Minutes - Board - 1994-02-10 (2)• COSTA MESA SANITARY DISTRICT
Minutes of Board of Directors Meeting held February 10, 1994
Call to Order: The Board of Directors of the Costa Mesa Sanitary District met in regular
session on February 10, 1994, 6:00 p.m., at the Civic Center, 77 Fair
Drive, Costa Mesa.
Director Wahner called the meeting to order at 6:00 p.m.
Director Ferryman led the Pledge of Allegiance.
Director Reade gave the Invocation.
Roll Call: Directors Present: James Wahner, Nate Reade, James Ferryman, Art Perry,
Mike Scheafer.
Staff Present: Rob Hamers /Manager /Engineer; Roy June, Attorney;
Florine Reichle, Assistant Manager /Clerk of the District;
Susan Temple, Finance /Treasurer; Dawn Guastella, Permit
Specialist.
Others Present: Mr. Roger Etherington, Property Owner; Bob Hanson,
Former District Director; Bill Semple, El Toro Water
District; Susan M. Connelly, Recording Secretary.
i MINUTES OF JANUARY 13,1994:
The minutes of January 13, 1994, were approved unanimously as presented.
President Wahner reported that February 1994 marks the 50th Anniversary of the District.
WRITTEN COMMUNICATIONS:
Mr. Hamers presented the a copy of a check from Pacific Bell Directory, dated January 28,
1994, in the amount of $1,229.57, received by and written to C.M.S.D. as reimbursement for
their co- sponsorship in the 5th Annual Telephone Book recycling program.
Mr. Hamers presented the handout concerning the training seminar in Newport Beach and a
handout of.a similar seminar being held by the C.S.D.A., items to be discussed later in the
meeting.
MANAGER'S REPORT:
OCCUPANCY REPORT:
Mr. Hamers reported a decrease of 19 units for solid waste collection as of February 1,
1994; therefore, the total for February is 22,326. Staff recommended the Board direct
staff to prepare a warrant to Costa Mesa Disposal on March 1, 1994, for payment for
February trash collection based on the occupancy report so long as contractor fulfills
obligations of agreement. Motion to accept occupancy report as given so made by
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Minutes - Board of Directors Meeting held February 10, 1994
Director Reade, seconded by Director Perry. Motion carried 5 -0. Motion to prepare a
warrant in the amount of $153,424.27 to Costa Mesa Disposal on March 1, 1994, so
made by Director Reade, seconded by Director Perry. Motion carried 5 -0.
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Wendell Maberry, 442 Broadway Street, Costa Mesa, CA 92627
Mr. Hamers presented a request for refund of overcharged trash and sewer assessment
fees on the property located at 408 Bernard Street, Assessor's Parcel No. 419 - 202 -13 for
the tax years 1992 -1993 through 1993 -1994. Owner is being billed for 4 units and
should only be billed for 2 units. Staff recommended refund of the requested 1992 -1993
through 1993 -1994 tax years in accordance with District policy in the amount of $644.48.
Motion so made by Director Ferryman, seconded by Director Reade. Motion carried 5-
0.
Wendy Ward, 840 Congress, Costa Mesa, CA 92626
Mr. Hamers presented a request for refund of inappropriately charged permit fees
allocated from the property owner at 840 Congress, Permit No. 002683. Owner was
repairing an existing sewer line and no work was in the right -of -way; therefore, not
requiring a permit. Staff recommended refund of the requested amount of $191.00.
Motion so made by Director Perry, seconded by Director Scheafer. Motion carried 5 -0.
President Wahner welcomed Mr. Roger Etherington, Property Owner, who had attended the
meeting to discuss the circumstances involving his refund request.
Roger and Barbara Etherington, 2700 Newport, No.222, Newport Beach, CA
92663
Mr. Hamers presented a request for refund of trash assessment fees on the property
located at 143 Melody Lane, Assessor's Parcel No. 426 - 181 -24 for the tax years 1991-
1992 through 1993 -1994. Owner is using a private trash service and was not aware of
exemption forms. Staff recommended partial refund of requested amount in accordance
with District policy to refund only the current tax year 1993 -1994 in the amount of
$577.64.
