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Agenda Packets - Board - 2000-12-147 � COSTA MESA SANITARY DISTRICT AGENDA .Reoulalr Meeting December 14, 2000 Public °Comments.. Any meinLiFx of the: public may address the,, oard "Sodakersfon agenda items should identify themselves t 'the Clerk before'the meeting so: that their input can be prowded at the time f the dem is considered'Speakers; on' non - agenda items *will be heard at the end of the agenda` =Pursuant x. to State law the Board may not discuss or take action on non agenda dams excep under special arcumstances Speakers must fimd their, remarks to five minutes The Presiding Qffi9ef.reserves the `�nght t0 declare any Speaker out Of order's In compliance with ADA contact Joan Revak (714)754 -5087 48 hours pri to meetin g assisfance is x needed,(28 CFR�35 102 35 104 ADA Tdle II) s� r RECOMMENDED ACTION I. CALL TO ORDER - 12:00 p.m. - Conference Room 5A II. PLEDGE OF ALLEGIANCE III. INVOCATION IV. ROLL CALL V. ELECTION OF OFFICERS A. Election of District Officers V IW— (N , B. Appointment of Orange County Sanitation District Representative TIF/AP S'6 ,y- A l P C77TE s n- 94N 13r4 !0k2 Cn C. Appointment of Independent Special Districts of Orange County Representative A = 14,rvp ON vmpo , D. Appointment of Santa Ana River Flood Control Agency Representative U Fl I, W mff"r- AT awo. 616w E. Appointment of Chamber of Commerce Legislative Co�%mittee Representative AS -PWW W656,0 bras 34 26,4" F. Confirmation of CMSD Recyclin Committee Chairman (Director Worthington) 1) idl Tias (�Rialz �m 8o/0 M* G. Confirmation of CSDA Representative (Director Schafer) ✓ VI. 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, staff, or the public 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. Minute Approval 1. Recycling Committee Meeting - November 7, 2000 Approve 1 2. Investment Oversight Committee Meeting - November 9, 2000 Approve COS I A MESA SANITARY DISTRICT AGENDA • December 14, 2000 Page 2 RECOMMENDED ACTION 3. Regular Meeting — November 9, 2000 Approve Reports Manager's Reports 4. Occupancy Report and payment to Costa Mesa Disposal Approve for trash collection services for December 2000 5. Refunds No Refunds 6. Recycling Reports (a) Waste Diversion Report - November 2000 Receive and File (b) Contract Payment to CR Transfer for recycling Approve services and disposal for November 2000 Engineer's Reports 7. Project Status Report Receive and File . Treasurer's Reports 8. Financial Report as of November 30, 2000 Table 9. Report of Monies on Deposit as of November 30, 2000 Table 10. Warrant Register for December 2000 in the amount of $565,389.63 Approve Payment -------------------------------------- - - - - -- -END OF CONSENT CALENDAR--------------------------------------- -- - - -- VII. WRITTEN COMMUNICATIONS /VIII. PUBLIC COMMENTS IX. MANAGER'S REPORTS A. Recycling Committee 1. Public Outreach Program 2. Standardized Container Program 11 01 z N�o�►oPyi 3. City of Costa Mesa Recycling Programs • (a) Curbside Trash Collection Consider Proposal Set Special Meeting 17-0(1 11ffA,,. Accept Report COSTA MESA SANITARY DISTRICT December 14, 2000 AGENDA Page 3 RECOMMENDED ACTION 4. Telephone Book Recycling Program With Schools Accept Report 5. Christmas Tree Recycling Program Accept Report 6. Orange County Integrated Waste Management Sub - Regional Accept Report Group Meeting — November 15, 2000 . B. Anti - Scavenging and Screening of Trash Containers Accept Reports Enforcement Reports C. CMSD Strategic Plan 1. Meeting with Mi way City Sanitary District � &00 �(jU j� +- 4VA/CHAccept Report 2. Meetings with trategic Planning Consultant — February 1, 2, � /�` Accept Report D. C sta Mesa Disposal Field Update of Occupancy Report $'la -� Accept Report j uv ( b4b t LI�NtM 1 � 31to ( � ,Oct (AQV 014 / �iV' RN E. CMSD Yearly Survey of Orange County Residential Accept Report Trash Collection Rates X. ENGINEER'S REPORTS 0 . A. Emergency Work 1. W. 18`h Street Sewer Ratify Actions by Manager 2. Victoria Street Pumping Station Ratify Actions by Manager 3. Iowa Street Pumping Station Ratify Actions by Manager z4. Aviemore Pumping Station Ratify Actions by Manager B. Anniversary Lane Sewer Agreements Accept Report /-C. Project No. 165 — Rehabilitate Canyon Pumping Station Force Main Approve Proposal Proposal to begin design phase /D. Project No. 166 — Manhole and Pump Station Coating and Miscellaneous Approve Proposal Work - Proposal to begin design phase / E. Project No. 167 — Emerson Street Sewer Relocation Approve Proposal Proposal to begin design phase XI. TREASURER'S REPORTS • A. Governmental Accounting Standards Board Statement No. 34 (GASB 34) Accept Report COSTA MESA SANITARY DISTRICT December 14, 2000 AGENDA Page 4 RECOMMENDED • ACTION XII. ATTORNEY'S REPORTS A. Director's Compensation Accept Report XIII. LOCAL MEETINGS A. Independent Special Districts of Orange County (ISDOC) Accept Report 1. Quarterly Meeting and Election of Executive Committee Accept Report Officers - November 30, 2000 B. Local Agency Formation Commission ( LAFCO) Accept Report 1. AB LAFCO Funding by Cities, Counties and Accept Report stricts 14tH— kP,Af-kj,y (CA1APT42bVy C. Costa Mesa Chamber of Commerce Legislation Committee Accept Report D. Orange County Sanitation District 1. Regular Meeting - November 15, 2000 Accept Report • 2. Monthly Board Letter Update Accept Report E. Water Advisory Committee of Orange County (WACO) Accept Report F. CSDA Accept Report 1. 2001 Membership Dues in the amount of $2,093.00 Approve Payment G. Santa Ana River Flood Protection Agency Accept Report 1. Full Agency Meeting – November 9, 2000 Accept Report H. Special District Institute 1. Governance Seminar – February 22 -23, 2001 Consider Attendance Monterey, CA XIV. OLD BUSINESS XV. NEW BUSINESS A. Office Staffing Accept Report XVI. ORAL COMMUNICATIONS all. ADJOURNMENT 1 1 1 SARI[ h� `TA SANITARY DISTRICT p uOV O► ell • RA'�`� • • To: Board of Directors From: Joan Revak, Clerk of the District J011, Date: December 8, 2000 Subject: CMS>CD UPDATE OF ORANGE COUNTY RESIDENTIAL TRASH COLLECTION RA'T'ES Attached is an update of the CMSD Orange County Residential Trash Collection Survey originally conducted by staff in May 2000. Responses to the request for revised information were received from twenty cities. ',,yaltt fay Costa Mesa Sanitary ®isift - Orange County Residential Trash Collection Survey Revised November 2000 (7 *54 -5043 * ** 1 Unit $156.84; 2 Units $241.68; 3 Units $319.68; 4 Units 5401.28; 5 Units $475.20; 6+ Commercial Account Direct w /Hauler ** Administrative Services Charge (City Does Billing /Sets Up Accounts) Total SFR Total MFR Manuel, Semi, Contractor Projected Hauler Contract Evergreen or Monthly Monthly Any Variable % Name of Separate Who Owns Can Can Cost of How Billed By I Fully Any Required Franchise 2000 -01 Rate Bid or Rollover Contractor Who Provides Agency Trash Rate Trash Rate Rate Recycled HaulenRecycler Containers Mixed Size of Cans Cans Cans Colors Whom Automated Financing Franchise Fee Increase Negotiated Provision Performance Education Special Programs City Owns Black & Approx.1 %- 3 Bulky Item Pickups Up Per year, up to 20 Items , Republic industries Green; Black, $48,000 Into Education By Marcia Meyers, HHW Collection Center, as Anaheim Mixed 60 & 90 Hauler Owns Roto $50.75/ Green, City Utility Fully- Sanitation Fund 2% As Of Waste Station, Transfer Station, and Recycling City of Anaheim $15.20 $15.36 Yes 50% Disposal Yes Recyclables Gallon Brown Industries $55.50 Brown Bill Automated No Yes Only 7/1/00 Ne otiated 15 Years Excellent Hauler & City Center. 