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Agenda Packets - Board - 2003-04-11• 0 COSTA MESA SANITARY DISTRICT an Independent Special District AGENDA Arlene Schafer President Greg Woodside Vice President Art Perry Director Jim Ferryman Secretary Dan Worthington Director 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 three minutes or as decided upon by the Presiding Officer. 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). Regular Meeting - Friday, April 11, 2003 RECOMMENDED ACTION CALL TO ORDER —11:00 a.m. — Conference Room 1A, Costa Mesa City Hall II. PLEDGE OF ALLEGIANCE — Director Ferryman III. INVOCATION — Director Woodside ' -.IMW mew 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. Reports Minute Approval 1. Recycling Committee Meeting —March 11, 2003 • 2. Regular Meeting — March 12, 2003 3. Liaison Committee Meeting — March 24, 2003 Notecting our community's health by providing solidwaste andsewer colrection services. costamesasanitarydistrict. org COSTA MESA SANITARY DISTRICT AGENDA 0 Manager's Reports April 11, 2003 Page 2 RECOMMENDED ACTION ftotecting our community's health 6y providing solid waste and sewer colrection services. costamesasanitaryd strict. org 4. Refunds No Refunds 5. Occupancy Report and payment to Costa Mesa Disposal — April 2003 Approve 6. Monthly Spill Report to Regional Water Quality Control Board (RWQCB) Receive and File 7. Safety /Loss Control Meeting — March 18, 2003 Receive and File Engineer's Reports 8. Project Status Report Receive and File Treasurer's Reports 9. Financial Report as of March 31, 2003 Accept Report 10. Report of Monies on Deposit as of March 31, 2003 Receive and File 11. Warrant Register for March 2003 in the amount of $255,275.51 Approve Payment 12. Directors' Expenses for the Month of March 2003 Ratify Expenses • -------------------------------------- - - - - -- -END OF CONSENT CALENDAR --------------------------------------------- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Anti - Scavenging and Screening of Trash Containers Enforcement Reports Consider B. CMSD Strategic Planning Action Items 2003 1. Item 1.2 — Institutional Issues Consider Action C. Recycling Reports 1. Waste Diversion Report — March 2003 Receive and File D. Contract Payment to CR Transfer for recycling services and disposal for March 2003 1. Payment for March 2003 Services Approve Subject to Verification of Diversion Report by Staff • ftotecting our community's health 6y providing solid waste and sewer colrection services. costamesasanitaryd strict. org COSTA MESA SANITARY DISTRICT April 11, 2003 AGENDA Page 3 RECOMMENDED ACTION A. Analysis of Trash Hauling Expenses Verbal Update B. Investment Oversight Committee Meeting held April 11, 2003 Accept Report C. Budget Calendar Accept Report D. State Budget Accept Report 41 ATTORNEY'S REPORTS A. Transfer Agreement of Arlington Drive Sewers from OCSD to CMSD Approve Agreement & Accept Transfer (Protecting our community's health 6y providing solufwaste andsewercollection services. costamesasanitarydistrict. org E. Standardized Container Program 0 1. Lifting Bar Replacement Update Accept Report 92. Purchase of Container Inventory Ratify Purchase /Approval of Future Purchases 3. Responsibility for Replacement Containers Consider Adjusting Yearly Rate F. CMSD /CCM /MCWD Liaison Committee Meeting — March 24, 2003 Accept Report G. Recycling Committee — April 3, 2003 — 11:30 a.m. Director Worthington and Director Ferryman 1. E -Waste Presentation Consider 2. Strategic Planning 2003 - Public Outreach — Classroom Recycling Project Consider 3. Earth Day — Tuesday, April 22, 2003 Consider IX. ENGINEER'S REPORTS • A. Annexation No. 252 — Home Ranch, Making Application to LAFCO Adopt Resolution CMSD Resolution No. 2003 -666 B. Waste Discharge Requirements (WDR) 1. Sewer System Management Plan Report from Engineer 2. Legal Authority Report from Attorney 3. Model Grease Ordinance Report from Attorney X. TREASURER'S REPORTS A. Analysis of Trash Hauling Expenses Verbal Update B. Investment Oversight Committee Meeting held April 11, 2003 Accept Report C. Budget Calendar Accept Report D. State Budget Accept Report 41 ATTORNEY'S REPORTS A. Transfer Agreement of Arlington Drive Sewers from OCSD to CMSD Approve Agreement & Accept Transfer (Protecting our community's health 6y providing solufwaste andsewercollection services. costamesasanitarydistrict. org COSTA MESA SANITARY DISTRICT April 11, 2003 AGENDA Page 4 I. California Special Districts Association (CSDA) 1. CSDA Governance Academy — Governance Foundations Accept Report April 10, 2003, Santa Ana (President Schafer, Director Ferryman, Director Worthington) 610vfo j-I. , 2. CSDA Government Affairs Day — April 1 -2, 2003, Sacramento Accept Report (President Schafer and Director Worthington) 3. CSDA Exceptional Public Outreach Award Approve Entry 40 11. OLD BUSINESS A. CostaMazing - City of Costa Mesa 50 -Year Anniversary Consider 1Trotecting our community's heath 6y providing sofi dwaste andsewer colrection services. costamesasanitarydistrict. org RECOMMENDED • ACTION B. Strategic Planning 2003 — Earmarking District Reserves: Legal Opinion Consider C. Resolution No. 2003 -667 Ordering that Publication of Ordinance No. 40 Adopt Resolution Has Occurred D. Resolution No. 2003 -668 Ordering that Publication of Ordinance No. 41 Adopt Resolution Has Occurred E. Resolution No. 2003 -669 Ordering that Publication of Ordinance No. 42 Adopt Resolution Has Occurred F. Resolution No. 2003 -670 Ordering that Publication of Ordinance No. 43 Adopt Resolution Has Occurred XII. LOCAL MEETINGS A. Orange County Sanitation District 1. Regular Meeting — March 26, 2003 (Director Ferryman) Accept Report B. Mesa Consolidated Water District — March 27, 2003 (Director Perry) Accept Report C. Santa Ana River Water Protection Agency (SARWPA) — March 27, Accept Report 2003 (Director Perry) D. Independent Special Districts of Orange County (ISDOC) Consider E. Local Agency Formation Commission (LAFCO) Consider F. Water Advisory Committee of Orange County (WACO) Consider G. Orange County Council of Governments (OCCOG) Consider H. Costa Mesa Chamber of Commerce Consider I. California Special Districts Association (CSDA) 1. CSDA Governance Academy — Governance Foundations Accept Report April 10, 2003, Santa Ana (President Schafer, Director Ferryman, Director Worthington) 610vfo j-I. , 2. CSDA Government Affairs Day — April 1 -2, 2003, Sacramento Accept Report (President Schafer and Director Worthington) 3. CSDA Exceptional Public Outreach Award Approve Entry 40 11. OLD BUSINESS A. CostaMazing - City of Costa Mesa 50 -Year Anniversary Consider 1Trotecting our community's heath 6y providing sofi dwaste andsewer colrection services. costamesasanitarydistrict. org COSTA MESA SANITARY, DISTRICT AGENDA • XIV. NEW BUSINESS A. Rauch Communication Consultants Invoice for Strategic Planning Workshop in the amount of $5,281.12 XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT April 11, 2003 Page 5 RECOMMENDED ACTION Approve Payment Trotecting our community's heaCth 6y providing solidwaste andsewer coCdection services. costamesasanitarydutrict. org �S�SANITgRy Re � ano 00 � h oa i yc�RPORATE�,9w • • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING MARCH 11, 2003 The Costa Mesa Sanitary District Recycling Committee met at 9:00 a.m. in conference room 3A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Dan Worthington, Art Perry Staff Present: Rob Hamers, Tom Fauth, Joan Revak, Bobby Young Director Worthington called the meeting to order at 9:00 a.m. STRATEGIC PLANNING 2003 — PUBLIC OUTREACH — CLASSROOM RECYCLING PROJECT In response to a Strategic Planning 2003 Workshop goal under Public Outreach, Director Worthington presented suggestions for District sponsorship of a school classroom project. Such a presentation could begin with a viewing of the CMSD video educating the students on the many services provided by the District and followed with some type of inter - active demonstration, such as displaying a plastic bag containing 50 recyclable items and 50 items that are not recyclable. The students decide which are recyclable and which are not. This could be followed by a 15- minute question and answer period. Another suggestion is to hire a professional who puts on programs at schools addressing recycling issues. Director Worthington also proposed the idea of the District purchasing a shell -like trailer that would accommodate 25 -30 students where recycling exhibits could be displayed and a teacher or District representative could hold an instruction period on recycling. The District could loan or rent the trailer to other agencies. Director Perry noted that holding a classroom activity wasthe Board's focus during the Strategic Planning 2003 Pre - Meeting. Mr. Harriers suggested looking into the cost of such a trailer. Trotecting our community's health 6y prawding sott'd waste and sewer collection services. costamesasanitarydrstrcct. org N tie n o0o p y V �1 'yc0'�PORA��,9~ Costa Mesa Sanitary District Minutes of Recycling Committee Meeting March 11, 2003 • Page 2 Another idea presented was a classroom - composting project. Mr. Fauth will obtain pictures of composting bins to present to the Board at the regular meeting on March 12, 2003. Mr. Fauth has considerable experience in home composting. Director Worthington will contact the School District to obtain approval for the District to present a program in the schools. Mr. Hamers recommended the two - person District team for leading the classroom project be Director Worthington and Mr. Fauth. EARTH DAY District involvement in a project for Earth Day, Tuesday, April 22, 2003, was discussed and it was suggested this be the start up date for a classroom - recycling project. PUBLIC COMMENTS There were no public comments. The meeting was adjourned at 10:00 a.m. Secretary President Trotecting our community's heaCth 6ypravidzing soCid waste and sewer cotrection services. costamesasanitaryd4o ct. org • 15 4 ' 0 • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 12, 2003 The Board of Directors of the Costa Mesa CALL TO ORDER Sanitary District met in regular session on March 12, 2003, at 12:00 p.m. Conference Room 1 -A at the Civic Center, 77 Fair Drive, Costa Mesa. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL President Schafer called the meeting to order at 12:00 p.m. Director Worthington led the pledge. Vice President Woodside gave the invocation. DIRECTORS PRESENT: Arlene Schafer, Art Perry, Greg Woodside, 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; Marc Puckett, Finance Director; Bobby Young, Finance, Ron Shef, District Ordinance Enforcement Officer OTHERS PRESENT: None 0 . ............................... CONSENT CALENDAR . ............................... +�S's►xir��o COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING `s MARCH 12, 2003 OY PAGE 2 Director Worthington inquired as to why the amount on the Warrant List for February, Warrant Resolution No. CMSD 2003 -8, was higher than usual. Mr. Puckett explained the primary additional expenses were as follows: • Transmittal of connection fees to Orange County Sanitary District • Debt service payment for lease • Two payments to CR Transfer Mr. Burns requested the Warrant List for March, Warrant Resolution No. CMSD 2003 -9, be modified to show a date of March 12tH, not March 13tH Director Perry motioned to approve the Consent Calendar as corrected and as shown below. Director Woodside seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Recycling The Minutes for the Recycling Committee Meeting Committee Meeting, of February 11, 2003, were approved as February 11, 2003 distributed. Minutes of Regular The Minutes for the Regular Meeting of February Meeting, 13, 2003, were approved as distributed. February 13, 2003 MANAGER'S REPORTS Refunds In accordance with Resolution No. 96 -584, adopted by the Costa Mesa Sanitary District on April 17, 1996, the following refunds were granted subsequent to receiving a signed statement from the applicants: Refund request by Approved refund request to M.V. Partners M.V. Partners in the for property located at : 2677 Harbor Boulevard — amount of $4,119.28 Kona Lanes Assessor's Parcel No. 139- 361 -40 Commercial Square Feet: 46,730 Sewer Refund Totaling: $4,119.28 Tax Years 2000 -2001, 2001 -2002, 2002 -2003 Reason: Parcel being charged for 174,900 s.f. i • • 4 • Shot COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING `s MARCH 12, 2003 PAGE 3 Refund request by Approved refund request to M.V. Partners M.V. Partners in the for property located at: 1545 Adams Avenue amount of $653.29 (Mesa Verde Shopping Center) Assessor's Parcel