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Agenda Packets - Board - 2006-04-20-,Costa Mesa Sanitaq District ... an Independent Special District Greg Woodside Vice President AGENDA Jim Ferryman President Art Perry Secretary Arlene Schafer Dan Worthington Director Director Regular Meeting — Thursday, April 20, 2006 1. CALL TO ORDER — 6:00 p.m. — 628 W. 19t" Street, Costa Mesa II. PLEDGE OF ALLEGIANCE — Director Schafer 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 members 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 City /Districts Liaison Committee Meeting — March 17, 2006 2. Recycling Committee Meeting — March 20, 2006 3. Investment Oversight Committee Meeting Minutes — March 23, 2006 • 4. Regular Meeting — March 23, 2006 RECOMMENDED ACTION Protecting our community's Health dy providing solid waste and sewer collection services. ,gov Costa .Mesa Sanitary District April 20, 2006 AGENDA Page 2 RECOMMENDED ACTION Manager's Reports 5. Refunds No Refunds 6. Occupancy Report and payment to Costa Mesa Disposal - April 2006 Approve / 7. Monthly Spill Report to Regional Water Quality Control Board (RWQCB) Receive & File Engineer's Reports 8. Project Status Report Receive & File Treasurer's Reports 9. Financial Reports as of March 31, 2006 Receive & File 10. Treasurer's Reports as of March 31, 2006 Receive & File 11. Warrant Register for the month of March 2006 in the amount of Ratify Payments $641,226.94 12. Directors' Compensation and Reimbursement of Expenses for the Approve Compensation Month of March 2006 & Ratify Expenses -------------------------------------- - - - - -- -END OF CONSENT CALENDAR-------------------------------------------- VI. WRITTEN COMMUNICATIONS VIf. PUBLIC COMMENTS 3 �� �f�r� VIII. MANAGER'S REPORTS A. Trash Collection Program����L 1. Opportunities for Decreasing CMSD Trash Collection Rate Consider Letter Y✓t Ru "Qw4mV LV fo CA *-R from Manager 2. Request from CR &R for Pass - Through Fuel Costs and Other Provisions Consider 3. Transfer of Ownership of Trash Containers to Cos Mesa Disposal Consider a�f�R CV41WW (: 4F RAY 194 M L 4. Projected 2006 -2007 Trash Collection Program Budget Accept Report 3Yo 6041C97- B. Sewer Program 1. Field M 'ntenance Services 40LS 14- 0+S �rV4fr/Z J_XKK Implementation Update �Q 4&K K RPCc)k& �/t�v7t Cc • 2. Preliminary 2006 -2007 CIP Discussion 3. District Yard Update Y3 4 tV I,?"' Ir � J� � /(��� Consider Protecting our community's health by providing solid waste and sewer collection services. www.crosdcagov Costa Mesh Sanitary District AGENDA • C. CMSD Strategic Plan 1. Year 2005/2006 Strategic Planning Action Items / 2. New District Headquarters / a. Building and Grounds Ad Hoc Committee &r - hu�_WN. ✓ ✓✓ i. da n Up to 0 Roof, Gutters and Column Improvements D. Recycling Reports �Sy 1. Waste Diversion Report — March 2006 E. Contract Payment to CR Transfer for Recycling Services and Disposal 1. Payment for March 2006 Services Standardized Trash Container Program Reports �4,N &K�r G. Recycling Committee —Monday, April 17,2006— 12:00 p.m., ® CMSD Board Room, 628 W. 19`h Street, Costa Mesa (Directors Woodside and Perry) 1. Recycling Committee Goals for 2005/2006 -15V 3 April 20, 2006 Page 3 RECOMMENDED ACTION Receive & File Accept Report Receive & File Ratify Subject to Verification of Diversion Report by Staff Consider Update on Activities Universal Waste — Requirements Effective February 9, 2006 & - M£ exJ Accept Report a. Recycling Event — Saturday, June 17, 2006 b. Updated Flyer Tour of CR &R and Landfill — May 23, 2006 — Newport Heights Elementary School 4. Costa Mesa Public Safety Emergency Services EXPO — Sunday, M y z 006 H. Review Request for Adjustment of Compensation for General Counsel Accept Report Accept Report Accept Report Accept Report 1. Closed Session — Personnel Exception Government Code Section 54957 Closed Session (Can be moved (Note: The Brown Act authorizes a closed "personnel session" to discuss to end of meeting) an independent contractor who functions as an officer or employee of the agency. This exception would apply to the General Counsel. The Brown ® Act only authorizes the review of performance in closed session. Compensation may not be finally set in closed session. Government Code Sections 54957, 54957.6) Protecting our community's keafth by providing sorrid waste and sewer collection services. www.crosdcagov Costa .Mesa Sanitary District April 20, 2006 AGENDA Page 4 RECOMMENDED ® ACTION 2. After reconvening from closed session, take action with respect to the Consider Increase request in open session Review Request for Adjustment of Compensation for Treasurer 1. Closed Session — Personnel Exception Government Code Section 54957 Closed Session (Can be moved to (Note: The Brown Act authorizes a closed "personnel session" to discuss end of meeting) an independent contractor who functions as an officer or employee of the agency. This exception would apply to the Treasurer. The Brown Act only authorizes the review of performance in closed session. Compensation may not be finally set in closed session. Government Code Sections 54957, 54957.6) 2. After reconvening from closed session, take action with respect to the Consider Increase request in open session IX. ENGINEER'S REPORTS A. Waste Discharge Requirements (WDR) 1. General Update Accept Report • B. Development at 1901 Newport Blvd — Rutter Development It t tT-J Approve and Execute 4 pU1mi * / 6OK Agreement C. Report on Emergency Work — President Pumping Station Accept Report X. TREASURER'S REPORTS A. FY- 2006/2007 Budget Special Meetings Meetings Scheduled for May 4 & May 25, 2006 B. Selection of Independent Auditors LJSF CAS 0fi 4WMA 