10 %- $496,000(25% Into General Taormina Black, Tan, Fully- Fund, 75% Slurry City of Brea $14.19 596.32 No 1 28% 1 Industries Yes No 1110 Gallon Hauler I N/A N/A Green I By City Automated i N/A Yes I Seal ) Unknown I Negotiated Yes I Excellent Hauler Bulky Item Pickup. BI- Monthly City of Buena Park $11.58 N/A No 50% Park Disposal No Yes N/A Resident NIA N/A A on Water Bill Manual NIA Yes 5% None Negotiated 10 Years Excellent city Large Item Collection, Christmas Tree Recycling, Open/ 12 Permitted Open/ Permittees & Telephone Book Recycling, Used Oil Residential City of Coate Mesa N/A Competitive N/A 54% Haulers N/A NIA N/A N/A N/A N/A N/A N/A N/A N/A No N/A N/A Competitive N/A Good city Pickup, Used Tire Recycling. Large Item Collection Once a Year Plus One -Time Call In Per Year, Telephone Book Recycling, Christmas Tree Recycling, Greeting Card Recycling, Home- - Generated Sharps Recycling, Tire Recycling, Costa Mesa Costa Mesa Up to 40 Property Property Tax Household Hazardous Waste (HHW) Beverage Sanity District $14.28 N/A No 51% Disposal No Yes Gallon Owner NIA N/A N/A Roll Manual N/A Yes N/A Unknown Ne otiated Yes Excellent CMSD Container Recycling, Newsletter Public Education. „ 8 %- $120,000 $39.00- Residential, 60 Gal $235,480 $43.00- Commercial / Hauler For 60 & 100 Roto 100 Tan & Bi- Monthly Fully- Yes -For Goes Into The 20/o-3% Per New /City For Hauler Provides Two Bulky Item Plck -Ups Per Year For City of Cypress $15.91 s13.02 No 59% Bricloeman DisDosall Yes No Gallon city Industries Gallon Green on Water Bill Automated Containers Yes General Fund Hauler Est. Negotiated Evergreen Good Onaoina Every Residential Unit. Trash & Recyclables - $12.74/67 Black, Auto, 5 %- $112,000 Gal. $11.55/ Mixed 35 & 67 Brown, SOLAG Bills Greenwaste Goes Into The Still In Up For Bid Annual Events, School Magic Show On Recycling, And City of Dana Point 35 Gal. S76.86 Yes 38% SOLAG Yes Recyclables Gallon SOLAG N/A N/A Blue Quarterly Manual N/A Yes General Fund None Existence In 2006 Good Hauler & City Puppet Shows On Recycling. City of Fountain 35 Gallon City Water Valley 1 $15.84 NIA No 16% 1 Rainbow Disoosal No Yes Maximum Resident N/A N/A N/A Bill Manual NIA Yes Yes None Negotiated Yes Excellent Hauler &City Lar a Item Collection HHW Drop Off. $111.29/mo MG Disposal/ for once a Taken To Taormina Greenwaste Up to 45 Water/ Trash Proposed -Not City & MG City of Fullerton $13.60 week icku ./A MRF Industries Only Yes Gallon Resident N/A N/A N/A Bill By City Manual I N/A Yes Adopted Yet 3.4% Negotiated No Excellent Disposal Home Composting Workshops, Used Oil Program. Property tax Free Compost Giveaway (Annual), Annual Recycle Taormina Green, & Direct Mail 8.5% Residential Newsletter Direct Mailed To All Accounts, School City of Garden Industries/ Garden Roto Black, Quarterly by Fully- 2.5% Hauler & Outreach, Earth Day, Recycling Resource Center At Grove $15.40 $104,50 N/A 55% Grove Disoosal Yes No 110 Gallon Hauler Industries $45.00 Brown District Automated No Yes Commercial— None Neqotiated Rollover Excellent District Garden Grove Regional Library. Commercial Only Monthly On 3%-$360,000 15 Year City of Huntington 32 Gallon City Water Goes Into The Evergreen City/ Hauler Beinch $16.39 N/A No 43.25% Rainbow Disposal No Yes Maximum Resident N/A N/A N A Bill Manual N/A Yes General Fund None Negotiated Provision Very Good Task Force MRF Materials Recovery Facility) Tours. 5 %- $250,000: All Green, 60% General Used Oil Recycling Program (State of CA Grant), Depends on Lid Fund /40% Waste City/ Hauler Parks (Beverage Container /Litter) Recycling (State of # of Bins & Extra for for 35, 64, 96 Denotes Contractor Fully- Management Partnership: CA Grant), Bulky Item Collection (Free Service Twice CI of Irvine 11.14 Fre uen Add'I 46% waste manaciemend Yes No Gallon Hauler Totor N/A Type Bills Directly. Automated N/A Yes Recycling Fund N/A Negotiated Fixed Term Good Hauler Funds Per Year For Each Resident). Grey- Hold Displays At Annual Events, Go Out To Schools Depends On Trash / 3 %- $248,000 If Implement Evergreen- With "Cycler" & Educate Children, Articles In Local Size & 64 & 96 Waste Waste Included Blue- Monthly By Fully- Goes Into The Yard Waste Original Was Looking To Newspapers, Composting Workshop Offered Via City of La Habra $12.87 Freauency Yes 390% Waste Mana ement Yes Yes Gallon Management Management In Rate Recycle city Automated N/A Yes General Fund Container Bid Change Good Hauler & City Fullerton Arboretum. 5 %- $70,000 Contract 10 Goes Into The Year Fixed CI of La Palma 13.29 No 50% Park D's 1 No Yes N/A Resident N/A N/A N/A Park Disposal Manual No Yes General Fund Unavailable Negotiated Term Excellent Hauler MRF Materials Recovery Facility) Tours, Tiered Rate Green 10 %- Commercial Bld 1972- Contract City City of Laguna Structure By Waste Management Mixed 35, 64, 96 ./Varying Property Tax Semi & Fully Only; $120,000 Recent as Expires w /Haulers Bulky Item Pickup, Bi- Annual HHW Roundup, Holliday Beach 13,07 units ", No 22% or Oran a County Yes Re clables Gallon Hauler Cascade N/A Lids Roll By City Automated No Yes General Fund 1.9% Negotiated 612003 Good Assistance Tree Recycling. 3 Cubic Yard Bin $67.81 Once A Extra for Black, $100,000 Goes Week Add1 Mixed 37, 65,95 Brown, Quarterly By Fully- Into The General 2.55% As Of 2 Free Bulky Item Pickups Per Year, Hauler Picks Up City of Laguna Hills, $11.44 Service Pickups 26% SOLAG Yes Recydables Gallon Hauler N/A N/A Green Hauler 1 Automated 1 No Yes Fund July 1, 2000 Bid No I Good Hauler the Trash At the Bus Stops. * ** 1 Unit $156.84; 2 Units $241.68; 3 Units $319.68; 4 Units 5401.28; 5 Units $475.20; 6+ Commercial Account Direct w /Hauler ** Administrative Services Charge (City Does Billing /Sets Up Accounts) Costa Mesa Sanitary ®astf t s - Orange County Residential Trash Collection Survey Revised November 2000 (704 -5043 arrt =mng�e ra,nuy ress�umiu.. MFR= Mutti -Famity Residence * District subsidizes cost of service from property tax revenue. District's monthly cost to provide trash collection service averages $12 to $131month Total SFR Total MFR Manual, Semi, Contractor Projected Hauler Contract Evergre en or Monthly Monthly Any Variable % Name of Separate Who Owns Can Cost of How Billed By Fully - Any Required Franchise 2000 -01 Rate Bid or Rollover Contractor Who Provides Agency Trash Rate Trash Rate Rate Recycled Haular /Recycler Containers Mixed Size of Cans Cans Manufacturer Cans Colors Whom Automated Financing Franchise Fee increase Negotiated Provision Performance Education Special Programs 5 %- $161,000 City of Laguna 37 & 67 Blue & Quarterly By Fully- Goes Into The Hauler & NI uel 12.82 $72.23 Yes 37% SOLAG No Yes Gallon SOLAG N/A N/A Black Hauler Automated No Yes General Fund None Ne otiated Evergreen Great SOLAG uarterl Newsletters. onus ecyc n, ewse er se oor UMGranT Waste Quarterly 3 Fully- Administration, Department of Conservation Grant Management Months In Automated 5 %- $176,000 75% of June 3 -1 Year Administration, Annual Household Hazardous Waste Varies By Waste Management 35, 64, 96 of Orange Green, Advance By Except Trash Goes Into The PPI - Approx. Extensions Collection Event, Bulky Item Collection, Christmas City of Lake Forest $10.52 Contract No 33% of Orange County 1 2 Carts Yes Gallon Countv Cascade N/A Grev Hauler Manual N/A Yes General Fund 1% Bid Optional Very Good Hauler Tree Recycling. city of Los pickup a Aiamitoa $12.50 Week Rainbow & Midway City 7 %- $228,000 Set Rate Midway City Midway Clty 60 & 90 Sanitary Black & Property Tax Fully- Goes Into The Under Sanitary Helping Hands for 2 -Items Per Month (Residents Sancta District $6.751 $6.75 No 49% Rainbow Transfer Yes No Gallon District El Monte Blue Roll Automated No Yes General Fund Contract Bid No Excellent District Only) Bulky Item Pick-Up, Egal-$14; Blue, Trash -Auto; Black, Recycling & 5 %- $339,000 City of Mission 32, 68,95 Otto & Tim- Royal Blue, Quarterly By Greenwaste- Goes Into The RFP/ 8 Years & 2 Newsletter Inserts, Brochures, Advertising