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Agenda Packets - Board - 2001-04-12sANIt��y' ,.. -to a A V Y 1 � i f w ,,��//) yc��pOBA� V , COSTA MESA SANITARY DISTRICT �O� AGENDA _ 19 - Regular Meeting April 12, 2001 Public Comments. Any member of the public may address the Board. Speakers on agenda items should identify themselves to the Clerk before the meeting,so that their input can be provided at the time the item is considered. Speakers on non - agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non - agenda items except under special circumstances. Speakers must limit their remarks to five minutes. The Presiding Officer reserves the right to declare any speaker out of order. In compliance with ADA, contact Joan Revak, (714)754 -5087, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). CALL TO ORDER —6:00 p.m. - Conference Room 1A II. PLEDGE OF ALLEGIANCE 0I. INVOCATION IV. ROLL CALL V. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to be routine and will be enacted in one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board, 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 — March 6, 2001 2. Regular.Meeting — March 8, 2001 J r 3. Study Session n=' March 22,. 2001 Reports 0 Manager's Reports 4. Refunds 5. Occupancy Report and payment to Costa Mesa Disposal for trash collection services for April 2001 RECOMMENDED ACTION Approve Approve Accept and File Approve Approve Y, COSTA MESA SANITARY DISTRICT April 12, 2001 P, AGENDA Page 2 RECOMMENDED ACTION lqw 6. Recycling Reports (a) Waste Diversion Report - February 2001 Receive and File (b) Waste Diversion Report - March 2001 Receive and File (c) Contract Payment to CR Transfer for recycling Approve services and disposal for March 2001 Engineer's Reports 7. Project Status Report Receive and File Treasurer's Reports 8. Financial Report as of March 31, 2001 Accept Report 9. Report of Monies on Deposit as of March 31, 2001 Accept Report 10. Warrant Register for April 2001 in the amount of $811,512.70 Approve Payment • -------------------------------------- - - - - -- -END OF CONSENT CALENDAR--------------------------------------- - - - - -- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Review Request for Adjustment of Compensation for District Manager /Engineer 1. Closed Session — Personnel exception Government Code Section 54957 Closed Session (Note: The Brown Act authorizes a closed "personnel session" to discuss an independent contractor who functions as an officer or employee of the agency. This exception would apply to the Manager /Engineer. The Brown Act only authorizes the review of performance in closed session. Compensation may not be finally set in closed session. Government Code Sections 54957, 54957.6) 2. After reconvening from closed session, take action with respect to the request in open session. Consider Increase • COSTA MESA SANITARY DISTRICT April 12, 2001 AGENDA Page 3 4 ! RECOMMENDED ACTION / B. Review Request for Adjustment of Compensation for General Counsel 1. Closed Session — Personnel exception Government Code Section 54957 Closed Session (Note: The Brown Act authorizes a closed "personnel session" to discuss an independent contractor who functions as an officer or employee of the Agency. This exception would apply to the General Counsel. The Brown Act only authorizes the review of performance in closed session. Compensation may not be finally set in closed session. Government Code Sections 54957, 54957.6. ) 2. After reconvening from closed session, take action with respect to the Consider Increase request In open session. C. Review Request for Adjustment of Compensation for District Clerk 1. Closed Session — Personnel exception Government Code Section 54957 Closed Session (Note: The Brown Act authorizes a closed "personnel session" to review employee performance. The Brown Act only authorizes the review of performance in closed session. Compensation may not,be finally set in closed session. Government Code Sections 54957, 54957.6) 2. After reconvening from closed session, take action with respect to the Consider Increase request In open session. D. Review Increase for Peggy Preston, Minute Reporter Consider Increase / E. Recycling Committee 1. Public Outreach Program a) Costa Mesa Sanitary District Operations & Services Video Accept Report (1) Agreement with Monitor Video Productions Ratify Agreement b) Public Awareness Program of District's Sewer Facilities Accept Report (1) Grease Reduction Campaign Accept Report c) Newsletter Approve 2. Standardized Container Program Accept Report a) Overall Implementation Plan Accept Report b) Special Meeting — April 26, 2001 Confirm Date COSTA MESA SANITARY DISTRICT April 12, 2001 AGENDA Page 4 RECOMMENDE ACTION MW 3. City of Costa Mesa Recycling Programs a) Curbside Trash Collection Accept Report 4. Household Hazardous Waste Program Accept Report 5. Grasscycling Promotion Accept Report i` F. Anti - Scavenging and Screening of Trash Containers Accept Reports Enforcement Reports �G. CMSD Strategic Plan 1. Review of First Year Action Items Discussion a) Office Space and Location (1) Office Space Sub - Committee Meeting – March 19, 2001 Accept Report mapioi b) General Discussion / Discussion 2. Office Staffing Accept Report 3. Proposal from Rauch Communications for Written Summary of Consider Proposal Workshop Notes Costa Mesa Disposal Field Update of Occupancy Report Accept Repo District Spokesperson a'f$ .�) M -Iv� h' ,Discuss n IX. ENGINEER'S REPORTS i A. Emergency Work 1. Victoria Street Pump Station Ratify Actions by Manager B. Low Flow Diversion Program — ECAA 649 A C"- �d - Table C. Preventing ewer Spill w .A1 �-ih Pr, C�- � S� c�ra 1. Meeting of March 20, 2001 Accept Report �~ D. Project #129 Bristol Street Pumping Station – Request for Consider Date Study Session X. TREASURER'S REPORTS i l A. Investment Oversight Committee Meeting – April 12, 2001 Accept Report COSTA MESA SANITARY DISTRICT April 12, 2001 ,) AGENDA Page 5 M i 1 RECOMMENDED ! ACTION B. Standardized Container Program 1. Purchasing Options and Effect on Budget Accept Report C. Treatment of Directors Compensation Accept Report D. Audited Financial Statements for Year Ended June 30, 2000 Accept Report '`-XI. ATTORNEY'S REPORTS A. Changes in Conflict of Interest Laws Accept Report B. Ninth Circuit Rejects Commerce Clause Challenge to Flow Control Accept Report /'XII. LOCAL MEETINGS A. Independent Special Districts of Orange County ( ISDOC) 1. Quarterly Meeting and Election of Director Schafer Accept Report to ISDOC Permanent Seat on LAFCO - March 29, 2001 0 r 2. Recommended LAFCO Funding Formula from ISDOC Accept Report Local Agency Formation Commission ( LAFCO) Accept Report C. Costa Mesa Chamber of Commerce County Sanitation District Orange 1. Regular Meeting - March 28, 2001 Accept Report 2. Monthly Board Letter Update Accept Report /E. Water Advisory Committee of Orange County (WACO) Accept Report /F. Orange County Council of Governments (OCCOG) Accept Report ,G. CSDA Accept Report XIII. OLD BUSINESS XIV. NEW BUSINESS A. Energy Conservation - CSDA Recommended Program Consider B. Revised Regular Meeting and Study Session Dates in May Select Dates • 0 COSTA MESA SANITARY DISTRICT Minutes of the Recycling Committee Meeting Held March 6, 2001 The Costa Mesa Sanitary District Recycling Committee met at 9:30 a.m. in conference room 1A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Dan Worthington, Greg Woodside Staff Present: Rob Harriers, Tom Fauth, Joan Revak, Dawn Schmeisser, Ron Hayes PUBLIC OUTREACH PROGRAM Mr. Harriers presented a packet received from Rauch Communications containing sample newsletters and other outreach material prepared by the consultants. Mr. Harriers related time constraints have prevented staff from preparing a newsletter.. Director Worthington commented that, from the Special District Institute seminar he recently attended, it was stressed that nothing is more effective in reaching the public as a newsletter. Director Worthington will review the materials from Rauch Communications. A. Video of District's Operations and Services Mr. Fauth reported, because of rain Monitor Video Production has been unable to complete videotaping. The script is under its 6th review and the last revision is being completed. Mr. Fauth indicated the videotaping should be completed by March 15. Director Worthington indicated he would like to see the project completed so that staff can move on to other outreach programs. Director Worthington expressed concern that the project is taking such a long time to complete. B. Public Awareness of District's Sewer Facilities Mr. Hamers presented a booklet outlining the District's sewer and trash outreach programs. Copies will be distributed to the Board at the March 8, 2001, Board of Directors meeting. Ms. Revak presented prices for running an advertisement in the local papers formulated to publicize the District's sewer system and . the proposed Capacity, Management, Operations & Maintenance (CMOM) Federal Regulations. This topic will be presented to the Board at the March 8, 2001, meeting. STANDARDIZED CONTAINER PROGRAM . Mr. Harriers presented an article from the February 2001 Waste Age magazine on improving trash collection efficiency through automated service. The District Treasurer will provide financial information related to standardized containers at the March 8, 2001, meeting and a Study Session will be scheduled. COSTA MESA SANITARY DISTRICT 2 Minutes of the Recvclina Committee Iv��atina March 6. 2001 CITY OF COSTA MESA RECYCLING PROGRAMS Curbside Trash Collection Mr. Hamers reported District Staff is in the process of implementing the change required by the City of Costa Mesa Title 8 amendment, necessitating parcels with five or more residences to be serviced on site. Property owners affected are being requested to sign a release so that Costa Mesa Disposal has no liability in driving onto homeowner's property. The hold harmless agreement must be signed and on file before Costa Mesa Disposal can drive on private property and collect trash. A list of parcels that can be serviced on site and properties requiring an exemption from the City that will continue to be serviced curbside was confirmed with Costa Mesa Disposal, and delivery of flyers to units with no change in service is being made. The meeting was adjourned at 10.36 a.m. Secretary President .t • C. • • +SSSANIT*. O� f COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 8, 2001 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on March 8, 2001, at 6:00 p.m., in Room 1 -A of the Civic Center, 77 Fair Drive, Costa Mesa. President Schafer called the meeting to order at 6:00 p.m. Director Worthington led the Pledge of Allegiance. Vice President Woodside gave the invocation. ROLL CALL: Directors Present: Arlene Schafer, Greg Woodside, Art Perry, James Ferryman, Dan Worthington Directors Absent: None. Staff Present: Robin Hamers, Manager /Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Clerk of the District; Dawn Schmeisser, Assessment Specialist Marc Puckett, Finance Director; Ron Shef, District Ordinance Enforcement Officer. Others Present: Mrs. Ernie Feeney 1154 Dorset Lane, Costa Mesa 92626 CONSENT CALENDAR President Schafer requested page 11 of the Costa Mesa Sanitary District regular minutes for February 8, 2001 be corrected as follows: INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) President Schafer will be up for election to a permanent LAFCO seat on March 30, 2001, and requested Vice President Woodside attend the meeting as a voting member representing the Costa Mesa Sanitary District. Additionally, President Schafer requested a correction on page 12 of the Costa Mesa Sanitary District regular minutes for February 8, 2001, as follows: � a ��rourio� Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 y Page 2 i CSDA The theme for the CSDA annual conference will be " " "Remembering the Past and Shapinq the Future." On motion by Director Ferryman and seconded by Secretary Perry, the Consent Calendar, with corrections to the ISDOC and CSDA sections of the regular minutes for February 8, 2001, and pending Staffs verification of the waste diversion report, was approved as presented. Motion carried 5 -0. MINUTES Approved Minutes of Study The minutes for the Study Session of February 2, 2001, Session - February 2, 2001 were approved as distributed. Approved Minutes of Study The minutes for the Study Session of February 3, 2001, Session - February 3, 2001 were approved as distributed. Approved Minutes of The minutes for the Recycling Committee meeting of Recycling Committee February 6, 2001, were approved as distributed. Meeting, February 6, 2001 40 Approved Minutes of The minutes for the regular meeting of February 8, 2001, Regular Meeting, were approved as distributed. February 8, 2001 Approved Minutes of Study The minutes for the Study Session of February 15, 2001, Session, were approved as distributed. February 15, 2001 REPORTS MANAGER'S REPORTS Approved Occupancy The Trash Occupancy Count documented an increase of 2 Report and payment of units in the occupancy report for solid waste collection as $168,334.46 to Costa of March 1, 2001. Therefore, the total for March is 21,098. Mesa Disposal for trash Board directed Staff to prepare a warrant for $168,334.46 collection services for to Costa Mesa Disposal on April 1, 2001, for payment for March 2001 March trash collection based on the March count of 21,098. REFUNDS No Refunds were issued 0 • RECYCLING REPORTS Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 3 Waste Diversion Report for The Waste Diversion Report for January 2001, showing a January 2001, was 50.97 percent diversion, was received and filed. received and filed. Waste Diversion Report for The Waste Diversion Report for February 2001 was not February 200,1 was not received. received. Approved Contract The Board approved contract payment to CR Transfer for Payment to CR Transfer recycling services and disposal for the month of February for $ 116,456.40 2001 in the amount of $ 116,456.40, pending verification of waste diversion report. ENGINEER'S REPORTS Project Status Report was The Project Status Report dated March 2001, was received and filed. accepted as submitted. TREASURER'S REPORTS Financial Report as of The Financial Report as of February 28, 2001, was February 28, 2001, was received and filed. received and filed. Report of Monies on The Report of Monies on Deposit as of February 28, 2001, Deposit as of was received and filed. February 28, 2001, was received and filed Approved Warrant 2001 -09 Warrant Resolution #CMSD 2001 -09 was approved, for March 2001, in the authorizing the President and Secretary to sign the warrant amount of $436,368.30 and instructing the Finance Department to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $436,368.30. END OF CONSENT CALENDAR WRITTEN COMMUNICATIONS Mr. Harriers presented a letter from Ms. Thelma Reade and family thanking the District for the flowers sent to Nate Reade's service. +3.+ Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting r March 8, 200'i ''�•ro+ +�.� Page 4 Mr. Hamers presented a letter from Father William C. Cantrell Jr. SSC, President/CEO of St. Judes Ranch for Children, thanking the District for their card order. • PUBLIC COMMENTS President Schafer invited public comments. Ms. Feeney stated she had no comments. MANAGER'S REPORTS RECYCLING COMMITTEE PUBLIC OUTREACH PROGRAM (A) VIDEO OF DISTRICT'S OPERATIONS & SERVICES Mr. Fauth reported he is reviewing the most recent script edits and will be forwarding his comments to Mr. Hamers for his review. The script will then be returned to Mr. Cantonwine for the inclusion of voiceovers. Mr. Fauth reported the videotaping was slightly held up due to the rains and has been completed except for one final picture of a District map and an example of bulk purchasing. Mr. Fauth expected the videotape to be completed and presented to the Board at the April regular meeting. (B) PUBLIC AWARENESS PROGRAM OF DISTRICT'S SEWER FACILITIES Director Worthington noted the District hasn't distributed a Costa Mesa Sanitary District newsletter recently and suggested the District utilize Rauch Communication Consultants to put one together. Mr. Hamers directed the Board's attention to a handout entitled "Public Awareness Program," containing a list separated into sewer and trash awareness programs. Mr. Hamers pointed out the District currently regularly participates in City of Costa Mesa Quarterly Publication Articles, Costa Mesa City Council Newsletter Updates, Press Releases, Special Program Announcements and Flyers, and Small Promotional Items w /CMSD Name and Logo. Mr. Hamers suggested the District could save money by using Staff to produce the next newsletter, beginning as soon as the videotape process was completed. The Board determined Staff would produce the next newsletter. After completion of the next newsletter, determination will be made on how many newsletters per year should be produced or whether another form of public outreach would be better utilized to inform residents. 0 .��•NT,., Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting a March 8, 2001 . Page 5 Director Worthington requested Ms. Revak mail each Director a copy of the last newsletter along with a blank form to add any additional topics Directors would like to see in the next newsletter. Mr. Puckett reported there is approximately just under $6,000 available in the public outreach budget. Ms. Revak presented examples of newspaper article sizes and their prices for a color ad in the Daily Pilot ($807) and Costa Mesa Breeze ($895) newspapers. Circulation for the Costa Mesa Breeze is 24,000 and 42,000 for the Daily Pilot. Ms. Revak will check with the City of Costa Mesa to determine if an article regarding the District's sewer system can be included in the quarterly City publication. President Schafer suggested the water district might be willing to participate. STANDARDIZED CONTAINER PROGRAM Ms. Feeney requested the Board schedule the next Study Session to discuss the standardized container program during evening hours to allow more public to attend. The Board scheduled a Study Session on Thursday, March 22, 2001, at 6:00 p.m. to discuss the findings of the container analysis. A reminder will be sent to Board members. Mr. Harriers discussed setting up a standing Study Session meeting, on an as- needed basis, to be held a week following the regular Board meeting to discuss any required topics. CITY OF COSTA MESA RECYCLING PROGRAMS CURBSIDE TRASH COLLECTION Mr. Harriers reported the District is in the process of implementing a program to provide on- the - property service to parcels with five or more units. The City Ordinance requires service on the property. Mr. Harriers reported property owners were signing hold harmless agreements. The program will affect approximately 43 complexes with 227 units. Director Worthington commented he found the article distributed by Mr. Harriers on automated trash collection very informative, particularly the effect on productivity. 0 Mr. Harriers recommended Directors review the entire document. �� gy �r Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 6 ANTI- SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT REPORTS POLICE REPORT Mr. Hamers presented a memorandum providing the statistics for the month of February 2001. The number of calls for service for scavenging is as follows: Lncatien Calf for Service Cite /Arrest Area 1 0 0 Area II 2 0 Area III 3 0 Area IV 0 0 TOTAL 5 0 DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT Mr. Hamers presented the ordinance enforcement summary report for the four -week period beginning January 22, 2000, and ending February 18, 2001. Mr. Shef participated in the Costa Mesa Sanitary District videotape section on monitoring the District for large items, hazardous materials, etc. Mr. Shef distributed 37 courtesy flyers to encourage compliance. Director Worthington inquired as to whether Mr. Shef felt the courtesy flyers were having an effect on residents. Mr. Shef stated the bulk of the flyers are distributed to multi - family dwellings, in part due to the ever - changing population in the multi - family area. Mr. Shef related the flyers were very effective when left at a single - family dwelling. CMSD STRATEGIC PLAN PLANNING WORKSHOP NOTES FROM RAUCH COMMUNICATION CONSULTANTS Mr. Hamers presented a report from Rauch Communication Consultants, LLC, containing the workshop notes. The action items as rewritten by Staff will accompany the Board packet each month to assist the Board in monitoring the status of each recommended item. Secretary Perry motioned to accept the Rauch Communication Consultant report. Director Worthington seconded. Motion carried unanimously. Director Worthington expressed the desire to have a written summary to accompany the workshop notes. Staff will follow up. C7 ��y•N�.•, Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 7 REVIEW OF FIRST YEAR ACTION ITEMS OFFICE SPACE AND LOCATION Mr. Hamers reported the committee met on March 1, 2001. Mr. Hamers reported the meeting with Mr. Bill Morris to discuss office space and location has been rescheduled to March 19 at 1:30 p.m. in the 4th floor conference room. Mr. Fauth presented a proposed configuration to adapt the desired location to the District's needs. Mr. Fauth's plan would provide for four offices (Mr. Fauth, Ms. Revak, Ms. Schmeisser, and a new permit specialist) and a conference room in the 500 square foot area. A report will be presented to the Board at the April regular meeting. GENERAL DISCUSSION A standing study session was agreed upon for the Thursday following the regular meeting week. An exception was made for April, due to Easter vacation. The April study session date was ,set at April 26, 2001. Mr. Puckett opened discussion on the possibility of moving the regular Costa Mesa Sanitary District meeting to the third Thursday of the month due to the time crunch for preparing the financial reports in time to be sent with the regular meeting packet. Discussion was held. The Board agreed to hold the regular meeting on the third Thursday of the month and the standing study session on the fourth Thursday of the month, on a trial basis, starting in May 2001. COSTA MESA DISPOSAL FIELD UPDATE OF OCCUPANCY REPORT Mr. Fauth reported Molly Chen, UCI intern, has completed route 10, 11, 12, 13, and 14 of the Field Update of Occupancy Study. The study is on target and there are 5 additional routes to be completed. Mr. Fauth reported Ms. Chen will be able to work directly for the District during her school break time to provide continuity for the study. a g� s a �ro2At = °` Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 8 ORANGE COUNTY INTEGRATED WASTE MANAGEMENT DEPARTMENT CONDITIONALLY EXEMPT SMALL QUANTITY GENERATOR (CESQG) PROGRAM 0 Mr. Hamers reported receiving a letter from Ms. Sue Gordon, Manager, Hazardous Waste Program, Integrated Waste Management Department, County of Orange. Ms. Gordon's letter announced the development of a Conditionally Exempt Small Quantity Generator (CESQG) Program to allow the County to accept hazardous waste from qualified small businesses, schools, churches, and nonprofit organizations for a fee. LIAISON COMMITTEE MEETING W /CITY AND MESA CONSOLIDATED WATER DISTRICT - MARCH 7, 2001 Mr. Hamers reported President Schafer, Vice President Woodside, and Mr. Hamers met with Mesa Consolidated Water District on March 7. Mr. Hamers reported the meeting was very informative and distributed a copy of the agenda. President Schafer reported there will be a press release announcing the first summit meeting. President Schafer suggested each Director take a turn at attending the quarterly meetings. President Schafer reported the grease ordinance was discussed and the City was very receptive. 0 Vice President Woodside reported the response to the standardized trash container program was positive. The next Liaison Committee meeting will be June 6, 2001. DISTRICT SPOKESPERSON Mr. Hamers opened discussion on the Board's designation of a spokesperson to handle statements to the media regarding various District programs to promote continuity and accuracy in the dissemination of information. Vice President Woodside suggested designating Mr. Hamers as the spokesperson for the District to handle all media inquiries. The item will appear on the April regular agenda for action. • Costa Mesa Sanitary District s Minutes of Board of Directors Regular Meeting r March 8, 2001 �'��ro..