Mr. Hamers reported on his phone call conversation with Mrs. Etherington, informing her of
the many methods used by C.M.S.D. to notify property owners of the available exemption.
Reported that Mr. and Mrs. Etherington had purchased the property in 1991, prior to some
notification efforts; however, Mr. and Mrs. Etherington do not possess a City business license
for their complex ownership, therefore, they would not receive the slip included with that
licensure notifying the licensee of the available exemption.
Mr. Etherington expressed his dissatisfaction with this decision and commented that the District's
method of informing the public of this exemption was inadequate. The Board and Staff clarified
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Minutes - Board of Directors Meeting held February 10, 1994
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the many methods currently used in attempt to thoroughly notify the public, noting that efforts
exceed statutory requirements. It was also noted that the required City business license would
have adequately informed the property owners of the exemption.
It was noted that currently, after applying for and obtaining the tax exemption on a property,
the property gains that tax- exemption status permanently until ownership changes. Therefore,
it was questioned whether the former owner had applied for this tax exemption. This fact was
unknown. As a result, a motion to delay the outcome in order to research the situation until
the next regular meeting so made by Director Reade, seconded by Director Perry. Motion
carried unanimously.
SOURCE REDUCTION AND RECYCLING ELEMENT CA - INTEGRATED
WASTE MANAGEMENT:
STATUS OF CITY'S WASTE PROGRAM:
Mr. Hamers stated that the City compiled its first quarter report from all the trash
haulers. When last reported it remained to be slightly below the 25 percent diversion
across the entire city including the District which is slightly over 25 percent.
Mr. Hamers reported that he had requested information concerning existing educational
programs other than those conducted by C.M.S.D.
Mr. Hamers reported that the current conference room would soon be transferred to another
room .in order to accommodate door -width requirements for wheelchair entry in complying with
the Americans with Disabilities Act (ADA).
SRRE EDUCATIONAL PROGRAM:
Mr. Hamers presented a letter that he had prepared to Bill Morris; outlining the
accomplishments of the Costa Mesa Sanitary District in the last year. Stated that the
letter would be mailed and a copy would be submitted to each member of the Board and
Staff. It was agreed unanimously to also submit a copy to the City Council.
Director Ferryman reported that on April 13, 1994, the Chamber of Commerce is
conjunction with Costa Mesa High School is having a career'day, and he suggested that
C.M.S.D. participate. It was agreed that this was a positive action.
WASTE DIVERSION REPORT FOR JANUARY 1994:
Mr. Hamers reported 25.51 percent waste diversion for the ' month of January
Total Tonnage: 2,448.29 Tonnage Recycled: 624.53
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Minutes - Board of Directors Meeting held February 14, 1994
Staff recommended acceptance of the CR Transfer report. Motion to approve the report
as presented so made by Director Ferryman, seconded by Director Reade. Motion carried
unanimously.
LOCAL AGENCY FORMATION COMMISSION REPORT:
SPECIAL DISTRICT SEATING:
Mr. Hamers reported that Special Districts Selection Committee was holding a meeting
tonight at 7:00 p.m. in Council Chambers. Reported that selection of Special District
representatives had been delayed, anticipating the selection to be made in April. Stated
the night's meeting would regard the approval of the minor revisions contained in the
Special District's rules and regulations. It was noted that all Board members were
welcome to attend.
DISTRICT REORGANIZATION:
CONSULTANT PROPOSAL TO STUDY FINANCES -- PROGRESS REPORT:
Mr. Hamers reported that Mr. Barry Newton, the hired Consultant, had interviewed all •
persons who perform services for C.M.S.D. and is still in the progress of completing the
report.
MARCH STUDY SESSION DATE:
Mr. Hamers stated that he had met with Allan Roeder. Mr. Roeder had met with two
of the Council members, who expressed that the City did not prefer waiting until April.
They said that they would attend any meeting set up during the week of February 21,
1994. Mr. Hamers stated that two choices were adequate: 1) Show up at the scheduled
City Council Study Session on Monday, February 13, 1994, or 2) schedule a meeting the
week of February 21, 1994. Noting that Monday, February 21, 1994 was a holiday, it
was agreed to schedule a luncheon study session with the City Council, chaired by the
Costa Mesa Sanitary District, for Tuesday, February 22, 1994, at 12:00 Noon.