for Local Vle o 11.95 48.93 Yes 35% BFI Yes No Gallon Hauler Fitz erald Green Hauler Manual No Yes General Fund 3.40% Negotiated Year Option Avera a Hauler Household Hazardous Waste. Ity a se ropcse Division For 45 Gallon Increase To Recycling Residential /12 (effective $2.26 City & City of Newport Surcharge Open/ Permleted Haulers 9/00 35 Monthly On Effective Recycling Beach 2.17 mo Competitive None 30% For Commercial No Yes Gal. ) Resident N/A N/A N/A Water Bill Manual N/A No N/A July 1 2000 N/A N/A Excellent Contractor None Residential Management $12.50 Total $12.50 Total , All Green, On Utility PPI Applied Bought Waste Resident/ Resident/ Lid Bill, W.M. Exclusive to the % of Franchise From Management $10.25; $10.25; Mixed 35, 64, 96 Denotes Bills Fully- Franchise Does non - disposal Orange Disp. With Approval Quarterly Newsletter, Bulky Waste, Special Events, City of Orange City/$2.25 City/$2.25 No 50% Waste Mana ement Yes Recyclables Gallon Hauler Cascade N/A Type Commercial Automated N/A Yes Not Collect A Fee revenues 5/99 No Good By City Community Event Support/Sponsorships. Add'l Green &B wn Cans are Earth Week Run Annual Event, Various City Events, $96.34/m Free;$5.45 City Policies For Recycling And Procurement, City Additional for Add'I Placentia Disposal $45.00- Black, I5 %- $285,000 City of Newsletter Articles, Recycle Placentia Teen Team, Pickups Are Black & Taormina Yes Placentia Roto $55.00 Brown, Fully- Goes Into The Placentia & Recycling Committee. Hauler Does An Annual Recycle City of Placentia $14.71 60.45 Residential 1 52% Industries Residential Comm. Only 110 Gallon Disposal Industries Each Green Tax Roll Automated COP'S Yes General Fund Unknown Bid 20 Years Excellent Hauler Placentia Newsletter & Provides Giveaway Items. $11.67/ $11.67/ $41.49/ Small Small Only For Small Blue, 5 %- $185,000 City of San $12.18/ $12.18/ Additional Mixed 35, 64, 90 Roto $50.57/ Brown, Quarterly By Fully- Goes Into The Contract 10 Quarterly Newsletter, Bulky Item Pickups, Earth Day, Clemente Lar a Lace Cans 39% SOLAG Yes Re clables Gallon SOLAG Industries Lace Black SOLAG Automated N/A Yes General Fund None Year No Great Hauler R din Awards Childrens Shows Videos Cleanu . 35 Gallon $3.25 Add'I Quarterly Newsletter, Bulky Item Pick -Up, Hauler Has $11.76/ 67 $71.01 For 35 Gallon/ Black, 5 %- $81,000 A Booth At Civic Functions, School Education, Magic City of San Juan Gallon Once A $3.37 Add'I 30 & 60 Roto Green, Fully- Goes Into The Shows With Timothy Wink On Recycling, Puppet Show Capistrano 13.30 Week Pickup 67 Gallon 42% CR &R & SOLAG Yes Yes Gallon Hauler Industries N/A Brown Hauler Automated No Yes General Fund None Negotiated No Good Hauler Program On Recycling. 35 Gallon $35.75; 64 7.5 %- Gallon $1,279,344 $40.39; 96 Burgandy, Commercial Only/ Waste Management 35, 64, 96 Cascade Gallon Grey, Bi- Monthly Fully- Goes Into The City of Santa Ana $13.39 $92.06 No 20.4% of OranaeCounty I SFR MFR Gallon city EnqineerinQ 943.92 Green By Cltv Automated Bond Yes General Fund None Bid No Excellent Hauler Annual Pamphlet. Fully - Brown, Automated 7 %: $88,000.00 65 & 96 Roto Included Blue, City On (Some Semi- Goes Into The City of Seal Seseh $12.90 $12.40 No 38.7% Briggeman Disposal Yes No Gallon Briggeman Industries In Rate Green Water Bill Some Manual ) No Yes I General Fund 2 -3% Negotiated Evergreen Excellent Hauler Flyers, Brochures. Roto City On Fully- Recycling Information Distributed On Door Hanger To Ci ty of Stanton $13.37 N/A Yes 45% CR &R Inc. No Yes 90 Gallon CR &R Industries N/A Black Water Bill Automated No Yes Yes 13.57 Negotiated Evercireen Excellent Hauler Each Resident Each Year Commercial - Hauler; Commercial Waste Management Residential 2% on Expires Good - City of Tustin $12.74 Rate 25% of Oran a County No Yes N/A Resident N/A N/A N/A on Tax Bill Manual No Yes Commercial 4 -5% Negotiated 10/00 Excellent Hauler None Full Curbside Collection, Recycling Education Tan, 5 %- $24,000 Program, 3 Special Pickups Per Year Without Mixed 30, 60,90 Approx. Green, Fully- Goes Into The Additional Charge, Christmas Tree Pickup, Free City of Villa Park $15.26 $102.00 No 67% Republic Industries Yes Recvclables Galion Hauler N/A $65.00 Brown Hauler Automated No Yes General Fund 2.3% Negotiated Yes Excellent Hauler & City Compost Pro ram. Administered City of by Midway Westminlster city - Black, 5 %- $160,000 Taormina Green, Billed By Fully- Yes Bond Goes Into The 20 Year City of Yorba Linda $15.45 $15.45 No 48% Industries Yes Yes 110 Gallon City N/A N/A Brown Hauler Automated Issue Yes General Fund None Negotiated Evergreen Excellent I Hauler arrt =mng�e ra,nuy ress�umiu.. MFR= Mutti -Famity Residence * District subsidizes cost of service from property tax revenue. District's monthly cost to provide trash collection service averages $12 to $131month I • COSTA MESA SANITARY DISTRICT Minutes of Board of Directors Regular Meeting held November 9, 2000 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in. regular session on November 9, 2000, at 6:00 p.m., in Room 1 -A of the Civic Center, 77 Fair Drive, Costa Mesa. President Perry called the meeting to order at 6:00 p.m. Vice President Schafer led the Pledge of Allegiance. Director Woodside gave the invocation. ROLL CALL: Directors Present: Directors Absent Art Perry, Arlene Schafer, Greg Woodside, James Ferryman. Dan Worthington absent and excused. Staff Present: Robin Hamers, Manager /Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Clerk of the District; Mr. Puckett, Finance Director; Ron Hayes, Accountant, Finance Department, Ron Shef, District Ordinance Enforcement Officer Others Present: None. CONSENT CALENDAR --------------------------------------------------------------------------- - - - - -- On motion by Vice President Schafer and seconded by Director Woodside, the Consent Calendar was approved as presented. Motion carried 4 -0. MINUTES Approved Minutes of Recycling Committee Meeting, October 10, 2000 The minutes for the Recycling Committee meeting of October 10, 2000, were approved as distributed. Approved Minutes of The minutes for the regular meeting of October 12, 2000, Regular Meeting, were approved as distributed. October 12, 2000 COSTA MESA SANITARY DISTRICT 2 MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 REPORTS . r MANAGER'S REPORTS Approved Occupancy Report and payment of $168,318.66 to Costa Mesa Disposal for trash collection services for November 2000 The Trash Occupancy Count documented an increase of 6 units in the occupancy report for solid waste collection as of November 1, 2000. Therefore, the total for November is 21,096. Board directed Staff to prepare a warrant for $168,318.66 to Costa Mesa Disposal on December 1, 2000, for payment for November trash collection based on the November count of 21,096. REFUNDS There were no refunds. RECYCLING REPORTS Waste Diversion Report The Waste Diversion Report for October 2000, showing a for October 2000 was 51.44% diversion rate, was received and filed. received and filed Approved Contract The Board approved contract payment to CR Transfer for Payment to CR Transfer recycling services and disposal for the month of October for $132,897.16 2000 in the amount of $132,897.16. 0 ENGINEER'S REPORTS Project Status Report was The Project Status Report for October 2000, was accepted received and filed. as submitted. TREASURER'S REPORTS Financial Report as of The Financial Report as of October 31, 2000, was accepted October 31, 2000, was as submitted. received and filed. Report of Monies on The Report of Monies on Deposit as of October 31, 2000, Deposit as of was accepted as submitted. October 31, 2000, was received and filed Approved Warrant 2001 -05 Warrant Resolution #CMSD 2001 -05 was approved, for November 2000, in the authorizing the President and Secretary to sign the warrant amount of $409,447.99. and instructing -the Finance Department to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $409,447.99. is COSTA MESA SANITARY DISTRICT ! MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9. 