Minutes - Board - 2002-06-13ll
COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 13, 2002
The Board of Directors of the Costa Mesa
CALL TO ORDER Sanitary District met in regular session on
June 13, 2002, at 12:00 p.m. in Room
1 -A of the Civic Center, 77 Fair Drive, Costa
Mesa.
President Schafer called the meeting to order at 12:00 p.m.
Director Ferryman led the Pledge of Allegiance.
Vice President Woodside gave the invocation.
ROLL CALL
• DIRECTORS PRESENT: Arlene Schafer, Art Perry, Greg
Woodside, James Ferryman, Dan
Worthington
DIRECTORS ABSENT: None
STAFF PRESENT: Robin Hamers, Manager /Engineer; Alan
Burns, Legal Counsel; Tom Fauth,
Assistant Manager; Joan Revak, Clerk of
the District; Marc Puckett, Finance
Director; Bobby Young, Finance; Ron
Shef, District Ordinance Enforcement
Officer
OTHERS PRESENT: None
. ............................... CONSENT CALENDAR . ...............................
Secretary Perry motioned to approve the Consent Calendar with an amendment
to Directors Expenses for the Month of May 2002, corrected to show Director
• Worthington in attendance at the May 9, 2002 regular meeting instead of Clovis,
and the changes to the Occupancy Report. Director Woodside seconded.
Motion carried unanimously.
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JUNE 13, 2002
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REPORTS
MINUTE APPROVAL
Minutes of Recycling The Minutes for the Recycling Committee Meeting of
Committee Meeting, June 11, 2002, were approved as distributed.
June 11. 2002
Minutes of Investment The Minutes for the Investment Oversight Committee
Oversight Committee Meeting of May 9, 2002, were approved as
Meeting, May 9, 2002 distributed.
Minutes of Regular The Minutes for the Regular Meeting of May 9, 2002,
Meeting, were approved as distributed.
May 9, 2002
Minutes of Special The Minutes for the Special Meeting of May 14, 2002,
Meeting, were approved as distributed.
May 14, 2002
MANAGER'S REPORTS
REFUNDS In accordance with Resolution No. 96 -584, adopted
by the Costa Mesa Sanitary District on April 17, 1996,
the following refunds were granted subsequent to
receiving a signed statement from the applicants:
Refund request of Approved refund request to Marshall Gretmore
$581.17 by: Marshall for property located at: 164 Flower Street, Costa
Gretmore Mesa, CA 92627 -2836
Assessor's Parcel No. 452 - 234 -21
Number of units: 1
Trash Refund Totaling: $512.11
Sewer Refund Totaling: $69.06
Total Refund: $581.17
Reason: Parcel charged as 2 units.
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MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 13, 2002
• PAGE 3
OCCUPANCY REPORT
Occupancy Report and The June occupancy report reflects the June 3, 2002
Payment of informational letter from Costa Mesa Disposal to the
$172,859.52 to Costa District. CMD submitted their own occupancy report
Mesa Disposal — June with a total of 21,034. Therefore, the total for June is
2002 21,034. Board directed Staff to prepare a warrant for
$172,859.52 to Costa Mesa Disposal on July 1, 2002,
for payment for June trash collection based on the
June count of 21,034 provided Contractor fulfills
obligation of the agreement.
ENGINEER'S REPORTS
Project Status Report The Project Status Report dated June 2002, was
accepted as submitted.
TREASURER'S REPORTS
• Financial report as of The Financial Report for May 31, 2002 was accepted
May 31, 2002 as submitted.
Report of Monies on The Report of Monies on Deposit as of May 31, 2002,
Deposit as of May 31, was received and filed.
2002
Warrant 2002 -11 for Warrant Resolution #CMSD 2002 -12 was approved,
June 2002 in the authorizing the President and Secretary to sign the
amount of $670,140.48 warrant and instructing the Finance Department to
draw a warrant from the Costa Mesa Sanitary District
General Fund in the amount of $670,140.48.
Directors Expenses for Director Expenses for the Month of May 2002 were
the Month of May 2002 ratified with a correction to Director Worthington's as
follows:
5/9/02, CMSD Regular Meeting showed Director
Worthington in Clovis. Director Worthington was in
attendance at the regular meeting.
