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Minutes - Board - 2006-04-20 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 20, 2006 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on April 20, 2006, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. Vice President Woodside called the meeting to order 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: Greg Woodside, Art Perry, Arlene Schafer, Dan Worthington DIRECTORS ABSENT: James Ferryman, absent and excused 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; Denise Gilbert, Permit Processing Specialist; Ron Shef, Ordinance Enforcement Officer; Karl Dulake, Maintenance Supervisor OTHERS PRESENT: Dean Ruffridge, Senior Vice President, CR&R COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 20,2006 PAGE 2 CONSENT CALENDAR Director Worthington requested the format of financial documents that contain information regarding charges to both sewer and trash be made more user- friendly. He stated he had difficulty in discerning expenses on sewer and trash. Ms. Davis stated the reports are in accordance with the Springbrook software and she will invite Director Worthington to meet to explain the format. Director Schafer inquired as to the timetable for completion of sewer televising. Mr. Hamers reported the sewer televising should be completed by November 2007. Director Worthington motioned to approve the Consent Calendar as presented. Director Schafer seconded. Motion carried 4-0. REPORTS MINUTE APPROVAL Minutes of City/Districts The Minutes of the City/Districts Liaison Committee Meeting — Liaison Committee Meeting of March March 17, 2006 17, 2006, were approved as distributed. Minutes of Recycling The Minutes of the Recycling Committee Meeting — March Committee Meeting of March 20, 20, 2006 2006, were approved as distributed. Investment Oversight The Minutes of the Investment Committee Meeting — March Oversight Committee Meeting of 23, 2006 March 23, 2006, were approved as distributed. Minutes of Regular Meeting - The Minutes of the Regular Meeting of March 23, 2006 March 23, 2006, were approved as distributed. MANAGER'S REPORTS Refunds There were no refunds for the month of March 2006. . COSTA MESA SANITARY DISTRICT ` MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 20, 2006 0 s�,: " PAGE 3 Occupancy Report and The Trash Occupancy Count Payment of $194,872.68 to documented an increase of 4 units for Costa Mesa Disposal — April the occupancy report for solid waste 2006 collection as of April 1, 2006. Therefore, the total for April is 21,285. Board directed Staff to prepare a warrant for$194,872.68 to Costa Mesa Disposal on May 1, 2006, for April 2006 collection count of 21,285. Monthly Spill Report to The Monthly Spill Report to the Regional Water Quality Regional Water Quality Control Board Control Board (RWQCB) (RWQCB) for March 2006 was accepted as submitted. ENGINEER'S REPORTS Project Status Report The Project Status Report dated April 0 2006 was accepted as submitted. TREASURER'S REPORTS Financial Report as of March The Financial Report as of March 31, 31, 2006 2006 was accepted as submitted. Treasurer's Report as of The Treasurer's Report as of March March 31, 2006 31, 2006 was accepted as submitted. Warrant 2006-10 for March Warrant Resolution #CMSD 2006-10 2006 in the amount of was approved, authorizing the $641,226.94 President and Secretary to sign the warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $641,226.94. 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 20, 2006 PAGE 4 Directors Expenses for the Director Compensation and Expense Month of March 2006 Reimbursement for the Month of March 2006 were approved and ratified as follows: Director Ferryman: $1,020.00 Director Perry: $340.00 Director Schafer: $1,020.00 + $13.35 Director Woodside: $340.00 Director Worthington: $1,020.00 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 TRASH COLLECTION PROGRAM OPPORTUNITIES FOR DECREASING CMSD TRASH COLLECTION RATES Mr. Hamers reported the Board asked Staff to investigate the District's rate and provide an explanation as to why it is close to the highest rate in Orange County. Mr. Hamers reported Staff met with CR&R to receive input. A letter from Mr. Dean