2000 3 • END OF-CONSENT CALENDAR -------------------------------------------------------------------------- - - - - -- WRITTEN COMMUNICATIONS Mr. Hamers reported there were no written communications. PUBLIC COMMENTS There were no public comments made. MANAGER'S REPORTS RECYCLING COMMITTEE PUBLIC OUTREACH PROGRAM Mr. Hamers reported the videotaping has been completed and a team of experts is being complied to provide voiceover and technical support services to finish the video. Mr. Fauth reported he would contact the three recommended professionals. STANDARDIZED CONTAINER PROGRAM Mr. Hamers presented a document containing a summary of the request for information responses. Mr. Hamers reported Staff would conduct a series of tests to determine the physical qualifications of each sample container. Mr. Fauth will oversee the testing process that includes crushing and dragging the containers to access their durability. Staff will be able to make a recommendation to, the Board upon completion of the testing process. A special meeting will be set to discuss the findings of the physical testing of the trash containers. Director Ferryman inquired as to the method planned for disposal of trash containers currently being used by residents. Mr. Hamers stated the removal of existing containers would be part of the implementation program with residents placing them at the curb for pick up. 40 COSTA MESA SANITARY DISTRICT 4 MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 r CITY OF COSTA MESA RECYCLING PROGRAMS • CURBSIDE TRASH COLLECTION Mr. Hamers reported the City's proposed amendment to Title 8 Ordinance requires multi - family residential developments to provide additional bins or more frequent service of their bins. The amendment will also require parcels with five or more residences to be serviced on site. According to a joint field study by Staff and Costa Mesa Disposal, the District has 129 of 168 parcels that can be serviced on site. The remaining 39 properties will require an exemption from the City and will continue to be serviced using curbside service. TIRE RECYCLING EVENT Mr. Hamers reported the tire recycling event was very successful, collecting 249 tires. Orange County Conservation Corps members transported the tires to a processing facility. A video recorded from an Orange County News (OCN) report was presented. 0 TELEPHONE BOOK RECYCLING PROGRAM WITH SCHOOLS Ms. Revak reported the 2000 Telephone Book Recycling Program is underway and will run through December 15. Bins were. placed at 26 participating schools, Orange Coast College, and City Hall. Sponsors of this year's program include: Connell Chevrolet with a $500 donation, Harbor Fair Texaco Food Mart with car wash coupons 7- Eleven donated "Slurpee" coupons and Baskin Robbins will give ice cream cone certificates for which the District will reimburse the owners $1.00 per redeemed coupon. Computer System Integrators donated $25.00 and Frank's Philadelphia donated $5.00 gift certificates. PacBell will assist the District with the cost of flyers and posters, and provide banners and publicity. Verizon reported they would not be participating this year due to a tight budget. • COSTA MESA SANITARY DISTRICT 5 - MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 ,ll MANAGER'S REPORTS ANTI - SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT REPORTS DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT Mr. Hamers presented the ordinance enforcement summary report for the four -week period beginning September 25, 2000 and ending October 22, 2000. Mr. Shef investigated new complaints and rechecked existing ordinance complaints, reporting the results to Staff. Mr. Shef distributed 35 courtesy flyers to encourage compliance. CMSD STRATEGIC PLAN MEETING WITH MIDWAY CITY SANITARY DISTRICT Midway City will be contacting the District regarding establishing a meeting date. MEETING WITH STRATEGIC PLANNING CONSULTANT Ms. Revak distributed a list outlining Board Members availability to meet with Strategic Planning Consultant, Mr. Robert Rauch. Vice President Schafer stated she would alter her plans for February 2nd, and would be available for the meetings. The dates of February 1, 2, and 3 were set for meeting with Mr. Rauch upon confirmation of his availability by Ms. Revak. SAFETY /LOSS CONTROL COMMITTEE 3RD QUARTER SEPTEMBER 2000 MEETING 4TH QUARTER OCTOBER 2000 MEETING Mr. Hamers presented the minutes for the 3rd and 4th quarter Safety /Loss Control Committee Meeting. Vice President Schafer inquired as to the expected duration of the OCSD Sewer Transfer project. Mr. Hamers reported there are extensive studies to be done and the project would not be completed in the immediate future. • COSTA MESA SANITARY DISTRICT 6 MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 x COSTA MESA DISPOSAL FIELD UPDATE OF OCCUPANCY REPORT Mr. Fauth sent a letter to Mr. Ramon Rangel dated October 23, 2000, requesting Costa Mesa Disposal, Inc. prepare a plan to accomplish a verification of trash occupancy count beginning in January 2001. Mr. Fauth reported he received a response from Mr. Rangel stating they will commence the study on January 15, appoint a person to check the addresses, and estimates the project to be completed within 3 months. Mr. Fauth reported a UCI intern would be available on January 6, 2001, to assist with the program. YEARLY UPDATE OF ORANGE COUNTY TRASH COLLECTION RATES Ms. Revak reported a letter was sent to all Orange County cities on October 27, 2000, advising the District is updating the May 2000 CMSD Orange County Residential Trash Collection Survey. Recipients are requested to update their information and return the data to the District. Ms. Revak will distribute an updated survey once all responses have been received and processed. ENGINEER'S REPORTS EMERGENCY WORK W. 18TH STREET SEWER Mr. Hamers reported that invoices for the completed work are being processed. VICTORIA STREET PUMPING STATION IOWA STREET PUMPING STATION AVIEMORE PUMPING STATION Mr. Hamers reported that construction was completed and invoices are being approved. Vice President Schafer motioned to ratify the manager's actions in the above emergency repair. Director Woodside seconded. Motion carried unanimously. ANNIVERSARY LANE SEWER AGREEMENT Mr. Hamers presented a sample agreement allowing the District to enter someone's property to install a backflow device and diversion line. Mr. Hamers explained the agreement was prepared to allow the District to install the devices for three residences on Anniversary Lane. The Anniversary Lane residences have a history of backup when the Tustin station has a power outage. • COSTA MESA SANITARY DISTRICT MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 7 Mr. Hamers reported the properties in question are at a level lower than the sewer line, and during a power outage, the sewage runs downhill to their residences. The original builders should have put a backflow device in place. Mr. Hamers reported the agreement would allow the District to install the backflow device and give the District rights to service and maintain the device. Director Ferryman motioned to authorize the President and Secretary of the Costa Mesa Sanitary District to sign and at 2107 Anniversary Lane. Director unanimously. execute the agreement for the property Woodside seconded. Motion carried SANTA ANA AVENUE PUMPING STATION - REQUEST FOR SCREEN WALL Mr. Hamers presented a letter from Mr. Dominic Sharpe- Brash, 274 Brentwood Street, requesting a brick wall be built around the pumping