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Minutes - Board - 1992-06-11s ti 0 MINUTES OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 11, 1992 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary. District met in regular session on June 11, 1992, at 7:30 p.m., at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: James Wahner, Nate Reade, James Ferryman, Dick Sherrick Directors Absent: Harry Green, excused. Staff Present: Roy June, Attorney Robin Hamers, Acting Manager /Engineer, Susan Temple, Finance Director, Donna Theriault, Accountant, Florine Reichle, Assistant Manager /Clerk of the District Guest: Jeff Wysard, Irvine, CA Director Wahner called the meeting to order at 7:30 p.m. Director Sherrick led the Pledge of Allegiance. Director Reade gave the Invocation. Director Wahner welcomed guest, Jeff Wysard, on behalf of the Board. MINUTES OF MAY 14, 1992: Director Reade noted that on page 7, under Warrant Report, the minutes should read: "seconded by Director Ferryman," instead of Director Reade. It was moved by Director Reade, seconded by Director Ferryman, and carried, that the minutes of May 14, 1992, be approved as corrected. It was noted that at the May 8 Study Session all members of the Board were present with the exception of Director Green who was excused. WRITTEN COMMUNICATIONS: Mr. Hamers submitted a copy of the second letter that has been mailed to the appropriate legislators in opposition to the 1992- 1993 budget proposal which would transfer property tax revenue from special districts which perform enterprise activities to school districts. A communication from Rebecca Q. Morgan, State Senator, has been received in response to the District's letter. 1 Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 2 A copy of the letter that was mailed to the Clerk of the Orange • County Superior Court in re: Mark A. Jackson, et al. v. Pacific Amphitheater expressing the District's desire not to be included in the class action of the above - entitled case was submitted to the Board for its information. A copy of a memorandum from William Morris, Director of Public Services, to the City Council stating that although the City has deleted from its 1992 -93 budget the Annual Large Item Pick Up due to budget cuts, the District has agreed to fund the program. He suggested that Council send a letter to the District thanking the Board for continuing the program. An article printed in the Orange County Register on May 28, 1992, indicating tentative approval of a 28% increase in sewer service charges in the City of Los Angeles in order to finance $200 million in system improvements in the fiscal year beginning July 1, was distributed to the Board. This proposed increase will add $4.06 per month to the average residential bill. An article printed in the Orange County Register on June 11, 1992, entitled: "Jury Wants Greater OC Effort to Collect Hazardous Wastes," was distributed as information for the Board. MANAGER'S REPORT: OCCUPANCY REPORT: Mr. Hamers reported there was a decrease in the trash and garbage collection of four units as of June 1, 1992, thereby making the Occupancy Report now at 22,779. Motion was made by Director Reade, seconded by Director Sherrick, to accept the occupancy count report as presented. Motion carried 4 -0. APPOINTMENT OF DISTRICT MANAGER: Since the State Attorney General's Office could not determine that a conflict of interest would exist in having a manager who also serves as the Engineer of the District, it was recommended that "Acting" be dropped from Mr. Hamer's title of Manager. It was moved by Director Reade, seconded by Director Sherrick that the word "Acting" be deleted from the Manager's title and that the final contract be brought before the next study session for finalization. Motion carried 4 -0. REFUNDS: Prior to action on the requested refunds, Director Sherrick wanted to place on record that he was opposed to denying refunds to those individuals who were paying for a service not being used. • Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 3 • Jeffrey Wysard Mr. Wysard was present to speak to the Board concerning his request for a refund for the years 1986 -87 - 1991 -92. Mr. Hamers explained to Mr. Wysard how the policy of the District worked and that only the current year could be refunded according to Board policy. Brian Singer Mr. Hamers presented a request for refund of trash and sewer assessment fees from Brian Singer, 340 Via Lido Nord, Newport Beach, CA 92663, Assessor's Parcel 422 - 162 -06, in the amount of $1,742.31 for the years 1989 -90 - 1991 -92. Mr. Hamers informed the Board that staff is recommending approval of a refund in the amount of $1,011.12 for trash assessment for the year 1991 -92, and refund of trash and sewer overcharge for the years requested, in accordance with District policy, and to be granted permanent exemption status. After discussion, it was moved by Director Reade, seconded by Director Ferryman, that the refund of $1,011.12 be approved. Motion carried 3 -1. Director Sherrick voting no. Brian Singer Mr. Hamers presented a request for refund of trash and sewer assessment fees from Brian Singer, 340 Via Lido Nord, Newport Beach, CA 92663, Assessor's Parcel 422 - 162 -05, in the amount of $1,742.31 for the years 1989 -90 — 1991 -92. Mr. Hamers informed the Board that staff is recommending approval of a refund in the amount of $1,011.12 for trash assessment for the year 1991 -92, and refund of trash and sewer overcharge for the years requested, in accordance with District policy, and to be granted permanent exemption status. After discussion, it was moved by Director Reade, seconded by Director Ferryman, that the refund of $1,011.12 be approved. Motion carried 3 -1. Director Sherrick voting no. Jeffrey Wysard Mr. Hamers presented a request for refund of trash assessment fees from Mr. Jeffrey Wysard, P. O. Box 10743, Santa Ana, CA 92711, Assessor's Parcel No. 422 - 412 -16, in the amount of $1,672.17. Mr. Hamers informed the Board that staff is recommending approval of a refund in the amount of $560.64 for the year 1991 -92 only, in accordance with District policy; and to be granted permanent exemption status. After discussion, it was moved by Director Reade, seconded by Director Ferryman, that the refund of $560.64 be approved. Motion carried 3 -1, Director Sherrick voting no. Jeffrey Wysard Mr. Hamers presented a request for refund of trash assessment fees from Mr. Jeffrey Wysard, P. O. Box 10743, Santa Ana, CA 92711, Assessor's Parcel No. 422 - 412 -17, in the amount of $1,204.46. Mr. Hamers informed the Board that staff is recommending approval of a refund in the amount of $560.64 for • d Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 4 • the year 1991 -92 only, in accordance with District policy, and to be granted permanent exemption status. After discussion, it was moved by Director Reade, seconded by Director Ferryman, that the refund of $560.64 be approved. Motion carried 3 -1, Director Sherrick voting no. SOURCE REDUCTION & RECYCLING ELEMENT: Refund from Pacific Bell: Mr. Hamers informed the Board that the District had received reimbursement in the amount of $1,442.95 from Pacific Bell Directory for promotion of the telephone directory recycling program. State Grant Rejected: Mr. Hamers further informed the Board that the Household Hazardous Waste grant the District had applied for had been rejected. Director Wahner asked the reason for rejection, and Mr. Hamers responded that the State just did not have the funds anticipated. Also, the State prioritized applications from those areas that were really in trouble. Mr. Hamers said there would be opportunities in the future to reapply for funds. DIVERSION REPORT FOR MAY 1992: May: Total tonnage: 2,854.78 Percent Recycled: 25.100 • It was moved by Director Reade, seconded by Director Ferryman, and carried 4 -0, that the Diversion Report be accepted as presented. Director Sherrick asked if anyone had visited the facility in Stanton. It was suggested that the Directors contact Ms. Reichle to schedule a time convenient to go on a tour of the facility in Stanton. Ms. Reichle mentioned that CR Transfer is planning an open house in the near future. Legal Opinion from Attorney June re AB -939: Mr. June explained that his legal opinion covered four major subject areas: 1. General Authority of the Sanitary District to deal with solid waste. 2. Authority of the District to franchise solid waste disposal enterprises. 3. District's enforcement authority for AB -939. 