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Minutes - Board - 1994-06-09 (2)COSTA MESA SANITARY DISTRICT Minutes of Board of Directors Meeting held June 9, 1994 Call to Order: The Board of Directors of the Costa Mesa Sanitary District met in regular session on June 9, 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 Perry 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: Robin Hamers, Manager/Engineer; Roy June, Attorney; Susan Temple, Treasurer; Florine Reichle, Assistant Manager /Clerk of the District; Dawn Guastella, Permit Specialist; Reba Coulter, Accountant. Others Present: Ray Rangel, Mark Rangel, Raul Rangel from Costa Mesa • Disposal; Ed Caliri, Santa Ana GWR; Deana Lopez, Great Western Reclamation. MINUTES OF MAY 12,1994: The minutes of the regular meeting held May 12, 1994, were approved unanimously as presented. MINUTES OF MAY 25,1994: The minutes of the special meeting held May 25, 1994, were approved unanimously as presented. STUDY SESSION REPORT - JUNE 6,1994: Mr. Hamers reported that the Board met on June 6,1994. Reported that the 1994 -95 Budget was the topic of discussion. Directors Wahner, Ferryman, and Reade were present at the meeting; and Directors Perry and Scheafer were absent. WRITTEN COMMUNICATIONS: Mr. Hamers reported the ISDOC quarterly membership meeting, which will be held on Thursday, June 30, 1994, at 6:30 p.m. at the Countryside Inn. A report on LAFCO activities and financing through CSDA will be the topics discussed. Board and Staff are welcome to the meeting, which will include dinner at $25.00 per person. COSTA MESA SANITARY DISTRICT Minutes - Board of Directors Meeting held June 9, 1994 Page 2 • Mr. Hamers presented a copy of a letter addressed to President Wahner from Tom Dawes, of the Orange County Sanitary District, thanking the Board for the resolution on behalf of his service. Mr. Hamers presented a picture of Director Perry and his championship golf team from the Daily Pilot newspaper. Mr. Hamers presented a letter reminding that the campaign disclosure forms need to be filed by July 31, 1994. President Wahner welcomed the guests Ray, Mark, and Raul Rangel from Costa Mesa Disposal; and Ed Caliri and Deana Lopez from Santa Ana GWR to the meeting. Mr. June reported that the present date represented the birthdate of Director Reade. Board and Staff expressed their best wishes and happiness to Director Reade. MANAGER'S REPORTS: OCCUPANCY REPORT: Mr. Hamers reported no increase or decrease in the occupancy report collection as of • June 1, 1994; therefore, the total for June is 22,285 units. Staff recommended the Board direct staff to prepare a warrant to Costa Mesa Disposal on July 1, 1994, for payment of June 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 Director Ferryman, seconded by Director Reade. Motion carried 5 -0. Motion to prepare a warrant in the amount of $153,142.52 to Costa Mesa Disposal on July 1, 1994, so made by Director Reade, seconded by Director Scheafer. Motion carried 5 -0. SOURCE REDUCTION AND RECYCLING ELEMENT CA - INTEGRATED WASTE MANAGEMENT: STATUS OF CITY'S WASTE PROGRAM: Mr. Hamers reported that the City is formulating an article relating to scavenging through trash as discussed at the last regular meeting. Mr. Hamers and Ms. Reichle have seen an advanced copy of the article and will present it to the Board if it is published as scheduled in the next quarterly newsletter. SRRE EDUCATIONAL PROGRAM: Mr. Hamers presented a copy of the most recently published quarterly newsletter dated Summer 1994. The cartoons Ms. Reichle had submitted were published with a caption • of the District's name and phone number. C • COSTA MESA SANITARY DISTRICT Minutes - Board of Directors Meeting held June 9, 1994 Page 3 Mr. Hamers reported and presented examples of the bumper stickers that Ms. Reichle had been working on for the District. Stated that wording, size, and style were still under consideration. Mr. Hamers reported that every school in Costa Mesa had been contacted to inquire about newspaper drives. The results showed that no school within Costa Mesa participates, or plans to participate, in this activity. He reported that the Orange County College recycling center is in the process of recording the sources of their