4(,1aC-fhwT- Execute Contract .PJJ£iqL , fANs -�-CQ uo C. Tax and Revenue Anticipation Note (TRAN) ���/ Update 6 XI. ATTORNEY'S REPORTS A. Costa Mesa Disposal and CR Transfer Master Agreement �ds1f, Consider Additional Y-- 4 4 � _� Provisions to Agreement B. JIMNI Systems Inc. Agreement for Pumping Station Maintenance Execute Agreement C. AB 1234 (Sunshine Law) Interpretation Accept Report XII. LOCAL MEETINGS (Includes Reports by all Directors Representing the District) A. Orange County Sanitation District (OCSD) — April 19, 2006 Accept Report (President Ferryman) ^Y (0c To 7r-) Protecting our community's health by providing solid waste and sewer collection services. www.crosdcagov Costa .Mesa SanitarY,q .district AGENDA • B. C. D. E. F. April 20, 2006 Page 5 RECOMMENDED ACTION Santa Ana River Flood Protection Agency (SARFPA) K Accept Report (Director Perry) `"1`•�%� ., �+�,�� K� Independent Special Districts of Oran e County (ISDOC) Accept Report (Director Schafer) 1. Quarterly Meeting, Thursday, March 30, 2006 J�C/Uc� x1,4 Accept Report Local Agency Formation Commission (LAFCO) (Director Schafer) California Special Districts Association (CSDA) (Director Schafer) California Association of Sanitation Agencies (CASA) G. Other Meetings Qualifying for Reimbursement under, CMSD Ordinance No. 55, Operations Code Section �,3. /0j11. f030 XIII. OLD BUSINESS l./�` O — 4A �" @- XIV. NEW BUSINESS 0. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT n U Accept Report Accept Report Accept Report Report on Matters Pertaining to CMSD Protecting our community's health by providing solid waste and sewer collection services. www.crosdcagov r � L_J A Adesa Consolidated \Nater District CITY /DISTRICTS LIAISON COMMITTEE MEETING MINUTES FRIDAY, March 17, 2006 7:30 a.m. COSTA MESA CITY HALL 5T" FLOOR CONFERENCE ROOM 77 Fair Drive Costa Mesa, California 92626 Mesa Committee Members: Trudy Ohlig -Hall, Vice President Fred Bockmiller, Vice President Diana M. Leach, General Manager IS City Committee Members: Allan Mansoor, Mayor Allan Roeder, City Manager CMSD Committee Members: James Ferryman, President Arlene Schafer, Director Rob Hamers, Manager /District Engineer Discussion was held on the following items: I. Desalination Project in Huntington Beach Ms. Leach described the proposed desalination plant in Huntington Beach as proposed by the Poseidon Resources Corporation: The project is still in its conceptual stages and the Poseidon group has held general meetings with MCWD. In order for the Poseidon group to reach their goal of providing water to south Orange County, a new pipeline would have to be constructed from the proposed plant in Huntington Beach through Costa Mesa to a point of connection with a 42 -inch water line in Del Mar Avenue just east of Newport Blvd. MCWD has not received any definite proposals from the Poseidon group. MCWD and the City agreed that future proposals by the Poseidon Group would be made to both MCWD and the City due to the significant impacts of ® constructing a pipeline through Costa Mesa. 4 CITY /DISTRICTS LIAISON COMMITTEE MEETING March 17, 2006 MINUTES Page 2 • II. Santa Ana Heights and Banning Ranch Annexations Mr. Roeder described the City of Costa Mesa's position regarding annexing unincorporated areas in and around the City as well as the recent actions by the City of Newport Beach regarding west Santa Ana Heights. The City of Costa Mesa made application to Orange County LAFCO to annex west Santa Ana Heights and the majority of the Banning Ranch. Mr. Roeder described the excessive service delivery costs and other problems of a city or county serving an island and the City of Costa Mesa's desire to have an orderly and practical boundary line between the City of Costa Mesa and the City of Newport Beach. III. City's Proposed Utility Users Tax Mayor Mansoor described his goal of having the residents of the City vote on whether to establish a tax to fund the undergrounding of the Edison, telephone, and cable TV lines throughout the City. A very preliminary cost is $800 million and the tax would require a two - thirds voter approval. Mr. Roeder stated the City does have the authority to require some or all of the utilities in the City to collect the tax if approved by the voters. Some of the logistics being discussed are the fact that some areas of the City already have underground facilities plus the sewer and water lines owned by the Sanitary District and the Water District are underground. is IV. LAFCO MSRs and Spheres of Influence Director Ohlig -Hall stated her desire for the three agencies to work together during the Municipal Service Review process. The City and Sanitary District agreed that a working group would benefit the agencies by promoting discussion of common issues and garnering additional cooperation between the three agencies. V. Household Hazardous Waste (HHW) Collection Mr. Flamers explained the on -going joint program between the City and the Sanitary District that results in residents being provided free pickup of HHW at their homes and the new February 9, 2006 regulations that require batteries and other electronic waste be recycled instead of taken to landfills. Director Schafer described the discussion at the recent Chamber of Commerce meeting where speakers were unsure how compliance with the new regulations would be achieved. Mr. Hamers described the Sanitary District's compliance with the new regulations for its single family and small multi - family trash collection program through the sorting procedure at the material recovery facility in Stanton. Mr. Flamers stated the City's recycling coordinator should be contacted regarding how compliance is achieved in the