4. Methods by which District may extend its franchise powers and enforcing powers for AB -939. Mr. Hamers informed the Board that this should be a focus of the study session on June 18. s • Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 5 Director Sherrick informed the Board that he would be unable to attend the meeting, therefore, he expressed several concerns. He was assured his concerns would be addressed at the study session. TREASURER'S REPORT: Mrs. Temple presented the Financial Report for May 1992. After discussion and review, Director Reade made a motion, seconded by Director Ferryman, and unanimously carried, that the Financial Report for May 1992, be approved. BUDGET: Treasurer Temple presented the Budget for the Fiscal Year 1992- 1993 as follows: REMODELING DISTRICT MANAGEMENT OFFICE: Mr. Hamers presented a purchase order which reserves funds from the 1991 -92 Budget for remodeling District Administration Office in the amount of $70,479 as follows: Approximate remodeling costs: $ 4,428 Approximate furniture costs 32,000 Approximate equipment costs 5,000 Approximate salary reserve 29,051 The Board felt the amount proposed for furniture costs could be • reduced and asked staff to give it further study. Solid Waste Appropriations - 1992 -93 $3,325,143 Liquid Waste Appropriations - 1992 -93 2,563,628 Total 1992 -93 Budget: $5,888,771 In presenting the appropriations for solid and liquid waste as compared with the budget adopted for the 1991 -92 fiscal year, an increase of 7.3 percent was shown. The calculations submitted include amendments made to the Budget as recommended by the Board at its May study session. The liquid waste budget proposed for 1992 -93 indicates an increase of $405,659 in appropriations. The projected assessment for households would increase by approximately $7.39 or 39% per year. As part of the 39% increase, the projected loss of $160,000 in property tax revenue increased the preliminary liquid waste assessment by $2.96 per residential household, or 16 %. Final figures cannot be determined until the trash and liquid assessment roll is completed in August. �D�RB�r�o It was moved by Director Reade, seconded by Director Ferryman, that the 1992 -93 Budget be approved in the amount of $5,888,771. Motion carried -9- 3 -j, �i,ee�?r�a- s�e���e�� .4B.�r.¢..r/..✓9 REMODELING DISTRICT MANAGEMENT OFFICE: Mr. Hamers presented a purchase order which reserves funds from the 1991 -92 Budget for remodeling District Administration Office in the amount of $70,479 as follows: Approximate remodeling costs: $ 4,428 Approximate furniture costs 32,000 Approximate equipment costs 5,000 Approximate salary reserve 29,051 The Board felt the amount proposed for furniture costs could be • reduced and asked staff to give it further study. Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 6 , • RESOLUTION NO. 92 -516 - ESTABLISHING FEES UNDER ORDINANCE NO. 20 Resolution No. 92 -516 was presented for adoption, being "A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING CHARGES AND FEES AND CITING AUTHORITY THEREFOR. After discussion it was moved by Director Ferryman, seconded by Director Reade, that Resolution No. 92 -516 establishing fees according to Ordinance No. 20 be adopted. Motion carried by the following roll call vote: AYES: DIRECTORS - Wahner, Ferryman, Reade and Sherrick NOES: Directors - None ABSENT: Directors - Green PROPOSED RATE INCREASE BY DISTRICT ENGINEER /MANAGER: A request for increase effective July 1, 1992, from Mr. Hamers for Engineer /Manager services was presented for Board consideration as follows: Engineering and Management $59.00 /hour Draftsman $47.00 /hour Inspector $42.00 /hour Retainer $1,100.00 /month After discussion, it was moved by Director Reade, seconded by • Director Ferryman that the proposed increase for Engineer /Manager be approved as submitted. Motion carried 4 -0 ATTORNEY SPECIAL PROJECTS BUDGET: Proposed AttorneN consideration by is the agreement Mesa Sanitary obligations as responsibilities 7's fees for special projects was submitted for the Board. Being considered in this proposal between the City of Costa Mesa and the Costa District regarding the City's recycling well as District reorganization. The of the Attorney's office will be: 1. Preparation of Manager's independent contract agreement between Robin Hamers & Associates and the Costa Mesa Sanitary District. 2. Revision of the City /District operating contract including provisions for the enforcement and administration of Assembly Bill 939. 3. A City /District lease for Sanitary District office space. 4. Preparation of an Assembly Bill 939 Ordinance for the City of Costa Mesa. Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 7 5. Request for proposal for franchise of solid waste collection and disposal or, in the alternative, request for qualification from responsible hauler. 