Minutes - Board - 1992-06-11s
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MINUTES OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS
REGULAR MEETING HELD JUNE 11, 1992
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary. District met in regular session on
June 11, 1992, at 7:30 p.m., at the Civic
Center, 77 Fair Drive, Costa Mesa.
Directors Present: James Wahner, Nate Reade,
James Ferryman, Dick Sherrick
Directors Absent: Harry Green, excused.
Staff Present: Roy June, Attorney
Robin Hamers, Acting
Manager /Engineer,
Susan Temple, Finance
Director, Donna Theriault,
Accountant, Florine Reichle,
Assistant Manager /Clerk of
the District
Guest: Jeff Wysard, Irvine, CA
Director Wahner called the meeting to order at 7:30 p.m.
Director Sherrick led the Pledge of Allegiance.
Director Reade gave the Invocation.
Director Wahner welcomed guest, Jeff Wysard, on behalf of the Board.
MINUTES OF MAY 14, 1992:
Director Reade noted that on page 7, under Warrant Report, the
minutes should read: "seconded by Director Ferryman," instead of
Director Reade. It was moved by Director Reade, seconded by
Director Ferryman, and carried, that the minutes of May 14,
1992, be approved as corrected.
It was noted that at the May 8 Study Session all members of the
Board were present with the exception of Director Green who was
excused.
WRITTEN COMMUNICATIONS:
Mr. Hamers submitted a copy of the second letter that has been
mailed to the appropriate legislators in opposition to the 1992-
1993 budget proposal which would transfer property tax revenue
from special districts which perform enterprise activities to
school districts.
A communication from Rebecca Q. Morgan, State Senator, has been
received in response to the District's letter.
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Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 2
A copy of the letter that was mailed to the Clerk of the Orange •
County Superior Court in re: Mark A. Jackson, et al. v. Pacific
Amphitheater expressing the District's desire not to be included
in the class action of the above - entitled case was submitted to
the Board for its information.
A copy of a memorandum from William Morris, Director of Public
Services, to the City Council stating that although the City has
deleted from its 1992 -93 budget the Annual Large Item Pick Up
due to budget cuts, the District has agreed to fund the program.
He suggested that Council send a letter to the District thanking
the Board for continuing the program.
An article printed in the Orange County Register on May 28,
1992, indicating tentative approval of a 28% increase in sewer
service charges in the City of Los Angeles in order to finance
$200 million in system improvements in the fiscal year beginning
July 1, was distributed to the Board. This proposed increase
will add $4.06 per month to the average residential bill.
An article printed in the Orange County Register on June 11,
1992, entitled: "Jury Wants Greater OC Effort to Collect
Hazardous Wastes," was distributed as information for the Board.
MANAGER'S REPORT:
OCCUPANCY REPORT:
Mr. Hamers reported there was a decrease in the trash and
garbage collection of four units as of June 1, 1992, thereby
making the Occupancy Report now at 22,779.
Motion was made by Director Reade, seconded by Director
Sherrick, to accept the occupancy count report as presented.
Motion carried 4 -0.
APPOINTMENT OF DISTRICT MANAGER:
Since the State Attorney General's Office could not determine
that a conflict of interest would exist in having a manager who
also serves as the Engineer of the District, it was recommended
that "Acting" be dropped from Mr. Hamer's title of Manager. It
was moved by Director Reade, seconded by Director Sherrick that
the word "Acting" be deleted from the Manager's title and that
the final contract be brought before the next study session for
finalization. Motion carried 4 -0.
REFUNDS:
Prior to action on the requested refunds, Director Sherrick
wanted to place on record that he was opposed to denying refunds
to those individuals who were paying for a service not being
used.
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Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 3
• Jeffrey Wysard
Mr. Wysard was present to speak to the Board concerning his
request for a refund for the years 1986 -87 - 1991 -92. Mr.
Hamers explained to Mr. Wysard how the policy of the District
worked and that only the current year could be refunded
according to Board policy.
Brian Singer
Mr. Hamers presented a request for refund of trash and sewer
assessment fees from Brian Singer, 340 Via Lido Nord, Newport
Beach, CA 92663, Assessor's Parcel 422 - 162 -06, in the amount of
$1,742.31 for the years 1989 -90 - 1991 -92. Mr. Hamers informed
the Board that staff is recommending approval of a refund in the
amount of $1,011.12 for trash assessment for the year 1991 -92,
and refund of trash and sewer overcharge for the years
requested, in accordance with District policy, and to be granted
permanent exemption status. After discussion, it was moved by
Director Reade, seconded by Director Ferryman, that the refund
of $1,011.12 be approved. Motion carried 3 -1. Director Sherrick
voting no.
