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2015_01_22_board Regular Meeting - Thursday, January 22, 2015 Costa Mesa Sanitary District ... an Independent Special District AGENDA Michael Scheafer President Arthur Perry Vice President Robert Ooten Secretary Arlene Schafer Assistant Secretary James Ferryman Director Public Comments. Any member of the public may address the Board. Sp eakers on agenda items should identify themselves to the Depu ty 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. Pursuan t to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. S peakers must limit their remarks to three minutes or as dec ided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order . Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distr ibuted to all or a majority of the Board after the packet is prepared, a copy o f that writing may be obtained at the District offices at 628 W. 19 th Street, Costa Mesa, California. The Deputy Clerk of the District may b e contacted at (949) 645-8400. In Compliance with ADA: Contact Noelani Middenway, (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.1 04 ADA Title II). I.CALL TO ORDER II.PLEDGE OF ALLEGIANCE III.INVOCATION IV.ROLL CALL (If absences occur, consider whether to deem those absences excused based on facts presented for the absence - such determinatio n shall be the permission required by law.) V.Ceremonial Matters and Presentations VI.Announcement of Late Communications NOTE: Unless directed otherwise by the Board of Di rectors, all actions shall be based on/memorialized by the latest document submit ted as a late communication. VII.PUBLIC COMMENTS This time has been set aside for persons in the aud ience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda . Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Dir ectors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. VIII.CONSENT CALENDAR All matters listed on the consent calendar are cons idered to be routine and may be acted upon by one motion after public comment has b een received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent ca lendar as a whole. 1.Board of Directors Study Session Meeting Minutes of December 8, 2014 Recommendation: That the Board of Directors approv e and file. 2.Board of Directors Regular Meeting Minutes of Dec ember 18, 2014 Recommendation: That the Board of Directors approve and file. 3.Occupancy Report and Payment to CR&R Environmenta l Services Recommendation: That the Board of Directors: 1. Accepts the occupancy count as presented usin g 21,758 as the correct number of active units; 2. Direct staff to prepare a warrant to CR&R Env ironmental Services for December 2014 in the amount of $193,763.69 to be ra tified in the January 2015 warrant list. 4.Contract Payment to CR&R Environmental Services for Recycling & Disposal Services Recommendation: That the Board of Directors approv es payment to CR&R Environmental Services for recycling and disposal s ervices for the month of December 2014.5.Adoption of Warrant Resolution No. CMSD 2015-07 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. 2015-07 approving District warrants for the month of Dec ember 2014 in the amount of $850,654.45 6.Directors' Compensation and Reimbursement of Expe nses Recommendation: That the Board of Directors approv es Directors' compensation and reimbursement of expenses for the month of December 2014. 7.Sewer Lateral Assistance Program (SLAP) Update Recommendation: That the Board of Directors receiv e and file this report. 8.Adoption of Resolution No. 2015-856 Recommendation: That the Board of Directors adopt Resolution No. 2015-856 ordering the publication of Ordinance No. 102. 9.Adoption of Resolution No. 2015-857 Recommendation: That the Board of Directors adopt Resolution No. 2015-857 ordering the publication of Ordinance No. 103. ------------------------------- END OF CONSENT CALE NDAR-------------------------------IX.PUBLIC HEARINGS X.GENERAL MANAGER 10.Financial Statements for Fiscal Year Ended June 30, 2014 Recommendation: That the Board of Directors receive and file the Comprehensive Annual Financial Report, auditors’ report in accordance with Government Auditing Standards, and the auditors’ required communication for the fiscal year ended June 30, 2014. 11.Strategic Plan Progress Report Recommendation: That the Board of Directors receiv e and file the FY 2015-15 2nd Quarter Report regarding the FY 2010-15 Strateg ic Plan. 12.Schedule Special Meeting for Developing FY 2015-20 Strategic Plan Recommendation: That the Board of Directors schedu le a special meeting. 13.Mid Year Budget Update Recommendation: That the Board of Directors receiv e and file the report. XI.ENGINEER'S REPORTS 14.Project Status Report Recommendation: That the Board of Directors receiv e and file the report. XII.TREASURER'S REPORTS 15.Investment Report for the Month of December 2014 Recommendation: That the Board of Directors approv es the Investment Report for the month of December 2014.XIII.ATTORNEY'S REPORTS XIV.LOCAL MEETINGS In accordance with AB 1234 (Gov. Code 53232.3), a r eport is required to be given by a Director for any meeting for which expense reimbu rsement of any kind is provided. Note: For meetings for which the per die m compensation is sought, the Operations Code provides that such compensation is authorized for each day's service rendered as a Director at the request of t he Board (not to exceed six days in one month), and certain meetings are specified as b eing eligible as set forth in District Operations Code 3.01.030. For meetings no t so listed, the Board must approve the service for it to be eligible for the p er day compensation.) XV.OLD BUSINESS XVI.NEW BUSINESS XVII.ORAL COMMUNICATIONS AND DIRECTOR COMMENTS ADJOURN TO CLOSED SESSION TO: Discuss litigation with legal counsel pursuant to G overnment Code Section 54956.9: (a) In In regards to existing/anticipat ed litigation entitled Costa Mesa Sanitary District – Santa Ana Regional Water Quality Control Board Comp laint No. R8-2014-0017. (b) Anticipated litigation – significant exposure to litigation pursuant to Government Code 5456.9(d)(2),(e)(1) [Number of pote ntial cases: 1] RECONVENE TO OPEN SESSION XVIII.ADJOURNMENT THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DIS TRICT BOARD OF DIRECTORS WILL BE HELD ON FEBRUARY 26, 2014 AT 5 :30 P.M. IN THE DISTRICTS BOARD ROOM, 628 W. 19TH STREET. Costa Mesa Sanitary District ... an Independent Special District Board of Directors Study Session Meeting Minutes of December 8, 2014 Recommendation/Notes: Recommendation: That the Board of Directors approv e and file. Item Number:1. ATTACHMENTS:Description Type Minutes - Study Session 2014-12-08 Backup Material C OSTA M ESA S ANITARY D ISTRICT M INUTES OF B OARD OF D IRECTORS S TUDY S ESSION D ECEMBER 8, 2014 ______________________________________________________________________ C ALL TO O RDER The Board of Directors of the Costa Mesa Sanitary District met in study session on December 8, 2014 at 9:30 A.M. at 628 W. 19 th Street, Costa Mesa. R OLL C ALL D IRECTORS P RESENT : D IRECTORS A BSENT : James Ferryman, Michael Scheafer, Arthur Perry, Robert Ooten, Arlene Schafer None S TAFF P RESENT : Scott Carroll, General Manager; Robin Hamers, District Engineer; Wendy Davis, Finance Manager; Noelani Middenway, District Clerk; Denise Martinez, Interim Human Resources Manager; Javier Ochiqui, Management Assistant; Ed Roberts, Ordinance Enforcement Officer O THERS P RESENT : Jim Mosher, Resident; Lawrence Jones, CR&R P UBLIC C OMMENT President Ferryman invited members of the public to address the Board. Seeing none, President Ferryman closed public comments. I TEMS OF S TUDY 1. Recycling & Waste Diversion Reports – October an d November 2014 Recommendation: That the Board of Directors receiv e and file the report. There were no questions or comments and the report was received. 2. Ordinance Enforcement Officer Report – October a nd November 2014 Recommendation: That the Board of Directors receive and file the report. C OSTA M ESA S ANITARY D ISTRICT P AGE 2 M INUTES OF THE B OARD OF D IRECTORS S TUDY S ESSION H ELD D ECEMBER 8, 2014 ______________________________________________________________________ There were no questions or comments and the report was received. 3. OC Waste & Recycling Coordinator’s Meeting - Upd ate Recommendation: That the Board of Directors receiv e and file the report. There were no additional questions or comments and the report was received. 4. Organics Ad Hoc Committee Update – Oral Report Recommendation: That the Board of Directors receiv e and file the report. Scott Carroll, General Manager, discussed progress of the organics waste study program and grants received by Sally Geislar. Vice President Scheafer announced that the District will be meeting with videographer vendors to create a “how to” video for the organics recycling program. Assistant Secretary Ooten discussed the cart hanger contents and layout. There were no additional questions or comments and the report was received. 5. Street Sweeping – Oral Report Recommendation: That the Board of Directors provide direction to staff. General Manager Carroll provided background on the City’s street sweeping contract services and noted that the contract will be going out to bid. Mr. Carroll requested direction from the Board as to whether or not the District should consider offering administration services for the street swe eping service. Discussion followed regarding the responsibilities that would be assumed with the administration services of the street sweeping cont ract. Secretary Perry suggested staff have a discussion w ith the City to discuss the matter further. There were no additional questions or comments. 6. Invoicing Assessments on Exempt Properties – Ora l Report Recommendation: That the Board of Directors recei ve and file the report. Wendy Davis, Finance Manager, noted that the County of Orange Tax Assessor’s office will no longer assess tax exempt properties and it is the responsibility of the agency to directly invoice such properties. Ms. Davis indicat ed that the District will invoice approximately $171,000 and gave examples of the typ es of properties that will be invoiced. C OSTA M ESA S ANITARY D ISTRICT P AGE 3 M INUTES OF THE B OARD OF D IRECTORS S TUDY S ESSION H ELD D ECEMBER 8, 2014 ______________________________________________________________________ Jim Mosher, resident, questioned if there are exemp t non-governmental properties that will be assessed. Ms. Davis noted that there are, b ut those properties would be assessed through the County. There were no additional questions or comments and the report was received. 7. Sewer Rehabilitation Preliminary Plan Grade 4 – Oral Report Recommendation: That the Board of Directors direct staff to bring back the proposed preliminary plan to the December 18 th regular Board meeting for further direction. Robin Hamers, District Engineer, provided report de tails, noted that 255 Grade 5 repairs were made over a three year period. Grade 5 means imminent failure. There are and over 1600 Grade 4 line segments that require attent ion. Grade 4 means failure likely in foreseeable future. Mr. Hamers noted that the entir e sewer is being cleaned during the fiscal year, which should eliminate the Grade 4 mai ntenance issues. He further discussed options on how to address structural Grad e 4 issues and indicated that he will report back with additional options and noted that his office handles all of the plans and specifications for the repair program. Assistant Secretary Ooten requested that Mr. Hamers bring back a recommendation on when to CCTV the sewer line. Mr. Hamers suggested a good timeframe to CCTV the line would be between 10 to 15 years. Mr. Hamers indicated that he is currently reviewing videos and preparing plans for phase one of the Grade 4 repairs. Discussion followed regarding the possibility of th e drought conditions having an impact on the amount of inflow and infiltration, and possi bly using grant monies and the water bond to fund the Grade 4 repairs. Mr. Hamers indicated that he will report back to th e board with timeframes and additional options for consideration. There were no additional questions or comments and the report was received. 8. Coaching and Mentoring Program Recommendation: That the Board of Directors direct the General Manager to proceed implementing the proposed program. Denise Martinez, Interim Administrative Services Ma nager, provided details of a proposed coaching and mentoring program for Distric t staff to receive on the job training and development opportunities. Ms. Martinez discuss ed the scope and purpose of both the coaching program and mentoring program, noting that the staff member’s developmental goals will determine which method to be used. C OSTA M ESA S ANITARY D ISTRICT P AGE 4 M INUTES OF THE B OARD OF D IRECTORS S TUDY S ESSION H ELD D ECEMBER 8, 2014 ______________________________________________________________________ Discussion followed regarding how the program impac ts staff’s performance review, and whether or not the program was voluntary. Ms. Marti nez confirmed that the program is voluntary. Vice President Scheafer noted that the program is i mportant for succession planning. Assistant Secretary Ooten requested that the Board receive a periodic review of the program. The Board of Directors expressed support of the pro gram and directed staff to proceed with the program. There were no additional questions or comments and the report was received. 9. Consider Amending Section 3.01.090 Pertaining to Conferences, Travel and Expenses Recommendation: That the Board of Directors provid e direction to staff. Secretary Perry discussed attending out of county meetings that require Board approval prior to attending and suggested expanding the geographic region to be approved. Vice President Scheafer noted that once a Board me mber is appointed to a committee, he or she is not required to receive boa rd approval to attend said committees meetings and events. General Manager Carroll noted that the current pol icy applies to conferences, training seminars or any political activities. Discussion followed regarding expanding the geogra phic region to the entire State of California. The Board of Directors directed the General Manage r to place this item on the Board regular meeting agenda for discussion. Vice President Scheafer requested that credit card authorizations be arranged with the hotels for the duration of the board members st ay during conferences. Director Schafer requested agency photo identifica tion cards for the Board and staff. Ms. Davis suggested that conference expenses are i ncluded during the budget process, by which adoption of the budget constitute s prior approval of attending the conference. C OSTA M ESA S ANITARY D ISTRICT P AGE 5 M INUTES OF THE B OARD OF D IRECTORS S TUDY S ESSION H ELD D ECEMBER 8, 2014 ______________________________________________________________________ General Manager Carroll noted that he will place th e Ordinance on the upcoming Board agenda for consideration and approval. Mr. Mosher expressed concern regarding the Board m ember compensation for attending different meetings and conferences, recom mended not expanding the approved region to the entire state of California, and suggested that District Counsel read the rules in both the Government Code and Health and Safety Code. 10. Adopting Proclamation for Ed Fawcett, CEO/Presi dent of Costa Mesa Chamber of Commerce Recommendation: That the Board of Directors adopt the proclamation for Ed Fawcett. The Board of Directors expressed support of adoptin g a proclamation in honor of Ed Fawcett. Director Schafer made a motion to approve the procl amation as presented. Secretary Perry seconded the motion, which carried unanimously. 11. Composite Manhole Covers – Oral Report Recommendation: That the Board of Directors recei ve on display composite manhole covers. General Manager Carroll showed the Board samples of the composite manhole covers. Discussion followed regarding the benefits of compo site manhole covers, including the advancement of technology used to create the co vers, its durability, and cost effectiveness. 12. Wireless Technology for Sewer Maintenance Divis ion – Oral Report Recommendation: That the Board of Directors receiv e a demonstration from CMSD Maintenance Supervisor, Steve Cano, on ho w the maintenance division is using Microsoft Surface Pro 3 tablets a s part of their operations. General Manager Carroll continued this item to a fu ture meeting. 13. Ribbon Cutting Ceremony in the City of Corona f or Completion of the Santa Ana River Interceptor (SARI) Relocation Project Recommendation: That the Board of Directors approv e attending the ribbon cutting ceremony. General Manager Carroll noted that the event requir es Board approval to attend as it is outside of Orange County. C OSTA M ESA S ANITARY D ISTRICT P AGE 6 M INUTES OF THE B OARD OF D IRECTORS S TUDY S ESSION H ELD D ECEMBER 8, 2014 ______________________________________________________________________ Director Schafer made a motion to approve attending the ribbon cutting ceremony. Secretary Perry seconded the motion. Mr. Mosher provided public comment and suggested in cluding the distinction between a study session and a regular board meeting in the Operations Code. General Manager Carroll noted that the Board will o nly take actions on items that need immediate action and will not be able to be pl aced on the regular Board meeting agenda due to time constraints. Mr. Mosher suggested holding dual sessions such as a study session followed by a special meeting for business items needing approval . Director Schafer requested to hold a special meetin g to review the District’s policies and procedures. The motion carried unanimously. 14. Future Study Session Items Recommendation: That the Board of Directors provid e staff with direction on the type of items to be placed on future study s essions. Secretary Perry requested to discuss the status of the grade 4 repairs. Vice President Scheafer requested an update from Mi ke Carrey, Orange Coast College, on the recycling center expansion. O RAL C OMMUNICATIONS Vice President Scheafer discussed sewer odor issues and complimented staff on the work performed for during the force main break at P resident Pump Station. Director Schafer announced arrangements for the Dis trict’s Christmas party. A DJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 10:55 A.M. _________________________ _________________________ Art Perry James Ferryman C OSTA M ESA S ANITARY D ISTRICT P AGE 7 M INUTES OF THE B OARD OF D IRECTORS S TUDY S ESSION H ELD D ECEMBER 8, 2014 ______________________________________________________________________ Secretary President Costa Mesa Sanitary District ... an Independent Special District Board of Directors Regular Meeting Minutes of Decem ber 18, 2014 Recommendation/Notes: Recommendation: That the Board of Directors approve and file. Item Number:2. ATTACHMENTS:Description Type Minutes - Regular Meeting 2014-12-18 Cover Memo C OSTA M ESA S ANITARY D ISTRICT M INUTES OF B OARD OF D IRECTORS R EGULAR M EETING D ECEMBER 18, 2014 ______________________________________________________________________ C ALL TO O RDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on December 18, 2014 at 5:30P.M. at 628 W. 19 th Street, Costa Mesa. P LEDGE OF A LLEGIANCE I NVOCATION R OLL C ALL D IRECTORS P RESENT : D IRECTORS A BSENT : President Ferryman led the Pledge of Allegiance. Vice President Scheafer led the Invocation. James Ferryman, Michael Scheafer, Robert Ooten, Arthur Perry, Arlene Schafer None S TAFF P RESENT : Scott Carroll, General Manager; Alan Burns, District Counsel; Robin Hamers, District Engineer; Wendy Davis, Finance Manager; Marc Davis, District Treasurer, Javier Ochiqui, Management Analyst, Noelani Middenway, District Clerk O THERS P RESENT : Jim Mosher, Resident C EREMONIAL M ATTERS AND P RESENTATIONS – None A NNOUNCEMENT OF L ATE C OMMUNICATIONS – Scott Carroll, General Manager, noted receipt of written public comments from Mr. Jim Mos her and indicated that both Mr. Mosher’s remarks and Mr. Carroll’s response has bee n distributed to the Board for their review. P UBLIC C OMMENTS – President Ferryman invited members of the public to address the Board. C OSTA M ESA S ANITARY D ISTRICT P AGE 2 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ Seeing no one, President Ferryman closed public com ments. C ONSENT C ALENDAR 1. Board of Directors Regular Meeting Minutes of November 20, 2014 2. Occupancy report and payment to CR&R Environmental Services 3. Contract Payment to CR&R Environmental Services for Recycling and Disposal Services 4. Adoption of a Warrant Resolution No. CMSD 2015-06 Approving District Warrant Registers 5. Directors’ Compensation and Reimbursement of Expenses 6. Sewer Lateral Assistance Program (SLAP) Update 7. Investment Report 8. Costa Mesa Sanitary District 2015 Meeting Calendar The Board of Directors Regular Meeting Minutes of November 20, 2014, was approved as presented. The occupancy report and payment to CR&R Environmental Services for the month of November 2014 in the amount of $192,748.48 was approved as presented. The Board of Directors approved payment to CR&R Environmental Services for recycling and disposal services for the month of November 2014. The Board of Directors approved adoption of Warrant Resolution No. CMSD 2015-06 Approving District Warrant Registers for the month of November 2014 in the amount of $728,675.74. The Board of Directors approved the Director’s Compensation and Reimbursement of Expenses for the month of November as presented. The Board of Directors approved the SLAP report as presented. The Board of Directors approved the Investment Report for the month of November 2014 as presented. The Board of Directors approved the Costa Mesa Sanitary District 2015 meeting calendar as presented. E ND OF C ONSENT C ALENDAR Secretary Perry made a motion to approve the consen t calendar as presented. Vice C OSTA M ESA S ANITARY D ISTRICT P AGE 3 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ President Scheafer the motion, which carried unanim ously. P UBLIC H EARINGS - None G ENERAL M ANAGER ’S R EPORTS 9. Nominations and Appointments Recommendation: That the Board of Directors consi ders appointing new officers of the Board as well as appointing Board m embers to represent the District on local, regional and statewide committee s and organizations. President Ferryman made a motion to nominate and ap point Vice President Scheafer to the office of Board President. Secretar y Perry seconded the motion, which carried unanimously. Director Schafer made a motion to nominate and appo int Secretary Perry to the office of Vice President. Newly appointed President Scheafer seconded the motion, which carried unanimously. President Scheafer made a motion to nominate and ap point Assistant Secretary Ooten to the office of Secretary. Director Schafer seconded the motion, which carried unanimously. Vice President Perry made a motion to nominate and appoint Director Schafer to the office of Assistant Secretary. President Scheaf er seconded the motion, which carried unanimously. President Scheafer assumed the President’s seat to preside over the meeting from this point forward and expressed his thanks to his fellow board members for their support. President Scheafer asked for nominations f or appointments to the Orange County Sanitation District (OCSD) Board of Director s and the Santa Ana River Flood Protection Agency (SARFPA). Vice President Perry made a motion to nominate and appoint Director Ferryman to continue to serve on the OCSD Board of Directors. S ecretary Ooten seconded the motion, which carried unanimously. Assistant Secretary Schafer made a motion to nomina te and appoint Secretary Ooten to serve as the alternate on the OCSD Board o f Directors. Vice President Perry seconded the motion, which carried unanimousl y. Director Ferryman made a motion to nominate and app oint Vice President Perry to serve on SARFPA. Assistant Secretary Schafer second ed the motion, which carried unanimously. C OSTA M ESA S ANITARY D ISTRICT P AGE 4 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ There were no additional questions or comments and the report was received. 10. CMSD Contribution Program Recommendation: That the Board of Directors approv es the application from the Costa Mesa Community Run in the amount of $1,00 0. General Manager Carroll provided details of the Cos ta Mesa Community Run’s request for sponsorship of $1,000 and noted that th e sponsorship would allow for public education opportunities of District programs such as the organics recycling program. He discussed a recommendation received fro m Mr. Mosher suggesting that the District be a $500 sponsor and provide its own canopy, tables and chairs for the event. The Board concurred with the suggest ion. Vice President Perry made a motion to be a $500 spo nsor for the Costa Mesa Community Run. Assistant Secretary Schafer seconded the motion. General Manager Carroll noted that all advertising benefits of a $500 sponsorship will remain the same as a $1000 sponsor. Discussion followed regarding staff time and manpow er to set up and break down the canopy, tables and chairs. The motion carried unanimously. 