Minutes - Board - 1995-07-13a
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COSTA MESA SANITARY DISTRICT
Minutes of Board of Directors Regular Meeting held July 13, 1995
• Call to Order: The Board of Directors of the Costa Mesa Sanitary District
met in regular session.on July 13, 1995, 12:00 p.m., at the
Civic Center, 77 Fair Drive, Costa Mesa.
Director Ferryman called the meeting to order at 12:00 p.m.
Director Perry led the Pledge of Allegiance.
Director Reade gave the Invocation.
Roll Call: Directors Present: James Ferryman, Arthur Perry, Nate Reade, Arlene Schafer,
Dan Worthington.
Staff Present: Robin Hamers, Manager/Engineer; Alan Burns, General
Counsel; Florine Reichle, Assistant Manager /Clerk of the
District; Dawn Guastella, Permit Specialist; Susan Temple,
Treasurer.
• Others Present: Jane A. Lee, Business Owner, 2466 Santa Ana, Costa Mesa
David E. Fahrion, CR &R, P.O. Box 125, Stanton, 90680
Barry Newton, CMS, 8205 East Somerset, Anaheim, 92808
® MINUTE APPROVAL
MINUTES OF REGULAR MEETING — JUNE 8,1995
Director Schafer moved acceptance of the minutes of the regular meeting, June 8, 1995.
Director Perry seconded. No discussion was held. Motion to approve the minutes as
written approved unanimously.
STUDY SESSION REPORT — JUNE 1, 1995
A study session was held Thursday, June 1, 1995, attended by President Ferryman and
Directors Perry, Reade, Schafer and Worthington to discuss the 1995 -96 budget.
WRITTEN COMMUNICATIONS
Mr. Hamers reported receipt of two papers written by Mr. Robert Hawkins, author of
Self — Governance by District: Myth and Reality. Mr. Hawkins is currently updating this
book and has advanced two papers to the Board for informational purposes. Ms. Reichle
will make the papers available for perusal by the Board.
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held July 13, 1995 Page 2
PUBLIC COMMENTS •
There were no public comments made.
REPORTS
MANAGER'S REPORT
OCCUPANCY REPORT
Mr. Hamers reported a decrease of 21 units in the occupancy report for solid waste
collection as of July 1, 1995. Therefore, the total for July is 22,068. Staff recommends
the acceptance of the count. Director Perry motions to accept the count as presented.
Director Reade seconded. Motion to accept the occupancy report approved unanimously.
Mr. Hamers recommended that the Board direct staff to prepare a warrant for $155,804.49
to Costa Mesa Disposal on August 1, 1995, for payment for July trash collection based
on the July count of 22,068. Motion made by Director Perry, seconded by Director
Reade. Motion to prepare the warrant approved unanimously. •
REFUND
MANOUCHEHR MALEK
Mr. Hamers reported a refund request from Mr. Manouchehr Malek, dated
June 5, 1995, for the amount of $2,691.52, covering the 1994 -95 fiscal year for
property located at 1940 Maple Ave., a 16 —unit parcel, Parcel Number
422 - 103 -40. Mr. Malek was unaware of the exemption and was using private
trash service provided by South Coast Refuse. Mr. Hamers further reported that
Mr. Malek was charged erroneously for 18 units instead of 16 units. Mr. Hamers
recommended the issuance of a refund, in accordance with the Board's policy to
refund for the current fiscal year, of $2,656.08 for trash and a permanent
exemption was recommended. Additionally, a refund of $35.44 for sewer charges
on the two units charged in error was recommended for a total refund of
$2,691.52. Director Reade moved to approve the refund of $2,691.52. Director
Perry seconded. Motion carried 5 -0.
JANE LEE
Mr. Hamers reported a refund request from Ms. Jane Lee, dated May 30, 1995,
for the amount of $3,400.00, encompassing fiscal years 1991 -92 to 1994 -95, for •
property located at 2466 Santa Ana, a 6 —unit parcel, Parcel Number 439 - 131 -17.
Ms. Lee was unaware of the exemption and was using private trash services
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COSTA MESA SANITARY DISTRICT
Minutes - Board of Directors Meeting held July 13, 1995 Page 3
provided by Western Waste. Ms. Lee is not a resident of Costa Mesa,
• consequently no information regarding an exemption was obtained in the mail.
