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Minutes - Board - 1995-07-13a s COSTA MESA SANITARY DISTRICT Minutes of Board of Directors Regular Meeting held July 13, 1995 • Call to Order: The Board of Directors of the Costa Mesa Sanitary District met in regular session.on July 13, 1995, 12:00 p.m., at the Civic Center, 77 Fair Drive, Costa Mesa. Director Ferryman called the meeting to order at 12:00 p.m. Director Perry led the Pledge of Allegiance. Director Reade gave the Invocation. Roll Call: Directors Present: James Ferryman, Arthur Perry, Nate Reade, Arlene Schafer, Dan Worthington. Staff Present: Robin Hamers, Manager/Engineer; Alan Burns, General Counsel; Florine Reichle, Assistant Manager /Clerk of the District; Dawn Guastella, Permit Specialist; Susan Temple, Treasurer. • Others Present: Jane A. Lee, Business Owner, 2466 Santa Ana, Costa Mesa David E. Fahrion, CR &R, P.O. Box 125, Stanton, 90680 Barry Newton, CMS, 8205 East Somerset, Anaheim, 92808 ® MINUTE APPROVAL MINUTES OF REGULAR MEETING — JUNE 8,1995 Director Schafer moved acceptance of the minutes of the regular meeting, June 8, 1995. Director Perry seconded. No discussion was held. Motion to approve the minutes as written approved unanimously. STUDY SESSION REPORT — JUNE 1, 1995 A study session was held Thursday, June 1, 1995, attended by President Ferryman and Directors Perry, Reade, Schafer and Worthington to discuss the 1995 -96 budget. WRITTEN COMMUNICATIONS Mr. Hamers reported receipt of two papers written by Mr. Robert Hawkins, author of Self — Governance by District: Myth and Reality. Mr. Hawkins is currently updating this book and has advanced two papers to the Board for informational purposes. Ms. Reichle will make the papers available for perusal by the Board. • COSTA MESA SANITARY DISTRICT Minutes — Board of Directors Meeting held July 13, 1995 Page 2 PUBLIC COMMENTS • There were no public comments made. REPORTS MANAGER'S REPORT OCCUPANCY REPORT Mr. Hamers reported a decrease of 21 units in the occupancy report for solid waste collection as of July 1, 1995. Therefore, the total for July is 22,068. Staff recommends the acceptance of the count. Director Perry motions to accept the count as presented. Director Reade seconded. Motion to accept the occupancy report approved unanimously. Mr. Hamers recommended that the Board direct staff to prepare a warrant for $155,804.49 to Costa Mesa Disposal on August 1, 1995, for payment for July trash collection based on the July count of 22,068. Motion made by Director Perry, seconded by Director Reade. Motion to prepare the warrant approved unanimously. • REFUND MANOUCHEHR MALEK Mr. Hamers reported a refund request from Mr. Manouchehr Malek, dated June 5, 1995, for the amount of $2,691.52, covering the 1994 -95 fiscal year for property located at 1940 Maple Ave., a 16 —unit parcel, Parcel Number 422 - 103 -40. Mr. Malek was unaware of the exemption and was using private trash service provided by South Coast Refuse. Mr. Hamers further reported that Mr. Malek was charged erroneously for 18 units instead of 16 units. Mr. Hamers recommended the issuance of a refund, in accordance with the Board's policy to refund for the current fiscal year, of $2,656.08 for trash and a permanent exemption was recommended. Additionally, a refund of $35.44 for sewer charges on the two units charged in error was recommended for a total refund of $2,691.52. Director Reade moved to approve the refund of $2,691.52. Director Perry seconded. Motion carried 5 -0. JANE LEE Mr. Hamers reported a refund request from Ms. Jane Lee, dated May 30, 1995, for the amount of $3,400.00, encompassing fiscal years 1991 -92 to 1994 -95, for • property located at 2466 Santa Ana, a 6 —unit parcel, Parcel Number 439 - 131 -17. Ms. Lee was unaware of the exemption and was using private trash services • COSTA MESA SANITARY DISTRICT Minutes - Board of Directors Meeting held July 13, 1995 Page 3 provided by Western Waste. Ms. Lee is not a resident of Costa Mesa, • consequently no information regarding an exemption was obtained in the mail. The property is located in the Santa Ana Heights Water District which does not receive the various notices regarding the exemption. Ms. Lee has been in contact several times with the County Assessor's office, commencing in 1992, questioning the charge for trash service on her tax bill and was not directed to the Costa Mesa Sanitary District for an exemption. In light of the extenuating special circumstances, Director Reade motioned to refund a total of $2,606.16 for the fiscal years 1992 -93, 1993 -94 and 1994 -95.. Director Schafer seconded. Motion carried 5 -0. Director Schafer recommended the County Assessor's office be notified and requested to direct taxpayers questioning trash service charges to the Costa Mesa Sanitary District. OLD BUSINESS CREATIVE MANAGEMENT SOLUTIONS - FINANCIAL STUDY PHASE II FINAL REPORT - CITY/DISTRICT CONTRACT • Mr. Hamers introduced Mr. Barry Newton, president of Creative Management Solutions, who presented a three -page letter of agreement from Mr. Newton providing an outline of the work tasks encompassed in conducting an implementation analysis for the Costa Mesa Sanitary District's assumption of field operations and administrative services which are currently contracted with the City of Costa Mesa. Mr. Newton will initiate the work immediately and complete the study between 60 to 90 days for a sum not to exceed $6,750.00 to be billed in 3 segments following the completion of Tasks 4, 8 and 10 as listed on Mr. Newton's proposal. Mr. Burns was directed by the Board to provide a consultant agreement for Mr. Newton to further define the conditions of the contract. Director Reade motioned to approve the engagement of Creative Management Solutions for the sum of $75 an hour, not to exceed a total of $6,750.00 contingent upon the consultant agreement provided by Mr. Alan Burns. Director Perry seconded. Motion carried 5 -0. CR TRANSFER - DISTRICT'S RECYCLER New Recycling Contract Mr. Hamers introduced Mr. David Fahrion, corporate vice president of CR &R, the main • entity of CR Transfer. • COSTA MESA SANITARY DISTRICT Minutes — Board of Directors Meeting held July 13, 1995 Page 4 • Mr Hamers reviewed with the Board Exhibit A of the proposed contract and discussed the requested modifications reflected in part: • II General 1. CR Transfer (CRT) to participate in AB939 education programs. Participation to be five tours per year, one seminar per year, and one brochure mailed to each resident every two years with the Costa Mesa Sanitary District providing the mailing labels for the brochures. 2. CRT to guarantee the District's rate is equal to or lower than any other agency using CRT for equivalent service. 6. CRT to participate in anti - scavenging enforcement, as requested, up to a cost of $5,000 per year; said $5,000 participation to be increased by the CPI every year for the first six years after which the CPI increase will be negotiated. Mr. Hamers advised the Board that General item 7 regarding CRT accepting paint, batteries and used motor oil for recycling will be deleted from the proposed contract terms. CRT does not have the capability to recycle those items. • III Legal 3. CRT to indemnify and defend District from any and all lawsuits arisin • g out of award of the contract to CRT and arising out of the performance of the contract by CRT, excepting only gross negligence or willful misconduct on the part of the District. CRT proposed the words "gross" and "willful" be removed from this section. This item is under consideration by legal counsel for both parties. 4. CRT to defend and indemnify District from any and all actions naming the District or its officers or employees, which alleges that the District is responsible for any clean -up costs of places where any collected waste is ultimately disposed. Counsel for both parties will further negotiate this item. 7. CRT to guarantee that it will meet AB939 tonnage diversion requirements and prepare documentation, at its cost, showing such efforts as required by the State. • • ` COSTA MESA SANITARY DISTRICT Minutes — Board of Directors Meeting held July 13, 1995 Page 5 • • Director Schafer initiated a conversation regarding CRT's documenting the waste stream before and after the hiring of a code enforcement officer and the possibility of CRT requesting the court to impose stronger fines against scavengers. Mr. Hamers opened discussion for contract term length. Options discussed included contracting for a 6 —year rolling term or alternately, a 7 —year initial term that becomes a 5 —year rolling term after the first 2 years. Mr. Hamers additionally discussed item 5 under Financial: 5. Future yearly CPI increases to have a maximum increase of 3% for the first six years and are applied July 1 of each year. After the first six years the CPI increases will be negotiated. Mr. Fahrion related to the Board that both he and Mr. Silva were in agreement with that provision. Director Schafer requested to receive audited financial statements from CR Transfer Director Reade motioned to accept this proposed contract in concept emphasizing item number 8 under Financial, a 