waste. When the information is available, due credit will be added to the recycling figures of the various single- family, commercial, and industrial sectors. WASTE DIVERSION REPORT - MAY 1994: Mr. Hamers reported 25.25 percent waste diversion for the month of May 1994. Total Tonnage: 2745.47 Tonnage Recycled: 693.31 The report was approved as presented. LOCAL AGENCY FORMATION COMMISSION REPORT: INFORMATION: Mr. Hamers discussed the grand jury report President Wahner had presented at the study session. The report contained information concerning consolidation of wholesale and retail water agencies in Orange County. Mr. Hamers stated that he had reviewed the report in its entirety and offered his comments. The report contains the perspective information resulting from an analysis of whether the consolidation could be successful. The grand jury was responsible for a minimal portion of the report, and the majority had been formulated by Ernst and Young. Mr. Hamers read portions of the report containing the comments made by the grand jury. The comments reflected opinions endorsing consolidation. Mr. Hamers discussed potential problems caused by consolidation which the grand jury did not address. CREATIVE MANAGEMENT SOLUTIONS - FINANCIAL STUDY - PHASE II: PROGRESS REPORT: Mr. Hamers stated that the financial study is still in progress and expects to present it at the next regular meeting. • If COSTA MESA SANITARY DISTRICT Page 4 Minutes - Board of Directors Meeting held June 9, 1994 • TREASURER'S REPORT: FINANCIAL REPORT: Ms. Temple presented the report dated May 31, 1994. TREASURER'S REPORT FOR THE MONIES ON DEPOSIT: Ms. Temple presented the separate reports for March and April 1994. She reported that funds with the Orange County Pool were earning 7.5 percent. The volatility of the investment with the Orange County Pool was questioned. Ms. Temple assured the conservativeness and personal confidence with the investment. She reported that the investment earnings have already surpassed the projected amount. A motion to accept and file the report as presented so made by Director Perry, seconded by Director Reade. Motion carried unanimously. ANNUAL BUDGET 1994 -1995: Ms. Temple referred to the revised proposed budget, which includes both the solid and • liquid waste appropriations for the 1994 -1995 fiscal year. The revised version contained minor adjustments. The proposed budget offers $5.3 million for the 1994 -1995 fiscal year, a 15.4 percent /$335,000 reduction in comparison to the previous year. The majority of this reduction was the previous year's policy to provide a 20 percent operating reserve. The present investment earnings and assessments have made appropriations for this purpose unnecessary. Ms. Temple noted the appropriations as presented in the report: Solid Waste Appropriations 1994 -95 $3,359,553 Liquid Waste Appropriations 1994 -95 $1,894,945 She reported that the adjustments of the appropriations within the trash hauler's agreement discussed at the June 6, 1994, study session had been made; and, the consolidation of the large -item pick up within the line item for the trash hauler. Ms. Temple also reported the appropriation for the election is $18,000. A motion to adopt the annual budget 1994 -95 report as presented for the total amount of $5,254,498 so made by Director Ferryman, seconded by Director Reade. Motion carried 5 -0. It was noted that the budget can be amended in August 1994, after the trash and sewer rolls are reconciled. • COSTA MESA SANITARY DISTRICT Minutes - Board of Directors Meeting held June 9, 1994 ENGINEER'S REPORT: PROJECT STATUS REPORT: Mr. Hamers stated that there was nothing to report. DEVELOPMENT UPDATE: Mr. Hamers stated that there was nothing to report. PROJECT No. 130 - RECONSTRUCTION OF ELDEN FORCE MAIN: Page 5 Mr. Hamers reported that construction was completed on Project No. 130. He recommended the project be accepted as completed. APPROVE CHANGE ORDERS 2 & 3: Change order 2 reported that during excavation for installation of the new force • main, the old line was exposed and found to have cracks and deterioration of the pipe surface. Contractor was directed to delay work in order to purchase two clamps to be placed on the old line to stabilize the pipe preventing