Minutes - Board - 1995-08-10�W
COSTA MESA SANITARY DISTRICT
• Minutes of Board of Directors Regular Meeting held August 10, 1995
Call to Order: The Board of Directors of the Costa Mesa Sanitary District
met in regular session on August 10, 1995, 6:00 p.m., at the
Civic Center, 77 Fair Drive, Costa Mesa.
Director Ferryman called the meeting to order at 6 :00 p.m.
Director Schafer 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; Susan Temple, Treasurer.
• Others Present: None.
MINUTE APPROVAL
MINUTES OF REGULAR MEETING — JULY 13, 1995
Director Worthington brought the Board's attention to a correction required in the minutes
of July 13, 1995, on page 6, to reflect that Director Ferryman, not Director Worthington,
was in attendance at the June 28, 1995, meeting with Mr. Allan Roeder, City Manager;
Mr. William Morris, Director of Public Services; 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 amended minutes reflected in part:
Mr. Hamers related to the Board a meeting held on June 28, 1995, attended by
Directors Ferryman and Reade who accompanied staff to meet with Mr. Allan
Roeder, City Manager; Mr. William Morris, Director of Public Services;
Mr. David Snowden, Chief of Police, and Mr. Rick Johnson from the Costa Mesa
Police Department to discuss the options for scavenging violation enforcement.
Director Reade moved acceptance of the minutes of the regular meeting, July 13, 1995,
as corrected. Director Perry seconded. Motion to approve the minutes of July 13, 1995,
• as corrected approved unanimously.
COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995 Page 2
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ADJOURNED SPECIAL MEETING — JULY 6, 1995
Director Schafer moved acceptance of the minutes of the adjourned special meeting,
July 6, 1995. Director Worthington seconded. No further discussion was held. Motion
to approve the minutes of the July 6, 1995, adjourned special meeting approved
unanimously.
WRITTEN COMMUNICATIONS
Mr. Hamers reported receipt of letter from Mr. Jim Silva, Supervisor, Second District, to
Mr. James Ferryman, President of the Costa Mesa Sanitary District, dated July 26, 1995,
responding to the Costa Mesa Sanitary District's opposition to altering property tax
allocations for bankruptcy recovery. Mr. Silva states that he will not support any
reallocation of property taxes or reserves which would cause the need to increase fees or
rates, and further states that he will carefully review the specific recommendations
presented by the recovery team.
PUBLIC COMMENTS
There were no public comments made.
REPORTS •
MANAGER'S REPORT
OCCUPANCY REPORT
Mr. Hamers reported a decrease of 5 units in the occupancy report for solid waste
collection as of August 1, 1995. Therefore, the total for August is 22,063. Staff
recommends the acceptance of the count. Director Reade motioned to accept the count
as presented. Director Perry seconded. Motion to accept the occupancy report approved
unanimously.
Mr. Hamers recommended that the Board direct staff to prepare a warrant for $159,575.06
to Costa Mesa Disposal on September 1, 1995, for payment for August trash collection
based on the August count of 22,063. Motion made by Director Reade, seconded by
Director Perry. Motion to prepare the warrant approved unanimously.
Mr. Hamers recommended that the Board direct staff to approve a retroactive payment
to Costa Mesa Disposal Inc, reflecting the CPI increase for July trash collection calculated
as follows:
22,068 occupancy x $0.1725 = $3,806.73. •
COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995 Page 3
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The CPI increase, effective July 1, 1995, was approved at the July 13, 1995, regular
meeting. The payment made to Costa Mesa Disposal for July trash collection was based
on the previous rate.
Director Reade motioned to approve the payment to Costa Mesa Disposal Inc. for
$3,806.73. Director Perry seconded. Motion carried 5 -0.
REFUNDS
THOMAS CROSSON
Mr. Hamers reported a refund request from Mr. Thomas Crosson, dated July 26,
1995, for the amount of $3,780.82, covering the 1986 -87 fiscal year through the
1994 -95 fiscal year for property located at 180 Cecil, a three —unit parcel, Parcel
Number 426 - 063 -17. Mr. Crosson was unaware of the exemption and was using
private trash service.
Mr. Flamers further reported that Mr. Crosson was charged erroneously for six
units in the 1987 -88 to 1990 -91 fiscal years, and four units for the 1991 -92 to
1994 -95 fiscal years instead of three units.
