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Agenda Packets - Board - 2004-05-10'WSAI;1 4,9 -r 0S a � � e, . .its District 40" ,eo$���o��°°' ... an Independent Special District 11 1=11, W Arlene Schafer President Greg Woodside Vice President Art Perry Director Jim Ferryman Secretary Dan Worthington Director �c,r"dtFr k t ,-.Public Comments. Any member of the public may address the Board. `Speakers on, agenda items should'identify themselves to the Clerk before the meeting so that their input can be provided', at the time the, item is considered. Speakers on non- agenda items will be heard under Public Comments. 'Pursuant to 'State law, the Board, may not discuss or take action on non- agenda items except under special circumstances.. Speakers must limit their remarks to three minutes or as decided, upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. In compliance.with ADA, contact Joan Revak, (714) 754- 5087„ 4,8 hours prior to meeting if assistance is needed. (28 CFR.35.102.35.104 ADA Title II). • Regular Meeting - Monday, May 10, 2004 RECOMMENDED ACTION I. CALL TO ORDER — 6:00 p.m. — Conference Room 5A - Costa Mesa City Hall II. PLEDGE OF ALLEGIANCE — Director Perry III. INVOCATION — Director Woodside IV. ROLL CALL V. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to be routine and will be enacted in one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless member's of the Board request specific items to be removed from the Consent Calendar for discussion, in which event the item will be removed from the Consent Calendar and considered in its normal sequence on the agenda. Reports Minute Approval • 1. Recycling Committee —April 6, 2004 2. Investment Oversight Committee — April 8, 2004 Protecting our community's Health ' VY providing solid waste and sewer collection services. costamesasanitarydistrict.org Costa Mesa Sanitaq District May 10, 2004 AGENDA Page 2 • RECOMMENDED ACTION 3. Regular Meeting — April 8, 2004 4. Special Meeting —April 14, 2004 Manager's Reports 5. Refunds Approve 6. Occupancy Report and payment to Costa Mesa Disposal — May 2004 Approve 7. Monthly Spill Report to Regional Water Quality Control Board (RWQCB) Receive and File Engineer's Reports 8. Project Status Report Receive and File Treasurer's Reports 9. Financial Report as of April 30, 2004 Accept Report 10. Report of Monies on Deposit as of April 30, 2004 Receive and File . 11. Warrant Register for May 2004 in the amount of $451,772.59 Approve Payment 12. Directors' Compensation and Reimbursement of Expenses for the Ratify Expenses Month of April 2004 -------------------------------------- - - - - -- -END OF CONSENT CALENDAR------------------------------------- - - - - -- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Anti - Scavenging and Screening of Trash Containers Enforcement Reports Consider B. CMSD Strategic Plan 1. Year 2003/2004 Action Items Receive and File 2. Separation of District from City Aftm I`lo o q Ak91x.v;- Consider Response from N CONCV7 City & Set 3 Special Meeting Dates a. CalPERS Resolution of Intention Adopt Resolution Protecting our community's health by providing solid waste and sewer coffection services. costamesasanitarydstrict.org to Mesa Samtaq Dstuict May 10, 2004 AGENDA Page 3 RECOMMENDED ACTION C. Recycling Reports 1. Waste Diversion Report — March 2004 Receive and File 2, Waste Diversion Report —April 2004 Receive and File A i D. Contract Payment to CR Transfer for recycling services and disposal 1. Payment for April 2004 Services Approve Subject to Verification of Diversion Report by Staff E. Costa Mesa Disposal Request for Fully- Automated Service and Update and Consider Presentation of Master Plan Special Meeting F. Closed Session with Real Property Negotiators Pursuant to Government Code Section 54956.8: Property: 1914 Meyer Place, Costa Mesa, California Agency Negotiators May Include: Arlene Schafer, Jim Ferryman, Rob Hamers, Tom Fauth, Joan Revak Negotiating Parties: Gene LaBlanc Under Negotiation: Price and Terms of Purchase G. New District Headquarters — 628 W. 19th Street 4 1. Resolution No. 2004 -681, Confirming and Ratifying Purchase of Adopt esolution Property Located at 628 West 19 Street 2. Update and Approval of Improvements a. Purchase of Furniture Authorize, Ratify & Execute Agreements 4 H. Public Safety Emergency Services Expo — Sunday, May 16, 2004 Consider I. Orange County IWMD Proposed Amendment to Waste Disposal Agreement Approve & Execute Amendment No. 1 J. Recycling Committee — Wednesday, May 5, 2004 — 9:00 a.m., CR -1A (Directors Worthington and Woodside) 1. Strategic Planning 2003 -2004 - Public Outreach — Classroom Update on Schedule Recycling Projects • Protecting our community's health by providing solid waste and sewer collection services. costamesasanitarydistrict. org Costa Mesa Sanitary D stylct May 10, 2004 AGENDA Page 4 RECOMMENDED ACTION IX. ENGINEER'S REPORTS A. Waste Discharge Requirements (WDR) 1. General Update Verbal Report from Manager and Attorney B. CMSD 19th Street Sewer Construction and City Rehabilitation of Accept Report 19th Street and Placentia Avenue X. TREASURER'S REPORTS XI. ATTORNEY'S REPORTS A. Ordinance No. 45, Providing Purchasing Authority for an Adopt rdinance Independent Purchasing System XII. LOCAL MEETINGS A. Orange County Sanitation District (OCSD) 1. Regular Meeting — April 28, 2004 (Director Ferryman) Accept Report B. Independent Special Districts of Orange County (ISDOC) 1. Quarterly Meeting — April 29, 2004 Accept Report C. Local Agency Formation Commission ( LAFCO) Consider 1. Proposed Budget for FY 2004 - 2005 /Projected Special Accept Report District Contributions 2. Reelection of Director Schafer to LAFCO Commission Accept Report D. California Special Districts Association (CSDA) Accept Report E. California Association of Sanitation Agencies (CASA) 1. 2004 Spring Conference — April 29 -May 1, 2004 Accept Report Lake Tahoe (Director Worthington) XIII. OLD BUSINESS U A. June 10, 2004, 4:00 p.m. Meeting at Costa Mesa Historical Society Confirm Protecting our community's health by providing solid waste and sewer collection services. costamesasanitarydstrict.o B Cost. Mesa Sanitaq District May 10, 2004 AGENDA Page 5 RECOMMENDED ACTION XIV. NEW BUSINESS A. November 2, 2004 Election — Board of Directors Accept Report B. CostaMazing: Dining Through the Decades — Friday, June 25, 2004 Consider XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT • r� U 40 17-?.a Protecting our community's health by providing solid waste andsewer collection services. costamesasanitarydistrict.org • • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING APRIL 6, 2004 The Costa Mesa Sanitary District Recycling Committee met at 9:00 a.m. in conference room 1 A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Dan Worthington Staff Present: Rob Hamers, Tom Fauth, Joan Revak, Bobby Young Director Worthington called the meeting to order at 9:00 a. m. STRATEGIC PLANNING 2004 — PUBLIC OUTREACH — CLASSROOM RECYCLING PROJECTS Director Worthington reported a Recycling and Magic Presentation was held at St. Joachim Elementary School for March 22, 2004. Presentations are scheduled at Rea Elementary and Kaiser Elementary Schools. Ms. Revak presented a copy of the Excellence in Education Award to be presented to teachers participating in the District's Recycling Education Program. PUBLIC COMMENTS There were no public comments. The meeting was adjourned at 9:34 a.m. Secretary President Protectirt� our cvmtrtunity's health Gy providing solitf waste and sewer collection services. costamesasaiti tarytfistric t. o ig SANIrq,�`I h V r y • ycORPOanc� °`� COSTA MESA SANITARY DISTRICT MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING APRIL 8, 2004 CALL TO ORDER The meeting was called to order at 5:30 p.m. by Director Schafer. ROLL CALL Committee Members Present: Mr. Rob Hamers, District Manager Director Jim Ferryman (rotating committee member) Director Art Perry (rotating committee member) Committee Members Absent: None Staff Members Present: Ms. Joan Revak, Clerk of the District Mr. Marc Puckett, Treasurer Mr. Bobby Young, Accounting Supervisor TREASURER'S REPORT FOR THE MONTH AND QUARTER ENDED MARCH 31, 2004 NEW BUSINESS OPEN- DISCUSSION ADJOURNMENT Approved by: Mr. Puckett presented the Treasurer's Report and discussed the recent investing activity of the District. Discussion followed. CMSD FINANCIAL STATEMENTS Mr. Puckett indicated that this is a standing agenda item and presented the financial statements for detailed discussion if there were questions. Discussion followed. There were no items discussed under open discussion The meeting adjourned at 5:58 p.m. Secretary, Costa Mesa Sanitary District Board of Directors President, Costa Mesa Sanitary District Board of Directors I 1�1 C: n! COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 8, 2004 The Board of Directors of the Costa Mesa CALL TO ORDER Sanitary District met in regular session on April 8, 2004, at 6:00 p.m. in Room 1 -A of the Civic Center, 77 Fair Drive, Costa Mesa. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: President Schafer called the meeting to order at 6:00 p.m. Director Perry led the Pledge of Allegiance Director Woodside gave the invocation. Arlene Schafer, Greg Woodside, Art Perry, James Ferryman, Dan Worthington None STAFF PRESENT: Robin Hamers, Manager /Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Clerk of the District; Marc Puckett, Treasurer; Bobby Young, Finance; Ron Shef, District Ordinance Enforcement Officer; Debbie Bjornson, Permit Processing Specialist; Denise Gilbert, Permit Processing Specialist OTHERS PRESENT: Director Mike Healey, Mesa Consolidated Water District 0 President Schafer welcomed Mike Healey, Mesa Consolidated Water District. COSTA MESA SANITARY DISTRICT �? MINUTES OF BOARD OF DIRECTORS REGULAR MEETING -r APRIL 8, 2004 PAGE 2 0 . ............................... CONSENT CALENDAR . ............................... Director Ferryman motioned to approve the Consent Calendar as presented. Director Worthington seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Special The Minutes of the Special Meeting of March 8, Meeting, 2004, were approved as distributed. March 8, 2004 Minutes of Recycling The Minutes of the Recycling Committee Meeting Committee Meeting, of March 9, 2004, were approved as distributed. March 9, 2004 Minutes of Regular The Minutes of the Regular Meeting of March 11, Meeting, 2004, were approved as distributed. March 11, 2004 Minutes of Special The Minutes of the Special Meeting of March 29, Meeting, 2004, were approved as distributed. March 29, 2004 MANAGER'S REPORTS Refunds There were no refunds submitted for March 2004. Occupancy Report and The Trash Occupancy Count documented an Payment of $182,088.78 increase of 22 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of April 1, 2004. April 2004 Therefore, the total for April is 21,100. Board directed Staff to prepare a warrant for $182,088.78 to Costa Mesa Disposal on May 1, 2004, for payment for April trash collection based on the April count of 21,100. Monthly Spill Report to The Monthly Spill Report to the Regional Water t Regional Water Quality Quality Control Board (RWQCB) for March 2004 Control Board (RWQCB) was accepted as submitted. s COSTA MESA SANITARY DISTRICT u _ MINUTES OF BOARD OF DIRECTORS REGULAR MEETING 1 r APRIL 8, 2004 • - PAGE 3 Minutes of Safety /Loss The Minutes of the Safety /Loss Control Meeting of Control Meeting March 23, 2004, were approved as distributed. March 23, 2004 ENGINEER'S REPORTS Project Status Report The Project Status Report dated April 2004, was accepted as submitted. TREASURER'S REPORTS Financial Report as of The Financial Report as of March 31, 2004, was March 31, 2004 accepted as submitted. Report of Monies on The Report of Monies on Deposit as of March 31, Deposit as of 2004, was received and filed. March 31, 2004 Warrant 2004 -10 for April Warrant Resolution #CMSD 2004 -10 was 2004 in the amount of approved, authorizing the President and Secretary $454,257.80 to sign the warrant and instructing the Treasurer to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $454,257.80. Directors Expenses for the Director Expenses for the Month of March 2004 Month of March 2004 were ratified as follows: Director Ferryman: $1020.00 Director Perry: $850.00 President Schafer: 1020.00 + $14.75 Vice President Woodside: $510.00 Director Worthington: $1020.00 .......................... END OF CONSENT CALENDAR ...............