Director Ferryman: $684.40
Secretary Perry: $850.00
President Schafer: $1,025.50
• Vice President Woodside: $680.00
Director Worthington: $850.00
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°0 MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 13, 2002
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.......................... END OF CONSENT CALENDAR ..........................
WRITTEN COMMUNICATIONS
Mr. Harriers reported the District received no written communications.
PUBLIC COMMENTS
There was no public in attendance, no public comments.
MANAGER'S REPORTS
ANTI - SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT
REPORTS
POLICE REPORT
Mr. Harriers presented a memorandum providing the scavenging statistics
for May as follows:
Location Calls for Service Cite /Arrest
Area 1
2
2
Area II
2
0
Area III
3
1
Area IV
0
0
TOTAL
7
3
DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT
Mr. Harriers presented the ordinance enforcement summary report for the
five -week period beginning April 22, 2002 and ending May 26, 2002.
Mr. Shef distributed approximately 40 courtesy flyers during this period.
Mr. Shef indicated the entire District is now utilizing the standardized
containers, providing a uniform, cleaner appearance during trash pickup.
Mr. Shef reported an overall satisfaction from most residents, but is receiving
a few questions regarding old trash containers and disposal of large boxes.
The container tag study is complete and placement of I.D. tags, where
necessary, will begin at various multi - family dwellings.
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JUNE 13, 2002
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CMSD STRATEGIC PLAN
YEAR 2002 STRATEGIC PLANNING ACTION ITEMS
Mr. Hamers presented the Year 2002 Strategic Planning Action Items
report and stated it will appear in all Board packets for the Board's
reference. Mr. Hamers reported many of the items in the Strategic Plan
have already been completed.
Director Ferryman motioned to accept the Year 2002 Strategic Planning
Action Items as presented. Secretary Perry seconded. Motion carried
unanimously.
Director Worthington inquired as to the status for placement of a Costa
Mesa Sanitary District sign in front of City Hall. President Schafer advised
the Board the City objected to the concept, stating a sign promoting the
CMSD in front of City Hall would be confusing for the public. The City
suggested placing the sign on the directory and the floor where the District
is located.
• Staff is discussing available space with the City.
MISSION STATEMENT
Director Worthington requested the Board consider revising the Mission
Statement to contain the word "health" in it.
The adopted statement: "Serving our community's solid waste and sewer
collection needs"
The suggested modified statement: "Protecting our community's health by
providing trash collection and sewer service"
Staff reported they currently have approximately 6 reams of letterhead
containing the adopted mission statement.
Discussion ensued.
Staff will work with the suggestions provided and bring back a suggested
mission statement to the Board.
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RECYCLING REPORTS
WASTE DIVERSION REPORT — APRIL 2002
Secretary Perry motioned to receive and file the Waste Diversion Report
for April 2002, showing a diversion rate of 50.07. Vice President
Woodside seconded. Motion carried unanimously.
WASTE DIVERSION REPORT — MAY 2002
Ms. Revak reported the Waste Diversion Report for May 2002 has not yet
been received.
CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL
FOR MAY 2002
Secretary Perry motioned to approve contract payment to CR Transfer for
recycling services and disposal for the month of May 2002 in the amount of
$160,128.48, subject to verification by Staff. Vice President Woodside
seconded. Motion carried 5 -0.
• Mr. Fauth reported the payment for April did not process through the system
last month so the May payment will contain payments for both April and May,
pending verification of the May report
HISTORY OF THE COSTA MESA SANITARY DISTRICT
Mr. Hamers reported Staff has begun to assemble pieces of the District's
history, at the suggestion of Director Worthington and with the concurrence of
President Schafer, in order to memorialize the time from the formation in 1944
until the present time.
Staff recommended the following:
• Direct Staff to assemble a history of the District for review and approval
by the Board.
• Schedule the July 11, 2002, regular meeting to begin at 4:00 p.m. at
the Costa Mesa Historical Society, 1870 Anaheim Avenue, Costa
Mesa. Board and Staff may arrive anytime after 3:00 p.m. to view the
facility and a tour will begin at 3:30 p.m. The tour would also include
• research by the Society of any references on file to the current
Sanitary District Board members.