Mr. June suggested that although study reports will not be completed by the date of the
City Council meeting, that it would be appropriate to attend the meeting and inform the
City of the various studies in progress. Ms. Reichle suggested submitting a written
outline of their current studies to the City Council before the commencement of the
meeting.
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Minutes - Board of Directors Meeting held February 10, 1994
TREASURER'S REPORT:
FINANCIAL REPORT:
Ms. Temple presented the report dated January 31, 1994. A motion to approve the
report as presented so made by Director Reade, seconded by Director Scheafer. Motion
carried 5 -0.
TREASURER'S REPORT FOR THE MONIES ON DEPOSIT:
Ms. Temple reported that the majority of funds continue to be deposited with the Orange
County Treasurer's Pool earning 7.72 percent. Motion to accept and file the report dated
December 1993, so made by Director Ferryman, seconded by Director Perry. Motion
carried unanimously.
AUDITOR'S REPORT, 1992 -1993:
Ms. Temple presented the auditor's report, conducted by Conrad Associates, for the
fiscal year ending June 30, 1993. Stated that the operating income totaled $230,000,
• which was a result of 1) savings funds budgeted and not expended, 2) funds set aside
for the Elden pump station, where funds were appropriated in phases, and 3) a $75,000
savings from the money budgeted for the City Contract; an expense savings resulting
from money budgeted for positions that remained vacant the entire fiscal year. Motion
to accept the auditor's report so made by Director Reade, seconded by Director Perry.
Motion carried 5 -0.
ENGINEER'S REPORT:
PROJECT STATUS REPORT:
Mr. Hamers stated there was nothing to mention other than as shown in the report.
DEVELOPMENT UPDATE:
Mr. Hamers stated there was nothing to report.
REVIEW OF SEWER PLANS:
Mr. Hamers stated there was nothing to report.
PROJECT 126 - RECONSTRUCTION OF VARIOUS SEWER LINES:
APPROVE CHANGE ORDER No. 1:
Mr. Hamers presented the change requested by C.M.S.D. on Project 126, contracted
to Grgo & Gordon Grbavac Co., Inc.
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Minutes - Board of Directors Meeting held February 10, 1994
The anticipated amount of pipe replacement for each individual spot repair was based on
reviewing the TV video taken from inside the line. As in this case, occasionally the
video fails to reflect total damage as seen after the line is uncovered, and instances of
encountering unanticipated obstructions, which must be worked around, occur. The
amount of extra work on each location was negotiated to reflect the actual circumstances.
A detailed report was attached to the change order. Staff recommended approval of the
net increase contained in the change order of $13,400. Mr. Hamers also informed that
C.M.S.D. would be reimbursed by O.C.S.D. for a problem they had caused creating
an O.C.S.D. reimbursement of $9,500 Motion to approve the net increase contained
in Change Order No. 1 of the Project 126 contract so made by Director Reade, seconded
by Director Perry. Motion carried 5 -0.
ATTORNEY'S REPORT:
ORDINANCE NO. 23 - AMENDS ORDINANCE NO. 13
CHANGES TIME OF REGULAR BOARD MEETINGS:
Mr. June presented ORDINANCE NO. 23, an amendment of ORDINANCE NO. 13.
SECTION 1. The Board of Directors of the Costa Mesa Sanitary District finds and •
declares that the convenience of the public, the Board and Staff, can be better served by
an earlier meeting of the Board and the purposes for which the Costa Mesa Sanitary
District was created.
Accordingly, the following SECTION 2 of ORDINANCE NO. 13 was amended as
follows:
"SECTION 2. The regular meeting of the Costa Mesa Sanitary District Board of
Directors shall take place on the second Thursday of each month at the hour of 6:00 p.m.
at 77 Fair Drive, Costa Mesa, California."
A motion to approve and adopt Ordinance No. 23, amending Ordinances No. 13 so made
by Director Ferryman, seconded by Director Scheafer. Motion carried 5 -0.
DISTRICT OFFICE SPACE LEASE:
Mr. June stated that he had just received the revisions of the lease for review and
deferred the matter to be discussed at the next regular meeting.