11. Adopt Resolution No. 2014-855 Appointing Rudy D avila from Orange County Sanitation District as Alternate District Engineer Recommendation: That the Board of Directors adopts Resolution No. 2014-855 General Manager Carroll provided details of the res olution recommending the appointment of Rudy Davila of OCSD to serve as the District’s Alternate District Engineer and provided details of Mr. Davila’s backg round. Discussion followed indemnification and insurance r equirements of Mr. Davila. Mr. Carroll noted that Mr. Davila is covered by OCSD. Discussion ensued regarding payment for Mr. Davila’s services. Mr. Carroll noted that Mr. Davila is responsible for tracking his hou rs spent serving as the Alternate District Engineer for which OCSD will invoice the D istrict and payment will be remitted to OCSD. Vice President Perry made a motion to adopt Resolut ion No. 2014-855. Assistant Secretary Schafer seconded the motion, which carrie d unanimously. C OSTA M ESA S ANITARY D ISTRICT P AGE 5 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ 12. Adopt Ordinance No. 102 Amending Operations Cod e Section 3.01.045 Pertaining to Alternate District Engineer Recommendation: That the Board of Directors adopt Ordinance No. 102. General Manager Carroll recommended adopting Ordin ance No. 102 that will change the District’s Operations Code to obtain th e services of an Alternate District Engineer from both the private and public sector. Director Ferryman made a motion to adopt Ordinance No. 102. Assistant Secretary Schafer seconded the motion, which passed unanimou sly. 13. Adopt Ordinance No. 103 Amending Operations Cod e Section 3.01.090 Pertaining to Conferences, Travel and Expenses Recommendation: That the Board of Directors adopt Ordinance No. 103. General Manager discussed the proposed amendment to the District’s Operation’s Code that currently requires members of the Board t o receive approval to attend meetings, events and conferences that are outside o f Orange County and will now broaden the area to allow for the Board to attend m eetings, events and conferences throughout the State of California, provided that t he meetings are already on the list of approved meetings for attendance per diem. Assistant Secretary Schafer made a motion to adopt Ordinance No. 103. President Scheafer indicated that a request for pub lic comment had been received from Mr. Mosher and invited him to address the Boar d at this time. Mr. Mosher addressed the Board and expressed concer n regarding expanding the approved area for meeting attendance as he felt the existing ordinance was sufficient and prudent. Alan Burns, District Counsel, noted that the law pr ovides the Board to attend up to six meetings per month and that the Board has set f orth a list of pre-approved meetings that were deemed important and relative to the District. Mr. Burns discussed the reimbursement of travel and expense p olicy noting that the Board can be reimbursed for such expenses as long as it i s in a written policy adopted in a public meeting. Vice President Perry seconded the motion, which car ried unanimously. 14. Solid Waste Association of North America (SWANA ): The Road to Zero Waste Conference – March 16-19,. 2014, New Orleans, Louisiana Recommendation: That the Board of Directors consid ers sending staff to The Road to Zero Waste Conference in New Orleans, L ouisiana. C OSTA M ESA S ANITARY D ISTRICT P AGE 6 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ General Manager Carroll introduced the item and not ed that the SWANA conference will address financial, social, and syst em challenges in achieving Zero Waste goals and expressed support of sending a staf f member to attend the conference. Discussion followed regarding the workshop schedule and the possibility of sending a Board member to attend the conference. The Board of Directors requested that staff place t his item on a study session agenda to consider sending a Board member to the SW ANA conference. Assistant Secretary Schafer made a motion to approv e sending a staff member to the SWANA conference. Vice President Perry seconded the motion, which carried unanimously. E NGINEER ’S R EPORTS 15. Project Status Report Recommendation: That the Board of Directors rec eive and file the report. Mr. Jim Mosher provided public comment regarding t he Westside Pumping Station project and requested clarification on how the Dist rict is impacted by the Banning Ranch Project. Robin Hamers, District Engineer, provided details o f the Banning Ranch Project and noted that the District has not been contacted to p rovide sewer services. Discussion followed regarding OCSD’s meeting with t he Environmentalist on the project. There were no further questions or comments and th e report was received. 16. Project #206 – Sewer Rehabilitation Program Gr ade 4 Strategy Recommendation: That the Board of Directors consid ers the options described in the staff report and provide direction to the General Manager. District Engineer Hamers provided details of the G rade 4 Sewer Rehabilitation Program and what the capital costs would entails. Discussion followed. The Board of Directors requested that staff place this item on the February 10, 2015 study session agenda for further discussion. C OSTA M ESA S ANITARY D ISTRICT P AGE 7 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ There were no further questions or comments and th e report was received. T REASURER ’S R EPORTS - None A TTORNEY ’S R EPORTS - None L OCAL M EETINGS A. Orange County Sanitation District (OCSD) – (Directo r Ferryman) Recommendation: That the Board of Directors accep ts oral report. Director Ferryman reported on that several OCSD Boa rd members had not been re-appointed to the Board, and his attendance of a clo sed session. Secretary Ooten reported on the unfunded liability savings and discussed a fine that OCSD needs to pay to the Air Quality Management Dis trict. B. Santa Ana River Flood Protection Agency (SARFPA) – (Vice President Perry) Recommendation: That the Board of Directors accept s oral report. Vice President Perry reported on his attendance of the ribbon cutting ceremony of the Santa Ana Regional Interceptor. C. Independent Special Districts of Orange County (ISDOC) – (President Scheafer) Recommendation: That the Board of Directors accep ts oral report. President Scheafer noted that the Board will receiv e free ethics training if CSDA dues are paid by January 5, discussed the City of T ustin assuming responsibility of the city’s sewer line, and reports received from Bi ll Nelson and Kelly Hubbard. D. California Special Districts Association (CSDA) - (Director Schafer) Recommendation: That the Board of Directors accept s oral report. Assistant Secretary Schafer reported on her attenda nce of the CSDA meeting and noted that she will take office in January 2015 and will be on the Legislative Committee and Membership Committees. Vice President Perry reported on his attendance of the Special District Leadership Academy and discussed parliamentary rules of order that were addressed during the workshops. Discussion followed regarding the review of the Ope rations Code for legislative updates. C OSTA M ESA S ANITARY D ISTRICT P AGE 8 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ District Counsel Burns noted that he provides a mem o to the General Manager on any legislative updates that occur and staff implem ents the changes. E. Special District Risk Management Authority (SDRM A) – (Vice President Scheafer) Recommendation: That the Board of Directors accept s oral report. Nothing to report at this time. F. Other Meetings Qualifying for Reimbursement unde r CMSD Ordinance No. 55, Operations Code Section 3.01.030 Recommendation: That the Board of Directors accept s oral report. President Scheafer reported on his attendance of th e Water Advisory Committee of Orange County (WACO) meeting and discussed Kelly Hu bbard’s presentation. He also reported on the change of WACO leadership. Vice President Perry reported on his attendance of the Costa Mesa City Council meeting and the council’s reorganization. O LD B USINESS - None New Business - None O RAL C OMMUNICATIONS AND D IRECTOR C OMMENTS Director Ferryman said that it was an honor to serv e as President for the past two years and felt that a lot was accomplished. He thanked th e General Manager and staff for their support. President Scheafer thanked the Board again for thei r confidence and support. Vice President Perry suggested placing health care costs at a future study session meeting. President Scheafer suggested discussing creating a health savings account in addition to the health care plan. Vice President Perry requested an updated list of s taff’s contact information. Secretary Ooten requested that staff include events in conjunction with Orange Coast College in the publication of “One Persons Trash”. Vice President Perry requested to add the Board of Directors names be placed on the p ublication as a roster. C OSTA M ESA S ANITARY D ISTRICT P AGE 9 M INUTES OF THE B OARD OF D IRECTORS R EGULAR M EETING H ELD D ECEMBER 18, 2014 ______________________________________________________________________ Secretary Ooten requested to discuss the asset mana gement fund. He also requested a status update on the downspouts installed at the El den Pump Station. A DJOURN T O C LOSED S ESSION TO DISCUSS LITIGATION WITH LEGAL COUNSEL PUR SUANT TO G OVERNMENT C ODE S ECTION 54956.9: (a) In regards to existing/anticipated litigation entitled Costa Mesa Sanitary District – Santa Ana Regional Water Quality Control Board Comp laint No. R8-2014-0017. (b) Anticipated litigation – significant exposure to litigation pursuant to Government Code 5456.9(d)(2),(e)(1) [Number of potential cases : 1] President Scheafer adjourned to closed session at 6 :48 P.M. President Scheafer reconvened to open session at 7:07 P.M. and reported out that the General Manager has received direction from the Boa rd on how to proceed. A DJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 7:08 P.M. _________________________ _________________________ Robert Ooten Michael Scheafer Secretary President Costa Mesa Sanitary District ... an Independent Special District Occupancy Report and Payment to CR&R Environmental Services Recommendation/Notes: Recommendation: That the Board of Directors: 1. Accepts the occupancy count as presented usin g 21,758 as the correct number of active units; 2. Direct staff to prepare a warrant to CR&R Env ironmental Services for December 2014 in the amount of $193,763.69 to be ratified in the Jan uary 2015 warrant list. Item Number:3. ATTACHMENTS:Description Type December 2014 Occupancy Report Cover Memo Attachment Cover Memo Protecting our community's health and the environment b y providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Javier Ochiqui, Management Analyst Date: January 22, 2015 Subject: OCCUPANCY REPORT AND PAYMENT TO CR&R ENVIR ONMENTAL SERVICES Summary The total occupancy count for December 2014 billing is 21,758, with one hundred and fourteen accounts added since the last billing peri od. CR&R recently adjusted their customer list to reflect all active accounts. CMSD has reviewed and approved the revised list. Staff Recommendation Staff recommends the following: 1. The Board of Directors accepts the occupancy cou nt as presented using 21,758 as the correct number of active units. 2. The Board of Directors directs staff to prepare a warrant to CR&R Environmental Services for December 2014 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $193,763.6 9 to be ratified in the January 2015 warrant list. Calculation based on current rate: 21,758 X $8.9054 = $193,763.69 Costa Mesa Sanitary District Occupancy Report December 2014 Total Accounts 21,758 35 gallon carts 627 60 gallon carts 28898 90 gallon carts 14830 Total Carts 44,355 Cart Delivery Information/S Service Address Date Delivered 1801 OCEAN CT 949 5481376 12/3/2014 60 GAL BARREL DELIVERY 141 TRIBECA WAY 949 2334783 12/8/2014 60 GAL BARREL DELIVERY 1805 OCEAN CT 949 9334488 12/9/2014 60 GAL BARREL DELIVERY 1530 SULLIVAN AVE 949 9296416 12/12/2014 60 GAL BARREL DELIVERY 1534 SULLIVAN AVE 949 6372401 12/12/2014 60 GAL BARREL DELIVERY 2186 HARMONY WAY 949 3024307 12/15/2014 60 GAL BARREL DELIVERY 137 TRIBECA WAY 714 2256386 12/22/2014 60 GAL BARREL DELIVERY 1526 SULLIVAN AVE 818 6676001 12/22/2014 60 GAL BARREL DELIVERY 1524 SULLIVAN AVE 949 9229010 12/24/2014 60 GAL BARREL DELIVERY Data Base Corrections Account Name Service Address Date Adjusted Account RESIDENT 343 18TH ST 11-2014 Adjusted Account / Change start date to current RESIDENT 402 BROADWAY 949 9810805 11-2014 Adjusted Account / Change start date to current RESIDENT 3089 KLONDIKE AVE 714 4207676 11-2014 Adjusted Account / Change start date to current Telephone #Telephone # RESIDENT 2453 ORANGE AVE 0 111 11-2014 Adjusted Account / Change start date to current RESIDENT 2912 PEPPER TREE LN 11-2014 Adjusted Account / Change start date to current RESIDENT 2044 REPUBLIC 714 4487263 11-2014 Adjusted Account / Change start date to current RESIDENT 1973 TUSTIN AVE 11-2014 Adjusted Account / Change start date to current RESIDENT 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current RESIDENT 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current WATERPOINT DEVELOPMENT 2453 ORANGE AVE 949 6448900 11-2014 Adjusted Account / Change start date to current 2453 ORANGE AVENUE LLC 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current RESIDENT 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current RESIDENT 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current RESIDENT 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current 2453 ORANGE AVENUE LLC 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current RESIDENT 2453 ORANGE AVE 11-2014 Adjusted Account / Change start date to current RESIDENT 343 18TH ST 949 6453618 11-2014 Adjusted Account / Change start date to current RESIDENT 343 18TH ST 11-2014 Adjusted Account / Change start date to current RESIDENT 343 18TH ST 11-2014 Adjusted Account / Change start date to current RESIDENT 343 18TH ST 949 6428502 11-2014 Adjusted Account / Change start date to current RESIDENT 343 18TH ST 11-2014 Adjusted Account / Change start date to current RESIDENT 2912 PEPPER TREE LN 11-2014 Adjusted Account / Change start date to current RESIDENT 2912 PEPPER TREE LN 11-2014 Adjusted Account / Change start date to current RESIDENT 2912 PEPPER TREE LN 11-2014 Adjusted Account / Change start date to current RESIDENT 335 MONTE VISTA AVE 949 6456406 11-2014 Adjusted Account / Change start date to current RESIDENT 2860 LA SALLE 11-2014 Adjusted Account / Change start date to current RESIDENT 389 21ST ST 949 3752756 11-2014 Adjusted Account / Change start date to current RESIDENT 387 21ST ST 949 3752756 11-2014 Adjusted Account / Change start date to current RESIDENT 1751 WESTMINSTER AVE 714 8666325 11-2014 Adjusted Account / Change start date to current RESIDENT 2053 POMONA 949 6452390 11-2014 Adjusted Account / Change start date to current RESIDENT 2053 POMONA 949 6452390 11-2014 Adjusted Account / Change start date to current RESIDENT 2404 NARBONNE 949 3097359 11-2014 Adjusted Account / Change start date to current RESIDENT 2959 BABB ST 830 9288448 11-2014 Adjusted Account / Change start date to current RESIDENT 2036 CAPELLA CT 714 3940133 11-2014 Adjusted Account / Change start date to current RESIDENT 132 WILSON ST 949 4845250 11-2014 Adjusted Account / Change start date to current RESIDENT 2039 POMONA 714 2674332 11-2014 Adjusted Account / Change start date to current RESIDENT 220 SIERKS 949 6466537 11-2014 Adjusted Account / Change start date to current RESIDENT 227 20TH ST 949 6306737 11-2014 Adjusted Account / Change start date to current RESIDENT 681 VICTORIA ST 949 6459000 11-2014 Adjusted Account / Change start date to current RESIDENT 2606 ELDEN AVE 310 9021057 11-2014 Adjusted Account / Change start date to current RESIDENT 283 16TH ST 949 5847425 11-2014 Adjusted Account / Change start date to current RESIDENT 2747 SAN JUAN 949 3787422 11-2014 Adjusted Account / Change start date to current RESIDENT 2229 ELDEN AVE 949 4007193 11-2014 Adjusted Account / Change start date to current RESIDENT 648 18TH ST 714 9999999 11-2014 Adjusted Account / Change start date to current RESIDENT 1505 PEGASUS ST 714 9999999 11-2014 Adjusted Account / Change start date to current RESIDENT 2463 IRVINE AVE 949 9330121 11-2014 Adjusted Account / Change start date to current RESIDENT 2407 VENIER WAY 661 8778654 11-2014 Adjusted Account / Change start date to current RESIDENT 2431 ORANGE AVE 949 2259302 11-2014 Adjusted Account / Change start date to current RESIDENT 2910 ELLESMERE 773 9729680 11-2014 Adjusted Account / Change start date to current RESIDENT 145 LISA LN 949 3130845 11-2014 Adjusted Account / Change start date to current RESIDENT 1829 SANTA ANA AVE 949 6451548 11-2014 Adjusted Account / Change start date to current RESIDENT 1829 SANTA ANA AVE 949 6451548 11-2014 Adjusted Account / Change start date to current RESIDENT 2988 ROYAL PALM 714 7173126 11-2014 Adjusted Account / Change start date to current RESIDENT 2242 ORCHARD DR 714 6259513 11-2014 Adjusted Account / Change start date to current RESIDENT 3017 KILLYBROOKE LN 949 2289128 11-2014 Adjusted Account / Change start date to current RESIDENT 314 ROCHESTER ST 949 3076593 11-2014 Adjusted Account / Change start date to current RESIDENT 2770 MENDOZA DR 714 9044815 11-2014 Adjusted Account / Change start date to current RESIDENT 982 CHEYENNE ST 714 2008854 11-2014 Adjusted Account / Change start date to current RESIDENT 327 WILSON ST 714 9255453 11-2014 Adjusted Account / Change start date to current RESIDENT 20302 RIVERSIDE DR 714 5570444 11-2014 Adjusted Account / Change start date to current RESIDENT 1592 RIVERSIDE PL 949 3783009 11-2014 Adjusted Account / Change start date to current RESIDENT 303 RAMONA PL 949 6463108 11-2014 Adjusted Account / Change start date to current RESIDENT 126 MELODY LN 949 2435076 11-2014 Adjusted Account / Change start date to current RESIDENT 380 LA CANADA WAY 949 6125790 11-2014 Adjusted Account / Change start date to current RESIDENT 275 WALNUT 949 6456240 11-2014 Adjusted Account / Change start date to current RESIDENT 2184 PACIFIC AVE 562 7738997 11-2014 Adjusted Account / Change start date to current RESIDENT 2563 ORANGE AVE 949 6469814 11-2014 Adjusted Account / Change start date to current RESIDENT 2084 THURIN ST 646 6426524 11-2014 Adjusted Account / Change start date to current RESIDENT 1831 COASTAL WAY 949 8721935 11-2014 Adjusted Account / Change start date to current RESIDENT 2161 HARMONY WAY 949 6320964 11-2014 Adjusted Account / Change start date to current RESIDENT 2651 BOWDOIN PL 714 3286587 11-2014 Adjusted Account / Change start date to current RESIDENT 3322 MARYLAND CIR 949 3106520 11-2014 Adjusted Account / Change start date to current RESIDENT 2671 CLUB MESA PL 949 7227478 11-2014 Adjusted Account / Change start date to current RESIDENT 726 WILSON 949 6980843 11-2014 Adjusted Account / Change start date to current RESIDENT 1755 NEW HAMPSHIRE 714 9364163 11-2014 Adjusted Account / Change start date to current RESIDENT 3191 HAITI CIR 714 2097752 11-2014 Adjusted Account / Change start date to current RESIDENT 2606 ELDEN AVE 661 3408900 11-2014 Adjusted Account / Change start date to current RESIDENT 1971 WALLACE 949 3075303 11-2014 Adjusted Account / Change start date to current RESIDENT 2056 MAPLE AVE 949 3078527 11-2014 Adjusted Account / Change start date to current RESIDENT 3104 PIERCE AVE 949 4644488 11-2014 Adjusted Account / Change start date to current RESIDENT 2512 DAVIS PL 949 6314448 11-2014 Adjusted Account / Change start date to current RESIDENT 249 22ND ST 949 3072651 11-2014 Adjusted Account / Change start date to current RESIDENT 195 ALBERT PL 949 3029616 11-2014 Adjusted Account / Change start date to current RESIDENT 914 20TH ST 949 6456065 11-2014 Adjusted Account / Change start date to current RESIDENT 2004 REPUBLIC 949 8780531 11-2014 Adjusted Account / Change start date to current RESIDENT 2873 BALLOW LN 714 4687513 11-2014 Adjusted Account / Change start date to current RESIDENT 1091 SALVADOR ST 714 4781166 11-2014 Adjusted Account / Change start date to current RESIDENT 1168 ATLANTA WAY 310 4394165 11-2014 Adjusted Account / Change start date to current RESIDENT 275 CABRILLO 949 6308326 11-2014 Adjusted Account / Change start date to current RESIDENT 2304 LA LINDA PL 949 4638693 11-2014 Adjusted Account / Change start date to current RESIDENT 2063 TUSTIN AVE 949 5151714 11-2014 Adjusted Account / Change start date to current RESIDENT 3054 VAN BUREN AVE 214 9121008 11-2014 Adjusted Account / Change start date to current RESIDENT 1894 PARKCREST 714 8993988 11-2014 Adjusted Account / Change start date to current RESIDENT 3104 ROOSEVELT WAY 818 4453511 11-2014 Adjusted Account / Change start date to current RESIDENT 671 WILSON ST 714 8836327 11-2014 Adjusted Account / Change start date to current RESIDENT 3074 YELLOWSTONE DR 714 2004468 11-2014 Adjusted Account / Change start date to current RESIDENT 961 UNION 949 7912335 11-2014 Adjusted Account / Change start date to current RESIDENT 932 CORONADO DR 949 2783898 11-2014 Adjusted Account / Change start date to current RESIDENT 3489 VENETIAN DR 714 6441449 11-2014 Adjusted Account / Change start date to current RESIDENT 2935 ELLESMERE 714 4442539 11-2014 Adjusted Account / Change start date to current RESIDENT 1804 IOWA 714 5462875 11-2014 Adjusted Account / Change start date to current RESIDENT 801 PRESIDIO DR 714 9328428 11-2014 Adjusted Account / Change start date to current RESIDENT 1955 ANAHEIM AVE 714 3963589 11-2014 Adjusted Account / Change start date to current RESIDENT 1097 CORONA LN 714 9558995 11-2014 Adjusted Account / Change start date to current RESIDENT 1501 PEGASUS ST 714 3621674 11-2014 Adjusted Account / Change start date to current RESIDENT 2245 RALEIGH AVE 949 7019314 11-2014 Adjusted Account / Change start date to current RESIDENT 3106 FERNHEATH LN 714 3081835 11-2014 Adjusted Account / Change start date to current RESIDENT 977 BEGONIA AVE 310 9975245 11-2014 Adjusted Account / Change start date to current RESIDENT 2033 NATIONAL AVE 949 9330466 11-2014 Adjusted Account / Change start date to current RESIDENT 316 SANTA ISABEL 949 4223508 11-2014 Adjusted Account / Change start date to current RESIDENT 156 COSTA MESA ST 949 5845683 11-2014 Adjusted Account / Change start date to current RESIDENT 1751 MONROVIA AVE 949 2149494 11-2014 Adjusted Account / Change start date to current RESIDENT 1779 KENWOOD PL 714 3293248 11-2014 Adjusted Account / Change start date to current RESIDENT 686 JOANN ST 949 6506633 11-2014 Adjusted Account / Change start date to current RESIDENT 2336 ELDEN AVE 714 2815822 11-2014 Adjusted Account / Change start date to current RESIDENT 1788 ORIOLE DR 608 3359610 11-2014 Adjusted Account / Change start date to current Costa Mesa Sanitary District ... an Independent Special District Contract Payment to CR&R Environmental Services for Recycling & Disposal Services Recommendation/Notes: Recommendation: That the Board of Directors approv es payment to CR&R Environmental Services for recycling and disposal services for th e month of December 2014. Item Number:4. ATTACHMENTS:Description Type Contract Payment to CR&R - December 2014 Backup Material Costa Mesa Sanitary District ... an Independent Special District Adoption of Warrant Resolution No. CMSD 2015-07 App roving District Warrant Registers Recommendation/Notes: Recommendation: That the Board of Directors adopt Warrant Resolution No. 2015-07 approving District warrants for the month of Decemb er 2014 in the amount of $850,654.45 Item Number:5. ATTACHMENTS:Description Type Warrant Reso CMSD 2015-07 Resolution Letter Checks for Approval Dec 2014 Backup Material BofA Statement Dec 2015 Backup Material COSTA MESA SANITARY DISTRICT Warrant Resolution No. CMSD 20 15 -0 7 A RESOLUTION OF THE COSTA MESA SANITARY DISTRICT RATIFYING THE PAYMENT OF C ERTAIN CLAIMS AND DEMANDS, AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME WERE PAID. THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT DOES HEREBY ORDER AND RESOLVE AS FOLLOWS: Section 1. That the attached claims and demands totaling $850 ,654.45 h ave been audited as required by law and that the same were paid out of resp e ctive fund s as hereinafter set for th. Section 2 . That the Clerk of the District shall certify to the adoption of this Resolution and shall retain a certified copy thereof in his own records. PASSED AND ADOPTED this 22nd day of January 2015 . ATTEST: Secretary President STAT E OF CALIFORNIA ) COUNTY OF ORANGE ) ss COSTA MESA SANITARY DISTRICT ) I, Noelani Middenway, District Clerk of the Costa Mesa Sanitary District, hereby certify that the foregoing Warrant Resolution No. CMSD 201 5 -0 7 was duly adopted by the Costa Mesa S anitary District at a regular meeting held on the 22 nd day of January 2015 . AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the Costa Mesa Sanitary District on this 22nd d ay of January 201 5 . District Clerk of the Costa Mesa Sanitary District Accounts Payable Checks for Approval User: ktran Printed: 01/07/2015 - 8:22 AM Check Number Check DateFund NameAccount NameVendor NameAmount 012/08/2014Liquid Waste FundBenefits Admin CostsCal PERS 178.50 012/08/2014Liquid Waste FundSewer Maint-Benefit AdminCal PERS 59.50 012/08/2014Liquid Waste FundPERS MedicalCal PERS 10,016.66 012/08/2014Solid Waste FundBenefits Admin CostsCal PERS 4.49 012/08/2014Liquid Waste FundBenefits Admin CostsCal PERS 40.37 Check Total: 10,299.52 012/10/2014Liquid Waste FundState Withholding TaxesEmployment Development Departm 1,853.34 Check Total: 1,853.34 012/10/2014Liquid Waste FundFederal Withholding TaxesInternal Revenue Service 5,324.42 012/10/2014Liquid Waste FundMedicare - EmployeeInternal Revenue Service 602.33 012/10/2014Liquid Waste FundMedicare - EmployeeInternal Revenue Service 602.33 Check Total: 6,529.08 012/10/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 7.04 012/10/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 48.03 012/10/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 97.00 012/10/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 786.68 012/10/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 1,928.25 