•••••...... WRITTEN COMMUNICATIONS Ms. Revak reported receiving letters from Sonora School and Whittier Elementary thanking the Costa Mesa Sanitary District for the monetary award for participation in the Telephone Book Recycling Program. • COSTA MESA SANITARY DISTRICT 4 MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 8, 2004 PAGE 4 • Ms. Revak received a correspondence from St. Jude's Ranch for Children thanking the District for their donation of greeting cards to the children's program. St. Jude's Ranch is still accepting greeting cards, although the cost of the program exceeds the income from the card sales. Discussion was held regarding the possibility of promoting the sale of the cards. PUBLIC COMMENTS There were no public comments made. MANAGER'S REPORTS ANTI - SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT REPORTS POLICE REPORT Ms. Revak reported the police department is upgrading their computer systems and no report was available. DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT Mr. Hamers presented the ordinance enforcement summary report for the four -week period beginning February 23, 2003 and ending March 21, 2004. Mr. Shefs summary report contained the following information: • 25 flyers given to residents and 6 containers oversprayed and ID tagged. Letter of instructions from counsel regarding citation issuance will be followed. • Modification of green sheets will be necessary when fully automated collection services commence. CMSD STRATEGIC PLAN YEAR 2003/2004 ACTION ITEMS Mr. Hamers presented the 2003/2004 Strategic Planning Action Items, reporting the District is on schedule for all items. Director Ferryman requested information and discussion ensued regarding the private sewer spill and how the District handles reimbursement from the responsible entity. • 4 rI L • COSTA MESA SANITARY DISTRICT _ u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 8, 2004 PAGE 5 SEPARATION OF DISTRICT STAFF FROM CITY Mr. Hamers reported a special meeting is scheduled for April 14, 2004. RECYCLING REPORTS WASTE DIVERSION REPORT - FEBRUARY 2004 Director Ferryman motioned to receive and file the Waste Diversion Report for February showing a 50.08 diversion rate. Director Perry seconded. Motion carried 5 -0. WASTE DIVERSION REPORT - MARCH 2004 The Waste Diversion Report for March has not yet been received. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR MARCH 2004 SERVICES Director Perry motioned to approve contract payment to CR Transfer for recycling services and disposal for the month of March 2004, in the amount of $181,457.00, pending verification by Staff. Director Woodside seconded. Motion carried 5 -0. COSTA MESA DISPOSAL REQUEST FOR FULLY- AUTOMATED SERVICE AND PRESENTATION OF MASTER PLAN Mr. Harriers reported a special meeting was held on March 29, 2004, with Costa Mesa Disposal and CR &R. A presentation was given and a formal request in writing will be made. Mr. Fauth prepared a matrix entitled CR Transfer Tonnage Comparison, by Fiscal Year and gave a brief explanation showing that the increases in yearly tonnage may have leveled off. Staff will continue to monitor the monthly tonnage reports. + „s COSTA MESA SANITARY DISTRICT u ] MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 8, 2004 PAGE 6 CLOSED SESSION WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 PROPERTY: 628 W. 19th Street, Costa Mesa, California PROPERTY: 628 W. 19th Street, Costa Mesa, California AGENCY NEGOTIATORS MAY INCLUDE: Arlene Schafer, Jim Ferryman, Rob Hamers, Tom Fauth, and Joan Revak NEGOTIATING PARTIES: Cheong Lee Family LLC UNDER NEGOTIATION: Price and Terms of Purchase PROPERTY: 1914 Meyer Place, Costa Mesa, California AGENCY NEGOTIATORS MAY INCLUDE: Arlene Schafer, Jim Ferryman, Rob Hamers, Tom Fauth, and Joan Revak NEGOTIATING PARTIES: Gene LaBlanc UNDER NEGOTIATION: Price and Terms of Purchase Mr. Hamers reported the item could be discussed during the regular meeting; no closed session was necessary. Mr. Fauth reported Mr. Don Gregg met with the two current owners regarding the Meyer Place property. The owners are interested in retaining the property. Discussion was held regarding locating property for an equitable trade. NEW DISTRICT HEADQUARTERS — 628 W. 19TH STREET Mr. Hamers reported an architect, Mr. Robert Thornton, has been located and hired. Mr. Hamers reported Staff dispensed with the request for qualification procedure because the scope of work is only tenant improvements and it is in the best interest of the public to move ahead as fast as possible. The normal consultant selection process usually encompasses an eight to twelve week period whereas Mr. Thornton can complete the work in three weeks. The eight to twelve week period would cause the District to incur additional rent charges from the City of Costa Mesa. Mr. Hamers cited the CMSD Operations Code Section outlining this provision. Mr. Hamers requested ratification by the Board. Mr. Burns has reviewed and modified the professional services agreement. Mr. Fauth reported the agreement has been faxed to Mr. Thornton and a signed fax has been returned. Director Ferryman motioned to ratify the Consultant Agreement with Mr. Robert Thornton. Director Perry seconded. Motion carried 5 -0. • r--] 0 h J ... a .r =E, COSTA MESA SANITARY DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING r. APRIL 8, 2004 • - PAGE RECYCLING COMMITTEE — TUESDAY, APRIL 6, 2004 - 9:00 A.M., CRA DIRECTORS WORTHINGTON AND FERRYMAN STRATEGIC PLANNING 2004 — PUBLIC OUTREACH — CLASSROOM RECYCLING PROJECTS Director Worthington reported he and Mr. Fauth held a presentation on vermicomposting at the new community center. Director Worthington provided a copy of the Excellence in Education Award that will be presented to teachers participating in the District's Recycling Education Program and gave thanks to Director Perry for suggesting the idea. ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS — (WDR) GENERAL UPDATE Mr. Hamers distributed a copy of the letter to Mr. Gerry Thibeault, Executive Officer of the Regional Water Quality Control Board, providing an update on the Costa Mesa Sanitary District's progress in complying with the WDR. Mr. Hamers reported the District is making good progress regarding the FOG Characterization program. Mr. Burns reported OCSD and the permitees asked for an extension of the WDR "Legal Authority" and the request was denied. EMERGENCY WORK — VICTORIA STREET SEWER REPAIR Mr. Hamers reported an emergency repair was performed at the Victoria Street Sewer Main. A major offset was discovered and determined to be too severe to repair using one of the no -dig technologies. Therefore, Atlas Underground Company was retained on an emergency basis to excavate and repair the line. The all- inclusive cost was $9,700 and covered approximately 12 linear feet of the line. • COSTA MESA SANITARY DISTRICT ±,, 4 MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 8, 2004 PAGE H • TREASURER'S REPORTS INVESTMENT OVERSIGHT COMMITTEE MEETING - APRIL 8, 2004 (DIRECTORS FERRYMAN AND PERRY) Mr. Puckett reported the Investment Oversight Committee Meeting was held just prior to the regular meeting. Mr. Puckett provided a brief update to the Board. UPDATE OF POOLE V. COUNTY OF ORANGE Mr. Puckett provided an update on Poole V. County of Orange. Mr. Puckett distributed a packet containing an article and Court of Appeal decision with the Court ruling in favor of the County of Orange and assessment procedure that has been used by the County Assessor consistently since the enactment of Prop. 13. Mr. Robert Poole vowed to appeal the decision to the State Supreme Court. ATTORNEY'S REPORTS 433 WALNUT PLACE AGREEMENT 0 Mr. Burns reported he is dealing with the title company who requested he no longer communicate with the attorney for the seller. Mr. Burns reported he wrote a letter to Mr. Luis Yeager, First American Title, dated March 17, 2004. The letter reiterates the District's position and provides a demand for the removal of encroachment that unreasonably interferes with the District's sewer easement at 433 Walnut Place. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) REGULAR MEETING - MARCH 24, 2004 (DIRECTOR FERRYMAN Director Ferryman attended the March 24, 2004, meeting and reported the following: • Sole source as Class A biosolid facility in Kern County with 10 year commitment • Cooperative projects program may be suspended for a few years due to lack of utilization and anticipation of urban runoff is requirements COSTA MESA SANITARY DISTRICT .•' MINUTES OF BOARD OF DIRECTORS REGULAR MEETING y APRIL 8, 2004 PAGE 9 SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) REGULAR MEETING - MARCH 25, 2004 Director Ferryman attended the March 25, 2004 meeting and reported the following: • Monies received may not be enough for Prado Dam construction completion • Status of flood control subvention funds • Discussion of concepts for future federal and state funding alternatives INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) QUARTERLY MEETING - APRIL 29, 2004 President Schafer reported the Quarterly Meeting will be held on April 29, 2004 with Ken Lee from LAFCO as speaker. • President Schafer reminded the Board there will be an election held at the April 29th ISDOC General meeting for the seats of Robert Bouer, Randal Bressette, and Arlene Schafer. Director Ferryman reported he will be unable to attend the meeting to perform as alternate. Director Perry stated he will be able to attend the meeting. Director Woodside motioned to appoint Director Perry as a voting alternate at the ISDOC Quarterly meeting to be held on April 29, 2004. Director Ferryman seconded. Motion carried 5 -0. Ms. Revak will provide an excerpt of the Minutes for the ISDOC meeting. LOCAL AGENCY FORMATION COMMISSION ( LAFCO) President Schafer reported she has not yet attended the LAFCO meeting. They are scheduled to discuss the new budget and the search for a new executive officer. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) • President Schafer reported she was on a telephone conference with CSDA working on the SB 1272, Ortiz bill, regarding special districts. COSTA MESA SANITARY DISTRICT ' _ MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 8, 2004 PAGE lO • Director Perry motioned that the need arose after the agenda was prepared to discuss the CSDA seminar attendance. Director Ferryman seconded. Motion carried 5 -0. Director Perry motioned to approve attendance at the Sacramento CSDA program on May 11 -13, 2004, for President Schafer and Director Worthington. Director Ferryman seconded. Motion carried 5 -0. ANNUAL CONFERENCE - SEPTEMBER 25 -30, 2004 AT INDIAN WELLS The item was continued to a future agenda. AWARDS PROGRAM - INNOVATIVE PROGRAM AWARD Mr. Hamers reported staff prepared an entry for the Innovative Program Award for the Costa Mesa Sanitary District's Telephone Book Recycling Program. Director Ferryman motioned to approve submittal of the Costa Mesa Sanitary District's Telephone Book Recycling Program for an Innovative Program Award to CSDA. Director Perry seconded. Motion carried 5 -0. • Mr. Harriers commended Director Worthington for the work he has done In furthering the Telephone Book Recycling Program. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) 2004 SPRING CONFERENCE - APRIL 29 -MAY 1, 2004 LAKE TAHOE Director Perry motioned to approve attendance for Director Worthington at the April 29 to May 1 2004 Spring Conference of California Association of Sanitation Agencies (CASA). Director Woodside seconded. Motion carried 5 -0. OLD BUSINESS There was no old business discussed. NEW BUSINESS MAY 13, 2003 REGULAR MEETING Ms. Revak reported the regular meeting for May has been changed to • Monday, May 1 0th, at 6:00 p.m. 0 • I� COSTA MESA SANITARY DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING APRIL 8, 2004 PAGE 11 JULY 8, 2004, 4 :00 P.M. MEETING AT COSTA MESA HISTORICAL SOCIETY Discussion was held on holding the regular July 8, 2004 meeting at the Costa Mesa Historical Society and it was decided to hold the June 10th regular meeting at the Costa Mesa Historical Society at 4:00 p.m. The July 8th regular meeting will be discussed at the May regular meeting. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Worthington opened discussion regarding SB 1272. Director Worthington suggested all Directors carefully record any meeting each Director is involved in on behalf of the District, regardless of whether or not they are reimbursed for attendance. Mr. Harriers reported the compensation report has been modified to include all meetings attended. Mr. Hamers commended Board and Staff for their hard work. ADJOURNMENT At 7:22 p.m., President Schafer adjourned the meeting. SECRETARY PRESIDENT COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING APRIL 14, 2004 The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed Special Meeting on April 14, 2004 at 6:00 p.m., in Conference Room 1A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Arlene Schafer, Greg Woodside, James Ferryman, Arthur Perry Dan Worthington (Director Woodside arrived at 6:50 p.m.) Staff Present: Robin B. Hamers, Manager /District Engineer; Thomas A. Fauth, Assistant Manager; Joan Revak, Clerk of the District; Alan Burns, Legal Counsel • I. Public Comments There were no public comments made. President Schafer adjourned the meeting to closed session at 6:02 p.m. II. Closed Session Closed Session to Review Outside Contractor Rates and give authority to the District Manager to Negotiate with the following officers /employees regarding their compensation: District Treasurer, Field Crew Members Ill. Reconvene to Open Session President Schafer returned to the Special Meeting at 7:40 p.m. Staff was given direction by the Board of Directors to take appropriate action to arrange for interviews with potential District Treasurers and Board of Directors; advertise and hire District Accountant; review and purchase accounting software; advise City of Costa Mesa that financial services will no longer be continued as of June 30, 2004; and, to negotiate further with the City of Costa Mesa with regard to field crew services. A meeting was scheduled for Friday, May 7 at 11:30 a.m. to interview potential District Treasurer candidates. Costa Mesa Sanitary District Page 2 Minutes of Special Meeting Held April 14, 2004 V. Update on New Administrative Offices at 628 W. 19th Street Mr. Fauth provided an update on the status of the purchase of the new CMSD headquarters as well as a status report on the tenant improvement plans. Regarding purchases related to the move -in, the Board of Directors directed District Counsel to revise the CMSD Ordinance pertaining to signing authority for purchases to increase Staff's limits for non -sewer work related purchases beyond the current $5,000 limit. The Board of Directors directed the Assistant Manager to consult with District Counsel with regard to CalPERS for contract employees. President Schafer adjourned the meeting at 8:30 p.m. Secretary President (Protecting our community's health 6y providing solid waste and'sewer coffection services. costamesasanitarydu' trict. org C7 0 • 8 0 WESA SAJIZART Cosy. L .o;t f w 0 R IN-1 (DISTRICT C7 ... an Independent Specia(Distfict Memorandum To: Board of Directors From: Debbie Bjornson, Permit Processing Specialist Date: May 5, 2004 Subject: REFUND REQUEST FOR BOARD APPROVAL There are no refund requests for the month of April 2004. C ' 464 Thomas A. Fauth Assistant Manager Debbie Bjornson Permit Processing Specialist r Costa Mesa Sanitary District Year 2003/2004 Strategic Planning Action Items In accordance with Board action on November 12,'2003, Year 2003, Strategic Planning Action Items are revised to be Year 2003/2004 Strategic Planning Action Items and will be completed over a two -year period. 1.1 Eliminate Sewer Spills • Interim FOG ordinance will be adopted at February regular meeting • Include funds for FOG program in 2003 -2004 CIP • Staff is proceeding on WDR • Apply for matching funds from OCSD • Field crew training and certification • SSMP already complete • Abandon 7 pumping stations • Examine NW Costa Mesa for additional abandonment Action: Continue expeditiously completing the above items Who: Staff • When: Continuing 0 1.2 Institutional Issues • Consider relocating • Recent meeting with City on potential building at City Hall • Benefits and limitations of contracting with City • City studying 4th floor layout • Comparison of costs with City versus relocated costs • Benefits of relocating now • Examine building, land, and operational costs of relocation • Benefits to identity of relocating • Inability to identify District's true costs from City • Inability to reward City staff designated to District monetarily and with titles • Relocation can include continued partnership with City • LAFCO concerns • One year notice provision • Employees leaving City for District given equal or better conditions • Using reserves for building protects money from State acquisition Rev. 5/03/04 � 1 Action: Consider all eventualities prior to taking action. Appoint Institutional Issues Committee to study factors and report to Board. Redistribute 1994 and 1995 study to Board and Staff Hold workshop to consider findings and determine actions. Who: Institutional Issues Committee When: Special meeting as soon as possible Status: 1994 and 1995 Study re- distributed to Board and Staff. Institutional Issues Committee, appointed at February 13, 2003 regular meeting, met on March 10, 2003. Item discussed at April 11, 2003 regular meeting. At Special meeting held on May 29, 2003, Board authorized one -year notice to City of Costa Mesa terminating Operating Agreement. Special Meeting held October 13, 2003. Meeting with two Council members and two CMSD Directors held October 29, 2003. At November 12, 2003 meeting Board directed staff to proceed in relocating District headquarters. Special Meetings were held January 15, 2004, February 23, 2004, March 8, 2004 and April 14, 2004. 1.3 Earmark Reserves • Research laws protecting earmarked funds • Determine vulnerability of reserves • Determine options for earmarking funds • Consider purchasing headquarters • Consider paying off standardized containers • Understand options and be prepared to act Who: Legal Counsel — Legal issues Treasurer — Paying off standardized containers Director Ferryman — Cost of purchasing headquarters Manager — other options When: Legal opinion discussed at April 11, 2003 regular meeting. 1.4 Safety of District Funds • Board desire for better understanding of safety mechanisms • Review thoroughness of District audit • Review District internal and external controls • Review spending policies for travel, credit cards, and reimbursements • District Investment Policy has worked well • District Investment Policy is updated yearly , • No problems have ever occurred Rev. 5/03/04 2 lb Action: Have auditor explain audit process and answer questions from Board. Who: Treasurer When: Fall 2003 Completed: Auditor made presentation to Board on December 10, 2003 1.5 Review Costs of Special Recycling Programs • Perform cost/benefit analysis of each program • Identify options to decrease costs but maintain programs • Determine outreach benefit • Compare special programs to overall goals of District Action: Perform analysis Who: Assistant Manager When: May /June 2003 Status: Report presented by Assistant Manager at July 2003 regular meeting. Board concluded that the special recycling programs are low cost, very effective and well received by residents. All the programs will continue. 