station located near his home. The Board determined the City Public Works Department would need to approve a brick wall surrounding the pumping station. Mr. Hamers suggested a vegetation screen would be more appropriate. Mr. Hamers will work with Mr. Sharpe -Brash to negotiate screening the pumping station and report the outcome to the Board. ATTORNEY'S REPORTS 0 INCORPORATION OF COSTA MESA SANITARY DISTRICT FINANCIAL POLICIES INTO OPERATIONS CODE COSTA MESA SANITARY DISTRICT RESOLUTION NO. 2000.641 ORDERING THAT PUBLICATION OF ORDINANCE NO. 34 AMENDING THE DISTRICT'S OPERATIONS CODE TO INCORPORATE ITS FINANCIAL POLICIES HAS OCCURRED. Mr. Burns presented Resolution No. 2000 -641, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 34 AMENDING THE DISTRICT'S OPERATIONS CODE TO INCORPORATE ITS FINANCIAL POLICIES HAS OCCURRED. Director Ferryman motioned to approve Resolution No. 2000 -641. Vice President Schafer seconded. Motion carried unanimously. TREASURER'S REPORTS INVESTMENT OVERSIGHT COMMITTEE MEETING - NOVEMBER 9, 2000 Mr. Puckett reported the Investment Oversight Committee Meeting was held on November 9, 2000 and will present minutes at the December regular meeting. No additional discussion was held regarding the investments. COSTA MESA SANITARY DISTRICT 8 MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 ATTORNEY'S REPORTS (REVISITED) DUTY WITH RESPECT TO ACCEPTING SURETY BONDS Mr. Burns reported the Court of Appeal has rendered its decision in Rankin v City of Murrieta after reconsidering its original opinion. The decision affirms that the District's current practice satisfies the District's duties under the law so there need not be any changes in procedures. LOCAL MEETINGS INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) EXECUTIVE COMMITTEE MEETING - NOVEMBER 6, 2000 Vice President Schafer attended the ISDOC meeting and reported the Committee set the agenda for the November 30th Quarterly Meeting and luncheon. QUARTERLY MEETING AND ELECTION OF EXECUTIVE COMMITTEE OFFICERS - NOVEMBER 30, 2000 • Vice President Schafer requested a representative of the Board attend the November 30th meeting to vote on behalf of the District. 0 President Perry motioned to appoint Director Woodside as the District's representative for the November 30th ISDOC meeting and Director Ferryman alternate. Vice President Schafer seconded. Motion carried unanimously. LOCAL AGENCY FORMATION COMMITTEE (LAFCO) Vice President Schafer reported she attended the LAFCO meeting of November 8th where the Committee discussed the future options for the El Toro Water District. A special training session workshop will be held on November 30th in Sacramento to acquaint the Technical Committee with AB2383. COSTA MESA CHAMBER OF COMMERCE LEGISLATION COMMITTEE Vice President Schafer reported she attended the Chamber of Commerce where they reviewed candidates for the election. ORANGE COUNTY SANITATION DISTRICT REGULAR MEETING - OCTOBER 25, 2000 Director Ferryman presented the newsletter from OCSD highlighting the strategic goals and objectives. �r L COSTA MESA SANITARY DISTRICT MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 9 Director Ferryman reported Groundwater Replenishment System workshops will be held in November and. invited any interested Board member to attend. Director Ferryman reported OCSD allocated funds to the Back Bay sewer system project at Jamboree and Newport Beach Boulevard and the Sunflower Drive replacement trunk line. Director Ferryman reported a long -term flow- monitoring program was approved to add 150 monitoring stations to help determine infiltration locations. Director Ferryman provided a report on the monitoring program for the Board's perusal. Mr. Hamers presented a letter from Deirdre Hunter, Senior Environmental Specialist, County Sanitation Districts of Orange County, thanking him for speaking at the Spill Prevention and Response Workshops. WATER ADVISORY COMMITTEE OF ORANGE COUNTY (WACO) Vice President Schafer did not attend the WACO meeting for October. ORANGE COUNTY COUNCIL OF GOVERNMENTS ( OCCOG) Vice President Schafer did not attend OCCOG due to a conflicting CSDA meeting. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) Vice President. Schafer provided a notebook for the Board's review. The next CSDA Board meeting will be held in Napa Valley. Vice President Schafer was assigned to the Special Task Force Committee and the Conference Awards Committee. Vice President Schafer will chair the next CSDA meeting. SPECIAL DISTRICT INSTITUTE ADMINISTRATION SEMINAR - OCTOBER 26-28, 2000 Vice President Schafer attended the seminar and distributed a notebook for the Board's perusal. Ms. Revak attended the session for Board secretaries and reported the seminar was very informative. GOVERNANCE SEMINAR - FEBRUARY 22 -23, 2001, MONTEREY, CALIFORNIA Ms. Revak reported the next Special District Governance Seminar would be held in Monterey on February 22 -23. Interested Board members will contact Ms. Revak for reservations. COSTA MESA SANITARY DISTRICT MINUTES - BOARD OF DIRECTORS MEETING HELD NOVEMBER 9, 2000 SANTA ANA RIVER FLOOD PROTECTION AGENCY 10 Director Ferryman attended the Santa Ana River Flood Protection Agency meeting where they discussed the Clean Water Act recently signed by the President, awarding $18 million to local projects. OLD BUSINESS ELECTION 2000 The Board congratulated President Perry and Director Ferryman for their reelection to the Costa Mesa Sanitary District Board. Ms. Revak will administer the oath on December 1, 2000. NEW BUSINESS CMSD REGULAR MEETING - THURSDAY, DECEMBER 14, 2000 President Perry suggested Board members may want to discuss changing Board positions at the December 14, 2000 regular Board meeting. Director Woodside requested the Board change the meeting time to noon. The December 14, 2000 meeting was rescheduled to noon. ORAL COMMUNICATIONS The Board set December 10, 2000 for a Christmas gathering. Mr. Hamers and Board members expressed appreciation for Ms. Revak's excellent work. ADJOURNMENT At 7:22 p.m. President Perry adjourned the meeting. SECRETARY PRESIDENT c+ U 0 T ._ ��S�,SArrr�,��♦ 0 O s OBA��`�w Costa Mesa Sanitary District Memorandum To: Robin Hamers, CMSD Manager/Engineer Bill Morris, Director of Public Services /City Engineer Ernesto Munoz, Assistant City Engineer Bruce Hartley, Maintenance Services Manager From: Thomas A. Fauth, Assistant Manager, CMSD Date: November 13, 2000 Re: RESIDENTIAL STANDARDIZED TRASH CONTAINER TEST PLAN BACKGROUND: CMSD is finalizing the selection of the contractor to manufacture, deliver, maintain appropriate inventory and warranty the Residential Standardized Trash Container Program. To date, CMSD staff has prepared and submitted the following documents to CMSD Board Members for • review and discussion: 1. August 10, 2000: Release of "Notice Inviting Proposals for Refuse Containers, Item No 527." 2. September 5, 2000: Public Opening of Submitted Proposals — 10 received. 3. September 9, 2000: Summary Proposal Top Level Criteria, Level 1 Evaluation Completed; Provided to CMSD Board in September. 4. October 4, 2000: Level 2, Standardized Container Evaluation Data Completed; Provided to CMSD Board in October. 5. October 4, 2000: Cart Manufacturer Field Survey Comments Tabulated; Provided to CMSD Board in October. 6. October 5, 2000: Request for Information #1 mailed to bidders, due October 20, 2000. 