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Agenda Packets - Board - 2008-02-28Arlene Schafer Vice President Jim Ferryman Director mess ... an Independent Special District Art Perry President Bob ®oten Secretary Gary Monahan Director Regular Meeting - Thursday, February 28, 2008 RECOMMENDED ACTION I. CALL TO ORDER — 5:30 p.m. — 628 W. 19th Street, Costa Mesa 11. PLEDGE OF ALLEGIANCE — Director Monahan III. INVOCATION — Thomas Fauth IV. ROLL CALL (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) 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 Sewer System Committee Meeting — January 16, 2008 2. Recycling Committee Meeting — January 22, 2008 Regular Board of Directors Meeting — January 24, 2008 Protecting our community's health 6y Ong soCuf waste and sewer coQection services. u4m crosQea gov � M Same D iAli t February 28, 2008 AGENDA Page 2 ----------------------------- - - - - -- -END OF CONSENT CALENDAR-------------------------------------- - - - - -- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Private Property Sewer Spill at 3030 Harbor Blvd. Public Hearing on District's Abatement Charges B. District Yard — 174 W. Wilson Street — CM SD #187 1. Update on Design Phase Accept Report 2. Consultant Proposal for Geo -Etka, Inc. Soils Engineer Approve Consultant C. CMSD Strategic Plan Agreement 1. Year 2007/2008 Strategic Planning Action Items Accept Report Protecting our community's heaftfi 6yprovidzing solid waste and sewer coffktion services. www. crosdcagov RECOMMENDED ACTION 4. City /Districts Liaison Committee Meeting —January 25, 2008 5. Sewer System Committee Meeting — February 13, 2008 Manager's Reports 6. Refunds No Refunds 7. Occupancy Report and payment to Costa Mesa Disposal — January 2007 Approve 8. Monthly Spill Report to State Water Resources Control Board Receive & File Engineer's Reports 9. Project Status Report Receive & File Treasurer's Reports 10. Financial Reports as of January 31, 2008 Approve 11. Treasurer's Reports as of January 31, 2008 Approve 12, Warrant Register for the month of January 2008 in the amount of Ratify Payments $996,316.98 13. Directors' Compensation and Rei mbursement of Expenses for the Approve Compensation Month of January 2008 & Ratify Expenses ----------------------------- - - - - -- -END OF CONSENT CALENDAR-------------------------------------- - - - - -- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Private Property Sewer Spill at 3030 Harbor Blvd. Public Hearing on District's Abatement Charges B. District Yard — 174 W. Wilson Street — CM SD #187 1. Update on Design Phase Accept Report 2. Consultant Proposal for Geo -Etka, Inc. Soils Engineer Approve Consultant C. CMSD Strategic Plan Agreement 1. Year 2007/2008 Strategic Planning Action Items Accept Report Protecting our community's heaftfi 6yprovidzing solid waste and sewer coffktion services. www. crosdcagov 1a V1i VMA ailita Dam L. AGENDA .February 28, 2008 Page 3 RECOMMENDED ACTION D. Sewer System Committee 1. Report on meeting held February 13, 2008 Accept Report 2. Potential Transfer of OCSD Sewers to CMSD Accept Update Report 3. Project #186 Sewer Lateral Assistance Program Update a. Approval of Special Case Scenarios Determine Reimbursement Levels & Delegate Authority to Manager /District Engineer b. 243 E. 20th Street, Costa Mesa Approve Reimbursement for two Laterals c. Presentation to the Chamber of Commerce —February 21, 2008 Accept Report E. Recycling Reports 1. Waste Diversion Report — January 2008 Receive & File F. Contract Payment to CR Transfer for Recycling Services and Disposal 1. Payment for January 2008 Services Ratify G. Ordinance Enforcement Officer's Report Accept Report H. Subcommittee to Liaison Committee on City Tree Roots Verbal Report 1. CR &R 1. Resolution of Contractual Interpretations Consider J. Equipment, Lost in Fire Update K. Personnel Update — Sewer Crew Verbal Report L. Recycling Committee — Monday, February 25, 2008, 12:00 p.m., CMSD Board Room, 628 W. 1gth Street, Costa Mesa (Directors Ooten and Schafer) 1. Recycling Committee Goals for 2007/2008 Receive & File 2. Orange Coast College Recycling Center (Guest: Mike Carey) Accept Report 3. Focus the Nation Event at Orange Coast College — February 7, 2008 Accept Report 4. Partnership with Costa Mesa High School Life Science Academy; Accept Report Assist in Expanding Recycling Programs 5. IWMD Sub - Regional Meetings and Grant Program Accept Report Protecting our community's health 6y Ong soCuf waste and sewer collection services. www.crosdca.gov W a4gay29 �75t°Y C February 2$, 2008 AGENDA Page 4 RECOMMENDED ACTION 6. Junk Mail Alternatives Accept Report 7. School Telephone Book Recycling Contest Award Presentations Accept Report 8. Report on other CMSD Recycling Programs Accept Report X. ENGINEER'S REPORTS A. Waste Discharge Requirements (WDR) Update B. Project #168 — Irvine Pumping Station Relocation 1. Allocate Additional Construction Funds Approve 2. Allocate Additional Inspection Fees Approve Proposal C. Project #175 — Cooperative Project Televising Sewer Lines 1. Allocate Additional Inspection Fees Approve Proposal XI. TREASURER'S REPORTS A. Investment Oversight Committee Meeting — February 28, 2008, 5:00 p.m. Accept Report (Directors Perry and Schafer) B. Budget Calendar for Fiscal Year 2008 -09 Budget Accept Report C. Budget Adjustment for District Yard Approve Budget Adjustment XII. ATTORNEY'S REPORTS A. Conversion of "Fixture Fees" to "Capacity Charges" Verbal Update B. Resolution No. 2008 -748 — Ordering that Ordinance No. 65 Changing the Adopt Ordinance Regular Board of Directors Meeting Date has been Published XIII. LOCAL MEETINGS (Includes Reports by all Directors Representing CMSD) A. Orange County Sanitation District (OCSD) 1. Meeting held February 27, 2008 (Director Ferryman) Accept Report B. Santa Ana River Flood Protection Agency (SARFPA) Accept Report (Next Meeting will be March 27, 2008) C. Independent Special Districts of Orange County (ISDOC) Accept Report (Director Schafer) 1. Quarterly Meeting held on Thursday, January 31, 2008 Accept Report D. Local Agency Formation Commission (LAFCO) Accept Report Protecting our community's Fieafth 6y Ong soful waste and sever collection services. www.crosdcagov AGENDA E. California Special Districts Association (CSDA) (Director Schafer) F. California Association of Sanitation Agencies (CASA) G. Special District & Local Government Institute Governance Seminar 1. February 7 -8, 2008, Palm Springs (Directors Perry & Ooten) H. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 XIV. OLD BUSINESS XV NEW BUSINESS A. Costa Mesa Chamber of Commerce Annual Membership Investment For the period 04/01/08 to 04/01/09 in the am ount of $440.00 B. Special District Leadership Foundation (SDLF) XVI. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVII. ADJOURNMENT February 28, 2008 Page 5 RECOMMENDED ACTION Accept Report Accept Report Accept Report Report on Matters Pertaining to CMSD Approve Payment Accept Report & Consider Applying for Certification Protecting out community's heafth 6y Ping soCuf waste and sewer collection sen*es. www.crosdca.gov 2 -28 -08 Great and powerful creator we thank you for bringing our humble District Board members, Staff and public together to address the issues before us. We ask for your help 1. to give of ourselves in ways that maintain and improve our community; 2. to maintain our focus with determination, and with an appropriate sense of humor; 3. and, to fuel our work with vigor, stamina, and a hearty spirit. We also pray for the souls of our recently departed. For all of this, and for a few doses of good luck and grace, we thank you for your strength. In your Name, Amen. • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING January 22, 2008 The Costa Mesa Sanitary District Recycling Committee met at 12:00 p.m. at 628 W. 19th Street, Costa Mesa. Directors Present: Bob Ooten, Art Perry Staff Present: Rob Harriers, Tom Fauth, Joan Revak, Denise Gilbert, Janel Jackson Director