kallab, Accountant; Karl Dulake, Maintenance Supervisor; Ron Shef, Code Enforcement Officer; Denise Gilbert, Permit Processing Specialist OTHERS PRESENT: Ms. Gina Keuilan CONSENT CALENDAR COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AuGusT 14,2006 PAGE 2 Director Perry motioned to approve the Consent Calendar as presented. Director Schafer seconded. Motion carried 5-0. Ms. Davis reported the Treasurer's Report and the Financial Reports were not yet completed and will be submitted for review at the September regular meeting. Director Schafer amended her motion to approve the Consent Calendar as presented, with the exception of the Treasurer's Report and the Financial Report. Director Perry seconded. Motion carried 5-0. REPORTS MINUTE APPROVAL Minutes of Special The Minutes of the Special Meeting of July 6, 2006, Meeting —July 6, 2006 were approved as distributed. Minutes of Recycling The Minutes of the Recycling Committee Meeting Committee Meeting - of July 10, 2006, were approved as distributed. July 10, 2006 Minutes of Regular The Minutes of the Regular Meeting of July 12, Meeting eet g — 2006 were approved as distributed. July li Jul 12, 2006 pp Minutes of Special The Minutes of the Special Meeting of July 24, Meeting —July 24, 2006 2006, were approved as distributed. MANAGER'S REPORTS Refunds There were no refunds for the month of July 2006. Occupancy Report and The Trash Occupancy Count documented an Payment of $194,982.55 increase of 7 units for the occupancy report for solid to Costa Mesa Disposal — waste collection as of August 1, 2006. Therefore, the August 2006 total for August is 21,297. Board directed Staff to prepare a warrant for $194,982.55 to Costa Mesa Disposal on September 1, 2006, for August 2006 collection count of 21,297. COSTA MESA SANITARY DISTRICT i►, MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14,2006 PAGE 3 Monthly Spill Report to The Monthly Spill Report to the Regional Water Regional Water Quality Quality Control Board (RWQCB) for July 2006 was Control Board (RWQCB) accepted as submitted. ENGINEER'S REPORTS Project Status Report The Project Status Report dated August 2006 was accepted as submitted. TREASURER'S REPORTS ial Report as of The Financial Report as of June 30, 2006 was not Financial cia 2006 Rep available for review and will be submitted in September. Treasurer's Report as of The Treasurer's Report as of June 30, 2006 was June 30, 2006 not available for review and will be submitted in September. Warrant 2007-2 for July Warrant Resolution #CMSD 2007-2 was approved, 2006 in the amount of authorizing the President and Secretary to sign the $818,113.57 warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $818,113.57. Directors Expenses for the Director Compensation and Expense Month of July 2006 Reimbursements for the Month of June 2006 were approved and ratified as follows: Director Ferryman: $510.00 Director Perry: $510.00 Director Schafer: $1,020.00 + $8.90 Vice President Woodside: $680.00 Director Worthington: $850.00 + $7.00 END OF CONSENT CALENDAR WRITTEN COMMUNICATION There were no items of written communication. 0 COSTA MESA SANITARY DISTRICT 'TS MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14, 2006 PAGE 4 PUBLIC COMMENTS Ms. Keuilan volunteered to distribute signs on behalf of directors running in the upcoming Costa Mesa Sanitary District election. MANAGER'S REPORTS YEARLY RATE SETTING PUBLIC HEARING Mr. Hamers reported the Public Hearing to set the trash collection rates and annual liquid waste charges to be collected with general taxes was held at the Neighborhood Community Center on July 24, 2006. Mr. Burns provided an additional legal opinion to reaffirm that the trash and sewer fees collected by the Costa Mesa Sanitary District are property related fees subject to Proposition 218 and the 45-day notice for public hearings. Mr. Hamers suggested the Board focus on the sewer program when setting next year's rates due to the need to fund the state-mandated WDR program. ® Mr. Hamers explained funding to provide for the program is written into the WDR. TRASH CONTAINER PROGRAM - UPDATE ON VARIABLE RATE STRUCTURE FY 2006-2007 Mr. Hamers reported copies of the schedule of charges to be instituted on September 1, 2006, have been distributed to the Board and Staff. Copies will be distributed to the public on request. Mr. Fauth is working with Mr. Ruff ridge of CR&R to coordinate recordkeeping and assure that Staff at both CMSD and CR&R are aware of all container exchanges and which residences are