1.6 Variable Trash Collection Rates • SRRE goal of variable rate structure • Reward those who leave out less trash • Variable rate satisfies proportionality requirement of Prop 218 • Residents still unsure of number of containers they need • Variable rate requires developing standards and monitoring field conditions • Affects billing mechanism necessitating computer reprogramming Action: Determine when implementation is appropriate Who: Assistant Manager When: December 2003 Status: Concept introduced at October 2003 regular meeting. Variable trash collection rates were discussed with trash hauler on January 21, 2004. A Special Meeting with trash hauler was held March 29, 2004 and trash hauler and District Staff will continue formulating a plan for variable trash collection rates. Rev. 5/03/04 3 f 1.7 Commercial Trash Collection • Can expand service to include remaining residential and commercial /industrial • Expansion requires collection from bins and dumpsters in addition to curb side • Requires negotiation with the City • District has continued success in solid waste management • Provides simpler system for residents and business owners • Current system promotes excess traffic, air pollution, and street deterioration • Combining allows greater flexibility in recycling 50% of trash • Independent haulers loudly oppose change • Study and benefits previously transmitted to City Action: Re- introduce benefits of non - exclusive franchises to City by letter from Board. Who: Board of Directors When: February 2003 Completed: Letter from CMSD President to Mayor sent on February 3, 2003 1.8 Liaison and Outreach with other Agencies • Existing Liaison Committee with City and MCWD working well • Meeting with Newport Beach held and follow -up letter sent • Results of liaison committees are beneficial • Board President is very active in many local meetings and organizations • Board President sent congratulatory letter to newly elected officials • Consider hosting meeting with sewering agencies • Consider meeting with legislators Action: Host meeting with sewering agencies and meet with legislators Who: Board President and Manager to arrange When: 3rd or 4th Quarter 2004 1.9 Public Restrooms • Free standing, high quality, highly attractive expensive units • Currently exist in S.F., San Jose, Palo Alto, and L.A. • Benefit to businesses and public • Requires sewer, water, electricity, and phone connections • Requires sites • Usual financing mechanism is trade for advertising space • • District has Facilities Revolving Fund which may be utilized • Consider City support and participation Rev. 5/03/04 4 Action: Update research and study feasibility Who: Assistant Manager • When: Td or 4th Quarter 2004 1.10 Public Outreach • Extensive existing program • Two newsletters per year • Ads and press releases in newspapers and City publications • Booth at all major events: OC Fair, Public Works Expo, etc. • Distributed over 500 copies of District video "Working for You" • Attend girl scout and other local events • Giveaways • Website up and running • Always a need for more understanding by residents of District services • Improve communication of holiday trash collection schedule • Consider a class project once a year • Consider outreach to other elected officials • Consider adult outreach • Consider survey of other agencies' efforts • Check with State Dept. of Conservation for education materials Action: Expand program to include the last seven bullet points shown above Who: Staff When: At March 11, 2003 Recycling Committee Meeting and March 12, 2003 Regular Meeting, Director Worthington and CMSD Assistant Manager selected to offer schools a half hour program and a vermicomposting program. At April 11, 2003 Regular Board Meeting, Board approved entry of CMSD Video, "Working for You "to CSDA Awards Program. Entry-submitted on April 14, 2003. At April 8, 2004 Regular Board Meeting, Board approved submission of CMSD School Telephone Recycling Program for CSDA Innovative Program Award. Status: Recycling presentations by Director Worthington and Assistant Manager Tom Fauth being arranged at various schools. CSDA presented District with Exceptional Public Outreach Award. • A second order of 500 videos District's Working For You video were ordered and received. The District's goal is to distribute copies to residents and groups within the District. CMSD' sponsored booth at CostaMazing event on February 7, 2004. Rev. 5/03/04 5 ;e,5 nt arnt .e Cost M-e-sa �.��]- , a Y Ct DI-StrX - a; ... an Inbepenbent Specic1( District Board of Directors Arlene Schuler Greg 00 odside James Ferrl-mun .-trt Perry .Hill 66brthirr� =ton Staff Robin B. Hralrers anager District En;ineer (949) 631 -131 Thomas : 1. Fauth 4.ssistunt Manager 4) 7�4 -5043 Joan Rei ak Clerk of the District '14) Fxv t'14i 3-1 -1436 11ailin, . address J.3,„ 1201) Custer tlesa, G) :,)_ f,'R -1200 Street .address Fair Drive Wosra Mesa. CA 9?62 6 -6 5 20 ReC.cled Paper April 15, 2004 Mr. Allan Roeder City Manager City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Re: City /District Agreement Dear Allan: At a special meeting held April 14, 2004, the Board of Directors of the District discussed the forthcoming separation of the District headquarters from City Hall and the provisions for financial and field crew services. After careful consideration, the Board transmits the following: I. Financial Services In order to effectively operate in its new headquarters, the District finds that the financial operation must also be located at the new headquarters, therefore, the District respectfully declines the opportunity to utilize the City financial management operation. Marc Puckett has provided a very aged. level of service and his professional manner has been greatly appreciated. The District is still planning for the financial separation to occur on June 30, 2004. II. Sewer System Maintenance and Operation With regard to the City providing sewer system maintenance and operation, the District is willing to have the City provide field crew services for the price of $550,000 per year for five years with a yearly price increase of 2.5% with a performance standard that requires one sewer cleaning crew to clean 20,000 lineal feet of gravity sewer per week in n crew to clean hot spots) a Wing standards with the second sewer 9 minimum of 16 hours per week. The work performed during the remaining 14 hours of work per week dedicated to the District is to be determined by agreement between the District Manager, Assistant Manager, and City Protecting otitr comb mmit)Ys f)eaftf) b� 11rovibing so[@ Tvoste ancb sewer coffectiovi services. costamesasanitary bistrict.org City /District Agreement April 15, 2004 Page 2 Maintenance Supervi9or. The above cost includes standby pay for the field crew personnel plus the weekend pump station check but not other overtime costs. Also included i� retaining the existing telemetry system in place. The agreement is to be for five years at which time the City will turn over to the District the newest of the two vactor trucks, the service truck, the pickup truck, the two diesel generators and trailers, the two Barnes pumps, the monies collected to that time in the vehicle replacement fund for the above described vehicles, and all District owned equipment in the Corporation Yard related to the sewer system including manhole frames and covers, pumps, valves, etc. Although the City transmitted revisions to the first draft of the proposed agreement with statements that the City owns all vehicles, there are a few considerations in this matter. In 1999, the District purchased two standby diesel generators for $66,000 out of the District's capital improvement project #163. It was suggested the District utilize the city's purchasing division in the acquisition and this was agreed to by District staff. As was convenient at the time, the City registered the generators with the DMV. In a recent meeting with Bill Morris and Marc Puckett regarding the City /District Agreement, Bill recollected that the District purchased these generators and he believes these vehicles are indeed the property of the District. • The District sees no difference between the standby diesel generators and the other vehicles that are dedicated to the sewer system maintenance and operation program. When two agencies operate under a joint powers authority as the City and District did for quite some time, it is natural to streamline operations as best as possible and this includes having one party or the other be the legal owner of various assets. The District also believes that when the City and District superseded the joint powers authority with an operating agreement, the City was designated as the owner of the vehicles as a continuation of the convenience that previously existed. The City and District were two government agencies partnering to provide sewer system maintenance and operation in a-streamlined fashion. • The CMSD Board of Directors believes the above - described offer for the City to provide sewer system operation and maintenance services is fair and workable for the City. I am available to discuss any comments or questions the City may have with respect to the parameters of the offer. Due to the short time between now and the end of the fiscal year, the District finds it necessary to reach an agreement in principle with the City by May 3, 2004. Printed ,,,, Protecting otitr cov�munit�'s �)ealtG 6� y)rovibincg so[ib waste anb sewer coffection services. Rec_rcled pupe costa YVlesasanitar�)(b.lstrlct.oro City /District Agreement April 15, 2004 Page 3 0 Thank you for your consideration in this matter. Sincerely, Robin B. Hamers Manager /District Engineer (949) 631 -1731 office (714) 293 -2727 cell cc: Board, Staff Bill Morris, Director of Public Services Marc Puckett, Director of Finance • • a16 PrAUedon Protect lYl� oVr c0➢mYVunitY'S G)eafth 6� provib1no 50l1(b waste anb Sewer c0ffect1011 SeriJ1CeS. Rec_�cled Paper cOSt6imesasaY11tC1rY bistr1ct.0rCo F• • • May 3, 2004 CITY OF COSTA MESA RECEIVED P.O. BOX 1200, CALIFORNIA 92628 -1200 MAY - 5 2004 FROM THE OFFICE OF THE CITY MANAGER COSTA MESA SWAff Mr. Robin B. Harriers Manager /District Engineer Costa Mesa Sanitary District P.O. Box 1200 Costa Mesa, California Re: City /District Agreement Dear Mr. mers: Following receipt of your correspondence of April 15, 2004, 1 met with Public Services Director Bill Morris and Finance Director Marc Puckett to address the points posed by the Board of the District. Let me state up front that we recognize the District's interest in resolving all outstanding questions in an expeditious fashion so as to facilitate relocation to your new headquarters. While we are not in agreement on all of the points in your correspondence, I would not want that interpreted as being an obstruction or in any way an effort to hamper the District's relocation plans. As I have stated several times over the past months, the City stands by its commitment to be flexible to the District's interests and will cooperate fully to make this a smooth transition. Having said that, I also believe that you don't unwind a 50- something year relationship without having some disagreements along the way. Financial Services As requested, the City will cease all financial management and support to the District effective at the end of the current fiscal year on June 30, 2004. We will provide you the hard copy of any and all financial transactions of the District up and through that date. To the extent requested, we will be available to meet with your auditors for the year -end closing to answer any questions that may arise. As noted in your letter, the District has received a very high level of service from Marc and his staff and we appreciate that recognition. Finance staff has enjoyed working with District staff and providing yourself and the Board much needed financial information. However, I want to acknowledge my sincere reservations about the District assuming full responsibility for financial management in the midst of all of the other changes taking place at this time. In no way do I believe the District is incapable of handling its own financial affairs; simply that this is a very complex effort to undertake at this time. I feel obligated to express this concern out of my own 77 FAIR DRIVE PHONE: (714) 754 -5327 • TDD: (714) 754 -5244 • FAX: (714) 754 -5330 • www.d.costa- mesa.cams professional and personal obligation to the District, as this is a service that cannot be switched "on and off." Consequently, conclusion of City financial management support effective June 30, 2004 will be conclusive and we will not entertain resumption of this service in the future. II. Sewer System Maintenance and Operation Following our review of the District's proposal for sewer system maintenance and operation, we find ourselves with more questions than answers. First and foremost, I don't believe this can be sufficiently sorted out by mail. Accordingly, I am more than happy to make myself, Marc and Bill available at the Board meeting of May 10th to discuss this in detail. But in the interim, let me summarize some of our questions. • We are not at all clear what the quoted $550,000 figure is based on? Would it be possible to receive a line item breakdown of this figure? • How did the District arrive at a 2.5% cap on annual expenses? We certainly understand the need for predictability on the District's part. Yet if you simply look at current year cost increases in worker's compensation by 3.5 %, employer contributions towards retirement at 6.3% and retiree medical at 7.8 %, we find it difficult to support a fixed annual cap on costs. Add to this the non - employee incurred costs of providing service including fuel, electricity, material and supply costs, annual cost predictability over a 5 -year period becomes increasingly difficult. We do believe there are other options that are workable if the District is open to further discussion on this point. Just as one example, I do believe we would consider a cost that capped employee related costs at whatever that annual adjustment was provided for District Administrative personnel plus actual costs for fuel and related operations expenses. • It certainly appears we are closer to but not in agreement on the issue of equipment ownership. On the matter of the two diesel generators and trailers, the two Barnes pumps and the various sewer system items including manhole frames, covers, pumps, valves, etc., we concur that this equipment rightfully belongs to the District. We do not agree with the District's position relative to rolling stock including the two vactor trucks, the service truck and the pickup truck. Section 8.03 of the 1993 Agreement could not be clearer on this subject — "CITY owns all vehicles registered by the Department of Motor Vehicles which are used exclusively for sewer maintenance ". We do not understand this seemingly new interpretation of this section that suggests that the District always held title to the vehicles and that they were only registered to the City as a matter of convenience or streamlining? If the District is desirous of purchasing this equipment in the event the maintenance contract is not extended, the City is more than willing to sell one (Bill wanted to keep one vactor for cleaning storm drains) vactor, one service truck, one pickup truck, one large pump trailer and one small pump trailer at current appraised value. The City will not be forfeiting funds placed in the Equipment Replacement Fund for maintenance, operation and replacement of this equipment. • It appears there is also some question relative, to ownership of fixed assets, tools and equipment at the City's Corporation Yard in terms of what belongs to the District as opposed to the City. Frankly, I would really hope that we could delegate this determination to the field personnel who use the equipment day in and day out for their recommendation. I don't know that we as administrators can decide who owns which crescent wrench, grease gun, drill bit or hundreds of other small items used in the field. And I would prefer not to spend $1,000 worth of staff time debating ownership of $200 worth of fixtures. Whatever suggestions you have along these lines to simplify this effort would be very much appreciated. Before closing, I would like to summarize the preceding to ensure I have been clear in conveying our position: 1. We are in agreement on the discontinuance of financial services effective June 30, 2004. 2. The City is in needed of clarification from the District on the matter of the Sewer Maintenance Contract regarding how the $550,000 figure was arrived at as well as the basis for the 2.5% annual cap. We are open to negotiating both of these points including an extension of the existing agreement, if necessary, to arrive at an agreeable 5 -year commitment. 3. We are in agreement on some but not all of the equipment ownership. The 1993 Agreement is clear on vehicles but not on the pumps, generators and miscellaneous fixed asset tools & equipment. We support the District's position on ownership of the pumps, generators & trailers and suggest the field personnel sort out the small tools and fixed assets based on use. We are open to whatever other suggestion you might have on the later. Again, it is our desire to make this transition as smooth as possible. I would like to reiterate my offer to meet with you and the Board to discuss the preceding at your convenience. Sincerely, Allan L. Roeder City Manager /cg c: City Council Acting City Attorney Public Services Director 0 Finance Director Actuarial & Employer Services Division P.O. Box 942709 Sacramento, CA 94229 -2709 OR,��, J- Telecommunications Device for the Deaf - (916) 326 -3240 CaIPERS (888) CalPERS (225 -7377) FAX (916) 326 -3005 May 7, 2004 Mr. Robin B. Hamers Manager Costa Mesa Sanitary District 77 Fair Drive Costa Mesa, CA 92628 -1200 Dear Mr. Hamers: RECEIVEi MAY - 7 2004 ZIA NEA SA 9MY 90 Reply to Section 105 Enclosed are two copies of the Resolution of Intention for adoption by the governing body declaring your agency's intent to enter into a contract to provide Section 21354 (2% @ 55 Full formula); Section 20042 (One -Year Final Compensation); Section 20965 (Credit for Unused Sick Leave); Section 20903 (Two -Years Additional Service Credit); Section 21023.5 (Public Service Credit for Peace Corps or AmeriCorps: VISTA Service); Section 21024 (Military Service Credit as Public Service); Sections 21624 and 21626 (Post- Retirement Survivor Allowance) with 100% prior service for local miscellaneous members. Also enclosed are the following documents: Form CON -12, Certification of Governing Body's Action. 2. Form CON -12A, Certification of Compliance With Government Code Section 7507. 3. Employee Ballot. 4. Summary of Major Provisions (2% @ 55 Formula). 5. Form CON -15N. Certification of Employee Election. 6. Form CON -24c, Fourth Level of 1959 Survivor Benefits Ballot. 7. Form CON -18, 1959 Survivor Benefits Certification of Employee Election. After the governing body has adopted the enclosed Resolution of Intention declaring its intention to enter into a contract, an election is required to permit the employees proposed to be included in this system to express by secret ballot their approval or disapproval of the retirement proposal, pursuant to Government Code Section 20469. A ballot for the employees' election is enclosed. The results of the election are to be certified on the enclosed Form CON -15N, Certification of Employee Election. The contract shall not be approved if a majority of the affected members vote to disapprove the proposed plan. California Public Employees' Retirement System Lincoln Plaza - 400 P Street - Sacramento, CA 95814 b- .. Costa Mesa Sanitary District -2- May 7, 2004 The employer rate for local miscellaneous members is estimated to be 13.881 %. Estimate the miscellaneous payroll for the next twelve months and multiply by 13.881 % to compute the total annual cost. As your contract reads, the employer rate is subject to change with future amendments and /or experience and other factors. The employer normal cost rate for the Fourth Level of 1959 Survivor Benefits is $4.90 per month, per covered member. (Subject to annual change.) Agencies will be billed annually and payments may vary depending on the funding reserve level of the pool. In addition, members covered by the 1959 Survivor Benefits contribute $2.00 per month. Government Code Section 7507 requires that the total annual costs of the proposed contract be made public at a public meeting at least two weeks prior to the adoption of the final Resolution. The agency is to certify compliance on the enclosed Certification of Compliance with Government Code Section 7507. Please note the local miscellaneous member contribution rate will be 7% of reportable earnings, as of the effective date of the contract. After your governing body has adopted the Resolution of Intention, the next procedure with respect to the 1959 Survivor Benefits is to allow each current employee, proposed to be included in this system, to make an individual election. Members in employment on the effective date of the contract may elect whether to be covered. Participation is required of all future entrants into membership. The supervision of this election and the details of its conduct are under the control and direction of your agency: A ballot, Form CON -24c including the summary of benefits is to be distributed to all eligible employees to complete and sign. The original ballots must be returned to this office along with a listing, in duplicate, of the employees, their Social Security numbers and category (miscellaneous, fire, police, etc.) wherein the employees are grouped according to those: 1) who elected coverage; 2) who did not elect coverage; and 3) who did not return the ballot. Employees who do not return the ballot within the prescribed time limitation thereby elect not to be covered. The list should confirm the results of the election, which are certified on the enclosed Form CON -18, 1959 Survivor Benefits Certification of Employee Election. NOTE: Any employees hired after the election or employed prior to or on the effective date of the contract must also be given the opportunity to elect coverage. In summary, the following documents must be returned to this office before we can forward the actual contracts and other final documents necessary to complete the proposed contract. DO NOT HOLD THESE DOCUMENTS PENDING ADOPTION OF THE FINAL RESOLUTION. Costa Mesa Sanitary District -3- May 7, 2004 ORIGINAL SIGNATURES ARE REQUIRED Resolution of Intention, original or certified copy. 2. Certification of Governing Body's Action (CON -12), original. 3. Certification of Compliance with Government Code Section 7507, (CON -12A), original or certified copy. 4. Certification of Employee Election (CON -15N). 5. Fourth Level of 1959 Survivor Benefits Ballots (CON -24c). 6. 1959 Survivor Benefits Certification of Employee Election (CON -18). 