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Agenda Packets - Board - 2007-01-27V N Sa-n-jta-YN rict, < 1 0 POR01 ... an Imoepenbent Special District Board of Directors Art Perr , Arlene Schaf r Bob Omen James Ferrwnan Can, Monahan sari ff Robin B. Hamers Manager Di.sn'ict Engineer (949) 631 -1731 f homos A. Fauth Assistant Manager Joan Revak Board Secretary Progrom Manager Clerk ol'the District Alan R. Burns Leval Counsel Marcus D. Danis 7rerts11rer1Di1'c <c.7o1* of, I �inmice Phone (949) 645 -8400 Fax (949) 650 -2253 Address 628 W. 191h Strect Costa Allesa, CA 92627 -2716 NOTICE OF SPECIAL MEETING COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS JANUARY 27, 2007 The Board of Directors of the Costa. Mesa Sanitary D].strlct will meet on Saturda }T, JanU,-11 27, 2007 at: 7:30 a. M. at District 1-Ieadyuarters, 628 W. 19"' Street, Costa Mesa, California. I. Strategic Planning 2007 -2008 II. Public Comments Dated: j anuare 23, 2007 Beard Secretary/ Program Manager 4f* fm 4W6 Ni, led ml Protecting our community's health bYJ providing solla waste ant) Sewer collection Services. tzee)wled Paper crosaca.gov COSTA MESA SANITARY DISTRICT MINUTES OF SPECIAL MEETING JANUARY 22, 2007 The Costa Mesa Sanitary District held a Special Meeting at 6:00 p. m. on Monday, January 22, 2007 at 628 W. 19th Street, Costa Mesa. Directors Present: Art Perry, Arlene Schafer, Bob Ooten, Gary Monahan, James Ferryman Staff Present: Robin B. Harriers, Manager /District Engineer; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Sherry Kallab, Accountant; Marc Davis, Treasurer /Director of Finance /CBIZ; Karl Dulake, Maintenance Supervisor; Debbie Bjornson, Permit Processing Specialist; Desiree Reyes, Office Specialist; Trang Le, Accounting Specialist President Art Perry called the meeting to order at 6:00 p.m. and turned the meeting over to Mr. Harriers. I. Strategic Planning 2007 -2008 Mr. Harriers opened the meeting by welcoming the Board of Directors and explaining the purpose of the pre- meeting was to provide a relaxed forum for the Board of Directors to discuss the short term, medium term, and long term goals of the District. Mr. Harriers emphasized the Directors should consider the long -term horizon of the District. Mr. Harriers explained the forthcoming Strategic Planning interviews and workshop that will occur on Friday, January 26, 2007 and Saturday, February 27, 2007, respectively. Mr. Harriers also presented the District's Mission Statement. Director Ooten arrived at 6:11 p.m. Mr. Harriers reviewed the Orange County LAFCO's favorable comments regarding the District's preparation of the spectrum of elements of a successful independent special district. Mr. Harriers then requested the Board of Directors, beginning with newly elected Directors Ooten and Monahan, provide their comments regarding the appropriate areas of concentration for the Strategic Plan. Minutes of Special Meeting DF ;FT Page 2 January 22, 2007 The Directors recommended the following areas be included in the Strategic Plan: Director Ooten: 1. Due to resident concern over the cost of the standardized containers, explain the use of the term "free" in the outreach for the program during the container roll -out.. 2. Insure that CMSD sewer facilities are odor free. 3. When the receptionist is unavailable, improve the recorded message in providing CR &R's phone number. 4. Review the CMSD number of sewer spills versus those of other sewer collection system owners. Director Monahan: 1. Explain to the residents how the publicized term "free" relates to the actual cost of the trash container program. 2. Conduct better public relations regarding the reasons for the extra container cost of $8 per month. 3. Invite CR &R to a meeting to explore avenues of improving service and reducing costs. 4. Consider methods and the participation of the City of Costa Mesa in defraying the substantial costs of sewer lateral repairs. Director Schafer: 1. Improve Public Relations. 2. Improve the working relationship with the City of Costa Mesa. 3. Publicize the CMSD Special Recycling Programs. 4. Increase readership of the CMSD Newsletter, and consider whether a resident's concern over two - colored ink in the newsletter is a significant expense versus black and white. 5. Consider the monetary value of the documented insufficient cleaning of the CMSD gravity lines and the documented substandard maintenance of the 20 CMSD pumping stations by the City of Costa Mesa. Director Ferryman: 1. Consider a back -up Ordinance Enforcement Officer to provide continuous service in the absence of the OEO. 2. Attempt to abandon Westside Costa Mesa sewer pumping stations in order to achieve long term savings and system reliability. 3. Work with the OC Fairgrounds to implement a long term cooperative agreement where the Fairgrounds provides CMSD Yard area in exchange for the District providing sewer system management, including sewer cleaning, televising of sewers, consulting, services by a registered civil engineering, and general support. 2 Minutes of Special Meeting DR IFT Page 3 January 22, 2007 President Perry: 1. Explain the standardized container program including the significant increase in tonnage and the resulting increase in costs in relation to the publicized "free" container program. 2. Provide a backup person for key employee Maintenance Supervisor Karl Dulake who is working overtime in bringing the gravity system and pumping stations up to industry standard. 3. Finalize the District Yard, preferably with a mutually beneficial relationship with the Orange County Fairgrounds. CMSD Staff provided the following comments: Treasurer /Finance Director Marc Davis: 1. Mr. Davis provided a mid -year budget review. 2. Mr. Davis agreed with the recommendation for a Long Term Financial Plan 3. Mr. Davis acknowledged the positive comments regarding the successful transition to himself as Treasurer /Finance Director, including Mr. Hamers explanation that Mr. Davis was previously the Director of Finance of the City of Costa Mesa and the CMSD Treasurer. 4. Mr. Davis stated he will continue to be active in planning for the long term future of the District. Board Secretary/Program Manager Joan Revak: 1. Ms. Revak affirmed that the pertinent topics have been discussed. Director Ferryman left the meeting at 7.*00 p.m. Assistant Manager Tom Fauth: 1. Continue to effort to secure a District Yard. 2. Consider the operational efficiencies of having a CMSD crew comprised of employees. 3. Upgrade the CMSD Website. Maintenance Supervisor Karl Dulake: 1. Mr. Dulake emphasized the need for dedicating funds for the operation and maintenance (O &M) of the sewer system, including funds for the extra cleaning needed for the gravity system and the extra funds needed for replacement of pumping station equipment based on previous substandard maintenance by the City of Costa Mesa. Staff member Desiree Reyes added that residents should be better educated on the operations and programs of the District. Staff member Debbie Bjornson added that the relationship between the City of Costa Mesa and the Costa Mesa Sanitary District should be more cooperative and friendly. 