BROWN ACT REVISIONS:
Mr. June presented a copy of the Brown Act revisions for the Board's review. Stated
that major changes would go into effect April 1, 1994. Stated he would update the Board
at a future study session.
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Minutes - Board of Directors Meeting held February 10, 1994
Director Scheafer abstained from any of the following discussions and actions due to a
professional/ client relationship with Riviera Adjusters, Inc., and as an agent for State Farm
Insurance.
CLAIM - CITY OF NEWPORT BEACH
Mr. Hamers presented the Board with a photocopy of a manhole located at Irvine Avenue
near 22nd Street. The street is owned by the City of Newport Street and the manhole
is owned by the Costa Mesa Sanitary District. The asphalt surrounding the manhole had
erupted creating an automobile driving hazard, and consequently causing damages to four
vehicles colliding with it on June 17, 1993. Reported that State Farm and Mercury
Insurance are stating separate claims as the insurance carriers for vehicle owners
suffering damages. The City of Newport Beach is stating a claim through Riveria
Adjusters, Inc., for reimbursement of funds they had paid -- in order to uncomplicate
matters -- to two of the claimants.
Mr. Hamers reported that previously they had declared to the City of Newport that it was
their liability due to the following: 1) C.M.S.D. has never adjusted the manhole 2) City
of Newport Beach inserted and owns the asphalt surrounding the manhole, which caused
the damages.
Mr. June reported that the so- called two claims that were submitted did not comply with
section 911 of the government code regarding appropriate form of claims.
Recommended to choose one of the following actions: 1) Accepting them as claims and
rejecting them based on the facts and comments presented by Mr. Hamers, or 2) not
accepting them as claims and notifying the City of Newport Beach and State Farm
Mutual Insurance of the rejection based upon the inappropriate form of the claims. The
Board agreed to acknowledge the submitted as claims and notify the City of Newport
Beach and State Farm Mutual Insurance of their rejection.
Motion to reject the claim submitted by the City of Newport Beach so made by Director
Reade, seconded by Director Ferryman. Motion carried 4 -0 with Director Scheafer
abstaining.
CLAIM - STATE FARM MUTUAL INSURANCE
Motion to reject the claim submitted by State Farm Mutual Insurance so made by
Director Reade, seconded by Director Perry. Motion carried 4 -0 with Director Scheafer
abstaining.
OLD BUSINESS:
STATUS OF PENDING ITEMS:
is Mr. Hamers presented the report.
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Minutes - Board of Directors Meeting held February 10, 1994
NEW AGREEMENT WITH COSTA MESA DISPOSAL -
PROGRESS REPORT:
Mr. June stated that the new agreement will not be prepared by February 22, 1994, for
the scheduled meeting, but his knowledge of the agreement would allow his commenting
in regard to its contents at the meeting.
NEW BUSINESS:
CA SPECIAL DISTRICTS MANAGEMENT INSTITUTE:
Mr. Hamers discussed the director training seminars being held. A comprehensive
Director training seminar held by CA Special Districts Management Institute on
February 25, 26, and 27, 1994 in Newport Beach for admission fee of $695. A similar
seminar held by C.S.D.A. on March 24 and 25, 1994, discussing practicalities of
running the district for managers and directors, to be held at the Disneyland Hotel for
an admission fee of $110. Interested directors are to contact staff for reservations.
WARRANT REPORT:
Motion was made by Director Ferryman, seconded by Director Perry, authorizing the
President and Secretary to sign Report No. 94 -08, instructing the Finance Director to
draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of
$461,367.87. Motion carried 5 -0.
ORAL COMMUNICATIONS:
The Board and Staff agreed to schedule a meeting to discuss the agenda format for the
scheduled February 22, 1994, meeting with the City Council . A luncheon study session
was scheduled for Tuesday, February 15, 1994, at 12:00 Noon.
The next regular Board meeting will be held on Thursday, March 10, 1994, at 6:00 p.m.
President Wahner noted the honor represented by the Orange County Sanitation Districts'
Directors' pins, which were received as representation of being selected as the number
one operating plant in the nation.
ADJOURNMENT:
At 6:50 p.m. Director Wahner adjourned the meeting.
President
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Secretary
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