6 —year rolling term, provided that a satisfactory resolution is reached concerning the legal questions, review of the audited financial statement and implementing the minor changes discussed at this board meeting. Mr. Burns, General • Counsel, will prepare the contract and bring back a first draft to the Board for review no later than 60 days. Director Perry seconded. No further discussion was held. Motion to approve in concept was approved unanimously. SOURCE REDUCTION AND RECYCLING ELEMENT — AB939 STATUS OF CITY'S WASTE PROGRAM Anti— Scavenging Solutions /Enforcement Mr. Hamers presented to the Board a letter from Mr. Alan- Burns, General Counsel, dated June '16, 1995, reflecting Mr. Burns' conversation with Jerry Scheer, Assistant City Attorney, who related that Mr. Tom Kathe, City Attorney, reported that few or no citations have been issued for scavenging to his knowledge. Mr. Hamers presented to the Board an interoffice memorandum to Mr. Hamers from Mr. William Morris, Director of Public Services, dated June 27, 1995, regarding monthly police department statistics for scavenging enforcement. A • total of 8 citations were issued out of 51 calls for service. • COSTA MESA SANITARY DISTRICT j Minutes — Board of Directors Meeting held July 13, 1995 Page 6 • Mr. Hamers presented to the Board an interoffice memorandum to Mr. Tom • Kathe, City Attorney, from Mr. David Snowden, Chief of Police, dated June 29, 1995, regarding the parameters of scavenger enforcement. Chief Snowden inquired whether a non —City employee can be empowered to issue citations for scavenging violations and additionally requested information regarding the prosecution of these municipal code violation cases. Mr. Hamers further presented to the Board an interoffice memorandum from Mr. Tom Kathe, City Attorney, to Mr. David Snowden, Chief of Police, dated June 30, 1995, in response to Chief Snowden's inquiries. Mr. Kathe advised that a non —City employee does not have authority to issue criminal citations on behalf of the City, but a citizen's arrest can be made with the arrestee being referred to the Costa Mesa Police Department. Mr. Kathe further informed Chief Snowden that the new Deputy City Attorney could be trained to handle code violations or a private legal counsel, funded from fees collected from solid waste haulers, may be considered. The Board directed Mr. Alan Burns, General Counsel, to contact Mr. Tom Kathe, City Attorney, regarding the prosecution of scavengers. Mr. Burns will then advise the Board with his recommendations. Mr. Hamers related to the Board a meeting held on June 28, 1995 attended by t- A Directors IdVerf tington and Reade who accompanied staff to meet with Mr. Allan Roeder, City Manager; Mr. William Morris, Director of Public Services, • Mr. David Snowden, Chief of Police, and Mr. Rick Johnson from the Costa Mesa Police Department to discuss the options for scavenging violation enforcement. The police department will examine the cost of hiring a separate person and will review the options of engaging a contract code enforcement officer or a reserve officer. If a contract code enforcement officer is employed, training would be provided by the City at no cost. Mr. Hamers informed the Board of a grant application to the State of California for monies to enforce anti — scavenging. The grant of $16,000 was requested to cover a six —month period, providing for a four —hour day, five —day week, senior reserve officer at a cost of $30 per hour. Mr. Hamers advised the Board that a copy of the application would be made available for their review. Mr. Hamers recounted a conversation with Mr. Jim Sankey, Solid Waste Manager of the City of Huntington Beach, regarding the use of the adhesive anti — scavenging stickers. Mr. Sankey expressed concern regarding copyright violations should the City of Huntington Beach duplicate the sticker for use in its city. Mr. Hamers requested Mr. Burns' input on possible copyright violations. The Board reviewed the matter and determined that they would assert no • proprietary rights regarding the symbol used on the anti — scavenging stickers and that the City of Huntington Beach was free to produce copies of the symbol. • COSTA MESA SANITARY DISTRICT Minutes — Board of Directors Meeting held July 13, 1995 Page 7 0. Household Hazardous Waste Grant Program Mr. Hamers further reported upon the application for the Household Hazardous Waste Grant. Americlean is preparing the grant at no cost to the District and will make that available to the Board upon its completion. . SRRE EDUCATIONAL PROGRAM Newsletter