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Agenda Packets - Board - 2004-03-08r �S�SAFIIp,�� L 01 ... an Inbepenbent Special District Board of Directors Arlene Schafer Greg Woodside James Ferryman Art Perry Dan Worthington Staff Robin B. !-lancers Manager• District Engineer (949) 631 -1731 Thomas A. Fauth Assistant Manager (714) 754 -5043 NOTICE OF SPECIAL MEETING COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS MARCH 8, 2004 The Board of Directors of the Costa Mesa Sanitary District will meet on Monday, March 8, 2004 at 6:00 p.m., in Conference Room 5A at the Costa Mesa Civic Center, 77 Fair Drive, Costa Mesa, California to discuss the following matters related to the pending separation from the City of Costa Mesa. IV. Joan Revako rRc�AS £ Clerk of the District q (714) 754 -5087 ' A(SkL£i1�1Vi S�yuCD FaY G&CAw Z (714) 432- 1436ellsys3 Public Comments City's Response to the District's Draft City /District Agreement Resolution No. 2004 -680, Employer /Employee Relations Closed Session with Real Property Negotiators Pursuant to Government Code Section 54956.8: Property: 628 W. 19th Street, Costa Mesa, California Agency Negotiators May Include: Arlene Schafer, Jim Ferryman, Rob Harriers, Tom Fauth, Joan Revak Negotiating Parties: Cheong Lee Family LLC :3'3-o�' �� �W -0/00V Under Negotiation: SpAc£• �'1NN%Z• Price and Terms of Purchase Property: 1914 Meyer Place, Costa Mesa, California Agency Negotiators May Include: Arlene Schafer, Jim Ferryman, Mailing Address Rob Hamers, Tom Fauth, Joan Revak P O. Box 1200 AC Negotiating Parties: . A(O IAX• Bbk AWVP Costa Mesa, CA £, Gene LaBIanc \4LE 92628 -1200 Under Negotiation: 70F. SCHEOLF, . Price and Terms of Purchase 4C� N��A�k'kem. $146. V. Consider Employment Issues Street Address C"L" 77 Fair Drivee S£tT Treasurer's Analysis of Cost of City Services as Described in Costa Mesa, CA City's Proposal to Provide Technical Support Services 92626 -6520 (Finance and Field Crews) RArE P4yeleS QEUT - g£47 .TN AI;4/,O 417 Printed on Protecting our communitN's �eaf t� �N provibing solib waste anb sewer coffection services. Recvcled Paper costamesasanitarlJ' b istrlct.org �S' SANITY *` o, Costa Mesa Sanitaq District P. O. Box 1200 O F Costa Mesa, CA 92628 -1200 RAN E�� RETURN SERVICE REQUESTED t N O F] �NTIAL • F e COSTA MESA SANITARY DISTRICT SPECIAL MEETING B. Closed Session MARCH 8, 2004 PAGE 2 1. Pursuant to Government Code Section 54957.6 to review outside contractor rates and to give authority to its labor negotiator, the District Manager, to negotiate with the following officers /employees regarding salaries, salary schedules, compensation or related matters: District Treasurer, Assistant Manager, District Clerk, Permit Processing Specialists, Field Crew Members VI. Reconvene to Open Session Dated: March 4, 2004 ��L'V-Vrl Clerk of the District y �®� ®Printed on Protecting our community is health by providing solib waste anb sewer collection services. Recycled Paper costamesasanitarY bistrict.org 14 . x r4-a C March 4, 2004 CITY OF COSTA MESA CALIFORNIA 92628 -1200 P.O. BOX 1200 FROM THE OFFICE OF THE DIRECTOR OF FINANCE —CITY TREASURER Rob Harriers District Manager Costa Mesa Sanitary District 234 E. 17"' Street, #205 Costa. Mesa, CA 92627 -3855 Dear Rob: City staff has met and reviewed the first draft of the new City /District agreement. There were a number of proposed changes identified that need to be drafted into the proposed agreement. After reviewing the agreement, it was noted that there were several sections that need to be added.. Some of the language that may be proposed may impact upon other sections of the agreement and City's response to the existing language may change. Therefore, in addition to reviewing the changes noted herein, I am requesting that you or General Counsel to the District, Alan Burns, prepare proposed language for the following items: 1) Generally, it was noted that a "definition of terms" section needs to be added for purposes of clarity. Some terms appear to be used interchangeably and may create confilsion in terms of the intended meaning. 2) The proposed Attachment 1 and Attachment 2 are not attached to the draft agreement. As such, the City cannot make any comments regarding any information contained therein or with respect to any provisions in the proposed agreement referencing the attachments. It is proposed that "Attachment 2" as referenced in the draft agreement consist of the Cost Proposal to provide support services dated February 20, 2004, submitted by the Director of Finance to the District, subject to any amendments as identified herein. PHONE: (714)754.5243 • FAX: (714) 754 -5040 • TDD: (714) 754 -5244 • WWW.Ci.Costa- mBsa.Ca.Us r` 3) Reimbursements to the City for indirect costs for supervision of the field crew are proposed to be added to Attachment 2 consistent with the existing agreement between the parties. These costs are proposed as follows: Position Title Current Rate _Proposed Rate Public Services Director 2.5% 0.25% Executive Secretary 2.5% 0.5% Maintenance Services Mgr. 0.0% 0.5% Asst. Street Superintendent 25.0% 25.0% It should be noted that indirect costs for the Asst. Street Superintendent position have already been incorporated into the cost proposal. However, the percentage reimbursement rates need to be identified and referenced within the agreement. The proposed additional indirect costs associated with supervision of the field crew is $1,923.00. 4) The proposed new agreement between the City and the District outlines the contracting of the existing city maintenance employees to cover the "field services" needs of the District [section 5(a)(4)]. These services, as proposed, require five full time "field" positions, which are listed in the draft agreement. The District has indicated a desire to hire their own employees to provide field services as attrition occurs with the present city (contracted) field employees, either through retirement, transfer, resignation, etc. Of concern to the City in this regard is the possibility of having one District employee and one City employee on the same two - person crew for an extended period of time. This may present a situation whereby the line of supervisory control is not clear, and the evaluation of the crew's performance is not consistent from District to City. To alleviate this concern, the City suggests consideration of a clause in the agreement whereby, if an existing city field employee leaves the two person crew for whatever reason, the City will assimilate the remaining crew member back into City service. This will allow the District to hire two employees to meet the requirements of the two -man crew. Once the two District field employees are hired, the City would absorb the cost of the remaining crewmember without charge to the District. 5) Paragraph 6(a) as submitted to the City by the District in the draft agreement seems to suggest that the District has statutory powers over "small multifamily dwellings." It is unclear that the District has any jurisdiction over small multifamily dwellings and this reference has been removed from the draft agreement. 