Loading...
Minutes - Board - 2006-05-04 C COSTA MESA SANITARY DISTRICT MINUTES OF SPECIAL MEETING MAY 4, 2006 The Costa Mesa Sanitary District held a Special Meeting at 6:00 p. m. on May 4 at 628 W. 19th Street, Costa Mesa. Directors Present: James, Ferryman, Greg Woodside, Art Perry, Arlene Schafer, Dan Worthington Staff Present: Robin B. Hamers, Manager/District Engineer; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager/Clerk of the District; Sherry Kallab, Accountant; Wendy Davis, Treasurer; Alan Burns, General Counsel Others Present: David Ronnenberg Dean A. Ruffridge President, CR&R Senior Vice President, CR&R • 11292 Western Avenue Solid Waste Stanton, CA 90680 President Ferryman called the meeting to order at 6:00 p. m. Director Worthington led the Pledge of Allegiance. Director Woodside gave the Invocation. CONSIDER SUPPORT FOR CONSTITUTIONAL AMENDMENT PROTECTING PROPERTY TAX AND RESERVES A Resolution supporting protection of local revenues and reserves dedicated to funding and developing infrastructure was presented. Director Woodside moved to adopt Resolution No. 2006-721, A Resolution of the Costa Mesa Sanitary District Board of Directors Supporting Protection of Local Revenues and Reserves Dedicated to Funding and Developing Infrastructure. Director Schafer seconded. Motion passed 5-0. TRASH COLLECTION PROGRAM Mr. Hamers presented an overview of a District Staff Meeting with David Ronnenberg and Dean Ruffridge of CR&R held on May 3, 2006. Mr. Hamers Minutes of Special Meeting Page 2 May 4, 2006 reported on the efforts by CR&R and District Staff to lower or hold stable the existing trash collection rates. 1. CR&R offered to purchase the standardized containers for$1,136,000 and take over payments for the remaining containers. 2. CR&R offered to forego the 2006-2007 CPI increase for both Costa Mesa Disposal in the amount of $70,315 and CR Transfer in the amount of $54,185. 3. In conjunction with items 1 and 2, Staff believes the District can accomplish one of its goals of instituting a variable rate structure while increasing revenue. The proposal is to continue to charge residents on the property tax roll and establish a base rate for two containers. The base rate would be billed by CMSD on the property tax bill as is presently done. The additional containers would be billed to the resident directly by CR&R. CR&R would handle all aspects of the administration of charging for additional containers, however, the funds derived from the program would be the property of the District. A fair price is considered to be $6.00 per month for each additional container. There are almost 5,000 containers above two containers per property in use. Staff proposes the funds be used to establish a rate stabilization fund which could pay for extraordinary fuel cost increases. CR&R plans to institute a field inventory to determine the number of cans at each residence. With regard to pass-through increases proposed by CR&R, Mr. Hamers recommended extraordinary increases in fuel costs be considered by the Board but not increases in processing costs or labor costs. Because of the proposal by CR&R of purchasing the standardized containers, both Mr. Hamers and Mr. Ruffridge agreed that the length of the amended contract be approximately ten years. Mr. Hamers stated these are the highlights of the plan and recommended the Treasurer project out future trash rates for review by the Board. After discussion, the Board directed Staff to prepare contract language in accordance with the above for review by the Board at the next Special Meeting on May 25, 2006 SEWER PROGRAM Mr. Hamers presented Revision 1 to the Draft of the 2006-2007 Capital ® Improvement Program and noted the sewer program is pared down to include more maintenance and operational projects than capital improvements. The Minutes of Special Meeting Page 3 May 4, 2006 District is funding for the Fats, Oils and Grease (FOG) program, televising sewer lines and additional WDR requirements, and a sewer rate increase is necessary. Additionally, sewer construction costs are escalating and increases are warranted. Further, the District needs a yard and a vactor truck for pump station maintenance. Presently, Staff is investigating the viability purchasing property located at the corner of Fairview and Wilson for a District Yard. Director Woodside left the meeting at 6:58 p.m. The Board of Directors gave direction to CMSD Staff to provide a 3-5 year horizon for sewer rates with options of rate increases varying from 12% to 20% per year. VIII. PUBLIC COMMENTS There were no public comments. VIII. ADJOURNMENT The meeting was adjourned at 7:02 p.m. I � .tea; . •� di /-2--)4 Secretary Pres'•ent C