Ooten called the meeting to order at 12:10 p.m. 0 I. Recycling Committee Goals Director Ooten reviewed the Recycling Committee goals and noted the requested revisions of combining goals III and XI made by Staff. Director Ooten reported the plastics recycling presentation with the Campfire Girls and Boys was held on December 12, 2007. II. School Telephone Book Recycling Contest — November 14, 2007 to December 21, 2007 Ms. Revak presented the final report on the 2007 School Telephone Book Recycling Program. The program concluded on December 21, 2007 with a total of 8,752 books (15.32 tons) collected. This compares with 10,334 books (20.67 tons) collected in the 2006 Program. As directed by the Board of Directors, a grand prize will be awarded to one school in each category, elementary, middle and high school, collecting the greatest number of pounds per student. The winners in these three categories are Kline Elementary, Charles TeWinkle (7th and 8th) and Monte Vista High School, respectively. Staff recommends the Board award a second grand prize award in the amount of $400.00 to Kline School and St. Joachim Elementary School based on achieving over 10 lbs. of books per student. Additionally, Staff will recommend a special effort award in • the amount of $200 be given to schools collecting over 1.5 lbs. per student. Protecting our community's health by providing solid waste and sewer collection services. wuw.crosdca.qov Costa Mesa Sanitary District Minutes of Recycling Committee Meeting January 22, 2008 Page 2 1101 Ms. Revak provided several charts including a history of the District's School Telephone Book Program since its inception. Upon approval of the Board of Directors, awards totaling $13,743.00 will be distributed to the schools. III. 2007 Christmas Tree Recycling Program Ms. Revak presented a report on the Christmas Tree Recycling program for 2007. Tonnage for the year 2007 was 68.30 and was calculated from an actual tree count by CR &R, assuming 26 Ibs /tree. A historical perspective on the collection of Christmas trees from 1997 through 2007 was provided. IV. Costa Mesa High School Life Science Academy Staff will meet with the Costa Mesa High School Life Science Academy on January 31, 2008 to discuss expanding their recycling programs with assistance from the District. The academy involves 85 students and a CMHS teacher. V. IWMD Sub - Regional Meetings and Grant Program Assistant Manager Tom Fauth met with City of Costa Mesa Management Analyst Donna Theriault to determine a cooperative joint program between the City and District that best utilizes the $20,000 each agency will receive. The District and the City plan a cooperative program addressing the recycling needs of the residents within the District borders. The proposed program will provide an avenue for residents to properly recycle difficult household hazardous wastes including fluorescent tubes, CFLs, incandescent bulbs and household batteries. The pilot compost bin program will help reduce the volume and tonnage of collected green waste from residential units and will increase public outreach education to the public on recycling benefits and methods. A Resolution of the Board of Directors of the Costa Mesa Sanitary District establishing a Regional Recycling and Waste Diversion Grant Program will be presented to the Board of Directors for approval at their regular meeting on January 24, 2008 VI. Chemical Clean -Out Program at K -12 Schools Ms. Jackson reported on a Schools Chemical Cleanout Campaign and provided information on the program. The goals of the Campaign are to remove inappropriate, outdated, unknown and unnecessary chemicals from schools; to prevent future chemical mismanagement in schools through training, curriculum and policy change and long -term • management solutions; and to raise awareness of chemical issues in schools and promote sustainable solutions. Protecting our community's Health by providing solod waste and sewer collection services. ,qov • IJ �+ Costa Mesa Sanitary District Minutes of Recycling Committee Meeting January 22, 2008 Page 3 President Perry reported on how Costa Mesa high schools deal with hazardous waste materials. At Estancia High School all the chemicals are stored in a custodial room and twice a year chemicals are picked up and taken to the Newport -Mesa Consolidated School District. President Perry reported the School District is doing a good job on handling chemical cleanout. Director Ooten suggested checking with grade schools on how they handle hazardous waste. VI. Update on Sharps Program Expansion to CVS Pharmacy Ms. Gilbert provided a listing of pharmacies located in Costa Mesa highlighting the pharmacies participating in the CMSD Sharps program. To provide a balance of Sharps - participating pharmacies, it was suggested adding pharmacies on the east side of the District. The FY -07/08 budget for the Sharps program is $10,000. VII. Report on other CMSD Recycling Programs Staff presented a PennySaver ad in the South West Costa Mesa area. The Orange E Waste at 536 North Cypress Street in Orange advertises free pick up of TVs, Monitors and computers. VIII. Public Comments No members of the public were in attendance. Director Ooten adjourned the meeting at 1:00 p.m. Secretary President Protecting our community's health by providing soUd waste and sewer collection services. wu w.crosdcagov • r1 LJ COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on January 24, 2008, at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. President Perry called the meeting to order at 5:30 p.m. PLEDGE OF ALLEGIANCE Director Ferryman led the Pledge of Allegiance. INVOCATION Mr. Fauth gave the invocation. ROLL CALL DIRECTORS PRESENT: Art Perry, Arlene Schafer, Bob Ooten, Gary Monahan, James Ferryman DIRECTORS ABSENT: None STAFF PRESENT: Robin B. Harriers, Manager /District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Marc Davis, Treasurer; Sherry Kallab, Accountant; Karl Dulake, Maintenance Supervisor; Denise Gilbert, Public Outreach Coordinator; Ron Shef, Ordinance Enforcement Officer; Janel Jackson, Office Specialist OTHERS PRESENT: Mr. Dan Worthington, 2963 Mindanao, Costa Mesa COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 2 . ............................... CONSENT CALENDAR . ............................... Director Ferryman motioned to approve the Consent Calendar as presented. Director Ooten seconded. Motion carried 3 -0 (with two Directors not yet in attendance.) REPORTS MINUTE APPROVAL Minutes of Recycling The Minutes of the Recycling Committee Meeting Committee Meeting — of December 10, 2007, were approved as December 10, 2007 distributed. Minutes of Sewer The Minutes of the Sewer System Committee System Committee Meeting of December 12, 2007, were approved Meeting — as distributed. December 12, 2007 Minutes of the Investment Oversight Committee — December 13, 2007 Minutes of Regular Meeting — December 13, 2007 MANAGER'S REPORTS The Minutes of the Investment Oversight Committee Meeting of December 13, 2007, were approved as distributed. The Minutes of the Regular Meeting of December 13, 2007, were approved as distributed. REFUNDS There were no refunds for the month of December 2007. Occupancy Report and The Trash Occupancy Count documented an Payment of $196,172.75 increase of 4 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of January 1, 2008. December 2007 Therefore, the total for January is 21,427. Board directed Staff to prepare a warrant for $196,172.75 for January 2008 collection based on occupancy report. Said payment in the amount of $196,172.75 to Costa Mesa Disposal to be ratified on the February 2008 warrant register. • • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 3 Monthly Spill Report to The Monthly Spill Report to the State Water State Water Resources Resources Control Board (SWRB) for December Control Board 2007 was accepted as submitted. ENGINEER'S REPORTS Project Status Report The Project Status Report dated January 