required to pay the $8.00 fee for having more than two containers. Mr. Hamers asked the Board to consider whether or not a refund would be appropriate for residents who have purchased a container within the last few months before the variable rate system took effect. Mr. Fauth reported staff has been explaining the potential rate change for the last few months to residents requesting an additional container. President Ferryman inquired as to the number of containers recently sold to residents. Mr. Fauth estimated staff sold two to three containers per week for the last 3 months. COSTA MESA SANITARY DISTRICT 1►,; MINUTES OF BOARD OF DIRECTORS REGULAR MEETING vCif AUGUST 14,2006 PAGE5 Staff requested clarification for issuing refunds to residents who purchased containers in the time period immediately prior to the rate change. Staff will review and provide a recommendation to the Board regarding residents who purchased containers from January to June 2006 at the September 2006 regular meeting. Ms. Davis requested direction regarding a budget for the refunding of recently purchased containers be given at that time. A postcard will be distributed on August 21, 2006, providing additional notification of the rate change. Director Schafer suggested a press release in addition to the postcards distribution. DISTRICT YARD UPDATE INTERIM AGREEMENT WITH ORANGE COUNTY FAIRGROUNDS Mr. Fauth reported Staff has not been able to locate a suitable piece of property to purchase for a District yard. Mr. Fauth discussed the possibility of temporary storage at the Orange County Fairgrounds. Mr. Fauth met with officials at the Fairgrounds to review possible options for temporary short-term storage and identify an appropriate location. The storage area will be provided at no cost to the District in exchange to cleaning the Fairgrounds' sewer lines. Mr. Fauth reported a written agreement will be provided by the Fairgrounds for a timeframe of September 1, 2006 to May 31, 2007. Mr. Fauth reported the Fairgrounds will also allow District contractors with reciprocal agreements to park vehicles in the designated area as long as appropriate insurance needs are met. CMSD STRATEGIC PLAN YEAR 2005/2006 STRATEGIC PLANNING ACTION ITEMS UPDATE ON PLANNING Ms. Revak reported she has not received a response to the District letter of July 14, 2006, to Rauch Communication regarding setting a date for the 2007 Strategic Plan workshop. COSTA MESA SANITARY DISTRICT 'TS MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14,2006 PAGE6 NEW DISTRICT HEADQUARTERS BUILDING AND GROUNDS AD Hoc COMMITTEE UPDATE ON COLUMN IMPROVEMENTS, PAINTING AND LANDSCAPING Mr. Fauth reported the contractor for the column improvements is in the process of verifying the price and availability of materials from his supplier. Mr. Dulake reported speaking with the contractor earlier in the day and was told the contractor is finishing up on his current project and the CMSD project is slated to begin in approximately two weeks. RECYCLING REPORTS WASTE DIVERSION REPORT-JULY 2006 Ms. Revak presented the Waste Diversion Reports for July 2006 showing a 50.44% diversion rate. The Waste Diversion Report was received and filed. Director Worthington requested a plus/minus percentage column be added to the Waste Diversion Report to assist in comparing the volume recycled with the previous year. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR JULY 2006 SERVICES Ms. Revak presented the Invoices for July 2006 recycling services and disposal. Director Perry motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of July 2006 in the amount of$186,279.18. Director Schafer seconded. Motion carried 5-0. Director Perry motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of July 2006 in the amount of $14,590.80. Director Schafer seconded. Motion carried 5-0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING TS AUGUST 14, 2006 PAGE 7 ORDINANCE ENFORCEMENT OFFICER'S REPORT Mr. Shef presented his written report and stated the period included the July 4th holiday, which resulted in trash collection and large item pickup to occur one day later that week. Consequently, many residents scheduled for collection had items at the curb incorrectly for the entire week. PERSONNEL RULES AND REGULATIONS Mr. Fauth presented the Costa Mesa Sanitary District Personnel Rules and Regulations dated August 10, 2006. Mr. Fauth highlighted a change on page 19, Rule 13, Section 1. Overtime. An inclusion of allowing "comp time" was added as an option in lieu of overtime