�•aT Page 9 ENGINEER'S REPORTS PROJECT 155 - SEWER MASTER PLAN UPDATE PROPOSAL TO COMPLETE PROJECT Mr. Hamers introduced Project 1112100 -155 - as included in the approved 1997- 1998 Capital Improvement Program (CIP). Mr. Hamers reported the project would be completed by now, but focus had to be shifted to design of the $2 million Bristol Street Pumping Station facility. The Master Plan Update is to be completed by the end of this calendar year. The Boyle Engineering independent review states the project is warranted and the budget reasonable. It was recommended 'the Board authorize the update and the Manager /District Engineer to complete the design and inspection at the following hourly rates not to exceed $18,000: Engineer $63.00 /hr. Secretary Perry motioned to approve Project 155, not to exceed $18,000. Director Ferryman seconded. Motion carried unanimously. Director Ferryman initiated discussion on the District's arrangement to contract for sewer televising inquiring whether the District should consider the purchase of their own equipment. Mr. Hamers stated technology is changing rapidly and there is a major upgrade expected in the televising equipment on the horizon. Therefore, it would not be prudent for the District to acquire equipment at the present time. Additionally, current manpower is spent cleaning and maintaining the sewers and it would be difficult to find the manpower to perform the televising. EMERGENCY WORK VICTORIA STREET PUMP STATION Mr. Hamers reported repairs are forthcoming. PRESIDENT PUMPING STATION Mr. Hamers reported repairs are complete. Secretary Perry motioned to ratify the manager's actions on the Victoria Street Pump station and President Pump Station. Director Woodside seconded. Motion carried unanimously. �'NANltjtr s � �t Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 10 LOW FLOW DIVERSION PROGRAM Mr. Hamers reported Staff met with the Orange Count Flood Control District. • p 9 Y Staff will prepare an analysis and return to the Board at the April regular meeting. The Board accepted the report as presented. PREVENTING SEWER SPILLS Mr. Hamers reported Vice President Woodside suggested the Board become active in finding ways to prevent sewer spills. Mr. Hamers, Vice President Woodside, President Schafer will meet with the field crews to discuss options available to the District. Vice President Woodside reported he would like to attend the meetings of the local environmental groups working in the Newport Back Bay area to learn what the environmental organizations are doing and provide information to them about how the District is working to prevent sewer spills. Vice President Woodside will attend the meetings and bring a report to the Board. TREASURER'S REPORTS STANDARDIZED CONTAINER PROGRAM THE ROLE OF RESERVES IN SOLID WASTE BUDGET Mr. Puckett presented a report on the role of "reserves" in the Solid Waste Budget. Mr. Puckett explained that an operating reserve, generally 25% of the operating expenditures, be maintained to provide a needed "cushion" to the District's budget to allow for a managed transition should any unforeseen circumstance need to be addressed. Mr. Puckett reported $1,001,068 would be an appropriate amount to retain as a cushion, leaving $1,522,731 available to fund the purchase of standardized trash containers. FINANCIAL PICTURE OF EXISTING SOLID WASTE PROGRAM Mr. Puckett reported the District requested information related to the financial picture of the existing Solid Waste Fund as of February 28th and some projection of revenue and expenses through the fiscal year end. Mr. Puckett provided an overview of his report and distributed an additional report from June 15, 2000; entitled "Proposed Trash Container Implementation Timeline" for further background. 0 Costa Mesa Sanitary District s Minutes of Board of Directors Regular Meeting r March 8, 2001... Iit Page 1 i Mr. Puckett predicted a deficit of approximately $60,000 to $100,000 as of the fiscal year end. Mr. Puckett stated the deficit is expected to result primarily from the timing differences naturally occurring within the tax collection process and the decreased investment earnings attributable to actual cash balances within the Solid Waste Fund. Mr. Puckett reported the unfavorable variances may ultimately be partially or fully offset by favorable variances within the budgeted appropriations. PURCHASING OPTIONS AND EFFECT ON BUDGET Mr. Puckett reported the District requested information related to options available for the purchase of standardized trash containers and comments on the effect that these options would have on the District's Solid Waste budget. Mr. Puckett gave a brief report and explained the benefits to the District with financing the containers. Mr. Puckett recommended the District authorize the Treasurer to negotiate financing terms for the purchase of the containers with such terms subject to final approval by the Board. The Board requested Mr. Puckett present possible solutions to the deficit. Mr. Puckett will present a report for the Board's March 22, 2001, study session. TAX TREATMENT OF DIRECTORS COMPENSATION Mr. Puckett presented a report supplying further information on how Director's compensation will be treated in the future pursuant to applicable Internal Revenue Code provisions and whether an alternative retirement system to Social Security was available to Board members. Mr. Puckett presented both the Social Security and ARS options and fees required to set up the ARS system. The Board determined the required ARS system set up and maintenance fees prohibited participation in an ARS system. The Board directed the Treasurer to implement the Social Security option. SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY ( SDRMA) FINANCIAL STATEMENTS Mr. Puckett reviewed the SDRMA audited financial statements highlighting the excess monies on hand. Based on his review of the report, Mr. Puckett determined the SDRMA could reduce rates. President Schafer reported she spoke to a representative who related the SDRMA will not be offering a rate reduction, but are building emergency reserves. s a Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 12 ATTORNEY'S REPORTS RESOLUTION NO. 2001 -643 - ORDERING THAT PUBLICATION OF ORDINANCE NO. 36 • AMENDING INSURANCE REQUIREMENTS FOR SEWER PERMITS HAS OCCURRED. Mr. Burns presented Resolution No. 2001 -643, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 36 AMENDING THE DISTRICT'S OPERATIONS CODE ESTABLISHING INSURANCE REQUIREMENTS FOR SEWER PERMITS. Director Ferryman motioned to adopt Resolution No. 2001 -643. Secretary Perry seconded. Motion carried unanimously. LOCAL MEETINGS INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) QUARTERLY MEETING AND ELECTION - MARCH 30, 2001 NOMINATION TO LAFCO SEAT President Schafer chaired the Executive Board meeting of ISDOC. President Schafer reported the Mesa Consolidated Water District sent a letter to ISDOC nominating President Schafer to a permanent LAFCO seat and recommended other water districts do the same. President Schafer reported the subcommittee met immediately after the Executive Board meeting and discussed the budget for AB 2838. The subcommittee will recommend fees be based on operating revenue. President Schafer distributed notes for the Board's review. Director Ferryman nominated Arlene Schafer for the position of Regular Special District Member of the Local Agency Formation Commission. Secretary Perry seconded. Motion carried unanimously. Director Perry motioned to authorize Director Woodside to sign the nomination form due to President Schafer being a nominee. Vice President Woodside seconded. Motion carried unanimously. In addition to President Schafer, who will be attending as a nominee, Directors Woodside, Ferryman and Worthington will attend the March 29, 2001, ISDOC meeting. Director Perry motioned to appoint Director Woodside as the District's representative for the March 29, 2001, ISDOC meeting and Director Ferryman as first alternate, and Director Worthington as second alternate. Director Worthington seconded. Motion carried unanimously. • • Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 13 LOCAL AGENCY FORMATION COMMITTEE (LAFCO) AB -2838 - LAFCO FUNDING BY CITIES, COUNTIES AND SPECIAL DISTRICTS President Schafer distributed a draft funding schedule as prepared by ISDOC. COSTA MESA CHAMBER OF COMMERCE MEMBERSHIP INVESTMENT FOR APRIL 1, 2001, TO APRIL 1, 2002 IN THE AMOUNT OF $360.00 President Schafer attended the Costa Mesa Chamber of Commerce meeting where she met the Chamber's newest members. Secretary Perry motioned to approve payment of $360.00 for Chamber of Commerce dues. Vice President Woodside seconded. Motion carried unanimously. LEGISLATION COMMITTEE President Schafer reported she attended the Legislation Committee meeting and that everything went very well. ORANGE COUNTY SANITATION DISTRICT REGULAR MEETING - FEBRUARY 28, 2001 Director Ferryman reported he attended the February 28, 2001, meeting and advised that March 28, 2001, will be the go- or -no -go vote on the groundwater replenishment system. Director Ferryman reported the SARI line will cost $70 million, not the $40 million originally projected. MONTHLY BOARD LETTER UPDATE The monthly Orange County Sanitation District Board letter update was provided in the Board packet for review. WATER ADVISORY COMMITTEE OF ORANGE COUNTY (WACO) President Schafer attended the WACO meeting and distributed her notes to the Board members for their perusal. President Schafer reported there were two very interesting and informative presentations. �3 FC ,l �fi'�rotA�� Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting March 8, 2001 Page 14 ORANGE COUNTY COUNCIL OF GOVERNMENTS (OCCOG) President Schafer attended the Orange County Council of Governments meeting and reported there was a good turnout and members took their new positions. President Schafer distributed the agenda for the Board's perusal. President Schafer reported the April meeting was canceled and members were encouraged to attend the SCAG meeting. CSDA BOARD OF DIRECTORS MEETING - FEBRUARY 16, 2001 President Schafer reported she has been attending the Orange County Water District briefings every Friday and reported they discussed pipelines and groundwater. WORKSHOP ON WHEELS "EFFECTIVE SPECIAL DISTRICT MANAGEMENT He GOVERNANCE" - FEBRUARY 27, 2001 - LAGUNA NIGUEL, CA President Schafer attended the meeting and distributed her notes for the Board's perusal. GOVERNMENT AFFAIRS DAY - APRIL 23, 2001 - SACRAMENTO President Schafer invited State Assemblyman John Campbell to be her guest at the CSDA Government Affairs Day Luncheon on April 23, 2001. Director Worthington expressed an interest in attending Government Affairs Day, along with President Schafer. SPECIAL DISTRICT INSTITUTE GOVERNANCE SEMINAR - FEBRUARY 22 -23, 2001, MONTEREY, CALIFORNIA Director Worthington attended the seminar and distributed a report to Board members. Director Worthington highlighted statements made by seminar speakers Robert Rauch, Martin Rauch, and Greg Lowry. Director Worthington recommended Board members attend the Special District Institute meetings. The next seminar will be held in South Lake Tahoe. • +.six[ ., Costa Mesa Sanitary District �� gz Minutes of Board of Directors Regular Meeting March 8, 2001 It Page 15 OLD BUSINESS OFFICE STAFFING Mr. Fauth reported he is having difficulty in getting qualified resumes. Director Worthington reported he is aware of a possible candidate for the position. Mr. Fauth recommended Director Worthington have the candidate go to Apple One to take their qualification testing or contact Mr. Fauth for more information. NEW BUSINESS ORANGE COAST RIVER PARK (OCRP) PROPOSAL The Board tabled the item due to lack of clarity of the document. ORAL COMMUNICATIONS President Schafer requested Board members save the tabs from beverage cans, which she will give to the Lions Club to benefit abused women and children. 40 Mr. Fauth requested the Board members allow him to retake their pictures at the April meeting. The pictures will be used in various media articles plus the new video. Mr. Hamers requested Mr. Fauth discuss the use of Director's pictures with Mr. Burns to make sure the District is in compliance with the State law. Director Worthington suggested the District produce a calendar containing District events. ADJOURNMENT At 8:52 p.m. President Schafer adjourned the meeting. SECRETARY C� PRESIDENT i t' a COSTA MESA SANITARY DISTRICT Board of Directors Study Session held March 22, 2001 The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed Study Session on March 22, 2001 at 6:00 p.m., in Conference Room 5A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Arlene Schafer, Arthur Perry, Greg Woodside, James Ferryman, Dan Worthington Staff Present: Robin Hamers, Manager /Engineer; Tom Fauth, Assistant Manager; Joan Revak, Clerk of the District; Marc Puckett, Treasurer; Alan Burns, Counsel for the District Others Present: Ernie Feeney 1154 Dorset Lane, Costa Mesa 92626 Ed King 2777 Lorenzo Avenue, Costa Mesa Bob Osgood 962 Magellan Street, Costa Mesa Ben Castleberry, Toter Inc. 6 Alegre, Aliso Viejo, CA 92656 Raul Rangel, Roto Industries 1251 N. Jefferson Street, Anaheim, CA 92807 Kerry Holmes, Roto Industries 1251 N. Jefferson Street, Anaheim, CA 92807 Mark Rangel, Roto Industries 1251 N. Jefferson Street, Anaheim, CA 92807 Raul Rangel, Costa Mesa Disposal 2051 Placentia, Costa Mesa, CA 92627 Jennifer Kho, Daily Pilot Topics discussed at the Study Session were the proposed Standardized Container Program and Financial and Purchasing Options. Costa Mesa Sanitary District 2 Board of Directors Study Session March 22, 2001 District Manager, Mr. Rob Hamers, presented a review of information received at the previous Study Session on February 15, 2001, pertaining to the three container manufacturers under consideration. Mr. Hamers explained that of the three, Roto, Toter and Rehrig, Roto Industries provided both linear and cross link material and were the lowest bidder of each. Mr. Hamers further related that Rehrig was the highest of the three for linear containers and the company would charge a large monthly fee to maintain the program, approximately $20,000 /month. Toter offered incentives for rollout and enhancements of their products. The cans specified in Toter's bid have less resin than the linear specifications and less than the Roto product and at a higher cost. Toter also specified changes for change -in, change - out services after the initial rollouts. Mr. Hamers further explained that the Roto proposal has both cross link and linear material. A chemical analysis of the two types of material performed by Chevron Phillips revealed cross link as superior and the containers should last longer. Additional incentives from Roto include agreement for three years to provide a storage area for containers, a truck or vehicle to perform change in- change -out of containers, and manpower associated with running the program at a potential savings to the District of $300,000. Mr. Kerry Holmes of Roto Industries explained the advantages of cross link versus a linear product and related that Roto is the largest manufacturer of cross link • containers. In response to residents concern of having extra trash not fitting into the standardized containers, Mr. Raul Rangel emphasized that all trash in bags left next to the containers will be picked up on trash day and nothing in the level of service provided by Costa Mesa Disposal would change with the implementation of standardized containers. Toter Representative, Mr. Castleberry addressed the Board and related the company extended their warranty to fifteen years and Toter serves more cities in California than any other container manufacturer. Mr. Puckett addressed the Board on the financial aspect of purchasing the containers, explaining it appears feasible to purchase the containers without the purchase impacting the trash rates for at least two years. The Board directed Staff to bring back a complete proposal from the preferred manufacturer, Roto Industries, with their cross link containers. The proposal will include a Memorandum of Understanding (MOU) to be accepted by the District and Roto Industries to outline the basic parameters of the program prior to preparation of an amendment to the agreement with Costa Mesa Disposal and finalization of a purchase agreement with Roto Industries. • r , Costa Mesa Sanitary District 3 Board of Directors Study Session March 22, 2001 President Schafer advised the selection of a vendor would be made at a Special Meeting scheduled for Thursday, April 26, 2001, at 12:00 p.m. 0 • CosTA 9WESA SAXITARTOISTRICT Public Comments.