012/10/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 3,837.36 012/10/2014Liquid Waste FundPERS Survivor BenefitCal Pers Employee Ret System 13.02 012/10/2014Liquid Waste FundPERS - EmployerCal Pers Employee Ret System 0.01 Check Total: 6,717.39 012/24/2014Liquid Waste FundState Withholding TaxesEmployment Development Departm 101.29 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 1 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 101.29 012/24/2014Liquid Waste FundFederal Withholding TaxesInternal Revenue Service 458.54 012/24/2014Liquid Waste FundFICA - EmployeeInternal Revenue Service 31.00 012/24/2014Liquid Waste FundFICA - EmployeeInternal Revenue Service 31.00 012/24/2014Liquid Waste FundMedicare - EmployeeInternal Revenue Service 83.39 012/24/2014Liquid Waste FundMedicare - EmployeeInternal Revenue Service 83.39 Check Total: 687.32 012/24/2014Liquid Waste FundState Withholding TaxesEmployment Development Departm 1,948.47 Check Total: 1,948.47 012/24/2014Liquid Waste FundFederal Withholding TaxesInternal Revenue Service 5,502.28 012/24/2014Liquid Waste FundMedicare - EmployeeInternal Revenue Service 646.24 012/24/2014Liquid Waste FundMedicare - EmployeeInternal Revenue Service 646.24 Check Total: 6,794.76 012/24/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 7.04 012/24/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 48.03 012/24/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 97.00 012/24/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 786.68 012/24/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 1,969.86 012/24/2014Liquid Waste FundPERS RetirementCal Pers Employee Ret System 3,880.25 012/24/2014Liquid Waste FundPERS Survivor BenefitCal Pers Employee Ret System 13.02 012/24/2014Liquid Waste FundPERS - EmployerCal Pers Employee Ret System -0.01 Check Total: 6,801.87 012/26/2014Solid Waste FundEquipment MaintenanceAutomatic Data Processing, Inc 7.40 012/26/2014Liquid Waste FundEquipment MaintenanceAutomatic Data Processing, Inc 66.55 Check Total: 73.95 012/03/2014Solid Waste FundInvestment EarningsBank of America 180.48 Check Total: 180.48 012/15/2014Solid Waste FundInvestment EarningsBank of America 331.75 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 2 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 331.75 1325512/12/2014Solid Waste FundComputer Licenses & MaintAccela, Inc. 300.00 1325512/12/2014Liquid Waste FundComputer Licenses & MaintAccela, Inc. 2,700.00 Check Total: 3,000.00 1325612/12/2014Liquid Waste FundEmployee InsuranceAFLAC 983.80 Check Total: 983.80 1325712/12/2014Liquid Waste FundCharges For ServicesE C TR Alsenz 4,509.75 Check Total: 4,509.75 1325812/12/2014Liquid Waste FundSewer Maint-TelephoneAT&T 144.97 1325812/12/2014Solid Waste FundTelephoneAT&T 42.95 1325812/12/2014Liquid Waste FundTelephoneAT&T 386.59 1325812/12/2014Solid Waste FundTelephoneAT&T 8.02 1325812/12/2014Liquid Waste FundTelephoneAT&T 72.18 Check Total: 654.71 1325912/12/2014Liquid Waste FundContract ServicesBruce Mattern 698.25 Check Total: 698.25 1326012/12/2014Solid Waste FundTelephoneBirch Communications 43.83 1326012/12/2014Liquid Waste FundTelephoneBirch Communications 394.52 1326012/12/2014Liquid Waste FundSewer Maint-TelephoneBirch Communications 423.13 Check Total: 861.48 1326112/12/2014Solid Waste FundLegal ServicesAlan R. Burns 874.23 1326112/12/2014Liquid Waste FundLegal ServicesAlan R. Burns 1,623.57 1326112/12/2014Liquid Waste FundLegal ServicesAlan R. Burns 3,439.00 1326112/12/2014Solid Waste FundLegal ServicesAlan R. Burns 36.20 Check Total: 5,973.00 1326212/12/2014Solid Waste FundEquipment MaintenanceC3 Office Solutions LLC 28.59 1326212/12/2014Liquid Waste FundEquipment MaintenanceC3 Office Solutions LLC 257.27 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 3 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 285.86 1326312/12/2014Solid Waste FundFiscal ServicesCBIZ MHM, LLC 509.32 1326312/12/2014Liquid Waste FundFiscal ServicesCBIZ MHM, LLC 945.88 Check Total: 1,455.20 1326412/12/2014Liquid Waste FundSewer Maint-Equipment MaintCity of Costa Mesa 845.47 Check Total: 845.47 1326512/12/2014Solid Waste FundComputer Licenses & MaintCoreLogic Solutions, LLC 15.00 1326512/12/2014Liquid Waste FundComputer Licenses & MaintCoreLogic Solutions, LLC 135.00 Check Total: 150.00 1326612/12/2014Solid Waste FundRecycling/DisposalCR Transfer, Inc. 174,590.10 1326612/12/2014Solid Waste FundRecycling/DisposalCR Transfer, Inc. -650.14 1326612/12/2014Solid Waste FundRecycling/DisposalCR Transfer, Inc. 11,310.76 Check Total: 185,250.72 1326712/12/2014Solid Waste FundHousehold Hazardous WasteCR Transfer, Inc. 196.00 Check Total: 196.00 1326812/12/2014Liquid Waste FundPostageFedEx 33.96 Check Total: 33.96 1326912/12/2014Liquid Waste FundSewer Maint-Gas BldgThe Gas Company 20.68 Check Total: 20.68 1327012/12/2014Liquid Waste FundForce Main Upgrades #200GCI Construction, Inc. 4,532.61 Check Total: 4,532.61 1327112/12/2014Solid Waste FundEquipment MaintenanceGE Capital 31.63 1327112/12/2014Liquid Waste FundEquipment MaintenanceGE Capital 284.66 1327112/12/2014Solid Waste FundEquipment MaintenanceGE Capital 28.92 1327112/12/2014Liquid Waste FundEquipment MaintenanceGE Capital 260.29 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 4 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 605.50 1327212/12/2014Solid Waste FundComputer Licenses & MaintGFI Software 1,976.40 1327212/12/2014Liquid Waste FundComputer Licenses & MaintGFI Software 1,976.40 Check Total: 3,952.80 1327312/12/2014Liquid Waste FundEngineering/Architectual ServRobin B. Hamers & Assoc., Inc. 1,530.00 1327312/12/2014Liquid Waste FundEngineering/Architectual ServRobin B. Hamers & Assoc., Inc. 1,890.00 1327312/12/2014Liquid Waste FundPlan Ck/Inspection-InsideRobin B. Hamers & Assoc., Inc. 157.50 1327312/12/2014Liquid Waste FundPlan Ck/Inspection-InsideRobin B. Hamers & Assoc., Inc. 5,792.50 1327312/12/2014Liquid Waste FundPlan Ck/Inspection-OutsideRobin B. Hamers & Assoc., Inc. 1,102.50 1327312/12/2014Liquid Waste FundPlan Ck/Inspection-OutsideRobin B. Hamers & Assoc., Inc. 1,382.50 1327312/12/2014Liquid Waste FundPlan Ck/Inspection-Swr LateralRobin B. Hamers & Assoc., Inc. 210.00 1327312/12/2014Liquid Waste FundPlan Ck/Inspection-Swr LateralRobin B. Hamers & Assoc., Inc. 1,102.50 1327312/12/2014Liquid Waste FundContract ServicesRobin B. Hamers & Assoc., Inc. 315.00 1327312/12/2014Liquid Waste FundWestside Aband#101-Cont SvcRobin B. Hamers & Assoc., Inc. 2,750.25 1327312/12/2014Liquid Waste FundPump Stn Emerg. Eqpt. #196Robin B. Hamers & Assoc., Inc. 289.50 1327312/12/2014Liquid Waste FundPump Stn Emerg. Eqpt. #196Robin B. Hamers & Assoc., Inc. 96.75 1327312/12/2014Liquid Waste FundPump Stn Emerg. Eqpt. #196Robin B. Hamers & Assoc., Inc. 144.75 1327312/12/2014Liquid Waste FundPump Stn Emerg. Eqpt. #196Robin B. Hamers & Assoc., Inc. 161.25 1327312/12/2014Liquid Waste FundForce Main Upgrades #200Robin B. Hamers & Assoc., Inc. 1,206.25 1327312/12/2014Liquid Waste FundForce Main Upgrades #200Robin B. Hamers & Assoc., Inc. 354.75 1327312/12/2014Liquid Waste FundManhole Cover Repairs #204Robin B. Hamers & Assoc., Inc. 105.00 1327312/12/2014Liquid Waste FundManhole Cover Repairs #204Robin B. Hamers & Assoc., Inc. 140.00 1327312/12/2014Liquid Waste FundGrade 4 CCTV Improvements Ph1Robin B. Hamers & Assoc., Inc. 8,977.50 1327312/12/2014Liquid Waste FundHarbor PS Generator #307Robin B. Hamers & Assoc., Inc. 210.00 1327312/12/2014Liquid Waste FundHarbor PS Generator #307Robin B. Hamers & Assoc., Inc. 385.00 Check Total: 28,303.50 1327412/12/2014Solid Waste FundPublic Info/Ed/Community PromoInternational E-Z UP, Inc. 743.44 1327412/12/2014Liquid Waste FundPublic Info/Ed/Community PromoInternational E-Z UP, Inc. 1,380.64 Check Total: 2,124.08 1327512/12/2014Solid Waste FundProf Membership/DuesInternational Public Mgmt Asso 14.90 1327512/12/2014Liquid Waste FundProf Membership/DuesInternational Public Mgmt Asso 134.10 Check Total: 149.00 1327612/12/2014Solid Waste FundContract ServicesFrancene E. Kaplan PH.D. 200.00 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 5 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 200.00 1327712/12/2014Liquid Waste FundSewer Maint-Swr Lateral ProgDeborah Lewan 900.00 Check Total: 900.00 1327812/12/2014Liquid Waste FundSewer Maint-Water BldgMesa Water District 21.00 1327812/12/2014Liquid Waste FundSewer Maint- Water PumpsMesa Water District 27.54 1327812/12/2014Liquid Waste FundSewer Maint- Water PumpsMesa Water District 21.00 Check Total: 69.54 1327912/12/2014Liquid Waste FundSewer Maint-Small Tools/EqNational Meter & Automation, I 615.72 1327912/12/2014Liquid Waste FundCapital OutlayNational Meter & Automation, I 17,172.00 Check Total: 17,787.72 1328012/12/2014Solid Waste FundBuilding MaintenanceOrange Coast Electric 488.50 1328012/12/2014Liquid Waste FundBuilding MaintenanceOrange Coast Electric 4,396.50 Check Total: 4,885.00 1328112/12/2014Liquid Waste FundDue to OCSDOrange County Sanitation Distr 24,863.06 1328112/12/2014Liquid Waste FundOCSD Fees-CMSD ShareOrange County Sanitation Distr -1,243.15 Check Total: 23,619.91 1328212/12/2014Solid Waste FundProfessional ServicesOrange County Sanitation Distr 921.60 1328212/12/2014Liquid Waste FundProfessional ServicesOrange County Sanitation Distr 8,294.40 Check Total: 9,216.00 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 2.16 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 19.42 1328312/12/2014Solid Waste FundBoard DevelopmentOffice Depot 2.78 1328312/12/2014Liquid Waste FundBoard DevelopmentOffice Depot 24.97 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 7.87 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 0.88 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 0.86 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 7.76 1328312/12/2014Solid Waste FundOffice SuppliesOffice Depot 9.57 1328312/12/2014Liquid Waste FundOffice SuppliesOffice Depot 86.17 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 6 Check Number Check DateFund NameAccount NameVendor NameAmount 1328312/12/2014Liquid Waste FundSmall Tools/EquipmentOffice Depot 15.23 1328312/12/2014Solid Waste FundSmall Tools/EquipmentOffice Depot 1.69 1328312/12/2014Solid Waste FundOffice SuppliesOffice Depot 5.00 1328312/12/2014Liquid Waste FundOffice SuppliesOffice Depot 44.99 1328312/12/2014Solid Waste FundSmall Tools/EquipmentOffice Depot 1.84 1328312/12/2014Liquid Waste FundSmall Tools/EquipmentOffice Depot 16.58 1328312/12/2014Liquid Waste FundSewer Maint-Bldg MaintOffice Depot 7.79 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 7.00 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 0.78 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 2.15 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 19.34 1328312/12/2014Solid Waste FundBoard DevelopmentOffice Depot 2.92 1328312/12/2014Liquid Waste FundBoard DevelopmentOffice Depot 26.30 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 2.57 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 23.10 1328312/12/2014Liquid Waste FundSewer Maint-Bldg MaintOffice Depot 7.23 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 2.58 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 23.22 1328312/12/2014Solid Waste FundOffice SuppliesOffice Depot 5.00 1328312/12/2014Liquid Waste FundOffice SuppliesOffice Depot 44.98 1328312/12/2014Solid Waste FundBuilding MaintenanceOffice Depot 4.12 1328312/12/2014Liquid Waste FundBuilding MaintenanceOffice Depot 37.05 Check Total: 463.90 1328412/12/2014Solid Waste FundBuilding MaintenanceOrtiz Landscaping & Maintenanc 13.50 1328412/12/2014Liquid Waste FundBuilding MaintenanceOrtiz Landscaping & Maintenanc 121.50 1328412/12/2014Liquid Waste FundSewer Maint-Bldg MaintOrtiz Landscaping & Maintenanc 75.00 Check Total: 210.00 1328512/12/2014Solid Waste FundStaff DevelopmentO.S.T.S., Inc. 42.50 1328512/12/2014Liquid Waste FundStaff DevelopmentO.S.T.S., Inc. 382.50 Check Total: 425.00 1328612/12/2014Liquid Waste FundCapital OutlayPower Plus 83,557.56 Check Total: 83,557.56 1328712/12/2014Liquid Waste FundCapital OutlayRoyal Wholesales Electric 2,671.92 Check Total: 2,671.92 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 7 Check Number Check DateFund NameAccount NameVendor NameAmount 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 419.11 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 322.10 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 87.14 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 51.20 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 329.03 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 254.84 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 88.30 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 64.17 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 131.67 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 383.61 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 379.35 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 113.61 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 234.57 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 62.21 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 918.47 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 81.01 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 296.29 1328812/12/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 777.53 1328812/12/2014Solid Waste FundElectric - BuildingSouthern California Edison 57.07 1328812/12/2014Liquid Waste FundElectric - BuildingSouthern California Edison 513.68 Check Total: 5,564.96 1328912/12/2014Solid Waste FundCafeteria PlanSpec Dist Risk Mgt Authority 52.52 1328912/12/2014Liquid Waste FundCafeteria PlanSpec Dist Risk Mgt Authority 58.04 1328912/12/2014Liquid Waste FundSwr Maint - Cafeteria PlanSpec Dist Risk Mgt Authority 69.10 1328912/12/2014Liquid Waste FundDental InsuranceSpec Dist Risk Mgt Authority 1,161.37 1328912/12/2014Solid Waste FundCafeteria PlanSpec Dist Risk Mgt Authority 101.94 1328912/12/2014Liquid Waste FundCafeteria PlanSpec Dist Risk Mgt Authority 118.83 1328912/12/2014Liquid Waste FundSwr Maint - Cafeteria PlanSpec Dist Risk Mgt Authority 130.80 1328912/12/2014Solid Waste FundBenefits Admin CostsSpec Dist Risk Mgt Authority 11.28 1328912/12/2014Liquid Waste FundBenefits Admin CostsSpec Dist Risk Mgt Authority 27.32 1328912/12/2014Liquid Waste FundVision InsuranceSpec Dist Risk Mgt Authority 221.99 Check Total: 1,953.19 1329012/12/2014Solid Waste FundWorkers' CompensationSpec Dist Risk Mgt Authority 470.24 1329012/12/2014Liquid Waste FundWorkers' CompensationSpec Dist Risk Mgt Authority 822.92 1329012/12/2014Liquid Waste FundSwr Maint - Workers CompSpec Dist Risk Mgt Authority 4,584.84 Check Total: 5,878.00 1329112/12/2014Solid Waste FundEOC Equipment & SuppliesTelePacific Communications 30.46 1329112/12/2014Liquid Waste FundEOC Equipment & SuppliesTelePacific Communications 274.17 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 8 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 304.63 1329212/12/2014Liquid Waste FundDeferred Compensation - 457VantagePoint Transfer Agents 1,846.49 Check Total: 1,846.49 1329312/12/2014Liquid Waste FundDeferred Medical-RHS-EmployeeVantagePoint Transfer Agents 784.00 Check Total: 784.00 1329412/12/2014Liquid Waste FundSewer Maint-Swr Lateral ProgLarry Wein 1,189.40 Check Total: 1,189.40 1329512/16/2014Liquid Waste FundPlan Ck/Inspection-OutsideAndersonPenna Partners, Inc. 790.50 Check Total: 790.50 1329612/16/2014Liquid Waste FundSewer Maint-Swr Lateral ProgJohn Baldikoski 125.00 Check Total: 125.00 1329712/16/2014Liquid Waste FundSewer Maint-Material/SuppliesBank of America 16.59 1329712/16/2014Liquid Waste FundSmall Tools/EquipmentBank of America 211.90 1329712/16/2014Solid Waste FundSmall Tools/EquipmentBank of America 23.54 1329712/16/2014Liquid Waste FundSewer Maint-Small Tools/EqBank of America 365.07 1329712/16/2014Liquid Waste FundSewer Maint-Bldg MaintBank of America 179.07 1329712/16/2014Liquid Waste FundSewer Maint-Pump Stn MaintBank of America 117.16 1329712/16/2014Solid Waste FundBuilding MaintenanceBank of America 15.88 1329712/16/2014Liquid Waste FundBuilding MaintenanceBank of America 142.88 1329712/16/2014Liquid Waste FundSewer Maint-Pump Stn MaintBank of America 167.35 1329712/16/2014Solid Waste FundBoard DevelopmentBank of America 1.93 1329712/16/2014Liquid Waste FundBoard DevelopmentBank of America 17.35 1329712/16/2014Solid Waste FundBoard DevelopmentBank of America 185.00 1329712/16/2014Solid Waste FundBoard DevelopmentBank of America 25.78 1329712/16/2014Liquid Waste FundBoard DevelopmentBank of America 231.99 1329712/16/2014Solid Waste FundStaff DevelopmentBank of America 1.30 1329712/16/2014Liquid Waste FundStaff DevelopmentBank of America 11.70 1329712/16/2014Solid Waste FundStaff DevelopmentBank of America 1.46 1329712/16/2014Liquid Waste FundStaff DevelopmentBank of America 13.10 1329712/16/2014Liquid Waste FundSewer Maint-Small Tools/EqBank of America 180.56 1329712/16/2014Solid Waste FundStaff DevelopmentBank of America 28.40 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 9 Check Number Check DateFund NameAccount NameVendor NameAmount 1329712/16/2014Liquid Waste FundStaff DevelopmentBank of America 255.59 1329712/16/2014Solid Waste FundOffice SuppliesBank of America 7.97 1329712/16/2014Liquid Waste FundOffice SuppliesBank of America 71.74 1329712/16/2014Solid Waste FundPublic Info/Ed/Community PromoBank of America 21.79 1329712/16/2014Liquid Waste FundPublic Info/Ed/Community PromoBank of America 196.06 1329712/16/2014Solid Waste FundStaff DevelopmentBank of America 5.00 1329712/16/2014Liquid Waste FundStaff DevelopmentBank of America 45.00 1329712/16/2014Liquid Waste FundStaff DevelopmentBank of America 134.10 1329712/16/2014Solid Waste FundStaff DevelopmentBank of America 14.90 1329712/16/2014Solid Waste FundStaff DevelopmentBank of America 8.08 1329712/16/2014Liquid Waste FundStaff DevelopmentBank of America 72.74 1329712/16/2014Liquid Waste FundStaff DevelopmentBank of America 603.00 1329712/16/2014Solid Waste FundStaff DevelopmentBank of America 67.00 1329712/16/2014Solid Waste FundPublic Info/Ed/Community PromoBank of America 20.00 Check Total: 3,460.98 1329812/16/2014Solid Waste FundPharmaceutical ProgramWM Curbside, LLC 90.00 1329812/16/2014Solid Waste FundPharmaceutical ProgramWM Curbside, LLC 110.70 1329812/16/2014Solid Waste FundSharps ProgramWM Curbside, LLC 115.00 1329812/16/2014Solid Waste FundPharmaceutical ProgramWM Curbside, LLC 90.00 1329812/16/2014Solid Waste FundPharmaceutical ProgramWM Curbside, LLC 166.95 1329812/16/2014Solid Waste FundSharps ProgramWM Curbside, LLC 115.00 1329812/16/2014Solid Waste FundSharps ProgramWM Curbside, LLC 115.00 1329812/16/2014Solid Waste FundPharmaceutical ProgramWM Curbside, LLC 90.00 1329812/16/2014Solid Waste FundSharps ProgramWM Curbside, LLC 115.00 1329812/16/2014Solid Waste FundPharmaceutical ProgramWM Curbside, LLC 79.65 Check Total: 1,087.30 1329912/16/2014Liquid Waste FundSewer Maint-Swr Lateral ProgGeorge Gary Curtis 92.50 Check Total: 92.50 1330012/16/2014Liquid Waste FundSewer Maint-Swr Lateral ProgKristie Gamboa 125.00 Check Total: 125.00 1330112/16/2014Liquid Waste FundSewer Maint-Swr Lateral ProgDon Haddock 1,250.00 Check Total: 1,250.00 1330212/16/2014Liquid Waste FundSewer Maint-Swr Lateral ProgGreg Huffstutter 1,250.00 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 10 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 1,250.00 1330312/16/2014Solid Waste FundProfessional ServicesIron Mountain Incorporated 10.40 1330312/16/2014Liquid Waste FundProfessional ServicesIron Mountain Incorporated 93.60 Check Total: 104.00 1330412/16/2014Liquid Waste FundSewer Maint- Water PumpsIrvine Ranch Water District 9.45 1330412/16/2014Liquid Waste FundSewer Maint- Water PumpsIrvine Ranch Water District 9.80 Check Total: 19.25 1330512/16/2014Liquid Waste FundSewer Maint-Pump Stn MaintJimni Systems, Inc 1,400.00 Check Total: 1,400.00 1330612/16/2014Liquid Waste FundSewer Maint-Equipment MaintLifecom Inc. 65.00 1330612/16/2014Liquid Waste FundSewer Maint-Equipment MaintLifecom Inc. 65.00 1330612/16/2014Liquid Waste FundSewer Maint-Equipment MaintLifecom Inc. 491.01 Check Total: 621.01 1330712/16/2014Solid Waste FundBoard DevelopmentArt Perry 3.36 1330712/16/2014Liquid Waste FundBoard DevelopmentArt Perry 30.24 Check Total: 33.60 1330812/16/2014Liquid Waste FundSewer Maint-Equipment MaintCMSD Petty Cash 20.00 1330812/16/2014Solid Waste FundStaff DevelopmentCMSD Petty Cash 1.08 1330812/16/2014Liquid Waste FundStaff DevelopmentCMSD Petty Cash 9.70 1330812/16/2014Solid Waste FundPublic Info/Ed/Community PromoCMSD Petty Cash 0.32 1330812/16/2014Liquid Waste FundPublic Info/Ed/Community PromoCMSD Petty Cash 2.92 1330812/16/2014Solid Waste FundBuilding MaintenanceCMSD Petty Cash 0.32 1330812/16/2014Liquid Waste FundBuilding MaintenanceCMSD Petty Cash 2.92 1330812/16/2014Solid Waste FundMileage ReimbursementCMSD Petty Cash 36.40 1330812/16/2014Liquid Waste FundMileage ReimbursementCMSD Petty Cash 22.96 1330812/16/2014Liquid Waste FundMileage ReimbursementCMSD Petty Cash 19.04 1330812/16/2014Solid Waste FundMileage ReimbursementCMSD Petty Cash 26.32 1330812/16/2014Solid Waste FundStaff DevelopmentCMSD Petty Cash 0.95 1330812/16/2014Liquid Waste FundStaff DevelopmentCMSD Petty Cash 8.57 1330812/16/2014Solid Waste FundPublic Info/Ed/Community PromoCMSD Petty Cash 1.78 1330812/16/2014Liquid Waste FundPublic Info/Ed/Community PromoCMSD Petty Cash 16.00 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 11 Check Number Check DateFund NameAccount NameVendor NameAmount 1330812/16/2014Solid Waste FundStaff DevelopmentCMSD Petty Cash 2.39 1330812/16/2014Liquid Waste FundStaff DevelopmentCMSD Petty Cash 21.52 1330812/16/2014Solid Waste FundBoard DevelopmentCMSD Petty Cash 2.05 1330812/16/2014Liquid Waste FundBoard DevelopmentCMSD Petty Cash 18.43 1330812/16/2014Liquid Waste FundPublic Info/Ed/Community PromoCMSD Petty Cash 5.24 1330812/16/2014Solid Waste FundPublic Info/Ed/Community PromoCMSD Petty Cash 0.58 1330812/16/2014Solid Waste FundStaff DevelopmentCMSD Petty Cash 2.28 1330812/16/2014Liquid Waste FundStaff DevelopmentCMSD Petty Cash 20.53 1330812/16/2014Solid Waste FundMileage ReimbursementCMSD Petty Cash 16.80 1330812/16/2014Solid Waste FundStaff DevelopmentCMSD Petty Cash 0.88 1330812/16/2014Liquid Waste FundStaff DevelopmentCMSD Petty Cash 8.06 1330812/16/2014Liquid Waste FundSewer Maint-Staff DevelopmentCMSD Petty Cash 1.00 1330812/16/2014Solid Waste FundMileage ReimbursementCMSD Petty Cash 1.89 1330812/16/2014Liquid Waste FundMileage ReimbursementCMSD Petty Cash 17.04 1330812/16/2014Liquid Waste FundSewer Maint-Staff DevelopmentCMSD Petty Cash 13.00 1330812/16/2014Liquid Waste FundSewer Maint-Staff DevelopmentCMSD Petty Cash 13.00 1330812/16/2014Solid Waste FundMileage ReimbursementCMSD Petty Cash 30.24 1330812/16/2014Solid Waste FundMileage ReimbursementCMSD Petty Cash 0.39 1330812/16/2014Liquid Waste FundMileage ReimbursementCMSD Petty Cash 3.53 Check Total: 348.13 1330912/16/2014Solid Waste FundBoard DevelopmentArlene Schafer 3.53 1330912/16/2014Liquid Waste FundBoard DevelopmentArlene Schafer 31.75 Check Total: 35.28 1331012/16/2014Solid Waste FundBoard DevelopmentMichael Scheafer 3.64 1331012/16/2014Liquid Waste FundBoard DevelopmentMichael Scheafer 32.76 Check Total: 36.40 1331612/16/2014Liquid Waste FundFICA - EmployeeEdward Roberts 11.45 Check Total: 11.45 1331712/26/2014Solid Waste FundOrganics Public Info/Ed/CommAvalanche 3D Entertainment LLC 3,900.00 Check Total: 3,900.00 1331812/26/2014Liquid Waste FundSewer Maint-Bldg MaintBay Alarm 177.15 1331812/26/2014Liquid Waste FundSewer Maint-Bldg MaintBay Alarm 305.61 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 12 Check Number Check DateFund NameAccount NameVendor NameAmount Check Total: 482.76 1331912/26/2014Solid Waste FundOrganics Public Info/Ed/CommCity of Costa Mesa 250.00 Check Total: 250.00 1332012/26/2014Liquid Waste FundSewer Maint- Water PumpsCity of Newport Beach 34.54 Check Total: 34.54 1332112/26/2014Liquid Waste FundSewer Maint-Swr Lateral ProgLynne Coenen 1,250.00 Check Total: 1,250.00 1332212/26/2014Solid Waste FundTrash HaulerCR&R Incorporated Environmenta 192,748.48 Check Total: 192,748.48 1332312/26/2014Liquid Waste FundSewer Maint-Annual Sewer MaintC&R Drains Inc. 3,152.04 Check Total: 3,152.04 1332412/26/2014Solid Waste FundRecycling/DisposalCR Transfer, Inc. 154,305.17 1332412/26/2014Solid Waste FundRecycling/DisposalCR Transfer, Inc. 9,122.29 Check Total: 163,427.46 1332512/26/2014Liquid Waste FundProf Membership/DuesSARBS - CWEA 94.00 Check Total: 94.00 1332612/26/2014Liquid Waste FundSewer Maint-FOG Prog ContractEnvironmental Engr & Cont, Inc 6,502.50 Check Total: 6,502.50 1332712/26/2014Solid Waste FundPublic Info/Ed/Community PromoGovernment Finance Officers Associatio 43.50 1332712/26/2014Liquid Waste FundPublic Info/Ed/Community PromoGovernment Finance Officers Associatio 391.50 Check Total: 435.00 1332812/26/2014Solid Waste FundPostageMail Finance Inc. 7.67 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 13 Check Number Check DateFund NameAccount NameVendor NameAmount 1332812/26/2014Liquid Waste FundPostageMail Finance Inc. 69.01 Check Total: 76.68 1332912/26/2014Liquid Waste FundSewer Maint-Swr Lateral ProgDaniel Hedley 737.50 Check Total: 737.50 1333012/26/2014Liquid Waste FundSewer Maint-Equipment MaintIPC Fuel Distribution 3,514.28 Check Total: 3,514.28 1333112/26/2014Liquid Waste FundSewer Maint- Water PumpsMesa Water District 21.00 1333112/26/2014Solid Waste FundWater - BuildingMesa Water District 25.76 1333112/26/2014Liquid Waste FundWater - BuildingMesa Water District 231.80 Check Total: 278.56 1333212/26/2014Liquid Waste FundSewer Maint-FOG Prog ContractOrange County Sanitation Distr 103.64 Check Total: 103.64 1333312/26/2014Solid Waste FundProfessional ServicesOrange County Sanitation