Minutes - Board - 2006-02-27 v
COSTA MESA SANITARY DISTRICT
MINUTES OF SPECIAL MEETING
FEBRUARY 27, 2006
The Costa Mesa Sanitary District met in Special Session at 11:00 a.m. on February 27,
2006 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; Alan Burns, General Counsel
Others Present: David Ronnenberg Dean A. Ruff ridge
President, CR&R Senior Vice President, CR&R
11292 Western Avenue Solid Waste
Stanton, CA 90680
President Ferryman called the meeting to order at 11 :00 a.m.
Director Worthington led the Pledge of Allegiance.
Director Woodside gave the Invocation.
I. Discussion of Trash Collection Program with CR&R Officials
A. Comparison of CMSD Rate to Other Agency Rates
Mr. Hamers reported Staff held two meetings and another meeting with
CR&R on trash rates. Mr. Hamers stated it is difficult to compare rates with
other agencies because of the different types of services and the different
level of service. No other agency has a single-family only mixed waste
program that recycles 50% of their waste. The agencies with a mixed
program recycle less than 50% of their residential waste but achieve an
overall rate of 50% by recycling their commercial waste well above 50%.
Mr. Ruffridge reported meeting with Staff and presented a letter with a review
® of solid waste rates comparing rates of four other communities, including
Huntington Beach, Fountain Valley, La Palma and Fullerton that have similar
Minutes of Special Meeting Page 2
February 27, 2006
programs. Mr. Ruffridge stated comparisons are difficult in that the Costa
Mesa Sanitary District has a 50% diversion guarantee; La Palma has a 35%
guarantee, while the other communities have no diversion guarantees for
their residential waste stream.
Mr. Ruffridge also mentioned that a few cities have a lower than normal
residential rate but a higher than normal commercial rate. This appeared
when the agreements were entered into and reflects a political pressure to
keep residential rates low.
Mr. Ruffridge also stated the remainder of Orange County communities use a
two or three container program that requires each resident to separate
recyclables, green wastes, and residual wastes in separate containers.
These programs typically have a lower monthly charge because the burden of
sorting the solid waste is on the homeowner. This presorting allows the
recyclables to be sent to a clean processing facility.
Other factors preventing a direct comparison of rates are: the inclusion of
agency staff time in the general fund budget rather than in the solid waste
budget; residents in the Costa Mesa Sanitary District discard a large amount
of trash per residence; and there is no limit on trash containers.
• B. Request by CR&R to Add Pass-Through for Fuel Cost Increases
Mr. Ruffridge stated a fuel adjustment would be requested only under
extraordinary circumstances such as doubling or tripling in the fuel price.
C. Ownership of Trash Containers
President Ferryman expressed the desire of the Board to remove the District
as owners of the trash containers. The amount the District owes on the
containers is approximately $1.2 million.
Staff will review the container purchase agreement to determine if the
warranty will apply should a transfer of ownership occur. Staff will supply
documents related to containers to Mr. Ruffridge who stated he would
investigate and prepare a proposal for CR&R to take over ownership of the
containers.
D. Status of Consolidated Trash Hauling and Recycling Agreement
Mr. Burns provided a copy of the most recently modified consolidated draft
agreement with CR&R, CR Transfer, and Costa Mesa Disposal. Mr. Burns
will be able to complete the agreement when the ownership of trash
containers and the issue of pass-through costs are resolved.
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February 27, 2006
C
E. Other Related Items
Mr. Ruffridge suggested reducing the impact of the rates by having CR&R
hold an e-waste collection event with no cost to the District.
CR&R will respond to the District by March 27, 2006, on four items: providing a
comparison table of pounds of trash per resident per agency in Orange County; pounds of
trash collected per resident per route in the Costa Mesa Sanitary District; a proposal for
acquiring the District's standardized trash containers, and a proposal for extraordinary
fuel cost increases.
Property at 1780 Whittier
Mr. Burns advised the Board of the need to discuss a non-agenda item — Property at
1780 Whittier Street, Costa Mesa. Mr. Burns reported Staff was just advised of another
escrow/purchase pending on the property at 1780 Whittier, and due to the short deadline
of March 1, 2006 to respond to, reject, or take exception to title or some other
contingency, the need to address this matter arose after this agenda was posted.
Director Perry moved to discuss a non-agenda item because the need arose after the
agenda was posted and there was a need to take immediate action. Director Schafer
seconded the motion. Motion carried 5-0.
Mr. Burns advised there is an escrow pending on the property the District made an offer
on at 1780 Whittier.
Director Woodside left the meeting at 12:45 p.m.
After discussion, Director Worthington motioned to instruct Mr. Burns to inform the
Escrow Officer the District has objections to the sale as there was an undisclosed prior
purchase agreement with another buyer that may still be in effect, the prior purchaser is
threatening litigation; the condition of title is not such that the District would approve of the
sale in that there has been a threatened lis pendens on the property, which may be
unknown to the Title Insurer; and, as the property is in probate, the seller may not have
authority to sell the property. Director Schafer seconded. Motion passed 4-0.
Public Comments
There were no public comments.
Secretary Preside