- Any member of the, public may address the Board. Speakers on agenda items should identify themselves to the Clerk before the meeting so that their input can be provided at the time the. item is considered. Speakers on non - agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non - agenda items except under, special circumstances." Speakers' must limit their remarks to five minutes. The Presiding Officer reserves the right to declare any speaker out of order. In compliance with ADA, contact Joan Revak, (714) 7545087, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35:104 ADA Title II):; NOTICE OF SPECIAL MEETING COSTA MESA SANITARY DISTRICT BARD OF DIRECTORS APRIL 269 2001 The Board of Directors of the Costa Mesa. Sanitary District will meet on Thursday, April 26, 2001 at 12:00 p. >rgn. in Conference Room 1A of the Costa Mesa, Civic Center, 77 Fair Drive, Costa Mesa, California. RECOMMENDED ACTION t. Standardized Container Program A. Purchase Agreement with Roto Industries B. Addendum No. 2 to Agreement with Costa Mesa Disposal C. Addendum to Warranty D. Financing Plan E. Trash Collection Regulations (green card) F. Notification Flyer to Residents 11. Public Comments Dated: Apri120, 2001 JvRevckv Clerk of the District Approve Approve Approve Approve Approve Approve PURCHASE AGREEMENT THIS AGREEMENT is made and entered into this I day of 2001, by and between the COSTA MESA SANITARY DISTRICT, a District formed under the Sanitary District Act of 1923, hereinafter referred to as "DISTRICT ", and ROTO INDUSTRIES, INC., a California corporation, hereinafter referred to as "ROTO ". Recitals WHEREAS, DISTRICT has the authority under Health and Safety Code Section 6521 to make and enforce all necessary and proper regulations for the removal of garbage; and WHEREAS, DISTRICT's Board of Directors has determined that a standardized container program will protect the public health, improve the aesthetics of the community served by the DISTRICT, and will prevent or reduce worker injuries and increase efficiency by allowing for a semi - automated collection system; and WHEREAS, DISTRICT desires to implement a standardized container program and after having fully researched and analyzed other similar programs advertised for bids on August 10, 2000 under Bid Item No. 527, attached hereto as Exhibit "A "; and WHEREAS, DISTRICT's Board of Directors, after testing, analysis and consideration of the various products available, determined to procure a rotationally molded high density cross link polyethylene container as best meeting the DISTRICT's needs; and WHEREAS, DISTRICT's Board of Directors considered a number of factors in selecting ROTO as its provider of standardized containers, including but not limited to the product purchased, warranty, implementation program and related features which were material considerations to the Board of Directors in making its selection; and WHEREAS, DISTRICT opened bids on September 5, 2000 and ROTO was the low bidder on the DISTRICT - preferred container, a rotationally molded high density cross link polyethylene container, and that ROTO offered additional enhancements, including an extended warranty, a one -year rollout program that would save delivery costs, and a three -year container management program of personnel, vehicles and storage facility; and WHEREAS, DISTRICT recognizes that Raul Rangel has a substantial ownership in Roto Industries, Inc., which is a family -owned corporation, and is sole shareholder in Costa Mesa Disposal, Inc. (hereinafter referred to as "CMD "), the DISTRICT's current trash hauler, which will provide smooth interaction between the product and the handler and continuity of service and a decreased workload for CMD and DISTRICT staff; and WHEREAS, having related companies provide the containers and provide collection services implements a self - policing arrangement with respect to container care and truck adjustment; NOW, THEREFORE, for and in consideration of the covenants contained herein, performed and to be performed, the parties hereto agree as follows: 1. The above Recitals are agreed upon by both parties to be part of and material considerations in entering into this Agreement. 2. ROTO agrees to provide containers in accordance with its base bid (not Option 1, 2, or 3) for Item No. 527.and with supplemental information provided for 35 gallon containers and with other terms, conditions and specifications shown therein, a copy of which is attached hereto as Exhibit "B" and "C ". 3. ROTO agrees to provide the enhancements of a one -year rollout program at no cost to DISTRICT and a three -year container management program at no cost to District including manpower, vehicles and storage area to sufficiently manage the program and provide complete satisfactory customer service the details of which are set forth in Exhibit "D ". 4. ROTO agrees to use its best efforts to work with DISTRICT and its staff to provide a customer - friendly, successful program. 5. ROTO and DISTRICT acknowledge the proposed program is for a semi - automated collection process (and not manual nor fully automated), and the parties agree that the goal is to provide sufficient containers for each resident so that excess trash (trash not fitting inside a closed container) will be minimized. 6. ROTO agrees the purchase prices in Exhibit "B" and "C" shall be honored for the entire one -year rollout program and that subsequent price increases shall be subject to agreement and will be dependent upon the price of resin, the number of cans purchased and other relevant factors. . 7. The parties agree that DISTRICT shall be notified and shall consent in writing to any changes in the container manufacturing process, such consent will not be unreasonably withheld, and no changes shall be made that might decrease the life expectancy of the containers. 2 8. In the event of container failure or unserviceability, DISTRICT and ROTO shall mutually observe and make a determination as to the cause of any container becoming damaged, unserviceable or defaced. Containers covered by the ROTO warranty shall be replaced or repaired within 24 hours at no cost to the DISTRICT and containers requiring replacement due to resident neglect or damage shall be replaced by ROTO within 24 hours at DISTRICT's cost. ROTO's warranty shall encompass all of the features set forth in Exhibit "E" except that exclusions from warranty shall not include damage caused by CMD. 9. ROTO agrees that no purchase of containers shall be made without District Manager's and Assistant Manager's signatures on a purchase authorization. Manufacturing, assembly and delivery to CMD or other DISTRICT designated location shall be included in the.price per container. 10. ROTO agrees to manufacture and provide containers at a rate allowing CMD to supply all residences within one trash route per month for each of the ten routes. A copy of the routes are attached hereto as Exhibit "F". Such schedule may be modified by mutual consent. ROTO will supply the containers to each residence. 11. The quantity and size of containers purchased by DISTRICT shall be at the discretion of DISTRICT and shall be determined in part by the survey results of the flyer delivered to the residences of each route five weeks prior to rollout of that route. 12. ROTO shall assume full responsibility for but cooperate with DISTRICT and CMD in change -in and change -out services and shall keep an adequate inventory of containers on hand to allow changing containers on the next trash collection day for each resident requesting changes. 13. ROTO agrees to provide nameplate, hot stamping and other container markings in accordance with Bid Item No. 527 and ROTO's proposal. 14. ROTO fully warrants the containers for ten years in accordance with warranty shown in Exhibit "E" and the three -year extended pro -rated warranty shown on letter by ROTO dated August 31, 2000. 15. ROTO shall reasonably assist DISTRICT in a public relations effort, including hosting community meetings, product demonstrations, providing brochures and responding to requests at no additional program cost to the DISTRJCT. 16. The following documents are attached hereto and constitute part of this Agreement: C Exhibit "A" - Costa Mesa Sanitary District Bid Item No. 527 Exhibit "B" - ROTO Industries, Inc. Proposal Exhibit "C" - Supplemental 35 gallon price schedule dated March 29, 2001 Exhibit "D" - Three Year Container Management Program Exhibit "E" - Warranty Exhibit "F" - Routes 17. ROTO agrees to accept the return of any of its containers provided herein when their service life is over, at no charge to DISTRICT or any resident desiring to dispose of said cans. 18. ROTO agrees to indemnify, defend and hold DISTRICT harmless from any and all liability arising out of the use.of such cans including, but not limited to products liability claims and actions. Additionally, ROTO agrees to indemnify, defend and hold DISTRICT harmless from any and all claims or liability arising out of the award of this contract or the bidding process or the DISTRICT's actions in implementing a standardized container program. 19. Time is of the essence in this contract. 20. No assignment of this contract may be made without the express written consent of DISTRICT. It is a material consideration to DISTRICT that ROTO is owned and managed by a corporation that is related to DISTRICT's trash collector, Costa Mesa Disposal, Inc. 21. Either party may terminate this contract by giving 30 (thirty) days written notice, provided that if default is an issue in the performance of the contract, at least ten (10) days notice shall be given along with a chance to cure the default. If DISTRICT terminates the contract, it may be required to pay for any containers that had been ordered if ROTO has been prejudiced. Notwithstanding said termination, the indemnification, warranty and other obligations created hereby shall continue with respect to any container actually purchased. 22. ROTO represents that it has not given, promised or offered any gratuities to any of DISTRICT's officers, employees or agents with a view toward securing this contract or favorable treatment in the bidding or selection process, including the preparation of the bid specifications. 23. This agreement represents the entire agreement, including the attachments hereto, and shall. not be considered modified, altered, changed or amended in any respect unless in writing and signed by the parties hereto. 