Mr. Hamers reported that the completed newsletters will be delivered to the post office to be mailed Friday morning, July 14, 1995. RECYCLING REPORTS Waste Diversion Report for June 1995 Mr. Hamers reported 27.59% waste diversion for the month of June 1995. Total Tonnage: 2,884.40 Tonnage Recycled: 795.78 • The Waste Diversion Report was received and filed. Approve Contract Payment Mr. Hamers recommended to the Board the approval of contract payment to CR Transfer. Director Perry moved for approval of payment to CR Transfer in the amount of $103,780.72. Director Schafer seconded. No further discussion was held. Motion carried 5 -0. LOCAL MEETINGS Local Agency Formation Commission Mr. Hamers reported on the Santa Margarita /Cal American meeting. LAFCO denied the application from Cal American. Independent Special Districts /Orange County (ISDOC) Executive Board Meeting • Special Meeting — 6 -29 -95 • COSTA MESA SANITARY DISTRICT r Minutes — Board of Directors Meeting held July 13, 1995 Page 8 r1 L_J Mr. Hamers reported on the special meeting on June 29, 1995 to discuss bylaws, Mr. Hamers made available handouts from the meeting including one from the • WACO chairman regarding proposed LAFCO requirements for reviewing consolidations and reorganizations. Mr. Hamers additionally made handouts available from the legislative committees of ISDOC, one reviewing ISDOC's position on pending legislation and one reviewing CSDA's position on pending legislation. Director Reade advised the Board of an upcoming meeting, Monday, July 17, 1995 with the bylaw committee and the executive committee of ISDOC. Director Schafer provided the minutes of the special meeting of June 29, 1995 for the Board's review. Orange County Sanitation Districts Regular Meeting President Ferryman reported that Mr. John Cox from Newport Beach was the sole nominee for joint Board Chairman. The vice chairman will be nominated at the • next meeting. SAFETY COMMITTEE MINUTES - 6 -27 -95 Mr. Hamers presented the minutes from the June 27, 1995 meeting. Director Schafer advised of an error in the minutes under "Distribution to CMSD Board of Directors." The correct date should be "July 1995 regular meeting." TREASURER'S REPORTS Financial Report Ms. Temple presented the financial statements as of June 30, 1995. Motion to accept the report as presented made by Director Reade, seconded by Director Perry. No further discussion was held. Motion to accept the financial report as presented approved 5 -0. Treasurer's Report of Monies on Deposit Ms. Temple presented the report showing the District's portfolio for the month of June 1995. Director Perry motioned to approve the Treasurer's report. Director Schafer seconded. Motion to accept the Treasurer's report approved unanimously. • COSTA MESA SANITARY DISTRICT Minutes — Board of Directors Meeting, eld July 13, 1995 Page 9 • Orange County Bankruptcy Update Ms: Temple informed the Board of the receipt of $102,072.62 in recovery notes and $3,308.29 in interest as provided for in the Comprehensive Settlement Agreement. Property Tax Issue — Letter to County Mr. Hamers related to the Board that at the special meeting of ISDOC it was requested that all special districts communicate to the County to oppose the County's consideration of taking additional property tax apportionment and reserves. The Board directed staff to prepare a letter for President Ferryman's signature to the County reflecting the Board's opposition. Investment Oversight Committee Meeting July 13, 1995. Mr. Hamers reported on the Investment Oversight Committee Meeting attended by Directors Worthington and Perry. Mr. Hamers commented on the informative • presentation. The next meeting of the Investment Oversight Committee will be held in October. Resolution No. 95 -575 1995 Statement of Investment Policy Ms. Temple presented Resolution No. 95 -575, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, AUTHORIZING THE TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY DISTRICT IN ELIGIBLE SECURITIES AND TO SELL OR EXCHANGE SECURITIES PURCHASED, AND AUTHORIZING SAID TREASURER TO DEPOSIT SUCH SECURITIES FOR SAFEKEEPING IN DESIGNATED BANKS AND SAVINGS AND LOANS, AND AUTHORIZING THE SAID TREASURER TO DELEGATE TO THE ASSISTANT DIRECTOR OF FINANCE THE CARRYING OUT OF ANY SUCH TASKS. Director Schafer moved to adopt Resolution No. 95 -575 as presented. Director Perry seconded. Motion to adopt Resolution No. 95 -575 passed unanimously. Costa Mesa Disposal — Annual CPI Increase Ms. Temple presented to the Board the annual CPI increase for Costa Mesa Disposal. The May