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• Consider a nominal fee of $150 -250 to reimburse the Society for the
use of the facility
• Direct Staff to prepare a letter to the City of Costa Mesa requesting any
information learned about the Sanitary District at the upcoming 50 year
anniversary of the City in year 2003 be sent to the District.
Director Worthington motioned to approve the five -year membership fee of
$250.00 to the Historical Society and the other bullet points as listed. Motion
carried unanimously.
CMSD REGULAR MEETING LOCATION
Director Worthington requested a Board review of the reasons for holding the
CMSD meetings at City Hall instead of an outside location.
President Schafer felt it would be difficult for Staff to transport materials to
another location on a regular basis.
Mr. Harriers suggested the Board see how the July meeting at the Historical
• Society goes and make a determination after that.
RECYCLING COMMITTEE— JUNE 11, 2002 — 9:30 A.M. DIRECTOR WORTHINGTON
AND PRESIDENT SCHAFER
STANDARDIZED CONTAINER PROGRAM
Mr. Fauth provided a review of the summary sheet. The District will
maintain approximately 50 -100 containers of various sizes in inventory at
the Costa Mesa Disposal yard to provide additional or replacement
containers for residents.
Director Worthington reported the truck drivers are still placing the
standardized container in the gutter area instead of back up on the curb.
Director Worthington reported the tag survey has been completed and
tags will be distributed by Mr. Shef as required.
WASTE DIVERSION
Director Worthington presented a theory and began discussion on
encouraging the disposal of food waste into the sewer system, thereby
• decreasing the solid waste stream.
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Director Worthington estimated that if 40,000 residents of Costa Mesa
disposed of approximately '/4 pound of waste in their garbage disposals
each day instead of in the trash collection system, the decrease to the
landfill system would be over 1,800 tons per year.
An excerpt of the Recycling Minutes of June 11, 2002 follows:
Director Worthington presented the theory of encouraging residents to
place more food in their garbage disposals thereby increasing the waste
stream in the sewer system and decreasing the solid waste stream that
requires pickup, transportation, sorting, and landfilling. Director
Worthington questioned whether it was more cost effective to use the
sewer system because the resulting biosolids by- product can be used as a
land application. After discussion, the following questions were posed:
1. Does the food that now gets collected in the solid waste stream
become composted?
2. If the food was removed from the solid waste stream, would the
. recyclables such as newspapers in the resulting solid waste stream
become less contaminated and a higher diversion percentage
achievable?
3. What percentage of the residential food waste stream is currently
placed in the sewer system through the garbage disposal and would
the public be receptive to a campaign to increase the percentage?
4. What are the. implications to the Orange County Sanitation District
(OCSD) of increasing the waste stream by the addition of more food
and the associated increase in water?
5. What percentage of food waste in the sewer system ends up as
biosolids versus going out through the ocean outfall?
6. What is the cost of producing Class A biosolids and the trucking costs
to transport the biosolids to Kings County or Kern County? What are
the long term costs associated with biosolids considering OCSD is
contemplating a plant in Colton to process biosolids to Class A?
Discussion was held.
• Director Ferryman suggested Staff contact Integrated Waste
Management Department to see if a study of this type has been
conducted.
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
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PAGE
Staff will contact Integrated Waste Management Department and
provide a copy of the Recycling Minutes and inquire if a study of
this type has been done.
Staff will bring back the response to the Board.
LARGE ITEM COLLECTION PROGRAM — 2002
Ms. Revak reported the Large Item Collection Program for 2002 begins on
Monday, June 24 and will run through the week of August 26. A press
release was sent out. Door hangers will be placed at the door of
residences two weeks prior to the collection date.
ENGINEER'S REPORTS
Mr. Hamers reported Staff will be bringing the proposed Sewer System
Management Plan at the July CMSD meeting for Board approval.
PROJECT NO. 155 — MASTER PLAN UPDATE
Mr. Hamers reported the Independent Engineer's Report will be ready in July
for the Board's review.
2051 -2053 NEWPORT BOULEVARD
NEW CMSD EASEMENTS
RESOLUTION NO. 2002 -659 — VACATING EXISTING EASEMENT
Mr. Hamers requested continuation of this item to July.
EMERGENCY SERVICES AGREEMENT — PREUSSAG PIPE REHABILITATION
Mr. Hamers presented an Emergency Services Agreement between the
Costa Mesa Sanitary District and Preussag Pipe Rehabilitation. Mr. Hamers
reported the method was quick, inexpensive, and easy to use.