No. 139- 361 -41 Commercial Square Feet: 151,100 Sewer Refund Totaling: $653.29 Tax Years 2000 -2001, 2001 -2002 Reason: Parcel being charged for 174,900 s.f. Refund request by Approved refund request to M.V. Partners Vincent Fiattarone in the for property located at : 1331 Baker Street amount of $138.03 Assessor's Parcel No. 141 - 191 -18 Number Units on Parcel: 3 Units Trash Refund Totaling: $138.03 Tax Years 2001 -2002 Reason: Resident using private trash service. Property used curbside collection for 9 months. Occupancy Report and The Trash Occupancy Count documented an Payment of $178,142.69 increase of 21 units in the occupancy report for to Costa Mesa Disposal — solid waste collection as of March 1, 2003. March 2003 Therefore, the total for March is 21,072. Board directed Staff to prepare a warrant for $178,142.69 to Costa Mesa Disposal on April 1, 2003, for payment for March trash collection based on the March count of 21,072. Monthly Spill Report to The Monthly Spill Report to the Regional Water Regional Water Quality Quality Control Board (RWQCB) for February 2003 Control Board (RWQCB) was accepted as submitted. ENGINEER'S REPORTS Project Status Report The Project Status Report dated March 2003, was accepted as submitted. TREASURER'S REPORTS Financial report as of The Financial Report as of February 28, 2003, was February 28, 2003 accepted as submitted. UOSTA 1VIESA NANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 12, 2003 PAGE 4 Report of Monies on The Report of Monies on Deposit as of February Deposit as of 28, 2003, was received and filed. February 28, 2003 Warrant 2003 -9 for March Warrant Resolution #CMSD 2003 -9 was approved, 2003 in the amount of authorizing the President and Secretary to sign the $355,338.76 warrant and instructing the Finance Department to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $355,338.76. Directors Expenses for the Director Expenses for the Month of January 2003 Month of February 2003 were ratified as follows: Director Ferryman: $850 + 7.98 Director Perry: $850 President Schafer: $1,020.00 Vice President Woodside: $510 Director Worthington: $1020.00 + 338.61 .......................... END OF CONSENT CALENDAR .......................... WRITTEN COMMUNICATIONS Mr. Hamers reported receiving thank you letters from two schools that participated in the District's Telephone Book Recycling Program. Ms. Christine Anderson, Sonora School Principal, dated February 28, 2003, thanking the district for the award presented to Sonora School for participation in the Telephone Book Recycling Program. Ms. Susan Kline, Kline School, dated March 15, 2003, thanking the District for the award presented to the Kline School for participation in the Telephone Book Recycling Program. PUBLIC COMMENTS There were no public comments made, no public in attendance. 1 • • •I COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING s a MARCH 12, 2003 PAGE 5 MANAGER'S REPORTS ANTI - SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT REPORTS POLICE REPORT Mr. Hamers presented a memorandum providing the scavenging statistics for February as follows: Location Calls for Service Cite /Arrest Area 1 3 1 Area II 0 0 Area III 0 0 Area IV 0 0 TOTAL 3 1 DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT Mr. Hamers presented the ordinance enforcement summary report for the four -week period beginning January 27, 2003 and ending February 23, 2003. Mr. Shef distributed approximately 25 courtesy flyers during this period. Director Worthington inquired as to the increase in noncompliance. Mr. Shef reported the situation is not extreme, but reported he has noticed an increase in resistance from a small number of residents regarding placing their containers out of view. President Schafer inquired as to the procedure when containers are left out in front of a vacant house for sale. Mr. Shef reported he places a courtesy notice on the container and contacts the realtor to request the containers be moved. Mr. Hamers reported Staff met and discussed the Home Ranch development and the placement of containers in the models so buyers know the containers come free to them with the home. Director Worthington suggested the next newsletter contain an article to inform residents that they can contact the District to either supply additional containers, if needed, or pick up extra containers they no longer require. COSTA MESA SANITARY DISTRICT �< t MINUTES OF BOARD OF DIRECTORS REGULAR MEETING s" a o`�,,s MARCH 12, 2003 PAGE 6 CMSD STRATEGIC PLAN STRATEGIC PLANNING ACTION ITEMS 2003 ITEM 1.2 — INSTITUTIONAL ISSUES — COMMITTEE MEETING 3/10/03 Mr. Hamers reported the first Institutional Issues Committee Meeting was held and attended by Directors Schafer and Ferryman, Rob Hamers, Tom Fauth and Joan Revak. Based on that meeting, a Special Meeting was requested between the Board and Staff. A Special Meeting was set for 12:00 noon on Friday, April 11, 2003. RECYCLING REPORTS WASTE DIVERSION REPORT — FEBRUARY 2003 The Waste Diversion Report for February depicted a diversion rate of 50.07 percent. Director Perry motioned to receive and file the Waste Diversion Report. Director Ferryman seconded. Motion carried 5 -0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL FOR DECEMBER 2002 0 PAYMENT FOR FEBRUARY 2003 SERVICES Director Perry motioned to approve contract payment to CR Transfer for recycling services and disposal for the month of February 2003, in the amount of $137,110.44, subject to verification of the diversion report by Staff. Director Woodside seconded. Motion carried 5 -0. STANDARDIZED CONTAINER PROGRAM — BAR REPLACEMENT UPDATE Mr. Fauth presented a memorandum to Roto Industries dated March 6, 2003. Mr. Fauth reported Roto is in the process of replacing the bars on all 45,000 containers due to failures noted in the field. The new bars will be thicker steel capable of withstanding greater stresses. Mr. Fauth reported the contributing factor to the bar damage was a maladjustment to the lifting mechanism on the trucks. Mr. Fauth reported that issue has been addressed and Costa Mesa Disposal will begin performing a check on the mechanism twice a month. • +�S,,SANITj�,o COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING s" a olAna,.� MARCH 12, 2003 PAGE 7 Roto estimated they could retrofit approximately 1,000 containers a day, requiring a total of 45 days to complete the task. The actual retrofit number has been 1,350 containers a day. This will enable them to complete the retrofit sooner than the original estimation of 45 days. RECYCLING COMMITTEE — MARCH 11, 2003— 9:00 A.M. DIRECTOR WORTHINGTON AND DIRECTOR PERRY STRATEGIC PLANNING 2003 — PUBLIC OUTREACH — CLASSROOM RECYCLING PROJECT EARTH DAY — TUESDAY, APRIL 22, 2003 Director Worthington reported the Committee discussed possible ways to make a larger impact in the schools and participate in an Earth Day program with the students. Director Worthington suggested putting together a 30- minute presentation for the students, which would include the District's 15- minute video. Director Worthington had a meeting with the school district and provided the video to the school district superintendent for review. Director Worthington reported the Committee also investigated a worm farm, a device utilizing red worms to turn food waste into compost within the classroom. The Committee suggested having the District's logo on the containers and working with the schools to have a container placed in the classroom to consume food waste and provide an educational opportunity. Mr. Fauth distributed a pamphlet on worm containers and reported he personally uses a worm farm in his home for composting. Director Worthington suggested Mr. Fauth bring a sample of a worm container to demonstrate the process to the Board. Director Worthington will contact Kline school as a possible first school to locate a worm farm. Director Ferryman approved the classroom recycling project in concept. Director Woodside seconded. Motion carried 5 -0. • SAW "'•�, COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS RFGULAR MEETING MARCH 12, 2003 PAGE 8 ENGINEER'S REPORTS ANNEXATION NO. 252 - HOME RANCH, MAKING APPLICATION TO LAFCO CMSD RESOLUTION No. 2003 -666 Mr. Hamers reported the property application has not yet been received from the property owners; therefore the application is not ready and will be brought back to the Board in April. WASTE DISCHARGE REQUIREMENTS - (WDR) Mr. Hamers provided a general update for the Board. Mr. Hamers will attend a Steering Committee meeting regarding fats, oils, and grease on March 13, 2003. TREASURER'S REPORTS ANALYSIS OF TRASH HAULING EXPENSES Based on a request from Costa Mesa Disposal to consider their sharply increasing insurance costs, Mr. Puckett was asked to perform an analysis of the financial statements of Costa Mesa Disposal. Mr. Puckett reported he was given complete access to all records. Mr. Puckett provided a brief overview of his analysis and will present a more in -depth report after talking with Mr. Rangel and his Accountant, Mr. Mike Reed. STATE BUDGET Mr. Puckett provided a brief review of the state budget, including a review of Assembly Bill Number 1221, a bill proposing to exchange sales tax for property tax on a dollar- for - dollar basis. ATTORNEY'S REPORTS ORDINANCE NO. 43 - ESTABLISHING THE MILEAGE REIMBURSEMENT RATE SHALL BE AS ESTABLISHED BY THE INTERNAL REVENUE CODE Mr. Burns introduced ORDINANCE NO. 43, AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING THAT THE MILEAGE REIMBURSEMENT RATE SHALL BE AS ESTABLISHED BY THE INTERNAL REVENUE SERVICE. r, u • COSTA MESA SANITARY DISTRICT of MINUTES OF BOARD OF DIRECTORS REGULAR MEETING s" o MARCH 12, 2003 ��ORA�D PAGE 9 Director Woodside motioned to adopt Ordinance No. 43, Establishing the Mileage Reimbursement Rate shall be as Established by the Internal Revenue Code. Director Perry seconded. Motion carried 5 -0. TRANSFER AGREEMENT OF ARLINGTON DRIVE SEWERS FROM OCSD TO CMSD Mr. Burns reported he is waiting to receive the revised agreement incorporating his comments and those of Mr. Hamers. STRATEGIC PLANNING 2003 — EARMARKING DISTRICT RESERVES: LEGAL OPINION Mr. Burns was requested to provide an opinion on earmarking reserves. Mr. Burns completed the report and will perform a final review on the document before distribution to the Board. Mr. Burns reported the sum and substance of his research is that earmarking does not offer protection for District reserves from the State. ,LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT REGULAR MEETING — FEBRUARY 26, 2003 Director Ferryman attended the February 26, 2003 meeting and reported the following: • Midyear financial report • FOG impact study • Litigation status report • OCSD to take on a proactive role in acting as regional body and training special districts • Guidance Review Committee approved 4.6 million dollars of matching -fund projects for 2003. MESA CONSOLIDATED WATER DISTRICT Director Ferryman attended the Mesa Consolidated Water District Board meeting and reported it was a very brief meeting before the Board entered closed session. +�S�,SANfTA�.G COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING s" a o:A�o�,a MARCH 12, 2003 PAGE 10 INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY ( ISDOC) President Schafer attended the February 4, 2003, ISDOC meeting and reported the following: • President Schafer chaired the meeting • New directory with 500 copies ordered for distribution • Directory will be updated every two years • March Board meeting for ISDOC rescheduled LOCAL AGENCY FORMATION COMMISSION ( LAFCO) President Schafer attended the February 7, 2003 LAFCO meeting and reported the following: • Supervisor Tom Wilson held a meeting at the Neighborhood Community Center for all county officials on the state budget. • Approval of consultants for Municipal Service Reviews to be held at the March meeting WATER ADVISORY COMMITTEE OF ORANGE COUNTY (WACO) President Schafer attended the March 7, 2003, WACO meeting and reported the following: • Report on CSDA Update • Nanofiltration: Evolving Technology for Water Treatment — Speaker Matt Lyons, Manager of Planning, Long Beach Water Department • Children's Water Education Festival — Sharon Lien, Executive Director of Blue Planet Foundation - 24 cities will participate with over 8,000 children to be held in Irvine to educate children on water. Volunteers and sponsorships needed ORANGE COUNTY COUNCIL OF GOVERNMENTS ( OCCOG) President Schafer did not attend the OCCOG meeting, but provided the agenda for the Board's perusal. is . s COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MARCH 12, 2003 PAGE 11 CHAMBER OF COMMERCE President