The property is located in the Santa Ana Heights Water District which does not
receive the various notices regarding the exemption. Ms. Lee has been in contact
several times with the County Assessor's office, commencing in 1992,
questioning the charge for trash service on her tax bill and was not directed to the
Costa Mesa Sanitary District for an exemption. In light of the extenuating special
circumstances, Director Reade motioned to refund a total of $2,606.16 for the
fiscal years 1992 -93, 1993 -94 and 1994 -95.. Director Schafer seconded. Motion
carried 5 -0.
Director Schafer recommended the County Assessor's office be notified and
requested to direct taxpayers questioning trash service charges to the Costa Mesa
Sanitary District.
OLD BUSINESS
CREATIVE MANAGEMENT SOLUTIONS - FINANCIAL STUDY PHASE II
FINAL REPORT - CITY/DISTRICT CONTRACT
• Mr. Hamers introduced Mr. Barry Newton, president of Creative Management Solutions,
who presented a three -page letter of agreement from Mr. Newton providing an outline of
the work tasks encompassed in conducting an implementation analysis for the Costa Mesa
Sanitary District's assumption of field operations and administrative services which are
currently contracted with the City of Costa Mesa.
Mr. Newton will initiate the work immediately and complete the study between 60 to 90
days for a sum not to exceed $6,750.00 to be billed in 3 segments following the
completion of Tasks 4, 8 and 10 as listed on Mr. Newton's proposal.
Mr. Burns was directed by the Board to provide a consultant agreement for Mr. Newton
to further define the conditions of the contract.
Director Reade motioned to approve the engagement of Creative Management Solutions
for the sum of $75 an hour, not to exceed a total of $6,750.00 contingent upon the
consultant agreement provided by Mr. Alan Burns. Director Perry seconded. Motion
carried 5 -0.
CR TRANSFER - DISTRICT'S RECYCLER
New Recycling Contract
Mr. Hamers introduced Mr. David Fahrion, corporate vice president of CR &R, the main
• entity of CR Transfer.
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held July 13, 1995 Page 4
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Mr Hamers reviewed with the Board Exhibit A of the proposed contract and discussed
the requested modifications reflected in part: •
II General
1. CR Transfer (CRT) to participate in AB939 education programs.
Participation to be five tours per year, one seminar per year, and one
brochure mailed to each resident every two years with the Costa Mesa
Sanitary District providing the mailing labels for the brochures.
2. CRT to guarantee the District's rate is equal to or lower than any other
agency using CRT for equivalent service.
6. CRT to participate in anti - scavenging enforcement, as requested, up to a
cost of $5,000 per year; said $5,000 participation to be increased by the
CPI every year for the first six years after which the CPI increase will be
negotiated.
Mr. Hamers advised the Board that General item 7 regarding CRT accepting paint,
batteries and used motor oil for recycling will be deleted from the proposed
contract terms. CRT does not have the capability to recycle those items. •
III Legal
3. CRT to indemnify and defend District from any and all lawsuits arisin •
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out of award of the contract to CRT and arising out of the performance of
the contract by CRT, excepting only gross negligence or willful
misconduct on the part of the District.
CRT proposed the words "gross" and "willful" be removed from this section. This
item is under consideration by legal counsel for both parties.
4. CRT to defend and indemnify District from any and all actions naming the
District or its officers or employees, which alleges that the District is
responsible for any clean -up costs of places where any collected waste is
ultimately disposed.
Counsel for both parties will further negotiate this item.
7. CRT to guarantee that it will meet AB939 tonnage diversion requirements
and prepare documentation, at its cost, showing such efforts as required by
the State.
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` COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held July 13, 1995 Page 5
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• Director Schafer initiated a conversation regarding CRT's documenting the waste
stream before and after the hiring of a code enforcement officer and the possibility
of CRT requesting the court to impose stronger fines against scavengers.
Mr. Hamers opened discussion for contract term length. Options discussed included
contracting for a 6 —year rolling term or alternately, a 7 —year initial term that becomes a
5 —year rolling term after the first 2 years.
Mr. Hamers additionally discussed item 5 under Financial:
5. Future yearly CPI increases to have a maximum increase of 3% for the
first six years and are applied July 1 of each year. After the first six years
the CPI increases will be negotiated.
Mr. Fahrion related to the Board that both he and Mr. Silva were in agreement with that
provision.
