Minutes - Board - 2006-05-04 (2)M
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COSTA MESA SANITARY DISTRICT
MINUTES OF SPECIAL MEETING
MAY 49 2006
The Costa Mesa Sanitary District held a Special Meeting at 6:00 p. m. on May 4 at 628
W. 19th Street, Costa Mesa.
Directors Present: James, Ferryman, Greg Woodside, Art Perry, Arlene Schafer,
Dan Worthington
Staff Present: Robin B. Hamers, Manager /District Engineer; Tom Fauth, Assistant
Manager; Joan Revak, Board Secretary/Program Manager /Clerk of
the District; Sherry Kallab, Accountant; Wendy Davis, Treasurer;
Alan Burns, General Counsel
Others Present: David Ronnenberg Dean A. Ruff ridge
President, CR &R Senior Vice President, CR &R
11292 Western Avenue Solid Waste
Stanton, CA 90680
President Ferryman called the meeting to order at 6:00 p. m.
Director Worthington led the Pledge of Allegiance.
Director Woodside gave the Invocation.
CONSIDER SUPPORT FOR CONSTITUTIONAL AMENDMENT PROTECTING
PROPERTY TAX AND RESERVES
A Resolution supporting protection of local revenues and reserves dedicated to
funding and developing infrastructure was presented. Director Woodside moved to
adopt Resolution No. 2006 -721, A Resolution of the Costa Mesa Sanitary District
Board of Directors Supporting Protection of Local Revenues and Reserves
Dedicated to Funding and Developing Infrastructure. Director Schafer seconded.
Motion passed 5 -0.
TRASH COLLECTION PROGRAM
Mr. Hamers presented an overview of a District Staff Meeting with David
Ronnenberg and Dean Ruffridge of CR &R held on May 3, 2006. Mr. Hamers
Minutes of Special Meeting
May 4, 2006
Page 2
reported on the efforts by CR &R and District Staff to lower or hold stable the •
existing trash collection rates.
1. CR &R offered to purchase the standardized containers for $1,136,000
and take over payments for the remaining containers.
2. CR &R offered to forego the 2006 -2007 CPI increase for both Costa
Mesa Disposal in the amount of $70,315 and CR Transfer in the amount
of $54,185.
3. In conjunction with items 1 and 2, Staff believes the District can
accomplish one of its goals of instituting a variable rate structure while
increasing revenue. The proposal is to continue to charge residents on
the property tax roll and establish a base rate for two containers. The
base rate would be billed by CMSD on the property tax bill as is
presently done. The additional containers would be billed to the resident
directly by CR &R. CR &R would handle all aspects of the administration
of charging for additional containers, however, the funds derived from
the program would be the property of the District. A fair price is
considered to be $6.00 per month for each additional container. There
are almost 5,000 containers above two containers per property in use.
Staff proposes the funds be used to establish a rate stabilization fund •
which could pay for extraordinary fuel cost increases. CR &R plans to
institute a field inventory to determine the number of cans at each
residence.
With regard to pass- through increases proposed by CR &R, Mr. Harriers
recommended extraordinary increases in fuel costs be considered by the Board
but not increases in processing costs or labor costs. Because of the proposal by
CR &R of purchasing the standardized containers, both Mr. Hamers and Mr.
Ruff ridge agreed that the length of the amended contract be approximately ten
years.
Mr. Hamers stated these are the highlights of the plan and recommended the
Treasurer project out future trash rates for review by the Board. After discussion,
the Board directed Staff to prepare contract language in accordance with the
above for review by the Board at the next Special Meeting on May 25, 2006
SEWER PROGRAM
Mr. Hamers presented Revision 1 to the Draft of the 2006 -2007 Capital
Improvement Program and noted the sewer program is pared down to include
more maintenance and operational projects than capital improvements. The
District is funding for the Fats, Oils and Grease (FOG) program, televising sewer
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May 4, 2006
• lines and additional WDR requirements, and a sewer rate increase is necessary.
Additionally, sewer construction costs are escalating and increases are warranted.
Further, the District needs a yard and a vactor truck for pump station maintenance.
Presently, Staff is investigating the viability purchasing property located at the
corner of Fairview and Wilson for a District Yard.
Director Woodside left the meeting at 6:58 p.m.
The Board of Directors gave direction to CMSD Staff to provide a 3 -5 year horizon
for sewer rates with options of rate increases varying from 12% to 20% per year.
VIII. PUBLIC COMMENTS
There were no public comments.
Vill. ADJOURNMENT
The meeting was adjourned at 7:02 p.m.
• Secretary
President