3 Minutes of Special Meeting DFi AFT Page 4 January 22, 2007 Mr. Hamers provided additional comments and thanked the Board and Staff for their participation in the Pre - Meeting. Mr. Hamers recommended the Board members review the results of the Pre - Meeting and the comprehensive list of potential strategic planning topics prepared by Staff prior to their Friday interviews and participation in the Saturday workshop. II. Public Comments No members of the public were present. ADJOURNMENT Director Perry adjourned the meeting at 7:42 p.m. Secretary 4 President Strategic Planning 2007 -2008 (2 -Year Plan) Pre - meeting January 22, 2007, 6:00 p.m. Purpose To provide a relaxed forum for the Board of Directors to discuss the issues considered most important for improving the trash collection and sewer service programs and for preparing for the future. Current Mission Statement "Protecting our community's health by providing solid waste and sewer collection services. " The Horizon vs. Micromananing Directors are always encouraged to focus on the "big picture" instead of spending time on items that Staff can easily handle during the regular course of business. An example of a "big picture" item is the desired balance of the long -term sewer replacement fund; should it be $5 million, $10 million or $25 million? Perception by the Public "Is my trash collected properly and on- time ?" "Am I recycling ?" "Am I satisfied with paying $8 /mo. for the extra container?"' "Does the sewer system work ?" "How do I make sure the system always works, including my own lateral ?" "Do I know my Board of Directors and when the Board meetings are held ?" "Does the Costa Mesa Sanitary District have good PR?" LAFCO MSR In the eyes of Orange County LAFCO, is the Costa Mesa Sanitary District operating properly? Are there any concerns or significant issues? Review of 2006 -2007 Strategic Plan • Items completed • Items not yet completed • On -going items 1 Trash Collection Program • Service level • Variable rate program - extra container charge • Continuing the successful recycling programs • E -waste special events • Tonnage trends • Current and future rates • Is the District well positioned for the future? Sewer Service Program • WDR requirements (such as FOG Program) and the financial impacts • Condition of sewer lines and pumping stations • Adequate O &M and CIP funding • Mid -year budget review • Long term sewer replacement fund • Re- categorization of fixture fees and considering an increase • Sewer spills and threat of a lawsuit by CoastKeepers • Contract workers vs. Employees in work force • Yard; buy or work with Fairgrounds • Project #101 Westside Pumping Station Abandonment • Assist residents in sewer lateral concerns • Need for a Management Analyst • Outstanding reputation of CMSD in the industry • Update Manager /District Engineer Succession Plan Public Outreach • Teaching children ensures a life long lesson • Successful programs educate residents on important items • Fall and Spring Newsletters, video, ads, other • Tours • Non - profit recycling programs • Why do some residents not understand that we recycle? 2 Treasurer/Finance Director ' Transition to new Treasurer /Finance Director in progress • New Treasurer works well with Board and Staff • New Treasurer aware of laws and proposed legislation • CBIZ successfully provided previous Treasurer, new Treasurer /Finance Director, and current Assistant Accountant • New Treasurer to complete items in existing and new Strategic Plan • Treasurer should remain active in long term planning of the District • Need for a Financial Master Plan • Internal Controls • Succession Plan Additional Recommendations for Strategic Plan • Board member recommendations • Staff recommendations 91 Costa Mesa Sanitary District Year 2005/2006 Strategic Planning Action Items The following Strategic Planning Action Items were discussed at the District's Strategic Planning Special Meeting on January 22, 2005 and adopted by the Board at a regular meeting held February 10, 2005. At regular Board meeting of December 8, 2005 the Board chose to implement the action items over a two -year period thereby revising to 2005/2006 Strategic Planning Action Items. 1. Sewer Maintenance and Operations 1.1 Proposed Agreement with City Action: • Consider actions by City Development Services Department • Consider MCWD's inability to track new development • Consider indemnification provisions proposed by City • Consider cost savings available with contract crews • Consider MCWD statements regarding use of their Yard • Consider Yard requirements for vehicles, materials and equipment • Consider long -term potential for supervisor and one in -house crew and one contract crew • Consider City workers who have dedicated their careers to District's sewer system • Assistant Manager to monitor available property • Manager /District Engineer to discuss use of MCWD Yard with MCWD General Manager • Manager /District Engineer to continue researching options Status: Manager /District Engineer discussed joint CMSD /MCWD Yard with MCWD General Manager on February 8, 2005. At March 25, 2005 City /Districts Liaison Committee, City Manager stated he anticipates approval of Agreement with City. CMSD Attorney and CCM Attorney unable to resolve indemnification language. CMSD Board of Directors requested resolution by August 2005 regular meeting. Assistant Manager identified four available properties as of August 1, 2005. CMSD Board of Directors sent letter to CCM City Council on August 10, 2005 advising of alternate means of field crew services beginning December 15 2005. CMSD received letter from CCM Mayor dated September 23, 2005 confirming end of contractual services effective December 15, 2005. Planning is continuing. New sewer maintenance and operations program implemented on December 15, 2005. CMSD executed Rental Agreement with the Orange County Fairgrounds for temporary storage of vehicles and equipment Staff continuing to search for new District Yard. Rev. 01/09/07 FINAL 2. Financial Matters 2.1 Financial Master Plan Action: • Board desires long -term financial plan • New building changes historical budgets • Treasurer and Accountant continuing to input past data • Springbrook software installation and training completed • Information from City required to complete update • Budget Study Session and adoption scheduled for May /June 2005 • Master Plan, Rate Stabilization Plan and Long -term Projections require data from at least one -year term in new building • Treasurer to either complete update with Accountant or obtain temporary help • Treasurer to prepare list of items needed from City for action by Manager /District Engineer • Assistant Manager to insure Springbrook financial modules are completed in timely manner Status: Temporary accounting help obtained. Springbrook financial modules were installed. Budget Study Session and adoption of 2005 -2006 Budget occurred in June 2005. Budget Study Session and adoption of 2006 -2007 Budget occurred in June 2006. 2.2 Yearly Trash Collection and Sewer Service Charges Action: • Requires completed programming by Springbrook • Requires successful transfer of data into new system • Requires programming to add FOG charges to regular sewer charges • Requires Permit Processing Specialist to input past data • Assistant Manager and Treasurer to insure completion of work by Springbrook. • Assistant Manager to prepare timeline reflecting successful completion of tasks necessary to adopt 2005 -2006 and 2006 -2007 charges. • Completed August 1, 2005. Status: Assistant Manager ensured Springbrook financial modules were operational in time for the yearly charges. 