Distr 813.60 1333312/26/2014Liquid Waste FundProfessional ServicesOrange County Sanitation Distr 7,322.40 Check Total: 8,136.00 1333412/26/2014Solid Waste FundOffice SuppliesOffice Depot 6.42 1333412/26/2014Liquid Waste FundOffice SuppliesOffice Depot 57.80 1333412/26/2014Liquid Waste FundSewer Maint-Office SuppliesOffice Depot 36.60 1333412/26/2014Solid Waste FundBuilding MaintenanceOffice Depot 3.31 1333412/26/2014Liquid Waste FundBuilding MaintenanceOffice Depot 29.76 1333412/26/2014Solid Waste FundBoard DevelopmentOffice Depot 2.43 1333412/26/2014Liquid Waste FundBoard DevelopmentOffice Depot 21.92 1333412/26/2014Solid Waste FundBuilding MaintenanceOffice Depot 3.43 1333412/26/2014Liquid Waste FundBuilding MaintenanceOffice Depot 30.89 1333412/26/2014Solid Waste FundOffice SuppliesOffice Depot 2.55 1333412/26/2014Liquid Waste FundOffice SuppliesOffice Depot 22.94 Check Total: 218.05 1333512/26/2014Solid Waste FundOrganics Public Info/Ed/CommPauline's Professional Potpour 345.60 1333512/26/2014Solid Waste FundStaff DevelopmentPauline's Professional Potpour 40.26 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 14 Check Number Check DateFund NameAccount NameVendor NameAmount 1333512/26/2014Liquid Waste FundStaff DevelopmentPauline's Professional Potpour 362.33 Check Total: 748.19 1333612/26/2014Liquid Waste FundSewer Maint-Electric PumpsSouthern California Edison 1,010.32 Check Total: 1,010.32 1333712/26/2014Liquid Waste FundContract ServicesUnderground Service Alert/SC 54.00 Check Total: 54.00 1333812/26/2014Liquid Waste FundDeferred Compensation - 457VantagePoint Transfer Agents 5.00 1333812/26/2014Liquid Waste FundDeferred Compensation - 457VantagePoint Transfer Agents 1,846.49 Check Total: 1,851.49 1333912/26/2014Liquid Waste FundDeferred Medical-RHS-EmployeeVantagePoint Transfer Agents 784.00 Check Total: 784.00 1334012/26/2014Liquid Waste FundComputer Licenses & MaintVerizon Wireless 391.75 Check Total: 391.75 1334112/26/2014Liquid Waste FundSewer Maint-Swr Lateral ProgMichael Weiss 1,250.00 Check Total: 1,250.00 Report Total: 850,654.45 AP - Checks for Approval ( 01/07/2015 - 8:22 AM )Page 15 Vendors Descriptions Amount 85 Degree Bakery General Manager & Board of Directors Monthly Meeting Refreshment 11/4/1419.28 ACE Tools For HQ 179.07 Anchor Scientific, Inc. Pump Station Floats 117.16 Baja FreshMeal Fred Pryor Training, Anaheim District Clerk 11/14/1414.56 Balls' n Bands Ergonomic Chair Maintenance Supervisor 180.56 Clarion Hotel, Anaheim CAParking Fred Pryor Training, Anaheim District Clerk 11/14/1413.00 Costa Mesa Lock Key & Hatch 16.59 Fotosearch Waste Bucket photograph20.00 Home DepotTools For HQ 759.27 International City Management Association ICMA Voluntary Credentialing Program Application & Webinar Economic Development 199.00 Lands’ End Maintenance Worker Shirts (5)217.85 Office Depot Office Supplies 79.71 Residence Inn Sacramento Lodging CSDA Board Mtg Sac Director AS 11/13 ‐14257.77 Southern California Waste Management SCWMF Conf 11/12/14 Director MS185.00 Successories Safety Person of the Yr 2014 Award Management Analyst 80.82 UC Berkeley Calif Public Employee Relations Webinar ‐Disability Discrimination in the Workplace283.99 Uline Pump Station Oil Can 167.35 www.caled.org Calif Association for Local Economic Development 670.00 CMSD Check No. 13297 3,460.98 Bank of America December 2014 Costa Mesa Sanitary District ... an Independent Special District Directors' Compensation and Reimbursement of Expens es Recommendation/Notes: Recommendation: That the Board of Directors approv es Directors' compensation and reimbursement of expenses for the month of December 2014. Item Number:6. ATTACHMENTS:Description Type Directors Compensation & Expense Reimbursement Backup Material Costa Mesa Sanitary District ... an Independent Special District Sewer Lateral Assistance Program (SLAP) Update Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file this report. Item Number:7. ATTACHMENTS:Description Type Sewer Lateral Assistance Program (SLAP) Cover Memo Protecting our community's health and the environment b y providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Wendy H. Davis, Finance Manager Date: January 22, 2015 Subject: Sewer Lateral Assistance Program (SLAP) Up date Summary The following is a summary of the Sewer Lateral Ass istance Program (SLAP) activity for the 2014-2015 fiscal year as of December 31, 20 14: New Applications Received FY 14-15106 Applications Processed for Payment*68 Applications In Process68 Available SLAP Spots Based on Funding54 Adopted SLAP Budget200,000 $ FY 13-14 Carryover Budget65,676 Total Budget 265,676 Fiscal Year to Date Paid70,709 Available Balance**194,967 $ * Includes applications started in prior fiscal ye ar but completed in current fiscal year.** Funds remaining at the end of the fiscal year wi ll be carried forward. Staff Recommendation February 19, 2013 Page 2 of 2 That the Board of Directors approve and file this r eport. Costa Mesa Sanitary District ... an Independent Special District Adoption of Resolution No. 2015-856 Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2015-856 ordering the publication of Ordinance No. 102. Item Number:8. ATTACHMENTS:Description Type Resolution No. 2015-856 Resolution Letter RESOLUTION NO. 201 5 -856 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 102 AMENDING THE DISTRICT’S OPERATIONS CODE SECTION 3.01.045 PERTAINING TO ALTERNATE DISTRICT ENGINEER WHEREA S , the Board of Directors on December 18 , 2014 adopted Ordinance No. 102 Amending t he District’s Operations Code amending the District’s Operations Code pertaining to trash regulations has been published, and WHEREAS , that Ordinance was published in the Newport Beach/Costa Mesa Daily Pi lot on January 1, 2015 , and WHEREAS , Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE , th e Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 102 amending the District’s Operations Code section 3.01.045 pertaining to alternate District Engineer has occurred. PASSED and ADOPTED on this 22 nd day of January 201 5 . _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, N OELANI MIDDENWAY , Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 201 5 -856 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof , held on the 2 2 nd day of January 2015 by the following votes: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ da y of ___________________ 201 5 . _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District Costa Mesa Sanitary District ... an Independent Special District Adoption of Resolution No. 2015-857 Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2015-857 ordering the publication of Ordinance No. 103. Item Number:9. ATTACHMENTS:Description Type Resolution No. 2015-857 Resolution Letter RESOLUTION NO. 201 5 -857 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 10 3 AMENDING THE DISTRICT’S OPERATIONS CODE SECTION 3.01.090 PERTAINING TO CONFERENCES, TRAVEL AND EXPENSES W HEREAS , the Board of Directors on December 18 , 2014 adopted Ordinance No. 10 3 Amending t he District’s Operations Code amending the District’s Operations Code pertaining to conferences, travel and expenses; WHEREAS , that Ordinance was published in the Ne wport Beach/Costa Mesa Daily Pi lot on January 1, 2015 , and WHEREAS , Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE , the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 102 amending the District’s Operations Code section 3.01.0 90 pertaining to conferences, travel and expenses has occurred. PASSED and ADOPTED on this 22 nd day of January 201 5 . _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORN IA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, N OELANI MIDDENWAY , Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2015 -857 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof , held on the 22 nd day of January 2015 by the following votes: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2015. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District Costa Mesa Sanitary District ... an Independent Special District Financial Statements for Fiscal Year Ended June 30, 2014 Recommendation/Notes: Recommendation: That the Board of Directors receive and file the Comprehensive Annual Financial Report, auditors’ report in accordance wi th Government Auditing Standards, and the auditors’ required communication for the fiscal yea r ended June 30, 2014. Item Number:10. ATTACHMENTS:Description Type Financial Statements for Fiscal Year Ended June 30, 2014 Cover Memo Comprehensive Annual Financial Report for the Year Ended June 30, 2014 Backup Material Report on Internal Control Over Financial Reporting and on Compliance and Other Matters based on an Audit Perf ormed in Accordance with Government Auditing Standards. Backup Material Required Auditor Communications. Backup Material Protecting our community's health and the environment b y providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Wendy H. Davis, Finance Manager Date: January 22, 2015 Subject: Financial Statements for Fiscal Year Ended June 30, 2014 Summary The annual financial audit of the District has been completed. Attached to this report are the audited financial statements, the auditors’ report in accordance with Government Auditing Standards , and the auditors’ required communication for the fiscal year ended June 30, 2014. Nitin Patel, Part ner, White Nelson Diehl Evans, LLP, which is the District’s independent audit firm that conducted the annual audit Staff Recommendation That the Board of Directors receive and file the Co mprehensive Annual Financial Report, auditors’ report in accordance with Government Auditing Standards , and the auditors’ required communication for the fiscal yea r ended June 30, 2014. Analysis Financial highlights for the fiscal year ended June 30, 2014 included: • Total assets of the District exceeded liabilities by $59,012,967. Of this amount, $19,407,734 is unrestricted and available to meet t he District’s ongoing obligations to its customers and creditors. • The net position may serve over time as a useful i ndicator of a government’s financial position. Net position of the District w as $59,012,967 and $58,478,333 for the fiscal years ended June 30, 2014 and June 30, 2 013, respectively, a $534,634 increase. Board of Directors January 22, 2015 Page 2 of 2 • As of June 30, 2014, unrestricted net position inc reased to $19,407,734 from $18,684,743 in the prior fiscal year, or a $722,991 increase. • Net position of the Solid Waste Fund decreased $14 7,643 during the year ended June 30, 2014, which was primarily attributable to a decrease of $239,939 in trash assessments, due to a $12 per household rate cut fo r single family residents. This was offset somewhat by an increase of $108,579 in a dministrative costs such as fiscal and contractual services used to temporarily fill vacancies in staffing. • Net position of the Liquid Waste fund increased $4 70,950 during the year ended June 30, 2014, which was primarily attributable to an increase in market valuation of investments and investment income of $310,643, a decrease in liquid waste disposal expenses of $399,141 due to timing of comp letion of capital improvement projects, and savings in salaries and benefits due to temporary vacancies in staffing, as well as savings in various maintenance and operations accounts. Strategic Plan Element & Goal This item supports achieving Strategic Element No. 7.0, Finances, by ensuring the short and long-term fiscal health of the District. Legal Review Legal review is not required. Environmental Review The preparation of financial statements is an admin istrative action and not a project under CEQA or the District’s CEQA guidelines. Financial Review The cost of the annual audit was $9,525, which was included in the District’s budget. Public Notice Process Copies of this report are on file and will be inclu ded with the entire agenda packet for the January 22, 2015 Board of Directors regular mee ting at District Headquarters and on District’s website at www.cmsdca.gov . Alternative Actions 1. Refer the matter back to staff Attachments 1. Comprehensive Annual Financial Report for the Ye ar Ended June 30, 2014. 2. Report on Internal Control Over Financial Report ing and on Compliance and Other Matters based on an Audit Performed in Accord ance with Government Auditing Standards. 3. Required Auditor Communications. Costa Mesa Sanitary District Costa Mesa, California Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2014 Costa Mesa Sanitary District Comprehensive Annual Financial Report For the Year Ended June 30, 2014 Costa Mesa Sanitary District 628 W. 19 th Street Costa Mesa, California 92627 Prepared by: Scott Carroll, General Manager Wendy Hooper Davis, Finance Manager Costa Mesa Sanitary District Annual Financial Report For the Year Ended June 30, 2014 Table of Contents Page No. Introductory Section: Letter of Transmittal i - iv Board of Directors v Organizational Chart vi CSMFO Certificate of Award for Outstanding Financial Reporting vii Financial Section: Independent Auditor’s Report 1 - 3 Management’s Discussion and Analysis (R equired Supplementary Information) 4 - 10 Basic Financial Statements: 11 Combined Statement of Net Position 12 - 13 Combined Statement of Revenues, Expe nses and Changes in Net Position 14 - 15 Combined Statement of Cash Flows 16 - 19 Notes to Financial Statements 21 - 37 Required Supplementary Information: 39 Schedule of Funding Progress for Other Post-Employment Benefit Plan 40 Statistical Section: Statistical Section - Table of Contents 41 Changes in Net Position and Net Position by Component - Last Ten Fiscal Years 42 - 43 Operating Revenues by Source - Last Ten Fiscal Years 44 - 45 Operating Expenses by Activity - Last Ten Fiscal Years 46 - 47 Non-Operating Revenue (Expenses), Net - Last Ten Fiscal Years 48 - 49 Sewer and Trash Revenue Rates - Last Ten Fiscal Years 50 - 51 Principal Sewer Customers - Current Fiscal Year and Nine Years Ago 53 Ratio of Outstanding Debt - Last Ten Fiscal Years 54 - 55 Debt Coverage - Last Ten Fiscal Years 56 - 57 Demographics and Economic Statis tics - Last Ten Calendar Years 58 Principal Employers - Current Fi scal Year and Nine Years Ago 59 Full-Time and Part-Time District Employees - Last Seven Ten Years 60 Operating Indicators by Functi on - Last Ten Fiscal Years 61 Capital Asset Statistics - Last Ten Fiscal Years 62 INTRODUCTOR Y SECTION - v - Our Mission Statement “Protecting our community’s health and the environment by providing solid waste and sewer collection services.” Costa Mesa Sanitary District Board of Directors as of June 30, 2014 Elected/ Current Name Title Appointed Term James Ferryman President Elected 12/12 – 12/16 Michael Scheafer Vice Pres ident Elected 12/10 – 12/14 Arthur Perry Secretary Elected 12/12 – 12/16 Robert Ooten Assistan t Secretary Elected 12/10 – 12/14 Arlene Schafer Director Appointed 12/10 – 12/14 Costa Mesa Sanitary District Scott Carroll, General Manager 628 W. 19 th Street Costa Mesa, California 92627 (949) 645-8400 www.cmsdca.gov - vi - COSTA MESA SANITARY DISTRICT ORGANIZATIONAL CHART Fiscal Year 2013-2014 General Manager Finance Manager Admin Manager Mgt Analyst Maint Supervisor District Engineer Associate Accountant Maint Assistant (PT) Maint Worker III Inspector Maint Worker II Maint Worker I Admin Assistant Mgt Assistant Mgt Intern Volunteer Contracted Em p lo y ees Maint Intern Volunteer Deputy Clerk Code Enforce (PT) District Counsel District Treasurer SCADA Tech/Industrial Electrician Permit Technician Board of Directors New p osition -viii -THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION 2875 Michelle Drive, Suite 300, Irvine , CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties -1-IN DEPENDENT A UDITORS’ REPOR T Board of Directors Costa Mesa Sanitary District Costa Mesa, California Report on Financial S tatements We h ave audited the accompany ing financi al statements of Costa Mesa Sanitary D istrict (the District) as of and for the ye ar ended June 30, 2014 ,and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with ac counting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material miss tatement, whether due to fraud or error.Auditors’ Responsibility Our responsibility i s to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally a ccepted in the United States of America ,the standards applicable to financial audits contained in Government Auditing Standards , issued by t he Comptroller General of the United States and the State Controller ’s M inimum Audit Requirements for California Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclos ures in the financial statements. The procedures selected depend on the auditors ’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the aud itor s consider internal control relevant to the District’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District ’s internal control. Accordingl y, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by m anagement, as w ell as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. -2 -Opinion In o ur opinion, the basic financial statements re ferred to above present fairly , in all material respects, the financial position of Costa Mesa Sanitary D istrict as of June 30, 2014 and the changes in financial position and cash flows thereof for the ye ar then ended in accordance with accounting principles generall y accepted in the United States of America, as well as the accounting s ys tems prescribed by the State Controller ’s Office and State Regulations governing Special Districts.O ther Matters Summarized Comparative Information We have previously a udited the Costa Mesa Sanitary D istrict’s 2013 financial statements, and our report dated January 1 5, 2014 , expressed an unmodified opinion on those audited financial statements. In our opinion, the partial summarized comparative information presented herein as of and for the year ended June 30,201 3 , is consistent, in all material respects, with the audited financial statements from which it has been derived.Requir ed Supplementary Inf ormation Accounting principles generall y accepted in the United States of America require that the management’s discussion and analy sis and schedule of funding progress, identified as required supplementary i nformation in the accompan yi ng table of content s, be presented to supplement the basic financial statements. S uch information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial report ing for placing the basic financial statements in an appropriate operational, economic, or historical context. W e have applied certain limited procedures to the required supplementary information in accordance with auditing standards generall y accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency w ith management’s responses to our inquiries, the basic financial statements, and other k nowledge we obtained during the audit of the basic financial statements. W e do not express an opinion or provide any a ssurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide an y assurance.Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively c omprise the District’s basic financial statements . The i ntroductory s ection and s tatistical s ection are presented for purposes of additional anal ys is and are not a required part of the basic financial statements. The i ntroductory s ection and s tatistical s ection have not been subjected to the auditing procedures applied in the audit of the basic financial statements an d, accordingl y, we do not express an opinion or provide any assurance on them. -3 -Other Reporting Required by Government Auditing Standards In a ccordance with Government Auditing Standards , we have also issued our report dated December 19,2014,on our con sideration of the District ’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope o f our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District ’s internal control over financial reporting and compliance.Irvine, California December 19, 2014 COSTA MESA SANITARY DISTRICT Management’s Discussion and Analysis June 30, 2014 See independent auditors’ report. - 4 - The following discussion and analysis of the financia l performance of the Costa Mesa Sanitary District (the District) provides an overview of the District’s financial activities for the fiscal year ended June 30, 2014. It should be read in conjunction w ith the financial statements identified in the accompanying table of contents. Financial Highlights Financial highlights during the fiscal year ended June 30, 2014 included:  Total assets of the District exceeded its liabili ties as of June 30, 2014 by $59,012,967. Of this amount, $19,407,734 is unrestricted and available to meet the District’s ongoing obligations to its customers and creditors.  Net position of the Solid Waste Fund decrea sed $147,643 during the year ended June 30, 2014, which was primarily attributable to a decr ease of $239,939 in trash assessments, due to a $12 per household rate cut for single family resi dents. This was offset somewhat by an increase of $108,579 in administrati ve costs such as fiscal and contractual services used to temporarily fill vacancies in staffing.  Net position of the Liquid Waste fund incr eased $470,950 during the year ended June 30, 2014, which was primarily attributable to an incr ease in market valuation of investments and investment income of $310,643, a decrease in liquid waste disposal expenses of $399,141 due to timing of completion of capital improvement pr ojects, and savings in salaries and benefits due to temporary vacancies in staffing, as well as savings in various maintenance and operations accounts. Overview of the Financial Statements This Management’s Discussion and Analysis (MD&A) serves as an introduction to the District’s financial statements. The District ’s basic financial statements ar e comprised of four components: (1) Statement of Net Position; (2) Statement of Revenues, Expenses, and Changes in Net Position; (3) Statement of Cash Flows; and (4 ) Notes to Financial Statements. The financial statements accompanying this MD &A present the financial position, results of operations, and changes in cash fl ow during the fiscal year ende d June 30, 2014. These financial statements have been prepared using accounting methods similar to those used by private sector companies. Statement of Net Position - The Statement of Net Position presents information on the District’s assets (investment in resources) and liabilities (oblig ations to creditors), with the difference between the two reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. However, other factors such as changes in econo mic conditions, population growth, zoning and new or changed legislation or regulations also need to be considered when estab lishing financial position. COSTA MESA SANITARY DISTRICT Management’s Discussion and Analysis (Continued) See independent auditors’ report. - 5 - Statement of Revenues, Expenses, and Changes in Net Position - The Statement of Revenues, Expenses and Changes in Net Position present in formation showing how the District’s net position changed during the fiscal year. All of the fiscal year’s revenues a nd expenses are accounted for in the Statement of Revenues, Expenses and Changes in Net Position. This statement measures the results of the District’s operations for the fiscal year and can be used to determine whether the District has successfully recovered all of its costs through its ra tes and other charges. Statement of Cash Flows - The Statement of Cash Flows present information regarding the District’s use of cash during the year. It reports cash receipt s, cash payments, and net changes in cash resulting from operations, investing, non-capita l financing, and capital and rela ted financing activities. The Statement of Cash flows provides answers to such questions as; where did cash come from, what was cash used for, and what was the change in the cash balance during the reporting period. Notes to Financial Statements - The financial statements also include Notes to Financial Statements that provide important narrative deta ils about the information contained in the financial statements. Information contained in the Notes to Financial Statements is essen tial to a reader’s full understanding of the data provided in the financial statements. Financial Analysis of the District One of the most important questions asked about the Di strict’s finances is, “Is the District better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Net Position repor t information about the District in a way that helps answer this question. These st atements include all assets and liab ilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current fiscal year’s revenues and expenses are take n into account regardless of when cash is received or paid. Statement of Position Condensed Statement of Net Position 2014 2013 Change Assets: Current assets $21,098,320$19,862,554$ 1,235,766 Capital assets, net 39,605,233 39,793,590 (188,357)Total assets 60,703,553 59,656,144 1,047,409 Liabilities: Current liabilities 1,642,9291,141,331501,598 Non-current liabilities 47,657 36,480 11,177 Total liabilities 1,690,586 1,177,811 512,775 Net Position: Net investment in capital assets 39,605,23339,793,590(188,357) Unrestricte d 19,407,734 18,684,743 722,991 Total net positio n $59,012,967 $58,478,333 $ 534,634 COSTA MESA SANITARY DISTRICT Management’s Discussion and Analysis (Continued) See independent auditors’ report. - 6 - As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. Net position of the District wa s $59,012,967 and $58,478,333 for the fiscal years ended June 30, 2014 and June 30, 2013, respectively. One of the largest portions of the District’s net position reflects the District’s investment in capital assets (net of accumulated depreciation) less any relate d debt used to acquire those assets that is still outstanding. Investments in capital assets represent $39,605,233, or 67%, of the total $59,012,967 net position. The District uses the capital assets to provide services to cu stomers within the District’s area; consequently, these assets are no t available for future spending. Unrestricted net position represents 33% of the District’s net position, which comprises assets that may be used to meet the District’s on going obligations to citizens and creditors in accordance with the District’s fiscal policies. As of June 30, 2014, unrestricted net position increased to $19,407,734 from $18,684,743 in the prior fiscal year, or a $722,991 increase. The increase in net position is primarily attributable to capital improvement projects for which funding was received as part of the annual charge, but the projects themselves will not be constructed until future years. Statement of Revenues, Expenses and Changes in Net Position Condensed Statement of Revenues, Expenses and Changes in Net Position 2014 2013 Change Revenues: Operating revenues $ 10,327,835$ 10,636,733$ (308,898) Non-operating revenues 610,229 253,459 356,770 Total revenues 10,938,064 10,890,192 47,872 Expenses: Operating expenses 8,453,9307,953,569500,361 Depreciation 1,604,5001,715,991(111,491) Non-operating expenses 350,000 114,692 235,308 Total expenses 10,408,430 9,784,252 624,178 Net income/change in net position 529,6341,105,940(576,306)Capital contributions 5,0005,000- Net position, beginning of year 58,478,33357,564,829913,504 Restatement of net position - (197,436) 197,436 Net position, end of year $ 59,012,967 $ 58,478,333 $ 534,634 COSTA MESA SANITARY DISTRICT Management’s Discussion and Analysis (Continued) See independent auditors’ report. - 7 - The statement of revenues, expenses and changes in net position shows how the District’s net position changed during the fiscal years. In the case of the District, net pos ition increased by $534,634 and $913,504 for the fiscal years ended June 30, 2014 and 2013, respectively. A closer examination of the sources of changes in net position reveals that:  Investment income increased by $436,043 as a resu lt of a change in th e market value of the District’s investments.  