4 24. Notices may be provided as follows by first class mail or by fax: Costa Mesa Sanitary District 77 Fair Drive Fourth Floor Costa Mesa, California 92626 Roto Industries, Inc. 1251 North Jefferson Street Anaheim, California 92807 25. ROTO shall post security in a form and sum as may be approved by District Manager and District Counsel to guarantee the continuing performance of this agreement. In witness whereof, the parties have entered into this Agreement on the date first written above. COSTA MESA SANITARY DISTRICT President Secretary ROTO INDUSTRIES, INC. Title: 5 ADDENDUM NO. 2 This Addendum to Agreement is made and entered into this day of 2001, by and between the COSTA MESA SANITARY DISTRICT (hereinafter referred to as "District ") and COSTA MESA DISPOSAL, INC. (hereinafter referred to as "CMD" RECITALS WHEREAS, the District and CMD have entered into an agreement dated June 9, 1994, which provides for the collection and disposal of trash within District and also entered in Addendum No. 1 to said agreement dated June 18, 1997, and WHEREAS, the District intends to implement a standardized container program to provide semi - automated collection for all residences served by District; and WHEREAS, District has purchased said standardized containers from Roto Industries, Inc., (hereinafter "ROTO ") which is a corporation owned by the Rangel Family and related to Costa Mesa Disposal in that Raul Rangel is the sole shareholder of said corporation; and WHEREAS, it was a material consideration to District that Roto's product be compatible with CMD's equipment and that CMD, as a related company, would use its best efforts to ensure a smooth and seamless transition to the standardized containers; and WHEREAS, CMD will realize increased worker efficiency and safety and corresponding lower insurance rates by changing to a semi - automated system in which cans do not have to be lifted; and WHEREAS, in consideration thereof CMD has agreed to act as ROTO's agent in doing the things provided for herein; and WHEREAS, the parties desire to specify their respective responsibilities with regard to implementation and future service for a new standardized container program; NOW, THEREFORE, the parties hereto agree as follows: 1. District is purchasing from ROTO standardized containers for each residence and will provide each residence a number and size of containers _ in order that all trash will be stored inside the closed containers and outside trash placed in bags will only rarely occur. 2. CMD warrants its vehicles and personnel are able to properly perform trash collection service utilizing a semi - automated collection system. 3. CMD agrees to keep its vehicles in proper working order and the lifting mechanism in proper adjustment to prevent premature wear of the containers. 4. CMD shall provide District a schedule of CMD collection vehicles including date of purchase, vehicle identification number, and estimated remaining life expectancy. CMD shall not purchase any new collection vehicles without first notifying District in writing that proposed trucks are compatible for the semi- automated system. CMD shall also ensure that such vehicles burns fuel and are otherwise compliant with air quality regulations that are currently in effect or scheduled to go into effect. The trucks used in the program shall allow workers to place trash not placed in the containers directly into the truck provided such trash is properly contained. 5. CMD understands the program is a semi - automated collection system and shall not purchase any fully automated collection vehicles without written authorization from District. 6. District recognizes that CMD is owned by Raul Rangel and that Roto is owned by the Rangel Family and Roto has agreed to provide a free one year roll out program and a free three year container management program consisting of providing manpower, vehicles, and storage area, to properly handle change -in, change -outs, assembly, delivery, log sheets, serial number records, etc. CMD agrees to fully cooperate with Roto as Roto's agent to successfully provide these services to District. 7. The CMD rollout program shall consist of providing new containers to one CMD route per month with follow up change -in, change -out services. The container size and quantity for each residence shall be determined in part by the District - prepared flyer to be mailed to each address on the route approximately five weeks prior to delivery. CMD to provide District the addresses of every residence on each route. Both parties anticipate a 10- month rollout program to cover the 10 CMD routes. 8. CMD agrees that customer satisfaction is of primary importance and CMD drivers will collect trash left outside of the containers. Workers shall be courteous, shall replace the empty containers on the curb in an orderly fashion and in an upright manner with the lids closed. 2 9. CMD shall administer the container warranty for District as Roto's agent and will handle repair or replacement with Roto at no cost to the District. 10. In the event of container failure or unserviceability, DISTRICT and ROTO, (or CMD if so designated in writing by ROTO), shall mutually observe and make a determination as to the cause of any container becoming damaged, unserviceable or defaced. Containers failing to perform in accordance with ROTO's warranty shall be replaced or repaired within 24 hours at no cost to DISTRICT, and containers requiring replacement due to resident neglect, damage, or other causes not covered by Roto's warranty, shall be replaced within 24 hours at DISTRICT's cost. 11. CMD understands that no purchase of containers shall be made without District Manager's and Assistant Manager's signatures on a purchase authorization sent to Roto. Manufacturing, assembly and delivery to CMD or other DISTRICT designated location shall be included in the price per container. 12. CMD shall maintain serial number logs showing the number and size of containers at each residence with the serial numbers and date of delivery for all containers. Said information shall be furnished to District upon request. 13. CMD, as Roto's agent, shall provide change -in, change -out services as requested by customer or District in a courteous manner. District shall have final authority over the size and number of containers provided to each residence. 14. CMD shall collect old containers and deliver the containers to District's recycler, CR Transfer, at no additional charge to District. 15. CMD shall disclose its yearly Workers Compensation rates to District in order to identify insurance premium reductions associated with the standardized container program. 16. Compensation paid by District to CMD shall not be affected by the implementation of the standardized container program. District and CMD recognize the importance of worker safety and the benefits to CMD trash collection workers from the standardized container program. 17. CMD shall use due care to prevent spills or leaks during the collection process. CMD shall promptly clean up all spilled material and shall carry a broom and shovel on each truck at all times. 4c1 18. CMD shall assist District in identifying scavengers or residents discarding hazardous or illegal trash. 19. CMD recognizes District's investment in the standardized container program and CMD shall at all times protect District's containers and maintain its collection vehicles, office staffing levels, and operations in a manner to maximize the life expectancy of the containers and consistent with prudent solid waste management practices. 20. Except as modified herein, the terms and conditions of this Agreement shall remain as provided in the 1994 Agreement as the same has been amended. In Witness whereof, the parties have entered into this Agreement on the date first written above. COSTA MESA SANITARY DISTRICT President Secretary COSTA MESA DISPOSAL, INC. M Title: 9 ADDENDUM TO WARRANTY EXTENDED TO THE COSTA MESA SANITARY DISTRICT This Addendum to Warranty is in addition to the standard ten -year warranty, as amended by the additional three -year pro -rata protection offered. This Warranty is extended to the Costa Mesa Sanitary District in light of the special relationship that Costa Mesa Disposal has with Roto Industries, Inc. in that Raul Rangel owns a substantial interest in each and Costa Mesa Disposal is the exclusive trash collector for Costa Mesa Sanitary District and its trucks and its equipment will be handling the containers provided by Roto Industries, Inc. In light of the above facts, Roto Industries, Inc. does hereby, modify its warranty in favor of the Costa Mesa Sanitary District to provide that notwithstanding any "EXCLUSIONS" in said warranty, when the cause of the exclusion is any activity of Costa Mesa Disposal, such activity shall not void or detract from the warranty and the container shall be entitled to whatever protection is otherwise available without said exclusion. Included, but not limited to the activities that might cause such an exclusion, are damage from automated graspers or semi - automated lifters and maladjusted delivery arms or graspers, and any other activity related to loading said container into the truck or replacing the container on the ground. COSTA MESA SANITARY DISTRICT President Secretary ROTO INDUSTRIES, INC. 0 Title: August 31, 2000 Costa Mesa Sanitary District Ref: Bid No. 99.07 -05 Ladies /Gentlemen: Thank you for the opportunity to submit our bid on your automated refuse container requirements. We invite you to contact our references. Quality in product and service equal satisfied customers. Our factory and headquarters are located in the County of Orange, allowing us to provide the Costa Mesa Sanitary District with incomparable service. Roto Industries, Inc. would also like to offer the following enhancements: 1. Roto Industries, Inc. will deliver all carts to every household in the City of Costa Mesa at no charge. 2. Roto Industries, Inc. will offer an extended pro -rated warranty to the City of Costa Mesa above and beyond our standard 10 -year program for cross -link containers only. * 11`x` Year 60% ® 12`h Year 40% ® 13'* Year 20% Thank you for your consideration. We look forward to the opportunity of earning your business. Very truly yours, 'j, 1 Mark Rangel President ROTO Industries, Inc. / 1251 N. Jefferson Street - Anaheim, CA 92807 - (714) 630 -0272 - FAX (714) 630 -6726 - www.rotoind.com n� Pr�nteu on Recycietl Pauer r. vandalism PM No MDUSTRIES. Mr- The District will replace any containers damaged through acts of third parties not under the manufacturer's control, such as theft, or ROTO INDUSTRIES, INC. MAKES NO OTHER' WARRANTY, EXPRESSED OR IMPLIED, INCLUDING WARRANTY OF MERCHANTABILITY OR R ANY PARTICULAR 9 t! t IPYM WRAWW INDU$TRIEB. INC. The following are descriptions of several situations where the warranty does not apply- a • - but o . limited to these situations. e Cuts or a from •..; Extraordinary impacts such as being hit by paints, e Burns, scorches, melting. Any damage from excessivz heat Chemicals. Being exposed to solvents, petrochemicals, or other chemical substance, d. • or metal parts. parts. Ti Failure to follow the instructions imprinted on cart or other Ell MPOI -102 ti CITY OF COSTA MESA _ DEPARTMENT OF FINANCE MARC R. PUCKETT INTEROFFICE MEMORANDUM DIRECTOR OF FINANCE TO: SANITARY DISTRICT BOARD OF DIRECTORS FROM: MARC R. PUCKETT, DISTRICT TREASURER COPY TO: ROB HAMERS, DISTRICT MANAGER DISTRICT STAFF DATE: APRIL 24, 2001 SUBJECT: FINANCING PLAN RECOMMENDED ACTION Approved "financing plan as submitted and direct the Treasurer to proceed with securing financing for the purchase of standardized trash containers in accordance with the Plan subject to final approval of an installment loan contract or other similar financing vehicle by the Board. BACKGROUND At the March 8th Board meeting, the Treasurer presented information to the Board outlining a projected current operating deficit in Solid Waste Fund for fiscal year 2001. The information highlighted financial activity occurring during the first eight months of fiscal year 2001. Some of this data is reprinted herein as additional background information. Fiscal year 2001 will be the first full year of segregated solid and liquid waste operations. Due to the separation of the solid and liquid waste activities in to two separate funds, the investment earnings allocation method changed. In prior years, investment earnings were allocated between the two activities within the General Fund for rate development purposes. 