Brian Singer
Mr. Hamers presented a request for refund of trash and sewer
assessment fees from Brian Singer, 340 Via Lido Nord, Newport
Beach, CA 92663, Assessor's Parcel 422 - 162 -05, in the amount of
$1,742.31 for the years 1989 -90 — 1991 -92. Mr. Hamers informed
the Board that staff is recommending approval of a refund in the
amount of $1,011.12 for trash assessment for the year 1991 -92,
and refund of trash and sewer overcharge for the years
requested, in accordance with District policy, and to be granted
permanent exemption status. After discussion, it was moved by
Director Reade, seconded by Director Ferryman, that the refund
of $1,011.12 be approved. Motion carried 3 -1. Director Sherrick
voting no.
Jeffrey Wysard
Mr. Hamers presented a request for refund of trash assessment
fees from Mr. Jeffrey Wysard, P. O. Box 10743, Santa Ana, CA
92711, Assessor's Parcel No. 422 - 412 -16, in the amount of
$1,672.17. Mr. Hamers informed the Board that staff is
recommending approval of a refund in the amount of $560.64 for
the year 1991 -92 only, in accordance with District policy; and
to be granted permanent exemption status. After discussion, it
was moved by Director Reade, seconded by Director Ferryman, that
the refund of $560.64 be approved. Motion carried 3 -1, Director
Sherrick voting no.
Jeffrey Wysard
Mr. Hamers presented a request for refund of trash assessment
fees from Mr. Jeffrey Wysard, P. O. Box 10743, Santa Ana, CA
92711, Assessor's Parcel No. 422 - 412 -17, in the amount of
$1,204.46. Mr. Hamers informed the Board that staff is
recommending approval of a refund in the amount of $560.64 for
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Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 4
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the year 1991 -92 only, in accordance with District policy, and
to be granted permanent exemption status. After discussion, it
was moved by Director Reade, seconded by Director Ferryman, that
the refund of $560.64 be approved. Motion carried 3 -1, Director
Sherrick voting no.
SOURCE REDUCTION & RECYCLING ELEMENT:
Refund from Pacific Bell:
Mr. Hamers informed the Board that the District had received
reimbursement in the amount of $1,442.95 from Pacific Bell
Directory for promotion of the telephone directory recycling
program.
State Grant Rejected:
Mr. Hamers further informed the Board that the Household
Hazardous Waste grant the District had applied for had been
rejected. Director Wahner asked the reason for rejection, and
Mr. Hamers responded that the State just did not have the funds
anticipated. Also, the State prioritized applications from
those areas that were really in trouble. Mr. Hamers said there
would be opportunities in the future to reapply for funds.
DIVERSION REPORT FOR MAY 1992:
May: Total tonnage: 2,854.78 Percent Recycled: 25.100 •
It was moved by Director Reade, seconded by Director Ferryman,
and carried 4 -0, that the Diversion Report be accepted as
presented.
Director Sherrick asked if anyone had visited the facility in
Stanton. It was suggested that the Directors contact Ms.
Reichle to schedule a time convenient to go on a tour of the
facility in Stanton. Ms. Reichle mentioned that CR Transfer is
planning an open house in the near future.
Legal Opinion from Attorney June re AB -939:
Mr. June explained that his legal opinion covered four major
subject areas:
1. General Authority of the Sanitary District to deal with
solid waste.
2. Authority of the District to franchise solid waste disposal
enterprises.
3. District's enforcement authority for AB -939.
4. Methods by which District may extend its franchise powers
and enforcing powers for AB -939.
Mr. Hamers informed the Board that this should be a focus of the
study session on June 18.
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Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 5
Director Sherrick informed the Board that he would be unable to
attend the meeting, therefore, he expressed several concerns. He
was assured his concerns would be addressed at the study
session.
TREASURER'S REPORT:
Mrs. Temple presented the Financial Report for May 1992. After
discussion and review, Director Reade made a motion, seconded by
Director Ferryman, and unanimously carried, that the Financial
Report for May 1992, be approved.
BUDGET:
Treasurer Temple presented the Budget for the Fiscal Year 1992-
1993 as follows:
REMODELING DISTRICT MANAGEMENT OFFICE: Mr. Hamers presented a
purchase order which reserves funds from the 1991 -92 Budget for
remodeling District Administration Office in the amount of
$70,479 as follows:
Approximate remodeling costs: $ 4,428
Approximate furniture costs 32,000
Approximate equipment costs 5,000
Approximate salary reserve 29,051
The Board felt the amount proposed for furniture costs could be
• reduced and asked staff to give it further study.