6) Paragraph 7 needs to be completely revised to reflect the protections currently provided to the City in the existing agreement for recycling. Currently the City is protected and indemnified, and the District will pay any fines imposed upon the City, if the District is found to be the cause, or partial cause, for the City being fined in the future for not meeting the requirements of AB939 (reference the eighth recital in this draft agreement). In addition, the relationship between the City and the District with respect to the Christmas tree recycling program needs to be redefined in this new agreement. 7) There are several "general" provisions that need to be drafted and added to the new agreement. Some of the general provisions that were noted are identified below: a. There should be provisions in the new agreement with respect to responsibility for attorney's fees and governing law in case of disputes. b. There does not appear to be a termination clause in the proposed agreement. The term of the proposed new agreement needs to be identified. Also, the termination clause needs to be incorporated into the proposed agreement together with proposed one -year notice requirements as written in the existing agreement between the parties. c. The City currently owns all "incidental office equipment" such as staplers, hole punches, calculators, etc. The District needs to specifically identify what incidental office equipment the District is proposing to assert ownership interest in. 8) The City reserves the right to revise, modify, or rescind any part of this proposal without prior notice should events or unforeseen circumstances warrant doing so. Once the draft agreement has been circulated, I will contact you to schedule a meeting between the City and District representatives to initiate fiirther detailed discussions with respect to the proposed new agreement and other changes proposed herein. In the meanwhile, feel free to call me if you have further questions. Thank you. Sincerely, arc R. Puckett Director of Finance Copy to: Allan. Roeder, City Manager Bill Morris, Director of Public Services Tom Wood, Acting City Attorney Lynda Nguyen, Deputy City Attorney Allan Burns, General Counsel, CMSD Attachment: Proposed Agreement AGREEMENT This Agreement is made and entered into this day of , 2004 by and between the COSTA MESA SANITARY DISTRICT, a California sanitary district (hereinafter "District ") and the CITY OF COSTA MESA, a municipality (hereinafter "City") with reference to the following facts. WHEREAS, District currently provides sewage collection and certain residential trash collection through its exclusive franchisee for area that is currently within the incorporated limits of the City, as well as for unincorporated areas and parts of Newport Beach; WHEREAS, eity was ineorporated in t953 and provides, through a permit system, for the licensing of trash collection by companies within the City on a non - exclusive basis, WHEREAS, City is primarily responsible for source reduction and recycling pursuant to the provisions of Public Resources Code Section 40000 d seq. but City and District have cooperated in ensuring compliance with that law and District has provided for various programs and contracts to provide for recycling and to provide for the documentation requested by the City to report to the State the percentages of waste reduction achieved; WHEREAS, City and District have cooperated with each other to accomplish these respective missions and to comply with State mandates; WHEREAS, pursuant to that cooperation the City and District have entered into a series of agreements for cooperation; WHEREAS, those agreements have included a 1955 agreement, as amended in 1978 and 1986, and by the present agreements between the parties which have superseded those agreements; WHEREAS, those present agreements include a December 9, 1993 agreement setting forth the City/District relationship, a Lease Agreement (hereinafter "Lease ") dated April 14, 1994 by and between the parties by which District leased space from the City in City Hall, and an agreement dated November 1, 1993 setting forth certain respective duties of the parties pursuant to the Integrated Waste Management Act of 1989 (Public Resources Code Section 40000 et seq., also popularly known as "AB 939 "); WHEREAS, it is the intention of the parties to supersede the above - mentioned agreements except as otherwise stated herein and to set forth the parties' ongoing rights and duties in this Agreement; WHEREAS, Government Code Section 6500 et seq. provides that two public agencies may 1 jointly exercise common powers and the parties hereto desire to do so; WHEREAS, the Sanitary District Act of 1923 (Health and Safety Code Section 6400 et seq.) provides, at Section 6517, that the District may employ and pay necessary agents and assistants and the District does hereby desire to do so; WHEREAS, Section 6497 provides that the District may establish a classified civil service system for its own employees and the District does hereby desire to have its own employees and to hire certain employees that are presently City employees and to provide for their wages and benefits; NOW, THEREFORE, the City and District do hereby desire to set forth a new agreement governing their respective rights and duties in the above matters and in such other matters as may be provided herein. The parties agree as follows: 1. nistrict Office Space / Terminntion of Cif Leas P. (a) District has determined to obtain its own office space and to terminate the lease with City which was originally entered into on April 14, 1994 and which was also referenced in the City/District Agreement dated December 9, 1993. District has given one year's notice to City as required by Section 10.0 -32 of said City/District agreement on May 29, 2003 to be effective on June 30, 2004 and has been working with City to cooperate in surrendering the City -owned premises in good condition. (b) City has agreed to allow District to remain as a hold -over if necessary on a month to month basis as provided in Section 15 of said Lease. District agrees to use all appropriate diligence to find a new office location and to cooperate with City in providing a smooth transition. District agrees to remain liable as provided under said previous Lease for any damages caused City by District's vacation of the premises or by the condition of the property at the time of surrender. (c) The parties agree that other than the above, there are no other remaining issues between the parties with respect to the Lease or any obligations thereunder. 2. Real Property. (a) All real property utilized by District pursuant to either the City/District Agreement or the Lease are confirmed as being the City's and District claims no interest in said real property except as provided hereafter. (b) All sanitary sewer lines and related appurtenances (including but not limited to pump stations, vaults, etc.) are hereby confirmed as being District's property along with such rights in the streets and other public right of ways or other City property to allow District to maintain and repair said lines and appurtenances. (c) The District agrees to compensate the City for use of facilities, storage, and maintenance of vehicles and equipment at the City's Corporation Yard as set forth in Attachment 2. 