Ruffridge, Senior Vice President of CR&R, was provided to the Board. Mr. Ruffridge's letter offered the explanation that the District has a higher cost because the Costa Mesa Sanitary District has a "single stream" program with a guaranteed 50% recycling rate. Mr. Hamers discussed the options available to the Board: 1. Accept the justification provided by CR&R that states the CMSD rate is appropriate at the existing and projected future cost levels that include a yearly CPI increase plus new pass-through costs. • COSTA MESA SANITARY DISTRICT Alp MINUTES OF BOARD OF DIRECTORS REGULAR MEETING V APRIL 20, 2006 ;s. PAGE 5 2. Retain a consultant who has experience in trash collection matters to perform a rate justification investigation. 3. Place Costa Mesa Disposal and CR Transfer on notice that the six- year rolling contract is being terminated with the intention of placing the trash collection and recycling contract out to bid. Mr. Burns inquired as to whether the current demand for materials makes recyclables more valuable and thereby brings in more money. Mr. Ruffridge acknowledged recyclables are currently garnering a high rate. Ms. Davis asked Mr. Ruffridge why the District isn't receiving a reduced rate when CR&R is receiving more money for recycling 50% of the trash. Director Worthington suggested a future contract should contain a provision to receive a portion of the money received from selling the recyclables. Mr. Burns asked if the District's rate would go down if they recycled a lesser percent. Mr. Ruffridge explained that in a contract where a city shares in recyclable income, they share when the return drops and the cost to dispose of the materials exceeds the return on the item. Mr. Hamers requested CR&R provide an estimation of charges should the District reduce recycling percentages. CR&R will provide the list for comparison at the May 4, 2006 Special Meeting. Mr. Ruff ridge stated the rate the District is paying is negotiable. Mr. Fauth provided an overview of the breakdown of volume of trash picked up per day from the eleven various routes. Vice President Woodside suggested the item be continued to the Special Meeting for further discussion. Additional questions for Staff are to be directed to Ms. Revak. Mr. Ruffridge left the meeting at 6:50 p.m. C COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 20,2006 PAGE 6 REQUEST FROM CR&R FOR PASS-THROUGH FUEL COSTS AND OTHER PROVISIONS CR&R has requested an increase for pass-through fuel costs, processing costs, and other increases that are extraordinary in nature. Discussion on May 4, 2006 will include this request. TRANSFER OF OWNERSHIP OF TRASH CONTAINERS TO COSTA MESA DISPOSAL Mr. Hamers reported the Board asked Staff to ascertain whether CR&R would take over ownership of the trash containers. Mr. Hamers reported CR&R would take over responsibility of the containers if the District would complete the payoff of the initial loan taken to purchase the containers. CR&R would not provide compensation to the District for the existing containers. CR&R agreed to absorb all future costs for replacement and purchase of additional new containers. PROJECTED 2006-2007 TRASH COLLECTION PROGRAM BUDGET Ms. Davis and Ms. Kallab prepared an estimate of what the 2006-2007 budget would be for trash services. The minimum increase, based on costs, would be 7 to 8 percent. SEWER PROGRAM FIELD MAINTENANCE SERVICES Mr. Hamers reported contractors National Plant Services and Jimni are performing well for the District. PRELIMINARY 2006-2007 CIP Mr. Hamers reported a revised Capital Improvement Plan was faxed to Board members. Mr. Hamers reported the projected sewer program increase was pared down to approximately a 12 percent increase, with the CIP consisting of mostly maintenance items such as televising the system, FOG program, and WDR requirements for cleaning. Mr. Burns suggested Mr. Hamers request the City of Costa Mesa provide ® the District with any/all records from cleaning the sewer system. Special Meetings swill be held on May 4 2006 and May a 25, 2006 for Y y o additional discussion. COSTA MESA SANITARY DISTRICT � rr MINUTES OF BOARD OF DIRECTORS REGULAR MEETING V APRIL 20, 2006 ?. PAGE 7 DISTRICT YARD UPDATE Mr. Hamers