Mr. Flamers recommended the issuance of a refund, in accordance with the
Board's policy to refund for the units charged in error and for the current fiscal
year, of $1,589.73 for trash and a permanent exemption was recommended.
Additionally, a refund of $202.00 for sewer charges on the units charged in error
was recommended for a total refund of $1,791.73. Director Reade motioned to
approve the refund of $1,791.73. Director Perry seconded. Motion approved
unanimously.
EDWARD LEE
Mr. Hamers advised the Board of a refund request from Mr. Edward Lee, dated
July 20, 1995, for the amount of $642.39, encompassing fiscal years 1991 -92 to
1994 -95, for property located at 425 Ford Road, Costa Mesa, a three —unit parcel,
Parcel Number 419 - 202 -01. Mr. Lee was erroneously billed for four units
instead of three.
Mr. Hamers recommended a refund of $67.87 for sewer and a refund of $574.52
for trash, for a total refund of $642.39. Director Schafer motioned to refund a
total of $642.39 for the fiscal years 1991 -92, 1992 -93, 1993 -94 and 1994 -95.
Director Reade seconded. Motion to approve the refund approved unanimously.
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995
SOURCE REDUCTION AND RECYCLING ELEMENT - AB939
STATUS OF CITY'S WASTE PROGRAM
Anti - Scavenging Solutions /Enforcement
Page 4
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Mr. Hamers presented to the Board an interoffice memorandum from Mr. William
J. Morris, Director of Public Services, dated July 19, 1995, to Mr. Rob Hamers,
reflecting monthly police department statistics for scavenging enforcement. A
total of 4 citations were issued out of 45 calls for service.
Mr. Hamers additionally reported he has not heard back from the police
department regarding additional manpower and cost figures for hiring an anti -
scavenging enforcement officer.
Mr. Burns reported that he contacted Mr. Tom Kathe, as directed by the Board at
the July 13, 1995, regular meeting, to discuss the prosecution of scavengers.
Mr. Burns related the ensuing conversation to the Board. Mr. Kathe told
Mr. Burns that the police department produced a training circular and that they are
utilizing a consultant to promote awareness. They have a new Deputy City
Attorney who will begin on Monday, August 14, 1995, who will be assigned court •
dates to prosecute scavenging infractions. Mr. Burns further related that the
manpower shortage in the police department for issuing citations appears to be the
weak link in the system.
Mr. Burns further related that the Deputy City Attorney will prosecute the
scavenging infractions at no cost to the Costa Mesa Sanitary District.
Ms. Temple advised the Board of a schedule adopted in May, 1995, that outlines
the cost figures for special services. Mr. Hamers requested a copy of that
schedule from Ms. Temple.
Household Hazardous Waste Grant Program
Mr. Hamers reiterated that the Costa Mesa Sanitary District is filing a joint
application with the City of Costa Mesa.
SRRE EDUCATIONAL PROGRAM
Response to Summer Newsletter
Mr. Hamers reported a notably enthusiastic response to the newsletter.
Ms. Reichle reported approximately 120 requests for the compost guide and •
numerous requests for the anti- scavenging adhesive signs.
COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995 Page 5
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President Ferryman related to the Board the positive comments he received from
the public regarding the newsletter.
RECYCLING REPORTS
Waste Diversion Report for July 1995
Mr. Hamers reported 25.18% waste diversion for the month of July, 1995.
Total Tonnage: 2,706.15 Tonnage Recycled: 681.32
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 for the month of July, 1995. Director Reade motioned for approval of
payment to CR Transfer in the amount of $122,236.79. Director Perry seconded.
No further discussion was held. Motion carried 5 -0.
• LOCAL MEETINGS
Local Agency Formation Commission
Mr. Hamers presented to the Board the LAFCO meeting agenda. Mr. Hamers
advised the Board of Assembly Bill 49, which calls for Counties, Cities, and
Special Districts to contribute a proportional share of property tax revenues toward
the funding of LAFCO. Mr. Hamers further advised the Board on the departure
of Sara Anderson, Executive Director.
Independent Special Districts /Orange County (ISDOC)
Special Meeting — 8 -4 -95
Director Schafer advised the Board of the Meeting, Friday, August 4, 1995, at
MWDOC. The agenda consisted of the Orange County Delegation proposal for
solving the bankruptcy.
Director Schafer provided the minutes of the special meeting of August 4, 1995,
for the Board's review.
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995
Executive Board Meeting
Page 6
Director Schafer further advised the Board of the regular August meeting. At this
meeting it was decided to mail the by -laws out to the members to evaluate and
return within 65 days.