2008 was accepted as submitted. TREASURER'S REPORTS Financial Report as of The Financial Report as of December 31, 2007 December 31, 2007 was accepted as submitted. Treasurer's Report as of The Treasurer's Report as of December 31, 2007 December 31, 2007 was accepted as submitted. Warrant 2008 -07 for Warrant Resolution #CMSD 2008 -07 was December 2007 in the approved, authorizing the President and Secretary 0 amount of $1,657,041.51 to sign the warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $1,657,041.51. Directors Expenses for the Director Compensation and Expense Month of December 2007 Reimbursements for the month of December 2007 were approved and ratified as follows: Director Ferryman: $884.00 President Perry: $663.00 Vice President Schafer: $900.33 Director Ooten: $1335.70 Director Monahan: $663.00 .......................... END OF CONSENT CALENDAR ......................... WRITTEN COMMUNICATION Ms. Revak reported receiving a copy of a letter from Mr. John Moorlach, C.P.A., Chairman, Orange County Board of Supervisors, Supervisor, Second District, dated January 17, 2008, to Mr. Dan Worthington. Mr. Moorlach wrote to congratulate Mr. Dan Worthington on his appointment as Vice -Chair of the Waste Management Commission. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 4 PUBLIC COMMENTS There were no public comments made. MANAGER'S REPORTS PRIVATE PROPERTY SEWER SPILL AT 3030 HARBOR BLVD. - Mr. Hamers reported Mr. Welch was unable to attend the meeting due to an emergency and requested the item be postponed until the February Regular Board Meeting. Ms. Revak will notify Mr. Welch of the time and date of the meeting. DISTRICT YARD - 174 W. WILSON STREET - CMSD #187 UPDATE ON CLOSE OF ESCROW AND DESIGN PHASE • Mr. Fauth reported escrow on the District Yard property located at 174 W. Wilson Street, closed on December 23, 2007. Mr. Fauth reported Director Ooten notified Staff that the vacant lot obtained in the purchase is in need of maintenance. Mr. Fauth contacted Trimco Landscaping who provided a bid of $425 to mitigate . the weed issue. Trimco would spray the greenery with Roundup, remove weeds once they have died, then spray the ground with a pre - emergent solution to prevent additional weeds from growing. Trimco estimated the prescribed treatment would provide weed protection for approximately 4 months. Mr. Hamers recommended Staff contact the previous owners to determine if the existing fencing is rented and decide whether to take over that rental or install replacement fencing. Mr. Hamers recommended the District resolve the fencing on the property before mitigating the weed issue. Mr. Hamers reported everything has been completed for the Design Phase and there are some items to discuss with the LEEDs consultant. LEEDS PROPOSALS Mr. Hamers provided a recommended proposal from Enovity to provide consulting services to assist the District in achieving the "Gold" accreditation level for the new Corporate Yard at 174 W. Wilson Street. Mr. Hamers explained a LEED consultant is necessary to assist the normal design team of architects and engineers and provides services from the design phase through construction until the final commissioning of the building. The project architect, RTA, along with District Staff spoke with 10 LEED consulting firms and received proposals from three: Enovity, M /Eco and TRC. 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 5 Extensive interviews were held with Enovity and M /Eco with a breakdown of services to fully understand the. scope of work proposed. Mr. Hamers reported RTA and District Staff unanimously selected Enovity as most-qualified and the best fit for the District. Enovity was requested to remove certain services from their proposal and to add others in order to best fit the design team. Enovity's - fees were reviewed in detail and their proposal is in the range `of LEED firms proposing the identical scope of work. Mr. Hamers further noted District Staff, RTA and Enovity are confident as a team in reaching the Gold accreditation level, and this level of confidence does not exist with the other consultants. Mr. Burns stated he has reviewed the agreement and has no addition_ al comments or revisions. Director Ooten motioned to approve a standard consultant Agreement with final contract language as approved by Mr. Burns, Attorney for the District, for Enovity in the amount of $67,508.00 and to increase the existing RTA contract by $7,500 to cover the "fundamental commissioning of the building by RTA's sub - consultant Popov Engineers. Director Ferryman seconded. Motion carried 3 -0." Director Ooten motioned to approve the LEEDs proposal, not to exceed $67,508.00 and an additional $7,500 for mechanical and electrical consultants as stated. Director Ferryman seconded. Motion carried as follows: Ayes: Perry, Ooten, Ferryman Noes: None CMSD STRATEGIC PLAN YEAR 2007/2008 STRATEGIC PLANNING ACTION ITEMS Mr. Hamers presented the updated 2007/2008 Strategic Plan. MID PROGRAM STRATEGIC PLANNING MEETING HELD DECEMBER 26, 2007 Mr. Hamers reported Staff met with Director Ooten on December 26, 2007 to discuss possible additional items to include in the 2007/2008 Strategic Plan. Mr. Hamers reported the group proposed four additions to the current Strategic Plan: Increase a -waste recycling, source reduction, pursue grant funding, and website information. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 6 . Director Ooten motioned to adopt the four additional Strategic Plan goals. Director Ferryman seconded. Motion carried 3 -0. SEWER SYSTEM COMMITTEE REPORT ON MEETING HELD JANUARY 16, 2008 Director Ferryman reported the Committee discussed a private property spill of 2000 gallons. Director Ferryman reported the damages from the fire resulted in approximately $255,000 worth of damage to CMSD equipment based on replacement value. Mr. Hamers suggested contacting FEMA for reimbursement considerations. Mr. Fauth spoke to the FEMA representative and reported the reimbursement would be $5,000 per claim. Mr. Fauth will revisit the issue to make sure that is the amount the District would receive through a FEMA claim. Mr. Hamers reported there is a million dollars in the major emergency fund. Director Ferryman inquired whether or not the owner of the property had insurance that would cover the District's property while being stored at their facility. Staff will investigate the possibility of an insurance reimbursement through the property owner, Jimni Systems, prior to submitting to SDRMA. Director Ferryman reported there will be a presentation to the Chamber of Commerce on February 21, 2008. Mr. Fauth reported the presentation will focus on the Sewer Lateral Assistance Program. Mr. Fauth will provide a video of the District's sewer lateral to show before and after the repairs were made. Mr. Fauth will provide copies of all materials from the presentation to Board Members. Director Ooten reported he is researching low flow toilets. PROJECT #186 SEWER LATERAL ASSISTANCE PROGRAM Director Ferryman stated the Sewer Lateral Assistance Program is a success with $20,000 of the $100,000 allocation used. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 7 • REQUEST FOR APPROVAL FOR REIMBURSEMENT FOR TWO LATERALS ON ONE PARCEL AT 223 SANTA ISABEL AVENUE Mr. Hamers received a letter from Mr. Philip Cadenhead, dated January 2, 2008, stating he owns property at 223 and 223 1/5 Santa Isabel, on one parcel, zoned R2. Each home has its own separate lateral. Mr. Cadenhead had repairs to the laterals at a cost of $15,800. He is requesting the two laterals be considered separately for refunds. _: Mr. Harriers explained how the two lines go to two different streets and there is no way to combine them. Mr. Harriers asked the Board if they would like to review each case where the resident requests more than one reimbursement. The Board determined that if it was a clear case of two separate laterals, Staff should be able to make the reimbursement decision. The Manager /District Engineer will bring back the special case scenarios for Board approval and delegation of authority. Director Ooten motioned to approve reimbursements for both laterals located at 223 and 223 1/2 Santa Isabel. Director Ferryman seconded. • Motion carried as follows: Ayes: Perry, Ooten, Ferryman Noes: None Director Monahan arrived at 5.50 p.m POTENTIAL TRANSFER OF OCSD SEWERS TO CMSD Mr. Harriers reported maps of the sewers have been delivered to OCSD and Mr. Burns is working with OCSD Counsel to resolve some issues regarding the potential transfer. RECYCLING REPORTS WASTE DIVERSION REPORT - DECEMBER 2007 Ms. Revak presented the Waste Diversion Reports for December 2007 showing a 50.59% diversion rate. • Director Monahan motioned to receive and file the reports. Director Ooten seconded. Motion carried 4 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING .JANUARY 24, 2008 PAGE 8 CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR DECEMBER 2007 SERVICES Ms. Revak presented the Invoices for December 2007 recycling services and disposal. - Director Ferryman motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of December 2007 in the amount of $158,240.18. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Ooten, Ferryman, Monahan Noes: None Director Ferryman motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of December 2007 in the amount of $16,167.30. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Ooten, Ferryman, Monahan Noes: None ORDINANCE ENFORCEMENT OFFICER'S REPORT Mr. Shef presented the Enforcement Report for the month of December 2007. Mr. Shef distributed a minimum number of courtesy notices due to the holidays and schedule changes. Mr. Shef reported trash containers were blown around during the winds and collection drivers did a very good job of picking up the scattered debris and righting the containers. Mr. Shef noted the containers placed at the schools for telephone book recycling were still remaining after the program had finished.Sub- committee to Liaison Committee on City Tree Roots - Meeting on Friday, December 14, 2007 • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 9 RESOLUTION OF CONTRACTUAL INTERPRETATIONS Mr. Hamers reported the City /District Subcommittee on City tree roots met on December 14, 2007 to discuss the issue. Mr. Hamers commended the Board of Directors for how well they communicate with the City. Director Ferryman reported the meeting was very effective and the subcommittee will meet again to develop a policy. on tree roots. - Director Monahan reported there was a lot of support from both the past and current mayors. Director Monahan reported he attended a Parks and Recreation Commission meeting where there were two tree removal requests, one on Governor Street and one on Aviemore Terrace. Both removal requests were approved. Mr. Hamers will contact Allan Roeder to inquire if there are any possible dates for a follow -up meeting. Mr. Hamers will also convey that the CMSD Board was pleased and encouraged by the City's response at the Liaison Sub - Committee meeting on City Tree Roots. • CR &R RESOLUTION OF CONTRACTUAL INTERPRETATIONS Mr. Hamers reported the item is not ready for discussion and will be brought back to the Board at a later date. DIRECTOR I.D. BADGES LEGAL ISSUES INVOLVED WITH BADGES Mr. Burns provided a report on the design and use of I.D. Badges for the Board. The badge must not be designed to resemble a peace officer badge. The badge may be used for hotel discounts but not for any type of transportation discount. A sample of the suggested design was presented to the Board. Director Schafer arrived at 6:11 p.m. Mr. Hamers directed Ms. Jackson to include an "effective until date" being the first Friday in December following the November election that that Director would be up for re- election. Mr. Burns encouraged all Board members and Staff to have an identification badge with a photograph on it to identify them when out • working with the public. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 10 is Director Ferryman motioned to approve the badge production. Director Ooten seconded. Motion carried 5 -0. PERSONNEL UPDATE - MANAGEMENT ANALYST AND SEWER CREW Mr. Fauth reported he and Mr. Dulake conducted interviews of multiple applicants for the two sewer crew positions and presented offers to two of the candidates. Both candidates accepted the offers and will begin February 6, 2008, pending passing the medical examination. Mr. Fauth reported the applications for the management analyst position are being considered. Mr. Burns inquired whether the District requires a criminal summary history from the Department of Justice and fingerprinting on job applicants. Mr. Fauth stated there is a component on the application regarding criminal history, but no fingerprints are taken. Mr. Burns will follow up with Mr. Fauth regarding fingerprinting and more substantial criminal history checks. RECYCLING COMMITTEE — TUESDAY, JANUARY 22, 2008 — 12:00 P.M., CMSD BOARDROOM, 628 W. 19T" STREET, COSTA MESA (DIRECTOR OOTEN, FERRYMAN, AND PERRY RECYCLING COMMITTEE GOALS FOR 2007/2008 Director Ooten reported the Recycling Committee met on January 22, 2008, and reviewed the recycling goals for 2007/2008. Director Ooten will meet with the Boys and Girls Club to determine if the District can assist in their recycling efforts. SCHOOL TELEPHONE BOOK RECYCLING CONTEST NOVEMBER 14- DECEMBER 21, 2007. Director Ooten reported the School Telephone Book Recycling Contest began on November 14, 2007 and concluded on December 21, 2007. Director Ooten reported there was a total of 8,752 (15.32 tons) telephone books collected during the 2007 program. A grand prize for collecting the greatest number of pounds per student will be awarded to Kline Elementary, Charles TeWinkle, and Monte Vista High School. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 11 A second prize award will go to Kline School and St. Joachim Elementary School based on achieving over 10 pounds per student. Awards totaling $13,743 will be disbursed during presentation ceremonies over the next few weeks. Director Schafer motioned to approve $13,743 to be distributed to the schools for the Telephone Book Recycling Contest. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None Director Monahan expressed concern regarding the minimum number of books per student at some of the participating schools. Discussion was held regarding modification of the participation award criteria.. Staff will develop some suggested revisions to the program and bring them back to the Board for discussion for the 2008 Telephone Book Recycling Program. • CHRISTMAS TREE RECYCLING FOR 2007 Director Ooten reported the total tonnage for the 2007 Christmas Tree Recycling program was 68.30 tons with a total of 5,254 trees being collected. COSTA MESA HIGH SCHOOL LIFE SCIENCE ACADEMY; ASSIST IN EXPANDING RECYCLING PROGRAMS Director Ooten reported the Committee discussed partnering with the Costa Mesa High School Life Science Academy to assist them in expanding their recycling programs. IWMD SUBREGIONAL MEETINGS AND GRANT PROGRAM RESOLUTION No. 2008 -747 APPROVING AN APPLICATION FOR GRANT FUNDS IN THE AMOUNT OF $20,000. Director Ooten reported the District is partnering with the City of Costa Mesa to apply for a grant from the County of Orange Integrated Waste Management Department. The joint approach is intended to promote education on recycling benefits, provide door -to -door collections or drop off programs for recycling batteries, fluorescent tubes, and light bulbs, develop a pilot sponsorship to provide composting bins, and sponsor e- waste collection events. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 12 Director Ooten introduced Resolution No. 2008 -747 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING A REGIONAL RECYCLING AND WASTE DIVERSION GRANT PROGRAM. Director Monahan motioned to adopt Resolution No. 2008 -747. Director Schafer seconded. Motion carried 5 -0. CHEMICAL CLEAN -OUT PROGRAM AT K -12 SCHOOLS Director Ooten reported the District is working with schools to determine if they are following proper procedures for the storage and removal of chemicals found in science classrooms, art classrooms, and janitorial closets from school grounds. UPDATE ON SHARPS PROGRAM EXPANSION TO CVS PHARMACY Director Ooten reported the District is currently providing Sharps containers to five pharmacies and provided a list of all pharmacies in the District to the Board for consideration of possible expansion of the program next year. Mr. Fauth reported he negotiated an arrangement for a more economical rate for the program, which would allow expansion of two to three more pharmacies. Staff will research and return to the Board with a recommendation for the Sharps Program. REPORT ON OTHER CMSD RECYCLING PROGRAMS Director Ooten reported there was an article in the PennySaver advertising the pickup of hazardous waste to Costa Mesa citizens. He requested Staff follow up on the advertisement. Ms. Jackson reported she contacted the company who verified they will pick up residential hazardous waste from a residence, year around, at not cost to the resident. Director Ooten reported on the placement of a battery bucket at Estancia High School. Director Ooten discussed viewing a video of a family who saved their trash for a three -month period in their garage. Lighting and mercury recycling opportunities are being investigated. Ms. Gilbert reported on the educational recycling presentation for a Girl Scout • troop. Ms. Gilbert showed the girls and their parents which items could be recycled and explained the symbols on the bottom of plastic containers. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 13 Ms. Gilbert stated to the girls the District will reward the troop $100 for collecting plastics and taking them to a drop off center. ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS (WDR) Mr. Harriers reported on upcoming education programs. A seminar on education materials is scheduled for February 2008, and pipe lining for May 2008. REPORT ON EMERGENCY OR NON -BID SEWER WORK — EMERGENCY PURCHASE OF PUMP FOR ELDEN PUMPING STATION Mr. Hamers reported a spare pump for Elden Pumping station was destroyed in the recent fires. During routine maintenance, the second pump at the Elden Station reached life expectancy and was ready to fail. An emergency replacement pump was purchased. Mr. Harriers requested the Board ratify the pump purchase. Director Monahan motioned to ratify the emergency purchase of a pump for $26,937.00. Director Ferryman seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None TREASURER'S REPORTS BUDGET ADJUSTMENT FOR DISTRICT YARD — PROJECT NO. 187 Mr. Davis requested the Board approve a budget adjustment in the amount of $152,500 for architectural and engineering design services and associated civil engineering services for the construction of the District yard. Director Monahan motioned to approve the budget adjustment in the amount of $152,500. Director Ferryman seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan 0 Noes: None COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 14 MID -YEAR BUDGET REVIEW Mr. Davis presented the 2007 -08 mid year budget review as of December 31, 2007. Mr. Davis reported only the overall trash and sewer funds were reviewed and provided a synopsis of the review. ATTORNEY'S REPORT -- CONVERSION OF "FIXTURE FEES" TO "CAPACITY CHARGES" Mr. Burns reported he is still working with Staff regarding the conversion of fixture fees to capacity charges and will continue to update the Board. RESOLUTION NO. 2008 -746 — ORDERING THAT ORDINANCE NO. 64 ESTABLISHING EMERGENCY PROCEDURES HAS BEEN PUBLISHED Mr. Burns presented Resolution No. 2008 -746, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 64 ESABLISHING EMERGENCY PROCEDURES HAS OCCURRED. Director Ferryman motioned to adopt Resolution No. 2008 -746. Director Schafer seconded. Motion carried 5 -0. ORDINANCE NO. 65 - CHANGING THE REGULAR BOARD OF DIRECTORS MEETING DATE Mr. Burns presented Ordinance No. 65, AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT CHANGING THE MEETING DATE OF THE REGULAR BOARD MEETING. Director Ferryman motioned to adopt Ordinance No. 65. Director Schafer seconded. Motion carried 5 -0. AMENDMENT NO.2 TO OCSD COOPERATIVE PROJECTS AGREEMENT Mr. Burns introduced Amendment No. 2 to OCSD Cooperative Projects Agreement. Director Ooten motioned to approve the amendment. Director Ferryman seconded. Motion carried 5 -0. OATH OF OFFICE FOR STAFF MEMBERS Mr. Burns reported the Oath of Office has been administered to all appropriate Staff members and they are now all on file. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 . PAGE 15 REPORT ON APPELLATE CASE IN SAN BERNARDINO PERTAINING TO TRASH CONTRACT Mr. Burns provided a report on San Bernardino v. Walsh, where the Court of Appeal held that disgorgement of company profits was the appropriate remedy for San Bernardino County because of public official dishonesty in awarding lucrative contracts to certain firms, including the trash contractor. LOCAL MEETINGS (INCLUDES REPORTS BY ALL DIRECTORS REPRESENTATING CMSD) ORANGE COUNTY SANITATION DISTRICT (OCSD) MEETING HELD JANUARY 23, 2007 (DIRECTOR FERRYMAN) Director Ferryman attended the January 23, 2008 OCSD meeting and reported the following: ❑ First reading of five -year rate increase ❑ Meeting adjourned in honor of Steve Anderson SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) REPORT ON MEETING HELD JANUARY 24, 2008 (PRESIDENT PERRY) President Perry attended the January 24, 2008 meeting and reported they discussed the following: ❑ Prado Dam and Seven Oaks Dam during January Rainfall Event ❑ Status of Federal Funding for Dam ❑ Prado Dam completion date projected to be 2009 or 2010 President Perry provided materials for the Board's perusal. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (DIRECTOR SCHAFER Director Schafer attended the January 8, 2008 meeting and reported the following: ❑ Return meetings to MWDOC headquarters ❑ Director Schafer reported on CSDA and LAFCO Director Schafer provided her notes from the meeting for the Board's perusal. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 16 DUES FOR YEAR 2008 IN THE AMOUNT OF $50 Director Monahan motioned to approve dues for ISDOC for 2008, in the amount of $50. Director Ferryman seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None QUARTERLY MEETING ON THURSDAY, JANUARY 31, 2008 AT MCWD The Quarterly Meeting will be held on Thursday, January 31, 2008. LOCAL AGENCY FORMATION COMMISSION (LAFCO) (DIRECTOR SCHAFER) Director Schafer attended the January 9, 2008 LAFCO meeting and reported the following: ❑ Banning Ranch Sphere of Influence Amendment to the City of Costa Mesa - denied the Costa Mesa Influence and placed the Banning Ranch territory in a LAFCO Sphere of Influence Study Area ❑ Election of Officers - John Withers, Chair; Susan Wilson, Vice Chair ❑ Boundary adjustments between Orange and Los Angeles County ❑ Reorganization study on MW DOC ❑ Rossmoor feasibility as a City CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (DIRECTOR SCHAFER) Director Schafer attended the January 16, 2008 Planning Commission meeting; the Legislative meeting and Finance meeting on January 17, 2008; and the Board of Director's meeting on January 18, 2008 and gave reports at all four meetings. Director Schafer will obtain an application for "District of Distinction" for the Costa Mesa Sanitary District and recommends the District apply for the honor. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) DUES FOR YEAR 2008 IN THE AMOUNT OF $6,287.90 Director Schafer motioned to approve dues for CASA in the amount of $6,287.90 Director Ooten seconded. r COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 17 Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None CASA MID -YEAR CONFERENCE JANUARY 9-12,2008 Director Schafer attended the CASA Mid Year Conference and provided a written report to the Board. Director Schafer provided written materials from the conference for the Board's perusal CASA SPRING CONFERENCE AT SQUAW CREEK - APRIL 23 -26, 2008 Directors Schafer, Ferryman, Monahan, and Ooten expressed a desire to attend the CASA Spring Conference. Director Schafer motioned to approve attendance at the CASA Spring Conference for Directors Schafer, Ferryman, Monahan, and Ooten. Director Monahan seconded. Motion carried 5 -0. jp. OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030 SOLID WASTE ASSOCIATION OF NORTH AMERICA (SWANA) WORKSHOP HELD JANUARY 10 -11, 2008 Director Ooten attended the Solid Waste Association of North America (SWANA) Workshop on January 10 -11, 2008 and reported they discussed Assembly Bill 32, which deals with greenhouse gases and calls for ways to eliminate it through reduction of solid waste in landfills. WACO Director Schafer attended the January 4, 2008 meeting and reported the following: ❑ Update reports on MWD, LAFCO, ACWA, CSDA, Legislative Report ❑ Peer Swan voted as President ❑ Property tax shift ❑ Santiago Canyon fire - coordination among fire, water districts, and local responders 11 Planning meeting to be held January 22, 2008 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JANUARY 24, 2008 PAGE 18 CHAMBER OF COMMERCE MEETING Director Schafer did not attend the meeting. OCCOG Director Schafer reported OCCOG was dark in December. _. OLD BUSINESS There was no old business discussed. NEW BUSINESS There was no new business discussed. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Ooten reminded Board members of the dedication of the Ground Water Replenishment System on January 25, 2008. 0 ADJOURNMENT President Perry adjourned the meeting at 7:40 p.m. SECRETARY PRESIDENT C� M/Mesa Consolidated water District CITY /DISTRICTS LIAISON COMMITTEE MEETING AGENDA City Committee Members: Mesa Committee Members: OMSD Committee Members 1. Desalination Update (Mesa) FRIDAY, JANUARY 25, 2008 8:00 A.M. Costa Mesa CitX Hall 77 Fair Drive, 5t Floor Costa Mesa, CA 92626 Eric R. Bever, Mayor Allan R. Mansoor, Mayor Pro Tern Allan Roeder, City Manager James Atkinson, President Fred Bockmiller, Vice President Lee Pearl, General Manager Robert Ooten, Director Gary Monahan, Director Rob Hamers, Manager /District Engineer Tom Fauth, Assistant Manager Joan Revak, Board Secretary/Program Manager/ Clerk of the District AGENDA 2. Mesa's Capital Projects (Mesa) 3. Storm Water Entering the Sewer System (CMSD) 4. Water Conservation — Low Flow Fixtures (CMSD) 5. Orange County Sanitation District Sewer Charge (City) Public Comments ther MW Next Meeting: 8:00 a.m. - Friday, April 11, 2008 — Mesa Consolidated Water • • M/Mesa Consolidated \Hater District CITY /DISTRICTS LIAISON COMMITTEE MEETING MINUTES FRIDAY, January 25, 2008 8:00 a.m. CITY OF COSTA MESA 77 Fair Drive Costa Mesa, California 92626 Mesa Committee Members: James Atkinson, President Fred Bockmiller, Vice President Lee Pearl, General Manager City Committee Members: Eric R. Bever, Mayor Allan R. Mansoor,.Mayor Pro Tern Tom Hatch, Assistant City Manager Absent Allan Roeder, City Manager CMSD Committee Members: Robert Ooten, Secretary Gary Monahan, Director Rob Harriers, Manager /District Engineer Tom Fauth, Assistant Manager Joan Revak, Board Secretary/Program Manager/ Clerk of the District Costa Mesa Mayor Eric Bever welcomed the attendees. Discussion on the agenda topics followed. 1. Desalination Update (Mesa) Mr. Pearl gave an update on the desalination project proposed by Poseidon in the City of Huntington Beach and the benefits to the City of Costa Mesa and the Water District. The project is moving ahead and requires approval by the Coastal Commission. The preferred option is to replace Mesa's 40 -year old pipeline in Adams Avenue with a new pipeline that will carry the desalinated water. Mr. Pearl reiterated he is in constant contact • with City Manager Allan Roeder to insure the proposal benefits both the City and Mesa. CITY /DISTRICTS LIAISON COMMITTEE MEETING January 25, 2008 MINUTES Page 2 • 2. Mesa's Capital Projects (Mesa) Mr. Pearl related MCWD is assessing its infrastructure and will be performing capital projects as necessary. Director Bockmiller suggested the City provide a list of grant applications the City submits for street rehabilitation projects to allow Mesa as much notice as possible to consider work on water lines in the streets where the City may be performing rehabilitation. 3. Storm Water Entering the Sewer System (CMSD) Mr. Hamers reported the CMSD is under a grant from the Orange County Sanitation District to perform sewer line televising to determine how storm water is entering the sewer system. Certain areas of the City have been identified as large contributors of storm water to the OCSD treatment plants during winter rains. City storm drain improvement projects result in reducing street flooding, which is a cause for water entering the sewer system. The study will also check the structural integrity of the sewer lines to determine whether underground water is infiltrating into the sewer lines. The District has also found a few instances of illegal private storm drain connections to the sewer system. Mr. Hamers will advise the City as the results become apparent. 4. Water Conservation — Low Flow Fixtures (CMSD) Mr. Hamers reported the Costa Mesa Sanitary District is attempting to reduce the amount of water in the sewer system. Director Ooten is active in water conservation and low flow systems and Mr. Hamers requested on behalf of the District for Mr. Pearl to provide information on low flow fixtures. Mr. Pearl provided materials related to the MCWD rebate program. The program is available to both residential and commercial customers. Mr. Pearl also distributed low flow showerheads to the Committee attendees. The water conserving showerheads are a good way to save money and Mr. Pearl advised the MCWD website provides information on low flow toilets and other water conservation information. It was suggested the City provide materials on water conservation at their permitting counter to assist in educating the public. Mr. Hamers noted the CMSD will include information on water conservation in the CMSD fall newsletter. 5. Orange County Sanitation District Sewer Charge (City) Mr. Roeder requested this item be placed on the agenda as the City has received calls from residents regarding notices from the Orange County Sanitation District of a proposed rate increase in their yearly sewer charges. Mr. Hamers explained the increase is due to funding the upgrade to full secondary treatment, funding the groundwater replenishment project, and covering the cost of maintaining the aging infrastructure. Mr. Hamers added the OCSD rates are one of the lowest in the State of California. Mr. Hamers requested the calls be directed to OCSD. I U CITY /DISTRICTS LIAISON COMMITTEE MEETING January 25, 2008 MINUTES Page 3 Public Comments No members of the public were present. Other CMSD Director Ooten advised the Committee that E -Waste can be disposed of at the Orange Coast College Recycling Center and District Staff also investigated a PennySaver ad for free pick up of TVs, monitors and computers through Orange E Waste, a company located in the City of Orange. Director Ooten also noted the CMSD and the City have co- hosted several E -Waste events. Additionally, the City and the CMSD have applied jointly for two Grants in the amount of $20,000 each from the County of Orange Integrated Waste Management Department for a Recycling and Waste Diversion Grant Program Mr. Hamers reported the CMSD Board of Directors approved a proposal for consulting services to assist the District in achieving the LEED "Gold" accreditation level for their new Corporate Yard at 174 W. Wilson Street. CMSD Director Monahan reported the meeting between the District and City Staff on "tree roots" was very beneficial. The Parks Commission