Schafer attended the February 4, 2003, Chamber of Commerce meeting and reported the following: • Reports and updates from representatives. • Legislature bill discussion • President Schafer provided copies of bills discussed for the Board's review CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) • President Schafer attended a CSDA Board meeting in Sacramento on February 14, 2003, where they discussed Government Affairs Day to be held April 1 and 2, 2003. • Special Districts will be introduced to legislators in the capital and information offered on what Special Districts do. • President Schafer attended a Legislative meeting on February 27, 2003, in Sacramento. • A total of 1,600 bills given to the governor — CSDA is reviewing the bills and will meet again in March to continue the review. CSDA GOVERNANCE ACADEMY Ms. Revak reported that Director Ferryman would like to attend the 4 segments of the CSDA Governance Academy. Director Worthington and President Schafer expressed interest in attending the Academy. Director Ferryman motioned to approve attendance at all four sessions of the CSDA Governance Academy by Directors Ferryman, Schafer, and Worthington. Director Perry seconded. Motion carried 5 -0. CSDA GOVERNMENT AFFAIRS DAY - APRIL 1 -2, 2003 CSDA Government Affairs Day will be held on April 1 — 2, 2003 at the Sacramento Convention Center. Directors Worthington and Schafer expressed interest in attending the event. Director Ferryman motioned to approve attendance at CSDA Government Affairs Day — April 1 -2, 2003 by Directors Worthington and Schafer. Director Woodside seconded. Motion carried 5 -0. COSTA MESA ,SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING s MARCH 12, 2003 PAGE 12 SPECIAL DISTRICT INSTITUTE GOVERNANCE SEMINAR & WORKSHOP FEBRUARY 26 — MARCH _1, 2003, ATTENDED BY DIRECTOR WORTHINGTON Director Worthington attended the Special District Institute Governance Seminar and Workshop on February 26 to March 1, 2003 and provided a written report to the Board. OLD BUSINESS Director Ferryman inquired whether or not Orange County Sanitation District has contacted Staff regarding the CMSD pump stations abandonment project. Mr. Hamers noted they had not recently contacted Staff. Director Ferryman will remind OCSD. COSTAMAZING — CITY OF COSTA MESA 50 -YEAR ANNIVERSARY Mr. Hamers reported Staff is still searching for the best way possible for the District to participate in the anniversary celebration. NEW BUSINESS REGULAR MEETING TIME FOR APRIL 2003 Director Worthington reported the Wednesday, April 9, 2003, meeting date will not work for him because he will be on vacation. Director Ferryman motioned to reschedule the April regular meeting to Friday, April 11, 2003, at 11:00, with the Investment Oversight to be held immediately prior at 10:30. The Special Meeting previously scheduled to occur on April 11, 2003, was withdrawn and the subject matter will be incorporated into the regular meeting agenda. Director Perry seconded. Motion carried 5 -0. .TUNE 12, 2003, 4:00 P.M. MEETING AT COSTA MESA HISTORICAL SOCIETY Ms. Revak inquired whether the Board would like the meeting for June to be located at the Historical Society at 4:00 p.m. There will be a tour held at 3:30, prior to the meeting. • • • +4y�s ►xrr�'�a COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING "s` a lA�a,.� MARCH 12, 2003 PAGE 13 Director Perry motioned to reschedule the June 2003 meeting to June 12, 2003 at 4:00 p.m. at the Costa Mesa Historical Society. Director Woodside seconded. Motion carried 5 -0. ISDOC MEMBERSHIP 2003 -2004 IN THE AMOUNT OF $50 Director Woodside motioned to approve payment of ISDOC Membership for 2003 -2004 in the amount of $50. Director Perry seconded. Motion carried 5 -0. ELECTION EXPENSE — NOVEMBER 5, 2002 — COUNTY OF ORANGE Ms. Revak reported billing was received from the Registrar of Voters for services /supplies relating to the General Election conducted on November 5, 2002, in the amount of $24,369.05. Director Perry motioned to approve payment of $24,369.05 to County of Orange for election expense. Director Ferryman seconded. Motion carried 5 -0. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Mr. Puckett reported the compensation for attending meetings involving District business will be delivered to Board members on March 13, 2003. President Schafer suggested Staff look at acquiring shirts containing the District logo for the Board members to wear at public events. ADJOURNMENT At 7:43 p.m., President Schafer adjourned the meeting. SECRETARY PRESIDENT j, Minutes of Liaison Committee Meeting City of Costa Mesa Costa Mesa Sanitary District Mesa Consolidated Water District March 24, 2003 The Liaison Committee Meeting between the City of Costa Mesa, the Costa Mesa Sanitary District and Mesa Consolidated Water District met at 7:30 a.m. at Mesa Consolidated Water District, 1965 Placentia Avenue, Costa Mesa. Mesa Consolidated Water District hosted the meeting. Mesa Committee Members City Committee Members 0 Sanitary District Members Jim Atkinson, President Paul Shoenberger, Vice President Diana Leach, General Manager Libby Cowan, Council Member Gary Monahan, Council Member (absent) Ann Shultz, Legislative & Public Affairs Manager Allan Roeder, City Manager Arlene Schafer, President Jim Ferryman, Director Rob Hamers, Manager /District Engineer Joan Revak, Clerk of the District The Committee discussed the following topics of mutual interest. Mesa Consolidated Water District 1. Water Conservation 2. City and Mesa Landscape Class Participation 3. Interest in School District Landscaping 4. Development of Demonstration Garden at Mesa 5. Coordination of City Projects with Mesa 6. City's 50th Celebration — Mesa's Participation 7. Smart Residential Irrigation Controller Replacement Program 8. Metropolitan Water District's "City Makeover Program" Minutes of Liaison Committee Meeting March 24, 2003 Page 2 City of Costa Mesa 9. Westside Redevelopment Planning Update 10. City of Costa Mesa Budget Sanitary District 11. Orange County LAFCO New Chair — Arlene Schafer 12. Ocean Water Quality 13. Press Release on Liaison Committee 14. CostaMazing Opportunities & Public Education Public Comments No public was present. No action was taken. The meeting was adjourned at 9:30 a.m. Secretary President 11 1.1 Eliminate Sewer Spills Costa Mesa Sanitary District Year 2003 Strategic Planning Action Items • Interim FOG ordinance will be adopted at February regular meeting • Include funds for FOG program in 2003 -2004 CIP • Staff is proceeding on WDR • Apply for matching funds from OCSD • Field crew training and certification • SSMP already complete • Abandon 7 pumping stations • Examine NW Costa Mesa for additional abandonment Action: Continue expeditiously completing the above items Who: Staff When: Continuing 1.2 Institutional Issues • Consider relocating • Recent meeting with City on potential building at City Hall • Benefits and limitations of contracting with City • City studying 4th floor layout • Comparison of costs with City versus relocated costs • Benefits of relocating now • Examine building, land, and operational costs of relocation • Benefits to identity of relocating • Inability to identify District's true costs from City • Inability to reward City staff designated to District monetarily and with titles • Relocation can include continued partnership with City • LAFCO concerns • One year notice provision • Employees leaving City for District given equal or better conditions • Using reserves for building protects money from State acquisition Action: Consider all eventualities prior to taking action. Appoint Institutional Issues Committee to study factors and report to Board. Redistribute 1994 and 1995 study to Board and Staff Hold workshop to consider findings and determine actions. Rev. 04/04/2003 Who: Institutional Issues Committee When: Special meeting as soon as possible Completed: Institutional Issues Committee, appointed at February 13, 2003 regular meeting, met on March 10, 2003. Board to consider action on April 11, 2003. 1.3 Earmark Reserves • Research laws protecting earmarked funds • Determine vulnerability of reserves • Determine options for earmarking funds • Consider purchasing headquarters • Consider paying off standardized containers • Understand options and be prepared to act Who: Legal Counsel — Legal issues Treasurer — Paying off standardized containers Director Ferryman — Cost of purchasing headquarters Manager — other options When: April 2003 1.4 Safety of District Funds • Board desire for better understanding of safety mechanisms • Review thoroughness of District audit • Review District internal and external controls • Review spending policies for travel, credit cards, and reimbursements • District Investment Policy has worked well • District Investment Policy is updated yearly • No problems have ever occurred Action: Have auditor explain audit process and answer questions from Board Who: Treasurer When: July 2003 Rev. 04/0412003 2 7 r 1.5 Review Costs of Special Recycling Programs • Perform cost/benefit analysis of each program • Identify options to decrease costs but maintain programs • Determine outreach benefit • Compare special programs to overall goals of District Action: Perform analysis Who: Assistant Manager When: May /June 2003 1.6 Variable Trash Collection Rates • SRRE goal of variable rate structure • Reward those who leave out less trash • Variable rate satisfies proportionality requirement of Prop 218 • Residents still unsure of number of containers they need • Variable rate requires developing standards and monitoring field conditions • Affects billing mechanism necessitating computer reprogramming Action: Determine when implementation is appropriate Who: Assistant Manager When: December 2003 1.7 Commercial Trash Collection • Can expand service to include remaining residential and commercial /industrial • Expansion requires collection from bins and dumpsters in addition to curb side • Requires negotiation with the City • District has continued success in solid waste management • Provides simpler system for residents and business owners • Current system promotes excess traffic, air pollution, and street deterioration • Combining allows greater flexibility in recycling 50% of trash • Independent haulers loudly oppose change • Study and benefits previously transmitted to City Action: Re- introduce benefits of non - exclusive franchises to City by letter from Board Who: Board of Directors When: February 2003 Completed: Letter from CMSD President to Mayor on February 3, 2003 Rev. 04/04/2003 3 1.8 Liaison and Outreach with other Agencies • Existing Liaison Committee with City and MCWD working well • Meeting with Newport Beach held and follow -up letter sent • Results of liaison committees are beneficial • Board President is very active in many local meetings and organizations • Board President sent congratulatory letter to newly elected officials • Consider hosting meeting with sewering agencies • Consider meeting with legislators Action: Host meeting with sewering agencies and meet with legislators Who: Board President and Manager to arrange When: September 2003 1.9 Public Restrooms • Free standing, high quality, highly attractive expensive units • Currently exist in S.F., San Jose, Palo Alto, and L.A. • Benefit to businesses and public • Requires sewer, water, electricity, and phone connections • Requires sites • Usual financing mechanism is trade for advertising space • District has Facilities Revolving Fund which may be utilized • Consider City support and participation Action: Update research and study feasibility Who: Assistant Manager When: September 2003 Rev. 04/04/2003 4 y c 1.10 Public Outreach J • Extensive existing program • Two newsletters per year • Ads and press releases in newspapers and City publications • Booth at all major events: OC Fair, Public Works Expo, etc. • Distributed over 500 copies of District video "Working for You" • Attend girl scout and other local events • Giveaways • Website up and running • Always a need for more understanding by residents of District services • Improve communication of holiday trash collection schedule • Consider a class project once a year • Consider outreach to other elected officials • Consider adult outreach • Consider survey of other agencies' efforts • Check with State Dept. of Conservation for education materials Action: Expand program to include the last seven bullet points shown above Who: Staff When: At March 11, 2003 Recycling Committee Meeting and March 12, 2003 Regular Meeting, Director Worthington and CMSD Assistant Manager selected to offer schools a half hour program and a vermicomposting