7. November 2, 3000: Request for Information #1 Summary, Interview Questions Responses, and Draft Proposal Recommendations ® Completed; Provided to CMSD Board in November. SITUATION: While all the above information is valuable in reaching a solution, I feel it is necessary to also obtain supporting test data based on our field - testing of containers in the Corporate Yard. I have prepared the attached • Standardized Container Field Test Plan, based on ANSI. standardized tests. These tests were selected as they are the most crucial to determining meaningful life expectancies and container /resin performance under various conditions. The test we cannot perform is accelerated life tests for Ultra Violet (UV) effects on material decomposition. This data also is not available (surprisingly) from any manufacturer and we must therefore rely on survey responses. RECOMMENDATION: CMSD Staff complete the Standardized Trash Container Test Plan, tabulate final results and present final recommendations to CMSD Board Members. AMERICAN NATIONAL STANDARDS INSTITUTE (ANSI) TESTS All containers appear to meet the following minimum ANSI Z245.60 standards: 1. Volumetric Loading Capacity 2. Slope Stability 3. Pulling Durability 4. Loading and Unloading 5. Center -of- Balance Position 6. Force to Tip 7. Lid In addition to the above givens, CMSD staff believe the following tests should be conducted to provide additional in -situ observational results to assist in source selection of one or more manufacturers of standardized trash containers for CMSD residential service: 1. Dynamic Crush Test 2. Bottom Surface Area Abrasion Test 3. Drop Test — Deleted since CMSD does not have the capability to conduct a quick release test. TESTS, AS ADAPTED FROM PRODUCT LIFE CYCLE TESTING, OTTO INDUSTRIES, INC: 1. DYNAMIC CRUSH TEST: PROCEDURE: 2. Place front of empty cart against an immobile stand (wall or second vehicle). 3. Attach a horizontal bar (24" from the ground) to a truck (Vehicle #1) 4. Place stop chocks to standardize stopping of the Vehicle #1 to meet step 4. 5. Crush the cart within 8" to 12" of the stand and hold for 30 seconds. 6. Release and measure recovery rate of cart or failure if any. PASS /FAIL: Carts should recover to within 25% of their original shape within 48 hours exposure to sunlight and ambient outdoor temperature. 2. BOTTOM SURFACE AREA ABRASION TEST: PROCEDURE: 1. Fill a cart with 100 lbs of water. 2. Attach a drag belt around the cart body 12" to 15" from the ground. 3. Face the cart away from the rear of a drag vehicle and attach to a hitch, bumper or hoist with a rope or chain. 4. Drag on a horizontal asphalt surface at a rate not to exceed 5 mph. MEASUREMENT: A measured course in the Corporate Yard will be clearly marked. Document the drag distance water starts to leak from the cart and examine the bottom of the cart for damage. COSTA MESA SANITARY DISTRICT Minutes of the Recycling Committee Meeting Held November 7, 2000 The Costa Mesa Sanitary District Recycling Committee met at 9:30 a.m. in conference room 1 A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Dan Worthington, Greg Woodside Staff Present: Rob Hamers, Tom Fauth, Joan Revak Public Outreach Program Mr. Fauth reported staff is continuing to work on the video as part of the public outreach program, and researching sources for the video voiceover. AT &T (formerly Media One) does not have adequate staff /time to accommodate the District in this aspect of the video. Discussion ensued on various options to investigate. Standardized Container Program Mr. Fauth presented a timeline for the standardized container program including an overview of progress made to date in the process of selecting contractor to manufacture the containers. Staff is in the process of establishing testing procedures to better evaluate life expectancies of the 18 containers submitted to the District in response to the initial Request for Proposal. Mr. Hamers recommended presenting the data to the Board of Directors at the regular meeting on November 9, 2000 and suggesting a Special Meeting be set for possible decision making on the purchase of standardized containers. City of Costa Mesa Recycling Programs Curbside Trash Collection Mr. Hamers reported on a proposed amendment by the City of Costa Mesa to Title 8 requiring parcels with five or more residences to be serviced on site. According to a joint field study by Staff and Costa Mesa Disposal, the District has 129 of 168 parcels that can be serviced on site. The remaining 39 properties will require an exemption from the City and will continue to be serviced using curbside service. Proposed flyer notifications to residents and the management companies were presented. COSTA MESA SANITARY DISTRICT 2 ° Minutes of the Recycling Committee Meeting October 10, 2000 Tire Recycling Event - October 14, 2000 Mr. Fauth reported on the Used Tire Round -Up that occurred on Saturday, October 14, 2000, at the City Corporation Yard. A total of 249 tires were collected comparing to 62 tires collected in the 1999 program. District staff manned the event and the Orange County Conservation Corps (OCCC) provided a vehicle to transport the tires to a processing facility, along with another 54 stray tires collected by the City and temporarily stored at the Corporation Yard. The bulk of collected tires came from family -use vehicles; racing tires and large truck tires were also deposited. Orange County News (OCN) staff attended and taped the event, providing excellent public exposure for the District and the City of Costa Mesa by broadcasting the report several times on Saturday, October 14 and Sunday, October 15. Multiple press releases were published in the Orange County Register and the Daily Pilot contributing to the event's success. Telephone Book Recycling Program with Schools Ms. Revak informed the Committee that the 2000 School Telephone Book Recycling Program is underway. Bins were delivered to the twenty -six participating schools, Orange Coast College and City Hall. Ms. Revak provided flyers, which listed the 26 participating schools and included names of sponsors for the program. Connell Chevrolet donated $500.00, Harbor Fair Texaco Food Mart is providing car wash coupons, 7- Eleven donated "Slurpee" coupons and Baskin Robbins will give ice cream cone certificates for which the District will reimburse the owners $1.00 per redeemed coupon. Additional sponsors are Computer System Integrators, donating $25.00 and Frank's Philadelphia with a donation of $5.00 gift certificates. Ms. Revak further advised the Committee that PacBell, as in the past, provided banners for the collection bins, publicity and will reimburse the District for the cost of flyers and posters. Verizon (GTE), who provided funds for the pizza parties last year, indicated they would not be participating in the school program this year due to a tight budget. The meeting was adjourned at 11:01 a.m. Secretary President MPOI -058 f CITY OF COSTA MESA DEPARTMENT OF FINANCE INTEROFFICE MEMORANDUM DIREC OR OF F`IN NCE TO: SANITARY DISTRICT BOARD OF DIRECTORS FROM: MARC R. PUCKETT, DISTRICT TREASURER DATE: DECEMBER 7, 2000 SUBJECT: WESTERN CITY GASB 34 ARTICLE FOR BOARD MEETING OF DECEMBER 14, 2000 Please find attached an article from the November issue of Western City magazine relating to GASB 34. This article is provided to you for your information. It is my intention to present an implementation plan to the Board during budget deliberations for the 2001 -2002 fiscal year. Implementation of this pronouncement may require that resources be dedicated to initial development of the infrastructure reporting requirements. An estimate of these implementation costs will be provided to the Board during the budget deliberation process. The District is considered a phase three government agency under the implementation timeline established within the pronouncement. As such, GASB 34 will not need to be implemented for the District until the 2003 -2004 fiscal year. If you have questions or need additional information, feel free to contact me at your convenience. MARe R. PUCKETT District Treasurer Attachment Why Is GASB 34 Such a Big D eal? by Bill Statler In