City's commercial trash collection program. is CITY /DISTRICTS LIAISON COMMITTEE MEETING March 17, 2006 MINUTES Page 3 • The next meeting of the Liaison Committee was scheduled for Friday, June 16, 2006 at 7:30 a.m. at the Costa Mesa Sanitary District at 628 W. 19th Street, Costa Mesa. is Public Comments There were no public comments. The meeting was adjourned at 9:30 a.m. Arthur Perry, Secretary Costa Mesa Sanitary District James Ferryman, President Costa Mesa Sanitary District • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING MARCH 20, 2006 The Costa Mesa Sanitary District Recycling Committee met at 12:00 p.m. at 628 W. 19th Street, Costa Mesa. Directors Present: Greg Woodside, Dan Worthington Staff Present: Rob Hamers, Tom Fauth, Joan Revak Director Woodside called the meeting to order at 12:00 p.m. RECYCLING COMMITTEE GOALS FOR 2005/2006 The Committee reviewed the 2005/2006 recycling goals. UNIVERSAL WASTE — REQUIREMENTS EFFECTIVE FEBRUARY 9, 2006 Mr. Fauth addressed the Universal Waste requirements that went into effect February 9, 2006 and proposed holding an E -Waste Recycling event with the City of Costa Mesa (CCM). Lorraine Watkins of HMR USA, Inc. met with Ms. Revak on February 2, 2006 to discuss a -waste recycling services offered by HMR and provided the District with a proposal for an E -Waste Collection Event. HMR provides all labor, equipment and transport trailers to run the event including removal of all material from the collection site the date of the event. Within ten business days following the event, HMR provides a report detailing the amount of various materials collected. HMR complies with all Federal, State and local laws and will provide proof of workers compensation insurance, proof of commercial general liability insurance and commercial automobile liability insurance with the Costa Mesa Sanitary District named as additional insured. The success of an E -Waste Day is based on how well the event is promoted. The cost is dependent on pounds collected; with 25,000 pounds collected, cost is $1,000; 25,000 to 50,000 pounds is breakeven — no costs; and with 50,000 pounds, HMR pays $1,000 ($500 each to CMSD and CCM). Ms. Theriault, CCM Management Analyst, informed the District of approval from the Maintenance Services Manager to use the City Corporation Yard for a joint event. Proposed dates are June 17 or June 3, 2006. Protecting our community's health by providing solid waste and sewer collection services. crosdcagov MUS Costa Mesa Sanitary District Minutes of Recycling Committee Meeting March 20, 2006 Page 2 Mr. Harriers requested Mr. Fauth obtain clarification on E -Waste and HHW issues in order to present clear directions for residents in the upcoming CMSD newsletter, including contacting the Orange Coast College Recycling Center on their status as far as collecting HHW. TOUR OF CR&R AND LANDFILL — FEBRUARY 21, 2006 Mr. Fauth reported a group of Home School students toured the CR &R Recycling facility and the Bowerman landfill on February 21, 2006. Director Worthington suggested having a Board member accompany the tour groups on future tours and this will be addressed at the March 23, 2006 Board of Directors meeting. A presentation on plastics recycling and vermicomposting was made to a Cub Scout group on March 1, 2006 and one is planned on March 22, 2006 to another group of Cub Scouts. SPRING 2006 NEWSLETTER (TRASH) Mr. Harriers is drafting the Spring District Newsletter and requested suggestions for pertinent topics from the Recycling Committee. 0 PUBLIC COMMENTS There were no public comments. The meeting was adjourned at 1:08 p.m. Secretary President • Protecting our community's health by providing solid waste and sewer collection services. crosdcagov • COSTA MESA SANITARY DISTRICT MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING March 23, 2006 CALL TO ORDER The meeting was called to order at 5:30 p.m. by the District Manager, Mr. Rob Hamers. ROLL CALL Committee Members Present: NEW BUSINESS PUBLIC COMMENTS ADJOURNMENT Approved by: President Jim Ferryman (rotating committee member) Director Dan Worthington (rotating committee member) Mr. Rob Hamers, Manager/ District Engineer Committee Members Absent: None Staff Members Present: Ms. Wendy Davis, Treasurer Ms. Joan Revak, Board Secretary/Clerk of the District Ms. Sherry Kallab, Accountant Tax and Revenue Anticipation Note Program Ms. Davis discussed California Communities Tax and Revenue Anticipation Note Program and the timeline for participating. Staff handed out two preliminary cash flow worksheets (trash only and both trash and sewer combined). Also discussed was the cost of issuing a TRAN in relation to yields on current investments. There were no items discussed under public comments. The meeting adjourned at 5:58 p.m. Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District • Board of Directors Board of Directors • C COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on March 23, 2006, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. President Ferryman called the meeting to order at 6:00 p.m. PLEDGE OF ALLEGIANCE Director Perry led the Pledge of Allegiance. INVOCATION Director Woodside gave the invocation. ROLL CALL DIRECTORS PRESENT: James Ferryman, Greg Woodside, Art Perry, Arlene Schafer, Dan Worthington DIRECTORS ABSENT: None STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Wendy Davis, Treasurer; Sherry Kallab, Accountant; Debbie Bjornson, Permit Processing Specialist; Ron Shef, Ordinance Enforcement Officer OTHERS PRESENT: None _ COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 2 . ............................... CONSENT CALENDAR . ............................... Director