program. Rev. 04/04/2003 5 ase Is Public Enemy ff] Hardened grease is the primary cause of sewer line blockages and can lead to ocean water contamination. Homeowners should pour grease into a jar with a cover. The jar should be stored under the sink and then thrown out on trash collection day. Protecting our community's health by providing solid waste and sewer collection services. (714) 754 -5043 costamesasanitarydistrict.org Bottle Your Own Water TILL IT 9 HILL IT! For a safe and reliable water source, drink it right from the tap. For more information on water quality, visit our web site www.mesawater.org or call (949) 574 -1031 M WcTt�er District Dedicated to satisfying our community's water needs Attention Costa Mesa Artists! The City of Costa Mesa is now compiling a directory of all artists - painters, sculptors, photographers, designers and others - who reside here so they can be kept informed about upcoming juried and invitational shows. If you would like to be included in the directory, please complete the form below and mail back to the Cultural Arts Committee. CITY OF COSTA MESA ARTISTS DIRECTORY INFORMATION Name: Address: Phone: Zip: ❑ Professional ❑ Amateur ❑ Media Please Cultural Arts Committee Attention: Recreation Division Mail To P.O. Box 1200, 77 Fair Drive Costa Mesa, California 92628 girls inc. Inspiring all Girls to be Strong, Smart & Bold OUR MISSION Girls Incorporated of Orange County is committed to helping girls develop the values and skills they need to become confident, productive and responsible adults. PROGRAMS OFFERED After school Program: For girls ages 5 to 12 at the Girls Inc. Center in Costa Mesa. (Transportation provided from selected schools). Summer Program: Offered for girls in Pre - K to 6th grade at the Girls Inc. Center. Daily program from 7:30 a.m. -6:00 p.m. Includes: weekly excursions, Girls Inc. classes and FUN! Space is limited, so reserve your spot now. Teen Programs: On local middle and high school campuses - programs help girls develop the values and skills to become Strong, Smart and Bold achievers. Eureka! Summer Program: July- August is open to girls who will be in the 7th, 8th or 9th grades in Fall 2003. (Call for application & selection process). Contact Girls Inc. for exact dates, times and locations, or visit our website at www.girisinc-oc.org. Girls Incorporated® of Orange County, 1815 Anaheim Ave., Costa Mesa, CA 92627, 949 - 646 -7181, girls @girlsinc- oc.org I j foss Mesa' , creatio jv 13 Recommendations for Costa Mesa Sanitary District Residential & Business a -waste # Goals Angie Buyayo UCI Undergraduate Intern April 3. 2003 Recycling Committee Meeting Cl \ISD Board of Directors Overview • Current Environment i Options • Strategies . Costs • Case Studies i Summary . Recommendations A. Perceived CMSD e -waste Goals 1 Identify, Comply with & Enforce (ICE) e -waste regulations 2 Divert all e -waste from landfills 3. Create a green electronic procurement environment, beginning with government (District & City) Energy & Materials Efficiencies Toxics Reduction 4. Public Education- Sustain e -waste practices 5 Support Producer Responsibility Current Environment (Settings) --9 Key Questions in Electronics Recycling" Resource Recycling (Feb. 2003) t. Is a national stewardship system on the horizon? 2. Will state legislators move forward? 3 Is industry changing its view? a Should reclaimers hope for continued political tension? Is business improving? 6 Are volumes sufficient? The market varies by product Is the export market changing? �4 Is the prison issue next? CA Directives and Guidance ' 1. Regulations 2. CIWMB Directives - Expected Law in June 2003 3. Governor Davis Objectives: • Incentives to design less toxic. more recyclable t products • Don't send CA e -waste to underdeveloped nations. • Compel industry to solve this problem. • A comprehensive and innovative state law Partners with product manufacturers Establishes recycling targets Provides for safe recycling and disposal of e- waste. a IWMD HHWCC Collection Status Publicize FREE residential e -waste collection However. IWMD has: 1 4. a. Issues with CRT disposal b. No infrastructure to handle all e -waste c. Desires "for more private industry infrastructure to be developed and working together with solid waste haulers and facilities directly" IWMD (Tim Grogan), March 14. 2003 a 2 a. OC Household Hazardous Waste Collection Centers - Recommend more types of e -waste to be accepted - e- retailer /manufacturer offer rebates /coupons to users CMSD Options Residential Pick -up Collection Curbside, Inc. with HHW`. - No additional stop charge, free e -waste pickup. 5 items or less (CRT /CPU /kbd /mouse /printer) -OR- - No additional stop charge. Resident pays S10 co- payment. unlimited e -waste w /out HHW - Resident pays for both stop charge (transport / disposal) (S30) and e -waste item(s) cost -OR- - District pays balance of stop charge. resident pays 510 co- payment and per e- itern(s) cost Permanent Drop -off Collection 3. Commercial a. E- Recycling option Paramount, LA County IV ,� 71 *4. E-retaller/manufacturer partnerships a, Pilot Program advertise to retail business about the program participation incentives offer to all stores in locality (Best Buy, Gateway) - choose 1 or 2 retail stores for pilot program - set program, observe Outcomes to determine if successful - if successful, offer coupon program to all local retail :44 stores 5. Special Event Drop -off Collection a. Collection event at a HHWCC. 8 - collaborate with local governments - available to collect e -waste that are usually not accepted b. Community e- recycle day -Earth Day: April 22 - America Recycles Day: Nov. 15 A P c. Scheduled basis event(s) - create urgency by setting time constraints and limited offer - allow only residents that called within certain time period to participate Ex. City of Diamond Bar with Curbside 6. Alternatives to Curbside (competitors) websites 1. HMR, LA (specialize in de- installing, collecting, recycling and remarketing used, overstocked or obsolete electronic equipment) 2. Complete Recycling Services (CRS,). Garden Grove s: Preferred 3. Silicon Salvage, Anaheim (computer and electronic scrap and surplus dealer. Buy and sell a wide variety of computer and electronic equipment. Help companies recover value from their obsolete equipment) 4. E- Recycling. Paramount Preferred 7. Reuse (donation to non - profit or charity groups). a. Not preferred - Limited Capacity Goodwill Industries of Orange County - collects and refurbishes computers and peripheral equipment then sold at value prices - Pentium and better computers t 8. Shipment Collection /Product Take Back (PTB) programs. a. Hewlett Packard product recycling b. Dell Exchange program c. Gateway "Recycle or Donate you Old PC" d. IBM Recycling Programs Strategies 1. City of Costa Mesa concurrence coordination a. Begin course of action within city government. Implement e -waste inventory at civic center. b. Work with elected officials in a community recycle day /event: community outreach 2. Public Outreach . a. Educational campaign - Why do we recycle e- waste? Importance Incentive - Ways to Outreach: tentative brochure Newsletter advertising PSAs CMTV 74 Update CMSD website with e -waste links and info :r survey • C] u rollecIon Processor RaW COmMel Mamals Fee Charged al Sut,Alzed D Lake & Processing a Him, Of MultIpal Gperalloncost Materials purchase Progranh rnaWelIngcost Fee fol Me 01 5 tlASpttedD 'p Transportarkn serdce -E61 Programs Fee sulsidludbf SuDskllied6 Adnlnlslrallon { EM s to %orrsurner Take and certunodIN managenienl Rencler bad Program COO I F4 6,955 pounds of computer drives. 6,518 pounds of televisions. 5,876 pounds of monitors. 3,300 pounds of miscellaneous scrap (for example, modems, and stereo equipment). 2,005 pounds of printers. 1,560 pounds of microwave ovens. 400 pounds of cables, mice, keyboards, and other small parts. All materials were stacked and palletized, plastic - wrapped, and transported by HMR USA to their facility in Gardena. Working computers (Pentium and above) were provided to the prison system for repair and donations to schools. Everything else was dismantled and recycled. CRTs were shipped to HMR's monitor - crushing machine in South San Francisco. k HMR claimed that nothing was landfilled. 2. In 1998 -99, San Francisco and Alameda County worked with the Materials for the Future Foundation (MFF) to develop four electronic collection and recycling pilot programs. All consumer electronics (or "brown goods ") that plug in or operate on batteries were collected. The pilot programs collected materials from residential curbside collection programs, residential drop -off programs, and a public disposal area. The MFF pilot program was overwhelmed by old TVs and CRT monitors. The pilot paid $500 per ton for CRT recycling. Overall, these pilot programs cost communities $750 to $2,000 per ton to collect and recycle electronic waste materials through these approaches. MFF concluded that residential collection programs should target products that have a higher recycling value (for example, computer components), or products with similar materials to achieve greater economies of scale. ' Pros and Cons Analysis ,ll Special Drop Off Collection promotes public can be costly for district, j low = low - - - - -� Collection Method Pros Cons � leaders can get involved lUri-OCt. conflicts with I Residential Pick -up convenient for senor can be expensive w /out shared. larger base of citizens and disabled, no HHW. potential theft, � residents to participate transpo tabor, easy for operations: costs can be `ow up front costs, short residents. = more higher than other models a time frame but h�g'n participation collection amourt i Reuse (donations) Permanent Drop off (HHWCC) can be free? (for limited to selected e- residents), year -round waste, not effective for i Shipment collection /PTB some programs offer collection. conver.!ent for every comrn +ruty s¢ie, 1 k, rebates /coupons *+ost residents, need for staff may Alternative recyclers seek economies of scale are Increase operational alternatives /secondary poss.bie? costs (for county) Commercial Recycling More options-4 greater Less options-4 greater amounts of e -waste Arnounts of a -waste with collected correctly nappiopnate!unsustainable disposal -- E- retailer /'manufacturer benefits both district and won't work if not partnerships businesses, low up sufficiently advertised, fronVoperat!onal costs for retailer's participation collection agency, cruc,ai, retailer ay not promotion of retailer ire able to collect ers�IrE high v.s!bility ofoi rnation on „- ;:iart,cpaUon, logistical Issoes j - ------ __ ------- i Pros and Cons Analysis cont'd 1 Special Drop Off Collection promotes public can be costly for district, j low = low Event participation. community publicity leaders can get involved lUri-OCt. conflicts with panning of events is other events, resident s shared. larger base of unfamiliarity with site. residents to participate potential urequal !_ `ow up front costs, short distnbLitlol of costs time frame but h�g'n among communities' collection amourt i Reuse (donations) lower costs transportation fees. united to certain items i i Shipment collection /PTB some programs offer I can be costly to i programs I rebates /coupons participants j Alternative recyclers seek distant locations. alternatives /secondary imited services options j Recommendations The Next Step - Residential 1. Survey District residents. Advertise CRT ban, e -waste options; emphasize HHWCC. 2. Assess residential survey results; Create e- waste initiatives responsive to needs. The Next Step - Commercial 1. Advertise businesses e -waste options. Overall: Set the example for both as a pro- active local government entity. Snmman- Collections Options 1. Residential Pick -up Collection 2. Permanent Drop -off Collection 3. Commercial 4. E- retailer /manufacturer partnerships 5. Special Event Drop -off Collection 6. Reuse (donation to non - profit or charity groups) 7. Shipment Collection /Product take back (PTB) programs 8. Alternatives to Curbside (competitors) Strategies 1. City of Costa Mesa concurrence / coordination 2. Public Outreach Recommendations The Next Step - Residential 1. Survey District residents. Advertise CRT ban, e -waste options; emphasize HHWCC. 2. Assess residential survey results; Create e- waste initiatives responsive to needs. The Next Step - Commercial 1. Advertise businesses e -waste options. Overall: Set the example for both as a pro- active local government entity. Container Replacement Data Summary Approval Date Address Ticket # Reason for Exchange Size Received Size Requested Current # Cans Ori DIv PP 9 q 9 ry 1ACN S EXC DB Other New DC 1 1 30 60 Totals 1 01 3631 2831 261 21 3 4 61 21j 1 j 22 353 Container Replacement Reasons KEY A C N ADDITIONAL CAN NEEDED S STOLEN DB DAMAGED BAR EXC EXCHANGED Other Other New New DC DAMAGED CAN CMSD Staff: 714. 