2.3 Solid Waste Fund. • Existing reserves inadequate to pay off trash containers • Consider whether prepayment penalty applies • Trash tonnage continues to increase, causing higher charges • Current policy requires resident participation charge of actual cost per container • Container costs rolled into following year's charges • Desire to limit future year increases • Administrative costs are divided according to demand 01/09/07 2 FINAL Action: • Assistant Manager to prepare chart showing hauling component, recycling component, landfill fee component and administrative component for solid waste charges to residents • Consider options for decreasing costs of two largest components • Consider options for variable trash collection rates • Assistant Manager to review simplified variable rate structure approved by Board on October 4, 2004 and report on implementation • Consider other agencies' ability to: 1. Subsidize residential rates through commercial program 2. Decrease rates due to property tax revenues 3. Quote Contractor rates without considering Agency costs • Continue public outreach Status: Special Meeting held May 24, 2005 to consider rate stabilization fund. Treasurer prepared pie -chart showing hauling and recycling component and discussed options regarding rates. Board discussion to continue. Manager/ District Engineer obtained initial comments from CR &R regarding CMSD trash collection rates. Letter dated November 30, 2005 from CR &R received and is being analyzed by Staff. Special Meetings held May 4, 2006 and May 25, 2006 to discuss trash collection program. Special Meeting held June 19, 2006 to discuss trash collection program with Board direction to implement variable rate structure. Assistant Manager analyzed 1998 -2006 actual tonnage and presented results to the Board. Special Meeting (Public Hearing) held on July 24, 2006 to adopt 2006 -2007 rates that include variable rate program for trash collection. 2.4 Liquid Waste Fund • Manager /District Engineer aware of high current construction costs • Sewer rates are generally low • Emergency reserve in place • Long -term sewer replacement fund in place Action: • Manager /District Engineer requests review of long -term sewer replacement fund by Treasurer • Provide updates to Board as appropriate • Manager /District Engineer prepared memo with local sewer rates • FOG charges incorporated in 05 -06 Engineer's Report and rates • Special Meeting (Public Hearing) held on July 24, 2006 to adopt 2006 -2007 rates. 3. Personnel 3.1 9/80 Work Schedule with Headquarters Closed Every Other Friday • Insures core hours are covered by entire Staff • Insures Staff members can concentrate on their work • Lessens facility costs • Staff members can schedule medical appointments on Fridays off • Staff works better with 9/80 schedule • Safety concerns without 9/80 schedule 01/09/07 3 FINAL Action: • Implement 9/80 schedule following February 10, 2005 regular meeting • 9/80 schedule to be reviewed by Board after one year • Staff to insure schedule works well with holidays • Safety concerns to be addressed by video camera, buzzer or door with window • Consider part -time receptionist Status: 9/80 Schedule implemented February 10, 2005 Camera installed in District headquarters lobby area Annual Review of 9/80 Schedule occurred at March 23, 2006 regular meeting Full -Time Receptionist job description completed to be presented to Board at August 14, 2006 regular meeting for approval to advertise and hire Temporary Part-Time Receptionist hired on October 12, 2006 Full -Time Permanent Office Specialist I job description & salary structure presented to Board at November 8, 2006 regular meeting for approval to advertise and hire Full -Time Permanent Office Specialist I permanently hired on January 2, 2007 3.2 Human Resources Management Action: • Extensive Federal and State laws • District management desires training • Local consortium offers full range of services including training, manuals, on -call assistance and legal advice • Consider salary versus hourly for Management • Agendize membership in Consortium • Assistant Manager to attend training session • Delay consideration of receptionist until 9/80 and financial master plan are complete • Treasurer to propose Treasurer Succession Plan similar to Manager /District Engineer Succession Plan Status: District joined Liebert Cassidy Whitmore (LCW) Consortium on February 10, 2005. Assistant Manager attended training sessions on March 17, 2005 and April 21, 2005, October 20, 2005 and February 14, 2006. Staff ordered LCW manuals 8/17/05. Manuals received 8/29/05. Manager /District Engineer held Staff meeting on January 18, 2006, March 15, 2006, June 22, 2006, September 13, 2006 and December 11.2 - -6 to discuss employee benefit programs. 3.3 Fats, Oils and Grease (FOG) Control Program Action: • State Order results in need for expanded work force • Additional staffing currently handled using consultants • District costs approach $250,000 per year • Sewer Inspector and Ordinance Enforcement Officer may be requested for follow up inspections • District may need additional employee when Consultant participation decreases • Board approved in concept increasing sewer rates to fund program • Staff to agendize action items for Board as needed • Provide regular updates to Board • Insure computer software is modified to allow for FOG charges 01/09/07 4 FINAL Status: Consultant progressing in grease control program implementation including obtaining signed FOG permits from food service establishments. Third year Consultant services as included in 2005 -2006 CIP approved by Board at January 12, 2006 Board Meeting. 3.4 Staff Attendance at Conferences Action: • Board desires Staff stay abreast of knowledge and issues • Conferences provide `idea- sharing' forum • Manager /District Engineer current workload is heavy • CASA conferences are dedicated to sewer matters • Treasurer currently belongs to financial management organizations • Assistant Manager is available for conferences, schedule permitting • Staff to attend conferences on a case -by -case basis • Treasurer to include Staff Development Plan in 2005 -06 Budget Status: District Treasurer and Accountant attended Springbrook Working Group and will consider travel expenses for yearly conference. 4. New District Headquarters 4.1 Building Exterior Action: • Parking is limited • Assistant Manager assembling list of improvements with estimated costs including lighting, roofing, etc. • Exterior improvements would delay Open House • Assistant Manager to prepare site plan noting improvements • Maintain parking overflow plan with Church, Insurance Company and DMV • Schedule Open House for a Thursday in March • Monitor property for sale Status: Open House held on March 31, 2005 Building & Grounds Ad Hoc Committee formed and met on April 25, 2005, May 11, 2005, May 20, 2005, July 18, 2005, August 3, 2005 and August 30, 2005. Board authorized new front and rear door and flag pole; P.O. issued for doors on August 17, 2005. Board approved in concept at June 9, 2005 meeting Agreement for Landscape Architect Services; 3rd set of plans delivered and used to obtain cost proposals August 12, 2005. Manager /District Engineer allocated $75,000 in 2005 -06 CIP for Building and Grounds improvements. Staff receiving bids for remaining improvements. New roof installed May 3, 2006; column work in progress. Painting of building completed on December 22, 2006. 4.2 Public Use of Board Room • Staff prepared potential rules • Night meetings require staff overtime • Limit to non - profit, local groups • Board Room can easily be damaged • Many groups meet early in the day or at night 01/09/07 5 FINAL Action: • Reconsider Board Room use at one -year date • Security deposit would be required • MCWD no longer allows non - profit groups to use Board Room due to damage 4.3 Sewer Operations Improvements Action: • Project #101 will eliminate seven pumping stations • Pumping Stations require intensive maintenance • Pumping Station malfunctions area cause of sewer spills • Manager /District Engineer will prioritize project Status: Manager /District Engineer reaffirmed City of Newport Beach's cooperation. Site reviews underway by CMSD Inspector and Staff. Manager /District Engineer considering consultant for preparing Environmental Constraint Study. 