Director Schafer additionally advised the Board of a meeting held August 10,
1995, in which a fervent debate regarding the approval of the by -laws ensued,
resulting in a recall of the distributed by -laws.
Orange County Sanitation Districts
Regular Meeting
President Ferryman advised the Board of the election of Mr. Peer Swan to the
position of Joint Vice Chairman, and Mr. John Cox was elected Chairman.
President Ferryman reported the advancement of the consolidation of the nine
districts that make up the Orange County Sanitation Districts.
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President Ferryman related that a consultant has been retained to study the
feasibility of the Orange County Sanitation District purchasing the landfills from •
Orange County at approximately $250,000,000.
TREASURER'S REPORTS
Financial Report
Ms. Temple reported on an error with the 1993 -94 balance sheet computations and stated
that due to time constraint difficulties stemming from her involvement in a special Orange
County Bankruptcy meeting, the Financial Report will be corrected and presented at the
adjourned special meeting on August 24, 1995.
Director Reade motioned to table the Financial Report until the August 24, 1995,
adjourned special meeting. Director Schafer seconded. Motion to table the Financial
Report approved unanimously.
Treasurer's Report of Monies on Deposit
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Ms. Temple reported that the reconciliation from the bank has not yet been received and
the Treasurer's Report of Monies on Deposit will be presented at the August 249 1995,
adjourned special meeting.
Orange County Bankruptcy •
Update
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995
Page 7
Ms. Temple advised the Board that the governor vetoed SB75 and gave the County three
weeks to devise a recovery plan. Ms. Temple updated the Board on the four groups
working toward that end which included The Family of Governments, the County of
Orange, the Orange County Legislative Delegation, and the League of California Cities.
Ms. Temple presented to the Board a breakdown of the four different plans devised by
each of the four entities. The League of California Cities requested the City Managers
to put together a Technical Committee to assess the components of the three existing
plans and devise an additional plan that would meet the majority of the objectives. Ms.
Temple was assigned to the Technical Committee comprised of an elected official, Mr.
Richard Dixon from Lake Forest, four City Managers, four Finance Directors and the
attorney representing the cities. The Technical Committee's plan was positively received
and they were invited to join the Orange County Business Council.
Ms. Temple described in detail the Technical Committee's plan outlined in the handout
presented to the Board and recommended support from the Costa Mesa Sanitary District
for the proposal of the League of California Cities presented on August 10, 1995,
reflected as follows:
$ 95
County debt refinancing (1)
350
Loan from OCTA — repaid with gas tax currently allocated
to County ($15 million for 23 years) (2)
250
Sale of Landfills to Sanitation Districts (3)
105
Property tax shift from Harbors, Beaches & Parks,
and Flood Control District funds (4)
$ 800
Immediate Solution
$ 763
Secured Claims (5)
$ 1.563 billion Solution
Notes: I. The County has $1.0 billion in debt that could be restructured
resulting in a $95 million one —time cash inflow at no additional
cost.
2. County currently receives $31 million in gas tax, a portion of
which could be allocated to OCTA.
3. Requires negotiations between County Sanitation Districts and
the County regarding landfill values and closure liability.
4. County must determine distribution of property tax shift among
County controlled Districts. Would require County to issue $105
million in debt paid over 20 years.
5. Non— school Pool Participant settlement secured and repayment
claims, including Option B claims, become subordinate to all non —
County claims, but receive 100% of litigation recoveries until paid
in full and control of litigation.
THIS PROPOSAL PRE — SUPPOSES THE APPOINTMENT OF A TRUSTEE TO
IMPLEMENT THE COMPONENTS OF THIS PROPOSAL.
COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995 Page 8
Director Schafer motioned to approve in concept the document from the League of
California Cities as presented on August 10, 1995, by Ms. Temple with the authority to
provide written approval as requested. Director Perry seconded. The motion to approve
the document in concept and the issuance of written, support approved unanimously.
Mr. Burns distributed to the Board an article appearing in The California Lawyer,
detailing the Merrill Lynch lawsuit and speculating on the chances for recovery of funds.
Director Schafer distributed to the Board an article from Supervisor Marian Bergeson, 5th
District, entitled, A 5th DISTRICT SURVEY — — After Measure R
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 addressed on a forthcoming agenda.