Director Schafer requested to receive audited financial statements from CR Transfer
Director Reade motioned to accept this proposed contract in concept emphasizing item
number 8 under Financial, a 6 —year rolling term, provided that a satisfactory resolution
is reached concerning the legal questions, review of the audited financial statement and
implementing the minor changes discussed at this board meeting. Mr. Burns, General
• Counsel, will prepare the contract and bring back a first draft to the Board for review no
later than 60 days. Director Perry seconded. No further discussion was held. Motion
to approve in concept was approved unanimously.
SOURCE REDUCTION AND RECYCLING ELEMENT — AB939
STATUS OF CITY'S WASTE PROGRAM
Anti— Scavenging Solutions /Enforcement
Mr. Hamers presented to the Board a letter from Mr. Alan- Burns, General
Counsel, dated June '16, 1995, reflecting Mr. Burns' conversation with Jerry
Scheer, Assistant City Attorney, who related that Mr. Tom Kathe, City Attorney,
reported that few or no citations have been issued for scavenging to his
knowledge.
Mr. Hamers presented to the Board an interoffice memorandum to Mr. Hamers
from Mr. William Morris, Director of Public Services, dated June 27, 1995,
regarding monthly police department statistics for scavenging enforcement. A
• total of 8 citations were issued out of 51 calls for service.
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COSTA MESA SANITARY DISTRICT j
Minutes — Board of Directors Meeting held July 13, 1995 Page 6
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Mr. Hamers presented to the Board an interoffice memorandum to Mr. Tom •
Kathe, City Attorney, from Mr. David Snowden, Chief of Police, dated June 29,
1995, regarding the parameters of scavenger enforcement. Chief Snowden
inquired whether a non —City employee can be empowered to issue citations for
scavenging violations and additionally requested information regarding the
prosecution of these municipal code violation cases.
Mr. Hamers further presented to the Board an interoffice memorandum from
Mr. Tom Kathe, City Attorney, to Mr. David Snowden, Chief of Police, dated
June 30, 1995, in response to Chief Snowden's inquiries. Mr. Kathe advised that
a non —City employee does not have authority to issue criminal citations on behalf
of the City, but a citizen's arrest can be made with the arrestee being referred to
the Costa Mesa Police Department. Mr. Kathe further informed Chief Snowden
that the new Deputy City Attorney could be trained to handle code violations or
a private legal counsel, funded from fees collected from solid waste haulers, may
be considered.
The Board directed Mr. Alan Burns, General Counsel, to contact Mr. Tom Kathe,
City Attorney, regarding the prosecution of scavengers. Mr. Burns will then
advise the Board with his recommendations.
Mr. Hamers related to the Board a meeting held on June 28, 1995 attended by
t- A Directors IdVerf tington and Reade who accompanied staff to meet with Mr. Allan
Roeder, City Manager; Mr. William Morris, Director of Public Services,
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Mr. David Snowden, Chief of Police, and Mr. Rick Johnson from the Costa Mesa
Police Department to discuss the options for scavenging violation enforcement.
The police department will examine the cost of hiring a separate person and will
review the options of engaging a contract code enforcement officer or a reserve
officer. If a contract code enforcement officer is employed, training would be
provided by the City at no cost.
Mr. Hamers informed the Board of a grant application to the State of California
for monies to enforce anti — scavenging. The grant of $16,000 was requested to
cover a six —month period, providing for a four —hour day, five —day week, senior
reserve officer at a cost of $30 per hour. Mr. Hamers advised the Board that a
copy of the application would be made available for their review.
Mr. Hamers recounted a conversation with Mr. Jim Sankey, Solid Waste Manager
of the City of Huntington Beach, regarding the use of the adhesive anti —
scavenging stickers. Mr. Sankey expressed concern regarding copyright
violations should the City of Huntington Beach duplicate the sticker for use in its
city. Mr. Hamers requested Mr. Burns' input on possible copyright violations.
The Board reviewed the matter and determined that they would assert no •
proprietary rights regarding the symbol used on the anti — scavenging stickers and
that the City of Huntington Beach was free to produce copies of the symbol. •
COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held July 13, 1995 Page 7
0. Household Hazardous Waste Grant Program
Mr. Hamers further reported upon the application for the Household Hazardous
Waste Grant. Americlean is preparing the grant at no cost to the District and will
make that available to the Board upon its completion. .
SRRE EDUCATIONAL PROGRAM
Newsletter
Mr. Hamers reported that the completed newsletters will be delivered to the post
office to be mailed Friday morning, July 14, 1995.
RECYCLING REPORTS
Waste Diversion Report for June 1995
Mr. Hamers reported 27.59% waste diversion for the month of June 1995.