is being more responsive to the • problem of tree roots in parkways. The next Liaison Committee meeting is scheduled for Friday, April 11, 2008 at 8:00 a.m. at the Mesa Consolidated Water District. The meeting was adjourned at 9:25 a.m. Robert Ooten, Secretary Costa Mesa Sanitary District E. Arthur Perry, President Costa Mesa Sanitary District COSTA MESA. SANiTAPyDzsz'I�,ic7 PROJECT STATUS REPORT February 2008 Project 1 1 1 21 00 -1 01 West Side Pumping Station Abandonment Directors Ferryman and Ooten along with Manager /District Engineer Rob Hamers, Assistant Manager Tom Fauth and Inspector Paul Guzman met with OCSD General Manager Jim Ruth and executive engineering staff on March 29, 2007 to discuss OCSD's participation in the project. It was agreed that the two agencies will work together to determine an approximate project cost for a regional facility and then meet again to discuss the feasibility. The cost estimate has been prepared and is being considered by both agencies. The CMSD updated its costs of the local sewer lines and confirmed the ability to fund the projects. A letter was sent to OCSD requesting the regional facility become a formal OCSD project and the letter was favorably received. Project 1112100-129 Bristol Street Sewer is The County of Orange plans on widening Irvine Avenue from Bristol Street to University Drive, which will cause relocation of the CMSD Irvine Pumping Station. The District can upgrade the station to a level able to serve the redevelopment of the area. The upgrade alleviates the need for the Bristol Street Pump Station and the project can be reduced to construction of a new gravity sewer only. These findings were submitted to the Orange County Development Agency and as requested the Sanitary District prepared a new three party agreement reflecting these findings. The agreement has been signed by the Sanitary District and the City of Newport Beach. Project 1112100-135 Reconstructing Force Main for Elden Pumping Station (Phase ll) Construction was completed in 1995 and the State Department of General Services (DGS) transmitted the sewer easement. The easement has been recorded and distributed to all parties. Project 1112100-159 Televising Sewer Lines Areas are televised as needed, particularly for the yearly fats, oils, and grease (FOG) program. Project 1112100-168 Irvine Pumpinq Station Remodel or Relocation Bid opening was June 4, 2007, and the Board awarded the construction contract to Vadnais Corporation. Construction is approximately 60% complete. • • Project 1112100-171 Irvine Pumping Station Force Main Rehabilitation -Phase I The design phase is continuing. Project 1112100-175 OCSD Cooperative Projects Grant - Televising CMSD Sewer Lines The televising is continuing and is approximately 75% complete. Project 1112100-180 WDR Grease Control Program Phase IV The project is continuing. Project 1112100-186 Sewer Lateral Assistance Program The project is continuing. Project 1112100-187 New Corporate Yard at 174 W. Wilson Street The design kickoff meeting was February 13, 2008 Protecting our community's health by providing solid waste and sewer collection services. www.crosdcagov COSTA 9WESA SA9UTART(DISTRICT Memorandum ... an Independent Specia(Disti is To: Board of Directors - From: Marc Davis, Treasurer /Director of Finance�,/�` Date: February 13, 2008 Subject: Treasurer's Report for the Month of January 2008 Attached is the Treasurer's Report for the month of January 2008. As required by the District's Statement of Investment Policy, the Treasurer's report delineates all investment activity during the month. This report lists the types of securities held in the District's portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of January 31, 2008. The District's investments are in compliance with the Statement of Investment Policy adopted by the Board at the July 9, 2007 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian; Bank of New York, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer's Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the Sanitary District's investment portfolio as of January 31, 2008, was 4.015 %. The yield to maturity of the portfolio was 4.022 %. The District's weighted average interest rate was 61 basis points (0.605 %) below the daily effective yield of LAIF, which was 4.620% as of January 31, 2008. The weighted average number of days to maturity for the District's total portfolio was 66 days (0.18 years). The average duration of the underlying securities in LAIF as of January 31, 2008 was 197 days. (Protecting our community s heath 6y providing solidwaste andsewer coffection services. crosdca.gov Compliance Reporting The District's investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of January 31, 2008 was 100.00 %. As of January 31, 2008, the District has adequate operating reserves necessary to meet its obligations for the next six months. • • KA COSTA MESA SANITARY DISTRICT Treasurer's Report of Pooled Cash and Investments as of January 31, 2008 Deposits Outstanding Active Accounts Bank Balance In Transits Checks Bank of America $ 265,013.52 - 610,776.51 Reconciling Items - - 159.00 Total Active Accounts 265,013.52 - 610,935.51 Investments Local Agency Investment Fund Money Market/Sweep Account Medium Term Corporate Notes Federal Agency Securities Total Investments Total Pooled Cash & Investments CMSD Solid Waste Activities CMSD Liquid Waste Activities Total Pooled Cash & Investments • Market Value $ 5,638,874.59 831,901.82 4,604,617.50 11,075,393.91 $ 11,340,407.43 Market Adjustment Increase Decrease (5,086.25) (5,086.25) $ 605,849.26 Costa Mesa Sanitary District Pooled Cash and Investments by Fund as of January 31, 2008 Marcus D. Davis -' Date Treasurer /Director of Finance 3 Book Balance $ (345,762.99) (159.00) - (345,921.99) Cost $ 5,638,874.59 831,901.82 4,599,531.25 11,070,307.66 $ 10,724,385.67 $ 2,961,063.25 7,763,322.42 $ 10,724,385.67 COSTA MESA SANITARY DISTRICT Investment Activity Summary as of January 31, 2008 Total investments outstanding as of December 31, 2007 Additions: Gain on Sale of Investment: Investment Purchases: Deductions: Investment Matuhty /Sale Proceeds: Loss on Sale of Investment: Investments Called: Net increase (decrease) in Sweep Account Net increase (decrease) in LAIF Total investments outstanding as of January 31, 2008 4 $ 11,305,823.57 (750,000.00) 797,601.26 (283,117 $ 11,070,307.66 • "Represents the LAW daily rate at 1/31/08 5 9' Comments COSTA MESNITARY DISTRICT Investment and Investment Earnings as of January 31, 2008 Interest CUSIP Purchase Maturity Coupon Investment Earned at Number Investment Date Date Rate Cost 01/31/08 n/a Local Agency Investment Fund n/a n/a 4.620% $ 5,638,874.59 n/a ** n/a Bank of New York -Sweep Acct n/a n/a 3.340% 831,901.82 n/a 3128X1AW7 Federal Home Loan Mortgage Corp. 05/14/03 05/14/08 3.750% 1,000,000.00 8,020.83 31331QS32 Federal Farm Credit Bank 06/18/03 06/18/08 3.240% 600,000.00 2,322.00 31339YDRO Federal Home Loan Bank 07/22/03 07/22/08 3.050% 1,499,531.25 1,143.75 31339YPE6 Federal Home Loan Bank 07/30/03 07130/08 3.400% 1,000,000.00 94.44 3136F34U7 Federal National Mortgage Assoc. 08/14/03 08/14/08 3.910% 500,000.00 9,069.03 $ 11,070,307.66 20,650.05 "Represents the LAW daily rate at 1/31/08 5 9' Comments COSTA MESA SANITARY DISTRICT Summary of Policy Limitations as of January 31, 2008 • % of portfolio maturing under one year 100.00% no less than 20% % of portfolio maturing over one year 0.00% 100.00% (1) Current dollar weighted average maturity as of 1/31/08 is 0 days. (2) Also limited to 20% in total. 