7545043 04/09/2003 New Rqstd Size Rcvd 30 60 90 30 60 90 12 305 93 11 290 87 M P03 -083 COSTA MESA SANITARY DISTRICT DEPARTMENT OF FINANCE MARC R. PUCKETT INTEROFFICE MEMORANDUM DIRECTOR OF FINANCE TO: SANITARY DISTRICT BOARD OF DIRECTORS FROM: MARC PUCKETT, DISTRICT TREASURER COPY TO: ROB HAMERS, DISTRICT MANAGER DISTRICT STAFF DATE: APRIL 2, 2003 SUBJECT: STATUS OF STATE BUDGET DEFICIT DELIBERATIONS Please find attached a copy of the Priority Focus newsletter published by the League of California Cities. Information outlining the current status of the State's budget deficit elimination deliberations are • summarized in the newsletter. At this point, it is not expected that there will be any significant movement towards resolving the State's budget difficulties until after the Governor's "May revise" of the budget is issued the first week of May. After that date, it is believed that discussions will begin in earnest to develop strategies to address the State's budget deficit. Further, it is believed that in conjunction with the release of the May revise the State Treasurer and Director of Finance will announce that the Vehicle License Fee has been triggered and the VLF will return to 1998 levels. If you have questions or need additional information feel free to contact me directly. MA C R. PUCKETT Director of Finance Attachment • Issue #12 -2003 Page 2 LEGISLATORS, LOBBYIST BRIEF LEAGUE POLICY COMMITTEE MEMBERS 2003 CALIFORNIA CITIES HELEN PUTNAM AWARD FOR EXCELLENCE Page 3 LOCAL UPDATE Page 4 DRAFT OF PHASE II STORM WATER PERMITS RELEASED STRATEGIC STATEWIDE SUMMIT Page 5 TWO HOMELAND SECURITY GRANT PROGRAMS HOMELAND SECURITY SUPPLEMENTAL FUNDING PROPOSED Page 6 THE BUDGET STORY - SOME PRESS QUOTES Page 9 LEGISLATIVE BILL SUMMARIES SPECIAL MEMBERSHIP MEETING CALLED FOR MAY 15 The Officers of the League's Board of Directors decided this week to call Hot Bills a Special Membership Meeting for League members, to be held May 15 in Sacramento immediately following the two -day Legislative Action Days Act Now conference. For more, see page 4. ■ ■ ■ , AB 136 (Kehoe). PROGRESS SEEN IN STATE SSTP PARTICIPATION ■ Workers' Compen- Work ■ Disability: The State of California inched towards a role in national discussions about . Leave Of Absence. a multistate, streamlined system for sales and use tax collection and adminis- ■ Status: Oppose. tration with a March 26 vote by the California Board of Equalization (BOE) to ■ become an "observer" in the Streamlined Sales Tax Project (SSTP), and the AB 507 (Hancock). same day passage of SB 157 (Bowen and Alpert) by the Senate Revenue and ■ Public Safety Taxation Committee. The Bowen - Alpert bill would require the state to become a "voting" participant in SSTP. For more, seepage 7. ■ Officers: ■ Employment. 000000**00000006000 Status: Oppose. STATE BUDGET UPDATE B 1051 ■ AB 1051 Several informational hearings were held this week on state budget pro- ■ dbe r Ca i C p posals. The Senate convened hearings of the full budget committee to discuss the impacts of the 2003 -04 budget proposals made by the Governor and the ■ tal Facility i= ■ Senate Republican Caucus. Senate Minority Leader Brulte kicked off the Status: Support. hearings by reviewing the Senate Republican Caucus proposal. As part of his review, Brulte reminded the committee that the state should ■ work to become "partners" with local government, and to not blame local : government for state problems. While he believes that local government was unfairly targeted in the Administration's budget proposals this year, he reiter- Want more details on ated the Republican Caucus' belief that it's all right to ask local government to these and other bills? share in the solution. As a result, in the Senate Republican Caucus budget Log on to the League of proposals, local governments are being asked to provide an unallocated $500 California Cities Web site million in revenue a year, for three years, to help the state through this fiscal at www.cacities.org and crisis. At the same time, Brulte asked for bipartisan support for a constitutional click on Legislative amendment protecting local government revenues from future state raids Advocacy. unless 80% of the legislature is in favor of the revenue shifts. For more, see page 8. Page 2 LEGISLATORS, LOBBYIST BRIEF LEAGUE POLICY COMMITTEE MEMBERS 2003 CALIFORNIA CITIES HELEN PUTNAM AWARD FOR EXCELLENCE Page 3 LOCAL UPDATE Page 4 DRAFT OF PHASE II STORM WATER PERMITS RELEASED STRATEGIC STATEWIDE SUMMIT Page 5 TWO HOMELAND SECURITY GRANT PROGRAMS HOMELAND SECURITY SUPPLEMENTAL FUNDING PROPOSED Page 6 THE BUDGET STORY - SOME PRESS QUOTES Page 9 LEGISLATIVE BILL SUMMARIES • LEGISLATORS AND FIREFIGHTERS' REPRESENTATIVE BRIEF LEAGUE POLICY COMMITTEE MEMBERS Assembly Member Darryl Steinberg (Sacramento), Senator Tom Torlakson (Antioch) and California Professional Firefighters' lobbyist Brian Hatch briefed members of the League's Revenue and Policy Committee in Sacramento today about their key legislative proposals that could change the mix of local revenues. The three participated as League guests, invited to explain their respective proposals and respond to questions and concerns raised by policy committee members. The bills discussed were: AB 1221— Steinberg and Campbell. The bill would reduce by half the amount of the Bradley -Burns sales tax that local governments receive and replace it on a dollar -for- dollar basis with property taxes. The intent of the measure is to reduce the dependency of local governments, particularly cities, on sales taxes to provide greater incentives through the property tax for housing and other non - retail development. SB 114 — Torlakson. This bill would prohibit local agencies from offering any financial incentive to an automobile dealer or big box retailer to relocate to their jurisdiction from another location in the same market area. AB 1690 — Leno. This bill seeks to authorize qualified cities to impose a personal income tax with a majority vote of their citizens. To qualify, they would first need to create a public safety finance agency, and agree to shift a dedicated portion of their sales tax revenues to support this new agency if a personal income tax is adopted. The public safety finance agency would support public safety needs as defined in the bill. The appearance by of each of these speakers gave members of the :Revenue and Taxation Committee a chance to ensure the League's concerns were understood, and to hear the sponsors' and authors' responses to them. All three bills generated many questions and lively discussion. Committee Chairman Jim Madaffer, a member of the San Diego City Council as well as the League board of directors, presided over the session. The League board will consider policy committee recommendations on these and other measures when it meets in Sacramento April 4 -5. PAGE 2 1PRIORITY FOCUS 2003 CALIFORNIA CITIES HELEN PUTNAM AWARD FOR EXCELLENCE CALL FOR ENTRIES: DEADLINE MAY 16 Cities with innovative programs in a wide range of categories are encouraged to compete for awards through the League's prestigious Helen Putnam Award for Excellence program. The call for entries for the program was distributed on March 6 to more than 3,800 department directors. The Helen Putnam Award recognizes out- standing achievement and innovation by cities whose contributions to community residents and businesses have resulted in lower costs or more effective delivery of services. Particular attention and credit is given to entries specifically advancing the League's 2003 strategic priorities: Protect city services and revenues from state budget cuts • Expand the supply of housing in California in balance with the location of jobs • Restore public confidence in government, particularly city government Awards will be given for programs and projects in the following areas: Effective Advocacy • Housing Programs and Innovations • Enhancing Public Trust, Ethics, and Community Involvement - Intergovernmental Relations and Regional Cooperation • Community Services and Economic Develop- ment • Planning and Environmental Quality • Internal Administration • Public Safety • Public Works, Infrastructure, Transportation Additional information and applications are available on the League's website at http: // www.cacities.org /helenputnam. Visit the League's Official Web Site-- www.cacities.org 0 LOCAL UPDATE The following are a few of the activities carried out by city officials and others under the "LOCAL" banner (Leave Our Community Assets Local" — the coalition jointly sponsored by the League, the Califor- nia State Association of Counties, and the California Special Districts Association. The coalition now includes more 533 members from throughout the state, including 27 companies, 151 individuals and 355 organizations. Grassroots Activities - The League's Los Angeles County Division will host Assembly Budget Committee member Rudy Bermudez at its April 3 meeting next week. Bermudez represents southeast Los Angeles County and a portion of Orange County. A former council member in the City of Norwalk, he is cur- rently investigating possible reforms to the state -local fiscal relationship. He recently said, "The legislature is looking for solutions that will not only help jumpstart our economy locally and statewide, but create a structure for long- lasting stability for local governments." - City officials from the League's East Bay Division will join with LOCAL coalition partners March 28 in a meeting to discuss budget concerns with Assembly Member Guy Houston (San Ramon). Participants will include: Sue Rainey, Walnut Creek Council Member, John Gioia, Contra Costa Supervisor, Steve Krull, Livermore Police Chief and 3rd VP of the California Police Chiefs Association, Thomas Soberanes, Walnut Creek Police Chief, Ed Kelly, Assistant and acting Elk Grove Police Chief, John Sweeten, Contra Costa County Administrator, and Stacey Wells, League of California Cities East Bay & LOCAL representative. - League Revenue and Taxation Lobbyist Jean Korinke will team with Pinole Assistant City Manager Belinda Espinosa in a presentation on the state budget at a meeting April 4 of the League's Latino Caucus in Salinas. Their presentation will cover basic mechanics of the budget, the impacts of programmatic reductions tied to statutory require- ments and mandated categorical funding and how actions taken at the State Capitol affect decisions local governments make for funding city services and programs. - A group of League Peninsula Division city officials and county supervisor will meet March 28 with newly elected Assembly Member Leland Yee (San Francisco). Discussion will focus on how the budget crisis will affect services in their cities /county, and on establishing a working relationship between the Division, the Assembly Member and his staff. As- sembly Member Yee is one of three legislators to assume in a leadership position in his freshman year. LOCAL participants at the meeting will include: South San Francisco Mayor Pedro Gonzales, Daly City Vice Mayor Sal Torres, Los Gatos Mayor Sandy Decker, Council Members Lee Panza (Brisbane) and Dave Bauer (Belmont), City Managers Mike Garvey (San Carlos) and Debra Figone (Los Gatos) and San Francisco Supervisor Jake McGoldrick. - The Marin County Council of Mayors and Councilmembers invited Marin County and School officials to participate in a collective brainstorming session this week on to identify ways to minimize the impact of the state's budget crisis on local services. League Executive Director Chris McKenzie was an invited participant, along with Pat Leary, Legisla- tive Representative for the California State Association of Counties and the Marin County Superintendent of Schools. - LOCAL partners enlisted by the League's Inland Empire Division in the fight to protect local services will join with city officials in making a presentation before an audience of city and county elected officials and senior staff at the San Bernardino City County Conference. The subject: "Call to Action 2003 - Using our Clout ". "With our partners in place, our concern is to keep a high profile for this strong team, and work together to educate legislators whose vote will impact the future of the local services," reports League Regional Representative Nancy Cisneros. "All interests in the state facing cuts are in Sacra- mento working daily to get their message