Mr. Burns has reviewed the agreement and approved its contents.
• Mr. Burns suggested Mr. Hamers have them submit their rate sheet to be
attached to the agreement.
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Director Ferryman motioned to approve the Emergency Services Agreement
with Preussag Pipe Rehabilitation. Secretary Perry seconded. Motion carried
unanimously.
TREASURER'S REPORTS
SOLID WASTE FINANCIAL FORECASTING MODEL
Mr. Puckett was instructed at the May Regular Board Meeting to bring back a
model of a three- and five -year plan, based on the changes discussed at the
May meeting, an ongoing $30,000 reallocation estimation from a 25/75 split of
central administrative costs between solid and liquid program activities and
$126,000 in a one -time increase of reallocation of bankruptcy proceeds from
the Liquid Waste Fund to the Solid Waste Fund.
Mr. Puckett presented the possible scenarios.
Discussion ensued.
• Mr. Harriers requested Mr. Puckett prepare a final form of whatever is chosen
to eliminate confusion between the three options.
Director Worthington motioned to accept the 3 -year scenario. Secretary
Perry seconded. Motion carried as follows:
Aye: Directors Worthington, Ferryman, and Perry
No: Directors Schafer and Woodside.
Mr. Puckett will prepare a final approved budget and present that to the Board
for clarity of record.
RESOLUTION NO. 2002 -659 — 2002 -2003 DISTRICT BUDGET
Mr. Puckett presented Resolution No. 2002 -659 — 2002 -2003 District Budget,
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA
SANITARY DISTRICT, ADOPTING A BUDGET FOR THE FISCAL YEAR
2002 -2003.
Director Ferryman motioned to adopt Resolution No. 2002 -659 — 2002 -2003
District Budget subject to the effects of having adopted the 3 -year solid waste
• planning horizon. Director Worthington seconded. Motion carried
unanimously.
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RESOLUTION No. 2002 -660 — 2002 -2003 INVESTMENT POLICY
Mr. Puckett presented Resolution No. 2002 -660 — 2002 -2003 Investment
Policy, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA
MESA SANITARY DISTRICT, ADOPTING THE 2002 -2003 STATEMENT OF
INVESTMENT POLICY, AND AUTHORIZING THE TREASURER TO
INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY
DISTRICT IN ACCORDANCE WITH THE 2002 -2003 STATEMENT OF
INVESTMENT POLICY, AND AUTHORIZING THE SAID TREASURER TO
DELEGATE TO HIS DEPUTY THE CARRYING OUT OF ANY SUCH TASKS.
Director Ferryman motioned to adopt Resolution No. 2002 -660 — 2002 -2003
Investment Policy. Secretary Perry seconded. Motion carried unanimously.
Secretary Perry left the meeting at 1:40 p.m.
ATTORNEY'S REPORTS
ORANGE COUNTY INVESTMENT POOL
• Mr. Burns presented a letter from Mr. Richard Hilde, Assistant Treasurer,
County of Orange, dated May 22, 2002. Mr. Hilde's letter states the District,
as an outside participant in the Orange County Treasurer's Investment Pool,
adopted a resolution and authorization agreement with the County Treasurer.
Since that time, the document has been modified to ensure that participants
acknowledge "risk." The letter requests the District adopt a new resolution
and authorize a new agreement that contains the revised language.
Discussion ensued.
Mr. Burns reported the resolution has elements to it that seem reasonable. It
asks the District to acknowledge that there are risks in investing and that our
Treasurer has reviewed the OCIP Investment Policy Statement. The
resolution also states that the County retains the right to amend the IPS
"without review or consent of the local agency." The resolution also fails to
mention that the County is under a duty to act as a "fiduciary" subject to the
prudent investor standard that the County Treasurer will "act with the care,
skill, prudence, and diligence" of a prudent investor.
Mr. Burns found the agreement legally acceptable if the District could live with
the County Treasurer changing the Investment Policy without notice or
• consent of the District.
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Mr. Puckett stated the document requests the District acknowledge risk but
does not require the County to acknowledge a fiduciary responsibility to the
District in terms of how the Pool is managed.