ATTORNEY'S REPORTS
CR Transfer — Draft Recycling Agreement
Mr. Burns advised the Board of the completion of a rough draft agreement. Mr. Burns
dispatched the agreement to Mr. Hamers for review. The recycling agreement will be
discussed further at a subsequent meeting.
OLD BUSINESS
STATUS REPORT — PENDING ITEMS
Mr. Hamers declared there is nothing to report, there are no pending items.
Creative Management Solutions — Financial Study
City /District Contract •
Mr. Hamers reported that this study is continuing.
COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995 Page 9
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City of Newport Beach — Irvine Avenue Manhole Claim
Revised Agreement
Mr. Hamers reported the revised agreement will be presented at a subsequent meeting.
1995 TELEPHONE BOOK RECYCLING PROGRAM
Mr. Hamers discussed his letter to GTE, dated July 27, 1995, reviewing the program and
requesting their participation. GTE has not responded at the current time. Mr. Hamers
further related that Donnelley and Pac Bell had both responded. Mr. Hamers stated that
he will be following up on this item.
NEW BUSINESS
Reimbursement for Sewer Occurrence — Susan and Steve Rooney
Mr. Hamers reported a request for reimbursement of $324.90 from Mr. and Mrs. Steve
Rooney, 1914 Santa Ana Avenue, for a sewer occurrence on July 17, 1995. A stoppage
in the sewer necessitated carpet cleaning and bathroom sanitizing at the Rooney home.
Staff recommended reimbursement of $4.90 for supplies, $50.00 labor, $270.00 carpet
cleaning, for a total payment of $324.90 issued upon receipt of a release signed by Susan
and Steve Rooney. Director Perry motioned to authorize reimbursement for the incident
on the terms presented. Director Reade seconded. Motion carried 5 -0.
Reimbursement for Manhole Cover Incident — John Fritz
Mr. Hamers reported a reimbursement request dated August 1, 1995, for an occurrence
on May 2, 1995, from Mr. John Fritz. Mr. Fritz was driving on Harbor Boulevard at
Sunflower Avenue, May 2, 1995, when a manhole cover, unseated by previous traffic,
impacted and damaged the underside of Mr. Fritz's automobile. The request was filed
with the City of Costa Mesa and redirected to the Costa Mesa Sanitary District.
Ms. Reichle contacted the SDRMA and was advised that the SDRMA would issue a
reimbursement to Mr. Fritz in the amount of $2,443.48 and bill the Costa Mesa Sanitary
District for the deductible. A reimbursement of $2,443.48 for automobile repair of
$2,009.76 and rental car fees of $333.72 will be presented to Mr. Fritz upon receipt of
a release form signed by Mr. Fritz. Director Schafer motioned to authorize
reimbursement for the incident on the terms presented. Director Perry seconded. Motion
carried 5 -0.
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COSTA MESA SANITARY DISTRICT
Minutes — Board of Directors Meeting held August 10, 1995 Page 10
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CA Special Districts Association
Annual Conference Reservations - September, 1995
Ms. Reichle reported to the Board of her inquiry to the CSDA of the possibility of
purchasing and sharing an admittance to the Annual Conference of the California Special
Districts Association among Board members. A determination was made to purchase a
single registration and divide attendance at the various functions between Directors
Ferryman, Perry and Mr. Hamers. Ms. Reichle will coordinate the attendance of the
participants.
Director Schafer motioned to purchase one registration to the Annual Conference of the
CSDA. Director Perry seconded. No further discussion was held. Motion carried 5 -0.
WARRANT REPORT
Motion made by Director Reade, seconded by Director Perry, authorizing the President
and Secretary to sign Report No. 96 -02 instructing the Finance Department to draw a
warrant from the Costa Mesa Sanitary District General Fund in the amount of
$433,918.68. Motion carried 5 -0. 0
ORAL COMMUNICATIONS
Director Schafer commended the Board on their level of commitment, spirit of
cooperation and endeavors to communicate.
Director Schafer recommended the inclusion of the Board member's names on the
residential large item clean -up notification.
Ms. Reichle commented on the invitation to a party at Marilyn Brewer's home for
August 10, 1995. Ms. Reichle declined the invitation for all Board members in light of
the conflict with the current Board meeting.
ADJOURNMENT
At 7:50 p.m. Director Ferryman adjourned the meeting to the special meeting on
August 24, 1995, at 6:00 p.m. at the Civic Center, Conference Room 1 -A, 77 Fair Drive,
Costa Mesa.
Secretary ` President