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Minutes - Board - 2001-07-25 (2)r -- 0 COSTA MESA SANITARY DISTRICT MINUTES OF SPECIAL MEETING HELD JULY 259 2001 CALL TO ORDER The Costa Mesa Sanitary District attended a Special Meeting at 10:00 a.m. in Conference Room 5A at the Costa Mesa Civic Center. 77 Fair Drive. Costa Mesa President Schafer called the meeting to order at 10:00 a.m. Director Worthington led the Pledge of Allegiance Vice President Woodside gave the Invocation. ROLL CALL: Directors Present: Arlene Schafer, Greg Woodside, Art Perry, Jim Ferryman, Dan Worthington Staff Present: Robin Hamers, Manager /Engineer; Alan Burns, • Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Clerk of the District; Marc Puckett, Finance Director; Dawn Schmeisser, Assessment Specialist Others Present: Grace Camacho, Costa Mesa Breeze I. PRELIMINARY 2001 -2002 TRASH COLLECTION AND SEWER SERVICE RATES Mr. Hamers briefly reviewed the preliminary rate calculation prepared by Mr. Puckett that was included in the 2001 -2002 District budget. The rate structure reflected a 5.8% increase in the trash rate to $184.62 per year and the sewer rates reflected a 1% increase. II. SURVEY OF ORANGE COUNTY TRASH AND SEWER RATES Mr. Hamers reviewed four items: The CMSD chart showing the history of the District's rates, a current sewer rate survey prepared by Ms. Revak, the yearly trash collection rate survey prepared by Ms. Revak and a newspaper clipping noting a 12% rate increase for sewer services provided by the Irvine Ranch Water District for portions of • Newport Beach. e" � ��S�SANItRRPo • '��RPOBAIE��, III. DISCUSSION OF RATE STRUCTURE Costa Mesa Sanitary District Minutes of Special Meeting June 19, 2001 Paqe 2 Mr. Hamers and Mr. Puckett reviewed the current District Budget for sewer services noting that a 1 % increase in rates still does not cover the proposed budget because of a last minute capital improvement project. The project is modifying or relocating the Tustin Pumping Station to accommodate a street widening project. Mr. Puckett noted that the District's sewer rates have not increased in eight years and that such a rate structure is subject to occasional deficits. Mr. Hamers and Mr. Puckett recommended a steadily increasing rate structure at approximately the yearly CPI. Because it has been so long since the last increase, Mr. Hamers recommended a 5% increase. For the single family residences, a 5% increase equates to only a $1.15 per year increase. Mr. Hamers noted that a long term steadily increasing rate structure was also recommended by Mr. Greg Lowry, a financial planner previously hired by the District. Mr. Hamers noted the Board's success at holding rates level for a long term and its positive effect on the community, however, an increase is appropriate at this time. • The Board also noted that the District's rates for trash and sewer compared favorably to rates in other Orange County cities. With respect to the proposed trash collection rate, the Board noted the rate covers all expenses except for the new standardized containers that are being provided at no charge. The Board reviewed the proposed rates sent out on the Public Hearing notice, which were 5% increases on all the sewer rates and a 5.8% increase on the trash collection rate. The Board directed Staff to prepare the Public Hearing agenda reflecting the 5% and 5.8% increases along with written justification for the increases. IV. ABILITY TO ADJUST BUDGET TO MODIFY RATES Mr. Hamers noted that should the Board desire to modify rates, items can be deleted from the budget or reserves can be used. V. PUBLIC COMMENTS No public comments were received. • � ��S�,4ANl}RRP O • 's ��RPOYAM1�`, The meeting was adjourned at 11:20 a.m. secretary I� U 0 Costa Mesa Sanitary District Minutes of Special Meeting June 19, 2001 Page 3