The District does not have any money invested in the Pool at the present
time, but Mr. Puckett is authorized by the Board to invest in the future.
The Board decided not to respond to the letter at this time.
LOCAL MEETINGS
ORANGE COUNTY SANITATION DISTRICT
REGULAR MEETING - MAY 22, 2002
Director Ferryman passed around a letter from Mr. Blake Anderson to
Senator Byron Sher, Chair of the Environmental Quality Committee.
Director Ferryman discussed the waiver and requested the Board's input
and direction.
Director Ferryman reported there will be a letter from Mr. Stanley Grant,
LIC Irvine scientist, appearing in the Los Angeles Times stating there is no
direct evidence that the outfall is responsible for the pollution in Huntington
Beach.
Director Ferryman provided the agenda and notes for the Board's perusal.
CMSD SPECIAL MEETING — JUNE 17, 2002, 4:00 P.M. AT NEIGHBORHOOD
COMMUNITY CENTER
President Schafer reminded everyone of the Special Meeting to be held at
the Neighborhood Community Center.
SANTA ANA RIVER FLOOD PROTECTION AGENCY
EXECUTIVE COMMITTEE MEETING OF MAY 23, 2002
Director Ferryman reported he will serve on the Executive Board again.
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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
JUNE 13, 2002
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INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC)
QUARTERLY MEETING AND LAFCO ELECTION - MAY 30, 2002
President Schafer attended the May 30th Quarterly meeting and reported
the following:
• John Withers, Irvine Ranch Water District, was reelected
• Charlie Wilson, Rancho Santa Margarita, was reelected
• Newly- formed LOCAL coalition, Regional Advisory Board.
Information distributed to Board. President Schafer will be on the
Board
Vice President Woodside left the meeting at 1:58 p.m.
LOCAL AGENCY FORMATION COMMISSION ( LAFCO)
COSTA MESA AND NEWPORT BEACH ANNEXATIONS
President Schafer chaired the June 12th meeting and reported the
following:
• Passed the annual budget; all Special Districts will be charged the
same as last year
• Reviewed 10 candidates for the position of public member.
• Susan Wilson reappointed as public member.
• Established a contingency fund no less than $100,000
WATER ADVISORY COMMITTEE OF ORANGE COUNTY (WACO)
President Schafer attended the WACO meeting of June 7th and reported
the following:
• Lisa Murphy, OCSD Communications Manager, on Orange County
Sanitation District, spoke on the Ocean Outfall Study Update
• Tom Ash, Water Conservation Manager, Irvine Ranch Water District
spoke
• Keith Coolidge gave a legislative update
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MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
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PAGE 14
ORANGE COUNTY COUNCIL OF GOVERNMENTS ( OCCOG)
President Schafer attended the Orange County Council of Governments
meeting of May 23rd and reported the following:
Presentation from League of Cities asking for OCCOG to join the
newly- formed LOCAL (Leave Our Community Assets Local) Coalition
CHAMBER OF COMMERCE LEGISLATION COMMITTEE
President Schafer attended the May 15w Chamber of Commerce
Committee meeting and reported the following:
• Updates given
• President Schafer provided an update on the completion of the
standardized container program.
CSDA
President Schafer reported there was no CSDA meeting held in May.
CSDA has joined the LOCAL coalition.
"BUILD A BINDER SERIES" — JUNE 7, 2002 — CHICO AND JULY 17, 2002 —
CUCAMONGA, TOPICS: "ADMINISTRATION" AND "GOVERNING OFFICIALS"
Director Ferryman motioned to allow Director Ferryman to attend the July
17, 2002 Build a Binder Series. President Schafer seconded. Motion
carried unanimously.
OLD BUSINESS
There was no old business discussed.
NEW BUSINESS
SDRMA RENEWAL INVOICE IN THE AMOUNT OF $40,860.11
Director Ferryman motioned to approve payment of $40,860.11 for the SDRMA
Renewal. Director Worthington seconded. Motion carried unanimously.
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MINUTES OF BOARD OF DIRECTORS REGULAR MEETING
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PACE 15
ORAL COMMUNICATIONS
Director Ferryman reported there is talk of suspending Proposition 98.
ADJOURNMENT
At 2:10 p.m., President Schafer adjourned the meeting.
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PRESIDENT