Minutes - Board - 1992-05-14 (2)MINUTES OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS
• REGULAR MEETING HELD MAY 14, 1992
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in regular session on
May 14, 1992, at 7:30 p.m., at the Civic
Center, 77 Fair Drive, Costa Mesa.
Directors Present: Nate Reade, James Ferryman,
Dick Sherrick
Directors Absent: James Wahner,-Harry Green,
both excused.
Staff Present: Roy June, Attorney
Robin Hamers, Acting
Manager, Susan Temple,
Finance Director,
Florine Reichle, Assistant
Manager /Clerk of the Dist.
Director Ferryman opened the meeting in the absence of President
Wahner.
• Director Sherrick led the Pledge of Allegiance.
Director Reade led the invocation.
MINUTES OF APRIL 9 AND APRIL 13, 1992:
It was moved by Director Reade, seconded by Director Sherrick,
and carried, that the minutes of April 9 and April 13, 1992,
be approved as presented.
WRITTEN COMMUNICATIONS:
Mr. Hamers discussed the memo submitted by the District
Treasurer concerning Director Sherrick's question about the
accuracy of the wording in the motion that relates to the
approving of the warrants. Mrs. Temple in her memo informed
the Board that since the Sanitary District currently contracts
with the City of Costa Mes.a to provide all accounting and
related financial services, the current wording and
instruction in the minutes are correct. Director Sherrick
again expressed his concern about the wording in the motion
concerning the approving of the Warrants, "instructing the
City of Costa Mesa to draw a warrant." He felt that the
wording should be changed to "instruct the Finance Director
It was the consensus of the Board that the wording be changed
• to, "instruct the Treasurer of the District to draw the
warrant."
Costa Mesa Sanitary District Minutes- -May 14, 1992 - -Page 2
Mr. Hamers presented the communication to Senator David Roberti
regarding Senate Bill 1538 (Brown Act) as well as Senator
Roberti's response to the District. Senator Roberti informed
the District that this bill has been referred directly to the
Senate Committee on Appropriations and suggested that the
District contact the members of the Senate Committee to
express its disapproval of this Bill.
A communication from Assemblyman Conroy's office addressed to
President Wahner has been received concerning the current
budget proposal calling for a shift in property tax revenues.
Mr. Conroy informed Mr.Wahner of his own opposition to the
Governor's proposal, stating that he would be voting against
this proposal.
Regarding the same measure, a letter was also received from
State Senator, Rebecca Q. Morgan, stating that she was also
deeply concerned about the Governor's proposal and would be
reviewing the proposal very carefully prior to voting on the
budget. Director Sherrick informed the Board that at the
Sanitation District 6 meeting which he attended, their Board
also expressed the need to continue to send documentation in
opposition to the Governor's proposal. Ms. Temple informed
the Board that the State's deficit was close to $9 billion and
that she had prepared the upcoming Budget to reflect the
possible loss of income due to the Governor's proposal.
Director Sherrick moved that due to this emergency situation,
in that action may be taken in Sacramento prior to the next
Board meeting, this item be placed on the agenda. This motion
was seconded by Director Reade and carried: 3 -0.
It was then moved by Director Sherrick, seconded by Director
Reade, that staff be directed to rewrite the letters to the
legislators adamantly opposing AB3214. Motion carried 3 -0.
Mr. Hamers submitted a "Notice of Pendency of Class Action"
concerning a class action noise lawsuit relating to the
Pacific Amphitheater. Since action will be taken on this class
action suit prior to the next meeting, Director Sherrick moved
that this be declared an emergency and placed on the Agenda.
This motion was seconded by Director Reade and carried 3 -0.
It was then moved by Director Sherrick, seconded by Director
Reade, that the staff be instructed to notify the property
authorities in this class action lawsuit that the Costa Mesa
Sanitary District does not wish to be a part of this lawsuit.
Motion carried 3 -0.
Mr. Hamers submitted a copy of the Summons and Complaint
against the District by H. C. Van Ausdeln and Ann Van Ausdeln.
This claim has been rejected by the Sanitary District and
forwarded to the insurance carrier.
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Costa Mesa Sanitary District Minutes- -May 14, 1992 - -Page 3
Mr. Hamers circulated an article printed in the Orange County
Register concerning the Potlatch Corporation case, indicating
that there has been a partial settlement.
MANAGER'S REPORT:
OCCUPANCY REPORT:
Mr. Hamers reported there had been no change in the Occupancy
Report as of May 1, 1992. Total occupancy count remains at
22,783.
Motion was made by Director Reade, seconded by Director
Ferryman, to accept the occupancy count report as presented.
Motion carried 3 -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.