3. Personal Propertw, (a) The parties desire to set forth the respective property rights in personal property hereby. 2 (b) The parties agree that the District is the sole owner of its office equipment and other property as set forth in Attachment 1. (The City has not been provided Attachment 1 for review and therefore cannot make any comments as to whether the City is agreeable to any language contained therein). (c) The District also owns certain equipment used in field services as provided in a separate section of Attachment 1. (The City has not been provided Attachment l for review and therefore cannot make any comments as to whether the City is agreeable to any language contained therein). (d) The District also owns the pump hoist which is presently installed at the City Yard. The pump hoist is to remain at City Yard so long as District contracts with City for field crew services. (e) City is the current owner of all vehicles, equipment and supplies that are presently registered to City or for which City has ownership documents. it is the intent of the parties tit t and supplies used by the Bistriet sha4l be the property of the Distriet if listed as Such on t�e 4ibit but the parties further agree that the list is not rneant to be exclusive, but the parties'best attempt to memorialize the stattis of iterns of property that have been identified. (0 Upon termination of District's contraeting f6reityfield crew services, tile vehicles paid f6r by Distriet and the balance in the Vehicle Replaeernent Fund shall be ttimed over to Distrie . (g) Any extraordinary repair costs exceeding 10% of the value of the vehicles will be direct billed to the District. (h) The District agrees to compensate the City for vehicle and equipment rental charges as set forth in Attachment 2. 4. Employees. (a) District intends to hire the following present City employees; - Management Analyst (Tom Fauth) - Clerk of the District (Joan Revak) - Permit Processing Specialist (Debbie Bjornson) - Permit Processing Specialist (Denise Gilbert) (b) District intends to establish wages, benefits and working conditions for these employees that are generally comparable to existing benefits including membership in PERS and health benefits. Nothing herein provided shall prevent District from providing better different benefits for said employees, however. (c) District will establish other terms and conditions of employment for the above - listed employees and for other employees that may be different than for the employees listed in (a) above, but the above - listed employees shall be given generally comparable employment rights to those 3 presently provided by City. (d) Upon the establishment of the parameters of their job with the District and the extension of this Agreement, said employees shall be expected to voluntarily resign their positions with the City. The resignations are due to the anticipation that the City will no longer be providing contracted support services to the District for work functions perfonned by the individuals so designated. However, upon execution of this new agreement, and in the absence of receipt of written voluntary resignation notices from any of the abovementioned employees, the City will initiate layoff proceedings in accordance with the Memorandum of Understanding between the City and the Costa Mesa City Employees Association. 5. Contracted -For Services. District desires to continue to utilize the services of certain City officers and employees by contract as follows: (a) District Treasurer. District desires to retain the services of District Treasurer by contracting for the services of City's Treasurer/Finance Director (currently Marc Puckett). District desires to retain said services in light of the long - standing arrangement by which the City Treasurer has provided said services and in recognition of the outstanding knowledge of financial matters and services that the current incumbent has provided in conjunction with a wide range of financial mandates required by State law, the District's Operations Code and its investment polices. Accordingly, City and District agree that District may use the services of the City Treasurer/ Finance Director as follows: (1) Treasurer Duties. City agrees that the City Treasurer shall also serve as the District's Treasurer and shall provide such services and be subject to such duties as are prescribed by State law or the District's Operations Code or this Agreement. (2) BDnd. Treasurer agrees to maintain a bond in favor of the District guaranteeing Treasurer's honesty and fidelity to District as provided for in District's Operations Code. Said bond may be a blanket bond, at District's option, provided in any event the District shall pay for the cost of the bond or a proportionate share of the master bond as District may agree. (3) General Administration of Funds. District has determined to administer its own funds pursuant to the authority of Health and Safety Code Section 6801 and has charged the District Treasurer with the duties to administer, pay out, invest and otherwise be responsible for the handling of District's funds. The Treasurer shall be authorized to open and maintain accounts in institutional depositories qualifying pursuant to Government Code Sections 53530 through 53683. (4) Pyrnll and Other Routine Pa =ents. The Board may determine to retain a payroll or other bookkeeping type service to make routine payments subject to limited authority given by way of ordinance or resolution. (5) Investments. District Treasurer shall act as District's investment advisor and shall 4 develop and administer a long -range investment policy and a yearly Statement of Investment Policy in compliance with Government Code 53630 et seq. and Chapter 4.03 of the District Operations Code. (6) Financial Policies. District Treasurer shall provide advice on other District investment policies, including but not limited to those set forth in Chapter 4.40 of the District's Operations Code. District Treasurer shall provide yearly long range financial planning reports to the Board as part of the yearly rate - setting procedure. District Treasurer shall insure District meets the requirements of GASB Statement No. 34 or any other changes to reporting requirements. (7) Attendance at Meetings. District Treasurer shall attend meetings of the District as requested, including but not limited to the District Board meetings, Investment Oversight Committee meetings and staff meetings. (8) Compensation. For the above services, City shall be paid in accordance with Attachment 2. (The City has not been provided Attachment 2 for review and therefore cannot make any comments as to whether the City is agreeable