Net position was reduced at the beginning of the prior fiscal year in the amount of $197,436 due to timing of accrued expenses. Such a rest atement was not required during the fiscal year ended June 30, 2014.  Salaries and benefits increased $19,482 as a result of less vacate positions during the fiscal year however still not fully staffed.  Pump station contractual serv ices increased by $180,000 due to increased inspections and maintenance of equipment, as well as traini ng District staff to ma intain pump stations. Total District Revenues 2014 2013 Change Operating revenues: Trash assessments $ 4,681,766 $ 4,921,705 $ (239,939) Sewer assessments 5,081,699 5,133,674 (51,975) Permits and inspection fees 118,041 140,536 (22,495) Connection fees 134,158 189,262 (55,104) Other services 312,171 251,556 60,615 Total operating revenues 10,327,835 10,636,733 (308,898 ) Non-operating revenues: Investment income (loss) 291,073 (144,970)436,043 Taxes 235,336 301,046 (65,710) Other revenues 77,814 97,383 (19,569) Gain on disposal of assets 6,006 - 6,006 Total non-operating revenues 610,229 253,459 356,770 Total revenues $ 10,938,064 $ 10,890,192 $ 47,872 COSTA MESA SANITARY DISTRICT Management’s Discussion and Analysis (Continued) See independent auditors’ report. - 8 - Some of the more significant changes consisted of the following:  The annual trash assessment decreased $239,939 as a result of the Board’s reduction in rates.  Investment income increased $436,043 as a result of an increase in the market value of the District’s investments.  Taxes decreased by $65,710 as a result of the elim ination of one-time re venue received due to the elimination of redevelopment agencies of cities and a realloca tion of revenue by the County. Total District Expenses 2014 2013 Change Operating expenses: Solid waste disposal $ 2,356,405$ 2,365,389$ (8,984) Liquid waste disposal 1,591,0511,295,029296,022 Recycling and disposal charges 2,121,4072,102,04619,361 Administration and other 2,160,9502,030,985129,965 Repairs and maintenance 224,117160,12063,997 Depreciation 1,604,500 1,715,991 (111,491) Total operating expenses 10,058,430 9,669,560 388,870 Non-operating expenses: Other expenses 350,000 - 350,000 Loss on disposal of assets - 114,692 (114,692) Total non-operating expenses 350,000 114,692 235,308 Total expenses $ 10,408,430 $ 9,784,252 $ 624,178 Some of the more significant changes consisted of the following:  Liquid waste disposal expenses increased by $296,022 due to the timi ng of completion of capital improvement projects.  Other expenses increased by $350,000 to record the potential fine resulting from the likelihood of an unfavorable outcome due to a sewer spill on August 31, 2013.  Loss on disposal of assets decreased by $114,692 due to no assets being disposed of during the fiscal year.  Salaries and benefits increased by $49,003 as a re sult of less vacate positions however still not fully staffed.  Depreciation decreased by $111,491 due to assets becoming fully depreciated during the fiscal year. COSTA MESA SANITARY DISTRICT Management’s Discussion and Analysis (Continued) See independent auditors’ report. - 9 - Capital Asset Administration Changes in capital assets for the year ended June 30, 2014 were as follows: Balance July 1, 2013 Additions Transfers/ Deletions Balance June 30, 2014 Non-depreciable assets $ 1,311,573 $ 1,337,170 $ 581,450) $ 2,067,293 Depreciable assets 90,790,977 670,130 (90,411) 91,370,696 Accumulated depreciation (52,308,960 ) (1,604,500 ) 80,704 (53,832,756 ) Total capital assets, net $39,793,590 $ 402,800 $ (591,157 ) $ 39,605,233 Changes in capital assets for the year ended June 30, 2013 were as follows: Balance July 1, 2012 Additions Transfers/ Deletions Balance June 30, 2013 Non-depreciable assets $ 1,149,384 $ 1,376,130 $(1,213,941) $ 1,311,573 Depreciable assets 89,359,448 1,686,928 (255,399) 90,790,977 Accumulated depreciation (50,715,903 ) (1,715,991 ) 122,934 (52,308,960 ) Total capital assets, net $39,792,929 $ 1,347,067 $(1,346,406 ) $ 39,793,590 At the end of fiscal year 2014 and 2013, the Dist rict’s investment in capital assets were $39,605,233 and $39,793,590 (net of accumulated deprec iation), respectively, a decrease of $188,357. The investment in capital assets includes land, property ri ghts, subsurface sewer lines, pump stations, buildings and structures, equipmen t, vehicles and construc tion in progress, etc. Additional information on the District’s capital a ssets can be found in Note 3 of the Notes to Financial Statements. Long-Term Debt As of June 30, 2014, the Distri ct had no long-term debt. Economic Factors and Next Year’s Budgets Due to the District’s healthy po sition in its Solid Waste Fund, th e Board of Directors reduced the assessment for trash collection serv ices from $228 per year to $216 per year. There was no change in the sewer rate. The District is anticipating a s light increase in property tax revenue due to the improved economic conditions. COSTA MESA SANITARY DISTRICT Management’s Discussion and Analysis (Continued) See independent auditors’ report. - 10 - New programs to be funded during the year ending June 30, 2015 include the continued rehabilitation of the District’s manholes to ensure that their structural integrity is meeting industry standards, as well as beginning to construct grade 4 sewer line pha se 1 repairs. The budget also includes funding to replace electrical panels a nd pumps at the District’s pumps stations. Subsequent to the adoption of th e budget, the Board of Directors approved the purchase of six new portable generators for backup power at various pump stations, and a new SCADA Technician/Industrial Electrician to maintain the pump stations. In the Solid Waste Fund, the Distri ct will begin implementation of an organics recycling program, starting with programs to educate the public. Request for Information The financial report is designed to provide our Boar d of Directors, citizens, customers, ratepayers, investors and creditors with a gene ral overview of the District’s finances and to demonstrate the District’s accountability for the funds it receives. If you have que stions about the report or need additional financial information, contact the District’s Finance Department at 628 W. 19 th Street, Costa Mesa, California 92627. -11 -BASIC FINANCIAL ST AT EMENTS Solid Liquid Waste Waste ASSETS:CURRENT ASSETS:Cash and cash equivalents (Note 2)2,464,252 $ 6,007,576 $ Investments (Note 2)3,404,582 8,299,997 Accounts receivable 25,071 3,314 Interest receivable 8,654 20,496 Assessments receivable 101,292 126,418 Inventory - 73,625 Prepaid expenses 70 130 Due from other governments - 1,302 TOTAL CURRENT ASSETS 6,003,921 14,532,858 NONCURRENT ASSETS:Capital assets (Note 3):Non-depreciable - 2,067,293 Depreciable, net of accumulated depreciation 21,692 37,516,248 TOTAL NONCURRENT ASSETS 21,692 39,583,541 TOTAL ASSETS 6,025,613 54,116,399 LIABILITIES:COSTA MESA SANITARY DISTRICT COMBINED STATEMENT OF NET POSITION June 30, 2014 (With prior year data for comparison only)LIABILITIES:CURRENT LIABILITIES:Accounts pay able 436,054 999,456 Accrued liabilities 19,169 58,250 Deposits payable - 100,000 Compensated absences 9,865 20,135 TOTAL CURRENT LIABILITIES 465,088 1,177,841 NON-CURRENT LIABILITIES:Compensated absences 11,320 23,103 Other post-employment benefits (Note 5)4,400 8,834 TOTAL NON-CURRENT LIABILITIES 15,720 31,937 TOTAL LIABILITIES 480,808 1,209,778 NET POSITION:Net investment in capital assets 21,692 39,583,541 Unrestricted 5,523,113 13,323,080 TOTAL NET POSITION 5,544,805 $ 52,906,621 $ See independent auditors' report and notes to financial statements.- 12 - Other Enterprise Fund 2014 2013 235,497 $ 8,707,325 $ 7,586,401 $ 325,361 12,029,940 11,770,998 - 28,385 49,233 683 29,833 25,305 - 227,710 363,343 - 73,625 67,274 - 200 - - 1,302 - 561,541 21,098,320 19,862,554 - 2,067,293 1,311,573 - 37,537,940 38,482,017 - 39,605,233 39,793,590 561,541 60,703,553 59,656,144 To tals - 1,435,510 932,115 - 77,419 49,161 - 100,000 100,000 - 30,000 28,600 - 1,642,929 1,141,331 - 34,423 17,009 - 13,234 19,471 - 47,657 36,480 - 1,690,586 1,177,811 - 39,605,233 39,793,590 561,541 19,407,734 18,684,743 561,541 $ 59,012,967 $ 58,478,333 $ - 13 - Solid Liquid Waste Waste OPERATING REVENUES:Trash assessments 4,681,766 $ -$ Sewer assessments - 5,081,699 Permits and inspection fees - 118,041 Connection fees - 134,158 Other services 102,003 5,168 TOTAL OPERATING REVENUES 4,783,769 5,339,066 OPERATING EXPENSES:Solid waste disposal 2,356,405 - Liquid waste disposal - 1,591,051 Recy cling and disposal charges 2,121,407 - Administration and other 795,827 1,365,123 Repairs and maintenance 31,912 192,205 Depreciation 8,976 1,595,524 TOTAL OPERATING EXPENSES 5,314,527 4,743,903 OPERATING INCOME (LOSS)(530,758) 595,163 NONOPERATING REVENUES (EXPENSES):Investment income (loss)69,965 214,781 COSTA MESA SANITARY DISTRICT COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the year ended June 30, 2014 (With prior year data for comparison only)Investment income (loss)69,965 214,781 Taxes 235,336 - Other revenues 77,814 - Other expenses - (350,000) Gain (loss) on disposal of assets - 6,006 TOTAL NONOPERATING REVENUES (EXPENSES)383,115 (129,213) INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS (147,643) 465,950 CAPITAL CONTRIBUTIONS AND TRANSFERS:Capital contributions - 5,000 Transfers in - - Transfers out - - TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS - 5,000 CHANGES IN NET POSITION (147,643) 470,950 NET POSITION - BEGINNING OF YEAR, AS ORIGINALLY REPORTED 5,692,448 52,435,671 RESTATEMENT OF NET POSITION - - NET POSITION - BEGINNING OF YEAR, AS RESTATED 5,692,448 52,435,671 NET POSITION - END OF YEAR 5,544,805 $ 52,906,621 $ See independent auditors' report and notes to financial statements.- 14 - Other Enterprise Fund 2014 2013 -$ 4,681,766 $ 4,921,705 $ - 5,081,699 5,133,674 - 118,041 140,536 - 134,158 189,262 205,000 312,171 251,556 205,000 10,327,835 10,636,733 - 2,356,405 2,365,389 - 1,591,051 1,295,029 - 2,121,407 2,102,046 - 2,160,950 2,030,985 - 224,117 160,120 - 1,604,500 1,715,991 - 10,058,430 9,669,560 205,000 269,405 967,173 6,327 291,073 (144,970) To tals 6,327 291,073 (144,970) - 235,336 301,046 - 77,814 97,383 - (350,000) - - 6,006 (114,692) 6,327 260,229 138,767 211,327 529,634 1,105,940 - 5,000 5,000 - - 138,000 - - (138,000) - 5,000 5,000 211,327 534,634 1,110,940 350,214 58,478,333 57,564,829 - - (197,436) 350,214 58,478,333 57,367,393 561,541 $ 59,012,967 $ 58,478,333 $ - 15 - Solid Liquid Waste Waste CASH FLOWS FROM OPERATING ACTIVITIES:Receipts from customers 4,919,381 $ 5,404,992 $ Pay ments to suppliers (5,154,780) (2,041,175) Pay ments to employees (333,055) (737,241) NET CASH PROVIDED (USED)BY OPERATING ACTIVITIES (568,454) 2,626,576 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Taxes received 235,336 - Cash received from other funds - - Cash paid to other funds - - NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 235,336 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Acquisition and construction of capital assets - (1,420,518) Proceeds from sale of assets - 15,381 COSTA MESA SANITARY DISTRICT COMBINED STATEMENT OF CASH FLOWS For the year ended June 30, 2014 (With prior year data for comparison only)Proceeds from sale of assets - 15,381 NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES - (1,405,137) CASH FLOWS FROM INVESTING ACTIVITIES:Interest on cash and investments 16,258 106,768 Increase (decrease) in investments 377,679 (366,481) NET CASH PROVIDED (USED)BY INVESTING ACTIVITIES 393,937 (259,713) NET INCREASE IN CASH AND CASH EQUIVALENTS 60,819 961,726 CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2,403,433 5,045,850 CASH AND CASH EQUIVALENTS - END OF YEAR 2,464,252 $ 6,007,576 $ See independent auditors' report and notes to financial statements.- 16 - Other Enterprise Fund 2014 2013 205,000 $ 10,529,373 $ 11,039,974 $ - (7,195,955) (7,170,807) - (1,070,296) (1,123,310) 205,000 2,263,122 2,745,857 - 235,336 301,046 - - 138,000 - - (138,000) - 235,336 301,046 - (1,420,518) (1,844,117) - 15,381 17,773 To tals - 15,381 17,773 - (1,405,137) (1,826,344) 3,558 126,584 133,786 (110,179) (98,981) (1,006,901) (106,621) 27,603 (873,115) 98,379 1,120,924 347,444 137,118 7,586,401 7,238,957 235,497 $ 8,707,325 $ 7,586,401 $ (Continued)- 17 - Solid Liquid Waste Waste RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:Operating income (loss)(530,758)$ 595,163 $ Adjustments to reconcile operating income to net cash provided by operating activities:Depreciation 8,976 1,595,524 Other revenues (expenses)77,814 (350,000) Changes in assets and liabilities:(Increase) decrease in accounts receivable 20,760 88 (Increase) decrease in assessments receivable 68,493 67,140 (Increase) decrease in inventory - (6,351) (Increase) decrease in prepaid expenses (70) (130) (Increase) decrease in due from other governments - (1,302) Increase (decrease) in accounts pay able (189,331) 692,726 Increase (decrease) in accrued liabilities 3,749 24,509 Increase (decrease) in unearned revenue (31,455) - Increase (decrease) in due to other governments - - Increase (decrease) in compensated absences 5,426 13,388 Increase (decrease) in OPEB liabilities (2,058) (4,179) (CONTINUED)For the year ended June 30, 2014 (With prior year data for comparison only)COSTA MESA SANITARY DISTRICT COMBINED STATEMENT OF CASH FLOWS To tal adjustments (37,696) 2,031,413 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (568,454)$ 2,626,576 $ NONCASH CAPITAL FINANCING ACTIVITIES:Capital assets of $5,000 were acquired through contributions from developers.NONCASH INVESTMENT ACTIVITIES:Fair market value of investments increased $159,961.See independent auditors' report and notes to financial statements.- 18 - Other Enterprise Fund 2014 2013 205,000 $ 269,405 $ 967,173 $ - 1,604,500 1,715,991 - (272,186) 97,383 - 20,848 (23,013) - 135,633 7,795 - (6,351) (33,915) - (200) - - (1,302) 352,217 - 503,395 (250,585) - 28,258 (18,495) - (31,455) (31,141) - - (43,869) - 18,814 6,630 - (6,237) (314) To tals - 1,993,717 1,778,684 205,000 $ 2,263,122 $ 2,745,857 $ - 19 - -20 -THIS PAGE INTENTIONALL Y LEFT BLANK COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS June 30, 2014 See independent auditors’ report.-21 -1.SUMMAR Y OF SIGNIFICANT A CCOUNTING POLICIES:a.The Organization:The Costa Mesa Sanitary District (the District) was incorporated in February 1944 pursuant to Division VI , Part 1 of the Health and Safet y Code of the State of California (sometimes referred to as the Sanitary D istrict Act of 1923). A t the present time, the boundaries of the District extend into the Cities of Costa Mesa and Newport Beach as well as unincorporated areas within the County of Orange.b.Uniform Accounting S ys tem:The accounts of th e District are organized on the basis of funds, each of which is considered a separate accounting entity . The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources , liabilities, deferred inflows of resources, net position , revenues and expenses. This sy stem permits separate accounting for each established fund ,for purposes of comply ing with : (a )applicable legal provisions, (b)Board of Director ’s ordinances and re solutions and (c)other requirements. Also, the accounts have been maintained in accordance with the California State Controller ’s uniform sy stem of accounts.c.Basis of Presentation:The accounts of the District are presented as enterprise fund s . A n e nterprise fund is a p roprietary t ype fund used to account for operations (a) that are financed and operated in a manner similar to private business enterprises -where the intent of the governing body i s that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily t hrough user charges; or (b)where the governing body h as decided that periodic determination of revenues earned, expenses incurred, and/or net inco me is appropriate for capital maintenance, public policy , management control, accountability or other purposes.The District reports the following major enterprise funds:Solid Wa ste -This fund is used to account for the collection of trash charges, the cost of managing the refuse collection and recy cling processes, and the cost of contract services provided to the District.Liquid Wa ste -This fund is used to account for the collection of sewer charges, the cost of construction, maintaining sewer lines and pump stations, and the cost of contract services provided to the District. T his fund also account s for the collection of charges paid by o r on behalf of the propert y owner for the construction of street sewers, and cost of acquisition, construction, and reconstruction of sewage facilities within the District. COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent audi tors’ report.-22 -1.SUMMAR Y OF SIGNIFICANT A CCOUNTING POLICIES (CONTINUED):c .Basis of Presentation (Continued):Other Enterprise Fund:The o ther e nterprise f und accounts for the accumulation of reserves for the purchase of new or replacement vehicles, equipment and computers. R evenues are recorded as charges for rental of assets to the Solid and Liquid W aste Funds.d .Measurement Focus and Basis of Accounting:Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. B asis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied. T he accompan yi ng financial statements are reported using the economic r esources measurement focus, and the accrual basis of accounting. Under the economic resources measurement focus all assets , deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with these activities are included on the Statement of Net Position . T he St atement of Revenues, Expenses and Changes in Net Position present s increases (revenues) and decreases (expenses)in total net position . Under the accrual basis of accounting, r evenues are re corded when earned and expenses are recorded when a liability i s incurred, regardless of the timing of related cash flows.e .New Accounting Pronouncements:Current Year Standards :GASB 66 -“Technical Corrections, an amendment of GASB Statement No. 10 and Statement No. 62 ”, required to be implemented in the current fiscal y ear did not impact the District.GASB 70 -“Accounting and Financial Reporting for Nonexchange Financial Guarantees ”, required to be implemented in the current fiscal ye ar did not im pact the District. COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-23 -1.SUMMAR Y OF SIGNIFICANT A CCOUNTING POLICIES (CONTINUED):e .New Accounting Pronouncements (Continued):Pending Accounting Standards:GASB has issued the following statements which may i mpact the District’s financial reporting requi rements in the future:GASB 68 -“Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27 ”, effective for the fiscal year s beginning after June 15, 2014.GASB 69 -“Government Combinations and Disposals of Government Operati ons ”, effective for periods beginning after December 15,2013.GASB 71 -“Pension Transition for Contributions Made Subsequent to the Measurement Date, an Amendment of GASB Statement No. 68 ”, effective for periods beginning after June 15, 2014.f.Deferre d Outflows/Inflows of Resources:In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferr ed outflows of re sour ces , represents a con sumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense) until then. T he District does not have deferred outflows of resources .In addition to liabilities, the statement of net position wi ll sometimes report a separate section for deferred inflows of resources. T his separate financial statement element, deferr ed inflows of r esour ces , represents an acquisition of net position that applies to future periods and will not be recognized as an i nflow of resources (revenue) until that time. T he District does not have deferred inflows of resources.g.Net Position Flow As sumption:Sometimes the District will fund outlay s for a particular purpose from both restricted (e.g.,restricted bond or gra nt proceeds) and unrestricted resources. I n order to calculate the amounts to report as restricted -net position and unrestricted -net position, a flow assumption must be made about the order in which the resources are considered to be applied.It is t he District’s policy t o consider restricted -net position to have been depleted before unrestricted -net position is applied. COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-24 -1.SUMMAR Y OF SIGNIFICANT A CCOUNTING POLICIES (CONTINUED):h .Operating Revenues and Expenses:Operating revenues, such as c harges for services (solid and liquid waste ),result from exchange transactions associated with the principal activity o f the District. Ex change transactions are those in which each party r eceives and gives up essentiall y equal values. Nonoperating revenue s, such as property t axes and assessments, and investment income, result from nonexchange transactions or ancillary a ctivities in which the District gives (receives) value without directly receiving (giving) equal value in exchange .Operating expenses inc lude the cost of services, administrative expenses and depreciation on capital assets.i .Accounts Receivable:Management has evaluated the accounts receivable and believes they are all collectible. Management evaluates all accounts receivable and if i t is determined that they are uncollectible they are written of f as a bad debt expense.j .Capital Assets:Capital assets purchased by t he District are capitalized at cost. D ata reflected in the District’s capital asset records include estimates of ori ginal cost as determined by knowledgeable District personnel. C ontributed capital assets, consisting primaril y of donated subsurface lines dedicated to the District by c ontractors or other governmental agencies are recorded as contributed capital assets, which increases the net position of the District. S uch contributed capital assets are recorded at their fair market value at the time of donation.Any s ingle item purchased by t he District with a cost greater than or equal to $5 ,000 and an estimated usef ul life of greater than one year is capitalized and depreciated. D epreciation is charged to operations using the straight -line method based on the estimated useful life of the asset. The estimated useful lives a r e as follows:Buildings 2 0 -50 ye ars Imp rovements 20 y ears Subsurface sewer lines 60 y ears Equipment 5 -20 y ears Ve hicles 5 -10 y ears Other 5 -20 y ears COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-25 -1.SUMMAR Y OF SIGNIFICANT A CCOUNTING POLICIES (CONTINUED):k .Capital Contributions:Capital contributions represent cash and capital asset additions contributed to the District by propert y owners or real estate developers desiring services that require capital expenditures or capacity commitment.l .Property T axes:The Orange County A ssessor ’s Of fice assesses all real and personal pr operty w ithin the County each ye ar . T he Orange County T ax Collector ’s O ffice bills and collects the District’s share of propert y taxes and assessments. T he Orange County T reasurer ’s O ffi ce remits current and delinquent property t ax collections to the Dis trict throughout the ye ar . P ropert y taxes in California are levied in accordance with Article XIIIA o f the State Constitution at 1% of county wide assessed valuations. T his levy i s allocated pursuant to state law to the appropriate units of local governme nts.Property t axes receivable at ye ar -end are related to property t axes collected by t he Orange County T ax Collector which have not been credited to the District’s cash