68% of investment earnings were allocated to trash activities and 32% were allocated to sewer activities. As of July 1, 2000, investment earnings are now allocated each month based upon the average cash balances in each fund. As a result, the Solid Waste Fund now receives approximately 26% of total investment earnings. Therefore, based upon the adopted budget, it is estimated that there will be a budget to actual shortfall of approximately $80,000 in investment earnings in the Solid Waste Fund. 1 Also, when the segregation of assets in . the General Fund occurred, the unrestricted unreserved undesignated portion of the General Fund fund balance was split equally between the two new Solid Waste and Liquid Waste Funds. As part of this segregation of assets, the proceeds from the settlement of the Orange County bankruptcy were also split equally. In addition, property tax collections continue to be split equally among the two funds in the current years' adopted budget. Whether or not the Board continues to split property tax collections equally is a discretionary decision reaffirmed annually through adoption of the operating budget for the ensuing year. Based upon the financial transactions year -to -date, the revenue collections and expenditures for the solid waste activities are in -line with projections through March 31 based upon an analysis of historical trend data. This revenue collection/ expenditure pattern has followed the spending patterns detailed in the cash flow model I developed and included in the Treasurer's Report on a monthly basis. According to spending patterns identified in the model, expenditures will exceed revenues during the months of July - October, and also in the months of February and June. Revenues will exceed expenditures during the months of November - January and during the months of April and May. It is important to note that the cash flow model used to determine the amount of investable assets is on an "all funds" basis. This means that assets derived from sewer operations and reserves are included in the cash flow model and if these assets were removed from consideration, the peaks (revenues over expenditures) would steepen and the valleys (expenditures over revenues) would become wider. As mentioned previously, FY01 will be the first full year of experience utilizing segregated funds for solid and liquid waste activities. Estimates provided to the Board previously are based upon historical trends and activity for this fiscal year to date. Based upon this data, it is anticipated that there conceivably may be a Solid Waste Fund operating deficit as of the fiscal year end. If an operating deficit materializes, it is expected to primarily result from the timing differences naturally occurring within the tax collection process and the decreased investment earnings attributable to actual cash balances within the Solid Waste Fund. These unfavorable variances may ultimately be partially or fully offset by favorable variances within the budgeted appropriations. At the April 12`h Board meeting, the Board requested that the Treasurer provide a financing plan for consideration and adoption at its April 26`h Special Board Meeting. Such plan should include recommendations regarding the financing of the standardized trash containers. ANALYSIS Previously, I had expressed concerns as to whether or not the solid waste activities were self - sustaining. In fact, based upon the historical analysis I had provided to you it appeared that the solid waste activities were not self - supporting and that future rate increases would be necessary to offset expected shortfalls. Further, if the Board proceeds with the purchase of standardized trash containers the resources spent on the purchase of the containers will deplete the reserves in the Solid Waste Fund and shorten the time period that the Board has to address the operating deficit. Also, if it is ultimately decided to purchase trash containers from existing reserves, future investment earnings would be reduced which may contribute to the projected deficit at the fiscal year end. An expenditure of $1.5 million of existing reserves would reduce investment earnings by approximately $85,000 over the course of the next year. 2 It would seem likely that implementation of the trash container program would be most efficient and beneficial to the District's customers if implemented in as short a period as practicable. A short implementation timeline would create operating efficiencies and help to reduce the related costs associated with implementing this program. The program implementation timeline and financing of the purchase of the containers should, however, proceed on separate tracks since these activities are not interdependent. Financing of the containers should be considered as the most viable option simply from a "cost of funds" standpoint. The District has the opportunity to leverage its reserves to address operating deficiencies and implement a major program simultaneously. Financing the purchase of the containers allows the District to take advantage of the arbitrage opportunity created by the Districts ability to issue debt at a lower interest rate than the rate of return earned on the Districts investable assets. In addition, the debt service requirements would only increase base -line spending by approximately $230,000 - $384,000 per year depending upon the financing option chosen. Existing reserves in the Solid Waste Fund amount to $2,584,000. An increase in spending of $484,000 for debt payments of $384,000 plus an operating deficit of approximately $100,000 each year would allow the Board at least a minimum of 5.3 years to address the projected operating deficit in the Solid Waste Fund before a fund deficit would occur. The longer the timeline is for the debt financing, the lower the debt service payments are, and the greater the chances are that the Solid Waste Fund will not incur any operating deficits in the foreseeable future. If normal inflationary adjustments are anticipated and included into the rate structure, it is probable that there will not be a deficit within the Solid Waste Fund for the foreseeable future. Therefore, it is recommended that the Board approve the following as its "financing plan" for the purchase of standardized trash containers. 1) Authorize and direct the District Treasurer to proceed to secure financing for the purchase of standardized trash containers in an amount to be determined in consultation with the District Manager (estimated at approximately $2,000,000) over a financing period of 10 years, which approximates the estimated useful life of the containers as determined for analysis purposes. 2) Such a financing contract would be submitted to the Board for final approval at a future regular or special meeting of the Board. 3) Debt service requirements for the payments due on such debt will be incorporated into the operating budget in an amount sufficient to fund the debt payments. 4) Normal inflationary adjustments to the Solid Waste rate structure are anticipated due to normal inflationary increases in operating expenditures. Incremental increases in the solid waste rate to keep pace with normal inflationary increases in operating expenditures is an important tenet in maintaining fiscal health. 5) Any unanticipated unforeseen events which may likely impact upon the Solid Waste rate structure will be presented to the Board for separate action. In the event that an operating deficit does, in fact, materialize within the Solid Waste Fund a separate plan of action to address the operating deficit will be presented to the Board for consideration by the District Treasurer. Such a plan will include those options previously discussed by the Board and enumerated herein. Some of these options are listed below: 3 1) Rate increases in the Solid Waste Fund. While this is not recommended at this time to address a projected operating deficit it is important to note that as a matter of standard' operating procedures and good management practice we should continually increase rates � annually by an amount equivalent to the rate of inflation or the rate of increase in the Districts' operating expenditures. 2) Consider allocating all of the property tax to the Waste Collection Fund. Currently, the District collects approximately $124,000 each year in property taxes. Half of these funds ($62,000) are currently allocated to the solid waste operations and half are allocated to the liquid waste operations. The Board, at its sole discretion, may allocate all of these tax collections to either the trash or sewer operations. The remaining half of the property tax collections could be allocated from the sewer operations to the trash operations if this action became necessary to fund operating deficits or the purchase, of trash containers. 3) Bankruptcy proceeds of $438,000 could be allocated entirely to the trash operations. Previously, the proceeds were allocated evenly between the solid and liquid waste operations. This transfer would be recorded as a prior period adjustment (restatement of beginning fund equity) in the amount of $219,000. 4) A review of the basis of allocation of the undesignated unrestricted unreserved portion of the General Fund fund balance between the Solid Waste and Liquid Waste Fund will be initiated to determine the whether or not other alternative allocation methods are reasonable or legally authorized which may result in a more favorable allocation of resources to the Solid Waste Fund. It is important to keep in mind that the issue of whether or not there will be an operating deficit in the Solid Waste Fund is independent of the purchase decision of the standardized trash containers. Whether or not an operating deficit exists should not influence whether or not proceeding with the purchase of the standardized containers is prudent or in the best interests of the District. Each issue should be decided independently. Having said that, I believe that based upon the financial data available at this time and the options identified above we can address any operating deficit if or when it occurs without increases in rates other than those normal inflationary increases prudent to maintaining fiscal stability in the long term. While there is no "magic pill" there is a sufficient amount of flexibility available to the Board to resolve any operating deficit within the parameters outlined above and purchase the standardized trash containers should the Board choose to do so. If you have questions or need additional information feel free to contact me directly. MARC R. PUCKETT District Treasurer Attachment rd S' SAN11,4r COSTA MESA SANITARY. DISTRICT yCOPOQA,+ TRASH COLLECTION REGULATIONS All trash collected is taken to a materials recovery facility where it is mechanically and hand sorted and the recyclables removed. You are not required to do any sorting. You can greatly help by buying in bulk and using products with less packaging. Please place all your trash in the pre- approved standardized container provided by the District. Thank you for making the community cleaner; healthier and better looking. IF ANY OF THE FOLLOWING ITEMS ARE CIRCLED, PLEASE COMPLY. 1. The combined weight of the container and contents should be less than 150 pounds. Trash should not be jammed in so it prohibits emptying. 2. All trash belongs inside the container with the lid closed, however, an occasional heavy -duty garbage bag left next to the containers is okay. If you continually have excess trash, please call (949) 646 -4617 to request an additional container. Never use a non- standardized container for excess trash, use only heavy -duty trash bags. 3. The containers belong to the District; please do not mark on them. Each container has an identification number and is assigned to a specific address. 4. If your container is damaged or has graffiti on it, call (949) 646 -4617. 5. Tree trimmings, shrubs, etc., shall be trimmed to fit inside a closed container. 6. We encourage Grasscycling, which is leaving cut grass right on the lawn as mulch. 7. Containers left out for collection should be on the curb, not in the street. 8. Report scavenging activity to (714) 754 -5307. After hours, call (714) 754 -5250. 9. Trash containers shall be placed out for collection between 5:00 p.m. the day before collection and 6:00 a.m. the day of collection. Containers must be removed by the evening of trash collection day and stored where they are not visible from the street. 10. IT IS ILLEGAL TO PLACE HAZARDOUS MATERIAL AND /OR LIQUIDS, such as paint, motor oil, fertilizer, pesticides, tires, etc., out for collection. Violators may be subject to a fine. For information on FREE PICKUP AT YOUR HOME CALL (800) 449 -7587. 