June 1999, the Governmental Accounting Standards Board (GASB), which sets "generally accepted account- ing principles" (financial reporting rules) for all state and local governments, adopted the most sweeping financial reporting changes in its history.The earliest of these changes will go into effect next year. 24 League of California Cities Known as Statement No. 34: Basic Finan- cial Statements — and Managements Dis- cussion and Analysis —for State and Local Governments, this represents a fundamen- tal revision of the current financial re- porting model, which has been in place since 1979. While a number of significant changes were made — after all, the state- ment is more than 400 pages long — twc major changes are described below. Two Kinds of Financial Statements. Two distinct forms of information will be provided in the basic financial statements: 1. Governmentwide statements. These are consolidated financial statements on a full accrual basis of accounting for all of a city's operations. The governmentwide statements will not be presented on a fund basis; instead, fiscal operations will be organized into two major activities: governmental and business -type. The statements have a "net asset" focus, and exclude interfund transactions (such as inter- nal service funds) and fiduciary funds. Expenses (which may include allocated indirect costs) are to show both gross and net of related revenues, such as fees and grants. 2. Fund statements. To meet steward- ship and accountability concerns, financial statements will also be pre- sented on a fund basis, but not using the same basis of accounting as the governmentwide statements for gov- ernmental funds. Bill Statler is director of finance and city treasurer for San Luis Obispo. Management's Discussion and Analysis Financial Statements Governmentwide Fund (Full Accrual) Governmental Governmental Activities (Modified Accrual) Business -type Activities Proprietary (Full Accural) (No Internal Service or Fiduciary (Full Accrual) Fiduciary Funds) Notes to Financial Statements Required Supplementary Information (Other Than MD &A) Because there are differences in the basis of accounting and scope of transactions, there will be significant differences be- tween these two financial statements, but they are not obvious. For this reason, a detailed reconciliation between them will be required as part of the audited basic financial statements. Focus on Major Funds. In the "fund section" of the report, statements will focus on major (large) individual funds, rather than on consolidated fund types. Required Supplementary Information. There are two new elements to RSI. 1. Management's discussion and analysis (MD&A). Many cities al- ready prepare a comprehensive trans- mittal memorandum as part of their annual financial report. For some of them, this new MD&A requirement may not pose a significant additional work element. However, due to the addition of governmentwide state- ments (and required topics), the scope (and related work effort) will certainly increase. Additionally, since this is now a required part of the basic financial statements, audit costs will probably increase. 2. Budget reporting. Comparisons of budget -to- actual results for the gov- ernmental funds are no longer re- quired as part of the basic financial statements — but will be required supplementary information. And there is an added requirement: both the original and final budget must be presented. Basic Financial Statements. The chart above summarizes the flow of basic financial statements under the new model: No Account Groups. General fixed assets and long -term debt will no longer be shown as account groups. They are now to be included in the govern - mentwide financial statements as assets and liabilities. Depreciation for Governmental Activities. Under the current reporting model, depreciation is not recorded for governmental capital assets, such as those purchased through the general fund. The traditional rationale for this is an appro- priate focus on "available spendable re- sources," which is based on the simple fact that programs and projects cannot be funded through the budget process based on the current net value of fixed assets. However, in order to allocate the cost of these assets over their useful lives, the new model requires depreciation of general fixed assets. Correspondingly, the governmenRVide financial statements should not show capital expenditures, (nor should they show the principal component of debt- service payments as expenditures) but the fund -based state- ments will. Recording Infrastructure as Capital Assets and Expensing Them Through Depreciation. Current accounting prin- ciples do not require the reporting of in- frastructure costs such as roads, bridges, storm drains, street lights and traffic sig- nals as capital assets — not because they aren't major community investments, but because they are immovable, and of value only to the government. The new reporting model requires that infrastructure be reported at its "histori- cal" (nor current) value, then depreciated like other assets as discussed above. (There are several complicated options for how to do this, including not depre- ciating infrastructure assets if there is an adopted maintenance plan and assets are being maintained in accordance with that plan.) Nearly all municipal finance officers across the country vigorously op- posed this change as being very expensive with limited practical value. Notes to the Financial Statements. Al- ready long and complex, these will have to become even more complex to meet the new model's disclosure requirements. Will City Finances Look Better Or Worse? It depends on the unique circumstances of each city At the fund level, it should make little difference. At the govern - mentwide level, showing infrastructure assets on the balance sheet may improve the equity position in some cases. For others, the inclusion of long -term debt and other liabilities may reduce equity. For the handful of cities that have continued Western City, November 2000 25 GASB 34 continued prepared sample statements under the new model, the answer seems to be: no better or worse, just different. Implementation As shown in the table below, the effective date for the new model varies, depending on the financial size of the agency and its fiscal year. (The chart assumes a fiscal year beginning July 1 and ending June 30). Also, there are different effective dates for implementing the new model and prospective reporting of infrastruc- ture (assets added or deleted from the effective date of the new model) versus retroactive reporting of infrastructure back to at least 1980. Cities that have long -term debt for infra- structure assets will probably want to retroactively report infrastructure in con- junction with the new model to better match long -term liabilities and assets. So What's the Big Deal? Under GASB 34, local and state govern- ment basic financial statements will be- come longer and more complex — and thus more difficult to prepare and audit. This will be especially true when con- verting to the new model. This increased difficulty and complexity translate directly into increased costs — both one -time during implementation and ongoing thereafter — for staff Total Revenues Basic Model (Prospective Retroactive Infrastructure Reporting) Infrastructure Reporting Effective for Fiscal Year $100 million or more 2001-02, 2005 -06 $10 to $100 million 2002 -03 2006 -07 Under $10 million 2003-04 Not Required • Looking for ways to attract and retain top -notch employe Something beyond deferred compe on? . • How about a PARS -REP? (Retirement Enhancement Plan) We specialize in Governn►ental Retiremen Design, Implementatioh and Ad- Join us in Monterey at the; CALPELRA Annual