Total Tonnage: 2,884.40 Tonnage Recycled: 795.78
• The Waste Diversion Report was received and filed.
Approve Contract Payment
Mr. Hamers recommended to the Board the approval of contract payment to CR
Transfer. Director Perry moved for approval of payment to CR Transfer in the
amount of $103,780.72. Director Schafer seconded. No further discussion was
held. Motion carried 5 -0.
LOCAL MEETINGS
Local Agency Formation Commission
Mr. Hamers reported on the Santa Margarita /Cal American meeting. LAFCO
denied the application from Cal American.
Independent Special Districts /Orange County (ISDOC)
Executive Board Meeting
• Special Meeting — 6 -29 -95
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COSTA MESA SANITARY DISTRICT r
Minutes — Board of Directors Meeting held July 13, 1995 Page 8
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Mr. Hamers reported on the special meeting on June 29, 1995 to discuss bylaws,
Mr. Hamers made available handouts from the meeting including one from the •
WACO chairman regarding proposed LAFCO requirements for reviewing
consolidations and reorganizations. Mr. Hamers additionally made handouts
available from the legislative committees of ISDOC, one reviewing ISDOC's
position on pending legislation and one reviewing CSDA's position on pending
legislation.
Director Reade advised the Board of an upcoming meeting, Monday, July 17,
1995 with the bylaw committee and the executive committee of ISDOC.
Director Schafer provided the minutes of the special meeting of June 29, 1995 for
the Board's review.
Orange County Sanitation Districts
Regular Meeting
President Ferryman reported that Mr. John Cox from Newport Beach was the sole
nominee for joint Board Chairman. The vice chairman will be nominated at the •
next meeting.
SAFETY COMMITTEE MINUTES - 6 -27 -95
Mr. Hamers presented the minutes from the June 27, 1995 meeting.
Director Schafer advised of an error in the minutes under "Distribution to CMSD
Board of Directors." The correct date should be "July 1995 regular meeting."
TREASURER'S REPORTS
Financial Report
Ms. Temple presented the financial statements as of June 30, 1995. Motion to accept the
report as presented made by Director Reade, seconded by Director Perry. No further
discussion was held. Motion to accept the financial report as presented approved 5 -0.
Treasurer's Report of Monies on Deposit
Ms. Temple presented the report showing the District's portfolio for the month of
June 1995. Director Perry motioned to approve the Treasurer's report. Director Schafer
seconded. Motion to accept the Treasurer's report approved unanimously.
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting, eld July 13, 1995 Page 9
• Orange County Bankruptcy
Update
Ms: Temple informed the Board of the receipt of $102,072.62 in recovery notes and
$3,308.29 in interest as provided for in the Comprehensive Settlement Agreement.
Property Tax Issue — Letter to County
Mr. Hamers related to the Board that at the special meeting of ISDOC it was requested
that all special districts communicate to the County to oppose the County's consideration
of taking additional property tax apportionment and reserves. The Board directed staff
to prepare a letter for President Ferryman's signature to the County reflecting the Board's
opposition.
Investment Oversight Committee Meeting July 13, 1995.
Mr. Hamers reported on the Investment Oversight Committee Meeting attended by
Directors Worthington and Perry. Mr. Hamers commented on the informative
• presentation. The next meeting of the Investment Oversight Committee will be held in
October.
Resolution No. 95 -575
1995 Statement of Investment Policy
Ms. Temple presented Resolution No. 95 -575, A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, AUTHORIZING THE
TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA
SANITARY DISTRICT IN ELIGIBLE SECURITIES AND TO SELL OR EXCHANGE
SECURITIES PURCHASED, AND AUTHORIZING SAID TREASURER TO DEPOSIT
SUCH SECURITIES FOR SAFEKEEPING IN DESIGNATED BANKS AND SAVINGS
AND LOANS, AND AUTHORIZING THE SAID TREASURER TO DELEGATE TO
THE ASSISTANT DIRECTOR OF FINANCE THE CARRYING OUT OF ANY SUCH
TASKS. Director Schafer moved to adopt Resolution No. 95 -575 as presented. Director
Perry seconded. Motion to adopt Resolution No. 95 -575 passed unanimously.
Costa Mesa Disposal — Annual CPI Increase
Ms. Temple presented to the Board the annual CPI increase for Costa Mesa Disposal.
