Minutes - Board - 2007-05-29COSTA MESA SANITARY DISTRICT
MINUTES OF SPECIAL MEETING
MAY 295 2007
The Costa Mesa Sanitary District held a Special Meeting at 6:00 p.m. on Tuesday, May 29,
2007 at 628 W. 19th Street, Costa Mesa.
Directors Present: Art Perry, Arlene Schafer, Bob Ooten, Gary Monahan, James Ferryman
Staff Present: Robin B. Harriers, Manager /District Engineer; Tom Fauth, Assistant
Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the
District; Sherry Kallab, Accountant; Marc Davis, Treasurer /Director of
Finance /CBIZ; Alan Burns, Legal Counsel
0 President Art Perry called the meeting to order at 6:00 p.m.
Proposed CMSD Fiscal Year 2007 -2008 Budget
Mr. Harriers explained the discussion of the 2007 -2008 budget sets the stage for the 5 -Year
Financial Plan as items in the forthcoming budget are also included in the plan for the next
five years. Mr. Harriers requested Treasurer Marc Davis present the preliminary budget for
Fiscal Year 2007 -08.
Mr. Davis reported the preliminary budget document represents a balanced budget that
requires an increase in the liquid waste charge with no change in the solid waste annual
charge.
Mr. Davis presented highlights of the Preliminary Budget, noting FY 2007 -08 will be the first
full year of the variable rate container program. Mr. Davis prepared the budget assuming
the District will receive 100% of the revenue in the 2007 -2008 fiscal year and the Board
concurred with this assumption.
The preliminary budget includes the addition of a Management Analyst position effective
October 1, 2007. This new position will be responsible for such functions as spill reporting,
website management, information systems database management, scheduling and making
presentations on vermicomposting and recycling and other roles in an effort to reduce
overtime. The total cost of the Management Analyst position for a period of 9 months for
the fiscal year is approximately $67,700 and on an annualized basis equates to
approximately $90,300.
Minutes of Special Meeting
May 29, 2007
Page 2
• The preliminary budget includes the addition of two Maintenance Worker positions effective
January 1, 2008. National Plant has been performing sewer televising, production and hot
spot cleaning of the entire sewer system. It is anticipated the entire District will be televised
and cleaned by June 30, 2008. The addition of a 2- person crew will reduce the amount of
overtime required by the Maintenance Supervisor and will provide assistants to cover
emergency response. The total cost of the 2 -persn crew for a period of six months of the
fiscal year is approximately $72,300 which equates to approximately $144,600 on an
annualized basis
With the transfer of the administration and maintenance of the trash containers to CR &R,
the District reduced its interest expense by approximately $44,000 as the container lease
was paid -off in FY 2006 -07.
There will not be an election expense in this fiscal year resulting in a reduction of expenses
of approximately $45,000.
The preliminary budget for equipment maintenance costs has increased approximately
$40,700 over the prior fiscal year. The increase represents the cost of acquiring two new
financial modules, accounts receivable and fixed assets, as well as an ad hoc reporting
module allowing the District to better track its receivables and to track its fixed assets in a
fashion acceptable to the auditors. Also included is the purchase of hardware and software
• for maintaining and using the DVDs produced as part of the televising of the sewer lines.
New capital improvement projects are proposed to increase $1,065,000 or 137.42 %. The
proposed projects represent the first year of the District's five -year capital improvement
program as well as inclusion of $100,000 for a sewer lateral program.
II. Proposed 5 -Year Sewer System Financial Master Plan
The 5 -Year Sewer System Financial Master Plan was discussed. The Capital Improvement
Program runs from Fiscal Year 2007 -2008 through Fiscal Year 2011 -2012 at a cost of
$1,840,000 for each fiscal year.
III. Potential Impact of Budget and, Sewer System Financial Master Plan on
Yearly Sewer and Trash Charges
Mr. Davis and the Board discussed the long term potential sewer rate increases and it is
forecasted that the five year rate increase structure will be 50 %, 7 %, 5 %, 5 %, and 5 %. The
trash collection program increases are dependent on yearly CPI changes and the rates of
other trash hauling entities in Orange County.
IV. Select Date for Sewer & Trash Public Hearing
• The date of Monday, August 6, 2007 at 6:00 p.m. was set for the Sewer and Trash Public
Hearing. Ms. Revak will reserve a room at the Neighborhood Community Center for the
public hearing. The postcard notification to the ratepayers will occur prior to June 22, 2007.
2
•.
•
Minutes of Special Meeting
May 29, 2007
V. Possible Change of Date for Regular July 2007 Board Meeting
Page 3
The Board and Staff agreed on a change of date for the July 2007 regular Board of
Directors Meeting as Vice President Schafer will be in Sacramento for CSDA meetings on
the regular meeting date. The July meeting will be held on Monday, July 9, 2007 at 6:30
p.m.
VI. Board Approval for Director Schafer to run for Three -Year Term as CSDA
Director
Director Arlene Schafer represents Region 6 of the California Special Districts
Association (CSDA) and her three -year term is expiring. Director Schafer has served on
the CSDA Board since August 2000. Each of CSDA's six regional divisions has three
seats on the Board and candidates must be affiliated with a member district located
within the geographic region they seek to represent. Directors are nominated and
elected by region.
Director Robert Ooten motioned to nominate Director Arlene Schafer as a candidate for
CSDA Director representing Region 6, Seat B. Director James Ferryman seconded the
motion. Motion carried 5 -0.
Ms. Revak will submit the nomination form and minute action to CSDA. Election ballots
will be mailed out by August 6, 2007 and must be returned and received in the mail by
CSDA no later than 5:00 p.m. on September 26, 2007. Successful candidates will be
notified after ballot counts and announced at CSDA's Annual Conference in Monterey
October 1 -4, 2007.
VII. Public Comments
No members of the public were present.
Director Robert Ooten informed the Board he is a life member of the Water Environment
Federation (WEF), with 35 years of service.
ADJOURNMENT
Director Perry adjourned the meeting at 7:52 p.m.
_Secretary-
President d"�
3