5. Public Outreach 5.1 Review of Recycling Programs Action: • Assistant Manager reintroduced cost/benefit analysis of all recycling programs • Previous Board action maintained all programs in place • Total cost budgeted in 2003 -04 was $81,420 excluding $25,500 in Contractor required monetary support • Recycling Committee prepared Draft 2005 -06 Goals • City Management Analyst invited to and attended December 5, 2005 Recycling Committee meeting • Continue existing Recycling Programs • Bring Draft 2005 -2006 Goals to Board Meeting for adoption • Promote County HHW Drop Off facility in Huntington Beach • Promote waterless urinals Status: 2005 -2006 Recycling Committee Goals adopted on February 10, 2005. Activities arranged each month. Staff resolved indemnification issue with SDRMA for Curbside HHW collections and Board executed new agreement at the October 12, 2005 Board of Directors meeting. 5.2 Outreach and Education 01/09/07 FINAL • State considering acquiring Special District reserves • CMSD has opportunity to educate residents through tours of landfills, CR Transfer MRF and OCSD treatment plants • Legislation Days provide forum for meetings with Legislators M Action: • Educate residents that State acquisition of CMSD funds represents a loss of their money • Establish goal of two tours per year at a cost approximating $1,000 per tour. Tours to include one or two of the above - mentioned sites • Board to consider involvement in Legislation Day and other conferences allowing interface with Legislators • Assistant Manager to revise `Working for You' video as appropriate and continue to distribute copies Status: Recycling Committee arranged for high school tour of CR Transfer and OC landfill on Tuesday, May 24, 2005. Adult tour took place on July 13, 2005. Adult OCSD tour occurred August 24, 2005. Recycling Presentation given to Boys & Girls Club at Rea School to 20 students. Club to participate in cans /bottles activity in September 2005. Recycling Presentation for Boy Scout Troup held September 19, 2005. Public outreach resumes with schools /service organizations in September. Tours underway at CR Transfer, CR &R, F. R. Bowerman Landfill and OCSD. Board approved re -write of script for the revised CMSD video at the October 12, 2005 Board of Directors meeting. E -Waste Recycling Event with City of Costa Mesa held June 17, 2006 at City Corporation Yard. New District video outline drafted as a 5 -part modular presentation to be accessible on the CMSD website and through DVD distribution. E -Waste Recycling Event with City of Costa Mesa scheduled for February 24, 2007. 6. Strategic Planning 6.1 Elements of a Strategic Plan • Reconsider mission statement if appropriate • Develop long -term vision • Develop objectives and goals tied to long -term vision • Reference numbers from goals can be included in budget Action: • Consider the above at future Strategic Planning meetings Status: Board authorized Year 2005 Strategic Planning to be a two -year plan and re- designated as 2005/2006 Strategic Plan due to workload. Strategic Planning dates scheduled for January 26 -27, 2007. 01/09/07 FINAL VA l Costa Mesa Sanitary District Amended Solid Waste Budget Fiscal Year 2006 -07 Maintenance & Operations Professional Services Adopted Amended Revenue Budget Amount Secured Property Tax 30,000 50,000 Investment Earnings 50,000 50,000 Sewer Permits - - Permits /Inspection Fees - - New Trash Container Fees 10,000 - From Other Agencies - 500 Other Charges for Services 8,883 8,883 Charges for Trash Services 5,486,185 5,070,000 Contributions 25,500 25,500 Other Reimbursements 1,000 1,000 Other Financing Sources - - Total Revenue 5.602.685 5.196.500 Expenditures Salaries & Benefits Regular Salaries 33,321 33,321 Part-Time Salaries 58,032 58,032 Board Salaries 5,508 5,508 Overtime 3,600 5,000 Special Pays 346 346 Compensated Absences - 1,500 Cafeteria Plan 3,714 3,714 Medicare - Employer 1,528 1,528 FICA - Employer 341 341 PERS - Employer 14,069 14,069 PERS - Employee 6,419 6,419 Deferred Medical - RHS 333 333 Benefits Admin Costs 210 210 Unemployment - - Workers' Compensation 650 650 Total Salaries & Benefits 128,071 130,972 Maintenance & Operations Professional Services 2,600 2,600 District Manager 30,030 30,030 Legal Services 20,400 20,400 Fiscal Services 34,125 34,125 Engineering /Architectural Service - - Plan Ck/Inspection- Inside - - Plan Ck/Inspection- Outside - - Medical /Employment Services - 500 Contract Services 8,883 8,883 County Collection Fee 16,252 16,252 Sewer Contracts - - Election Expense 20,000 20,000 Building Maintenance 810 810 Equipment Maintenance 2,420 2,420 Office Supplies 1,500 1,500 Multimedia/Blueprint/Copies /Sub 1,500 1,500 Postage 6,500 6,500 Public Info /Ed /Community Promo 11,000 11,000 Small Tools /Equipment 500 500 Materials & Supplies - - Prof Membership /Dues 10,000 10,000 Staff Development 799 800 Travel /Meals /Lodging 1,300 1,300 Mileage Reimbursement 1,400 1,400 Liability Insurance 6,000 6,000 Telephone 600 600 Cellular Service 600 600 Gas - Building 100 100 Water - Building 150 150 Electric - Building 800 800 Water - Pump - - Electric - Pump - - Total Maintenance & Operations 178,269 178,770 Special Programs Trash Hauler 2,411,000 2,350,000 Recycling /Disposal 2,470,000 2,415,000 Sewer Maint - - Principle Payment 226,737 - Interest Payment 47,405 24,728 Other Financing Uses - - Contingency 35,000 35,000 Operating Reserves - - CIP - - Sharps Program 10,000 10,000 Household Hazardous Waste 20,000 20,000 Telephone Book Recycling Program 15,000 15,000 Large Item Pick -up 5,000 5,000 Used Tire Roundup 500 500 Educational Tours 5,000 5,000 Trash Containers 10,000 5,000 Total Special Programs 5,255,642 4,885,227 Total Expenditures 5.561.982 5.194.969 Excess (Deficiency) of Revenues Over Expenditures 40.703 1.531 Costa Mesa Sanitary District Amended Liquid Waste Budget Fiscal Year 2006 -07 Maintenance & Operations Professional Services Adopted Amended Revenue Budget Budget Investment Earnings 250,000 250,000 Sewer Permits 10,000 10,000 Charges for New Services 50,000 50,000 Permits /Inspection Fees 50,000 50,000 New Trash Container Fees - - From Other Agencies 10,000 10,000 Other Charges for Services 150,000 200,000 Charges for Sewer Services 2,505,071 2,525,000 Contributions - - Other Reimbursements 1,000 1,000 Other Financing Sources - - Total Revenue 3.026.071 3,026A00 Expenditures Salaries & Benefits Regular Salaries 299,888 299,888 Part-Time Salaries 6,448 6,448 Board Salaries 49,572 49,572 Overtime 32,396 32,396 Special Pays 3,113 3,113 Compensated Absences - 12,000 Cafeteria Plan 33,426 33,426 Medicare - Employer 6,515 6,515 FICA - Employer 3,073 3,073 PERS - Employer 47,478 47,478 PERS - Employee 21,661 21,661 Deferred Medical - RHS 2,999 2,999 Benefits Admin Costs - - Unemployment - - Workers' Compensation 5,782 5,782 Total Salaries & Benefits 512,351 524,351 Maintenance & Operations Professional Services 33,400 33,400 District Manager 55,770 55,770 Legal Services 44,880 44,880 Fiscal Services 63,375 63,375 Engineering /Architectural Service 16,100 16,100 Plan Ck/Inspection- Inside 95,000 95,000 Plan Ck/Inspection- Outside 50,000 50,000 Medical /Employment Services - 1,000 Contract Services 16,497 16,497 County Collection Fee 7,490 7,490 Sewer Contracts 1,800 1,800 i Election Expense 25,000 25,000 Building Maintenance 8,500 8,500 Equipment Maintenance 15,000 15,000 Office Supplies 8,000 8,000 Multimedia /Blueprint/Copies /Sub 12,000 12,000 Postage 12,300 12,300 Public Info /Ed /Community Promo 11,500 11,500 Small Tools /Equipment 700 700 Materials & Supplies - - Prof Membership /Dues 32,371 32,371 Staff Development 7,291 7,291 Travel /Meals /Lodging 19,200 19,200 Mileage Reimbursement 200 200 Liability Insurance 55,000 55,000 Telephone 5,000 5,000 Cellular Service 9,000 9,000 Gas - Building 500 500 Water - Building 1,500 1,500 Electric - Building 7,000 7,000 Water - Pump 950 950 Electric - Pump 79,000 79,000 Non - Operating Expense 25,000 - Total Maintenance & Operations 719,324 695,324 Special Programs Sewer Maint 932,692 932,692 Other Financing Uses - - Contingency 50,000 25,000 Operating Reserves - 115,000 CIP 800,000 800,000 Total Special Programs 1,782,692 1,872,692 Total Expenditures 3.014.367 3.092.367 Excess (Deficiency) of Revenues Over Expenditures 11.704 3.633 i Costa Mesa Sanitary District Amended Sewer Maintenance Budget Fiscal Year 2006 -07 Amended Budget 66,825 16,867 1,002 3,200 7,428 1,400 10,406 4,748 668 5,988 500,000 200,000 3,000 17,000 15,000 20,600 46,760 11,800 932,692 Adopted Expenditures Budget Sewer Maintenance Swr Maint - Regular Salaries 66,825 Swr Maint - Overtime 16,867 Swr Maint - Special Pays 1,002 Swr Maint - Compensated Absences - Swr Maint - Cafeteria Plan 7,428 Swr Maint - Medicare ER 1,400 Swr Maint - PERS ER 10,406 Swr Maint - PERS EE 4,748 Swr Maint - Def Medical RHS 668 Swr Maint - Workers Comp 5,988 Sewer Maint -Sewer Maintenance 500,000 Sewer Maint -Pump Station 200,000 Sewer Maint- Contract Labor 3,000 Sewer Maint- Equipment Maint 17,000 Sewer Maint - Property Lease 30,000 Sewer Maint -Multi Media - Sewer Maint -Small Tools /Equip 20,600 Sewer Maint- Material /Supplies 46,760 Sewer Maint -Staff Development - Sewer Maint - Liability Insurance - Total Sewer Maintenance 932,692 Amended Budget 66,825 16,867 1,002 3,200 7,428 1,400 10,406 4,748 668 5,988 500,000 200,000 3,000 17,000 15,000 20,600 46,760 11,800 932,692 sAn1r4,? coo Do car) Do h MUM 60""anxar�q � r Y an Idepekloent Special District OR�ORAT� ©`� Board of Directors Art Perry Arlene Schafer Bob Owen Aims Fe rr vntart Gary Monahan Stuff Robin B. Ncuners rllanager 1)isirlet Es'n�.rrtc c:r Thomas A. Faartit Assistant MancrgcT Joan Revak Bocn•cl S'ccrc;crr.r Progr -a r Manadcr Cle.;— o% the Dislric•i Alan R. Burns Le--Wd Coantsel tllarcus D. Danis Tr-ecisure!•illirector- o/ Fuuntcx� Pholte ( 949) 645 -8400 Fax (949)650 -2253 Address 1528 W 19th Street Costa )Mesa, CA 42627 -%716 NO'T'ICE OF SPECIAL MEE'T'ING COS'T'A MESA SANI'T`ARY DIS'T'RICT" BOARD OF DIRECTORS JANUARY 22, 2007 The Board of Directors of the Costa Mesa Sanitary District will iric:et on MMida�-, January 22, 2007 at 6:00 1). gin. at District Ileadgtiarters, 628 W. 19"' Street, Costa Mesa, California. I. Strategic Planning 2007 -2008 II. Public Comments Dated: january 17, 2007 qcr,�A-"� Board Secretary/Prograni Manager Clerk of the District e Sao Pri,lred oil Protecting our cornmunitvys heaftb bN providinq solid waste and sewer coffection services. RecYcled Puper crosdca.gov Strategic Planning 2007 -2008 (2 -Year Plan) Pre - meeting January 22, 2007, 6:00 p.m. Purpose To provide a relaxed forum for the Board of Directors to discuss the issues considered most important for improving the trash collection and sewer service programs and for preparing for the future. Current Mission Statement "Protecting our community's health by providing solid waste and sewer collection services. " The Horizon vs. Micromanaging Directors are always encouraged to focus on the "big picture" instead of spending time on items that Staff can easily handle during the regular course of business. An example of a "big picture" item is the desired balance of the long -term sewer replacement fund; should it be $5 million, $10 million or $25 million? Perception by the Public "Is my trash collected properly and on- time ?" "Am I recycling ?" "Am I satisfied with paying $8 /mo. for the extra container ?" "Does the sewer system work ?" "How do I make sure the system always works, including my own lateral ?" "Do I know my Board of Directors and when the Board meetings are held ?" "Does the Costa Mesa Sanitary District have good PR?" LAFCO MSR In the eyes of Orange County LAFCO, is the Costa Mesa Sanitary District operating properly? Are there any concerns or significant issues? Review of 2006 -2007 Strategic Plan • Items completed • Items not yet completed • On -going items 1 M i , o Trash Collection Program • Service level • Variable rate program - extra container charge • Continuing the successful recycling programs • E -waste special events • Tonnage trends • Current and future rates • Is the District well positioned for the future? Sewer Service Program • WDR requirements (such as FOG Program) and the financial impacts • Condition of sewer lines and pumping stations • Adequate O &M and CIP funding • Mid -year budget review • Long term sewer replacement fund • Re- categorization of fixture fees and considering an increase • Sewer spills and threat of a lawsuit by CoastKeepers • Contract workers vs. Employees in work force • Yard; buy or work with Fairgrounds • Project #101 Westside Pumping Station Abandonment • Assist residents in sewer lateral concerns • Need for a Management Analyst • Outstanding reputation of CMSD in the industry • Update Manager /District Engineer Succession Plan Public Outreach • Teaching children ensures a life long lesson • Successful programs educate residents on important items • Fall and Spring Newsletters, video, ads, other • Tours • Non - profit recycling programs • Why do some residents not understand that we recycle? 2 Treasurer/Finance Director • Transition to new Treasurer /Finance Director in progress • New Treasurer works well with Board and Staff • New Treasurer aware of laws and proposed legislation • CBIZ successfully provided previous Treasurer, new Treasurer /Finance Director, and current Assistant Accountant • New Treasurer to complete items in existing and new Strategic Plan • Treasurer should remain active in long term planning of the District • Need for a Financial Master Plan • Internal Controls • Succession Plan Additional Recommendations for Strategic Plan • Board member recommendations • Staff recommendations c ..j ,.r ._ r�.L r Costa Mesa Sanitary District Year 2005/2006 Strategic Planning Action Items The following Strategic Planning Action Items were discussed at the District's Strategic Planning Special Meeting on January 22, 2005 and adopted by the Board at a regular meeting held February 10, 2005. At regular Board meeting of December 8, 2005 the Board chose to implement the action items over a two -year period thereby revising to 2005/2006 Strategic Planning Action Items. 1. Sewer Maintenance and Operations 1.1 Proposed Agreement with City • Consider actions by City Development Services Department • Consider MCWD's inability to track new development • Consider indemnification provisions proposed by City • Consider cost savings available with contract crews • Consider MCWD statements regarding use of their Yard • Consider Yard requirements for vehicles, materials and equipment • Consider long -term potential for supervisor and one in -house crew and one contract crew • Consider City workers who have dedicated their careers to District's sewer system Action: • Assistant Manager to monitor available property • Manager /District Engineer to discuss use of MCWD Yard with MCWD General Manager • Manager /District Engineer to continue researching options Status: Manager /District Engineer discussed joint CMSD /MCWD Yard with MCWD General Manager on February 8, 2005. At March 25, 2005 City /Districts Liaison Committee, City Manager stated he anticipates approval of Agreement with City. CMSD Attorney and CCM Attorney unable to resolve indemnification language. CMSD Board of Directors requested resolution by August 2005 regular meeting. Assistant Manager identified four available properties as of August 1, 2005. CMSD Board of Directors sent letter to CCM City Council on August 10, 2005 advising of alternate means of field crew services beginning December 15 2005. CMSD received letter from CCM Mayor dated September 23, 2005 confirming end of contractual services effective December 15, 2005. Planning is continuing. New sewer maintenance and operations program implemented on December 15„ 2005. CMSD executed Rental Agreement with the Orange County Fairgrounds for temporary storage of vehicles and equipment Staff continuing to search for new District Yard. Rev. 01/09/07 FINAL C] 2. Financial Matters 2.1 Financial Master Plan Action: • Board desires long -term financial plan • New building changes historical budgets • Treasurer and Accountant continuing to input past data • Springbrook software installation and training completed • Information from City required to complete update • Budget Study Session and adoption scheduled for May /June 2005 • Master Plan, Rate Stabilization Plan and Long -term Projections require data from at least one -year term in new building • Treasurer to either complete update with Accountant or obtain temporary help • Treasurer to prepare list of items needed from City for action by Manager /District Engineer • Assistant Manager to insure Springbrook financial modules are completed in timely manner Status: Temporary accounting help obtained. Springbrook financial modules were installed. Budget Study Session and adoption of 2005 -2006 Budget occurred in June 2005. Budget Study Session and adoption of 2006 -2007 Budget occurred in June 2006. 