pay. Ms. Davis reported there is a cap on comp time with the balance accumulated during the fiscal year for all eligible employees to be paid off in full effective June 30 of each year, and to be paid at that current year's salary rate. Vice President Woodside suggested discussion of including a provision for contributing vacation hours to allow employees to assist each other during a long-term illness as an item for a future human resource meeting. Director Schafer motioned to approve the change in the content of the Personnel Rules and Regulations manual. Vice President Woodside seconded. Motion carried 5-0. OFFICE SPECIALIST II JOB DESCRIPTION - NEW HIRE Mr. Hamers reported Staff is formulating their approach to the addition of another employee for the District. Mr. Hamers reported multiple employees in the District are currently working overtime and the need will undoubtedly increase as a yard is acquired and there are more people and equipment to take care of. Overtime hours are more expensive for the District and can lead to employee burnout. Mr. Hamers reported he sees an increasing need for additional manpower. Director Worthington inquired as to which employees are entitled to overtime. Ms. Davis reported all employees at the District are eligible for overtime hours. Director Worthington reported there was a discussion at a recent the seminar he attended estimating it takes approximately 15 man hours per week to take care of lateral inspection requirements. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14,2006 PAGE 8 Staff is evaluating the needs and will return with a staffing suggestion for the Board. ELECTION 2006 Ms. Revak reported the candidate-filing deadline for the November election is August 11, 2006, and the seats of Arlene Schafer, Greg Woodside and Dan Worthington are up for election. Ms. Revak reported Vice President Woodside will not be seeking reelection. This change will extend the election filing deadline to August 16, 2006. Current candidates include Ms. Arlene Schafer, Mr. Dan Worthington, Mr. Gary Monahan, Mr. Bob Ooten, and Mr. Chuck Perry. RECYCLING COMMITTEE — MONDAY, AUGUST 21, 2006 - 12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA, (DIRECTORS WOODSIDE AND WORTHINGTON) RECYCLING COMMITTEE GOALS FOR 2005/2006 Vice President Woodside reported the Recycling Meeting will be held on August 21, 2006 and a report will be provided at the September regular meeting. UNIVERSAL WASTE- REQUIREMENTS EFFECTIVE FEBRUARY 9, 2006 To be provided at the September regular meeting. PHARMACEUTICAL DISPOSAL To be provided at the September regular meeting. LARGE ITEM COLLECTION-JUNE 12 THRU AUGUST 26, 2006 To be provided at the September regular meeting. SOURCE REDUCTION To be provided at the September regular meeting. "ALTERED OCEANS" To be provided at the September regular meeting. COSTA MESA SANITARY DISTRICT 1►, MINUTES OF BOARD OF DIRECTORS REGULAR MEETING vcr AUGUST 14, 2006 PAGE 9 ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS—(WDR) GENERAL UPDATE Mr. Hamers reported he held a staff meeting where the State Water Discharge Requirements was reviewed in its entirety and stated the Costa Mesa Sanitary District is changing from a permitee to an enrollee. Mr. Hamers will continue to participate in the Steering Committee. ANNIVERSARY LANE WATER LINE— IRWD Mr. Hamers reported there was no new information or changes. Mr. Hamers sent a letter to Mr. Paul Jones II, General Manager, Irvine Ranch Water District, dated July 12, 2006, requesting a meeting to discuss mutual concerns. Mr. Hamers has not received a response to date. TREASURER'S REPORTS PROPOSED CPI ADJUSTMENT- CR TRANSFER, INC. Ms. Davis reported the District's contract with CR&R 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 February each year. Staff calculated the 12-month CPI factor as of February 2006 to be 5.12%. The contract maximum annual increase is capped at 3.00%. Since the actual CPI factor is greater than the contract maximum, the basic rate would be increased by 3.00% or $1.24 per ton. CRT will not receive a CPI adjustment for the fiscal year beginning July 1, 2006 since the new contract prohibits an adjustment until the District's annual rate charged to its customers drops to lower or equal to second highest in the County. Therefore, for the 2006-07 fiscal year, the recycling/disposal basic rate is frozen at the prior year rate. The landfill rate of $11.00 per ton remains unchanged since the diversion rate remains at 50%. COSTA MESA SANITARY DISTRICT 