Schafer motioned to approve the Consent Calendar as presented. Director Worthington seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Regular Committee Meeting — February 8, 2006 Minutes of Special Meeting — February 9, 2006 Minutes of Recycling Committee Meeting — February 10, 2006 Minutes of Special Meeting — February 27, 2006 Refunds The Minutes of the Regular Meeting of February 8, 2006, were approved as distributed. The Minutes of the Special Meeting of February 9, 2006 were approved as distributed. The Minutes of the Recycling Committee Meeting of February 10, 2006, were approved as distributed. The Minutes of the Special Meeting of February 27, 2006 were approved as distributed. There were no refunds for the month of February 2006. Occupancy Report and The Trash Occupancy Count documented a decrease Payment of $194,836.06 of 13 units for the occupancy report for solid waste to Costa Mesa Disposal — collection as of March 1, 2006. Therefore, the total March 2006 for March is 21,281. Board directed Staff to prepare a warrant for $194,836.06 to Costa Mesa Disposal on April 1, 2006, for March 2006 collection count of 21,281. Monthly Spill Report to The Monthly Spill Report to the Regional Water Regional Water Quality Quality Control Board (RWQCB) for February 2006 Control Board (RWQCB) was accepted as submitted. • • I COSTA MESA SANITARY DISTRICT AV u" MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 3 - Minutes of-Safety /Loss Minutes of the CMSD Safety /Loss Control Meeting Control Meeting — held on February 7, 2006 were accepted as February 7, 2006 submitted. ENGINEER'S REPORTS Project Status Report TREASURER'S REPORTS Financial Report as of January 31, 2006 Financial Report as of February 28, 2006 Treasurer's Report as of February 28, 2006 The Project Status Report for March 2006 was accepted as submitted. . The Financial Report as of January 31, 2006 was accepted as submitted. The Financial Report as of February 28, 2006 was accepted as submitted. The Treasurer's Report as of February 28, 2006 was accepted as submitted. Warrant 2006 -9 for Warrant Resolution #CMSD 2006 -8 was approved, February 2006 in the authorizing the President and Secretary to sign the amount of $619,254.16 warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $619,254.16. Directors Expenses for the Director Compensation and Expense Reimbursement Month of February 2006 for the Month of February 2006 were approved and ratified as follows: Director Ferryman: $1,020.00 Director Perry: $680.00 Director Schafer: $1,020.00 + $14.45 Director Woodside: $510.00 Director Worthington: $850.00 .......................... END OF CONSENT CALENDAR .......................... COSTA MESA SANITARY- DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING --� MARCH 23, 2006 PAGE 4 • WRITTEN COMMUNICATIONS Ms. Revak presented a letter from Kaiser Elementary School expressing appreciation for the $400.00 award for participation in the CMSD 2005 Telephone Book Recycling Program. PUBLIC COMMENTS There were no public comments made. MANAGER'S REPORTS PRELIMINARY 2006 -2007 CAPITAL IMPROVEMENT PROJECTS & SEWER BUDGET Mr. Hamers presented a draft of the proposed 2006 -2007 Capital Improvement Program. The proposed CIP total for 2006 -2007 is $1,200,000. A thorough investigation of what is needed for Capital Improvement Projects was provided. Over 25 years, CIP has varied between $700,000 and $1,200,000. Project No. 168 is to construct a capital improvement project to relocate a pump station. • The rest of the budget is maintenance related. The CMSD has acquired an exceptional staff; however the District does not own any trucks, yard or safety equipment to accomplish field maintenance. Contracting out is more expensive than owning equipment. Staff has learned pump stations were not being maintained up to standards and sewer lines were not properly cleaned by the City of Costa Mesa. Coupled with the comprehensive requirements of the WDR, additional funds are required. The District is spending $150,000 per year on FOG program consultant fees which, in essence, is increasing staff by four people. The District needs a small vactor and safety equipment. At the same time, because sewer lines were not being cleaned adequately, additional work by contractors is required. Mr. Hamers pointed out the City of Fullerton needs $133M to upgrade their sewer system up to standards. Other cities' rates are significantly higher than the CMSD and they are raising rates due to the WDR. Mr. Hamers clarified that the CMSD sewer system is structurally sound and in proper working order, however, the level of maintenance requires increased focus and this requires additional funds. The Board has the option of raising sewer rates or to liquidate already approved capital improvement projects. The District must keep the sewer lines cleaned and maintained. if rates are raised 50 %, sufficient funds would be available. COSTA MESA SANITARY DISTRICT ~,. MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 5 Also presented was a FY -05/06 Sewer Fee Survey prepared by the City of Anaheim and reports of sewer fees for several Orange County cities. The survey verifies the CMSD has one of the lowest sewer fees. Mr. Hamers reiterated the District is at the point where rates must be raised or monies transferred out of CIP. President Ferryman directed Staff to come back to the Board with alternatives. Mr. Hamers suggested scheduling Special Meetings to discuss the budget. Special Meetings were scheduled for Thursday, May 4, 2006 at 6:00 p.m. and Thursday, May 25, 2006 at 6:00 p.m. FIELD MAINTENANCE SERVICES Director Woodside questioned what has occurred that resulted in