2.2 Yearly Trash Collection and Sewer Service Charges Action: • Requires completed programming by Springbrook • Requires successful transfer of data into new system • Requires programming to add FOG charges to regular sewer charges • Requires Permit Processing Specialist to input past data • Assistant Manager and Treasurer to insure completion of work by Springbrook. • Assistant Manager to prepare timeline reflecting successful completion of tasks necessary to adopt 2005 -2006 and 2006 -2007 charges. • Completed August 1, 2005. Status: Assistant Manager ensured Springbrook financial modules were operational in time for the yearly charges. 2.3 Solid Waste Fund 01/09/07 FINAL • Existing reserves inadequate to pay off trash containers • Consider whether prepayment penalty applies • Trash tonnage continues to increase, causing higher charges • Current policy requires resident participation charge of actual cost per container • Container costs rolled into following year's charges • Desire to limit future year increases • Administrative costs are divided according to demand 2 Action: • Assistant Manager to prepare chart showing hauling component, recycling component, landfill fee component and administrative component for solid waste charges to residents • Consider options for decreasing costs of two largest components • Consider options for variable trash collection rates • Assistant Manager to review simplified variable rate structure approved by Board on October 4, 2004 and report on implementation • Consider other agencies' ability to: 1. Subsidize residential rates through commercial program 2. Decrease rates due to property tax revenues 3. Quote Contractor rates without considering Agency costs • Continue public outreach Status: Special Meeting held May 24, 2005 to consider rate stabilization fund. Treasurer prepared pie -chart showing hauling and recycling component and discussed options regarding rates. Board discussion to continue. Manager/ District Engineer obtained initial comments from CR &R regarding CMSD trash collection rates. Letter dated November 30, 2005 from CR &R received and is being analyzed by Staff. Special Meetings held May 4, 2006 and May 25, 2006 to discuss trash collection program. Special Meeting held June 19, 2006 to discuss trash collection program with Board direction to implement variable rate structure. Assistant Manager analyzed 1998 -2006 actual tonnage and presented results to the Board. Special Meeting (Public Hearing) held on July 24, 2006 to adopt 2006 -2007 rates that include variable rate program for trash collection. 2.4 Liquid Waste Fund • Manager /District Engineer aware of high current construction costs • Sewer rates are generally low • Emergency reserve in place • Long -term sewer replacement fund in place Action: • Manager /District Engineer requests review of long -term sewer replacement fund by Treasurer • Provide updates to Board as appropriate • Manager /District Engineer prepared memo with local sewer rates • FOG charges incorporated in 05 -06 Engineer's Report and rates • Special Meeting (Public Hearing) held on July 24, 2006 to adopt 2006 -2007 rates. 3. Personnel 3.1 9/80 Work Schedule with Headquarters Closed Every Other Friday • Insures core hours are covered by entire Staff • Insures Staff members can concentrate on their work • Lessens facility costs • Staff members can schedule medical appointments on Fridays off • Staff works better with 9/80 schedule • Safety concerns without 9/80 schedule 01/09/07 3 FINAL Action: • Implement 9/80 schedule following February 10, 2005 regular meeting • 9/80 schedule to be reviewed by Board after one year • Staff to insure schedule works well with holidays • Safety concerns to be addressed by video camera, buzzer or door with window • Consider part -time receptionist Status: 9/80 Schedule implemented February 10, 2005 Camera installed in District headquarters lobby area Annual Review of 9/80 Schedule occurred at March 23, 2006 regular meeting Full -Time Receptionist job description completed to be presented to Board at August 14, 2006 regular meeting for approval to advertise and hire Temporary Part-Time Receptionist hired on October 12, 2006 Full -Time Permanent Office Specialist I job description & salary structure presented to Board at November 8, 2006 regular meeting for approval to advertise and hire Full -Time Permanent Office Specialist I permanently hired on January 2, 2007 3.2 Human Resources Management Action: • Extensive Federal and State laws • District management desires training • Local consortium offers full range of services including training, manuals, on -call assistance and legal advice • Consider salary versus hourly for Management • Agendize membership in Consortium • Assistant Manager to attend training session • Delay consideration of receptionist until 9/80 and financial master plan are complete • Treasurer to propose Treasurer Succession Plan similar to Manager /District Engineer Succession Plan Status: District joined Liebert Cassidy Whitmore (LCW) Consortium on February 10, 2005. Assistant Manager attended training sessions on March 17, 2005 and April 21, 2005, October 20, 2005 and February 14, 2006. Staff ordered LCW manuals 8/17/05. Manuals received 8/29/05. Manager /District Engineer held Staff meeting on January 18, 2006, March 15, 2006, June 22, 2006, September 13, 2006 and December 11.2 - -6 to discuss employee benefit programs. 3.3 Fats, Oils and Grease (FOG) Control Program Action: • State Order results in need for expanded work force • Additional staffing currently handled using consultants • District costs approach $250,000 per year • Sewer Inspector and Ordinance Enforcement Officer may be requested for follow up inspections • District may need additional employee when Consultant participation decreases • Board approved in concept increasing sewer rates to fund program • Staff to agendize action items for Board as needed • Provide regular updates to Board • Insure computer software is modified to allow for FOG charges 01/09/07 4 FINAL Status: Consultant progressing in grease control program implementation including obtaining signed FOG permits from food service establishments. Third year Consultant services as included in 2005 -2006 CIP approved by Board at January 12, 2006 Board Meeting. 3.4 Staff Attendance at Conferences • Board desires Staff stay abreast of knowledge and issues • Conferences provide `idea- sharing' forum • Manager /District Engineer current workload is heavy • CASA conferences are dedicated to sewer matters • Treasurer currently belongs to financial management organizations • Assistant Manager is available for conferences, schedule permitting Action: • Staff to attend conferences on a case -by -case basis • Treasurer to include Staff Development Plan in 2005 -06 Budget Status: District Treasurer and Accountant attended Springbrook Working Group and will consider travel expenses for yearly conference. 