7. Summary listing of employees for 1959 Survivor Benefits. If your agency adopts the Resolution of Intention on May 10, 2004, the earliest date the final Resolution may be adopted is May 30, 2004. There must be a 20 day period between the adoption of the Resolution of Intention and the adoption of the final Resolution pursuant to Government Code Section 20471. THERE ARE NO EXCEPTIONS TO THIS LAW. The effective date of this contract cannot be earlier than the first day of a payroll period following the effective date of the final Resolution. Please do not retype the Contract and /or agreement documents. Only documents provided by this office will be accepted. If you have a problem with any of the documents, please contact this office prior to presenting to your governing body for adoption. If you have any questions regarding this letter or the enclosed material, please call (888) CalPERS (225- 7377). Sincerely, + L i rbara Patterson Employer Representative Public Agency Contract Services BP:rc Enclosures cc: Orange Regional Office Employer Education RESOLUTION OF INTENTION TO APPROVE A CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE BOARD OF DIRECTORS COSTA MESA SANITARY DISTRICT WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies in the Public Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and WHEREAS, one of the steps required in the procedure is the adoption by the governing body of the public agency of a resolution giving notice of intention to approve a contract for such participation of said agency in the Public Employees' Retirement System, which resolution shall contain a summary of the major provisions of the proposed retirement plan; and WHEREAS, attached is a summary of the major provisions of the proposed plan; NOW, THEREFORE, BE IT RESOLVED, that the governing body of the above agency gives, and it does hereby give notice of intention to approve a contract between said governing body and the Board of Administration of the Public Employees' Retirement System, providing for participation of said agency in said retirement system, a copy of said contract and a copy of the summary of the major provisions of the proposed plan being attached hereto, as an "Exhibit ", and by this reference made a part hereof. By: Presiding Officer Title Date adopted and approved (New Agency) CON -301 (Rev. 4/96) Ca1PERS California Public Employees' Retirement System CONTRACT Between the EXHIBIT Board of Administration California Public Employees' Retirement System and the Board of Directors Costa Mesa Sanitary District In consideration of the covenants and agreement hereafter contained and on the part of both parties to be kept and performed, the governing body of above public agency, hereafter referred to as "Public Agency ", and the Board of Administration, Public Employees' Retirement System, hereafter referred to as "Board ", hereby agree as follows: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. 3. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Employees other than local safety members (herein referred to as local miscellaneous members). 4. Any exclusion(s) shall remain in effect until such time as the Public Employees' Retirement System determines that continuing said exclusion(s) would risk a finding of non - compliance with any federal tax laws or regulations. If such a determination is contemplated, the Public Employees' Retirement System will meet with the Public Agency to discuss the matter and coordinate any required changes or amendments to the contract. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: a. SAFETY EMPLOYEES. 5. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 6. Public Agency elects to be subject to the following optional provisions: a. Section 20042 (One -Year Final Compensation). b. Section 20965 (Credit for Unused Sick Leave). C. Section 20903 (Two Years Additional Service Credit). d. Section 21023.5 (Public Service Credit for Peace Corps. AmeriCorps VISTA, or AmeriCorps Service). e. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. f. Sections 21624 and 21626 (Post- Retirement Survivor Allowance). 7. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members of said Retirement System. 8. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members. b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. C. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 9. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 10. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. .t `J BOARD OF ADMINISTRATION', BOARD OF DIRECTORS PUBLIC EMPLOYEES' RE tlkEMENT SYSTEM COSTA MESA SANITARY DISTRICT J ♦' V r BY KENNETH W..MARZION, CHIEF ACTUARIAL &. EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM NEW AGENCY Org Id 7712 PERS - CON -702N (Rev 1102) BY _ PRESIDING OFFICER 1\ Witness Date -�.. 3" Attest: Clerk RESOLUTION OF INTENTION TO APPROVE A CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE BOARD OF DIRECTORS COSTA MESA SANITARY DISTRICT WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies in the Public Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and WHEREAS, one of the steps required in the procedure is the adoption by the governing body of the public agency of a resolution giving notice of intention to approve a contract for such participation of said agency in the Public Employees' Retirement System, which resolution shall contain a summary of the major provisions of the proposed retirement plan; and WHEREAS, attached is a summary of the major provisions of the proposed plan; NOW, THEREFORE, BE IT RESOLVED, that the governing body of the above agency gives, and it does hereby give notice of intention to approve a contract between said governing body and the Board of Administration of the Public Employees' Retirement System, providing for participation of said agency in said retirement system, a copy of said contract and a copy of the summary of the major provisions of the proposed plan being attached hereto, as an "Exhibit ", and by this reference made a part hereof. By: Presiding Officer Title Date adopted and approved (New Agency) CON -301 (Rev 4/96) Ca1PERS California Public Employees' Retirement System CONTRACT Between the EXHIBIT Board of Administration California Public Employees' Retirement System and the Board of Directors Costa Mesa Sanitary District In consideration of the covenants and agreement hereafter contained and on the part of both parties to be kept and performed, the governing body of above public agency, hereafter referred to as "Public Agency ", and the Board of Administration, Public Employees' Retirement System, hereafter referred to as "Board ", hereby agree as follows.. 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. 3. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Employees other than local safety members (herein referred to as local miscellaneous members). c= S;GN "EXH!BIT 0^!'_. . 4. Any exclusion(s) shall remain in effect until such time as the Public Employees' Retirement System determines that continuing said exclusion(s) would risk a finding of non - compliance with any federal tax laws or regulations. If such a determination is contemplated, the Public Employees' Retirement System will meet with the Public Agency to discuss the matter and coordinate any required changes or amendments to the contract. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: a. SAFETY EMPLOYEES. 5. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 6. Public Agency elects to be subject to the following optional provisions: a. Section 20042 (One -Year Final Compensation). b. Section 20965 (Credit for Unused Sick Leave). C. Section 20903 (Two Years Additional Service Credit). d. Section 21023.5 (Public Service Credit for Peace Corps, AmeriCorps VISTA, or AmeriCorps Service). e. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. f. Sections 21624 and 21626 (Post- Retirement Survivor Allowance). 7. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members of said Retirement System. 8. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members. b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. C. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 9. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 10. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. J BOARD OF ADMINISTRATIOW,N\ BOARD OF DIRECTORS PUBLIC EMPLOYEES' RE�I ' ENT SYSTEM COSTA MESA SANITARY DISTRICT BY 5` BY KENNETH W. M , ZRDN, CHIEF PRESIDING OFFICER ` ACTUARIAL 4-EjyliPLOYER SERVICES DIVISION PUBLIC EM"EES' RETIREMENT SYSTEM Witness Date Attest: 0� / 1�J Clerk NEW AGENCY Org Id 7712 PERS- CON -702N (Rev 9102) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229 -2709 (888) CalPERS (225 -7377) CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the (governing body) (public agency) Lou (date) Clerk/Secretary Title PERS- CON -12 (rev. 1/96) of the CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229 -2709 (888) CalPERS (225 -7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and /or the increase in retirement benefit(s) have been made public at a public meeting of the of the (governing body) (public agency) on which is at least two weeks prior to the adoption of the (date) Resolution / Ordinance. Clerk/Secretary Title Date PERS- CON -12A (rev. 1/96) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM EMPLOYEE BALLOT Miscellaneous Member Group Costa Mesa Sanitary District The Board of Directors of the Costa Mesa Sanitary District shall not include in the contract with the Board of Administration of the California Public Employees' Retirement System any group if a majority of its members vote to disapprove the proposed plan. (Government Code Section 20470) The proposed plan is described in Exhibit A of the Costa Mesa Sanitary District's Resolution of Intention to Contract with CalPERS and is outlined in the attached Summary of Major Provisions. YES [ ] Do you approve the proposed plan? NO [ ] (New Agency /Adding a Category) (Rev. 4 /02j CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services (888) CalPERS (225 -7377) SUMMARY OF MAJOR PROVISIONS 2% @ 55 Formula (Section 21354) Local Miscellaneous Members SERVICE RETIREMENT To be eligible for service retirement, a member must be at least age 50 and have five years of CalPERS credited service. There is no compulsory retirement age. The monthly retirement allowance is determined by age at retirement, years of service credit and final compensation. The basic benefit is 2% of final compensation for each year of credited service upon retirement at age 55. If retirement is earlier than age 55, the percentage of final compensation decreases for each quarter year of attained age to 1.426% at age 50. If retirement is deferred beyond age 55, the percentage of final compensation increases for each quarter year of attained age to 2.418% at age 63. Final compensation is the average monthly pay rate during the last consecutive 36 months of employment, or 12 months if provided by the employers contract, unless the member designates a different period of 36 or 12 consecutive months when the average pay rate was higher. DISABILITY RETIREMENT Members permanently incapacitated from performing their duties are eligible for disability retirement provided they have at least five years of service credit. The monthly retirement allowance is 1.8% of final compensation for each year of service. The maximum percentage for members who have between 10.000 and 18.518 years of service credit is one -third of their final compensation. If the member is eligible for service