balance as of June 30. The propert y tax calendar is as follows:Lien Date:January 1 Lev y Date:July 1 Due Dates:First Installment -November 1 Second Installment -March 1 Collection Dates:First Installment -December 10 Second Installment -April 10 m .Maintenance Costs:All expen ses for maintenance and repairs of property , incl uding renewals of minor items, are charged to the appropriate maintenance expense accounts. A b etterment or replacement of a unit of propert y is accounted for as an addition and retirement of capital assets. COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-26 -1.SUMMAR Y OF SIGNIFICANT A CCOUNTING POLICIES (CONT INUED):n .Compensated Absences:Accumulated unpaid vacation and other employ ee benefit amounts are accrued when vested. At June 30, 2014 , compensated absences pay able amount ed t o $64,423 , the total of which is considered a long -term liability .Compensated absences are comprised of unpaid vacation leave which is accrued when benefits are full y vested. The District’s liability for compensated absences is determined annually .Cha nges to compensated absences for 201 4 , were as follows:Balance Balance Current Long -Te rm June 30,2013 Earned Ta ken June 30, 201 4 Portion Portion Compensated a bsences $45,609 $49,10 2 $(30,288 )$64,243 $30,000 $34,243 o .Claims and Judgments:When it is probable that a claim liability h as been incurred at ye ar -end, and the amount of the loss can be reasonabl y estimated, the District records the estimated loss, net of an y insurance coverage under its p articipation in the J oint P ower I nsurance A uthority p rogram. At June 30, 2014 , in the opinion of the District’s legal counsel, the District had no material claims which would require lo ss provision in the financial statements. S mall dollar claims and judgments are recorded as expen s es when paid.p .Investments:Investments are stated at fair value (quoted market price or the best available estimates thereof). N et increase (decrease)in the fair value of investments, which consists of realized gains (losses) and the unrealized gains (losses), is shown as investment income (loss)in the combined statement of revenues, expenses and changes in net position . COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-27 -1.SUMMAR Y OF SIGNIFICANT A C COUNTING POLICIES (CONTINUED):q .Cash and Cash Equivalents:For purposes of the statement of cash flows, cash equivalents are defined to include an investment in the District’s cash and investment pool, as well as any d irect investment in short -term, h ighl y liquid investments that are both readily c onvertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and have an original maturity d ate of three months or less. Investments in United States Go vernment S ponsored Agency S ecurities are not considered to be cash equivalents as defined above and, therefore, are excluded from the statement of cash flows.r .Prior Ye ar Data:Selected information regarding the prior year has been included in the accompany ing financial statements. This information has been included for comparison purposes only a nd does not represent a complete presentation in accordance with generall y accepted accounting principles. Accordingl y,such information should be read in conjunction with the District ’s prior ye ar financial statements, from which this selected financial data was derived.s .Use of Estimates:The preparation of financial statements in accordance with accounting principle s generall y accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly , actual results could dif fer from those estimates.2.CASH AND INVESTMENTS:Cash and Investments:Cash and investments as of June 30, 2014 are reported in the accompany ing combined statement of net position a s follows:Cash and cash equivalents $8,707,325 Investme nts 12,029,940 To tal $20,737,265 COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-28 -2.CASH AND INVESTMENTS (CONTINUED):Cash and Investments (Continued):Cash and investments as of June 30, 2014 consisted of the following:Deman d Deposits:Cash deposits $8,248 Petty cash 700 To tal demand deposits 8,948 Investments:United States Government Sponsored Agency Securities 11 ,930,500 California Local Agency I nvestment Fund (LAIF)8,472,130 Nego tiable Certificates of Depo sit 99,440 Money Market Mutual Funds 226,247 To tal investments 20,728,317 To tal cash and investments $20,737,265 Investments Authorized by the California Government Code and the District’s Investment Policy:The table below identifies the inv estment ty pes that are authorized for the District by the California Government Code (or the District’s investment policy , where more restrictive). T he table also identifies certain provisions of the California Government Code (or the District’s investmen t policy , where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.Maximum Maximum Maximum Percentage Investment Authorized I nvestment Ty pe Maturity of Portfolio in One Issuer United States Tr easury Obligations 5 y ears None None Federal Agencies (United States Government Sponsored Agency Securities )5 y ears None None Negotiable Certificates of Deposit 1 y ear 25%None Banker ’s A cceptances 180 day s 25%1 5%Commercial Paper 270 day s 2 5%10%Negotiable Certificates of Deposit 5 y ears 25 %10%Medium -Te rm Corporate Notes 5 y ears 2 0 %10%Money Market Mutual Funds 5 y ears 20%None Local Agency I nvestment Fund (LAIF)N/A 50%None COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-29 -2.CASH AND INVESTMENTS (CONTINUED):Disclosur es Relating to Inter est Rate Risk:Interest rate risk is the risk that changes in market interest rates will adversely a ffect the fair value of an investment. G enerally , the longer the maturity o f an invest ment the greater the sensitivity o f its fair value to changes in market interest rates. O ne of the way s that the District manages its exposure to interest rate risk is by p urchasing a combination of shorter term and longer term investments and by t iming c ash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity e venl y over time as necessary t o provide the cash flow and liquidity needed for operations.In formation about the sensitivity o f the fair values of the Di strict’s investments to market interest rate fluctuations is provided by t he following table that shows the distribution of the District’s investments by maturit y as of June 30, 2014 .Remaining Maturity (in Months)12 M onths 1 3 -24 25 -60 Investment T ype or Less Months Months To tal United S tates Government Sponsored Agency Securities $-$-$11 ,930,500 $11 ,930,500 Local Agency Investment Fund 8,472,130 --8,472,130 Negotiable Certificates of Deposit --99,440 99,440 Money Market Mutual Funds 226,247 --226,247 $8,698,377 $-$12,029,940 $20,728,317 Disclosur es Relating to Cr edit Risk:Generally , credit risk is the risk that an issuer of an investment will not fulfill its obligati on to the holder of the investment. T his is measured by t he assignment of a rating by a n ationally recognized statistical rating organization. P resented below is the California Government Code, the District’s investment policy a nd the actual rating by S t andards and Poor as of ye ar end for each investment ty pe:Minimum Legal Investment T ype To tal Rating AAA AA+Unrated United S tates Government S ponsored A gency Securities $11 ,930,500 N/A $-$11 ,930,500 $-Local A gency Investment Fund 8,472,130 N/A --8,472,130 Negotiable Certificates of Deposit 99,440 N/A --99,440 Money Market Mutual Funds 226,247 A 226,247 --$20,728,317 $226,247 $11 ,930,500 $8,571,570 COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-30 -2.CASH AND INVESTME NTS (CONTINUED):Concentration of Cr edit Risk:The investment policy o f the District contains no limitations on the amount that can be invested in any one issuer bey ond that stipulated by t he California Government Code. I nvestments in an y one issuer tha t represents 5% or more of total District’s investments are as follows:Reported Percent of Issuer Investment T ype Amount Investment Federal Home Loan Bank United S tates Government Sponsored Agency Securities $4,961,930 2 3.94 %Federal National Mortgage United S tates Government Sponsored Association Agency Securities 2,985,720 14.40 %Federal Home Loan Mortgage United S tates Government Sponsored Corporation Agency Securities 2,990,490 14.43 %Custodial Cr edit Risk:Custodial credit risk for deposits is the risk that, in the event of the failure of a depository f inancial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in th e possession of an outside part y. The custodial credit risk for investments is the risk that, in the event of the failure of the counterpart y (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or co llateral securities that are in the possession of another party . The California Government Code and the District ’s investment policy d o not contain legal or policy r equirements that would limit the exposure to custodial credit risk for deposits or investme nts, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by s tate or local governmental units by p ledging securities in an undivided collateral pool held by a d epository regulated under state law (unless so waived by t he governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by t he public agencies. California law also allows financial in stitutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The District’s deposits were collateralized as required b y California Law.Investment in S tate Investment Pool:The District is a voluntary participant in the Local Agency I nvestment Fund (L AI F) that is regulated by C alifornia Government Code Section 16429 under the oversight of the Tr easurer of the State of California. T he fair value of the District’s investment in t his pool is reported in the accompan yi ng financial statements at amounts based upon the District’s pro -rata share of the fair value provided by L AI F for the entire LA IF portfolio (in relation to the amortized cost of that portfolio). T he balance available for withdrawal is based on the accounting records maintained by LA IF , which are recorded on an amortized cost basis. COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-31 -3.CAPI TA L A SSETS:Changes in capital assets for the ye ar ended Ju ne 30, 2014 are as follows:Balance at Balance at June 30, 2013 Additions Deletions June 30, 2014 Capital assets, not being depreciated:Land $979,655 $-$-$979,655 Property rights 4,025 --4,025 Construction in progress 327,893 1 ,337,170 (581,450 )1,083,613 To tal capital assets, not being depreciated 1,31 1,573 1,337,170 (581,450 )2,067,293 Capital assets, being depreciated:Subsurface sewer lines 85,595,210 5 01,016 (1,920 )86,094,30 6 Building and improvements 3,916,504 --3,916,504 E quipment 777,358 --777,358 Ve hicles 501,905 169,1 14 (88,491 )582,528 To tal capital assets, being depreciated 90,790,977 670,13 0 (90,41 1 )91,370,696 Less accumulated depreciation :Subsurface sewer lines (51,580,515 )(1,392,92 1 )1,50 4 (52,971,932 )Building and improvements (327,413 )(78,178 )-(405,591 )Equipment (257,476 )(79,021 )-(336,497 )Ve hicles (143,556 )(54,380 )79,200 (11 8,736 )To tal accumulated depreciation (52,308,960 )(1,604,500 )80,70 4 (53,832,756 )To tal capital assets b eing depreciated, net 38,482,017 (934,3 70 )(9,70 7 )37,537,940 To tal capital assets, net $39,793,590 $402,80 0 $(591,15 7 )$39,605,233 Depreciation expense was charged to functions of the District as follows:Solid waste $8,976 Liquid was te $1,595,524 COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-32 -4 .PENSI ON PLAN:a.Plan Description:The Costa Mesa Sanitary District contributes to the California Public Employ ees Retirement Sy stem (CalPERS), a cost -sharing multiple -employ er public employ ee defined benefit pension plan. I t partic ipates in the 2% at 55 (Tier I) and 2% at 60 (Tier II) Risk Pools of CalPERS, effective July 1 , 2004 and October 1, 2011, respectivel y.The Miscellaneous 2% at 62 Risk Pool was created by California Employ ees’ Pension Reform Act (PEPRA) as of January 1,20 13 and is open to all new employ ees who do not qualify f or the Miscellaneous 2% at 55 Risk Pool. CalPERS provides retirement and disability b enefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public agencies within the State of California. B enefit provisions and all other requirements are established by s tate statute and District ordinance. C opies of CalPERS annual financial repo rt may b e obtained from their executive office: 400 P Street, Sacramento, CA 95814. b.Funding Policy :The contribution rate for plan members of both Tier I and Tier II is 7% of their covered salary , of which, the District pays 7% for Tier I and 0% (z ero percent) for Tier II on behalf of the employ ee. A lso, the District is required to contribute the actuarially d etermined remaining amounts necessary to fund the benefits for its members.Active plan members of Miscellaneous 2% at 62 Risk Pool are requi red to contribute 6.25% of their annual covered salary . T he required employ er contribution rate of the fiscal year ended June 30, 201 4 for the Miscellaneous 2% at 62 Risk Pool was 6.25%. P EPRA does not allow the District to pay a ny portion of the employ e e required contribution on behalf of the employ ee. The required employ er contribution rates are equal to the annual pension costs (APC) percentage of pay roll for fiscal ye ars 2014, 2013, and 2012,as noted below. T he contribution requirements of the plan members are established by State statute, and the employ er contribution rate is established and may be amended by CalPERS. For fiscal ye ars 2014, 2013, and 2012 , the District’s annual employ er contributions for the CalPERS plan were equal to the District ’s required and actual contributions for each fiscal y ear as follows:Three -Ye ar T rend Information for CalPERS Annual Fiscal Pension Cost Percentage Net Ye ar (APC) T otal of APC Pension Ended Ti ers I & II Contributed Obligation 6/30/12 $104,790 100%$-6/30/13 91,941 100%-6/30/14 95,754 100%- COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-33 -4.PENSI ON PLAN (CONTINUED):c.Funding Status:As of July 1 , 2005, the District ’s miscellaneous plan became part of a CalPERS Risk Pool for empl oy ers with less than 100 active plan members. T he risk pool combines the assets and liabilities across employers of the same risk pool to provide a method to spread the risk of uncertain gains and losses over a large base of members. A s part of a cost -sh aring multiple -employ er defined benefit plan, disclosure of the schedule of funding progress is not required as information is not specific to the District.5.OTHER POST -EMPL OYMENT BENEFITS (OPEB)PL AN :a.Plan Description :Eligibility :The District, through an agent multiple -employ er plan, provides post -employ ment health care benefits. T he plan is part of the Public Agenc y portion of the California Employ ers’ Retiree Benefit Trust Fund (CERBT), an agent multiple -employ er plan administered by C aliforn ia Public Employ ees’ Retirement Sy stem (CalPERS), which acts as a common investment and administrative agent for participating public employ ers within the State of California. T he following requirements must be satisfied in order to be eligible for lifeti me post employ ment medical benefits: (1) Attainment of age 50, and 5 y ears of CalPERS service (or disability ), and (2) Retirement from CalPERS and from the District (the District must be the last employ er prior to retirement). C urrently , there are six re tired employ ees who have met these eligibility requirements and three of which have elected to receive the benefits. T he total pay ments made for these benefits for retired employ ees for the y ear ended June 30, 201 4 were $23,336 .Membership in the OPEB pl an consisted of the following members as of June 30 , 201 4 :Active plan members 10 Retirees and beneficiaries receiving benefits 3 Separated plan members entitled to but not ye t receiving benefits 2 Total plan membership 1 5 COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-34 -5.O THER POST -EMPL OYMENT BENEFITS (OPEB)PL AN (CONT INUED):a.Plan Description (Continued):Benefits:The District offers post employ ment medical benefits to retired employ ees who satisfy t he eligibility r ules. R etirees may e nroll in an y plan available thr ough the District’s CalPERS medical plan. T he contribution requirement of the Plan members and the District are established and may b e amended by t he Board of Directors. A s a member of the CalPERS medical plan the District is required to participate in i ts post employ ment medical benefit plan. The District currentl y pay s the CalPERS minimum required employ er contribution on an “Unequal” basis ($60 per month in 201 4 , Equal being $119 , and indexed to medical CPI p lus amortized factor, becoming equal in 202 4). The District currentl y has one retiree with a special agreement receiving $350 per month. T he special agreement was a Board approved policy issued to maintain the benefits offered to former City o f Costa Mesa employ ees accepting to become District em ploy ees.b.Funding Policy :The District is required to contribute the Annual Required Contribution of the Employ er (ARC), an amount actuarially d etermined in accordance with the parameters of GASB Statement No. 45. T he ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each ye ar and amortize any u nfunded actuarial liability (or funding excess) over a period not to exceed twenty -five ye ars with a remaining period of twenty -four ye ars at June 30,201 4. The current ARC rat e is 1.8 % of the annual covered pay roll.The District will pay 1 00% of the cost of the post employ ment benefit plan. T he District is currentl y funding the plan on a pay -as -you -go basis, through fiscal ye ar 201 4 and records a liabil ity for the difference between pay -as -you -go and the ac tuariall y determined ARC cost. c .Annual OPEB Cost and Net OPEB Obligation:The District’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employ er (ARC), an amount actuarially d etermined in accordance with parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each ye ar and to amortize any u nfunded liabilities of the plan o ver a period not to exceed twenty -five ye ars . COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-35 -5.OTHER POST -EMPL OYMENT BENEFITS (OPEB)PL AN (CONT INUED):c .Annual OPEB Cost and Net OPEB Obligation (Continued):The following table shows the component of the District’s annual OPEB costs for the ye ar , the amount actuall y contributed to the plan, and changes in the District’s net OPEB obligation .Annual required contribution (ARC)$17 ,000 Interest on Net OPEB obligation 1,364 Adjustment to ARC (1,265 )Annual OPEB cost 17,099 Contribution mad e, net of adjustment (23,336 )De crease in Net OPEB obligation (6,237 )Net OPEB obligation at June 30, 2013 19,471 Net OPEB obligation at June 30, 2014 $13,234 d .Trend Information:The District’s annual OPEB cost, the actual contribution, the percentage of annual OPEB costs contributed to the plan, and the net OPEB obligation the year ended June 30, 2014 and the two preceding ye ars were as follows:Actual Percentage Fiscal Annual Contribution of Annual Net Ye ar OPEB (Net of OPEB Costs OPEB Ended Cost Adjustments)Contributed Obligation 6/30/14 $17,099 $23,336 13 6 .48 %$13,234 6/30/13 16,686 17,000 101.88%19,471 6/30/12 21,000 1,215 5.79 %19,78 5 e .Funded Status and Funding Progress:As of June 30 ,20 13 , the most recent a ctuarial valuation date,t he actuarial accrued liability (AAL) f or benefits was $135 ,000 , and the actuarial value of assets (AVA)was $10,000 , resulting in an unfunded actuarial accrued liability (U A AL) of $125 ,000 and a funded ration (actuarial value of a ssets as a percentage of the actuarial accrued liability ) of 7.41%. The covered pay roll (annual pay roll of active employees covered by the plan) was $728 ,000 and the ratio of the UAAL to the covered pay roll was 1 7.17 %. COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-36 -5.OTHER POST -EMPL OYMENT BENEFITS (O PEB)PL AN (CONT INUED):f .Actuarial Methods and Assumptions:Projections of benefits for financial reporting purposes are based on the substantive plan and include the ty pes of benefits provided at the time of each valuation. The actuarial methods and a ssumptions used include techniques that are designed to reduce the effects of short -term volatility i n actuarial accrued liabilities and the actuarial value of assets consistent with the long -term perspective of the calculations. A ctuarial valuations of a n ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. E xamples include assumptions about future employ ment, mortality , and the healthcare cost trend. A mounts d etermined regarding the funded status of the plan and the annual required contributions of the District are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of fu nding progress, presented as required supplementary i nformation following the notes to basic financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.In t he June 30, 2013 actuarial investment valuation, the entry a ge normal cost method was used. T he actuarial assumptions included an inflation rate of 3.0% per annum, an investment return of 7% per annum, a pr ojected salary i ncrease of 3.25% per annum and a health inflation rate of 7 .5% per annum graded down in approximately o ne -half percent increments to an ultimate rate of 5%after the sixth ye ar . T he District is using the level percentage of pay roll method to allocate amortizat ion cost by y ear over a closed 23 ye ar period .6 .JOINT POWERS I NSURANCE AUTHORITY :The District is a member of the Special District Risk Management Authority .Description of the Authority:The Authority i s a risk -pooling self -insu rance authority , created under provisions of California Government Code Section 6500 et. seq. T he Authority ’s p urpose is to arrange and administer programs of insurance for the pooling of self -insured losses and to purchase excess insurance coverage. COSTA MESA SANI TARY DI STRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED)June 30, 2014 See independent auditors’ report.