a report of the sewer system requiring increased maintenance. Mr. Hamers explained that the structure of the sewer system is not, in question; it is the maintenance of the system that must be improved. Structurally and capacity -wise the sewer 0 system is sound. The City crew was not maintaining the lines to expectations. CMSD STRATEGIC PLAN YEAR 2005 STRATEGIC PLANNING ACTION ITEMS The Year 2005/2006 Strategic Planning Action Items list was presented. Mr. Fauth presented an Update Summary on the 9/80 Work Schedule. The 9/80 work schedule has been in place since February 10, 2005 and is a plan where every full -time employee works nine days every two weeks, with each day except one working nine hours, and is off every other Friday. Mr. Fauth explained from. an efficiency standpoint, 9/80 plans have been shown to increase worker satisfaction resulting in better production and quality of work. Many other agencies are closed every other Friday and the District has not received any complaints with the schedule that has been in place for over a year. Safety concerns were addressed by installing a video camera and a chime at the front door. Mr. Fauth further stated field maintenance /emergency responses, inspections and engineering remain fully available five days a week and the detailed automated voicemail messages more than adequately address the needs of incoming callers. 11 COSTA MESA SANITARY DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING -� MARCH 23, 2006 PAGE 6 Director Worthington stated he did not believe the District compared favorably to another Sanitary District, which is open five days per week. Director Woodside pointed out that cities listed as being closed every other Friday provide sewer /trash services and are not serviced by a separate sanitary district as is the case with Costa Mesa. Director Schafer expressed her preference for the 9/80 plan and is of the opinion it gives employees an opportunity to take care of personal business on the flex Friday. Director Worthington acknowledged he was the only Director opposed to the 9/80 plan and suggested the Board move on with the rest of the agenda. President Ferryman directed Staff to continue to monitor the 9/80 plan and present an update to the Board at the 2007 Strategic Planning Session. Director Perry motioned to receive and file the Year 2005/2006 Strategic Planning Action Items. Director Schafer seconded. Motion carried 5 -0. NEW DISTRICT HEADQUARTERS UPDATE ON ROOF, GUTTERS AND COLUMN IMPROVEMENTS Mr. Fauth reported a date has been set for installation of a new roof at the building and Ms. Davis and Ms. Revak are involved in the process of obtaining quotes on painting and landscape improvements. Cost for a new roof is $8,760 with a 30 year warranty. Price for a seamless gutter system is an additional $2500. Staff is investigating "column" replacement for the building. The next phase will be painting the facility and landscaping. 1780 WHITTIER PURCHASE UPDATE Mr. Hamers advised the Board of the cancellation of the Escrow and return of deposit monies on the property at 1780 Whittier Avenue. Staff learned there was an undisclosed prior purchase agreement with another buyer that may still be in effect and the prior purchaser is threatening litigation. The condition of title is not such that the District would approve of the sale in that there has been a threatened lis pendens on the property and, as the property is in probate, the seller may not have authority to sell the property. The District had initiated a Phase 1 Site Assessment and has requested a refund of that expense from the Estate holding title to the property. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 7 RECYCLING REPORTS WASTE DIVERSION REPORT -JANUARY 2006 Ms. Revak presented the Waste Diversion Reports for January 2006 showing a 50.70% recycling percentage. Director Schafer motioned to receive and file the January 2006 Waste Diversion Report. Director Perry seconded. Motion carried 5 -0. WASTE DIVERSION REPORT - FEBRUARY 2006 Ms. Revak presented the Waste Diversion Reports for February 2006 showing a 50.71% recycling percentage. Director Schafer motioned to receive and file the January 2006 Waste Diversion Report. Director Woodside seconded. Motion carried 5 -0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR FEBRUARY 2006 SERVICES 0 Ms. Revak presented the Invoices for February recycling 2006 rec clin services and disposal. Director Perry motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of February 2006 in the amount of $150,975.84. Director Schafer seconded. Motion carried 5 -0. Director Perry motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of. January 2006 in the amount of $9,985.51. Director Woodside seconded. Motion carried 5 -0. STANDARDIZED TRASH CONTAINER PROGRAM REPORTS Mr. Fauth reported maintaining an overview of trash container inventory Costa Mesa Disposal (CMD) is holding for the District. This is tied in with the Occupancy Report as it appears CMD has been confusing replacement or additional cans with new "units" and this was inflating the Occupancy Report. Staff anticipates, based upon consumption over the last year, purchasing between 300 -600 containers in the next fiscal year. President Ferryman questioned when the District expects a response from CR &R on purchasing the containers. Mr. Hamers reported a response is expected on March 27, 2006. President Ferryman directed Staff to request a response from CR &R. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 8 The Ordinance Enforcement Summary Report for the month of February 2006 was accepted. Mr. Shef reported a problem on Santa Isabel where units were demolished and construction materials were placed in CMSD containers for collection. Mr. Fauth, Mr. Shef and Mr. Hamers are all involved in resolving this problem. RECYCLING COMMITTEE - MONDAY, MARCH 20, 2006 —12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA, DIRECTORS WOODSIDE AND WORTHINGTON The Recycling Committee met on Monday, March 20, 2006. Director Woodside reported the Recycling Committee Goals for 2005 -2006 were reviewed. UNIVERSAL WASTE - REQUIREMENTS EFFECTIVE FEBRUARY 9, 2006 Director Woodside reported the Committee addressed Universal Waste (U- Waste) requirements that went into effect February 9, 2006 and discussed holding an E -Waste Recycling event with the City of Costa Mesa. A proposal for such an event was provided by HMR USA, Inc., a company that provides all labor, equipment and transport trailers to run the event, removal of all material from the collection site the date of the event and provides a detailed report on the amount of various materials collected. The Company complies with all Federal, State and local laws. All material will be removed from the drop off location by the end of the day of the event. The City of Costa Mesa approved use of the City Corporation Yard for a joint event with a proposed date of June 17, 2006. If less than 25,000 pounds is collected, the City and District will be charged a collection fee of$1,000. With a collection between 25,000 and 50,000 pounds, the event will be considered breakeven and there is no cost to City or District; and, if over 50,000 pounds, the City and District will split a performance premium of $1,000. The event will be open to residents and businesses. Also discussed was the issue of publicizing to residents how to dispose of E -Waste and HHW. A change in policy in utilizing the services of Curbside Inc. was discussed to avoid residents with small quantities of batteries or other U -Waste from calling for a free pickup. Choice for residents is to take E -Waste and HHW to a "round -up" or take to a HHW facility. In the case of disabled person, CMSD policy will be to refer them to Curbside, Inc. for pickup • • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 9 TOUR OF CR &R AND LANDFILL - FEBRUARY 21, 2006 Director Woodside reported District Staff accompanied a group of Home School students on a tour of the CR &R Recycling facility and the Bowerman landfill. on February 21, 2006. Director Worthington suggested having a Board member accompany the tour groups on future tours. President Ferryman directed Staff to arrange for this on future tours. Director Woodside reported a presentation on plastics recycling and vermicomposting was made to a Cub Scout group on March 1, 2006 and another on March 22, 2006. SPRING 2006 NEWSLETTER (TRASH) Director Woodside advised the Board that Staff is drafting the Spring Newsletter and requested topic suggestions. Mr. Harriers reported new CMSD U -Waste regulations will be presented in the newsletter. ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS - (WDR) GENERAL UPDATE Mr. Harriers provided a brief update on the Steering Committee, the General Committee, and the State WDR. The proposed State WDR is out for public comments. CITY OF NEWPORT BEACH RESOLUTION OF APPLICATION TO REORGANIZE TERRITORY KNOWN AS THE WESTERN BORDERS REORGANIZAITON Mr. Hamers reported this item is on the agenda as an informational item. Should Newport Beach annex West Santa Ana Heights, it would be similar to East Santa Ana Heights where CMSD is already providing sewer service and would continue to provide trash service. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING ,,. MARCH 23, 2006 PAGE 10 PRESIDENT PUMPING STATION - PURCHASE OF NEW PUMPS Mr. Hamers advised the Board of Directors the existing pumps in the President Pumping Station are 34 years old and in need of replacement. Mr. Hamers reported because the potential abandonment of the President Pumping Station as part of the Westside Pumping Station Abandonment is at least five years off, it is necessary to replace the pumps now. Staff will select pumps of the same size as exist in other District pumping stations so if and when the abandonment occurs, the pumps may be used as spare or replacement pumps in other stations. Mr. Hamers further noted the purchase of pumps is covered in the Operations Code that specifies for a purchase above $15,000 the Manager /District Engineer and Assistant Manager shall obtain competitive bids and the Board shall make the award. Staff followed this procedure and proposals were received for providing two pumps for the President Pumping Stations as follows: 1. Flygt — Santa Fe Springs $16,436 total for 2 pumps 2. Peninsula Pumps ( Flygt Pumps) $17,672 3. Flo- Systems, Inc. * $17,930 4. Essco ( Essco Pumps) $31,552 *Flo- Systems supplies Fairbanks Morse pumps, the manufacturer of the current pumps. Staff recommends the Board authorize purchase of two Flygt Model 3153 pumps from Flygt for the price of $16,436 plus tax and shipping plus ancillary hardware. The District has standardized nearly every pumping station to utilize Flygt pumps. Mr. Hamers advised funds for the purchase exist in Project #164 Miscellaneous Sewer Work. Director Schafer motioned to authorize purchase of two Flygt Model 3153 pumps and miscellaneous hardware from Flygt at a cost equal to or lower than shown above for just the pumps, with the total not to exceed $20,000 excluding tax and shipping.. Director Perry seconded. Motion carried 5 -0. OCSD COMMENTS ON CITY OF COSTA MESA WESTSIDE URBAN PLANS Mr. Hamers presented OCSD comments on a Draft Initial Study /Mitigated Negative Declaration for the City of Costa Mesa Westside Urban Plans and SoBECA