0 *These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE H. Current % of Market Value Description 01/31/08 Maximum % U.S. Treasury Bills 0.00% UNLIMITED U.S. Treasury Notes 0.00% UNLIMITED Federal Agency Issues: FICB 0.00% 40% FFCB 5.42% 40% FLB 0.00% 40% . FHLB 22.59% 40% FNMA 4.52% 40% FHLMC 9.05% 40% Other * 0.00% 40% Banker's Acceptances 0.00% 40% Certificates of Deposit 0.00% UNLIMITED Negotiable Certificates of Deposits 0.00% 30% Commercial Paper 0.00% 15% or 30% (1) • Medium Term Corporate Notes 0.00% 30% Repurchase Agreements 0.00% UNLIMITED Reverse Repurchase Agreements 0.00% 10% of base LAIF (Local Agency Investment Fund) 50.91% 40,000,000.00 Orange County Treasurer's Pool 0.00% 35% Money Market/Mutual Funds (Sweep Acct) 7.51% 10% per fund (2) Asset - Backed /Mortgage- Backed Securities 0.00% 20% Total 100.00% % of portfolio maturing under one year 100.00% no less than 20% % of portfolio maturing over one year 0.00% 100.00% (1) Current dollar weighted average maturity as of 1/31/08 is 0 days. (2) Also limited to 20% in total. 0 *These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE H. • Description State Treasurer's Pool Money Market Mutual Fund Broker /Dealer LAI F Bank of New York Federal Home Loan Mortgage Corp. Banc of America Federal Home Loan Notes & Bonds Morgan Keegan Federal Home Loan Notes & Bonds Morgan Keegan Federal National Mortgage Assoc. Morgan Keegan Federal Farm Credit Bank Morgan Stanley Total Investments * *Represents the LAIF daily rate at 1/31/08 COSTA MESA SANITARY DISTRICT Schedule of Investments by Instrument Type as of January 31, 2008 Purchase Maturity Coupon Investment % of Market % of Data Date Rate Cost Portfolio Value Portfolio n/a Continuous 4.620% ** $ 5,638,874.59 $ 5,638,874.59 5,638,874.59 50.94% 5,638,874.59 50.91% n/a Continuous 3.340% 831,901.82 831,901.82 831,901.82 7.51% 831,901.82 7.51% 05114/03 05/14/08 3.750% 1,000,000.00 1,002,430.00 1,000,000.00 9.03% 1,002,430.00 9.05% 07/22/03 07/22/08 3.050% 1,499,531.25 1,500,468.75 07/30/03 07/30/08 3.400% 1,000,000.00 1,001,562.50 2,499,531.25 22.58% 2,502,031.25 22.59% 08/14/03 08/14/08 3.910% 500,000.00 500,156.25 500,000.00 4.52% 500,156.25 4.52% 06/18/03 06/18/08 3.240% 600,000.00 600,000.00 600,000.00 5.42% 600,000.00 5.42% $ 11,070,307.66 100.000/6 $ 11,075,393.91 100.00% 7 • Comments POOL SWEEP FHLMC FHLB FHLB FNMA FFCB Broker /Dealer Local Agency Investment Fund Bank of New York Banc of America Morgan Stanley Morgan Keegan Morgan Keegan Morgan Keegan Total Investment Portfolio Total Portfolio Weighted Avg Interest Rate Weighted Avg Yield to Maturity Weighted Avg Days to Maturity COSTA MESA SANITARY DISTRICT Investment Portfolio as of January 31, 2008 Investment Purchase Maturity Days to Coupon Yield to Investment Type Date Date Maturity Rate Maturity Cost Pool 1 4.620% ** 4.620% $ 5,638,874.59 Sweep 1 3.340% 3.340% 831,901.82 FHLMC 05/14/03 05/14/08 104 3.750% 3.740% 1,000,000.00 FFCB 06/18/03 06/18/08 139 3.240% 3.260% 600,000.00 FHLB 07/22/03 07/22/08 173 3.050% 3.090% 1,499,531.25 FHLB 07/30/03 07/30/08 181 3.400% 3.410% 1,000,000.00 FNMA 08/14/03 08/14/08 196 3.910% 3.900% 500,000.00 * *Represents the LAIF daily rate at 1/31/08 4.015% 4.022% 66 Days 0.18 Years $ 11,070,307.66 0 40 0 COSTA MESA SANITARY DISTRICT For all Maturities with Market Values as of January 31, 2008 "Represents the LAIF daily rate at 1/31/08 M Net Purchase Maturity Intuition Investment Coupon Investment Market Accrued Gain /(Loss) Date Date Broker /Dealer Type Par Rate Cost Value Interest If Sold n/a Continuous LAIF POOL $ 5,638,874.59 4.620% `* 5,638,874.59 5,638,874.59 - - n/a Continuous Bank of New York SWEEP 831,901.82 3.340% 831,901.82 831,901.82 - - 05/14/03 05/14/08 Banc of America FHLMC 1,000,000.00 3.750% 1,000,000.00 1,002,430.00 8,020.83 2,430.00 06/18/03 06/18/08 Morgan Stanley FFCB 600,000.00 3.240% 600,000.00 600,000.00 2,322.00 - 07/22/03 07/22/08 Morgan Keegan FHLB 1,500,000.00 3.050% 1,499,531.25 1,500,468.75 1,143.75 937.50 07/30103 07/30/08 Morgan Keegan FHLB 1,000,000.00 3.400% 1,000,000.00 1,001,562.50 94.44 1,562.50 08/14/03 08/14/08 Morgan Keegan FNMA 500,000.00 3.910% 500,000.00 500,156.25 9,069.03 156.25 Total Investments $11,070,776.41 11,070,307.66 11,075,393.91 20,650.05 5,086.25 "Represents the LAIF daily rate at 1/31/08 M COSTA MESA SANITARY DISTRICT Call Schedule as of January 31, 2008 Type of Purchase Maturity Coupon Investment Investment Date Date Rate Par Value Cost Call Features FFCB 06/18/03 06/18/08 3.240% $ 600,000.00 600,000.00 Continuous Call w/ 7 days notice. FNMA 08/14/03 08/14/08 3.910% 500,000.00 500,000.00 Callable 2/14/08 w/ 10 days notice. FHLB 07/22/03 07/22/08 3.050% 1,500,000.00 1,499,531.25 Callable 4122/08 w/ 5 days notice. FHLB 07/30/03 07/30/08 3.400% 1,000,000.00 1,000,000.00 Callable 4/30/08 w/ 5 days notice. FHLMC 05/14/03 05/14/08 3.750% 1,000,000.00 1,000,000.00 Callable 5/14/08 w/ 5 days notice. $ 4,600,000.00 4,599,531.25 • �0 • , , 11 COSTA MESA SANITARY DISTRICT - MATURITIES DISTRIBUTION as of January 31, 2008- 70% --------- - - - - -- --------------------------------------------------------------------- % - - - -- --------------------------------------------------------------------- - - - - -- Cost 60%- In Thousands - - - -- - - - - -- --------------------- - - - - -- --------------------------------- - - - - -- 1 - 180 Days $ 9,570 50% '" 181 - 365 Days 1,500 40% " 1 - 2 Years - 30% - - - -- --------------------------------------------------------------------------- " "" 2 - 3 Years - ° 20 /° - - - -- ------ - - - - -- ----------------------------------- ------------ - - - - -- 13.55% 3 - 4 Years _ - - - - - -- ----- - - - - -- ------------------------ - - - - -- ----------- - - - - -- 4 - 5 Years - 0.00% 0.00% 0.00% 0.00% TOTAL $ 11,070 o °i° Fir 1 -180 181 -365 1 -2 2 -3 3 -4 4 -5 Days Days Years Years Years Years r 11 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 1 1 1 1 1 1 1 1 1 1 1 1 1 AA 1 AA 1 1 1 1 AA e o o° �y\ o o ° o o° o° o° o° o ° ` ° o° o o° o° o o° o° o o^ ^ ° ^ \ L1 o° ^� o.y \ Lo° \6 ^ \`o^ \ go�T \� \' h \ry `j \T '`T `6 \T 'o T \� 1 \� `'\� h\ �4\y16 � o \� \`\ \� � \�`h 1 0r'\`L 6 \�`� � � \� 1 \� \" g y\`\L, \`y \L�6 \yl\ A \ I\ \ �\g\\L\o \LN\� ° r1 1.� 0 Costa Mesa Sanitary District Yield Curve Data as of January 31, 2008 12 • 3 month T -Bill 6 month T -Bill 2 year T -Note 3 year T -Note 5 year T -Note -CMSD- monthly -LAIF- monthly OC Pool- monthly • eloau me" eAllwirkt 4 e0ftmm" "A 90- Minute Breakfast Boost" Thursday, February 21, 2008 - 7:00 am - 8:45 am Costa Mesa Country Club, 1701 Golf Course Drive, Costa Mesa 92626 COSTA MESA SANITARY DISTRICT RESIDENTIAL SEWER LATERAL AND CLEAN OUT FINANCIAL ASSISTANCE PROGRAM - Thomas A. Fauth Assistant Manager tfauthC@crosdca qov 949 - 645 -8400, x222 The Costa Mesa Sanitary District (CMSD) sponsors the new "Residential Sewer Lateral and Clean Out Financial Assistance Program" to assist and encourage residents to regularly clean and maintain their sewer lateral. Homeowners are responsible for the entire sewer lateral from the building to the point of connection (including the connection) with the District main line. The program's goal is to help prevent sewer backups and spills through regular maintenance to protect property and the environment. The CMSD will contribute 50% of the resident's costs up to a maximum of $1,800 total per residential parcel as follows: Breakfast Sponsored B Competent Care 2900 Bristol St., Suite D107 Costa Mesa, CA 92626 Phone: 714/545 -4818 www.comr)etentcare.com dkennard @competentcare.com - Up to 50% of televising the lateral interior - Up to 50% of cleaning the lateral - Up to 50% of the cost of installing a clean out - Up to 50% of lateral reconstruction costs COMPETENT CARE Home Health Nursing t Can us today? 800 - 755 -818 ---------------- ° - - -° °---------- - - -- -o --------------------------------------------------O--O----- "90 - Minute Breakfast Boost" Save $5.00 and prepay your reservation via mail, phone or online at www.costamesachamber.com Prepaid reservations - $15.00 (when received by noon Wed., Feb. 20, 2008) or $20.00 at- the -door Name VI, MC, AMEX, 10 Account Number Company Area Code/Telephone E -mail exp. date Mail or Fax to 714/885 -9094 Costa Mesa Chamber of Commerce 1700 Adams Avenue, Suite 101 Costa Mesa, CA 92626 Please RSVP to Sandy Roy 7141885 -9090 or online at www.costamesachamber corn