11. Household furniture, appliances, construction material (concrete, lumber, carpet, tile, etc.), sod, dirt, or manure will not be collected. You may call Costa Mesa Disposal (949) 646 -4617 to arrange for a special free one -time per year pick up of a large item such as furniture or an appliance. Violation of these rules may result in discontinuance of service or other enforcement. For additional information or, service, please call Costa Mesa Disposal at (949) 646 -4617 or the Costa Mesa Sanitary District at (714) 754 -5307. Rev. 4/2001 0 • ROBIN B. HAMERS & ASSOCIATES, INC. CIVIL ENGINEERS • PLANNERS • SURVEYORS April 24, 2001 Board of Directors Costa Mesa Sanitary District P.O. Box 1200 Costa Mesa, CA 92628 234 E. 17TH ST. SUITE 205 COSTA MESA. CA 92627 (949) 546-1192 FAX (949) 546 -6516 RE: PROPOSED RATE INCREASE BY MANAGER/DISTRICT ENGINEER Dear Board of Directors: Enclosed is a request for a compensation increase for work performed by Robin B. Hamers & Assoc., Inc. for management and engineering services provided to the District. Throughout the past 20 years of service, the rates charged to the District have been substantially below industry standard rates and also less than rates charged to other clients. The mutually beneficial relationship of having a long term consultant in exchange for low consulting fees has successfully been in effect. The Sanitary District benefits from using only the consulting hours needed in performance of the work. The services of the Manager, District Engineer, other Registered Civil Engineers, Draftsman, Inspectors, and Land Surveyors, are all performed on an hourly basis. The $63.00/hr. rate charged the District for the Manager/District Engineer is well below the $110- $125 /per hour rate paid to Principals of other engineering firms. The last increase in rates was five years ago in June 1996, and the current rate and proposed structure is as follows: Average Yearly % Current Rate Proposed Rate Increase Since 1996 Engineering & Management $63.00/hr. $70/hr. 2.1% Draftsman 47.00/hr. 50/hr. 1.3 Inspector 42.00/hr. 45/hr. 1.4 Retainer $1,100 /mo. $1,200 /mo. 1.8 Survey Crew (2 man) 155/hr. 160/hr. .6 0 Printed on Recycled Paper. • Board of Directors April 24, 2001 Page 2 Enclosed for reference for the Board's review are the job descriptions of the Manager and District Engineer. The documents contain a detailed description of how services are billed to the District. Having been appointed as the District Engineer in 1981 and as the Manager in 1992, it has been a pleasure serving the Board of Directors. At no time in the District's history has the Board and Staff been so busy and accomplished so much month in and month out. The District has always been run as a lean organization with a Staff made up of a small group of hard working, efficient, team members, and the same holds true today. As a side note, in the Strategic Planning Workshop, discussion included the need for an Assistant District Engineer in the event the District Engineer is unavailable due to accident or other emergency. Two engineers in the firm are currently sufficiently able to handle the duties at any given time. These two key individuals have been very active in District work for quite some time. I* Sincerely, V 4 Robin B. Hamers C7 RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA MESA SANITARY DISTRICT ADOPTING CLASSIFICATION CHARACTERISTICS, QUALIFICATIONS AND JOB DESCRIPTION FOR DISTRICT MANAGER FOR THE DISTRICT. THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT DOES HEREBY RESOLVE AS FOLLOWS: That WHEREAS, DISTRICT has employed a new Manager and deems it in the best interest of MANAGER and DISTRICT to establish a job description including classifi- cation characteristics and qualification guidelines for the convenience of both DISTRICT and MANAGER; NOW THEREFORE, BE IT RESOLVED that the document entitled Costa Mesa Sanitary District Manager attached to THIS RESOLUTION as Exhibit "A" be hereby adopted. s 9zt- PASSED AND ADOPTED this,21th day of August, 1992. P sident of the Board of Directors s a Mesa Sanitary District ATTEST: Secretary • 7' • • r � L J COSTA MESA SANITARY DISTRICT DISTRICT MANAGER , DEFINITION Under general direction of the Board of Directors, plan, manage and evaluate Sanitary District operations; coordinate work with District and City staff and various contractors and vendors; administer the integrated waste management plan and recycling programs; and do other work as required. REPORTS TO Sanitary District Board of Directors PROVIDES DIRECTION TO Clerk of the District, Permit Specialist and contract staff; provides policy direction to Sanitation employees through Streets Superintendent and Director of Public Works /City Engineer CLASSIFICATION CHARACTERISTICS This is a contract management position which serves the Board of Directors of the Sanitary District. This position oversees and coordinates District operations through the work of City staff, contractors, commercial haulers, urban recycling centers and other vendors and representatives. The position establishes and revises District policies, agreements, administrative practices and billing procedures given broad guidance by the Board of Directors and technical advice by contract advisors. The position presents and evaluates District budget expenditures; the preparation of accounting statements and investment of District revenues are the responsibility of the City's Director of Finance /City Treasurer. The District Manager represents the Board of Directors in interactions with City and intergovernmental representatives, the media, business community, customers, contractors, vendors and the general public. .EXAMPLES OF DUTIES The duties and responsibilities include, but are not limited to, the following: Develop long -term and annual plans for District construction projects, sanitary maintenance and repair, hauling operations, and waste management and recycling programs. EXHIBIT "A -1" J Page 2 Class Specification- District Manager Plan, manage, organize and oversee District field operations, contract services and staff. Provide technical direction to Clerk of the District and Permit Specialist. Originate, coordinate and develop solid waste management and recycling programs in meeting with business and community representatives; resolve issues and promote approaches through media presentations. Initiate meetings with community and business representatives, governmental agencies and committees to evaluate and revise the City's Source Reduction Element and related recycling policies. Inspect and evaluate effectiveness of hazardous waste drop -off program, including pick -up sites and disposal operations. Oversee operations of local haulers and regional disposal facilities for solid waste and investigate public complaints. Develop and interpret provisions of the District service fee structure and exemption policies; prepare and evaluate franchise contract agreements in conjunction with the District's Attorney. Establish District policies, practices and administrative procedures; prepare ordinances, resolutions and legal agreements in conjunction with the District's Attorney. Monitor District bidding practices, specifications and budgetary expenditures; consult with the District Engineer and Assistant Streets Superintendent regarding capital improvement projects and sanitation operations and present related recommendations. Coordinate preparation of annual budget with City representatives and prepare summary findings and recommendations. Attend and make presentations at Board regular meetings and study sessions. Develop and administer risk management and safety plans for the District. Prepare articles and oversee publication of District Newsletter. Research potential grant and private financing of District projects and prepare related proposals and program evaluation reports. EXHIBIT "A -2" .e i • is 40 J I Page 3 Class Specification- District Manager QUALIFICATIONS GUIDELINES Education /training Educational attainment equivalent to a Bachelor's degree in Public Administration, Business Administration or a related field, supplemented by course work or training in sanitary and waste management, construction engineering, contract administration and personnel supervision. Experience: Seven years of broad and progressively experience involving the management and administration of special district operations and community services programs, including considerable experience in a supervisory capacity. Knowledge of: Sanitary district operations and practices and related City, county, state and federal regulations, codes and ordinances; waste management and recycling laws, regulations and community standards; theories and principles of public -management; principles and practices of safety, risk management, personnel supervision and contract administration. Skills /abilities: Plan, organize and manage District operations; define service goals and objectives; establish and evaluate District policies, practices and procedures; analyze and interpret sanitation and waste management technologies, laws, regulations, codes, ordinances and requirements; conceptualize, develop and implement community education programs; administer risk management and safety awareness programs; present operating budget and capital improvements recommendations for Board approval; prepare and present a variety of reports and correspondence; train, supervise and evaluate the work of assigned staff and contract personnel; provide policy direction to City employees to resolve fee assessment, refund and exemption issues,; communicate clearly and concisely, both orally and in writing; establish and maintain effective working relationships with the Board, City and District staff, county, regional, state and federal representatives, commercial haulers, . consultants, contractors, vendors, business owners, educators, community associations, and public and private representatives; maintain confidentiality of sensitive District information. EXHIBIT "A -3" Page 4 Class Specification- District Manager Physical Requirements: This is primarily a sedentary position which requires only occasional bending, stooping, reaching, lifting and movement of objects weighing 50 pounds or less. The employee is expected to operate a motor vehicle to inspect construction projects, sanitary work, pick -up sites; recycling centers and transfer stations, and to attend various community and professional meetings. Special Requirements: Possession of a Class C or Class 3 California driver's license and an acceptable driving record. Class Specification Prepared 01/17/92 EiIBIT "A -4" • i • • • • STATE OF CALIFORNIA) COUNTY OF ORANGE )SS CITY OF COSTA MESA ) I, Florine T. Reichle, Assistant ,Ianager and Clerk of the Costa Mesa Sanitary District, hereby certify that the attached Resolution No. 92 -523 was duly and regularly passed and adopted by the Board of Directors at an adjourned regular meeting' thereof held on the 27th day of August, 1992, by the following roll call vote: AYES: Directors - Wahner, Ferryman, Reade, NOES: Directors - Sherrick ABSTAINING: Directors - None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the Costa Mesa Sanitary District, this 31st day of August, 1992. Prinred on Recycled Paper Assistant Manager /Clerk Costa Mesa Sanitary District RESOLUTION NO. l— 9 Y A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING THE DUTIES AND OBLIGATIONS AS A JOB DESCRIPTION FOR THE DISTRICT'S ENGINEER. THE BOARD OF DIRECTORS OF THE COSTA .MESA SANITARY DISTRICT DOES HEREBY RESOLVE AS FOLLOWS: That WHEREAS, the DISTRICT employs an Engineer as an independent contractor for general engineering services; and WHEREAS, for the convenenience of both the Board and the Engineer, it is deemed desirable that a job description be adopted by the Board; NOW, THEREFORE, there is hereby adopted the job description for the District Engineer as attached to THIS RESOLUTION marked Exhibit "A" and by this reference made a part hereof. PASSED AND ADOPTED this 20th day of August, 1992. 0 ATTEST: Secreeat • ent of the Board of Directors Mesa Sanitary District JOB DESCRIPTION COSTA MESA SANITARY DISTRICT I. RETAINER FEE SERVICES DISTRICT ENGINEER A. Administrative Functions 1. Provide engineering counsel for the Board of Directors, staff, other public agencies, and the public. 2. Attend regularly scheduled District agenda and Board v meetings. 3. Prepare letters in response to questionnaires, surveys, or inquiries regarding District operations, procedures, regulations, or existing facilities from county, federal, and other local agencies. 4. Confer with District's staff and maintenance personnel for daily engineering and reference assistance. 5. Confer with contractors, developers, engineers, public agencies and the public about existing sewer location and proposed sewer construction. 6. Prepare and submit on a year -end basis fixed asset and inventory reports. Assist in maintaining a fixed asset record file and an inventory of facilities. Assist staff and auditors with fixed asset audit. 7. Prepare and submit required information in a timely fashion. 8. Prepare and submit cash flow analysis for District projects. 9. Prepare and submit Capital Improvement Action Request forms for all approved projects. 10. Prepare and submit, two weeks prior to May meeting, proposed Capital Improvement Program with detailed descriptions and justifications for inclusion in the next years Preliminary Budget. 11. Prepare and submit, two weeks prior to August meeting, final Capital Improvement Program incorporatiing all changes ordered by the Board for inclusion in the Final Budget. EXHIBIT "A -1" B. Engineering Functions 1. Prepare and maintain up -to -date District boundary records including District map showing current boundary. 2. Maintain and update an overall District annexation map showing annexation number and area. 3. Maintain and update engineering data, records, pump station information, and CMSD Standard Plans and Specifications for the Construction of Sanitary Sewers. 4. Prepare responses to mandatory requests from state, county, and federal agencies and respond in writing to other local agencies regarding sewer availability. 5. Review proposed developments for effect on District facilities and submit to staff appropriate conditions to be placed on those developments by subsequent action of the Costa Mesa Planning Commission and City Council. 6. Review annually and update as necessary the Capital Improve ent Program Master Plan through, but not limited to, flow characteristics, major private developments, and land use changes in effect. 