The May CPI has been calculated to be 2.444% which would increase the per occupancy
rate by 17 and 1/a cents bringing the total trash occupancy rate effective July 1, 1995 to
be $7.2327. Director Perry motioned to approve the CPI increase for Costa Mesa
Disposal. Director Reade seconded. Motion carried 5 -0.
COSTA MESA SANITARY DISTRICT '
Minutes — Board of Directors Meeting held July 13, 1995 Page 10
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ENGINEER'S REPORT
Project Status Report
The Project Status Report was received and filed.
Development Update
Mr. Hamers advised there was nothing to report.
Review of 1995 -96 Capital Improvement Projects - Boyle Engineering
Mr. Hamers reported the 1995 -96 Capital Improvement Project review by Boyle
Engineering will be on a forthcoming agenda.
ATTORNEY'S REPORTS
Annexation No. 249 •
Resolution No. 95 -225A
Final Acceptance
Mr. Burns P resented the Resolution 95 -225A, A RESOLUTION OF THE BOARD OF •
DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, COUNTY OF
ORANGE, CALIFORNIA, ORDERING TERRITORY DESIGNATED AS
ANNEXATION NO. 249 ANNEXED TO THE COSTA MESA SANITARY DISTRICT.
Director Reade motioned to adopt Resolution 95 -225A. Director Schafer seconded. The
motion to adopt Resolution 95 -225A was approved unanimously.
OLD BUSINESS (Revisited)
STATUS REPORT - PENDING ITEMS
Mr. Hamers declared there is nothing to report, there are no pending items.
1995 TELEPHONE BOOK RECYCLING PROGRAM
Mr. Hamers reported on the meeting of July 12, 1995, attended by Directors Ferryman
and Worthington. Also in attendance were representatives from Donnelley, Pac Bell
Directory and the State Integrated Waste Management Board. GTE representatives did
not attend. •
COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held July 13, 1995 Page 11
Director Worthington reported on a program in use by Donnelley whereby a certificate
for a free ice cream from Thrifty Drug Store is attached to the cover of the telephone
book, redeemable at Thrifty with return of the telephone book for recycling. Pac Bell has
an ongoing program with Von's Grocery who provides containers to recycle the telephone
books. Director Worthington suggested pursuing other possible establishments to join a
recycling program. President Ferryman related that Donnelley committed to contact
Thrifty and Pac Bell will contact Von's to ascertain their interest in participation of a
telephone book recycling program in Costa Mesa.
Mr. Hamers related that with the participation of surrounding areas there may be an
implementation of an 800 telephone number listed on every Pac Bell Directory telephone
book that would refer the caller to a specific location in their own area to recycle their
telephone book.
Mr. Hamers mentioned that Director Ferryman convinced the Pac Bell Directory
representative to continue reimbursing the District for advertising and administrative costs
associated with the annual program.
NEW BUSINESS
Special Districts Risk Management Authority
1995 -96 Renewal Contribution
rMr. Hamers presented to the Board the renewal contribution to the Special District Risk
Management Authority. (SDRMA), dated May 15, 1995 in the amount of $5,837. Director
Reade motioned to approve the renewal contribution. Director Perry seconded. Motion
passed 5 -0.
CA Special Districts Association
Bylaw Change
Mr. Hamers presented to the Board a letter from Mr. William Miller, President of the
California Special Districts Association (CSDA), received June 29, 1995. The letter
requested a vote on proposed bylaw changes. Director Schafer motioned to approve the
proposed bylaw changes. Director Perry seconded. Motion to approve the proposed
bylaw changes approved unanimously.
Annual Conference — September, 1995
Mr. Hamers advised the Board of the annual conference of the CSDA to occur in
September in Huntington Beach. Mr. Hamers recommended attendance and encouraged
using the opportunity to hear CSDA advocate Mr. Ralph Heim speak.
WARRANT REPORT
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held July 13, 1995 Page 12
Motion made by Director Perry, seconded by Director Schafer, authorizing the President
and Secretary to sign Report No. 96 -01 instructing the Finance Department to draw a
warrant from the Costa Mesa Sanitary District General Fund in the amount of
$452,605.51 with warrant number 753 to the City of Newport Beach in the amount of
$1,092.67 to be withheld pending signature of final agreement. Motion carried 5 -0.
ORAL COMMUNICATIONS
Director Schafer invited all Board members to attend the fair.
ADJOURNMENT
At 2:27 p.m. Director Ferryman adjourned the meeting.
Sec etary
President
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