Urban Plan. The OCSD is primarily concerned with the Rezoning that is proposed for the Westside area. Deficiencies exist in the Costa Mesa Storm Drain system and OCSD expects the densification of • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 11 the Westside to have a cumulative impact on the Inflow and Infiltration issues that already exist and may lead to a sewer spill. The OCSD recommended mitigation measures be added to the Negative Declaration: 1) that the City of Costa Mesa's Storm Drain Master Plan adopt that storm drain systems within the Westside area be upgraded by developers to accommodate storm events equal to a ten year storm return interval; 2) that outside of the City of Costa Mesa's Storm Drain Master Plan that storm drain systems within the Westside area be upgraded by developers to accommodate storm events equal to a ten year storm return interval; 3) Developers may choose to not exercise the option of upgrading the storm drain system and may donate an equivalent amount of money to a City fund dedicated to upgrading the storm drain system. This option must be exercised with options one or two. Further, OCSD is currently planning to perform upgrades to the Fairview and Newport Trunk Systems to assist with these issues. However, OCSD is expecting that the storm drain upgrades take place before these projects because it is not the intent to upgrade trunk sewers in order to accommodate fugitive storm water flows. OCSD COOPERATIVE PROJECTS CONTRACT NO. 0403, AMENDMENT NO. 1. CMSD PROJECT NO. 175 Mr. Hamers presented Amendment No. 1 to the OCSD Cooperative Projects Program Contract No. 0403 (CMSD Project No. 175). The Amendment extends the term of the Original Contract from August 1, 2006, for an additional 18 months from the original project completion date, unless terminated earlier as provided for in Paragraph 6 of the Original Contract, for all work performed on or before February 1, 2008. Director Schafer motioned to approve and execute Amendment No. 1 to the OCSD Cooperative Projects Program Contract No. 0403 (CMSD Project No. 175). Director Perry seconded. Motion carried 5 -0. TREASURER'S REPORTS INVESTMENT OVERSIGHT COMMITTEE MEETING HELD MARCH 23, 2006 AT 5:30 P.M. Ms. Davis reported on the Investment Oversight Committee Meeting held at 5:30 p.m. with Directors Ferryman and Worthington present as Committee members. Tax and Revenue Anticipation Notes (TRANS) were discussed. COSTA MESA SANITARY DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 12 BUDGET STUDY SESSION Ms. Davis requested that the Board of Directors schedule a date for a Budget Study Session /Special Meeting. Meeting dates were scheduled for Thursday, May 4, 2006 at 6:00 p.m. and Thursday, May 25, 2006 at 6:00 p.m. as noted earlier in the Minutes. PRELIMINARY BUDGET CALENDAR Ms. Davis presented a Preliminary Budget Calendar for FY 2006 -07. SELECTION OF INDEPENDENT AUDITORS Ms. Davis advised the Board of Directors that Staff solicited proposals for audit services from six Certified Public Accounting firms who specialize in governmental auditing. The solicitation covered a three -year contract period with two one -year options at the sole discretion of the District. Staff received proposals from three firms. After review of the submitted proposals Staff determined all three firms are very experienced in governmental auditing and have numerous Special District clients. Therefore, price was the determining factor for selecting a firm and making a recommendation to the Board of Directors. The following schedule reflects the proposals by firm: Hours Diehl, Evans & Co., LLP 124 Charles Z. Fedak & Co. 103 Moreland & Associates, Inc. 168 2005 2006 2007 $ 9,150 $ 9,425 $ 9,707 $12,000 $12,600 $13,200 $14,000 $14,000 $14,500 Ms. Davis recommended award of the three year audit contract to Diehl, Evans & Co., LLP and a budget adjustment of $9,150 to the Professional Services account from Retained Earnings in the appropriate funds. Director Woodside motioned to award the three year audit contract to Diehl, Evans & Co., LLP and to authorize Staff to make the appropriate budget adjustment. Director Perry seconded. Motion carried 5 -0. • • • • L� COSTA MESA SANITARY DISTRICT 4 MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 13 ATTORNEY'S REPORT COSTA MESA DISPOSAL AND CR TRANSFER CONSOLIDATED AGREEMENT Mr. Burns reported a meeting with David Ronnenberg and Dean Ruffridge of CR &R occurred on February 27, 2006 and CR &R agreed to respond to the District by March 27, 2006 on four items: providing a comparison table of pounds of trash per resident per agency in Orange County; pounds of trash collected per resident per route in the Costa Mesa Sanitary District; a proposal for acquiring the District's standardized trash containers, and a proposal for extraordinary fuel cost increases. Mr. Hamers will give a reminder call to David Ronnenberg. NATIONAL PLANT SERVICES AGREEMENT FOR SEWER LINE CLEANING Mr. Burns presented an Agreement with National Plant Services for Sewer Line Cleaning. Director Perry motioned to approve the Agreement for sewer line maintenance with National Plant Services. Director Schafer seconded. Motion carried 5 -0. JIMNI SYSTEMS INC. AGREEMENT FOR PUMPING STATION MAINTENANCE Mr. Burns requested the item be continued. ENVIRONMENTAL ENGINEERING & CONTRACTING (EEC) AGREEMENT Mr. Burns requested the Environmental Engineering & Contracting Agreement for Consultant Services for the Fats, Oils and Grease (FOG) Program Management and Inspection Services be approved and executed. Director Perry motioned to approve and execute the. agreement. Director Woodside seconded. Motion carried 5 -0. C &R DRAINS