to any language contained therein). (b) Field Services. District presently intends to contract for the services of the following City personnel who have previously served the District but who also have other City duties: - one senior lead maintenance worker - three senior maintenance workers - one senior maintenance technician Said field service personnel shall provide service to the District as requested by the Manager, Assistant Manager or such persons as they shall determine. Said field service shall generally consist of cleaning the entire sewer system on a yearly basis, maintaining the pumping stations in proper working order, providing reports and recommendations to the Manager for improving the sewer system, responding to sewer spills on public and private property, providing a liaison to property owners regarding private sewer lateral problems, working to reduce the number of sewer spills, and continue standby duty on a rotational basis. So long as District contracts with City for field crew services, the City's 24 -hour communications center shall be utilized for emergency notification to field crews and the District's telemetry system receiving unit shall remain in the City Communications Center. Payment for said services shall be in accordance with the rates set forth in Attachment 2. The City has not been provided Attachment 2 for review and therefore cannot make any comments as to whether we are agreeable to any language contained therein). 6. Franchise Status. (a) It is recognized by the parties that District has exercised its statutory state powers to award an exclusive franchise to an exclusive franchisee for trash collection 5 for all single- family residential dwellings and small multi-family utilizing curbside trash collection service within District and has exercised its authority to provide a sewer system to all structures within the District and required all such properties to connect to District's system. (b) It is further recognized by the parties that he- District has not imposed an exclusive franchise arrangement for other property that is not a single - family residential. but -twat eity has authorized colleetions of such trash f6r commercial, industrial and nmitiple f�trrify 7. Recychnn¢. The parties acknowledge that State law has imposed significant duties on City pursuant to the Integrated Waste Management Act of 1989 (Public Resources Code (PRC) Section 40000 et sett. District agrees to cooperate with City to enable City to account for and meet its obligations to reduce waste from entering the waste stream and to account for waste diverted, and intends to continue its education programs to encourage source reduction and recycling. City acknowledges that it has waived any obligation that might have existed for District to pay fees to implement the City's Source Reduction and Recycling Element, as set forth in City Resolution No. 93 -14, and as memorialized in an agreement between City and District dated November 1, 1993. 8. indemnification. (a) District shall protect, defend, indemnify and hold harmless City and its elected and appointed boards, officers, and employees from any and all claims, liabilities, expenses or damages of any nature, including attorney fees, for injury to or death of any person, and for injury to any property, including consequential damages of any nature resulting therefrom, arising out of or in any way connected with any intentional misfeasance or nonfeasance, or negligence in the performance of this Agreement by act or omission, by or on behalf of District. (b) City shall protect, defend, indemnify and hold harmless District and its elected and appointed boards, officers, and employees, from any and all claims, liabilities, expenses, or damages of any nature, including attorney fees, for injury to or death of any person, and for injury to any property, including consequential damages of any nature resulting therefrom, arising out of or in any way connected with any intentional misfeasance or nonfeasance, or negligence in the performance of this Agreement by act or omission, by or on behalf of City. 9. Cooperation. Each of the parties agrees, when and as requested by the other party, to execute and deliver to such party, any and all documents, deeds, releases or conveyances, necessary or convenient to show title or power or authority vested in accordance with this Agreement. 10. Waivers. No waiver by City or District of any provision hereof shall be deemed a waiver of any other provision hereof. 11. Prior Agreements. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all writings and oral negotiations. This Agreement may be modified only in writing, signed by the parties in interest at the time and will prevail over any inconsistent provision in any other contract document appurtenant hereto. 6 12. Seve -rah . The unenforceability, invalidity or illegality of any provision of this Agreement shall not render the other provisions hereof unenforceable, invalid or illegal. 13. Notices. Any demand, notice or declaration provided for under this Agreement shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed to the parties as set forth below: City of Costa Mesa Attention: eitymanager Public Services Director 77 Fair Drive Costa Mesa, California 92628 Costa Mesa Sanitary District Attention: District Clerk Costa Mesa, California 92628 In witness whereof, the parties have affixed their signatures below. City of Costa Mesa Approved As To Form Acting City Attorney 7 Costa Mesa Sanitary District Approved As To Form District Counsel City Manager Mayor ATTEST: City Clerk District Manager / Engineer President, Board of Directors Secretary, Board of Directors RESOLUTION NO. 2004 -680 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT RELATING TO EMPLOYER - EMPLOYEE RELATIONS WITHIN SAID DISTRICT WHEREAS,. Government Code Section 3507 provides for the adoption of rules and regulations for the purpose of promoting improved employer - employee relations between public employers and employees by establishing uniform and orderly methods of communication; and WHEREAS, the Costa Mesa Sanitary District desires to adopt such reasonable rules and regulations as authorized by law. NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District does hereby resolve as follows: Section 1. Title of Resolution. This resolution shall be known as the "Employer- Employee Relations Resolution of the Costa Mesa Sanitary District." Section 2. Statement of Purpose. The purpose of this resolution is to implement Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Section 3500 et seq.), captioned "Public Employee Organizations," by providing orderly procedures for the administration of employer - employee relations between the Costa Mesa Sanitary District (hereinafter "District ") and its employees and for resolving disputes regarding wages, hours and other terms and conditions of employment. This resolution is intended to establish uniform and orderly methods of communication between the District and its employees. Section 3. Definitions. As used in and for the purpose of this resolution, the following terms shall have the meanings indicated: 3.1. District shall mean the Costa Mesa Sanitary District. 