Jan Pedersen
Mr. Hamers presented a request for refund of trash and sewer
assessment fees from Jan Pedersen, 1966 Maple, Unit 9, Costa
• Mesa, CA 92627, Assessor's Parcel 422 - 092 -16, in the amount of
$371.59 for the years 1986 -87, 1989 -90. Mr. Hamers informed
the Board that staff is recommending approval of a full refund
of $371.59 since this parcel is a small strip of land used for
driveway access only. It was moved by Director Reade, seconded
by Director Ferryman that the refund of $371.59 be approved.
Motion carried 3 -0.
Brooke Allman
Mr. Hamers presented a request for refund of trash assessment
fees from Brooke Allman, 594 Hamilton, Unite E,. Costa Mesa, CA
92627, Assessor's Parcel 934 - 110 -02, in.the amount of $276.25
for the years 1990 -91 and 1991 -92. Mr. Hamers informed the
Board that staff is recommending approval of a full refund in
the amount of $140.16 only for the year 1991 -92, 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 $140.16 be
approved. Motion carried 2 -1. Director Sherrick voting no.
Donald Howland
Mr. Hamers presented a request for refund of trash assessment
fees from Donald Howland, 3528 Windspun Drive, Huntington
Beach, CA 92649, Assessor's Parcel No. 422 - 031 -62, in the
amount of $280.32. Mr. Hamers informed the Board that this
parcel is being charged as two units and should be charged as
commercial. Due to a sewer underpayment of $65.98, staff is
• recommending a refund in the amount of $214.34. After
Costa Mesa Sanitary District Minutes- -May 14, 1992 - -Page 4
discussion, it was moved by Director Reade, seconded by •
Director Ferryman, that the refund of $214.34 be approved.
Motion carried 3 -0.
Donalie Hunt
Mr. Hamers presented a request for refund of trash assessment
fees from Donalie Hunt, 302 -A 21st Street, Huntington Beach,
CA 92648, Assessor's Parcel No. 139 - 362 -04, in the amount of
$798.64 for the years 1983 -84 - 1991 -92. Mr. Hamers informed
the Board that this parcel is being charged as a single family
and should be charged as commercial. Staff is recommending a
refund in the amount of $394.10 due to a sewer assessment
underpayment amounting to $404.54. After discussion, it was
moved by Director Reade, seconded by Director Sherrick, that
the refund of $394.10 be approved. Motion carried 3 -0.
John Le
Mr. Hamers presented a request for refund of trash assessment
fees from John Le, 2864 La Salle Avenue, Costa Mesa, CA 92626,
Assessor's Parcel No. 141 - 662 -25, in the amount of $1,843.07,
for the years 1984 -85 - 1991 -92. Mr. Hamers informed the
Board that staff is recommending approval of a refund in the
amount of $560.64 only for the year 1991 -92, 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 2 -1. Director Sherrick voting no.
John Le
Mr. Hamers presented a request for refund of trash assessment
fees from John Le, 2864 La Salle Avenue, Costa Mesa, CA 92626,
Assessor's Parcel No. 141- 662 -22, in the amount of $1,531.91
for the years 1986 -87 - 1991 -92. Mr. Hamers informed the
Board that staff is recommending approval of a refund in the
amount of $560.64 only for the year 1991 -92, 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 2 -1. Director Sherrick voting no.
SOURCE REDUCTION & RECYCLING ELEMENT:
Mr. Hamers informed the Board that Attorney June had been
working with City Attorney Tom Kathe concerning the franchise
agreement for solid waste collection and recycling.
Simultaneously, the Manager's office has been acquiring rate
structures and information from other Sanitary Districts,
Cities and Counties. Assuming the City gives the District the
power to make decisions on negotiating a contract for the
handling of all solid waste collection and recycling, the
Board should be prepared to make a determination on how they
wish staff to proceed on the different avenues available for
selecting a hauler or haulers.
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Costa Mesa Sanitary District Minutes- -May 14, 1992 - -Page 5
• Mr. Hamers noted that entering into a new agreement with the
City of Costa Mesa plus combining the manager and engineer's
positions, will cause extensive changes to existing District
ordinances and policies. Therefore, he recommended adding
ordinance and policy revisions to the Status of Pending Items
Report.
Attorney June informed the Board that he felt the
implementation of AB939 would be a part of the agreement with
the City of Costa Mesa. He further stated that he would have
some documentation in the hands of the Board within the next
two weeks concerning the steps that can be taken by the Board.
At this time, Director Sherrick interjected that it would be
helpful to him if at the lower left or right hand side of each
document was listed the number of the item as it corresponds
with the Agenda item listed.
DIVERSION REPORT FOR MAY 1992:
March: Total tonnage: 2,865.82, Percent Recycled: 23.66%
April: Total tonnage: 3,032.53, Percent Recycled: 23.06%
It was moved by Director Reade, seconded by Director Sherrick,
and carried, that the Diversion Reports be accepted as
presented. Staff was directed to contact Mr. Silva regarding
• the lower diversion rates for March and April.