reported the sale of the property for a District yard fell through and a letter requesting reimbursement of expenses has been sent. Mr. Hamers reported renting a yard appeared to be costly and Staff will continue to search for a yard to purchase. CMSD STRATEGIC PLAN YEAR 2006 STRATEGIC PLANNING ACTION ITEMS The Year 2006 Strategic Planning Action Items report was received and filed. Mr. Hamers had no additional input. NEW DISTRICT HEADQUARTERS BUILDING AND GROUNDS AD HOC COMMITTEE UPDATE ON ROOF, GUTTERS, AND COLUMN IMPROVEMENTS Mr. Fauth reported the agreement has been signed and the contractor is waiting for dry weather to begin the roof. RECYCLING REPORTS WASTE DIVERSION REPORT-MARCH 2006 Ms. Revak presented the Waste Diversion Reports for March 2006 showing a 50.58% diversion rate. Director Perry motioned to receive and file the report. Director Schafer seconded. Motion carried 4-0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR MARCH 2006 SERVICES Ms. Revak presented the invoices for February 2006 recycling services and disposal. Director Schafer motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of March 2006 in the amount of $174,197.04. Director Perry seconded. Motion carried 4-0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING ® v APRIL 20,2006 PAGE 8 Director Schafer motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of March 2006 in the amount of $12,728.10. Director Perry seconded. Motion carried 4-0. STANDARDIZED TRASH CONTAINER PROGRAM REPORTS Mr. Hamers reported Staff meets with Mr. Shef on a regular basis and during their recent meeting three items of concern regarding the standardized trash container program were discussed. The number one item of concern is removing the trash containers the evening after the trash is collected. Number two, all the trash inside the containers with the lids closed and number three is the marking of addresses on the containers by residents. Mr. Fauth provided a synopsis of performance review of Costa Mesa Disposal. Mr. Fauth reported District Staff will meet with Costa Mesa Disposal on June 12, 2006, to discuss the 7-item list compiled by Staff and sent to Norma Fernandez, Costa Mesa Disposal, on April 19, 2006. Overall, the District is pleased with the service, but would like to see improvement in a few areas. Mr. Fauth provided a status update on the number of containers in inventory. The Ordinance Enforcement Summary Report for the month of March 2006 was accepted. Mr. Shef reported address marking seems to be increasing in the multi-family housing areas. Mr. Shef speculated the rainy weather contributed to containers being left out after pickup and trash bags not being picked up by CMD drivers. RECYCLING COMMITTEE — MONDAY, APRIL 17, 2006 - 12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA, DIRECTORS WOODSIDE AND PERRY RECYCLING COMMITTEE GOALS FOR 2006/2006 Vice President Woodside reported a program with the Girl Scout troup has been initiated and they will meet on Friday, March 21, 2006. Vice President Woodside reported receiving an email from Mr. William Anderson, Curbside, Inc., describing their battery bucket program. Curbside distributes buckets with the capacity to hold 80-100 pounds of COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING 44 APRIL 20, 2006 0 -,_ ,- PAGE S used batteries to be collected and properly disposed for a fee of $175 per bucket. Vice President Woodside stated the battery bucket opportunity will be discussed in the next recycling committee meeting. UNIVERSAL WASTE-REQUIREMENTS EFFECTIVE FEBRUARY 9, 2006 RECYCLING EVENT-SATURDAY,JUNE 17,2006 Vice President Woodside provided some highlights on the June 17, 2006 event to educate the public on the new universal waste requirements. The contractor is preparing a mailing to the businesses in the City. The City of Costa Mesa will include the information on the event in their recreational flyer. Mr. Fauth provided a 3-page handout from Integrated Waste Management entitled Wastes Banned from the Trash listing items that • require disposal other than household or small business trash containers. UPDATED FLYER Mr. Fauth reported the E-Waste flyer is being revised. TOUR OF CR&R AND LANDFILL - MAY 23, 2006 — NEWPORT HEIGHTS ELEMENTARY SCHOOL Vice President Woodside reported there will be a tour of the CR&R materials recovery facility and the Frank Bowerman landfill with Newport Heights Elementary School on May 23, 2006. Ms. Davis will participate in the tour. COSTA MESA PUBLIC SAFETY EMERGENCY SERVICES EXPO — SUNDAY, MAY 7,2006 Vice President Woodside reported there will be a Public Safety Emergency Services EXPO held on Sunday, May 7, 2006. Mr. Fauth reported the District has participated in the event for the last six years. 