possible rupture. This showed a net increase in the contract of $3,205.11. Change order 3 reported that the existing force main ruptured on April 29, 1994, during the construction of the new force main. The rupture was 5 feet away from the construction area and the pipe that ruptured had not been exposed, therefore, it was determined that the rupture was not related to the new construction. Contractor mobilized his forces, including obtaining the services of pumper trucks, and repaired the break. This showed a net increase in the contract of $7,975.85. Motion to approve change orders 2 & 3 so made by Director Reade, seconded by Director Scheafer. Motion carried 5 -0. ACCEPT IMPROVEMENTS, FILE NOTICE OF COMPLETION: A motion was made to accept the improvements and file a notice of completion by Director Ferryman, seconded by Director Perry. Motion carried 5 -0. AUTHORIZE PAYMENT OF RETENTION AND EXONERATE BONDS: A motion to authorize payment of 5% retention 35 days after Notice of Completion is recorded so made by Director Scheafer, seconded by Director Ferryman, and carried 5 -0. COSTA MESA SANITARY DISTRICT Minutes - Board of Directors Meeting held June 9, 1994 Page 6 • Motion to exonerate Labor and Material Bond and Faithful Performance Bond after Notice of Completion is recorded; exonerate 10% Guarantee Bond one year after Notice of Completion is recorded so made by Director Scheafer, seconded by Director Ferryman, and carried 5 -0. Guarantee Bond is effective for one year from the date the Notice of Completion is recorded. ATTORNEY'S REPORT: POLICIES UPDATE: Mr. June reported and presented the following policy updates for Board approval. RESOLUTION NO. 94 -550 PRIVATE SEWER WORKS ON PRIVATE PROPERTY: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING PROCEDURES AND STANDARDS FOR MAJOR PRIVATE SEWER WORKS OF IMPROVEMENT ON PRIVATE PROPERTY AND STATING REASONS THEREFOR. Motion to adopt Resolution No. 94 -550 so made by Director Reade, seconded by Director • Scheafer. Motion carried 5 -0. RESOLUTION NO. 94 -551 ACCEPTANCE OF RIGHT -OF -WAY EASEMENTS: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING STANDARDS FOR THE ACCEPTANCE OF RIGHT -OF -WAY EASEMENTS OFFERED TO THE DISTRICT FOR UNDERGROUND SEWER INSTALLATIONS AND STATING REASONS THEREFOR. Motion to adopt Resolution No. 94 -551 so made by Director Ferryman, seconded by Director Perry. Motion carried 5 -0. RESOLUTION NO. 94 -552 REIMBURSEMENT TO DEVELOPERS FOR SEWER WORK: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT RELATING TO CONSTRUCTION OF SEWER LINES IN EXCESS OF SERVICE NEEDED FOR A PARCEL; PROVIDING FOR REIMBURSEMENT TO DEVELOPER FOR PROPORTIONATE SHARE OF SEWER LINES BENEFITING OTHER PARCELS AND STATING REASONS THEREFOR. • I- • COSTA MESA SANITARY DISTRICT Minutes - Board of Directors Meeting held June 9, 1994 Page 7 Motion to adopt Resolution No. 94 -552 so made by Director Reade, seconded by Director Scheafer. Motion carried 5 -0. RESOLUTION NO. 94 -553 - ANNEXATION No. 247 MAKING APPLICATION: A RESOLUTION OF APPLICATION BY THE COSTA MESA SANITARY DISTRICT REQUESTING THE LOCAL AGENCY FORMATION COMMISSION TO TAKE PROCEEDINGS FOR THE ANNEXATION OF TERRITORY, BEING ANNEXATION NO. 247. Mr. June presented the resolution with a map showing the location of the proposed annexation of Engineer's No. 247, a 5.32 acre parcel located at 1100 Bristol Street, Costa Mesa. The purpose of the proposed annexation is to provide liquid waste disposal and trash collection for users within the territory to be annexed. Motion to adopt Resolution No. 94 -553 so made by Director Ferryman, seconded by Director Reade. Motion carried 5 -0. RESOLUTION NO. 94 -554 - ZERO TAX EXCHANGE ON ANNEXATION NO. 247: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA, CONSENTING TO ZERO TAX EXCHANGE ON CERTAIN ANNEXATIONS TO THE DISTRICT; ESTABLISHING CONDITIONS OF WAIVER AND STATING REASONS THEREFOR. Motion to adopt Resolution No. 94 -554 so made by Director Scheafer, seconded by Director Ferryman. Motion carried 5 -0. OLD BUSINESS: STATUS REPORT -- PENDING ITEMS: Mr. Hamers presented the report. LARGE ITEM PICKUP -- AGREEMENT: Mr. Hamers presented the proposed 1994 Large Item Pickup agreement with Costa Mesa Disposal. The cost of the Large Item