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Minutes - Board - 2012-09-11 Item 01 ,,,SP SAN1T4/4. ' O� y�ocno " a de '773 fii 9°' 'ycbRPorzoy `a COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING SEPTEMBER 11 , 2012 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on September 11, 2012 at 9:00a.m. at 628 W. 19tri Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: Robert Ooten, James Ferryman, Jim Fitzpatrick, Art Perry, Mike Scheafer STAFF PRESENT: Scott Carroll, General Manager; Noelani Middenway, Deputy District Clerk; Javier Ochiqui, Management Analyst OTHERS PRESENT: Mike Balliet, Michael Balliet Consulting; Debbie Morris, HF&H Consulting; Alma Reyes, City of Costa Mesa; Dean Ruffridge, • CR&R; Maria Lazaruk, CR&R; Pat Schiavo, CR&R; Paul Relis, CR&R PUBLIC COMMENT None AB 341 —CALIFORNIA'S NEW GOAL: 75% RECYCLING General Manager, Scott Carroll, presented information regarding Recycling Bill AB 341 and its policy goal for the State of California including Cal Recycles change from a diversion methodology to a recycling methodology. He noted Cal Recycles proposed changes in calculating the base tonnage rate to achieve the new recycling goal. The methods by which Cal Recycle plans to achieve the new recycling goals were noted and included the expansion and addition of recycling facilities, creation of additional jobs, stronger markets for recycling materials within the state, and greater participation in recycling behavior by the public. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 11, 2012 Mr. Carroll highlighted implementation concepts that he felt were relative to CMSD and the community. He expressed support of new expanded facilities and suggested that incentives or tax breaks be offered to the private industries to expand their facilities as well as modifying the Recycling Market Development Zone (RMDZ) program statewide to provide financial assistance to any recycling manufacturer. He noted that staff opposed tipping fees that would be passed on to the residents as well as Cal Recycles increase in oversight.inspections. Mr. Carroll provided information on organics and the proposed repealing of the Alternative Data Cover (ADC). He noted that staff's position is opposed to repealing the ADC, tipping fees for ADC, and phasing out landfill organics until additional landfill organic management facilities are developed. He expressed support of funding for organic infrastructure, but not through tipping fees. He provided information on Cal Recycles proposed increase of commercial recycling, increased requirements for Material Recovery Facilities (MRFs) performance, and grants for a multifamily recycling program. He indicated staffs support of requiring businesses to recycle greater than fifty percent in documented tonnage and the use of dirty MRFs. Mr. Carroll suggested that the State provide a more detailed definition of what a multifamily unit is. He indicated that staff opposed the business enforcement component which may ultimately lead to business leaving the state. He further discussed the increased procurement demand, management of plastics, construction demolition, support of cardboard recycling programs, source reductions and promotion of local zero waste activities and workshops. Mr. Carroll concluded stating that staff recommended that a letter be sent to Cal Recycle noting the Districts position and suggestion that Cal Recycle focus on source reduction and not just on recycling. Discussion followed regarding conversion technology, the per capita disposal rate, the Alternative Daily Cover (ADC), commercial recycling, tipping fees, and Cal Recycles definition of multifamily being identified as anything four units or greater. Mike Balliet, of Mike Balliet Consulting, noted that multi-family units are covered with the implementation of AB 341 and that one hundred percent of the customer base would be in compliance. Director Fitzpatrick expressed interest in receiving an update on the Zero Waste Plan, developing a policy on how to handle multi-family pick-ups, and resolving the issue of dumped mattresses and large item pick-ups. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 11, 2012 Discussion followed regarding the audit of CR&Rs financial records. Dean Ruffridge, with CR&R, indicated that recycling revenue reports have been provided to the District for the past six years and felt that CR&R was in full compliance. President Ooten expressed support of formulating a joint plan. with the City to ensure that the City is successful in reporting to the State whatever is required. General Manager Carroll reiterated that staff required direction from the Board as to how to proceed with responding to the State. Director Perry moved to approve staff's recommendations with the exception of the response to the reform beverage container program. Director Ferryman seconded the motion. Director Fitzpatrick provided a substitute motion to move forward with staff's recommendations with the exception of the response to the reform beverage container program and to put a specific plan in place to address the issue and bring back the CR&R contract to determine the contractual obligations on the rate and how the value of recyclables does or does not impact the District's rates. There was no second. Motion died. Director Fitzpatrick made an additional motion for the Operations Committee to review how recyclables specifically do or do not play a role in the District's rate and how the $19.95 rate in the contract should be evaluated. President Ooten seconded the motion, which failed 2-3 with Directors Ferryman, Perry and Scheafer opposed. Director Perry called for the vote on the original motion, which carried 4-1 with Director Fitzpatrick opposed. Solid Waste/Recycling Technology Study General Manager Carroll presented information on his suggestion for the Board to approve the District going out to bid to award a contract to a consultant for the purpose of conducting a Solid Waste/Recycling Technology Study. He indicated that the consultant would survey the technology used by haulers that will assist in achieving the seventy-five percent diversion rate and how much the implementation of said technology into the Zero Waste Plan would cost the residents. He stated that staff recommended the Board of Directors approve appropriating $50,000 from the Solid Waste Fund Balance and direct staff to perform a Solid Waste/Recycling Technology Study. President Ooten asked if staff had reviewed the RFP's from other cities regarding said technology study and suggested that staff do so and provide a financial overview of the COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD SEPTEMBER 11, 2012 cost for such a consultant study and what technologies were evaluated and selected. Discussion followed regarding technology used by various haulers and the status of Orange Coast College's anticipated expansion of its recycling center. Director Fitzpatrick expressed interest in working with CR&R on the technology of the hauler trucks, and the opportunity to audit diversion. He discussed looking at a three can system specifically designed within the. District's technology, and how to utilize the super fund relative to the technology study. He questioned the purpose of conducting a request for proposal (RFP) if the District is locked into a six year evergreen contract with one hauler. President Ooten indicated that he is in support of conducting a report, but did not feel that the report needed to be conducted at this present time. Director Perry made a motion to place a hold on the solid waste/recycling technology study. Director Scheafer seconded the motion with a question regarding a presentation from the CR&R. Discussion followed regarding the request for CR&R to provide the Board of Directors with a technology report. Director Fitzpatrick made a substitute motion for the Board to not support the recommendation of appropriating $50,000.00 from the Solid Waste Fund to conduct a Solid Waste/Recycling Technology Study, and to calendar a date specific for a workshop with CR&R, with input from the City, to discuss technology, the single can versus three can method, to establish the dollar amount of the super fund and determine how to utilize the amount to achieve higher diversion rates. Director Scheafer seconded the motion, which carried 5-0. ADJOURN There being no other business to come before the Board, President Ooten adjourned the meeting at 10:57a.m. • S retary /fres d nt