3.2. Board shall mean the Board of Directors of the Costa Mesa Sanitary District, or any duly authorized representative. 3.3. Employee shall mean any person regularly employed by the District except elected officials. K 3.4. Employee, Confidential shall mean any employee who, in the regular course of his duties, has access to, or possesses information relating to decisions of District management affecting employer - employee relations. 3.5. Employee, Management shall mean employees having the responsibility for formulating and administering District policies and programs. 3.6. Employer - Employee Relations shall mean the relationship between the District and its employees and their employee organizations, or when used in a general sense, the relationship between management and employees or employee organizations. 3.7. Employee, Supervisory shall mean employees having authority to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward, or discipline other employees, or responsibly direct them, or to adjust their grievances, or effectively to recommend any of the foregoing actions, if, in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment. 3.8. Impasse shall mean a deadlock in the discussions between a recognized employee organization and the District over any matter concerning which they are required to meet and confer in good faith, or over the scope of such subject matter. 3.9. Mediation means the effort of an impartial third person functioning as an intermediary, to assist the parties in reaching a voluntary resolution to an impasse, through interpretation, suggestion and advice. 3.10. Meet and Confer in Good Faith shall mean the performance by duly authorized District representatives and duly authorized representatives of a recognized employee organization of their mutual obligation to meet at reasonable times and to confer in good faith in order to freely exchange information, opinions and proposals, and to endeavor to reach agreement on matters within the scope of representation. This does not compel either party to agree to a proposal or to make a concession. 3.11. District Employee Relations Representative shall mean the District's principal representative in all matters of employee - employer relations. 3.12. Recognition shall mean acknowledgment by the District Employee Relations Representative that an employee organization is the exclusive representative of all the employees in an appropriate unit, except employees in such unit who have elected to represent themselves. 3.13. Recognized Employee Organization shall mean an employee organization which has been granted recognition by the District Employee 2 Relations Representative and the employee organization which has the right to meet and confer in good faith as the exclusive organizational representative of all members of an appropriate unit except those embers in such unit who elect to represent themselves. 3.14. Scope of Representation shall mean all matters relating to employment conditions and employer - employee relations, including, but not limited to, wages, hours, and other terms and conditions of employment. District rights, as defined in Section 5 herein, are excluded from the scope of representation. Section 4. Employee Rights 4.1. Rights Enumerated. Employees shall have the following rights: (a) To form, join and participate in the activities of employee organizations of their own choosing for the purposes of representation on all matters of employee relations. (b) To refrain from joining or participating in the activities of employee organizations. (c) To represent themselves individually at any time in their employee relations. 4.2. Interference Prohibited. Neither the District, nor any employee organization, nor any employee, shall interfere with, intimidate, restrain, coerce, or discriminate against any employee or employees because of the rights guaranteed hereunder. 4.3. Management and confidential employees who are members of employee organizations which represent employees who are not management or confidential employees shall not represent such employee organizations on matters within the scope of representation. 4.4. Supervisory employees who are members of employee organizations which represent employees who are not supervisory employees shall not serve as representative of such organization in any stage of the grievance procedure. 4.5. Nothing herein shall be construed to give employees the right to strike, and any employee who, directly or indirectly, by any means whatsoever, encourages, causes or participates in any strike, walkout, stoppage, or retarding of work, or any other interference with the conduct of the District's operations, or who uses sick leave to accomplish said purposes, when such work relates to 3 essential governmental services, shall be subject to discharge or other disciplinary action in the sole discretion of the District. Section 5. District Rights 5.1. Rights Enumerated. Except as otherwise specifically provided in this resolution, or amendments or revisions thereto, the District has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following: (a) To determine the merits, necessity, nature or extent of services to be performed, as well as the right to determine and implement its public function and responsibility, and to determine budgets and appropriations of funds and to set fees and charges. (b) To manage all facilities and operations of the District, including the methods, means and personnel by which the District's operations are to be conducted. (c) To schedule working hours, allot and assign work. (d) To establish, modify or change work schedules or standards. (e) To direct the working forces, including the right to hire, promote, demote or transfer any employee. (f) To determine the location of all plants and facilities. (g) To determine the layout and the machinery, equipment or materials to be used. (h) To determine processes, techniques, methods and means of all operations, including changes or adjustments of any machinery or equipment. (i) To determine the size and composition of the working force. Q) To determine the policy and procedure affecting the selection or training of new employees. (k) To establish, assess and implement employee performance standards, including, but not limited to, quality and quantity standards; the assessment of employee performances; and the procedures for said assessment. in (1) To control and determine the use and location of District's property, material, machinery and equipment. (m) To schedule the operation of and to determine the number and duration of shifts. (n) To determine measures'to promote safety and to protect health and property. (o) To transfer work from one job to another or from one plant or unit to another. (p) To introduce new, improved, or different methods of operations, or to change existing methods. (q) To relieve employees from duty for lack of work or for other reasons deemed legitimate by management. (r) To reprimand, suspend, discharge or otherwise discipline employees. (s) To establish and determine job classifications. (t) To contract or subcontract construction, services, maintenance, distribution or any other work with outside public or private entities. (u) To take such other and further action as may be necessary to organize and operate the District in the most efficient and economical manner for the best interest of the public it serves. 