retirement, the member will receive the higher allowance payable, service or disability. If provided by the employer's contract, the benefit would be a minimum of 30% of final compensation for the first five years of service credit. plus 1% for each additional year of service to a maximum benefit of 50% of final compensation. INDUSTRIAL DISABILITY RETIREMENT If provided by the employers contract, members permanently incapacitated from performing their duties as a result of a job - related injury or illness may receive 50% of their final compensation (or more by additional contract provisions). The industrial disability retirement allowance for members who entered membership in a miscellaneous category after January 1, 1980. cannot exceed the amount that would be payable for a service retirement if employment had continued to age 63. This limit may not apply if the member was disabled because of a direct violent act upon their person or as a result of hazardous and dangerous duty required for the position. If the member is eligible for service retirement, the service retirement allowance is payable if greater than the industrial disability retirement allowance. PRE - RETIREMENT DEATH BENEFITS Basic Death Benefit: This benefit is a refund of the member's contributions plus interest and up to six months' pay (one month's salary rate for each year of current service to a maximum of six months). PERS•CON -50 (Rev 1102) 1957 Survivor Benefit: An eligible beneficiary may elect to receive either the Basic Death Benefit or the 1957 Survivor Benefit. The 1957 Survivor Benefit provides a monthly allowance equal to one -half of the highest service retirement allowance the member would have received had he /she retired on the date of death. The 1957 Survivor Benefit is payable to the surviving spouse until death or to eligible unmarried children until age 18. 1959 Survivor Benefit: (If provided by the employer's contract and the member is not covered under social security). A surviving spouse and eligible children may receive a monthly allowance as determine by the level of coverage. This benefit is payable in addition to the Basic Death Benefit or 1957 Survivor Benefit. Children are eligible if under age 22 and unmarried. Pre - Retirement Optional Settlement 2 Death Benefit: (If provided by the employer's contract.) The spouse of a deceased member, who was eligible to retire for service at the time of death, may to elect to receive the Pre - Retirement Optional Settlement 2 Death Benefit in lieu of the lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the member would have received if he /she had retired for service on the date of death and elected Optional Settlement 2, the highest monthly allowance a member can leave a spouse. COST -OF- LIVING ADJUSTMENTS The cost of living allowance increases are limited to a maximum of 2% compounded annually unless the employer's contract provides a 3, 4, or 5% increase. DEATH AFTER RETIREMENT The lump sum death benefit is $500 (or $600, $2,000, $3,000. $4,000 or $5,000 if provided by the employer's contract) regardless of the retirement plan chosen by the member at the time of retirement. TERMINATION OF EMPLOYMENT Members who have separated from employment may elect to leave their contributions on deposit or request a refund of contributions and interest. Those who leave their contributions on deposit may apply at a later date for a monthly retirement allowance if the minimum service and age requirements are met. Members who request a refund of their contributions terminate their membership and are not eligible for any future benefits unless they return to CalPERS membership. EMPLOYEE CONTRIBUTIONS Miscellaneous members covered by the 2% @ 55 formula contribute 7% of reportable earnings. Those covered under a modified formula (coordinated with Social Security) do not contribute on the first 5133.33 earned. The employer also contributes toward the cost of the benefits. The amount contributed by the employer for current service retirement benefits generally exceeds the cost to the employee. In addition, the employer bears the entire cost of prior service benefits (the period of time before the employer provided retirement coverage under CaIPERS). All employer contribution rates are subject to adjustment by the CaIPERS Board of Administration. PERS- CON -50 (Rev. 1,'02) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229 -2709 (888) CalPERS (225 -7377) CERTIFICATION OF EMPLOYEE ELECTION I hereby certify that the following employees of the Costa Mesa Sanitary District have expressed their approval or disapproval of said agency's participation in the California Public Employees' Retirement System on the basis described in the Resolution of Intention adopted by said agency's governing body on , in such manner as to permit each employee to separately and secretly express his choice and that the outcome of such election was as follows: Number of employees eligible to vote Local Miscellaneous Members as defined in Govt. Code Section 20383 (New Agency /Adding a Category) PERS- CON -15N (Rev. 9/03) Number of votes approving said participation Clerk or Secretary Date Number of votes disapproving said participation CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229 -2709 (888) CalPERS (225 -7377) 1959 SURVIVOR BENEFITS CERTIFICATION OF EMPLOYEE ELECTION I hereby certify the following local miscellaneous employees of the Costa Mesa Sanitary District were given an opportunity to elect to be subject to Government Code Section 21574, Fourth Level of 1959 Survivor Benefits, as described in the Resolution of Intention adopted by said Agency's governing body on Number of employees Number employees Number of employees eligible to elect coverage electing to be covered electing not to be covered The attached list identifies the names and Social Security numbers of the CalPERS members eligible to elect such coverage and indicates the choices made. Clerk or Secretary Date PERS- CON -18 (Rev. 10/00) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services Fourth Level 1959 Survivor Benefits Ballot (888) CalPERS (225 -7377) Employee Name: Social Security Number: For use by members employed by who are not covered by Social Security on the effective date of the enacting contract to elect to be covered by CalPERS 1959 Survivor Benefits or not to be covered by CalPERS 1959 Survivor Benefits. Please be advised that your election to be covered by the 1959 Survivor Benefits is irrevocable and will remain in effect until you retire, change employers, terminate your membership in CalPERS, or come under Social Security coverage. As an employee eligible to participate in this election, should you choose not to be covered by the 1959 Survivor Benefits at this time, you will be provided a second opportunity to elect the coverage within a three month period beginning nine months following the effective date of the agency's contract for such coverage. This second election will provide an opportunity to elect the 1959 Survivor Benefits, however, it will not provide an opportunity to cancel a previous election for 1959 Survivor Benefits coverage. BEFORE MAKING ELECTION PLEASE READ IMPORTANT INFORMATION ON PAGE 2 FAILURE TO EXECUTE AND RETURN THIS FORM TO YOUR AGENCY ON OR BEFORE SHALL BE DEEMED AN ELECTION NOT TO BE COVERED BY CaIPERS 1959 SURVIVOR BENEFITS. Vote by marking only one of the spaces provided below which indicates your choice: [ ] I elect to be covered by CalPERS 1959 Survivor Benefits, as set forth in Section 21574. [ ] I elect not to be covered by CalPERS 1959 Survivor Benefits, as set forth in Section 21574. Signature Date Con24c (Rev. 1 /00) Page 1 Summary of Provisions Fourth Level of 1959 Survivor Benefits Government Code Section 21574 The 1959 Survivor Benefits are paid monthly to certain survivors of a member who dies before retirement. The covered member's survivors receive the following monthly allowances regardless of whether the member was eligible to retire at the time of death. Surviving spouse with two or more dependent children; or three or more dependent children alone ................................... ............................... $2,280 Surviving spouse with one dependent child; or two dependent children alone........................................... ............................... .........................$1,900 One dependent child; or surviving spouse at age 60, or older; or dependent parents................................................................. ............................... $ 950 Definitions of Survivors A dependent child is one under the age of 22 and unmarried, or a disabled child of any age whose disability began before and has continued without interruption after attainment of age 22. Concurrent Benefits The 1959 Survivor Benefits would be payable in addition to the following benefits, if applicable: Basic Death Benefit - This benefit is a refund of the member's contributions plus interest and up to six month's pay (one months' salary rate for each year of service up to a maximum of six months). 1957 Survivor Benefit - This benefit is a monthly allowance equal to one -half of the unmodified retirement allowance the member would have received had he /she retired on the date of death. Special Death Benefit (applies to local safety members only) - This benefit is a monthly allowance equal to one -half of your final compensation. The 1959 Survivor Benefits payable in any month shall be reduced by the amount of the Special Death Benefit. Cost To The Employee The cost to the employee is $2.00 monthly (non - refundable), in addition to normal retirement contributions. Con24c(Rev 1/00) Page 2 • sO� "x COUNTY OF ORANGE O CI v m `r INTEGRATED WASTE MANAGEMENT DEPARTMENT 9tIF0R� April 21, 2004 To: Waste Disposal Agreement Contracted Entities • Orange County Cities • County Sanitary Districts • Joint Powers Authority • Commercial Solid Waste Haulers Subject: Renewal of Waste Disposal Agreements (WDA's) Dear WDA Contracted Entity: Janice V Goss, Director 320 N. Flower Street, Suite 400 Santa Ana, CA 92703 www.ociandfills.com Telephone: (714) 834 -4000 Fax: (714) 834AI83 As you know, the County of Orange currently has WDA's with contract entities that include Orange County cities, sanitary districts, a joint powers authority, and commercial solid waste haulers. Under these Agreements, the contracted entities guarantee that all solid waste generated in their jurisdictions will be delivered to the County's landfill system. These Agreements currently guarantee a contract rate of $22.00 per ton for a ten -year period through June 30, 2007. In accordance with Article VI, Section 6.1 (B), these Agreements are subject to a renewal option that specifies they may be renewed by mutual agreement of the parties, on or before June 30, 2004, for an additional term. of ten years on the same terms and conditions as are applicable during the Initial Term of the Agreements. The contracted entities shall give the County written notice of their irrevocable election to renew their Agreements on or before June 30, 2004. If the parties do not