LANDFILL FEES:
Information on the one -year freeze in landfill fees was
submitted to the Board. The Board of Supervisors voted to
place a moratorium on increases this year as it is the hope
that talks will produce consensus on forestalling or limiting
future boosts. The fee remains at $22.75/ton. The only
increase approved was a $4.25 /ton increase to $55.50 /ton for
the disposal of used tires. A recent news article on the
subject was shared with the Board.
TREASURER'S REPORT:
Mrs. Temple presented the Financial Report for April 1992.
After discussion and review, Director Reade made a motion,
seconded by Director Ferryman, and unanimously carried, that
the Financial Report for April 1992, be approved.
PRELIMINARY BUDGET:
Treasurer Temple presented the Preliminary Budget for the
Fiscal Year 1992 -1993. Mrs. Temple informed the Board that a
detailed breakdown will be provided to the Board prior to the
study session. It was moved by Director Reade, seconded by
Director Sherrick, and carried, that a study session be
• scheduled for noon, May 28, 1992. Director Sherrick stated he
Costa Mesa Sanitary District Minutes- -May 14, 1992 - -Page 6
would like the liquid waste cost breakdown. He said he would
like the Manager to look carefully at the assessment costs for
the liquid waste, particularly in the commercial area.
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.
ATTORNEY'S REPORT:
Potlach report - there has been a partial settlement paid by
Orange County Sanitation Districts.
Attorney June stated he wrote a letter to the Fair Political
Practices Commission to determine whether or not the District
had a conflict of interest problem with the District Engineer
being appointed Manager. He stated that the only conflict of
interest that they would rule on would be in the case of
someone leaving public office and then turning around and
becoming a consultant with the agency in which they just left.
He stated that he then wrote to the Attorney General's office
and he received somewhat the same reply. He recommended that .
the District go ahead and appoint the Acting Manager as
Manager of the District by placing it on the June Agenda for
official action. Following the action of the Board, an
official contract will be drafted. Director Sherrick pointed
out that it should be decided what the official title will be
"General Manager" or "Manager." Attorney June responded that
he is suggesting that the contract be with the firm not the
individual.
OLD BUSINESS:
PENDING ITEM STATUS REPORT: Received and filed.
SPECIAL LARGE ITEM PICK UP:
In bringing the Board up to date, Manager Hamers reminded the
Board that due to reduced revenue, the City of Costa Mesa has
found it necessary to eliminate many special programs from
their 1992 -93 Budget, including the once -a -year special trash
pick up. He stated that this pick up mutually benefits the
City of Costa Mesa, Costa Mesa Disposal and the Costa Mesa
Sanitary District by:
1. Reducing illegal dumping of large items on private and
public property.
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Costa Mesa Sanitary District Minutes- -May 14, 1992 - -Page 7
2. Reducing injuries to personnel and damage to equipment
typically associated with repetitive encounter of large
items.
3. Provides positive public relationships with the entire
District by providing them with an annual opportunity to
conveniently dispose of large items.
It was staff's recommendation to sponsor the Large Item Pick
Up this year in the not to exceed amount of $36,000, and that
the Attorney prepare the necessary contract with Costa Mesa
Disposal to accomplish this project. After discussion, it was
moved by Director Ferryman, seconded by Director Reade, that
the District sponsor the annual pick up. Motion carried 3 -0.
Staff was directed to prepare the appropriate press releases
for the various news media and to ask the contractor to assist
in the paid advertising in the local newspapers.
Hiring of Barry Newton as consultant:
Director Sherrick recommended that steps be taken that would
allow the Manager to hire Barry Newton as a consultant without
having to return to the Board for permission every time he is
needed. Manager Hamers responded that he did not think this
posed a problem as an amount up to $5,000 is in the budget.
Second Monthly Meeting:
Discussion was held concerning the feasibility of holding two
meetings a month instead of one. Mr. Hamers reminded the
Board that clear direction is needed on the number of type of
monthly meetings for the upcoming budget year. It was the
consensus of the Board that it is not necessary at this time
to hold two regularly scheduled meetings, but that holding
study sessions when needed would suffice. It was further
suggested that a study session be scheduled for the first
Thursday following the regular meeting in June and this be
done on a trial basis to see if it will assist the Board in
conducting the business of the District.
WARRANT REPORT:
Director Reade made a motion, seconded by Director Reade,
authorizing the President and Secretary to sign Report No.
92 -11, instructing the Treasurer of the District to draw a
warrant from the Costa Mesa Sanitary District General Fund in
the amount of $372,837.37. Motion carried 3 -0.
ORAL COMMUNICATIONS:
Director Reade requested staff to secure 'information from the
City of Temecula on its Toxic Waste Program.
Costa Mesa Sanitary District Minutes - -May 14, 1992 - -Page 8
Director Sherrick commented that the Orange County Sanitation
District October meeting would be held on the 14th, a week
later than the District meeting.
ADJOURNMENT:
President Pro Tem Ferryman adjourned the meeting at 9:25 p.m.
VICE PRESIDENT ASSISTANT SECRETARY
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