1►, MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14, 2006 PAGE 10 Increase/(Decrease) 2006-07 2005-06 Amount Percent Basic rate $41.22 41.22 $0.00 0.00% Landfill fee $11.00 $11.00 $0.00 0.00% Transfer rate $52.22 $52.22 $0.00 0.00% PROPOSED CPI ADJUSTMENT- COSTA MESA DISPOSAL Ms. Davis reported the District's contract with CR&R, the basic rate for CMD's trash hauling services 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 February each year. Staff calculated the 12-month CPI factor as of February 2006 to be 5.12%. The contract maximum annual increase is capped at 3.00%. Since the actual CPI factor is greater than the contract maximum, the basic rate would be increased by 3.00% or $0.2747 per occupancy per month. CMD will not receive a CPI adjustment for the fiscal year beginning July 1, 2006 since the new contract prohibits an adjustment until the District's annual rate charged to its customers drops to lower or equal to second highest in the County. Therefore, for the 2006-07 fiscal year, the recycling/disposal basic rate is frozen at the prior year rate. The District's new monthly rate per occupancy payable to Costa Mesa Disposal is as follows: 2005-06 Trash rate per occupancy $9.1554 2006-07 Rate frozen based on new contract $0.0000 2006-07 Trash rate per occupancy effective 7/1/06 $9.1554 Vice President Woodside motioned to approve the zero percent rate increase for CR Transfer, Inc. and Costa Mesa Disposal. Director Perry seconded. Motion carried 5-0. ATTORNEY'S REPORT COSTA MESA DISPOSAL AND CR TRANSFER MASTER AGREEMENT II Mr. Burns reported Staff is continuing to follow up on the necessary steps to fully implement the Master Agreement with CR&R. CMSD Staff has received a copy of the CR&R handbook for review. Staff discussed setting up a calendaring system and requested the appropriate CR&R records for review. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING vid AUGUST 14, 2006 PAGE 11 Ms. Davis reported the payoff date for the containers is October 1, 2006 and stated she will cut the check for the payoff in September. Mr. Burns advised the Board there will be modifications to various CMSD ordinances in the near future to bring them into line with the Master Agreement. BILL OF SALE FOR TRANSFERRED PROPERTY Mr. Burns presented the draft Bill of Sale for the Board's review. SEWER LATERAL COMPLIANCE ORDINANCE Mr. Fauth reported a meeting has been set for August 17, 2006 at 9:00 a.m. with staff and local realtors to discuss a proposed sewer lateral compliance ordinance. Mr. Fauth is in the process of developing an agenda with input from the ad hoc committee. SEWER LATERAL INSURANCE Mr. Burns reported he successfully contacted American Water regarding sewer lateral insurance and is waiting for the appropriate representative to provide information. SUMMONS— 185 E. WILSON, RICHARD CHARLES ASTIN, JR. Mr. Hamers reported he recommended the SDRMA appointed attorney contact plaintiff's counsel regarding some incorrect information in the summons. Mr. Hamers has not yet received an update from the SDRMA attorney. Mr. Burns reported he is looking into the inverse condemnation exclusion in the District's policy. CURBSIDE HHW 2006-07 & 2007-08 HHW COLLECTION AGREEMENT- ADDENDUM No. 1 Mr. Burns presented Addendum No. 1 to the Curbside HHW 2006-07 & 2007- 08 HHW Collection Agreement. Vice President Woodside motioned to approve the Addendum No. 1. Director Perry seconded. Motion carried 5-0. C COSTA MESA SANITARY DISTRICT i1 MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14,2006 PAGE 12 TECHNOLOGY RESOURCE CENTER AGREEMENT Mr. Fauth reported he provided the agreement to the Technology Resource Center and has not received a signed response. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD)-JULY 19, 2006 (PRESIDENT FERRYMAN) President Ferryman chaired the Orange County Sanitation District Meeting and reported they restructured the human resources division and eliminated the position of human resources director. Mr. Bob Ghirelli was appointed Acting Assistant General Manager. Mr. Jim Ruth will continue to hold the position of Interim General Manager until June of 2007. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) (NEXT MEETING SCHEDULED FOR SEPTEMBER 28, 2006) DUES FOR FISCAL YEAR 2006-2007 IN THE AMOUNT OF$1,200.00 Director Schafer motioned to approve dues in the amount of $1,200 for the Santa Ana River Flood Protection Agency. Director Perry seconded. Motion carried 5-0. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (DIRECTOR SCHAFER) Director Schafer attended the July 11, 2006 meeting where they discussed nominations for the executive board. Director Worthington attended the executive board meeting and reported they discussed investing the balance of approximately $7,000 that has remained on the books for several years. A new meeting location will be sought for meetings in 2007 due to the Orange County Sanitation District's new booking policy which will not allow ISDOC to commit to meeting dates for an entire year. Director Worthington reported they discussed Proposition 84 and the potential enlargement of Perris Lake. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14,2006 PAGE 13 ISDOC QUARTERLY MEETING-THURSDAY, AUGUST 31, 2006 11:30 A.M. ORANGE COUNTY SANITATION DISTRICT President Ferryman and Directors Schafer, Worthington, and Perry plan to attend the ISDOC Quarterly Meeting on August 31, 2006. Mr. Neil McCormick, New Executive Director, California Special Districts Association, will be the guest speaker. LOCAL AGENCY FORMATION COMMISSION (LAFCO) (DIRECTOR SCHAFER) Director Schafer reported a subcommittee was formed to discuss Costa Mesa/Newport Beach annexation issues. Director Schafer is a member of the subcommittee. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (DIRECTOR SCHAFER) 2006 ANNUAL CONFERENCE & EXHIBITOR SHOWCASE SEPTEMBER 25-28, 2006, NORTH LAKE TAHOE Director Schafer will be attending the 2006 Annual Conference & Exhibitor Showcase on September 25-28, 2006 in North Lake Tahoe. Director Schafer will be running for secretary of CSDA Executive Board. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) ANNUAL CONFERENCE-AUGUST 9-12,2006, MONTEREY, CA(PRESIDENT FERRYMAN, DIRECTORS PERRY, SCHAFER &WORTHINGTON) Director Schafer requested an item be added to the Recycling Agenda for September to discuss her recent conference attendance in Monterey on Waste Management for Monterey Regional. Director Perry reported on an inverse condemnation case in Palo Alto involving a sewer backup into a home. The homeowner's insurance company paid the claim and then sued the City. The City initially won, but lost on appeal. Mr. Hamers explained if a sewer backs up and damages a residence, the insurance provider considers it property damage and pays the claim. If the resident sued under inverse condemnation, there is no coverage. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING v AUGUST 14, 2006 PAGE 14 Director Perry inquired as to whether the District has a CPR and first aid plan for employees. Ms. Revak, Mr. Hamers and Mr. Dulake have all had CPR training, however, an update to their certifications is required. Director Perry attended the legislative meeting and reported they discussed the following bills: ❑ AB 1333 (Frommer) increasing penalties for grease waste haulers. ❑ SB1359 (Torlakson) subsurface installations ❑ SB1675 (Kehoe) renewable diesel fuel Director Perry provided Ms. Revak with a copy of the ethics book received at the seminar. Director Perry reported Board members must be recertified every two years and the certification must be on file at the District office for five years. Directors will provide a copy of their certificate to Ms. Revak to be filed. Mr. Burns will be bringing information to the Board regarding a discrimination policy on providing hookups for affordable housing developments. Director Perry reported CASA is instituting a conference call system for committee members. OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030 WACO Director Schafer provided an update from CSDA at the WACO meeting. Director Worthington attended the WACO meeting and reported Mr. Gary Kline from the California Energy Commission spoke on energy and how public agencies will be requested to reduce their use of electrical power. Director Worthington suggested the District investigate the feasibility of utilizing solar energy to provide power for some of the pumps used in the District. OLD BUSINESS There was no old business discussed. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 14,2006 PAGE 15 NEW BUSINESS Director Worthington reminded Board and Staff about the potluck on Tuesday, August 29, 2006, at 5:30 p.m. at his residence. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Mr. Fauth distributed a CD entitled "Restaurants Protecting our Waterways" produced by the Orange County Stormwater Program containing recommended training for food service establishments. ADJOURNMENT At 7:32 p.m., President Ferryman adjourned the meeting. cLitfLe / AAAli SECRETARY PRESIDENT