renew the Agreements by June 30, 2004, the Agreements shall expire on June 30, 2007. In accordance with Article VI, Section 6.1 (C), in connection with the parties right to renew the Agreements pursuant to Section 6.1 (B), the parties shall, on or before June 30, 2004, negotiate an applicable change in the contract rate for such renewal term. In determining a new contract rate, the parties may take into consideration the following parameters, including but not limited to: • Actual cost of operations • :Population growth • Increase or decrease in available tonnage • Economic and disposal market conditions in the Southern California region • Changes in transportation and technology • Closure and expansion of landfills • Capacity of the Disposal System • Available reserves WDA Renewal Ltr Page I of 3 The Integrated Waste Management Department (IWMD) is in the process of considering extending the lifespan of the Frank R. Bowerman (FRB) and the Olinda Alpha ( Olinda) Landfills. The evaluation process will require substantial effort that must be completed before IWMD can begin negotiations with the contracted entities regarding a new contract rate and a long -term commitment extension for the Agreements. The evaluation process will include, but may not be limited to, the following: • Addressing Environmental Impact Report and California Environmental Quality Act (CEQA), remediation, and mitigation issues. • Negotiating Memorandums of Understanding with the affected cities. • Reviewing the IWMD's Regional Landfill Options for Orange County (RELOOC) plan to determine what the landfill system will be after 2013 (the targeted closure date for Olinda). • Conducting a cash flow analysis to determine an appropriate contract rate and contract extension timeline. In recognition of the requirements necessary to complete the process for evaluating the possible expansions of FRB and Olinda, and address the renewal of the WDA's, the IWMD proposes that the WDA's be amended to include the following provisions: 1. Amend the "Initial Term" of the Agreement by increasing it three (3) years from June 30, 2007 to June 30, 2010. 2. Maintain the current contract rate of $22.00 per ton through June 30, 2010. 3. Amend the "Option to Renew" provision (Section 6.1., subparagraph B) to state that the Agreement shall be subject to renewal (the "Renewal Term ") by mutual agreement of the parties on or before June 30, 2008, for an additional term of two years. The City shall give the County written notice of its irrevocable election to renew the Agreement on or before June 30, 2008. If the parties do not renew the Agreement by June 30, 2008, the Agreement shall expire on June 30, 2010. 4. Amend the "Contract Rate During the Renewal Term" to include that the parties shall, on or before June 30, 2008, negotiate an applicable change to the Contract Rate for such renewal term. 5. Amend the "Calculation of Average Annual Inflation" chart in Section 4.1 (F) of the Agreement by extending the chart three years. 6. Amend the In- County and Importation Tonnage Targets in Appendix 2 by extending the charts three years. The figures shown for the three additional years reflect the minimum tonnage amounts necessary to maintain the $22.00 per ton Contract Rate. The proposed amendment to 'the WDA has been reviewed and approved by the City Managers' Solid Waste Working Group (SWWG) and is enclosed for your review and consideration. We believe the amendment provides the contracted entities with the best possible strategy aimed at addressing the solid waste needs of Orange County and still continuing to maintain one of the lowest tipping fees in Southern California through at least 2010. WDA Renewal Ltr Page 2 of 3 • • Please sign and submit the attached four (4) original amendments to Brian A. Uveda, Contract Administrator, no later than Wednesday, May 26, 2004. If you have any questions concerning the amendment please contact Brian at (714) 834 -4105 or brian.uyeda@iwmd.ocgov.com. Sincerely, Janice V. Goss, Director JVG:bu Attachments cc: Richard Acker, w/o attachments Espi Garcia, w/o attachments Ronald P. Pierre, w/o attachments Brian Uveda, w /attachments City Recycling Coordinators, w /one copy of attachments WDA Renewal Ltr Page 3 of 3 AMENDMENT NO. 1 TO WASTE DISPOSAL AGREEMENT WITH COSTA MESA SANITARY DISTRICT This Amendment No. 1 is made and entered into on this day of 2004, by and between the COUNTY OF ORANGE, a political subdivision of the State of California (hereinafter "COUNTY ") and the sanitary district designated above (hereinafter "DISTRICT "). The DISTRICT is a sanitary district in the COUNTY formed pursuant to the Sanitary District Act of 1923, codified at Ca. Ann. Health & Safety Code Section 6400 et seq. RECITALS WHEREAS, COUNTY and DISTRICT entered into a Waste Disposal Agreement (herein after "Agreement ") on April 8, 1997, guaranteeing that DISTRICT shall deliver or cause to be delivered to the Orange County Landfill Disposal System, all of the municipal solid waste generated within its jurisdiction for ten years; and WHEREAS, COUNTY and DISTRICT have agreed to a three -year extension of the Agreement, amending the provisions for the Initial Term, Option to Renew, Calculation of Average Annual Inflation, and Cumulative Tonnage Targets for County and Importation Acceptable Waste. NOW, THEREFORE, the parties hereto agree as follows: 1. Section 6.1. subparagraphs (A), (B), and (C) are deleted and replaced with the following: (A) Initial Term. This Agreement shall become effective,. shall be in full force and effect and shall be legally binding upon the DISTRICT and the COUNTY from the Contract Date and shall continue in full force and effect until June 30, 2010, unless earlier terminated in accordance with its terms, in which event the Term shall be deemed to have expired as of the date of such termination. (B) Option to Renew. This Agreement shall be subject to renewal by mutual agreement of the parties, on or before June 30, 2008, for an additional term of ten years (the "Renewal Term ") on the same terms and conditions as are applicable during the Initial Term hereof. The DISTRICT shall give the County written notice of its irrevocable election to renew this Agreement on or before June 30, 2008. If the parties do not renew this Agreement by June 30, 2008, the Agreement shall expire on June 30, 2010. (C) Contract Rate During Renewal Term. In connection with the parties' right to renew this Agreement for an additional ten -year term pursuant to Section 6.1(B), the WDA Amend 1 Costa Mesa Sanitary District Page 1 of 6 parties shall, on or before June 30, 2008, negotiate an applicable change to the Contract Rate for such renewal term. In determining any revisions to the Contract Rate to be applicable during any renewal period, in addition to the circumstances described in Section 4.2(A), the parties may take into consideration the following parameters, including but not limited to: (i) actual cost of operations; (ii) population growth; (iii) increase or decrease in available tonnage; (iv) economic and disposal market conditions in the Southern California region; (v) changes in transportation and technology; (vi) closure and expansion of nearby landfills; (vii) capacity of the Disposal System; and (viii) available reserves. 2. Section 4.1 (F) is deleted and replaced with the following: (F) Calculation of Average Annual Inflation. For purposes of Section 4.2(A)(ii), the inflation shall be calculated as the change in the Producer Price Index, Finished Goods ( "PPI" ), reported by the Bureau of Labor Statistics of the United States Department of Labor between July of the year of calculation and July 1, 1997. Average annual inflation shall be deemed to exceed 4% if the ratio between the PPI Index for July for the year of calculation (calculated in accordance with the formula below) and July 1997 exceeds the ratio corresponding to such year of calculation on the table below. The ratio shall be calculated in accordance with the following formula: (July PPI Index of Calculation Year / PPI Index for July 1997) Year of Calculation Ratio July 1, 1997 1.0000 July 1, 1998 1.0400 July 1, 1999 1.0816 July 1, 2000 1.1248 July 1, 2001 1.1698 July 1, 2002 1.2166 July 1, 2003 1.2653 July 1, 2004 1.3159 July 1, 2005 1.3685 July 1, 2006 1.4233 July 1, 2007 1.4802 July 1, 2008 1.5394 July 1, 2009 1.6010 July 1, 2010 1.6650 WDA Amend 1 Costa Mesa Sanitary District Page 2 of 6 • • In the event the PPI is no longer published during the term of this Agreement, such other index identified by the Bureau of Labor Statistics or otherwise generally accepted as a replacement for PPI shall be used for purposes of this Service Agreement. APPENDIX 2 is deleted and replaced with the following: This space intentionally left blank. WDA Amend 1 Costa Mesa Sanitary District Page 3 of 6 • APPENDIX 2 Cumulative In- County Tonnage Target to be Used for Purposes of Section 4.2 (B) Year a� Cumulat�ye -Ouna 1997-1998 2,277 2,277 1998- 1999 2,134 4,411 1999-2000 2,007 6,418 2000-2001 2,025 8,443 2001-2002 2,042 10,485 2002-2003 2,060 12,545 2003-2004 2,079 14,624 2004-2005 2,096 16,720 2005-2006 2,111 18,831 2006-2007 2,128 20,959 2007 - 2008 * 4,033 24,992 2008 - 2009 * 4,437 29,429 2009 - 2010 * 4,556 33,985 Note: Tons are expressed in thousands. * Fiscal years reflect the minimum tonnage necessary to support the Contract Rate. Annual Importation Tonnage Target to be Used for Purposes of Section 4.2 (C) s _., #..s. ..: Fiscal Year , a „F,Im ort .Tonria e 1 1997- 1998 1,428 2 1998- 1999 1,428 3 1999-2000 1,428 4 2000-2001 1,428 5 2001 -2002 1,428 6 2002-2003 1,428 7 2003-2004 1,428 8 2004-2005 1,428 9 2005-2006 1,428 10 2006-2007 1,428 11 2007 - 2008 * 1,166 12 2008 - 2009 * 1,166 13 2009 - 2010 * 1,166 Note: Tons are expressed in thousands. * Fiscal years reflect the minimum tonnage necessary to support the Contract Rate. WDA Amend 1 Costa Mesa Sanitary District Page 4 of 6 0 4. All other terms and conditions of the Agreement will remain unchanged and DISTRICT agrees to comply with all terms and conditions of the Agreement. • This space intentionally left blank. WDA Amend 1 Costa Mesa Sanitary District Page 5 of 6 I • IN WITNESS WHEREOF, the parties have executed this First Amendment to Agreement the day and year first above written. "COUNTY" COUNTY OF ORANGE Date: By: Janice V. Goss, Director Integrated Waste Management Department APPROVED AS TO FORM: OFFICE OF THE COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA Date: By: Date: By: Date: By: Date: By: WDA Amend 1 Costa Mesa Sanitary District Page 6 of 6 RD Staff: 714- 754 -5043 EARTH DAY CIEBRATION AT OCC 4 -22 -04 • Contact: Benjamin Jenkins: 714- 642 -9365; 60 visitors to CMSD Public Outreach booth; CA Staff: 714- 754 -5043 Director Dan WorthiiOn — Recycling Presentation to Rea Elementary 4-2& Contact: Alida Castaneda, 949 -515- 6905, x2534; 32 Students, Oh grade; In CM - SD Staff: 714 - MENTAR SCHOOL RECYCLING PRESENTATION 5 -04-04 754 5043 KAISER 9: Elementary School, 5 -04 -04 Recycling Presentation — 108 2d & 3'd graders; Director Worthington and Assistant Manager Tom Fauth