out. Our coalition wants to be just as visible, and utilize this great network of partners to communicate our strong message about the importance of protecting local Continued on Page 7 Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS /PAGE 3 0 WATER BOARD RELEASES DRAFT OF STRATEGIC STATEWIDE SUMMIT PHASE II STORM WATER PERMITS The State Water Resources Control Board has just released the revised draft NPDES General Permit for Discharges from Small Municipal Separate Storm Sewer Systems, also known as Phase 11 Storm Water permits.' The revised draft permit and accompanying documents are available on the State Water Resources Control Board's www.swrcb.ca.gov /stormwtr under "Hot News ". The list of cities covered under the Phase II permit are included in Attachments 1 and 2 on the above site. According to information provided by the Board, comments on the draft permit will be accepted through 5:00 p.m. April 21. The Board is expected to adopt the permit at its meeting on April 30. City plans for comply- ing with the permit (known technically as "Notice of Intent") will be due on July 29, 2003. The League is hoping to offer workshops for impacted cities in conjunc- tion with CSAC, the Special Districts Association, the State Office of Planning and Research and the Local Government Commission shortly after the permit is adopted by the Board. We will be working with Board staff to provide cities with information they need in order to prepare and submit the NO1. Questions should be directed to Jarma Bennett at (916)341 -5532 or by email at bennj @dwq.swrcb.ca.gov, the staff person most knowledgeable on this subject. You may also contact Pamela Barksdale, Chief of the Municipal Storm Water Unit at (916) 341 -5280 or Bruce Fujimoto, Chief of the Storm Water Section at (916) 341 -5523. SPECIAL MEETING from page 1 • • a • • • • • "This is a year without precedent," said Oak- land City Attorney John Russo, President of. the League. "The magnitude of the state's fiscal crisis could well open the door to consideration of major structural reforms affecting the state -local fiscal relationship. In fact, there are so many critical state budget and fiscal reform issues that could be taken up by the legislature this year that we believe it is essential to involve our membership in shaping the League's positions in key areas." Cities will receive additional information from League about the Special Meeting in the near future, including the rules that will govern the meeting and a request that each city appoint a voting delegate to represent them. PAGE 4 /PRIORITY FOCUS APRIL 16 —17 IN MONTEREY Elected local officials and community leaders concerned with military bases are encouraged by the California Technology Trade and Commerce Agency's Office of Military Support (OMS), to participate in OMS' second Strategic Statewide Summit, to be held April 16- 17 at the Doubletree Hotel in Monterey. Formerly known as the Office of Base Retention and Reuse (OMBRR), the OMS will hold the summit in conjunction with the federal Department of Defense' Office of Economic Adjustment. It will reconvene key stakeholders from all aspects of California's defense community. The agencies will report the findings of five state- wide workshops which considered four strategic issues related to military bases and their surrounding commu- nities: encroachment, economic impact, partnerships between bases and communities and legislative and policy issues facing the California military bases. For more information and to register contact Dr. Ron Willis at (707) 935 -9638 or email at rcwillis2001 @yahoo.com. Registration for the confer- ence is $100 plus lodging. REGISTER NOW! LEGISLATIVE ACTION DAYS MAY 14 &15 AT THE SHERATON GRAND HOTEL, SACRAMENTO • Join with hundreds of others concerned about protecting local services. Visit the LOCAL website to register (www.calocal.org). • Contact the League regional representative for your League division for more information and to schedule an appointment with your legislator. Don't know how to contact your regional rep? Visit the Issues and Advocacy - Grassroots Advocacy Section of the League's website (www.cacities.org / grassrootsadvocacy). isit the League's Official Web Site• - www.cacities.org • FEDS ANNOUNCE APPLICATION PROCESSES FOR TWO HOMELAND SECURITY GRANT PROGRAMS The Department of Homeland Security (DHS) has announced the FY 2003 application processes for two homeland security programs: Assistance to Firefighters Grant Program and the State Homeland Security Grant Program ( SHSGP). The fire grant program permits fire departments to apply directly for grant funding, while the SHSGP requires cities to apply to the states for funding. Assistance to Firefighters Grant Program • $750 million was provided in FY 2003 (up from $360 million in FY 2002) for the Assistance to Firefighters Grant Program. The online application form is available on the web at www.usfa.fema.gov. Fire departments will have until April 11, 2003 at 5 p.m., to complete and submit their applica- tions. Following the submission of applications, a peer review process will begin and continue through May. Funds will be distributed to successful appli- cants no later than July 2003. • Fire departments may submit an application for any one of four program areas and include as many activities within that one program as necessary to meet department needs: Fire Operations and Firefighter Safety Program, Fire Prevention Program, Emergency Medical Services Program, and the Firefighting Vehicles Acquisition Program. • The law creating this program requires a 30% match for cities with a population over 50,000, and a 10% match for cities with a population under 50,000. Fire departments may not receive grants in excess of $750,000 per grant. The law requires that both career and volunteer agencies receive funding, with career departments competing for up to 45% of the available funding, and volunteer and combination departments competing for at least 55% of the available funding. No more than 25% of the total funding can be used for vehicle purchases. $45 Million for California in State Homeland Security Grant Program applicants, and are required to provide 80 percent of the funds allocated for equipment purchases in this program to local units of government within 45 days of the state grant award date. • California will receive a total allocation of about $45 million, broken down into $31.6 million for equipment, $7.9 million for exercises, and $3.2 million for plan- ning. • The deadline for state application is April 22, 2003. Within 7 days of submission, a review will be com- pleted and state representatives will be notified of the status. Grants are to be available to the states within 21 days of that decision. Finally, states will have 45 days to sub - allocate the required 80 percent of the equipment funding. The application form is available at www.ojp.usdoj.gov /fundopps.htm. PRESIDENT PROPOSES $2 BILLION SUPPLEMENTAL LOCAL FUNDING FOR HOMELAND SECURITY On March 25, 2003 the President announced his $74.7 billion wartime supplemental appropria- tions request to Congress, which would provide funding for homeland security, including: • $2 billion through the Department of Homeland Security for state and local terrorism prepared- ness and prevention. Of this total: - $1.5 billion would be for first responder grants to the states for equipment, training, exercises and planning. States must allocate 80% of these funds to local governments. • $450 million would be for states to enhance security at critical infrastructure facilities as part of Operation Liberty Shield. States must allocate at least one -third of these funds to local govern- ments. • $50 million would be for protection or preparedness of major metropolitan areas at high risk, as determined by intelligence analysis and the Secretary of Homeland Security. • The funding for SHSGP is being provided for equipment, acquisition, exercise, training and plan- The President has requested that Congress ning and administration. States are the only eligible complete the supplemental by April 11. Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 5 • • THE BUDGET STORY -SOME PRESS QUOTES Editorials, Columns, Opeds, Letters to the Editor Sacramento Bee 3/26/03, Other view, Oped by Senator Rico Aller: On car tax, Davis and Westly shouldn't try to deceive voters. "The likelihood that the governor's opinion (on the VLF) will be challenged in court, and that the courts will uphold the constitution and overturn the decision, is great. But, if they don't, you can bet your bottom license sticker there will be a ballot initiative to undo it. I have no doubt that voters will express their view on this issue at the ballot box." SD Union Tribune 3/26/03, State budget gap: Disciplined borrowing may be only way out. "California's budget crisis is so severe that a bipartisan plan to borrow billions of dollars and stretch out the payments over several years should be taken seriously." LA Times 3/23/03, EDITORIAL, Swallowing Hard on Budget. "Assembly Speaker Herb Wesson (D- Culver City) and Senate President Pro Tern John Burton (D -San Francisco) are moving toward consensus on a proposal for fewer cuts in public health coverage and reinstatement of the 'car tax,' the vehicle license fee..." "Because speed is essential, Davis should immediately trigger reinstatement of vehicle license fees, raising an additional $4 billion a year and maintaining the state commitment to local government." North County Times, 3/25/03, A possible way out of budget fiasco found. "A bipartisan group in the Assembly may have hit upon an approach to solving California's budget mess. It's far from ideal, but it's a lot better than what our legislators have come up with so far, which has been half- truths, posturing and bluster... "What's encouraging... is that for the first time this year members of both parties have coalesced behind a realistic plan.... Ugly the plan may be, but it's no uglier than the reality facing California." Sacramento Bee 3/25/03, Dan Walters: Iraq war may be a memory by the time state solves budget crisis "As the deficit numbers and the uncertainties mount, the politics become more complicated and a way out — an exit strategy, as it were — be- comes more elusive. Conservative Republicans and liberal Democrats see this as the mother of all budget battles, one whose outcome will set the tone on spending and taxes in California for years to come. It's entirely possible not only that Califor- nia will begin a new fiscal year on July 1 without a budget, but a new calendar year on Jan. 1 as well. And no one really knows what form this crisis will take." News Articles The Marin Independent Journal, 03/27/03, State seeks help with cutting budget. "California's legislators desperately need the suggestions of local community leaders and officials on how to deal with the state's burgeoning budget deficit. That was the message last night from representatives of the League of California Cities and the California Association of Counties at a meeting of the Marin County Council of Mayors and Councilmembers, several supervisors, local school board presidents and school superinten- dents at the San Rafael Community Center. "Chris McKenzie, the League of California Cities' executive director, said officials fear the deficit will have ballooned from $35 billion to $40 billion by May, when Gov. Gray Davis' revised budget is issued. 'Cuts that need to be made are not being made,' McKenzie said. 