5.2. District Representative Designated. The Board of Directors hereby designates the District Manager,. or his duly authorized representative, as the District principal representative in all matters of employer - employee relations, with authority to meet and confer in good faith on matters within the scope of representation. Section 6. Employee Organizations 6.1. Petition for Recognition - The Right to Meet and Confer In Good Faith. An employee organization that seeks recognition for the purpose of meeting and conferring in good faith as the representative of all the employees in an appropriate unit shall file a petition with the District Employee Relations Representative containing the following information and documentation: (a) Name and address of the employee organization (b) Names and titles of its officers 5 (c) Names of employee organization representatives who are authorized to speak on behalf of its members (d) A statement that the employee organization has, as one of its primary purposes, representing employee in their employment relations with the District (e) If applicable, a statement that the employee organization is a chapter or local of, or affiliated directly or indirectly in any manner with, a regional, state, national, or international organization and, if so, the name and address of each such regional, state national or international organization (f) Certified copies of the employee organization's constitution and by -laws (g) A designation of those persons, not exceeding two in number, and their mailing, fax and email addresses, to whom notice will be deemed sufficient notice on the employee organization for any purpose. (h) A statement that the employee organization recognizes that the provisions of Section 923 of the California Labor Code are not applicable to District employees, and that the organization does not and will not assert the right to call, engage in, encourage, assist or condone, in any manner, any strike, work stoppage, slow down, sick in, or other concerted refusal to work by employee of the District involving essential governmental services. (i) A statement that the employee organization has no restriction on membership based on race, color, creed, sex, age or national origin and does not discriminate against any legally protected group. (j) The job classifications or titles of employees in the unit claimed to be appropriate and the number of member employees therein. (k) A statement that the employee organization has in its possession written proof, dated within six months of the date upon which the petition is filed, to establish that a majority of the employees in the unit claimed to be appropriate, have designated the employee organization to represent all employees in such unit in their employment relations with the District. Such written proof shall be submitted for confirmation to the District Employee Relations Representative. (1) A request that the District Employee Relations Representative recognize the employee organization as the representative of all of the employees in the unit claimed to be appropriate for the purpose of meeting and conferring in goof faith on all matters within the scope of representation. 2 6.2. Upon the determination by the District Employee Relations Representative that an employee organization has complied with the requirements of 6.1 above and 6.6 below, he may grant recognition for purpose of meeting and conferring in good faith after determining the majority status of the petitioner by either: (a) Having a secret ballot election conducted by the State of California Conciliation Service, or (b) By any other reasonable method based upon written proof executed within the preceding six months. 6.3. Only one employee organization shall be granted recognition as the recognized employee organization, entitled to meet and confer in good faith within the scope of representation, for employees in an appropriate unit with the exception of self- represented employees. 6.4. Duration of Recognition. When an employee organization has been recognized, such recognition shall remain in effect until such time as the recognized employee organization is decertified or the appropriate unit represented by such recognized employee organization is modified, as provided in Section 7. 6.5. Restriction on Representation. No employee shall be represented by more than one recognized employee organization. 6.6. Appropriateness of Units. The District Employee Relations Representative, after reviewing the petition filed by an employee organization seeking recognition, shall determine whether the proposed unit is an appropriate unit.- The principal criterion in making this determination is whether there is a community of interest among such employees. The following factors among others, are to be considered in making such determination: (a) Which unit will assure employees the fullest freedom in the exercise of rights set forth under this resolution. (b) The history of employee relations in the unit, among other employees of the District and in similar public employment. (c) The effect of the unit on the efficient operation of the District and sound employer - employee relations. (d) The extent to which employees have common skills, working conditions, job duties or similar educational requirements. 7 (e) The effect on the existing classification structure of dividing a single classification among two or more units. Provided, however, no unit shall be established solely on the basis of the extent to which employees in the proposed unit have organized. Section 7. Decertification and Modification 7.1. Decertification of Recognized Employee Organizations. (a) A petition for decertification alleging that a recognized employee organization is no longer entitled to represent all of the employees in an appropriate unit may be filed with the District Employee Relations Representative. The petition for decertification may be filed by an employee, a group of employees or their representatives, or an employee organization. The petition, including all accompanying documents, shall be verified. It may be accompanied by a petition for recognition by a challenging organization. The petition for decertification shall contain the following information: (1) The name, address and telephone number of the petitioner and a designated representative authorized to receive notice or requests for further information. (2) The name of the recognized employee organization. (3) An allegation that the