AGREEMENT Mr. Burns requested the Agreement for Sewer System Assessment and Evaluation with C &R Drains Agreement be executed. Mr. Burns explained C &R Drains would be first responder to a sewer spill. If the emergency is in the street, National Plant will be called and if at a pump station, JIMNI will be called. On private sewer backups they will work with /charge the homeowner. Director Perry motioned to approve the agreement subject to further review of the document language by CMSD legal counsel, Mr. Burns. Director Woodside seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 14 • LICENSE AGREEMENT FOR TEMPORARY USE OF COSTA MESA SANITARY DISTRICT PARKING LOT Mr. Burns advised the Board of a License Agreement to allow the Goodwill Industries to use the CMSD parking lot while their roof is being repaired. Director Schafer motioned to ratify the Agreement. Director Perry seconded. Motion carried 5 -0. LOCAL MEETINGS (INCLUDES REPORTS BY ALL DIRECTORS REPRESENTING THE DISTRICT) ORANGE COUNTY SANITATION DISTRICT (OCSD) President Ferryman attended the March 22, 2006 meeting of the Orange County Sanitation District and reported on relocation of the SARI line which initially came in at $93M. The Irvine Company was interested in tying into the line as they are building houses across the freeway and took upon themselves to engineer a different way of accomplishing the task and the cost came in at $34 -40M. The OCSD Board challenged OCSD Staff to lower a proposed 20 -30% rate increase. The Board asked Staff to make recommendations to lower CIP and Staff came back with $472M in deferrals and cuts. OCSD rates will increase approximately 12 -14% for the next fiscal year. SANTA ANA RIVER FLOOD PROTECTION AGENCY Director Ferryman reported a meeting of the Santa Ana River Flood Protection Agency occurred on March 23, 2006 at 4:00 p.m. Prado and Seven Oaks Dam were discussed and using not only for flood control but also water storage. An update on funding of the Santa Ana River Mainstem Project was provided. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) Steven Greenhut, Orange County Register Editorial Writer specializing in local issues, will speak at the March 30, 2006 Quarterly meeting. Directors Ferryman, Perry, Schafer and Worthington will attend as well as Mr. Hamers, Mr. Fauth and Ms. Revak. LOCAL AGENCY FORMATION COMMISSION ( LAFCO) Director Schafer reported LAFCO is working on Municipal Services Reviews (MSRs) for Seal Beach, Sunset Beach, Rossmoor, Huntington Beach and Los Alamitos. Orange and Villa Park will come back in six months. "A COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 15 CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) Director Schafer reported Catherine Smith will be with CSDA until May when she will leave CSDA to head CASA. The CSDA Board is drafting a job description for new CEO and Director Schafer will be flying to Sacramento for an in -house meeting on prospective candidates. GOVERNMENT AFFAIRS DAY - APRIL 18, 2006 - SACRAMENTO Ms. Revak advised the Board of the need to. discuss a non - agenda item - Government Affairs Day in Sacramento on April 18, 2006. Ms. Revak stated the flyer announcing Government Affairs Day arrived after the agenda was prepared. Director Perry moved the non - agenda item because the need arose after the agenda was prepared and there was a need to take immediate action. Director Woodside seconded the motion. Motion carried 5 -0. Director Schafer expressed her desire to. attend Government Affairs Day on April 18, 2006. Director Perry motioned to approve attendance at Government Affairs Day in Sacramento on April 18, 2006 for Director Schafer. Director Woodside seconded. Motion carried 5 -0. is CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) 2006 SPRING CONFERENCE - APRIL 26 -MAY 30, 2006 AT SQUAW CREEK Ms. Revak advised the Board of the upcoming CASA 2006 Spring Conference at Squaw Creek. Directors Schafer and Worthington indicated they would like to attend. Director Perry motioned to approve attendance at the CASA 2006 Spring Conference by Directors Schafer and Worthington. Director Woodside seconded. Motion carried 5 -0. MEETINGS OF: COSTA MESA CITY COUNCIL, OCCOG, WACO, CHAMBER OF COMMERCE CHAMBER OF COMMERCE OCCOG Director Schafer attended a meeting on February 7, 2006. The topic was Newport Beach and Costa Mesa Annexations. Assemblyman Van Tran will be up for reelection. i WACO Director Worthington reported on the WACO meeting on February 3, 2006. Item of discussion was the shortage of rainfall in this area. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 23, 2006 PAGE 16 • CITY OF COSTA MESA COUNCIL MEETING Director Perry attended the City of Costa Mesa Council Meeting on February 7, 2006. Director Perry reported the meeting began late with standing room only for the public. Public Comments dominated much of the beginning portion of the meeting with many pros and cons regarding the City training their police officers to enforce Federal immigration policies. Many speakers were not from Costa Mesa but were anti - immigration speakers. After Public Comments the large crowd left the Council Chambers and remained outside, however, they were very loud throughout the rest of the meeting, trying successfully to disrupt the meeting. No business affecting the CMSD was discussed. OLD BUSINESS There was no old business. NEW BUSINESS There was no new business. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS There were no oral communications or Director comments. ADJOURNMENT At 8:24 p.m., President Ferryman adjourned the meeting in memory of Russell Paris, former Midway City Sanitary District Director. SECRETARY PRESIDENT f