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 20,2006 PAGE 10 REVIEW REQUEST FOR ADJUSTMENT OF COMPENSATION FOR GENERAL COUNSEL CLOSED SESSION-PERSONNEL EXCEPTION GOVERNMENT CODE SECTION 54957 The Board determined there was no need to adjourn to closed session to discuss performance of General Counsel. Mr. Burns submitted a request for an increase in his hourly rate for the Board's consideration. Mr. Burns requested rate increase is as follows: Position Existing Rate Proposed Rate Senior Attorney, Partner $155 $170 Associate Attorney $115 $125 Law Clerk $75 $80 Paralegal $70 $75 Director Perry motioned to approve the requested rate increase as requested for General Counsel. Director Schafer seconded. Motion carried 4-0. REVIEW REQUEST FOR ADJUSTMENT OF COMPENSATION FOR TREASURER CLOSED SESSION-PERSONNEL EXCEPTION GOVERNMENT CODE SECTION 54957 The Board determined there was no need to adjourn to closed session to discuss performance of the Treasurer. Ms. Davis submitted a request for an increase in her hourly rate for the Board's consideration. Ms. Davis requested a rate increase as follows: Name Current Hourly Adjustment Proposed rate Hourly Rate Marc Davis $105 $7 0 $112 Wendy Davis $75 $5 $80 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING v APRIL 20, 2006 411) PAGE 11 Director Perry motioned to approve the rate increase for Treasurer as requested. Director Schafer seconded. Motion carried 4-0. ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS—(WDR) GENERAL UPDATE Mr. Hamers reported the proposed state requirements are out for public comments. Mr. Hamers reported the District is in full compliance. Mr. Hamers is on the regional steering committee and reported they are looking at some very important issues for the future for sewer maintenance and operation. DEVELOPMENT AT 1901 NEWPORT BLVD— RUTTER DEVELOPMENT Director Schafer motioned to approve and execute the agreement with Rutter Development Corporation subject to payment of $100,000 of in-lieu fees. Director Worthington seconded. Motion carried 3-0. REPORT ON EMERGENCY WORK— PRESIDENT PUMPING STATION At the March 2006 regular meeting, the Board approved purchase of two new pumps to replace the existing pumps at the President Pumping Station. Since then, Mr. Hamers declared an emergency condition when bolts holding one of the pumps in place were no longer secure and it became necessary to replace the pumps under an emergency condition. Mr. Hamers will provide the total cost at the May meeting. TREASURER'S REPORTS FY-2006/2007 BUDGET SPECIAL MEETINGS Vice President Woodside reminded Board members there will be two Special Meetings, May 4, 2006 at 6:00 p.m. and May 25, 2006 at 6:00 p.m. C • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING v APRIL 20,2006 PAGE 12 SELECTION OF INDEPENDENT AUDITORS Ms. Davis reported the firm of Diehl, Evans, & Company, LLP, certified public accountants & consultants, was the lowest bidder and the Board approved the contract at the March 2006 meeting. Ms. Davis stated the contract was ready to execute. TAX AND REVENUE ANTICIPATION NOTE (TRAN) Ms. Davis reported the operating reserve is considered unrestricted reserves and causes the District to have too much available cash to qualify for the Tax and Revenue Anticipation Note. ATTORNEY'S REPORT COSTA MESA DISPOSAL AND CR TRANSFER MASTER AGREEMENT Mr. Burns had nothing additional to add to the Costa Mesa Disposal and CR Transfer Master Agreement. The item will be discussed at the Special meeting scheduled for May. JIMNI SYSTEMS INC. AGREEMENT FOR PUMPING STATION MAINTENANCE Mr. Burns reported the contract with Jimni Systems Inc. is ready to be executed. Mr. Burns instructed Staff to