recognized employee organization is no longer entitled to represent all of the employees in the appropriate unit, and any other relevant and material facts. (4) Written proof that at least thirty percent of the employees in the unit do not desire to be represented by the recognized employee organization. Such written proof shall be dated within six months of the date upon which the petition is filed and shall be submitted for confirmation to the District Employee Relations Representative or to a mutually agreed upon disinterested third party. (b) When the District Employee Relations Representative determines that there has been compliance with the information requirements for the petition for recognition, he shall arrange for a secret ballot election to determine if the recognized employee organization shall retain its recognition. (c) Whenever less than thirty percent of the employees in an appropriate unit have authorized dues checkoff, the District Employee Relations Representative may call a secret ballot election. (d) The District Employee Relations Representative shall revoke the recognition of a recognized employee organization which has been found by secret ballot election to be no longer entitled to represent all employees in an appropriate unit. 7.2. Modification of Established Unit. A petition for modification of an established unit may be filed by an employee organization with the District Employee Relations Representative during the same period for filing a petition for decertification, and such petition for modification shall contain the following information: (a) The name, address and telephone number of the petitioner and a designated representative authorized to receive notices or requests for further information. (b) The name of the recognized employee organization that currently represents the employees in the established unit. (c) An allegation that the established unit is no longer appropriate and all relevant employees in support of such allegations. (d) Written proof that at least thirty percent of the employees within the proposed unit have designated the petitioning employee organization to represent them in their employment relations with the District. The District Employee Relations Representative shall determine the appropriate unit which may be the existing, the proposed- modified unit, or some other appropriate unit. After the District Employee Relations Representative determines the appropriate unit arising out of the operation of this section, he shall then follow the procedures set forth in Section 6.1 for determining recognition rights in such unit. Section 8. Election Rules 8.1. There shall be no more than one election in any one unit in any twelve month period. 8.2. In any election held pursuant to this resolution, the result thereof shall be determined by a majority of all employees in the unit eligible to vote in such election. W Section 9. Memorandum of Agreement 9.1. Memorandum of Agreement - Terms and Conditions. All matters of employer- employee relations within the scope of representation for all employees in any unit represented by a recognized employee organization, or any individual employee representing himself, shall remain the same for year to year unless on or before September 1 of the calendar year, and September 1 of each calendar year thereafter, proposals in writing identifying the areas within the scope of representation to be covered in negotiations are filed with the District Employee Relations Representative by such recognized employee organizations, or such individual employee. 9.2. Approval. If agreement is reached by and between the District Employee Relations Representative and the recognized employee organization, on matters within the scope of representation, they shall jointly prepare a written memorandum of agreement, which hall then be submitted to the Board of Directors. Said agreement shall not be binding, nor of any force or effect, unless and until approved by the Board of Directors. Section 10. Impasse 10.1. If, after a reasonable period of time, the District Employee Relations Representative and the representatives of the recognized employee organization have exhausted all possible means of reaching agreement, either party may, by written communication to the other, request mediation. Within ten calendar days after receipt of the State Conciliation Service to appoint a mediator. If the mediator is unable to resolve the impasse, al unresolved issues shall be submitted to the Board of Directors which retains the right and responsibility of final decisions regarding wages, fringe benefits, hours, and all other terms and conditions of employment. Section 11. Notice 11.1. Except in cases of emergency, the District shall give reasonable, written notice to each recognized employee organization of any ordinance, rule, resolution or regulation directly relating to matters within the scope of representation proposed to be adopted by the District and shall provide such recognized employee organization the opportunity to meet with the District. In cases of emergency when the District determines that an ordinance, rule, resolution or regulation must be adopted immediately without prior notice or meeting with recognized employee organizations, the District shall provide opportunity to meet at the earliest practicable time following the adopting of such ordinance, rule, resolution or regulation. 10 1 Section 12. Peaceful Performance 12.1. Any employee organization which, directly or indirectly, by any means whatsoever, engages in, induces, condones or encourages any employee to engage in a strike, sick in, walkout, stoppage, or retarding work, or any other interference with the conduct of the District's essential governmental operations, shall lose all rights hereunder, including but not limited to, suspension or revocation of recognition, cancellation of payroll deductions, prohibition of access to work or duty stations and bulletin boards. Section 13. Construction 13.1. The Board of Directors may adopt such rules and regulations necessary or convenient to implement the provisions of this resolution and of Chapter 10, Division 4, Title 1 of Government Code (Section 3507) of the State of California. Nothing in this resolution shall be construed to deny any person or employee any rights granted by federal or state law. The rights, powers and authority of the Board of Directors in all matters, including the right to maintain any legal action, shall not be modified or restricted by this resolution. 13.2. If any provision or portion thereof contained in this resolution, or the application thereof, to any person or circumstance is held to be unconstitutional, invalid, or unenforceable, the remainder of this resolution and the application of such provision, or portion thereof, to other persons or circumstances shall be deemed severable, shall not be affected, and shall remain in full force and effect. 