7. Prepare and submit to Board a monthly Project Status Report briefly detailing the status of each District capital project. Respond to public inquiry over the purpose, scope and timing of each capital project. 8. Respond to sewer emergencies such as main line breakage or private lateral stoppage. II. HOURLY FEE SERVICES A. Plan Checking 1. Review, check, and sign plans for all sewer construction proposed by developers or other entities within public right -of -way or public easements. Upon completion of construction as -built sewer plans and add sewer information to District's sewer atlas. 2. Determine inspection, plan check, and connection charges for all new development. C. EXHIBIT "A -2" 1 3, keceive, review and process right-7-way descriptions, 1 maps and easements for public and private developments. Preparation of right -of -way documents, easements and right of way acquisitions for District projects are a separate cost and are charged against the particular capital improvement project when budgeted and authorized by the Board. 4. Prepare District annexation documents, maps, and descriptions, and submit them to District staff for processing new annexations. B. Construction Inspection 1. Review, inspect and approve all main line sewer construction in District by City, County, State and private developer construction projects. 2. Review, inspect and approve all sewer lateral construction in District from the property line to the main line for all new development. 3. Review and inspect all utility or street construction projects in the vicinity of, or that impacts, District facilities. 4. Field mark the location of all District owned pressure sewer mains as required in response to Underground Service Alert notification. 5. Assist contractors and homeowners in locating existing sewer laterals. 6. Respond to emergency sewer problems and assist in controlling emergencies. C. District Initiated Capital Improvement Projects 1. Upon authorization by Board on a per project basis, complete design phase of each capital improvement project including providing the necessary engineering services to prepare complete project plans and specifications, assisting in advertising said projects for bid, reviewing bids and making recommendations to Board for award of project. 2. Upon authorization by Board on a per project basis, administer, inspect and review the construction phase of each capital project as completed by District selected contractor, including, but not limited to, holding pre - construction meetings, reviewing contractors schedule and performance, inspecting and reviewing contractors work, reviewing and approving monthly progress payments and performing liason with public. EXHIBIT "A -3" STATE OF CALIFORNIA) COUNTY OF ORANGE )SS CITY OF COSTA MESA ) 1, Florine T. Reichle, Assistant Ma -nager and Clerk of the Costa Mesa Sanitary District, hereby certify that the attached Resolution No. 92 -524 was duly and regularly passed and adopted by. the Board of Directors at an adjourned regular meeting thereof held on the 27th day of August, 1992, by the following roll call vote: AYES: Directors - Wahner, Ferryman, Reade, NOES: Directors - Sherrick ABSTAINING: Directors - None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the Costa Mesa Sanitary District, this 31 -_t ;:ay of Augus- 1992. L Assistant Ma ager /Clerk Costa Mesa Sanitary District Printed on Recycled Piper c <? • 0 ,g U • AL:4N R. BURNS JOHN R. IIARPER* OF COUNSEL JUDI A. CURTIN* MICHAEL MONTGOMERY- 'A PROFESSIONAL CORPORATION LAW OFFICES OF HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION 453 S. GLASSELL STREET ORANGE, CALIFORNIA 92866 (714) 771 -7728 FAX (714) 7443350 TO: Members of the Board of Directors Costa Mesa Sanitary District FROM: District Counsel DATE: March 14, 2001 RE: Increase in Hourly Rates RNFRSH]F / SAN RFRNARI]M(l (909) 674 40698 I am requesting an increase in my hourly rates. It has now been three and a half years since my last increase. I am currently receiving $125.00 per hour and I request an increase to $135.00 per hour, an increase of 8% over three years. Since my last increase my expenses for office, malpractice, secretary/paralegal, books, computers, utilities, postage and other expenses have increased. Even with such an increase my rates would still be very comparable to similar agencies: Orange C'oun Sanitation District: Represented by Woodruff, Spradlin & Smart at $200 per hour Midway City Sani ary District: Represented by Woodruff, Spradlin & Smart at $150.00 per hour Goleta Sanitary District: Represented by Hatch & Parent at $200.00 per hour Western Riverside County Regional Wastewater Authority - Represented by Aklufi & Wysocki at $150.00 per hour. Western Municipal Water District - Represented by Best, Best and Kreiger at rates varying between $145.004250.00 per hour. Costa Mesa Sanitary District Hourly Rate Increase March 14, 2001 Page 2 I am enclosing a copy of my resume for the benefit of the new Directors and staff. Thank you for considering my request. Respectfully submitted, aL Alan R. Burns District Counsel • LAW OFFICES OF HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION 453 S. GLASSELL STREET ALAN R. BURNS ORANGE, CALffORNIA 92866 R6LFR SH)E /RAN RFRNARI)MO JOFIN R. HARPER- (909) 67440698 (714) 771 -7728 OFCOUNSEL FAX (714) 744 -3350 JUDI A. CURT IM MICHAEL MONTGOMERY' •A PROFESSIONAL CORPORATION ALAN R BURNS EDUCATION AND EXPERIENCE Since 1976 my law practice has had an emphasis in representing local government entities. I have been the General Counsel to the Home Gardens Sanitary District since 1977. Since 1982 I have been the contract City Attorney of Fountain Valley, a full service city (police, fire and public works) with a population in excess of 50,000. I have been the General Counsel to the Orange County Vector Control District since 1988 and General Counsel to the Costa Mesa Sanitary District since 1994. Orange County City Attorneys Association (Past President - 1988) League of California Cities - City Attorneys Division (State Legal Advocacy Committee 1989 - 1.991) State of California Bar Association - Public Law Division Orange County Bar Association California Association of Sanitation Agencies Volunteer Attorney - Public Law Center - State Bar Commendation for Pro -Bono Services Kiwanis (President - Fountain Valley 1982) Distinguished President Award; Distinguished Service Award for Community Service; Life Member) Adult Leader - Boy Scouts of America President - Hillsdale Homeowner's Association • El Modena Wrestling, Girls Cross Country and Track and Softball Booster Clubs Alan R. Burns Resume Page 2 Bachelor of Arts, California State University at Fullerton (1973) Jun's Doctorate, Pepperdine University (1976) Pepperdine Law Review Recipient - American Jurisprudence Award - Criminal Law (1976) "AV" Marti ndale - Hubbell• Rating (Given to top 11% of attorneys for ability and ethics) PUBLIC AGENCY CLIENTS City of Fountain Valley (1982 - Present) Home Gardens Sanitary District (1982 - Present) Orange County Vector Control District (1988 - Present) Costa Mesa Sanitary District (1994- Present) Interim City Attorney - City of Orange (1996 -1997) Anaheim Stadium Corporation City of Anaheim City of Huntington Beach Huntington Beach Union High School District Huntington Beach Elementary School District Lake Arrowhead Community Services District City of Garden Grove City of Grand Terrace • :i • Alan R. Burns Resume Page 3 City of La Palma City of Laguna Niguel City of Lake Elsinore City of Los Alamitos City of Newport Beach City of Norco City of Stanton . City of Tustin Ocean View School District Orange County Sanitation District Orange County Transit District Orange County Water District Riverside Transit Agency Citr of Costa Mesa v. Coat Hill Tavern (1992) 6 Cal.App. 4th 1519. This case remains the leading case on conditional use permits, vested rights in business operations, and the level of due process required to take away a property right. People v. Culver (Orange County Superior Court Case No. 691173) Orange County's first drug house abatement in which the defendant was required to post a sign on his house stating that the house was under Court order for drug dealing and which enjoined certain persons from coming near the residence. This case resulted in an entire neighborhood being "taken back" from drug dealers. r� k, Memorandum To: Rob Hamers, Manager Costa Mesa Sanitary District From: Peggy Preston o" Date: March 29, 2001 Subject: Request for Compensation Adjustment Request Peggy Preston stenographic services are currently being charged at $35.00 an hour. This request is for an adjusted rate of $10.00 per hour to $45.00, an average yearly increase of 2.8 percent per year since 1992. A description of my services and the proposed increase is as follows: Description of Minute Taking Services I write as close to verbatim as possible, not only what is said, but who says it. I also note when someone comes in or leaves and the time. I then take the disk out of my machine and interface it with my "special dictionary" in my computer software to transcribe the electronic notes I wrote during the meeting. This process turns my steno language into English. I print this out and have it beside my computer when I am reducing the raw information into the minutes. It makes the reading /synopsis process go much faster. One agenda item may go anywhere from a half a page to 15 -20 pages. I read the section, highlight important points, and formulate the minutes. The meetings range anywhere from 100 to 150 pages as steno programs give you 25 lines per page and paragraphs at every speaker change. Having the notes electronically also facilitates sending Joan the excerpts she frequently requests to write letters to LAFCO or ISDOC. I can do a search of the electronic file and print just those pages to expedite writing the minute paragraph for that section of the meeting. There is also the possibility of providing a verbatim account of the meeting, or portions thereof if needed. On two occasions you have requested verbatim notes. Once during the bankruptcy to review a conversation between the Board and the City attorney, and recently • Joan requested the verbatim to review what was said regarding the standardized container program. This process is easier for you than trying to find that section of the tape to listen to again. . Request for Compensation Adjustment March 29, 2001 Page 2 • At your request, I have identified five possible options for recording minutes. 1. Staff member (i.e., Joan) taking notes and writing minutes 2. Taped meetings transcribed by a service 3. Handwritten shorthand 4. Court reporting agency 5. Steno machine dictation taken with minutes provided (service I provide) 1. Staff Member. You previously stated that Joan does not have time in her schedule to prepare the minute report. 2. Tape Transcription. The problem I have experienced in utilizing a tape transcription service is greatly reduced accuracy (I used to do them years ago for my agency): When you have multiple people speaking, frequently on top of each other, you must continually rewind the tape and focus on each individual voice. It is not only a more time consuming process, it is also impossible for the transcriber to mark who the voice belongs to. 3. Handwritten Shorthand. The bulk of the secretarial services would not send someone out to an evening meeting. One agency I contacted to ascertain their fee said he had a staff person who could take handwritten shorthand, but would need to have her complete the transcription of the shorthand at your office. They do not have facilities for her to work out of. Their fee was $55.00 per hour for that service and you provide a computer workstation. 4. Court Reporting Agency. The court reporting agencies do not have staff members who synopsize into minute format. They take verbatim records only and you would receive a printout of the transcript. There was only one firm out of the six that returned my call with their fee of $4.50 per page. They would also charge an appearance fee for attending a night meeting. I could not get them to commit to exactly what that fee would be. A 125 -page document at $4.50 per page equals $562.50, without reducing the report to minute form. You also asked me to provide you with the replacement costs for my machine and software to assist in identifying the cost of my providing service. The machines run approximately $4,000. The software I researched on the Internet ran from $3,995 to $4,590. 1 must also provide my own computer equipment ($3,000) and transcription tape player (it was about $500). At some time in the near future I will be replacing the equipment. I have provided minutes for the Board since approximately 1992 and I greatly enjoy the work and desire to continue providing services to the district. The proposed rate of $45.00 per hour is still a considerably low rate and allows me to continue providing the service to the district, which is my main goal. This is not my only source of income, but it is a very • valued part of my business career. Thank you for considering my request.