Solid Waste Appropriations - 1992 -93 $3,325,143
Liquid Waste Appropriations - 1992 -93 2,563,628
Total 1992 -93 Budget: $5,888,771
In presenting the appropriations for solid and liquid waste as
compared with the budget adopted for the 1991 -92 fiscal year, an
increase of 7.3 percent was shown.
The calculations submitted include amendments made to the Budget
as recommended by the Board at its May study session. The liquid
waste budget proposed for 1992 -93 indicates an increase of
$405,659 in appropriations. The projected assessment for
households would increase by approximately $7.39 or 39% per
year. As part of the 39% increase, the projected loss of
$160,000 in property tax revenue increased the preliminary
liquid waste assessment by $2.96 per residential household, or
16 %. Final figures cannot be determined until the trash and
liquid assessment roll is completed in August.
�D�RB�r�o
It was moved by Director Reade, seconded by Director Ferryman,
that the 1992 -93 Budget be approved in the amount of $5,888,771.
Motion carried -9- 3 -j, �i,ee�?r�a- s�e���e�� .4B.�r.¢..r/..✓9
REMODELING DISTRICT MANAGEMENT OFFICE: Mr. Hamers presented a
purchase order which reserves funds from the 1991 -92 Budget for
remodeling District Administration Office in the amount of
$70,479 as follows:
Approximate remodeling costs: $ 4,428
Approximate furniture costs 32,000
Approximate equipment costs 5,000
Approximate salary reserve 29,051
The Board felt the amount proposed for furniture costs could be
• reduced and asked staff to give it further study.
Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 6 ,
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RESOLUTION NO. 92 -516 - ESTABLISHING FEES UNDER ORDINANCE NO. 20
Resolution No. 92 -516 was presented for adoption, being "A
RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY
DISTRICT ESTABLISHING CHARGES AND FEES AND CITING AUTHORITY
THEREFOR. After discussion it was moved by Director Ferryman,
seconded by Director Reade, that Resolution No. 92 -516
establishing fees according to Ordinance No. 20 be adopted.
Motion carried by the following roll call vote:
AYES: DIRECTORS - Wahner, Ferryman, Reade and Sherrick
NOES: Directors - None
ABSENT: Directors - Green
PROPOSED RATE INCREASE BY DISTRICT ENGINEER /MANAGER:
A request for increase effective July 1, 1992, from Mr. Hamers
for Engineer /Manager services was presented for Board
consideration as follows:
Engineering and Management $59.00 /hour
Draftsman $47.00 /hour
Inspector $42.00 /hour
Retainer $1,100.00 /month
After discussion, it was moved by Director Reade, seconded by •
Director Ferryman that the proposed increase for
Engineer /Manager be approved as submitted. Motion carried 4 -0
ATTORNEY SPECIAL PROJECTS BUDGET:
Proposed AttorneN
consideration by
is the agreement
Mesa Sanitary
obligations as
responsibilities
7's fees for special projects was submitted for
the Board. Being considered in this proposal
between the City of Costa Mesa and the Costa
District regarding the City's recycling
well as District reorganization. The
of the Attorney's office will be:
1. Preparation of Manager's independent contract
agreement between Robin Hamers & Associates and the
Costa Mesa Sanitary District.
2. Revision of the City /District operating contract
including provisions for the enforcement and
administration of Assembly Bill 939.
3. A City /District lease for Sanitary District office
space.
4. Preparation of an Assembly Bill 939 Ordinance for the
City of Costa Mesa.
Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 7
5. Request for proposal for franchise of solid waste
collection and disposal or, in the alternative,
request for qualification from responsible hauler.
6. Franchise agreement or agreements including a
franchise agreement for Costa Mesa Disposal.
Fees proposed are $33,000, which is $15,000 over the established
retainer of $18,000. Billings will be on a "not to exceed"
basis.
It was moved by Director Reade, seconded by Director Ferryman,
that the proposed increase in Attorney's fees be approved as
submitted above. Motion carried 4 -0.
ENGINEER'S REPORT:
PROJECT STATUS REPORT:
Mr. Hamers reported that there were no additions to the project
status report.
DEVELOPMENT UPDATE: There was nothing new to report.