6. Franchise agreement or agreements including a franchise agreement for Costa Mesa Disposal. Fees proposed are $33,000, which is $15,000 over the established retainer of $18,000. Billings will be on a "not to exceed" basis. It was moved by Director Reade, seconded by Director Ferryman, that the proposed increase in Attorney's fees be approved as submitted above. Motion carried 4 -0. ENGINEER'S REPORT: PROJECT STATUS REPORT: Mr. Hamers reported that there were no additions to the project status report. DEVELOPMENT UPDATE: There was nothing new to report. REVIEW OF SEWER PLANS: Mr. Hamers submitted a list of projects within the Costa Mesa Sanitary District where the District Engineer of the Costa Mesa Sanitary signs the plans as both private engineer preparing the plan, plus as District Engineer of the Sanitary District. The projects are: 171 E. 18th Street Existing lateral 2375 Elden Avenue Existing lateral 753 Center Avenue Existing lateral After a review of the projects listed, it was moved by Director Reade, seconded by Director Sherrick, that no conflict of interest exists. Motion carried 4 -0. ACCEPTANCE OF IMPROVEMENTS, PROJECT 123, PUMP STATION RECOATING AND MAINTENANCE: It was moved by Director Reade, seconded by Director Sherrick, that improvements in Project 123, Pump Station Recoating and Maintenance, be accepted and a Notice of Completion filed; that payment of 5% retention be authorized 35 days after Notice of Completion is recorded; exonerate Labor & Material Bond and Faithful Performance Bond after Notice of Completion is recorded; exonerate loo Guarantee Bond one year after Notice of Completion is recorded. (Guarantee Bond is effective for one year from the date the Notice of Completion is recorded.) Motion carried 4 -0. Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 8 ATTORNEY'S REPORT: Potlach Claim - Attorney June reported that negotiations are taking place. The District will be notified of the outcome. OLD BUSINESS: PENDING ITEM STATUS REPORT: Received and filed. SPECIAL LARGE ITEM PICK UP: Agreement between the Costa Mesa Sanitary District and Costa Mesa Disposal, Inc. for conducting the 1992 "Large Item Pick Up ", in the amount of $32,375 was presented to the Board for approval. It was moved by Director Reade, seconded by Director Ferryman, that the Agreement between the Costa Mesa Sanitary District and Costa Mesa Disposal, Inc. be approved. Motion carried 4 -0. NEW BUSINESS: RESOLUTION NO. 92 -517 COMMENDING JAMES WAHNER AS COSTA MESA SANITARY DISTINGUISHED BOARD MEMBER: Mr. Hamers reminded the Board that last year the Board voted to nominate President James Wahner for the California Special Districts Association Distinguished Board Member Award. Apparently, this nomination was never received by California Special Districts so staff prepared a nomination for Board approval and will mail the package by certified mail. It was moved by Director Reade, seconded by Director Ferryman, that Resolution No. 92 -517, being "A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT HONORING JAMES A WAHNER AS A DISTRICT BOARD MEMBER OF THE COSTA MESA SANITARY DISTRICT AND STATING REASONS THEREFOR," be approved. Motion carried by the following roll call vote. AYES: DIRECTORS - FERRYMAN, READE AND SHERRICK NOES: DIRECTORS - NONE ABSENT: DIRECTORS - GREEN ABSTAINING: DIRECTORS - WAHNER SPECIAL DISTRICTS RISK MANAGEMENT INSURANCE RENEWAL: It was moved by Director Ferryman, seconded by Director Reade, that renewal of the District's participation in the risk - financing programs of the Special District Risk Management be approved in the amount of $34,982. Motion carried 4 -0. • i Costa Mesa Sanitary District Minutes - -June 11, 1992 - -Page 9 'L 1992 ELECTION: Transmittal of election information was submitted to the Board which should be completed and returned to the Registrar of Voters office by July 1, 1992, as required by Elections Code Section 23510.5. July 1 The Notice of Elective Offices must be filed with the Registrar of Voters. July 13 Papers can be taken out for election. August 7 Election papers must be filed with the Registrar of Voters by 5:00 p.m. Motion was made by Director Ferryman, seconded by Director Reade to notify the Registrar of Voters of the elective offices and provide the following information: The candidate's statement is to be 200 words or less and will not be paid by the District. Motion carried 4 -0. WARRANT REPORT: Director Ferryman made a motion, seconded by Director Reade, authorizing the President and Secretary to sign Report No. 92 -12, instructing the Treasurer of the District to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $475,717.81. Motion carried 4 -0. ORAL COMMUNICATIONS: It was announced that Ken Wanzer would be retiring in July and a retirement farewell is being held at The Barn,.July 10, 1992. Those wishing to attend should contact Ms. Reichle. ADJOURNMENT: President Wahner adjourned the meeting at_9:25 p.m. ES ENT ASSISTANT SECRETARY