-37 -6 .JOINT POWERS I NSURANCE AUTHORITY (CONTINUED):Self -Insurance Pr ograms of the Authority:At June 30, 201 4 , the District participated in the Authority ’s self -insurance programs as follows:Property L oss -Insured up to insurable value with a $2,0 00 deduct ible for buildings and personal propert y and a $500 deductible for licensed vehicles .General Li ability -Insured up to $10 ,000,000 per occurrence with no annual aggregate limits and a $0 deductible , except $500 on propert y damage per occurrence.Auto L i abilit y -Insured up to $10 ,000,000 per occurrence with no annual aggregate limits and a $0 deductible , except $1,000 on propert y damage per occurrence.Wo rkers’ Compensation -In sured up to statutory limits.Public Of ficials’ E rrors and Omissions -In su red up to $10 ,000,000 per occurrence with an annual aggregate limit of $10 ,000,000 .In addition to the above, the Authorit y has purchased insurance coverage as follows:Employ ee Dishonesty Coverage -Insured up to $400,000 per occurrence.The District p ay s annual premiums for these coverages. T hey a re subject to retrospective adjustments based on claims expended. T he nature and amount of these adjustments cannot be estimated and are charged to expense s as invoice d . There were no instances in the past three years where a settlement exceeded the District’s coverage .7 .SUBSEQUENT EVENT S:Events occurring after Ju ne 30, 2014 have been evaluated for possible adjustments to the financial statements or disclosure as of December 19, 2014,which is the date these financial statements were available to be issued . -38 -THIS PAGE INTENTIONALLY LEFT BLANK -39 -REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS OTHER POST -EMPLOYMENT BENEFIT PLAN Actuarial UAAL as a Accrued Actuarial Value Unfunded Annual Percentage of Actuarial Liability of Assets AAL Funded Covered Covered Valuation (AAL)(AVA)(UAAL)Ratio Payroll Payroll Date (a)(b)(a) - (b)(b)/(a)(c)[(a)-(b)]/(c)6/30/2013 135,000 $ 10,000 $ 125,000 $ 7.41%728,000 $ 17.17%6/30/2012 131,000 - 131,000 0.00%897,000 14.60%See independent auditors' report.OTHER POST-EMPLOYMENT BENEFIT PLAN - 40 -For the y ear ended June 30, 2014 COSTA MESA SANI TARY DI STRI CT REQUI RED SUPPL EMENTARY I NFORMATI ON SCHEDULE OF FUNDING PROGRESS ST AT ISTICAL SECTION COSTA MESA SANI TARY DI STRICT DESCRI PTION OF STATI STICAL SECTION CONTENTS June 30, 2014 -41 -This part of the District’s comprehen sive annual financial report presents detailed information as a context for understanding what the information in the financial statements and the note disclosures say about the government’s overall financial health.Contents:Pages Financial Tr ends th ese schedules contain trend information to help the reader understand how the District’s financial performance and well -being have changed over time.42 -49 Revenue Capacit y these schedules contain information to help the reader assess the District’s mos t significant own source revenues, sewer and trash revenues.50 -53 Debt Capacit y these schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s ability to issue ad ditional debt in the future.5 4 -5 7 Demographic and Economic In formation th ese schedule s of fer demographic and economic indicators to help the reader understand the environment within which the District’s financial activities take place.5 8 -59 Operati ng Information these schedules contain service and infrastructure data to help the reader understand how the information in the District’s financial report relates to the services the District provides and the activities it performs.60 -62 2005200620072008 Changes in net position:Operating revenues6,792,623 $ 7,532,247 $ 8,209,035 $ 9,606,545 $ Operating expenses(7,091,449) (7,112,655) (7,371,732) (7,762,619) Depreciation and amortization(659,881) (681,562) (344,790) (478,763) Operating income (loss)(958,707) (261,970) 492,513 1,365,163 Non-operating revenue(expenses), net360,375 189,116 769,752 751,660 Net income (loss) before capital contributions(598,332) (72,854) 1,262,265 2,116,823 Capital contributions961,280 128,822 2,377,046 - Chan g es in net p osition 362,948 $ 55,968 $ 3,639,311 $ 2,116,823 $ Net position:Net investment in capital assets12,178,288 $ 11,965,261 $ 14,363,225 $ 17,040,959 $ Restricted for capital outlay2,632,700 2,732,231 8,157,794 6,028,258 Unrestricted6,939,816 7,109,280 2,925,064 4,493,689 Total net p osition 21,750,804 $ 21,806,772 $ 25,446,083 $ 27,562,906 $ Source: Costa Mesa Sanitary District - 42 -Fiscal Year Costa Mesa Sanitary District Changes in Net Position and Net Position by Component Last Ten Fiscal Years 2010 2009(As Restated)2011201220132014 10,144,512 $ 10,460,180 $ 10,731,490 $ 10,759,564 $ 10,636,733 $ 10,327,835 $ (7,945,850) (7,487,385) (8,160,177) (8,303,399) (7,953,569) (8,453,930) (573,004) (622,319) (1,540,281) (1,607,841) (1,715,991) (1,604,500) 1,625,658 2,350,476 1,031,032 848,324 967,173 269,405 659,472 1,245,767 434,597 740,072 138,767 260,229 2,285,130 3,596,243 1,465,629 1,588,396 1,105,940 529,634 14,000 4,243,681 - - 5,000 5,000 2,299,130 $ 7,839,924 $ 1,465,629 $ 1,588,396 $ 1,110,940 $ 534,634 $ 17,350,061 $ 40,022,038 $ 39,122,787 $ 39,792,929 $ 39,793,590 $ 39,605,233 $ 6,285,042 7,719,551 381,368 8,116 - - 6,226,933 6,769,215 16,472,278 17,763,784 18,684,743 19,407,734 29,862,036 $ 54,510,804 $ 55,976,433 $ 57,564,829 $ 58,478,333 $ 59,012,967 $ - 43 -Fiscal Year 2005200620072008 Trash assessments4,793,693 $ 5,101,835 $ 5,101,054 $ 5,136,643 $ Sewer assessments1,905,567 2,279,091 2,747,778 4,254,608 Permits and inspection fees54,897 71,560 190,412 22,552 Connection fees38,466 42,133 137,522 13,687 Other services and charges- 37,628 32,269 179,055 Total O p eratin g Revenues 6,792,623 $ 7,532,247 $ 8,209,035 $ 9,606,545 $ Source: Costa Mesa Sanitary District - 44 -Costa Mesa Sanitary District Operating Revenue by Source Last Ten Fiscal Years Fiscal Year 200920102011201220132014 5,168,413 $ 5,176,122 $ 5,185,184 $ 5,180,748 $ 4,921,705 $ 4,681,766 $ 4,632,923 5,124,283 5,116,190 5,117,377 5,133,674 5,081,699 28,183 22,870 46,222 83,237 140,536 118,041 24,270 11,468 28,865 78,230 189,262 134,158 290,723 125,437 355,029 299,972 251,556 312,171 10,144,512 $ 10,460,180 $ 10,731,490 $ 10,759,564 $ 10,636,733 $ 10,327,835 $ - 45 -Fiscal Year 2005200620072008 Solid waste disposal4,441,589 $ 4,650,142 $ 4,568,661 $ 4,584,097 $ Liquid waste disposal1,338,2011,274,9871,384,8021,540,711 General and administrative1,311,6591,187,5261,418,2691,637,811 Total O p eratin g Ex p enses 7,091,449 $ 7,112,655 $ 7,371,732 $ 7,762,619 $ Source: Costa Mesa Sanitary District - 46 -Costa Mesa Sanitary District Operating Expenses by Activity Last Ten Fiscal Years Fiscal Year 200920102011201220132014 4,499,524 $ 4,469,887 $ 4,510,918 $ 4,450,943 $ 4,483,980 $ 4,477,812 $ 1,516,3741,047,9771,619,7811,912,3411,438,6041,591,051 1,929,9521,969,5212,029,4781,940,1152,030,9852,385,067 7,945,850 $ 7,487,385 $ 8,160,177 $ 8,303,399 $ 7,953,569 $ 8,453,930 $ - 47 -Fiscal Year 2005200620072008 Investment income (loss)351,957 $ 165,387 $ 571,489 $ 469,376 $ Investment expense(58,003) (50,826) (43,941) - Taxes33,527 64,965 217,796 226,046 Other revenues 32,894 32,280 50,264 66,265 Other expenses- (22,690) - (10,027) Loss on disposal of assets- - (25,856) - Total non-o p eratin g revenues, net 360,375 $ 189,116 $ 769,752 $ 751,660 $ Source: Costa Mesa Sanitary District - 48 -Costa Mesa Sanitary District Non-operating Revenue (Expenses), net Last Ten Fiscal Years Fiscal Year 200920102011201220132014 297,158 $ 188,045 $ 154,279 $ 188,000 $ (144,970)$ 291,073 $ - - - - - - 223,789 220,329 212,004 214,579 301,046 235,336 151,007 838,628 69,856 424,291 97,383 77,814 - - - - - (350,000) (12,482) (1,235) (1,542) (86,798) (114,692) 6,006 659,472 $ 1,245,767 $ 434,597 $ 740,072 $ 138,767 $ 260,229 $ - 49 -Fiscal Year 2005200620072008 Sewer Customer Type Single family residential29.05 $ 31.37 $ 37.64 $ 56.47 $ Multi-family residential22.3724.1628.9943.49 Commercial-Average Strength (per 1000 sf)16.9018.2521.9032.85 Commercial-High Strength (per 1000 sf)Industrial (per 1000 sf)49.7853.7664.5196.77 Other (per 1000 sf)14.9716.1719.4029.11 Trash Customer Type Single family residential225.86 $ 239.41 $ 239.41 $ 239.41 $ Source: Costa Mesa Sanitary District Board of Directors approved rate ordinances and resolutions - 50 -Costa Mesa Sanitary District Sewer and Trash Revenue Rates Last Ten Fiscal Years Fiscal Year 200920102011201220132014 60.71 $ 66.23 $ 66.23 $ 66.23 $ 69.00 $ 85.34 $ 46.7551.0051.0051.0053.7750.09 35.3138.5238.5238.5238.6937.96 43.6641.40 104.03113.50113.50113.50113.7297.44 31.2934.1434.1434.14 239.41 $ 239.41 $ 239.41 $ 239.41 $ 228.00 $ 216.00 $ - 51 -Fiscal Year -52 -THIS PAGE INTENTIONALL Y LEFT BLANK Square FeetPercentageSquare FeetPercentage Industrial Customer Type Assessedof TotalAssessedof Total Commonwealth Ave Apts329,3503.43%72,970 0.84%CJ Sergerstrom & Sons276,7202.88%274,160 3.17%CLA Val Co252,4802.63%390,170 4.51%MS Airways LLC158,0701.65%149,020 1.72%Alsenz, Evert C TR131,1201.36%168,960 1.95%Van Ausdeln, Sandra Ann TR124,4101.29%124,410 1.44%SCIF Redhill LLC118,5101.23%1,000 0.01%1650 Sunflower 40 LLC114,9501.20%- 0.00%Orange Grove Properties LLC109,8701.14%109,870 1.27%Seventeenth Street Realty LLC98,5801.03%- 0.00%Griswold Industries91,0900.95%103,780 1.20%Total square feet: Industrial Principal Customers1,805,15018.79%1,394,340 16.10%Total square feet : Industrial Customers9,608,180100.00%8,659,106 100.00%Commercial Customer Type South Coast Plaza1,108,6303.43%334,2401.41%RREF America REIT II835,6802.59%- 0.00%The Irvine Company834,3702.58%130,340 0.55%Interinsurance Exchange of the Auto Club of Ca750,9102.33%37,2900.16%Coast Community College District674,0602.09%86,6200.37%Vanguard University of Southern California570,2501.77%486,3302.05%Sears Roebuck & Co.536,9801.66%446,150 1.88%600 Anton Boulevard490,3501.52%459,0901.94%J Ray Sanderson/Cardinal Development Bristol419,4401.30%419,4401.77%Center Tower Associates415,5501.29%- 0.00%One Town Center Drive Associates362,7001.12%319,390 1.35%JKS-CMFV LLC357,4401.11%308,760 1.30%Total square feet: Commercial Principal Customers7,356,36022.79%3,027,650 12.78%Total square feet: Commercial Customers32,280,130100.00%23,684,480 100.00%HouseholdPercentageHouseholdPercentage Multi-family Residential Customer Type Unitsof TotalUnitsof Total RTS - Sunflower, LLC8903.48%- 0.00%Casden Lakes LP7703.01%7703.07%Costa Mesa Partners7642.98%7643.05%United Dominion Realty LP7642.98%7643.05%Pincreek Investment Co.6202.42%6202.47%ZMV Partnership5081.98%5082.03%UDR Harbor Greens LP3841.50%3841.53%Bay Apartment Communities, Inc.3331.30%273 1.09%Riverville Family Associates LLC2961.16%- 0.00%Park Mesa Village2761.08%2761.10%Parkwood Village Ltd2761.08%2761.10%Total household units: Multi-family Principal Customer s 5,88122.98%4,635 18.50%Total household units assessed: Multi-family Customer s 25,597100.00%25,053 100.00%Source: Costa Mesa Sanitary District - 53 - 20142005 Costa Mesa Sanitary District Principal Sewer Customers Current Fiscal Year and Nine Years Ago 2005200620072008 Capital leases1,573,627 $ 1,354,945 $ -$ -$ Total debt 1,573,627 $ 1,354,945 $ -$ -$ Total debt per capita12 $ 13 $ -$ -$ Total debt as a percent of personal income0.03%0.02%0.00%0.00%Source: Costa Mesa Sanitary District Accounting Department - 54 -Costa Mesa Sanitary District Ratio of Outstanding Debt Last Ten Fiscal Years Fiscal Year 200920102011201220132014 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 0.00%0.00%0.00%0.00%0.00%0.00%- 55 -Fiscal Year 2005200620072008 Net Revenues7,211,001 $ 7,772,189 $ 9,022,728 $ 10,358,205 $ Operating Expenses7,091,449 7,112,655 7,371,732 7,762,619 N et revenues119,552 $ 659,534 $ 1,650,996 $ 2,595,586 $ Debt Service:Principal210,914 $ 218,682 $ 1,354,945 $ -$ Interest58,003 50,826 43,941 - Total debt service268,917 $ 269,508 $ 1,398,886 $ -$ Debt coverage ratio0.442.451.18N/A Source: Costa Mesa Sanitary District - 56 -Fiscal Year Costa Mesa Sanitary District Debt Coverage Last Ten Fiscal Years 200920102011201220132014 10,803,984 $ 11,705,947 $ 11,166,087 $ 11,499,636 $ 10,775,500 $ 10,938,064 $ 7,945,850 7,487,385 8,160,177 8,303,399 7,953,569 8,453,930 2,858,134 $ 4,218,562 $ 3,005,910 $ 3,196,237 $ 2,821,931 $ 2,484,134 $ -$ -$ -$ -$ -$ -$ - - - - - - -$ -$ -$ -$ -$ -$ N/AN/AN/AN/AN/AN/A - 57 -Fiscal Year City of Costa Mesa (a)PersonalPersonal DistrictIncomeIncome ServiceUnemployment(thousandsper Calendar YearPopulationRatePopulationof dollars)Capita 2004109,903 3.8%2,956,096 $130,321,396$44,086 2005109,030 3.4%2,957,263 139,408,948 47,141 2006108,096 3.0%2,953,062 150,598,354 50,997 2007107,641 3.5%2,957,902 153,446,641 51,877 2008107,514 4.7%2,989,141 155,068,367 51,877 2009109,808 8.0%3,026,786 148,372,628 49,020 2010109,960 8.5%3,010,232 150,467,328 49,863 2011110,008 7.8%3,055,745 154,131,535 50,440 2012111,675 6.8%3,090,132 161,743,827 52,342 2013112,174 5.6%3,114,363 169,792,810*54,518 * Total personal income estimates are in thousands of dollars, not adjusted for inflation.Notes: (a)Approximate population of Costa Mesa Sanitary District is the same as the population of the City of Costa Mesa.(b)The District has chosen to use County data since the District believes that the County data is representative of the conditions and experience of the District.Sources: (a)United States Census Bureau (a)California LaborMarketInfo (b)U.S. Department of Commerce, Bureau of Economic Analysis (b)United States Census Bureau Costa Mesa Sanitary District Demograhpics and Economic Statistics Last Ten Calendar Years - 58 -County of Orange (b) PercentagePercentage Numberof TotalNumberof Total ofCityofCity Employer EmployersEmploymentEmployersEmployment Experian Information Solution3,7005.73%Coast Community College District Foundation2,9004.49%Orange Coast Community College1,9002.94%Fairview Developmental Center1,5002.32%A Clark/McCarthy Joint Venture1,2501.94%Interinsurance Exchange of the Auto Club1,2001.86%Filenet Corporation6000.93%Sure Haven5500.85%TTM Technologies5000.77%Nordstrom, Inc.5000.77%Total ten employers tota l 14,60022.60%- 0.00%* - Data not available for the fiscal year 2004- 2005 Sources: City of Costa Mesa, Dunn & Bradstreet, State of California Employment Development Department - 59 - Costa Mesa Sanitary District Principal Employers Current Fiscal Year and Nine Years Ago 20142005 * 2005200620072008200920102011201220132014 Solid Waste0.950.951.101.601.651.313.423.274.604.60 Liquid Waste4.555.556.909.409.859.949.608.289.4010.40 Total Full-time Equivalen t 5.506.508.0011.0011.5011.2513.0211.5514.0015.00 Source: Costa Mesa Sanitary District Accounting Department - 60 -Fiscal Year Costa Mesa Sanitary District Full-time and Part-time District Employees By Function Last Ten Fiscal Years 20052006200720082009 Solid Waste:Household units servicedn/an/an/a21,47121,482 Recycled/landfill tonnagen/an/an/a42,26940,908 Recycled %n/an/an/a50.45%50.44%Liquid Waste:Linear feet (LF) of sewer line cleanedn/an/an/a350,000411,150 Average of wastewater dischargedn/an/an/a10.6 MGD10.3 MGD Sewer lateral financial assistance grantsn/an/an/a90120 20102011201220132014 Solid Waste:Household units serviced21,50121,53121,55921,49021,606 Recycled/landfill tonnage40,37440,86539,84139,85140,650 Recycled %50.44%51.92%57.53%57.54%57.39%Liquid Waste:Linear feet (LF) of sewer line cleaned4,125890,006650,551708,092716,938 Average of wastewater discharged10.1 MGD10.3 MGD10.4 MGD10.5 MGD10.6 MGD Sewer lateral financial assistance grants128146144169184 MGD - Millions of gallons per day n/a - Data not available for fiscal year Source: Costa Mesa Sanitary District Fiscal Year - 61 -Costa Mesa Sanitary District Operating Indicators By Function Last Ten Fiscal Years Fiscal Year Liquid Waste Miles ofNumber of SanitaryPumpNumber of Fiscal YearSewersStationsManholes 2005220 20 4,599 2006220 20 4,600 2007221 20 4,646 2008221 20 4,646 2009221 20 4,649 201022420 4,703 201122420 4,703 201222420 4,703 201322420 4,704 201422420 4,705 Source: Costa Mesa Sanitary District Costa Mesa Sanitary District Capital Asset Statistics Last Ten Fiscal Years - 62 - 2875 Michelle Drive, Suite 300, Irvine , CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties -1 -IN DEPENDENT A UDITORS’ REPOR T ON IN TERNAL CONTROL OVER FINANCIAL REPOR TING AND ON COMPLIANCE AND OTHER MA TTERS BASED ON AN AUDIT OF FINANCIAL ST AT EMENTS PERFORMED IN A CCORDANCE WITH GOVERNMENT AUDITING ST ANDARDS Board of Directors Costa Mesa Sanitary Dis trict Costa Mesa, California We h ave audited, in accordance with the auditing standards generall y accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing St andards issued by t he Comptrolle r General of the United States, the financial statements of Costa Mesa Sanitary D istrict(the District ),as of and for the year ended June 30, 2014 and the related notes to the financial statements, which collectivel y comprise the District’s basic financial statements, and have issued our report thereon dated December 19, 2014.Internal Control o ver Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpo se of expressing an opinion on the effectiveness of the District’s internal control. Accordingly , we do not express an opinion on the ef fectiveness of the District’s internal control. A deficiency in internal contr ol exists when the design or operation o f a control does not allow management or employ ees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely b asis. A material weakness is a deficiency , or a combination of deficiencies, in i nternal control, such that there is a reasonable possibility t hat a material misstatement of the District’s financial statements will not be prevented, or detected and corrected on a timely basis . A significant deficiency is a deficiency , or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragrap h of this section and was not designed to identify a ll deficiencies in internal control that might be material weaknesses or, significant deficiencies. G iven these limitations, during our audit we did not identify any d eficiencies in internal control that we consider to be material weakness. However , material weaknesses may exist that have not been identified. -2 -Compliance and Other Matters As part of obtaining reasonable assurance about whether the District ’s financial statements are free from material mi sstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts ,and grant agreements, noncompliance with which could have a direct and material ef fect on the determination of financial statement amounts. However ,providing an opinion on compliance with those provisions was not an objective of our audit and, accordingl y, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be repo rted under Government Auditing S tandar ds .Purpose of t his Report The purpose of this report is solely t o describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiven ess of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing St andar ds in considering the District’s internal control and compliance. Accordingly , this communication i s not suitable for an y other purpose. Irvine, California December 19, 2014 2875 Michelle Drive, Suite 300, Irvine , CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893 Offices located in Orange and San Diego Counties -1 -Board of Directors Costa Mesa Sanitary District Costa Mesa, California We have audited the financial statements of the Costa Mesa Sanitary District (the District) for the year ended Jun e 30, 2014 .Professional standards require that we provide you with information about our responsibilities under genera lly a ccepted auditing standards,as well as certain information related to the planned scope and timing of our audit. W e have communica ted such information in our engagement letter to you dated June 1 1 , 201 4 and in our letter on planning matter s dated June 13, 2014 .Professional standards also require that we communicate to you the following information related to our audit.Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the District are described in Note 1 to the financial statement s.No new accounting policies were adopted and the application of existing policies wa s not changed during the ye ar. We noted no transactions entered into by t he District during the year for which there is a lack of authoritative guidance or consensus. Al l significant transactions have been recognized in the financial statements in the proper period.Accounting estimates are an integral part of the financial statements prepared by m anagement and are based on management’s knowledge and experience about pas t and current events and assumptions about future events. Certain accounting estimates are particularl y sensitive because of their significance to the financial statements and because of the possibility t hat future events affecting them may differ signific antly from those expected.The most sensitive estimates affecting the financial statements are as follows:a.Management’s estimate of the fair market value of investments is based on market values provided b y outside sources.b.The estimated useful lives of capital assets for depreciation purposes are based on industry standards.c.The annual required contribution for the defined benefit pension plan of the District is based on certain actuarial assumptions and methods.d.The annual required contribution and the amount reported for the unfunded actuarial accrued liability f or the District’s Other Post -Employ ment Benefit (OPEB) Plan were based on certain actuarial assumptions and methods. -2 -Significant Aud it Findings (Continued)Qualitative Aspects of Accounting Pr actices (Continued)We evaluated the key f actors and assumptions used to develop these estimates in determining that they were reasonable in relation to the financial statements taken as a whole.Certain financial statement disclosures are particularly s ensitive because of their significance to financial statement users. T he most sensitive disclosure affecting the financial statement s were reported in Note 4 to the financial statements regarding t he annual required contribution for t he defined benefit pe nsion plan and in Note 5 regarding the District’s OPEB plan.The financial statement disclosures are neutral, consistent, and clear.Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit.Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely m isstatements identified during the audit, other than those that are clearl y trivial, and communicate th em to the appropriate level of management. In a ddition, none of the misstatements detected as a result of audit procedures and corrected by m anagement were material, either individually o r in the aggregate, to the financial statements taken as a whole.Disagreements with Management For purposes of this letter, a disagreement with management as a financial accounting, reporting, or auditing matter, whether or no t resolved to our satisfaction, that could be significant to the financial statements or the a uditor s ’ report. We are pleased to report that no such disagreements arose during the course of our audit.Management Representations We have requested certain representations from management that are included in the management representation letter dat ed December 19, 2014.Management Consultations with Other Independent Accountants In some cases, management may d ecide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations . If a c onsultation involves application of an accounting principle to the District ’s financial statements or a determination of the ty pe of auditor’s opinion that may b e expressed on those statements, our professional standards require the consulting acco untant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. -3 -Significant Audit Findings (Continued)Other Audit Findings or Issues We generall y discuss a variet y of matters, including the application of accounting principles and auditing standards, with management each ye ar prior to retention as the District’s auditors. However, these discussions occurred in the normal course of our professional relationshi p and our responses were not a condition to our retention.Other Matters We applied certain limited procedures to management’s discussion and anal ys is and schedule of funding progress , which are required supplementary i n formation (RSI) that supplements t he financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency w ith management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI a nd do not express an opinion or provide an y assurance on the RSI .We were not engaged to report on the introductory a nd statistical sections, which a ccompany t he financial statements but are not RSI . We did not audit or perform other procedures on this other information and we do not express an opinion or provide an y assurance on it .Restriction on Use This information is intended solely f or the use of the Board of Directors and management of the District and is not intended to be ,and should not be ,used b y an yone other than these specified parties.Irvine, California December 19, 2014 Costa Mesa Sanitary District ... an Independent Special District Strategic Plan Progress Report Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file the FY 2015-15 2nd Quarter Report regarding the FY 2010-15 Strategic Plan. Item Number:11. ATTACHMENTS:Description Type Strategic Plan Progress Report Cover Memo COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 1.0 SEWER INFRASTRUCTURE Objective Strategic Goals Accomplishments Completion Timeline To collect and transport wastewater to meet the needs of existing and future customers 1.1 Manhole Cover Maintenance Program This is a new goal that was approved by the Board o n April 3, 2013. A contract with Excel Paving is currently repairing 102 manhol e covers that were determined needed immediate repair. Work should be completed by the end of January 2015. The second and final phase to evaluate the remainin g 2,384 MH covers is scheduled to begin in February 2015. On-going 1.2 Inflow Reduction Program In December 2014, Cost a Mesa received 3.67 inches of rain. District Engi neer is currently calculating the rainfall to determine if CMSD reached the goal of less than 2% ingress. On-going 1.3 Reduce Hotspot Locations to less than 40. This is a new goal that was approved by the Board o n April 3, 2013. Total hotspot location is 36. This goal is complete. On-going To collect and transport wastewater to meet the needs of existing and future customers 1.4 System wide Sewer Replacement & Repair Program Project #194 Sewer Manhole Rehab (Interior Rehab an d Pump Station Re-Coating) – Manhole rehabilitation includes reconstructing ch annels, building up wall thickness and adding spray-on protective coati ngs. Protective coatings will also be placed in pump station interiors. Plans an d specs are nearly complete. Project #196 Installation of Backup Power and Capab ility Phase I – Bids for generator at Irvine Pump Station are due January 20 , 2015. Generator for 23 rd Pump Station is being finalized and will be reviewe d by the City of Newport Beach shortly. Project #200 – Upgrade 4 Force Main – Plans for Harbor, Victoria and South Coast Plaza (SCP) force mains are complete. CMSD will be cleaning SCP force main and CCTVing the line to determine if redirecting the fl ow is possible. Staff is meeting with City officials to discuss Harbor and Victoria FM upgrades. Project #201 Replace Piping and Valves at various p ump stations – This project is complete. Pipes and valves were replaced at 21 st Street PS and Corp Yard PS. Total costs: $127,929. Project #202 Elden PS Piping and Valve Replacement – Additional funding is needed. This project will be budgeted in the FY 20 15-16 Budget. Project #203 Emergency Generator at District Yard – Preconstruction meeting with awarded contractor is scheduled for January 30 , 2015. Project #204 Manhole Cover Repair – Phase I of repairing 102 manhole covers is nearly complete. See Goal 1.1 above. On-going COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 1.0 SEWER INFRASTRUCTURE (Continued) Objective Strategic Goals Accomplishments Completion Timeline To collect and transport wastewater to meet the needs of existing and future customers 1.5 Sewer Line Maintenance Cleaning Program District amended its cleaning frequency by cleaning the entire system every year. CMSD crew will clean 502,183 feet annually while th e District’s contractor, NPS, will clean 685,409 feet. Cleaning is currently underway . Ongoing 1.6 Evaluate force main conditions on a regular basis The designs for rehabilitating Harbor, South Coast Plaza and Victoria are complete. See Goal 1.4 above. Ongoing 1.7 Pump Station Maintenance & Standardization Program Safety nets are installed at every pump station to prevent workers from falling in wet wells. Emergency by-pass pumps at Victoria, Elden and Mend oza are exercised weekly. CMSD staff is performing annual preventive maintena nce on all 20 pump stations. PM’s are expected to be completed by July 2015. Ongoing 1.8 Fats Oil Grease (FOG) Program During the holida ys, Orange Coast College Recycling Center collected 200 gallons of used grease from residents. On-going 1.9 Sewer Lateral Assistance Program In the second quarter of the fiscal year, the District has receiv ed 68 SLAP applications and processed $39,712 in reimbursement payments for midyear total of 122 SLAP applications and $70,709 in reimburseme nt payments. On-going COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 2.0 SOLID WASTE Objective Strategic Goals Accomplishments Completion Timeline To manage the collection and recycling of residential trash in the most economical and environmentally friendly way. 2.1 Solid Waste Citizen Academy This is a new goal that was approved by the Board o n April 3, 2013 . Due to the lack of interest for this program, the Board of Dir ectors directed staff to focus on promoting tours at CR&R’s Material Recovery Facilit y (MRF) in Stanton and eventually the anaerobic digestion facility in Perr is. 2013-14 2.2 Annual contract audits This is a new goal that was approved by the Board o n April 3, 2013. Nothing to report this quarter. On-going 2.3 Comprehensive School Education Programs This quarter, four schools received presentations a bout vermicomposting and composting and three schools received waste free lu nch presentations. Ongoing 2.4 Develop strategies for Zero Waste This goal was amended from encouraging zero waste t o developing strategies for zero waste. A new organics recycling page was added to CMSD’s website. The page is a one stop shop to obtain all kinds of info rmation regarding organics recycling, including CMSD’s new Organics Recycling Program. A “how to” video about CMSD’s Organics Recycling Pr ogram is being produced and will be uploaded on the website. 