REVIEW OF SEWER PLANS:
Mr. Hamers submitted a list of projects within the Costa Mesa
Sanitary District where the District Engineer of the Costa Mesa
Sanitary signs the plans as both private engineer preparing the
plan, plus as District Engineer of the Sanitary District. The
projects are:
171 E. 18th Street Existing lateral
2375 Elden Avenue Existing lateral
753 Center Avenue Existing lateral
After a review of the projects listed, it was moved by Director
Reade, seconded by Director Sherrick, that no conflict of
interest exists. Motion carried 4 -0.
ACCEPTANCE OF IMPROVEMENTS, PROJECT 123, PUMP STATION RECOATING
AND MAINTENANCE:
It was moved by Director Reade, seconded by Director Sherrick,
that improvements in Project 123, Pump Station Recoating and
Maintenance, be accepted and a Notice of Completion filed; that
payment of 5% retention be authorized 35 days after Notice of
Completion is recorded; exonerate Labor & Material Bond and
Faithful Performance Bond after Notice of Completion is
recorded; exonerate loo Guarantee Bond one year after Notice of
Completion is recorded. (Guarantee Bond is effective for one
year from the date the Notice of Completion is recorded.)
Motion carried 4 -0.
Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 8
ATTORNEY'S REPORT:
Potlach Claim - Attorney June reported that negotiations are
taking place. The District will be notified of the outcome.
OLD BUSINESS:
PENDING ITEM STATUS REPORT: Received and filed.
SPECIAL LARGE ITEM PICK UP:
Agreement between the Costa Mesa Sanitary District and Costa
Mesa Disposal, Inc. for conducting the 1992 "Large Item Pick
Up ", in the amount of $32,375 was presented to the Board for
approval. It was moved by Director Reade, seconded by Director
Ferryman, that the Agreement between the Costa Mesa Sanitary
District and Costa Mesa Disposal, Inc. be approved. Motion
carried 4 -0.
NEW BUSINESS:
RESOLUTION NO. 92 -517 COMMENDING JAMES WAHNER AS COSTA MESA
SANITARY DISTINGUISHED BOARD MEMBER:
Mr. Hamers reminded the Board that last year the Board voted to
nominate President James Wahner for the California Special
Districts Association Distinguished Board Member Award.
Apparently, this nomination was never received by California
Special Districts so staff prepared a nomination for Board
approval and will mail the package by certified mail.
It was moved by Director Reade, seconded by Director Ferryman,
that Resolution No. 92 -517, being "A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE COSTA MESA SANITARY DISTRICT HONORING JAMES A
WAHNER AS A DISTRICT BOARD MEMBER OF THE COSTA MESA SANITARY
DISTRICT AND STATING REASONS THEREFOR," be approved. Motion
carried by the following roll call vote.
AYES: DIRECTORS - FERRYMAN, READE AND SHERRICK
NOES: DIRECTORS - NONE
ABSENT: DIRECTORS - GREEN
ABSTAINING: DIRECTORS - WAHNER
SPECIAL DISTRICTS RISK MANAGEMENT INSURANCE RENEWAL:
It was moved by Director Ferryman, seconded by Director Reade,
that renewal of the District's participation in the risk -
financing programs of the Special District Risk Management be
approved in the amount of $34,982. Motion carried 4 -0.
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Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 9
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1992 ELECTION:
Transmittal of election information was submitted to the Board
which should be completed and returned to the Registrar of
Voters office by July 1, 1992, as required by Elections Code
Section 23510.5.
July 1 The Notice of Elective Offices must be filed
with the Registrar of Voters.
July 13 Papers can be taken out for election.
August 7 Election papers must be filed with the Registrar
of Voters by 5:00 p.m.
Motion was made by Director Ferryman, seconded by Director Reade
to notify the Registrar of Voters of the elective offices and
provide the following information: The candidate's statement is
to be 200 words or less and will not be paid by the District.
Motion carried 4 -0.
WARRANT REPORT:
Director Ferryman made a motion, seconded by Director Reade,
authorizing the President and Secretary to sign Report No.
92 -12, instructing the Treasurer of the District to draw a
warrant from the Costa Mesa Sanitary District General Fund in
the amount of $475,717.81. Motion carried 4 -0.
ORAL COMMUNICATIONS:
It was announced that Ken Wanzer would be retiring in July and
a retirement farewell is being held at The Barn,.July 10, 1992.
Those wishing to attend should contact Ms. Reichle.
ADJOURNMENT:
President Wahner adjourned the meeting at_9:25 p.m.
ES ENT ASSISTANT SECRETARY