CPI has been calculated to be 2.444% which would increase the per occupancy rate by 17 and 1/a cents bringing the total trash occupancy rate effective July 1, 1995 to be $7.2327. Director Perry motioned to approve the CPI increase for Costa Mesa Disposal. Director Reade seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT ' Minutes — Board of Directors Meeting held July 13, 1995 Page 10 • C7 ENGINEER'S REPORT Project Status Report The Project Status Report was received and filed. Development Update Mr. Hamers advised there was nothing to report. Review of 1995 -96 Capital Improvement Projects - Boyle Engineering Mr. Hamers reported the 1995 -96 Capital Improvement Project review by Boyle Engineering will be on a forthcoming agenda. ATTORNEY'S REPORTS Annexation No. 249 • Resolution No. 95 -225A Final Acceptance Mr. Burns P resented the Resolution 95 -225A, A RESOLUTION OF THE BOARD OF • DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, COUNTY OF ORANGE, CALIFORNIA, ORDERING TERRITORY DESIGNATED AS ANNEXATION NO. 249 ANNEXED TO THE COSTA MESA SANITARY DISTRICT. Director Reade motioned to adopt Resolution 95 -225A. Director Schafer seconded. The motion to adopt Resolution 95 -225A was approved unanimously. OLD BUSINESS (Revisited) STATUS REPORT - PENDING ITEMS Mr. Hamers declared there is nothing to report, there are no pending items. 1995 TELEPHONE BOOK RECYCLING PROGRAM Mr. Hamers reported on the meeting of July 12, 1995, attended by Directors Ferryman and Worthington. Also in attendance were representatives from Donnelley, Pac Bell Directory and the State Integrated Waste Management Board. GTE representatives did not attend. • COSTA MESA SANITARY DISTRICT Minutes — Board of Directors Meeting held July 13, 1995 Page 11 Director Worthington reported on a program in use by Donnelley whereby a certificate for a free ice cream from Thrifty Drug Store is attached to the cover of the telephone book, redeemable at Thrifty with return of the telephone book for recycling. Pac Bell has an ongoing program with Von's Grocery who provides containers to recycle the telephone books. Director Worthington suggested pursuing other possible establishments to join a recycling program. President Ferryman related that Donnelley committed to contact Thrifty and Pac Bell will contact Von's to ascertain their interest in participation of a telephone book recycling program in Costa Mesa. Mr. Hamers related that with the participation of surrounding areas there may be an implementation of an 800 telephone number listed on every Pac Bell Directory telephone book that would refer the caller to a specific location in their own area to recycle their telephone book. Mr. Hamers mentioned that Director Ferryman convinced the Pac Bell Directory representative to continue reimbursing the District for advertising and administrative costs associated with the annual program. NEW BUSINESS Special Districts Risk Management Authority 1995 -96 Renewal Contribution rMr. Hamers presented to the Board the renewal contribution to the Special District Risk Management Authority. (SDRMA), dated May 15, 1995 in the amount of $5,837. Director Reade motioned to approve the renewal contribution. Director Perry seconded. Motion passed 5 -0. CA Special Districts Association Bylaw Change Mr. Hamers presented to the Board a letter from Mr. William Miller, President of the California Special Districts Association (CSDA), received June 29, 1995. The letter requested a vote on proposed bylaw changes. Director Schafer motioned to approve the proposed bylaw changes. Director Perry seconded. Motion to approve the proposed bylaw changes approved unanimously. Annual Conference — September, 1995 Mr. Hamers advised the Board of the annual conference of the CSDA to occur in September in Huntington Beach. Mr. Hamers recommended attendance and encouraged using the opportunity to hear CSDA advocate Mr. Ralph Heim speak. WARRANT REPORT • COSTA MESA SANITARY DISTRICT Minutes — Board of Directors Meeting held July 13, 1995 Page 12 Motion made by Director Perry, seconded by Director Schafer, authorizing the President and Secretary to sign Report No. 96 -01 instructing the Finance Department to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $452,605.51 with warrant number 753 to the City of Newport Beach in the amount of $1,092.67 to be withheld pending signature of final agreement. Motion carried 5 -0. ORAL COMMUNICATIONS Director Schafer invited all Board members to attend the fair. ADJOURNMENT At 2:27 p.m. Director Ferryman adjourned the meeting. Sec etary President it • • • •