4. New District Headquarters 4.1 Building Exterior Action: • Parking is limited • Assistant Manager assembling list of improvements with estimated costs including lighting, roofing, etc. • Exterior improvements would delay Open House • Assistant Manager to prepare site plan noting improvements • Maintain parking overflow plan with Church, Insurance Company and DMV • Schedule Open House for a Thursday in March • Monitor property for sale Status: Open House held on March 31, 2005 Building & Grounds Ad Hoc Committee formed and met on April 25, 2005, May 11, 2005, May 20, 2005, July 18, 2005, August 3, 2005 and August 30, 2005. Board authorized new front and rear door and flag pole; P.O. issued for doors on August 17, 2005. Board approved in concept at June 9, 2005 meeting Agreement for Landscape Architect Services; 3`d set of plans delivered and used to obtain cost proposals August 12, 2005. Manager /District Engineer allocated $75,000 in 2005 -06 CIP for Building and Grounds improvements. Staff receiving bids for remaining improvements. New roof installed May 3, 2006; column work in progress. Painting of building completed on December 22, 2006. 4.2 Public Use of Board Room • Staff prepared potential rules • Night meetings require staff overtime • Limit to non - profit, local groups • Board Room can easily be damaged • Many groups meet early in the day or at night 01/09/07 5 FINAL Action: • Reconsider Board Room use at one -year date • Security deposit would be required • MCWD no longer allows non - profit groups to use Board Room due to damage 4.3 Sewer Operations Improvements Action: • Project #101 will eliminate seven pumping stations • Pumping Stations require intensive maintenance • Pumping Station malfunctions are a cause of sewer spills • Manager /District Engineer will prioritize project Status: Manager /District Engineer reaffirmed City of Newport Beach's cooperation. Site reviews underway by CMSD Inspector and Staff. Manager /District Engineer considering consultant for preparing Environmental Constraint Study. 5. Public Outreach 5.1 Review of Recycling Programs Action: • Assistant Manager reintroduced cost/benefit analysis of all recycling programs • Previous Board action maintained all programs in place • Total cost budgeted in 2003 -04 was $81,420 excluding $25,500 in Contractor required monetary support • Recycling Committee prepared Draft 2005 -06 Goals • City Management Analyst invited to and attended December 5, 2005 Recycling Committee meeting • Continue existing Recycling Programs • Bring Draft 2005 -2006 Goals to Board Meeting for adoption • Promote County HHW Drop Off facility in Huntington Beach • Promote waterless urinals Status: 2005 -2006 Recycling Committee Goals adopted on February 10, 2005. Activities arranged each month. Staff resolved indemnification issue with SDRMA for Curbside HHW collections and Board executed new agreement at the October 12, 2005 Board of Directors meeting. 5.2 Outreach and Education • State considering acquiring Special District reserves • CMSD has opportunity to educate residents through tours of landfills, CR Transfer MRF and OCSD treatment plants • Legislation Days provide forum for meetings with Legislators 01/09/07 6 FINAL Action: • Educate residents that State acquisition of CMSD funds represents a loss of their money • Establish goal of two tours per year at a cost approximating $1,000 per tour. Tours to include one or two of the above - mentioned sites • Board to consider involvement in Legislation Day and other conferences allowing interface with Legislators • Assistant Manager to revise `Working for You' video as appropriate and continue to distribute copies Status: Recycling Committee arranged for high school tour of CR Transfer and OC landfill on Tuesday, May 24, 2005. Adult tour took place on July 13, 2005. Adult OCSD tour occurred August 24, 2005. Recycling Presentation given to Boys & Girls Club at Rea School to 20 students. Club to participate in cans /bottles activity in September 2005. Recycling Presentation for Boy Scout Troup held September 19, 2005. Public outreach resumes with schools /service organizations in September. Tours underway at CR Transfer, CR &R, F. R. Bowerman Landfill and OCSD. Board approved re -write of script for the revised CMSD video at the October 12, 2005 Board of Directors meeting. E -Waste Recycling Event with City of Costa Mesa held June 17, 2006 at City Corporation Yard. New District video outline drafted as a 5 -part modular presentation to be accessible on the CMSD website and through DVD distribution. E -Waste Recycling Event with City of Costa Mesa scheduled for February 24, 2007. 6. Strategic Planning 6.1 Elements of a Strategic Plan Action: • Reconsider mission statement if appropriate • Develop long -term vision • Develop objectives and goals tied to long -term vision • Reference numbers from goals can be included in budget • Consider the above at future Strategic Planning meetings Status: Board authorized Year 2005 Strategic Planning to be a two -year plan and re- designated as 2005/2006 Strategic Plan due to workload. Strategic Planning dates scheduled for January 26 -27, 2007. 01/09/07 FINAL rA SANQ f' G N o n' COSTA [� � ( / \]�� � /�(' /�/ /RT ( ♦D T ORA '[�/ /OJT T��, . , . an Independent Specia(District Memorandum To: . Board of Directors From: Marc Davis, District Treasurer Date: . January 22, 2007 Subject: 2006 -07 Mid -Year Budget Review This report represents a review of the status of the District's budget as of December 31, 2006. For analysis purposes, only the District's trash and sewer funds were reviewed. The mid -year review for each fund is as follows. Trash Fund The Trash Fund is expecting to have budgetary savings totaling approximately $150,000. Attachment A documents the details of the mid -year budget review of this fund. Explanations of significant variances are as follows. Revenues: • Other revenue should exceed the budget by approximately $51,000 resulting from gains on sales of assets ($10,700), implementation of trash container fees ($3,400), general property taxes ($30,000) and penalties on delinquent payment of taxes ($6,600). Expenses: Salaries and wages are projected to exceed the budget by $5,500 as a result of greater overtime ($1,300) and the hiring of the Receptionist'and Accounting Assistant ($4,200). Professional services are projected to be under budget by approximately $9,100 resulting from fewer hours incurred by the District Manager ($7,200) and savings of $1,900 by hiring the Accounting Assistant as a part -time employee. • Recycling /disposal costs are projected to be under budget by $115,000 due to a reduction in tonnage. • Interest costs will exceed the budget by approximately $19,000. The interest costs represent payment of interest on the lease of the trash containers. When the lease was fully paid, a final interest payment was due. Future years' budgets will not include this line item since the lease has been paid -off. Sewer Fund The Sewer Fund is expecting to have budgetary savings totaling approximately. $69,000. Attachment B documents the details of the mid -year budget review of this fund. Explanations of significant variances are as follows. Revenues: • Other revenues are projected to fall short of estimates by approximately $64,000. This is primarily attributable to a reduction in plan check fees and sewer charges billed directly: Expenses: • Salaries and wages are projected to exceed the budget by approximately $51,000 as a result of greater overtime ($20,000) and the hiring of the Receptionist and Accounting Assistant ($31,000). • Professional services are projected to be under budget by approximately $55,000 resulting from fewer hours incurred by the District Manager ($15,000), a reduction in plan checks ($25,000) and savings of $15;000 by hiring the Accounting Assistant as a part-time employee. • Sewer maintenance is expected to .be less than budget by approximately $133,000. This is primarily attributable to savings in the contracted pump station and sewer maintenance contracts ($145,000). This was the first year in which these contracts were let. Prior to fiscal year 2006 -07, the District contracted with the City for these services. These savings were partially offset by increased overtime incurred for pump station failures ($12,000). 