13.3. The provisions of this resolution shall supersede and take precedence over the provisions of any prior resolutions, minute orders or statements of policy by the Board of Directors of the Costa Mesa Sanitary District dealing with the same subjects and matters as are covered herein. 13.4. Wherever written notice is required by this resolution, such notice shall be deemed to have been received on the day immediately following the day on which it was mailed (excluding Saturdays, Sundays, and holidays on which the offices of the District are closed) provided the same was sent first class or certified mail, postage prepaid to the District at its main address of 628 W. 19TH Street, Costa Mesa, California 92627 -2716, and to any employee organization at its last address furnished to the District, provided that if facsimile or email addresses are available, that communication via those channels is also used. PASSED AND ADOPTED by the Board of Directors of the Costa Mesa Sanitary District at a regular meeting thereof held on the day of 2004. President Secretary 12 STATE OF CALIFORNIA) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, Joan Revak, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2004 -680, was duly and regularly passed and adopted by said Board of Directors at a special meeting thereof held on the day of 2004. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this day of 2004. Clerk of the Costa Mesa Sanitary District 13 fr 03/08/2004 CMSD COST COMPARISON HYDROJET DATA SHEET CMSD BURDENED RATES JUSTIFICATION - 72% RATE (= 31 %Benefits + 26 % Material + 15% Indirect Costs) RESOURCE/POSITION Annual 7m-onthly Hourly Vector Truck Rental Rate (403A) ** S 26,227.00 $ 2,185.58 Insurance, Admin, Other OverHead (41%) 10,753.07 $ 896.09 $ 6.17 Weighted Maint Services, Per 2/20/04 Finance Wksht, Schedule 5 $ 29,448.20 $ 2,454.02 $ 14.16 $ 31.94 Pickup Truck Rental Rate (3998) "' 1 $ 14,405.00 $ 1,200.42 $ 6.93 Insurance, Admin, Other OverHead (41X) $ 5,906.05 $ 492.17 $ 2.84 Weighted Maint Services, Per 2/20/04 Finance Wksht, Schedule 5 $ 16,174.22 $ 1,347.85 $ 7.78 $ 9.76 Vector Truck Rental Rate (397B) - $ 16,508.00 $ 1,375.67 $ 7.94 _ Insurance, Admin, Other OverHead (41X) $ 6,768.28 $ 564.02 $ 3.25 Weighted Maint Services, Per 2120104 Finance Wksht, Schedule 5 $ 18,535.51 $ 1,544.63 $ 8.91 $ 11.19 Maintenance Supervisor with benefits(31 %)* $ 87,127.67 $ 7,260.64 $ 41.89 Other Admin O/H (41 %) $ 35,722.34 $ 2,976.86 $ 17.17 $ 59.06 Sr Maint Worker Rate with benefits(31 %)* $ 61,492.77 $ 5,124.40 $ 29.56 Other Admin O/H (41 %) $ 25,212.04 $ 2,101.00 $ 12.12 $ 41.69 CMSD Management - Manager /Engineer /Asst Mgr /Inspector $ 70.00 Other Admin O/H (72 %) $ 50.40 $ 120.40 Asst Street Superintendent $ 24,840.25 $ 2,070.02 $ 11.94 Other Admin O/H (41 %) $ 10,184.50 $ 848.71 $ 4.90 $ 16.84 Maintenance Services @ 7.58% * $886,103 = $67,166 Annually $ 3,008.68 $ 250.72 $ IIA5 $ 1.45 less 403A less 399B less 3978 Per 2/20/04 Finance Worksheet, Schedule 5 5.25/9.25 of cost for Burdened Payroll Coord ($5576.89 ) + $ 11,194.03 $ 932.84 $ 5.38 $ 5.38 Warehouse Gen Aide II ($428.28) +Warehouse Storekeeper($466.05)+ Accounting Supervisor($9678.39)+ Budget Anat st $1445.63 Bud et Research Officer($2127.57 TOTALS TOTALS, Not including CMSD Mgt $ 403,507.61 $ 33,626.63 193.99 $ 297.71 TIONS: 4.2 weeks/month lude fuel, maint, repair, replacement costs, per 02/03 rental rates) 75,416.00 Internal Rent Charges, Sched 4 data obtained from Finance Worksheet, 2 -20-04, Schedule 4 $ 193.99 t 67,166.61 ION SUMMARY: L _ s/day, 10 hour day, 1 crews, yields 40 mins /MH verage Production Clean Assuming 7000FVDRY hour) * (1/2 hourlweek) * (4.2 weeks/month) $ 407.39 inear cleaning cost = cost/foot/month, assuming 7000 ft/day $ 0.06 ($193.99/hr) * (8hrs) / (7000feet) $ 0.22 per ft B. Low Average Production Cleanirg Assuming 4000Ft/Day ($193.99/hour) * (112 hourhmak) * (4.2 weeks/month) $ 407.39 Monthly Linear cleaning cost = cost/foot/month, assuming 4000 It/day $ 0.10 ($193.99/hr) * (8hrs) / (4000feet) $ 0.39 per ft Monthly Cost to hydroW @ 1.25hrs 193.99/hour) * (1.26 hour/week) • (4.2 $ 1,018.47 /mo st does not include CMSD ) y Linear cleaning cost = oost/foot/month. assuming 2200 feet $ 0.46 /ft/mo cludes 1.25 twurs/event VM.nth][y Cost to hydroW at 2 hours per event $ 1,629.55 /mo PROPOSED CMSD HOURLY BURDENED RATES: Hourly Rate Vactor Truck Pick Up Truck Supervisor Maintenance Worker (Crewman) Assistant Street Superintendent Management Personnel $ 31.94 $ 9.76 $ 59,06 $ 41.69 $ 16.84 $ 120.40 Total With 1 Mgt Personnel $ 279.69 Option STRAIGHT TIME, NORMAL BUSINESS HOURS, 0600 -1600, M-F 1 Vactor & One Crewman $ 73.62 2 Vactor & Two Crewmen & Superintendent $ 132.15 3 Supervisor & PickUp Truck I $ 68.83 03/08/20°4 CMSD COST COMPARISON HYDROJET DATA SHEET 4 1 +3 $ 142.45 - 5 2 +3 $ 200.97 61+1 $ 147.24 71 +2 $ 205.77 8 2 +2 $ 247.45 9 3 +7 $ 274.59 1013+8 1 $ 316.28 Option OVERTIME, BEYOND NORMAL BUSINESS HOURS, 1600 -0600, M-F AND SAT-SUN (RATE = 1.5 . STRAIGHT TIME) 1 Vactor & One Crewman $ 110.43 2 Vactor & Two Crewmen $ 198.22 3 Supervisor & PickUp Truck $ 103.24 4 1 +3 $ 213.67 5 2 +3 $ 301.46 61 +1 $ 220.87 7 1 +2 $ 308.65 8 2 +2 $ 371.18 93+7 $ 411.89 10 3+8 $ 474.42 Option HOLIDAY PAY (RATE = 2 * STRAIGHT TIME) 1 Vactor & One Crewman $ 147.24 2 Vactor & Two Crewmen $ 264.29 3 Supervisor & PickUp Truck $ 137.65 41 +3 $ 284.90 5 2 +3 $ 401.95 6 1 +1 $ 294.49 7 1 +2 $ 411.53 8 2 +2 $ 494.90 9 3 +7 $ 549.19 1013+8 1 $ 632.56 Invoicing Char e=5% added to Total REVAK, JOAN From: Rob Hamers [robh2 @cox.net] Sent: Friday, March 05, 2004 4:47 AM To: Marc Puckett Cc: Alan Burns; Tom Fauth; Joan Revak Subject: City /District Agreement Marc, Thank you for your cover letter dated March 4, 2004 accompanied by a marked up copy of the City /District Agreement prepared by Alan Burns: Will you please have answers to the following questions for Monday's special , .(,-LZU UVE (rF R&Po/0Z4/ir. meeting at 6 PM: 1. During a meeting with Allan Roeder, Bill Morris, and Rob Homers, Allan stated he had no problem with City field crew members working along side of CMSD field crew members so long as the job positions and salary structures were relatively equal. As stated in paragraph four of your letter, it appears the City has changed it's opinion on this issue. Will you please confirm this position. 2. Alan can respond to the District's statutory authority for trash collection for small multifamily dwellings. Alan has provided many legal opinions regarding overlapping jurisdictions and the issue is rather clear from the District's standpoint. Will you provide a basis for the City's opinion that the District does not have this authority. PF/h /I LAIV . ot,hvs 3. The District has been paying 100% of the on going and replacement costs of the vehicles used in the sewer maintenance program, except for a small percentage of one of the vactor trucks that is used for cleaning storm drains What is the reasoning that the City believes the District is not entitled to the vehicles or the replacement funds upon separation of the District and the City.' Thank you, Rob Homers 9&vr,q .. Ck wzX -TV -ft F- • )'J'rR -<f7 ,,