Pickup program this year is $34,111, with a $12,000 approximation for tipping fees. COSTA MESA SANITARY DISTRICT Page 8 Minutes - Board of Directors Meeting held June 9, 1994 • Mr. Hamers noted that the proposed new trash collection agreement with Costa Mesa Disposal to be discussed under new business will consolidate the basic service and Large Item Refuse Pickup Program into one contract. The present year would be the last year these items would be under separate agreements. Motion to approve the Large Item Pickup agreement so made by Director Reade, seconded by Director Perry. Motion carried 5 -0. NEW BUSINESS: TRASH COLLECTION AGREEMENT - COSTA MESA DISPOSAL Mr. Flamers presented the proposed trash collection agreement with Costa Mesa Disposal, which would supersede all prior agreements. Staff had reviewed the contract and commented that all necessary items to comply with the AB 939 standards have been included in the agreement such as, the annual Christmas tree and telephone directory program, and the large item pickup program. The presented agreement, with attached Exhibit "A ", shows the total rate payable to Costa Mesa Disposal for both basic service and the Large Item Refuse Pickup Program. Effective July 1, 1994, both rates will be adjusted to reflect the Consumer Price Index (Los Angeles/ Riverside Area Index) increase from May 1993 through May 1994 to develop the per occupancy charge to be paid by the District to Costa Mesa Disposal for the 1994 -95 fiscal year. 1993 -94 Basic Rate - through June 30, 1994 $ 6.8720 1993 -94 Rate for Large Item Pickup 0.1276 6.9996 Staff offered to answer any questions or concerns of the Board, Staff, or guests at the meeting. Mr. Flamers reported that the contractor, Mr. Raul Rangel, of Costa Mesa Disposal, was provided with a copy of the proposed agreement and was in agreement with the conditions of the contract. A motion to approve the agreement as presented, effective July 1, 1994, so made by Director Scheafer, seconded by Director Ferryman. Motion carried 5 -0. • • COSTA MESA SANITARY DISTRICT Page 9 Minutes - Board of Directors Meeting held June 9, 1994 SDRMA RENEWAL CONTRIBUTION: Mr. Hamers presented the annual contribution due to SDRMA. He reported last year's rate of $36,485 had decreased to $5,229. The renewal contribution for the Special District Risk Management Authority covers the program year from August 1, 1994 through July 31, 1995. Upon review of the credit incentive program, it was requested that Mr. Hector Castro, of the Orange County Register, be contacted informing him of the programs and efforts put towards reducing the rates of the District's insurance. Mr. Hamers explained that the insurance rates went down due to the unknown conditions provided within the contracts between special districts and other entities. SDRMA had decided to charge a minimal fee to all the districts until all contracts between special districts and other entities have been reviewed by SDRMA staff. It was noted that the SDRMA is familiar with all the contracts of the CMSD and Staff anticipated no significant increase in the contribution rate in the future. A motion to approve the SDRMA contribution of $5,229 so made by Director Ferryman, seconded by Director Reade. Motion carried 5 -0. WARRANT REPORT: Motion was made by Director Reade, seconded by Director Perry, authorizing the President and Secretary to sign Warrant Report No 94 -12 instructing the Finance Director to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $356,119.39. Motion carried 5 -0. ORAL COMMUNICATIONS: Director Ferryman stated that on behalf of the Board and Staff, he would like to thank Costa Mesa Disposal for their assistance at the fish fry and sponsorship of the parade. Director Reade informed Board and Staff that ISDOC is having their quarterly meeting on June 30, 1994, and all Board members are welcome to attend. A speech will be presented and ISDOC officers will be elected at the meeting. President Wahner congratulated the Rangels, of Costa Mesa Disposal, for their exemplary service to the community. • COSTA MESA SANITARY DISTRICT Minutes - Board of Directors Meeting held June 9, 1994 ADJOURNMENT: At 7:10 p.m. President Wahner adjourned the meeting. President Secretary Page 10 • •