obtain an endorsement of insurance certificate from Jimni Systems. Mr. Fauth reported an endorsement of insurance has been received. Director Perry motioned to execute the agreement with Jimni Systems Inc. Director Schafer seconded. Motion carried 4-0. AB 1234 (SUNSHINE LAW) INTERPRETATION Mr. Burns reported Director Woodside had previously requested he discuss AB 1234 with the Orange County Water District General Counsel. Mr. Burns reported he had a conversation with the Orange County Water District General Counsel to discuss the interpretation of AB 1234. Mr. Burns related they discussed that while AB 1234 did not apply literally, the intent was there and the District should continue with its current interpretation. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 20, 2006 PAGE 13 LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD)-APRIL 19, 2006 President Ferryman was not present to provide an update. SANTA ANA RIVER FLOOD PROTECTION AGENCY(SARFPA) There was no meeting of the Santa Ana River Flood Protection Agency in the month of April. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY(ISDOC) QUARTERLY MEETING,THURSDAY, MARCH 30,2006 Director Schafer attended the Executive Board meeting of March 7, 2006 ® and reported they discussed plans for the General Meeting. Director Schafer attended the Quarterly Meeting of March 30, 2006 and reported John Withers, Director Schafer, and Charlie Wilson gave an update on LAFCO. Director Schafer provided materials for the Board's perusal. Director Worthington reported he was pleased with the selection of the speaker for the Quarterly meeting. LOCAL AGENCY FORMATION COMMISSION (LAFCO) Director Schafer reported she attended the meeting on March 8, 2006. Director Schafer reported they are at a standstill on the Newport Beach/Costa Mesa annexation. Director Schafer provided a letter from the Mayor for the Board's review. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) Director Schafer did not attend the CSDA meeting. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) Director Schafer did not attend the CASA meeting. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING v APRIL 20,2006 PAGE 14 OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030 WACO Director Schafer attended the WACO meeting on March 3, 2006 and reported they discussed sediment management in the Prado reservoir. Mr. Hasan Nouri, President, Rivertech Inc, discussed an option of hydraulic dredging for the Santa Ana River. An update on the restoration effort progress at the Salton Sea was given. Director Schafer provided notes for the Board's review. Director Schafer reported a representative from Western Municipal Water District is requesting letters regarding the water infrastructure. Director Schafer presented materials for the Board's review and requested an analysis of the proposed constitutional amendment be presented at the May 4, 2006 Special Meeting. Ms. Revak will provide research materials • to the Board. Director Worthington reported on Senate Bill 1620 and provided a report on peripheral canals in the delta area. Director Worthington reported there is a new bill out to reduce the Metropolitan Water District Board from 37 members to 13 elected members. Director Worthington reported Orange County has the largest potable water system in the world. Director Worthington reported Joan Irvine is writing a book on Orange County. CHAMBER OF COMMERCE Director Schafer attended the Chamber of Commerce meeting on March 23, 2006 and reported she provided an update to the Chamber on activities of the Costa Mesa Sanitary District. Director Schafer attended a Chamber of Commerce breakfast on Measure M and provided notes for the Board's review. OLD BUSINESS There was no old business discussed. • NEW BUSINESS There was no new business discussed. COSTA MESA SANITARY DISTRICT • MINUTES OF BOARD OF DIRECTORS REGULAR MEETING V • APRIL 20, 2006 PAGE 15 ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Vice President Woodside reported there is a lawsuit against San Bernardino LAFCO from an environmental group regarding a sphere of influence determination. ADJOURNMENT At 8:10 p.m., Vice President Woodside adjourned the meeting. SECRETARY / PRESIDE C