2 r COSTA MESA SANITARY DISTRICT Mid -Year Budget Review Fiscal Year 2006 -07 Revenue: Trash charges Other revenue Total revenue Expenses: Salaries and wages Professional services Trash hauler Recycling /disposal Election expense Building /equipment maintenance Office expense Public information Dues and memberships Staff development Liability insurance Utilities Interest Special programs Contingency Total expenses Revenue over (under) expenses Trash Fund Estimated. Budget Actual ATTACHMENT A Variance Favorable/ (Unfavorable) $ 5,070,000 5,070,000 - 126,500 177,739 51,239 51196,500 5,247,739 51,239 .131,171 136,723 (5,552) 112,790 103,677 9,113 2,350,000 2,350,000 - 2,415,000 2,300,000 115,000 20,000 20,000 - 3,230 3,520 (290) 11,400 11,400 - 11,000 11,000 - 10,000 10,000 2,099 2,099 - 6,000 6,161 (161) 2,250 2,360 (110) 24,728 43,941 (19,213) 65,5.00 65,719 (219) 34,800 34,800 - 5,199, 968 5,101,400 98,568 $ (3,468) 146,339 149,807 K, r Revenue: Sewer charges Other revenue Total revenue COSTA MESA SANITARY DISTRICT Mid -Year. Budget Review. Fiscal Year 2006 -07 Sewer Fund Estimated Budget Actual ATTACHMENT B Variance Favorable/ (Unfavorable) $ 2,525,000 2,525,000 - «� �'6^IFCKFs, 571,000 506,915 (64,085) Expenses: Salaries and wages NO Professional services Election expense .Building /equipment maintenance Office expense Public information Dues and memberships Staff development Liability insurance Utilities Non - operating expense Sewer maintenance (BPS astha) CIP 06 -07 Contingency Total expenses Revenue over (under) expenses 3,096,000 3,031,915 (64,085) 526,151 577,435 (51,284) 410,312 355,711 54,601 25,000 25,000 - 23,500 23,900 (400) 33,200 35,200 (2,000) 11,500 11,500 - 32,371 32,371 - 26,491 26,491 - 55,000 58,145 (3,145) 23,000 21,201 1,799 115,000 115,000 - 1,012,642 879,506 133,136 775,000 775,034 (34) 23,200 23,200 - 3,092,367 2,959,694 132,673 $ 3,633 4 72,221 68,588 Costa Mesa Disposal (949) 646 -4617 IMPORTANT NOTICE REGARDING CHANGES TO YOUR TRASH COLLECTION CHARGES — SOME RESIDENTS WILL HAVE THEIR TRASH COLLECTION RATES FROZEN WHILE OTHERS WILL EXPERIENCE AN INCREASE EFFECTIVE SEPTEMBER 1, 2006 The Costa Mesa Sanitary District has experienced a significant increase in the trash collected over the last flew years as shown in the chart below. Residents are discarding an all -time high tonnage of trash and this increase has caused the trash collection program costs to rise sharply. Historical CMSD Tonnage, 199 8-2006, Forecast 2007 50,000 45,000 40,000 j 35,000 30,000 Annual Tonnage 25,000 20,000 15,000 10,000 5,000 0 FY FY FY FY FY FY FY FY FY 1998- 1999- 2000- 2001- 2002- 2003- '2004 2005- 2006- 1999 2000 2001 2002 2003 2004 2005 2006 2007 Fisca/ Year When the State of California enacted the Integrated Waste Management Act of 1989 (AB 939), one of the goals-was to have residents who discard extra trash pay a higher rate than residents who leave out less trash._ Instituting. a "variable rate structure" is also supported by Proposition 218 that placed requirements on government agencies to fairly allocate costs of service. The Board of Directors of the Costa Mesa Sanitary District also supports a variable rate structure, particularly since the extra tonnage collected over the last few years has caused the trash collection rate to rise but not all residents discard extra trash. Therefore, the Board of Directors in conjunction with the District's hauler and recycler, CR &R Incorporated, doing business as Costa Mesa Disposal, Inc. and CR Transfer, have instituted a new program. Basic Level of Service The Basic Level of Service for each residence has been established as two (2) 60- gallon containers. Residents with two (2) 90- gallon containers are being "grandfathered in" until they change their level of service, at which time the new Basic Level of Service will apply. Any resident with more than two (2) containers, regardless of size, will be charged $8 per month for each container above the first two. Billing for the "additional containers" will be quarterly, billed by CR &R directly to the resident, with the proceeds becoming the property of the Costa Mesa Sanitary District, to be used to support the trash collection program. Charges for the Basic Level of Service will continue to be included as a separate line item on each property owner's property tax bill from the Orange County Assessor. Please remember that a resident with three 60- gallon containers causes the program higher costs than a resident with two 90- gallon containers even though the total volume is equal at 180 gallons. There are extra costs associated with the extra time spent at each residence collecting the trash as well as additional wear and tear on the trash collection vehicles. Residents with the Basic Level of Service will have their Rates Frozen for 2006- 2007 The Costa Mesa Sanitary District and CR &R are pleased to have residents with the Basic Level of Service experience no increase in their trash collection rates for the 2006 -2007 fiscal year. Residents are welcome to return containers by calling Costa Mesa Disposal at (949) 646 -4617 and qualify for the Basic Level of Service by having no more than two containers as of August 31, 2006. Methods to Achieve the Basic Level of Service In order for residents to decrease the amount of trash left for collection each week, residents need to practice "source reduction." Source reduction is the practice of buying items in bulk or with less packaging. AB939 requires a 50% reduction in the amount of trash taken to landfills and the easiest way is to be more efficient in the home and office. Costa Mesa Disposal has tips for practicing source reduction and these may be obtained by calling (949) 646 -4617. Charges for "Additional Containers ", Replacement Containers and Changing Container Sizes In order to have a fair program, there are a number of rules that apply to obtaining new or replacement containers or for changing the size of existing containers. If a resident desires to obtain a third or fourth container, which requires the payment of $8 per month for each container beyond the first two containers, there is no up -front charge for the container, regardless of size. If a resident only has one 60- gallon container and desires a second 60- gallon container, which will be equal to, or lower than, the Basic Level of Service, there is no charge for the second 60- gallon container. If a resident accidentally damages a container, there is a charge for a replacement container, and the charge varies by the size of the container. There are additional scenarios for "additional containers ", replacement containers or changing container sizes, and questions regarding different circumstances may be answered by calling Costa Mesa Disposal, Inc. at (949) 646 -4617. All Trash Must Be Left Inside the Containers Residents are required to continue leaving all their trash inside the containers with the lids closed. Trash left outside the containers will NOT be collected, Protecting the Environment and Educating Our Residents There are no changes to any of the Costa Mesa Sanitary District's special recycling programs that assist residents, such as the Sharps Program (used needles) and Large Item Collection, or the school education programs including the Telephone Book Recycling Program and classroom educational activities, or the Non Profit Group Recycling Projects that provide education and monetary awards.