'The problem is not getting smaller; it's getting bigger. "' LA Times, 3/27/03, Tax Reform Push Gains Momentum in Crisis. "As California struggles with a historic budget shortfall, a growing number of lawmakers are hoping the crisis finally nudges the Legislature into untangling a state tax system that they argue shortchanges many large coun- ties, including Los Angeles, Orange and San Diego." Continued on Page 8 PAGE 6 /PRIORITY FOCUS Visit the League's Official Web Site -- www.cacities.org • • LOCALfrom P a 9 e 3 ................................................. services." Presenters for the Inland Empire Division will be Division President Janice Rutherford, Mayor Pro -Tem of Fontana, and Division Legislative Task Force Chair Lee Ann Garcia, Mayor, City of Grand Terrace. Also presenting will be guest speakers Melissa Omelas representing Team- sters Local 911, and Charles Rangel representing Young Homes. Both are LOCAL partners in the IE region and will share their perspectives on the advocacy efforts to protect local services. Press Coverage This Week Editorials, Columns, Opeds, Letters to the Editor Los Angeles Times "Swallowing Hard on Budget' — On VLF Riverside Press Enterprise "California's budget blahs" North County Times, "A possible way out of budget fiasco found" — Mentions VLF San Diego Union Tribune, "State budget gap: State budget deficit bigger than expected" — Mentions VLF Sacramento Bee Daniel Weintraub Column, 'When a state controller goes begging on Wall Street" Sacramento Bee Dan Walters Column, "Iraq war may be a memory by the time state solves budget crisis" — Discusses politics surrounding VLF over the past few months Sacramento Bee Op -ed by Senator Rico Oiler, "Other view: On car tax, Davis and Westly shouldn't try to deceive voters" News Stories Sacramento Bee, "Efforts underway to reduce vote needed to pass state budgets" — AP Story ran in several papers Sacramento Bee, "New controller on the hot seat" — Mentions issue of who is responsible for pulling VLF trigger San Francisco Chronicle "Car fee hike to hit firms hard; But state unlikely to back down on tripling cost." Contra Costa Times "Budget dissent in Legisla- ture blocks benefits" — Has quote from Wesson describing the VLF as part of the budget solution. The Marin Independent Journal, "State seeks help with cutting budget'— Quotes from Pat Leary, CSAC Legislative Representative and Chris McKenzie, League Executive Director Los Angeles Times, "Tax Reform Push Gains Momentum in Crisis" — Quotes from Pat Leary, CSAC Legislative, Representative Los Angeles Daily News, "State budget deficit bigger than expected" —AP story, ran in several papers SSTPfrom page 1 ...... ••••••••.... The League's board of directors voted in February to support California's participation in the SSTP Project, out of concern for the millions of "lost" tax dollars that California and local govern- ments experience on remote sales of tangible property where the retailer is not required to collect sales tax from the consumer. While consumers are obligated to pay the tax and remit it to the state, in reality few do. The SSTP has gained support of more than 30 states. Current SSTP members have created a series of "articles" that provide the definitions for a potential "streamlining" of sales and use tax appli- cation nationwide, which are presently being considered by many states. Work continues on further refining these and defining additional articles to be considered by the state. It is critical that California have a "seat at the table" for discus- sions on the final articles to ensure our unique interests are considered and incorporated. This is just the first step. In order for California to conform to the articles proposed by SSTP, legislation would need to be introduced and full discussion would begin. Ultimately, Federal legisla- tion would be needed to ensure conformity through- out the United States. This is clearly a long -term fiscal reform initiative, but the time to get involved is now and we applaud the efforts of the BOE and Senators Bowen and Alpert in this regard. Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 7 • DON`T MISS THE APRIL ISSUE OF BUDGET UPDATE 1 • • WESTERN CITY MAGAZINE: ANEW SERIES ON THE STATE -LOCAL FISCAL RELATIONSHIP • Why the State's Budget Crisis Could Be a Golden Opportunity • Reforming the State -Local Fiscal Relationship • State Intrusion Creates Fickle Fiscal Future for Cities • Navigating California's Budget Process Plus - Online Advocacy Tool Makes Communicating With Legislators Easier Than Ever Plus - Continuation of the Western City series on Ethics: When the Best Person for the Job is a Relative Matter All this, plus information on city jobs and businesses that provide services to cities. For over 75 years Western City has been the best source of information for California city decision makers. For subscription infor- mation call: 916.658.8223, or visit the Western City Web site at www.westerncity.com. Our Mission Restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians. PAGE 8 /PRIORITY FOCUS from page • • • • • • • a Concurrent with this and other hearings was news from the Legislative Analyst's Office (LAO) that the budget deficit has grown by $1.3 billion since earlier estimates were released. The leading causes for this growth are the inaction on the Vehicle License Fees ($250 million per month), the rejection of several health care cuts that had been proposed by Governor Davis ($51 million per month), and the receipt of lower revenues than projected by the state. In addition, the LAO suggests that the time to make some of the cuts proposed by Governor Davis has come and gone, and that the benefits can't be recouped. The next formal estimate on the status of the State Budget will be released with the Administration's "May Revise" budget due May 141. QUOTES from page 6 .............. LA Daily News 3/26/03, State budget deficit bigger than expected. "An independent analy- sis of the midyear budget cuts signed into law last week shows that the state will end this fiscal year with a still - growing deficit of at least $8.2 billion — almost double the amount Gov. Gray Davis had hoped to carry into next year.... (Legislative Analyst Liz) Hill's report surfaced Tuesday as a key state Senate committee examined the budget plan proposed by Republicans... the Democrat - dominated Senate Budget Committee gave the plan a chilly reception..." Contra Costa Times 3/25/03, Budget dis- sent in Legislature blocks benefits. "In a preview of politics to come over the state budget, Republicans in the California Senate withheld support Monday for a favored plan to borrow the money needed to pay a pension obligation. The idea to issue $2.2 billion in bonds to pay for retire- ment benefits for teachers and state workers was thought to be one of the few proposals embraced by both Democrats and Republicans. But, GOP leaders said they are unwilling — at least for now — to accept the proposal as a single piece of legislation outside of a larger budget agreement." Visit the League's Official Web Site-- www.cacities.org 0 • The following are summaries of just a few of the legislative bills that are currently being acted upon by the League of California Cities. For more information about these and other bills, please visit the League website's new "Issues and Advocacy" page (www.cacities.orcg/ issuesandadvocacy) — a one -stop location to access information about legislation, policy issues and related developments. You can track information on bills ( www. cacities .org /legislativesearch), locate legislators and legislative committees, send letters to legislators or the media through the online Advocacy Center, research League policy positions, access useful related links, and much more. TRANSPORTATION AND PUBLIC WORKS AB 1333 (Spitzer). Mechanic's Liens. Design Professionals. AB 1333 permits a contract between a design professional and a consultant of the design professional to contain an enforceable pay -if -paid provision if mechanics' lien rights are not available. Staff: Natasha Fooman, Status: AsJud; Hrg -4/1, Position: Review and Comment. AB 453 (Yee). Public Works Contracts. Compensation of Contractors. AB 453 provides that when a project for the construc- tion, alteration, repair or improvement of any structure, building, road or other improvement is competitively bid and a protest is made, the contract may be entered into pending final deci- sion on the protest. If the contract is later deter- mined to be invalid due to a defect or defects in the competitive bid process, this bill entitles the contractor who entered into the contract with the public entity to be paid the reasonable cost, specifically excluding profit, of the labor, equip- ment, materials and services furnished by the contractor prior to the date of the determination, subject to conditions. Staff: Natasha Fooman, Status: AsBus &Prof, Position: Review and Comment. AB 473 (Correa). Contractors. AB 473 provides for the revocation of a contractors li- cense within 90 days (existing law is 30), and authorizes the registrar - if there is good cause - to delay the revocation for not more than one year, under certain conditions. Authorizes an arbitrator to grant any remedy or relief deemed just and equitable and within the scope of the board's referral to the arbitrator, including specific perfor- mance of a contract as well as monetary dam- ages. AB 473 deletes the ability of an arbitrator to order specific performance of a contract. Re- quires the board to pay expenses only if the board determines that the services of the expert witness are necessary, instead of simply on request which is current law. Staff: Natasha Fooman, Status: AsBus &Prof; Hrg -4/1, Position: Review and Comment. AB 972 (Correa). False Claims. AB 972 authorizes a political subdivision to file a civil action only if it concludes as a result of an investi- gation that there is a reasonable, good faith belief that a violation of the act has occurred or is occurring, and that filing the action would not be in retaliation for a contractor's good faith dispute. AB 972 also requires the court to award the defendant its reasonable attorney's fees and expenses if the defendant prevails and the court finds that the claim was brought in retaliation for a contractor's good faith dispute. Staff: Natasha Fooman, Status: AsJud, Position: Review and Comment. SB 179 (Alarcon). Contracts for Labor or Services. SB 179 would make subject to liability and specified civil penalties any person or entity who enters into a labor contract for construction farm labor, garment, janitorial or security guard services, when the person or entity knows or should know that the contract does not provide sufficient funds to allow the labor contractor to Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 9 Legislative Bill Action 0 • The following are summaries of just a few of the legislative bills that are currently being acted upon by the League of California Cities. For more information about these and other bills, please visit the League website's new "Issues and Advocacy" page (www.cacities.orcg/ issuesandadvocacy) — a one -stop location to access information about legislation, policy issues and related developments. You can track information on bills ( www. cacities .org /legislativesearch), locate legislators and legislative committees, send letters to legislators or the media through the online Advocacy Center, research League policy positions, access useful related links, and much more. TRANSPORTATION AND PUBLIC WORKS AB 1333 (Spitzer). Mechanic's Liens. Design Professionals. AB 1333 permits a contract between a design professional and a consultant of the design professional to contain an enforceable pay -if -paid provision if mechanics' lien rights are not available. Staff: Natasha Fooman, Status: AsJud; Hrg -4/1, Position: Review and Comment. AB 453 (Yee). Public Works Contracts. Compensation of Contractors. AB 453 provides that when a project for the construc- tion, alteration, repair or improvement of any structure, building, road or other improvement is competitively bid and a protest is made, the contract may be entered into pending final deci- sion on the protest. If the contract is later deter- mined to be invalid due to a defect or defects in the competitive bid process, this bill entitles the contractor who entered into the contract with the public entity to be paid the reasonable cost, specifically excluding profit, of the labor, equip- ment, materials and services furnished by the contractor prior to the date of the determination, subject to conditions. Staff: Natasha Fooman, Status: AsBus &Prof, Position: Review and Comment. AB 473 (Correa). Contractors. AB 473 provides for the revocation of a contractors li- cense within 90 days (existing law is 30), and authorizes the registrar - if there is good cause - to delay the revocation for not more than one year, under certain conditions. Authorizes an arbitrator to grant any remedy or relief deemed just and equitable and within the scope of the board's referral to the arbitrator, including specific perfor- mance of a contract as well as monetary dam- ages. AB 473 deletes the ability of an arbitrator to order specific performance of a contract. Re- quires the board to pay expenses only if the board determines that the services of the expert witness are necessary, instead of simply on request which is current law. Staff: Natasha Fooman, Status: AsBus &Prof; Hrg -4/1, Position: Review and Comment. AB 972 (Correa). False Claims. AB 972 authorizes a political subdivision to file a civil action only if it concludes as a result of an investi- gation that there is a reasonable, good faith belief that a violation of the act has occurred or is occurring, and that filing the action would not be in retaliation for a contractor's good faith dispute. AB 972 also requires the court to award the defendant its reasonable attorney's fees and expenses if the defendant prevails and the court finds that the claim was brought in retaliation for a contractor's good faith dispute. Staff: Natasha Fooman, Status: AsJud, Position: Review and Comment. SB 179 (Alarcon). Contracts for Labor or Services. SB 179 would make subject to liability and specified civil penalties any person or entity who enters into a labor contract for construction farm labor, garment, janitorial or security guard services, when the person or entity knows or should know that the contract does not provide sufficient funds to allow the labor contractor to Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 9 • • Legislative Bill Action ................................ ............................... comply with all applicable laws or regulations governing the labor or services to be provided under the contract. SB 179 establishes a rebut- table presumption that those businesses entering into such a contract for labor or services do not violate the bill's provisions if the labor contract or material change to the contract meets specific requirements. The author's office noted that in 2002 Senator Alarcon authored a similar measure, SB 1466, which was vetoed by the Governor. The Governor was not opposed to the merits of the particular measure, but stated that he wanted more time for other new labor law protections to work. The sponsors on SB 179 are California Labor Federation, AFL -CIO, Service Employees International Union, State Building and Construc- tion Trades Council, California Teamsters Public Affairs Council, and the California Rural Legal Assistance Foundation. Staff: Natasha Fooman, Status: SenLbr &indRel, Position: Review and Comment. AB 229 (Pacheco). School Districts. Public Project Contracts. AB 229 requires a School District public project contract involving an expen- diture of $50,000 or more to be competitively bid. AB 229 also requires the Superintendent of Public Instruction to adjust the $50,000 threshold annu- ally beginning in 1/1/04 with the California Con- struction Index. Staff: Natasha Fooman, Status: AsBus &Prof; Hrg -4/1, Position: Review and Comment. AB 286 (Dutra). Mechanics' Liens. AB 286 enacts the Home Improvement Consumer Protec- tion Act of 2003, which provides that if a home improvement contract exceeds $20,000 (regard- less of later increases in price) the homeowner may setoff the amount of good -faith payments to the original contractor against the aggregate amount of enforceable mechanics' liens and stop notice claims, in an amount not exceeding $20,000. AB 286 provides that a homeowner's receipt of a preliminary 20 -day notice does not affect the good -faith nature of a payment by the owner. Staff: Natasha Fooman, Status: AsJud; Hrg -4/1, Position: Review and Comment. SB 780 (Torlakson). Vehicles. Violations. Automated Enforcement Systems. SB 780 revises the definition of "automated enforcement system" to delete the requirement that the system be designed to obtain a clear photograph of the driver of the vehicle. SB 780 requires those violations to be cited as civil violations, subject to a civil penalty of not more than $200 and a specified administrative adjudication process. Staff: Natasha Fooman, Status: SenJud; Hrg -4/1, Position: Review and Comment. ENVIRONMENTAL AB 1051 (Goldberg). Capital Facility Fees. AB 1051, sponsored by the City of Los Angeles; the San Francisco Public Utilities Commission, and the East Bay Municipal Utility District, would address a serious problem facing numerous cities. A fact sheet about the bill is available on the League's website at http: / /www.cacities.org/ click on 'Issues and Advocacy' and from the Legislation section click on 'General Legislation Search' and enter bill number AB 1051. Throughout the state, educational institutions and other public agencies are seeking refunds of moneys paid for utility services, as well as pro- spective relief from future utility bills. These agen- cies assert that each of the different types of fees — connection fee, capacity fee, and utility service rate — constitute "capital facilities fees" and are thus subject to the provisions of the Government Code. Further, these agencies contend that utility rates, which include a component that is used to finance ongoing capital maintenance, repairs, replacement, or rehabilitation of utility infrastruc- ture, are being illegally charged since the public utility is not negotiating those utility rates, and the public utilities have increased utility rates beyond the statutorily - provided economic index. Existing law states that "capital facilities fees" must be negotiated between a utility and a school district or public agency and increases in such fees are limited by a statutorily - provided economic PAGE 10 /PRIORITY FOCUS Visit the League's Official Web Site -- www.cacities.org C7 Legislative Bill Action index. This law was enacted in 1998 in response to a California Supreme Court decision in San Marcos Wafer District v. San Marcos Unified School District. In that case, the school district claimed a capacity fee imposed by the water district constituted a special assessment and, therefore, the water district lacked the statutory authority to impose the charge on the school district. The court held in favor of the school district and the Legislature responded with a law that authorized public utilities to impose "capital facilities fees" or "capacity charges" on public agencies with certain restrictions. A key problem that has arisen is the ava- lanche of litigation against utilities relates to the terminology: "capital facilities fees." The educa- tion community and other public agencies have asserted that any charge or fee that has a capital component is a capital facility fee, and thus subject to all of the statutory limitations embodied in the Government Code. The utility community has contended that connection fees a4capacity fees are capital facility fees, but that utility rates (most of which contain a component to finance ongoing capital work) are not capital facility fees. AB 1051: - Clarify that "capital facilities fees" does not include utility service rates or commodity charges, and provide that a public agency may be charged for, and must pay utility rates contain- ing a capital component for the operation, mainte- nance, repair, replacement, or rehabilitation of facilities that benefit a public agency receiving utility services. • Clarify the requirement that any judicial action seeking a refund of a capital facilities fee, service rate or commodity charges, or challenging the validity of these fees, to be brought in accordance with specified law relating to validating proceed- ings; and require any action or proceeding to be commenced within 120 days of the effective date of the adoption of the fee, rate or charge. The bill would not increase the rates, charges, or fees associated with the cost of capital facilities to educational institutions or public agencies o relieve public utilities from the duty to negotiate a capital facilities fee (connection fee or capacity charge) when requested to do so by a school or public agency. Cities, especially those with utilities, should write letters of support to the author, their Assem- bly Member and members of the Assembly Local Government Committee, to which AB 1051 has been referred. If your city has been hit by a lawsuit over capital facility fees, please include that information and the potential cost to the city. Be sure and send the League a copy of your letter. Staff: Yvonne Hunter, Status: Pending in Assem- bly Local Government. Position: Support. HUMAN RESOURCES AB 136 (Kehoe) Workers' Compensation. Disability: Leave Of Absence. This bill extends temporary disability (Labor Code 4850) for safety officers to two years. This bill would have dramati- cally adverse effects on local agency budgets at a time when the economy and the state budget crisis are forcing layoffs and local service cut- backs. Under current law, firefighters and police officers are entitled to up to one year of temporary disability time off while receiving tax -free pay- ments of their full salary. Because the benefit is full salary, but tax free, the amount received by the injured officer significantly exceeds their normal take -home compensation. A temporarily injured safety employee under this law cannot retire until their "4850" time is exhausted. The local agency cannot permanently fill that position until the injured worker returns to modified work or retires. One missing employee severely hampers re- sponse models and emergency operations so overtime personnel are hired back to sustain staffing levels. Typically, a local agency backfills positions for the entire year, which increases costs extensively (full salary for the injured officer; time and a half for the replacement who is out on "4850" time). This occurs even when the agency Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 11 • .....legislative Bill Action .......................... is aware that the injured worker will eventually retire on disability. Because of the law, the agency cannot retire the injured worker without his or her consent, prior to the exhaustion of the 4850 benefits unless they are permanent and stationary as found by the Workers' Compensation Appeals Board. Staff: Amy Brown, Status: Aslns, Posi- tion: Oppose. AB 507 (Hancock) Public Safety Officers: Off -Duty Employment. AB 507 requires that a probationary employee of a public agency (exclud- ing school employees) whose employment has been terminated shall be given a written statement of the reasons for termination. No such require- ment exists in current law. Mandating a provision of a written statement regarding reasons for termination of probationary employees will dampen communications between employers and probationary employees. Employ- ers will fear that those communications will inadvertently, out of in- artful selection of language, serve as the basis for one of the expensive causes of action currently available to probation- ary employees. The net result will be carefully formulated and generally non - substantive commu- nications that will not permit the free exchange of communication otherwise necessary for a suc- cessful probationary period. In addition, the written communications may serve to encourage more use of available administrative remedies by probationary employees. There is nothing in AB 507 that cannot already be implemented voluntarily by public employers, including through the collective bargaining process available to public employees. This bill is an unnecessary, costly and burdensome unfunded state mandate that will inhibit the instructive value of probationary periods of employment. Staff: Amy Brown, Status: AsPubEmpRet &SS, Posi- tion: Oppose. PAGE 12 /PRIORITY FOCUS SEND A LETTER IN SUPPORT OF A LEAGUE POSITION! HERE'S WHO TO CONTACT: ASSEMBLY BUSINESS AND PROFESSIONS (AsBus &Profl: Correa (D)(Chair), S. Horton (R)(Vice Chair), Aghazarian (R), Bermudez (D), Corbett (D), Koretz (D), Maldonado (R), Nation (D), Vargas (D), Wyland (R), and Yee (D). Phone: 916/ 319 -3301. ASSEMBLY JUDICIARY COMMITTEE (AsJud): Corbett (D)(Chair), Harman (R)(Vice Chair), Bates (R), Dutra (D), Hancock (D), Jackson (D), Laird (D), Longville (D), Montanez (D), Pacheco (R), Spitzer (R), Steinberg (D), Vargas (D), and vacancy. Phone: 916/319 -2334. ASSEMBLY INSURANCE COMMITTEE (Aslns): Vargas (D)(Chair), Maddox (R)(Vice Chair), Benoit (R), Bogh (R), Calderon (D), Campbell (R), Chavez (D), Correa (D), Diaz (D), Dutra (D), Dutton (R), Frommer (D), J. Horton (D), Koretz (D), Lieber (D), Mountjoy (R), Nakano (D), Richman (R), and Ridley- Thomas (D). Phone: 916/319 -2086, ASSEMBLY PUBLIC EMPLOYEES, RETIRE- MENT AND SOCIAL SECURITY COMMITTEE (AsPubEmpRet &SS): Negrete McLeod (D)(Chair), Levine (D)(Vice Chair), Chan (D), Correa (D), Kehoe (D), Laird (D), Maldonado (R), Nakanishi (R), and Spitzer (R). Phone: 916/319 -3957. SENATE JUDICIARY COMMITTEE (SenJud): Escutia (D)(Chair), Morrow (R)(Vice Chair), Ackerman (R), Cedillo (D), Ducheny (D), Kuehl (D), and Sher (D). Phone: 916/445 -5957. SENATE LABOR AND INDUSTRIAL RELA- TIONS COMMITTEE (SenLbr &lndRel): Alarcon (D)(Chair), 011er (R)(Vice Chair), Dunn (D), Figueroa (D), Kuehl (D), Margett (R), McClintock (R), and Romero (D). Phone: 916/445 -1237. For legislators' phone numbers, ad- dresses and e-mail please see the League's website (www.cacities.orq/ legislativesearch). Visit the League's Official Web Site -- www.cacities.org