Training Conference Nov 15 17 'Phase H S{ =. PA] ?.S Y= PARS-'IY�ust Afli� r� � ,i PUBLIC • AGE1C1' • RETIREMENT •SYSTEM "i - < r.: Creative So7udonr jor (800) 540 -6369 ext.127 (949) 250 -1 r r visit us online at::':www.PRSI l 26 League of California Cities resources, as well as audit fees and con- sultant services. Will the effort and cost be worth it? Goals for the new model include: • Improving financial reporting; • Enhancing awareness of fiscal issues facing states and local governments; and • Recognizing the importance of adequa- tely maintaining infrastructure. It is unclear whether the new model will achieve these goals. Finance officers are especially concerned about the potential for infrastructure reporting resulting in misunderstandings about a city's fiscal condition. Only time will tell if the new model makes it easier or harder for state- ment users to understand a city's fiscal situation and to compare it with other cities. However, it is very clear that these will be expensive changes to make. How much will it cost? Again, the short answer is, it depends on the: • Size and complexity of the city's operations; • Finance staff resources; • Age of the infrastructure; and • Availability of reliable information about current infrastructure systems. For communities with.relatively new infrastructure, this may be a less difficult undertaking than in older cities; and implementation and ongoing support may be easier for cities that have already extensively documented their infrastruc- ture through the use of geographic infor- mation systems (GIS) or established maintenance systems, such as pavement management plans. In evaluating costs, cities need to con- sider both the one -time and ongoing costs of: • Preparing the additional financial information; • Developing and maintaining the infrastructure data; and • Auditing the results. In most cases, at least initially, outside ac- counting and engineering resources will be needed to implement the new model. Two Case Studies Two cities in California recently prepared sample financial statements under the new model: Tracy (population 54,200) and Corona (population 123,000). In these pilot case studies, local firms do- nated their time to prepare the sample statements. The following estimates of the value of this pro bono work exclude the significant staff work that also was required. Tracy. Estimated costs are $25,000 for changed financial statement presentation, note preparation and MD&A review; and $25,000 to develop the infrastructure data. Corona. Estimated costs are $30,000 for changed financial statement presentation, note preparation and MD&A review; and $11,000 to develop the infrastructure data. (As noted below, this work was built on a recently completed, comprehensive fixed asset inventory that cost $55,000 to complete). These implementation costs, ranging from $40,000 450,000, should be con- sidered "order of magnitude" estimates and best -case examples for comparably sized cities for the following reasons. Tracy and Corona started from a solid financial statement base. They already prepare their annual financial reports in accordance with the high standards of the programs for excellence in financial reporting developed by the Government Finance Officers Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO). Their infra- structure assets are relatively new, and GIS applications are in place. Tracy has a comprehensive pavement management system, and Corona had )ust completed a $55,000 appraisal of its fixed assets, providing a solid staring point. Why Implement it? If GASB 34 is going to be so difficult to implement, and the benefits unclear, why do it? The new model is supported by a num- ber of users and professional associations The National Association of State Audi- tors, Comptrollers and Treasurers has endorsed the new model, as have the credit rating agencies (who are the pri- For More Information mary users of these reports). Many pub- lic works officials believe the new report- ing model will result in a better under- standing of infrastructure needs. And a number of well - respected municipal continued on page 47 The California Society of Municipal Finance Officers (CSMFO) -� website at www.csmfo.org includes a compendium of background articles on GASB 34 implementation, which can be accessed from the home page using the "GASB 34 Resources" link. CSMFO's annual conference, which will be held in Feb. 25-27, 2001, in San Jose, will include a pre- conference session on Feb. 24 about GASB 34 and a track throughout the conference on issues related to GASB 34. For more information about the conference, visit the website or phone (916) 658 -8210. At the League's annual conference, Sept 7 -9, a session about "GASB 34: What Is It? And Why Is It Such A Big Deal ?" was filled to capacity. Audio tapes of the session are available from Five Star Conference Services at (800) 350 -8273. Special Rates for Publk Employees Civil Service Employees I ?� Insurance Group CM SAFEGUARD & AUTO INSURANCE Check your local listing for a CSE agent or call 1.800.282.6848, option 1 w v v. cseinsurance. corn Western City, November 2000 I 27 J O B O P P O R T U N I T I E S Why Is GASB 34 Such a Big Deal?, continued from page 27 finance professionals think the new re- porting model better tells a city's fiscal story, and is a significant improvement over the current model. GASB is generally accepted. This is probably the most compelling reason for implementing the new model. GASB is the acknowledged authoritative body in setting generally accepted accounting principles (GAAP) for local and state agencies. Maintaining citizen confidence in city stewardship of public assets re- quires credibility and integrity in munici- pal accounting and financial reporting systems. And preparing audited financial statements in accordance with industry standards is an essential foundation in gaining and sustaining that trust. For this reason, despite its reservations about some of the changes in the new model, CSMFO, which represents more than 1,000 local government finance professionals throughout the state, has strongly encouraged its members to implement GASB 34. Summary GASB 34 represents a major change in financial reporting for local and state governments. While there are concerns about the value of some of these changes (most notably infrastructure reporting), there is widespread agreement that cities should implement these changes in order to prepare audited financial statements in accordance with generally accepted ac- counting principles. For many cities, implementing the new model should not be an overwhelming task. But for all cities, it will mean care- ful planning, staff training and allocating the resources necessary to successfully make this change. CITY _ SI�11 VALLEY Assistant to the City Manager _ Simi Valley, California, is Ranked No. 1 Safest City in the United States. It encompasses 39 square miles and is located in the southeast portion of Ventura County. The current estimated population is 111,500, yet Simi Valley maintains a unique balance of open space and City amenities. Salary Range: $62,868— $81,720 annually and excellent fringe benefits, including 2% at 55. Under direction of the City Manager will plan and direct a variety of programs and projects to include City Council agenda coordination, orgdnizational audits and studies, facilities utilization, and special projects. Equivalent to a Bachelor's degree from an accredited college or university with major course work in public administration or related field. Three years of increasingly responsible experience in public administration. Apply by: December 1, 2000. Please contact the Human Resources Office at www.simivalley.org or (805) 583 -6743. Western City, November 2000 47