2013-14 2.5 Monitor advancements and technology in the solid waste industry Construction of CR&R’s anaerobic digestion (AD) fac ility is still scheduled to be completed by June/July 2015. Ongoing COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 3.0 PARTNERSHIPS Objective Strategic Goals Accomplishments Completion Timeline To foster beneficial relationships to accomplish the goals of the District 3.1 Regulatory Communications This is a new goal that was approved by the Board o n April 3, 2013. Nothing to report this quarter. On-going 3.2 Strengthen our ties with local government, special districts and educational institutions This is a new goal that was approved by the Board o n April 3, 2013. On October 23, 2014, the Board authorized the General Manager to proceed negotiating with OCSD staff for engineering services where OCSD’s pe rmit engineer will be designated as CMSD’s alternate district engineer. Negotiations are complete and an agreement with OCSD is being finalized. 2013-14 3.3 Develop a partnership with property owners that operate private sewer pump stations. This is a new goal that was approved by the Board o n April 3, 2013. Nothing to report this quarter. This goal is complete. 2013-14 3.4 Participate in the activities of professional associations The Board of Directors and staff continue to partic ipate in array of professional organizations. During the 2 nd quarter of FY 2014-15, the District participated i n the following associations. CalPERS Forum Orange County Human Resource Consortium League of California Cities New Law Conference CSDA Leadership Academy 2013-14 3.5 Participate in community groups and civic organization activities This is a new goal that was approved by the Board o n April 3, 2013. During this quarter, the District had a booth promoting CMSD pr ograms at Orange Coast College Community Science Night. Ongoing COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 4.0 COMMUNITY OUTREACH & COMMUNICATIONS Objective Strategic Goals Accomplishments Completion Timeline To inform and establish beneficial relations with the community 4.1 CMSD 70 th Anniversary This is a new goal that was approved by the Board o n April 3, 2013 . Nothing to report this quarter. This goal is complete. 2014-15 4.2 CMSD App This is a new goal that was approved by the Board o n April 3, 2013 . Nothing to report this quarter. This goal is complete. 2013-14 4.3 Implementing Voice Broadcasting Program This is a new goal that was approved by the Board o n April 3, 2013. Nothing to report this quarter. This goal is complete. 2013-14 4.4 District branding Nothing to report this quart er. 2013-14 4.5 Manage customer satisfaction survey on the District website and increase the number of respondents This is a new goal that was approved by the Board o n April 3, 2013 . Only one person completed the survey during the second quart er bringing the total surveyors to just 9 since CMSD recently revised the survey. 2013-14 4.6 Submit award applications The following applic ations have been submitted on behalf of the Distric t. • Popular Annual Financial Reporting Award from Government Finance Officers Association (GFOA) • Certificate of Achievement for Excellence in Financ ial Reporting from GFOA. Ongoing COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 5.0 ADMINISTRATIVE MANAGEMENT Objective Strategic Goals Accomplishments Completion Timeline To create, maintain and implement policies and procedures to ensure sound management of the District 5.1 Digital imaging of District records into electronic records management system This is a new goal that was approved by the Board o n April 3, 2013 . Nothing to report this quarter. This goal is complete. 2013-14 5.2 Digitally image and import approved plans into GIS This is a new goal that was approved by the Board o n April 3, 2013. Nothing to report this quarter. This goal is complete. 2013-14 5.3 Stay informed on applicable federal, state and regional regulations The California Legislature and Congress were on hol iday break towards the end of the second quarter, so there is nothing to report. Ongoing 5.4 Maintain Operations Code This is a new goal that was approved by the Board o n April 3, 2013 . Nothing to report this quarter. This goal is complete. Ongoing 5.5 Refine emergency operations procedures and upgrade infrastructure This is a new goal that was approved by the Board o n April 3, 2013. Preconstruction meeting for installing an emergency generator at the District Yard is scheduled for January 30, 2015. The District Ya rd serves as the alternate Emergency Operations Center for CMSD. 2013-14 COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 6.0 PERSONNEL/ORGANIZATIONAL MANAGEMENT Objective Strategic Goals Accomplishments Completion Timeline To employ and retain a high quality, motivated workforce 6.1 Perform EOC training exercises Nothing to report this quarter. On-going 6.2 Job Description Updates Nothing to report this quarter. This goal is comple te. On-going 6.3 Promote a safety culture within the organization The District hired Occupational Safety Training Sys tems (OSTS) to facilitate monthly safety meetings. In the second quarter, OSTS facil itated the following training sessions for staff: • Injury Illness Prevention Program Orientation • Housekeeping & Slips, Trips and Fall • Office safety On-going 6.4 Complete a comprehensive salary and health benefit study CMSD staff solicited bids from qualified consultant s to perform a classification and salary study of CMSD positions. A contract is bein g prepared and the study should begin shortly 2013-14 6.5 Create a Development Plan n Nothing to report this quarter. 2014-15 6.6 Periodic Organization Chart evaluation This goal is complete. A revised organization char t is now available on the District’s website. On-going 6.7 Promote high employee satisfaction survey Nothing to report this quarter. Ongoing COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2010-15 QUARTERLY PROGRESS REPORT 2014-15 (2 nd QTR) In -Proce ss Completed Ongoing Not scheduled to begin yet Delayed 7.0 FINANCE Objective Strategic Goals Accomplishments Completion Timeline To ensure the short and long term fiscal health of the District 7.1 Perform long term solid and liquid waste rate Nothing to report this quarter. This goal is comple te. On-going 7.2 Develop a long term CIP CMSD’s staff will be p resenting a CIP proposed budget at the February 201 4 Board of Directors Study Session. 2014-15 7.3 Evaluate the District’s investment policy CMSD staff is currently evaluating said policy and will be presenting recommendations to the Board in the third quarter o f the 2014-15 fiscal year. On-going 7.4 Produce a Comprehensive Annual Financial Report (CAFR) Nothing to report. This goal is complete. On-going 7.5 Evaluate an appropriate reserve program for all District funds and develop an inclusive reserve policy CMSD staff is currently evaluating an appropriate r eserve program and will present findings to the Board during the FY 2015-16/2016-17 budget process. On-going 7.6 Monitor the asset management program Nothing to report this quarter. On-going 7.7 Create a popular report and upload document on the District’s website Nothing to report this quarter. 2013-14 Costa Mesa Sanitary District ... an Independent Special District Schedule Special Meeting for Developing FY 2015-20 Strategic Plan Recommendation/Notes: Recommendation: That the Board of Directors schedu le a special meeting. Item Number:12. ATTACHMENTS:Description Type Schedule a Special Meeting Cover Memo Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environme nt by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors From: Scott Carroll, General Manager Date: January 22, 2015 Subject: Schedule Special Meeting for Developing FY 2015-20 Strategic Plan Summary The FY 2010-15 Strategic Plan is coming to an end. A new plan will need to be developed and adopted that will give direction to the Distric t for the next five years. Staff Recommendation That the Board of Directors schedule a special meet ing. Analysis In 2010, the Board of Directors adopted the FY 2010 -15 Strategic Plan that served as a framework for decision making over a five year peri od. The Plan was amended in 2013 because many of the strategic goals were accomplish ed. That five year period is coming to an end and now t he District needs to set a clear direction for the next five years. A special meeti ng is needed to discuss the District’s vision, mission and core values along with the stra tegic elements and goals to achieve in the next five years. Strategic Element & Goal Not applicable Legal Review Board of Directors January 22, 2015 Page 2 of 2 Not applicable Environmental Review Developing a strategic plan is not a disturbance of the environment similar to grading or construction and does not constitute a project unde r CEQA or the District’s CEQA Guidelines. Financial Review The general manager can facilitate the special meet ing and staff can create the final document so hiring a consultant is not needed. The refore, there is no financial impact to the District for scheduling a special meeting. Public Notice Process Copies of this report are on file and will be inclu ded with the entire agenda packet for the January 22, 2015 Board of Directors regular meeting at District Headquarters and on the District’s website. Alternative Actions 1. Request more information from staff. Costa Mesa Sanitary District ... an Independent Special District Mid Year Budget Update Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file the report. Item Number:13. ATTACHMENTS:Description Type Mid Year Budget Update Cover Memo Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by p roviding solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors From : Scott Carroll, General Manager Via: Wendy H. Davis , Interim Finance Manager Date: January 2 2 , 201 5 Subject: Mid -Year Budget Update – FY 201 4 -1 5 Summary Th is report serves as a summary of the District’s spe nding at the mid -year point as well as staff’s best estimate of projected balances for the year -ended June 30, 201 5 . Staff Recommendation That the Board of Directors receive and file this report. Analysis Based on the spending trends through December 31 . 201 4 , staff is projecting minor savings in both the Solid Waste and Liquid Waste Funds. As of December 31, 2014 , a total of 4 0 .0 % of the Solid Waste budget for the 201 4 -201 5 fiscal year has been expended . At this time, staff anticipates a budgetary s avings in both Personnel and Special Programs. The Solid Waste Fund is projected to have a year -end budget surplus balance of $44 ,125 . A total of 32 .5 % of the L iquid Waste Fund has been expended as of December 31, 2014 . The percent expended as of Decemb er 31, 2014 is under staff’s estimates due to contracted work in progress but unbilled. Staff anticipates a budgetary saving s in Personnel costs due to vacancies , which is offset by greater than normal expenses in some of the M&O accounts. The Liquid Was te Fund is expected to have a year -end balance of $1 5 4 ,757 . Board of Directors January 2 2 , 201 5 Page 2 of 2 Please see the attached report for a more detail ed analysis. Strategic Plan Element & Goal This item supports achieving the objective and strategy of Strategic Element No. 7.0, Finance , which states: “Objective: To ensure the short and long -term fiscal health of the District. Strategy: The District will forecast and plan revenue and expenditures and maintain appropriate reserves and investment to provide financial resources to fund current a nd planned operations and projects.” Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 o f CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 2 2 , 201 5 Board of Di rectors regular meeting at District Headquarters and on District website. Alternative Actions 1. Refer the matter back to staff for additional information. Attachments A: FY 2014 -15 Mid -Year Budget Review B : Expenditure Analysis through 12/31/2014 COSTA MESA SANITARY DISTR ICT Mid -Year Budget Review Fiscal Year 201 4 -1 5 E XECUTIVE SUMMARY Attached is the mid -year budget analysis of the Solid and Liquid Waste Fund s operating budgets for fiscal year (FY) 2014 -15 . This analysis uses the “Amended Budget”, which consists of the adopted budget plus any prior year carryover appropriations , as well as budget adjustments approved through December 31, 2014 . The projections in this analysis are based on “Run -Rate” calculations unitizing historical trends for some accounts , while others are based on known or anticipated spending by staff. The Costa Mesa Sanitary District (District ) Solid Waste and Liquid Waste F unds are both Enterprise Funds . These funds are operated as independent business ventures sharing one Board of Directors. Some ex penses of the District are charged entir ely to a specific fund , while other expenses may be allocated to both funds based on a percentage. For example, the costs a ssociated with the District’s Board of Directors will be split between the funds equally. However, the cost of the trash pickup wil l be charged only to the Solid Waste F und. Based on the attached Expenditure Analysis , both the Solid Waste and Liquid Waste Funds are projected to have a minor budget surplus at June 30, 2015 as described below: S OLID W ASTE F UND The annual operating budget for the Solid Waste fund is $5,505 ,115 . The total year -to -date expenses are $2,200 ,588 , and staff estimates the total year -end balance will be $5,460 ,990 resulting in a projected surplus of $44 ,125 . This projected surplus resu lts primarily from unexpended funds in the Personnel . The following sections are intended to provide a summary of the more significant budget to actual changes anticipated by staff a t year -end : PERSONNEL The District currently has one vacant pos ition , the Administrative Services Man a ger . This position provide s services to both funds . T herefore , only a portion of its costs are charged to the Solid Waste F und. The projected expenses for FY 2014 -15 assume that th is position will remain vacant until the end of the fiscal year, thus creating a substantial savings in the salary and benefit accounts. Additional ly , the District is realizing a savings in its “PERS Employee” account due to costs which w ere previously paid by the District , are now required to be paid by the employee for all new hires. The total projected savings in Personnel costs a t June 30, 2015 is $63 ,600 . M & O The M & O accounts are projected to exceed the amended bud get by $20 ,445 . The following is a summary of expenses not included in the amended budget that are causing the variance:  Professional Services – This account is estimated to be over budget by $7,480 due to the shared services agr eement established with the Orange County Sanitation District to perform the Human Resources duties for the vacate Administrative Services Manager position . These expenses are offset by the budget surplus in salaries and benefits.  Maintenance – T he projected overage in th is account of $1 ,503 is the result of the new part -time Maintenance Worker incurring expenses to catch -up on building maintenance needs from when the position was vacate . COSTA MESA SANITARY DISTR ICT Mid -Year Budget Review Fiscal Year 201 4 -1 5  Community Outreach – This account is projected to exceed the amended budget by $4 ,970 , due to the quarterly newsletter which was budget ed at 35% to the Solid Waste Fund . H owev er , it was determined that a more appropriate allocation is 50%, which equates to an increase in expenses to this F und of $7,000. Additionally, the Winter newsletter was entirely Trash information therefore, not charged at all to the Liquid Waste Fund.  C omputer Licenses and Maintenance – T h is is a new account established to better track and budget the District ’s in creasing need for software licenses and maintenance costs associated with software and equipment purchases such as apps and tablets . This account is anticipated to exceed the budgeted amount by $5,000. Budget will be moved from other accounts where these activities we re previously budgeted. SPECIAL PROGRAMS The Anti -Scavenging program is projected to come in substantially under budget , resulting in a budget surplus of $4,8 00 . Thi s is consist with the prior year ’s actual expenses. CAPITAL OUTLAY The capital outlay budget of $6 ,170 h as been partially expen d ed as of December 31, 2014 on the purchase of three replacement computers for staff at the District Headquarters . This purchase exceed the budgeted amount. The remaining available budget is for the District ’s Springbrook upgrade , w h i c h n o t o c c u r u n t i l t h e l a s t q u a r t e r o f t h e f i s c a l y e a r . COSTA MESA SANITARY DISTR ICT Mid -Year Budget Review Fiscal Year 201 4 -1 5 LIQUID WASTE F UND The annual operating budget for the Liquid Waste fund i s $4 ,2 2 1 ,419 . The total year -to -date expenses are $1 ,371 ,313 . S taff estimates the total year -end balance to be $4 ,0 66 ,6 62 , for a projected surplus of $1 54 ,757 . This projected surplus is being generated primarily from unexpended funds in Personnel , offset by cost overruns in M & 0 . The following sections are intended to provide a summary of the more significant budget to actual changes anticipated by staff at year -end: PERSONNEL The District currently has one vacant pos ition , the Administrative Services Man a ger . This position provide s services to both funds . T herefore , only a portion of its costs are charged to the Liquid Waste F und. The projected expenses for FY 2014 -15 assume that th is position will remain vacant until the end of the fiscal year, thus creating a substantial savings in the salary and benefit accounts. Additional ly , the District is realizing a savings in its “PERS Employee” account due to costs which w ere previously paid by the District , are now required to be paid by the employee for all new hires. The total projected savings in Personnel costs a t June 30, 2015 is $1 6 6 ,683 . M & O The M & O accounts are projected to exceed the amended budget by $11 ,608 . The following is a summary of expenses not included in the amended budget that are causing the variance:  Professional Services – This account is estimated to be over budget by $12 ,920 due to the shared services agr eement established with the Orange County Sanitation District to perform the Human Resources duties for the vacate Administrative Services Manager position . These expenses are offset by the budget surplus in salaries and benefits.  C omputer Licenses and Maintenance – T h is is a new account established to better track and budget the District ’s in creasing need for software licenses and maintenance costs associated with software and equipment purchases such as apps , tablets and S martcovers . This account is anticipated to exceed the budgeted amount by $12 ,000. Budget will be transferred from other accounts where these activities we re previously budgeted.  Telephone – T he projected overage in th is account of $5 ,200 is the result of the new lines required for computer equipment and wire -less services to monitor sewer equipment .  Utilities – T he District has realized a substantial savings in electric al costs mainly due the Yard being solar powered. We have not received an electric bill for the Yard in over six months. This ac count is p rojected to be under budget $4,500 .  Electric Pump Maintenance – Staff projects a surplus of $10,000 in this account. This saving is co nsistent with the prior year ’s actual expenses. COSTA MESA SANITARY DISTR ICT Mid -Year Budget Review Fiscal Year 201 4 -1 5 CAPITA L OUTLAY The capital outlay budget of $523,682 is projected to be fully expen d ed by June 30, 2015 . The capital equipment purchased as of December 31, 2014 include s a used crew truck, six generators and thirty composite manhole covers. CAPITAL IMPROVEMENT PROJECTS The status of the capital improvement projects is as follows. All projects are expected to be fully expended. Adopted Approved Budget Amended Total Available Budget FY 13-14 Adjustment Budget Expenses Balance FY14-15 Carryovers as of 12/31/14 FY14-15 as of 12/31/14 as of 12/31/14 200601 Westside Pump Stn Abandonment #101 400,000 2,098,114 - 2,498,114 19,751 2,478,363 201294 Sewer Manhole Rehab #194 300,000 - - 300,000 - 300,000 201296 Pump Stn Emergency Equip #196 - 350,009 - 350,009 312,256 37,753 201297 System Wide Swr Recon Ph 3 #197 - 351,819 - 351,819 116,815 235,004 201300 Force Main Upgrades #200 - 921,021 - 921,021 64,462 856,559 201301 Replace Equipment at Pump Stn #201 - 174,781 - 174,781 42,710 132,071 201302 Elden Pump Stn Valve/Repipe #202 - 139,433 - 139,433 - 139,433 201303 Generator at District Yard #203 - 144,538 - 144,538 9,038 135,500 201304 Manhole Cover Repairs #204 - 90,881 - 90,881 93,994 (3,113) 201305 Anaheim Re-Direct #205 - - - - 2,450 (2,450) 201306 Gr 4 CCTV Improvements Ph 1 #306 568,000 - - 568,000 30,515 537,485 201307 Harbor PS Generator #307 178,500 - - 178,500 595 177,905 201308 Manhole Rehab #308 340,500 - - 340,500 - 340,500 1,787,000 4,270,596 - 6,057,596 692,585 5,365,011 Through 12/31/2014 OriginalWorking Run-Rate-Full Year-FinanceFinance BUDGETBUDGETYTDYTDYTD 13-14 toPercentFull YearProjectionFinanceProjectedProj. %as of July 1'14-'1512/31/201412/31/2013YTD 14-15Change'13-'14Full YearProjectionsVariance1Remaining EXPENDITURES Personnel SALARIES FULL-TIME359,600359,600152,897139,99912,8989%304,014305,795325,00034,600 10%SALARIES PART-TIME37,90037,90010,12313,292(3,169)-24%21,07320,24530,0007,900 21%SALARIES BOARD14,40014,4006,4536,0553987%15,20512,90614,400- 0%OVERTIME900900120160(40)-25%353240900- 0%Benefits152,500152,50045,15144,7833681%107,22090,302131,40021,100 14%Sub-Total Personnel 565,300565,300214,744204,28910,4555%447,865429,488501,70063,60011%M & O PROFESSIONAL SERVICES 37,52037,5204,08724,165(20,079)-83%36,6364,08745,000(7,480) -20%DISTRICT MANAGER 000000%000- 0%LEGAL SERVICES 47,25047,2506,88714,651(7,764)-53%29,68813,77447,250- 0%FISCAL SERVICES 12,20012,2003,3933,509(116)-3%33,3216,78612,200- 0%MEDICAL/EMPLOY SERVICES 20020021284127151%312423500(300) -150%CONTRACT SERVICES 31,30031,3008,1906,8671,32319%27,28316,38031,300- 0%COUNTY COLLECTION FEE 16,10016,1000000%16,066016,100- 0%TRASH HAULER (CR&R)2,400,0002,400,000962,9851,182,164(219,178)-19%2,351,7261,925,9712,400,000- 0%RECYCLING/DISPOSAL (CR&R)2,100,0002,100,000908,510912,359(3,849)0%2,121,4071,817,0212,100,000- 0%ORGANICS DISPOSAL (CR&R)000000%000- 0%CONTAINER COLLECTION COST 14,00014,0003,63303,6330%07,26714,000- 0%ELECTIONS 17,50017,50001,963(1,963)-100%2,132017,500- 0%MAINTENANCE 7,3406,4974,4863,1671,31942%4,4508,9718,000(1,503) -23%OFFICE SUPPLIES 82082029902990%2559880020 2%MISC COPY 21021033,304(3,301)-100%289520010 5%POSTAGE 3,5001,00012914,262(14,132)-99%39,7952581,000- 0%PUBLIC INFOR/ED/COM PROM 14,63017,13014,4552914,42649830%11428,91022,100(4,970) -29%SMALL TOOLS/EQUIP 808026202620%122523500(420) -525%COMPUTER LICENSES & MAINT 1,0001,0005,29005,2900%010,5806,000(5,000) -500%PROF DEVELOPMENT/TRAINING 26,78026,98813,1628,0095,15364%14,72826,32327,490(502) -2%LIABILITY INSURANCE 6,5006,5006,51006,5100%013,0206,500- 0%TELEPHONE 70070054094446475%1871,0791,000(300) -43%UTILITIES - BLDG 1,1501,15043615,342(14,907)-97%30,7188711,150- 0%ASSET REPLACEMENT 30,00030,00015,000015,0000%030,00030,000- 0%CONTINGENCY 000000%000- 0%TRANSFER OUT 000000%000- 0%Sub-Total M & O 4,768,7804,768,1451,958,4672,189,968(231,501)-11%4,708,9973,912,8484,788,590(20,445)0%Capital Outlay EQUIPMENT 6,1706,1704,040646 3,394526%1,912 8,07910,000 (3,830) -62%Sub-Total Capital Outlay 6,1706,1704,0406463,394526%1,9128,07910,000 (3,830) -62%Special Programs SHARPS PROGRAM 10,20010,2004,0782,4701,60865%6,7508,15510,200- 0%HHW 50,00025,0002,0582,646(588)-22%23,2734,11625,000- 0%TELEPHONE BK RECYCLING 10,00000000%2,50000- 0%ANTI-SCAVENGING 9,8009,80094009400%01,8795,0004,800 49%USED TIRE ROUNDUP 000000%000- 0%EDUCATIONAL TOURS 50,50050,5006,9912496,7432713%37,03413,98350,500- 0%PHARMACEUTICAL 10,00010,0004,7753,96481020%9,8439,54910,000- 0%BATTERY RECYCLING 010,0000000%4,675010,000- 0%ORGANICS PUBLIC INFO/ED 050,0004,49604,4960%08,99150,000- 0%Sub-Total Special Programs 140,500165,50023,3379,32914,008150%84,07546,674160,7004,8003%TOTAL EXPENDITURES5,480,750 $ 5,505,115 $ 2,200,588 $ 2,404,231 $ (203,644)$ -8%5,242,848 $ 4,397,089 $ 5,460,990 $ 44,125 $ 1%Notes % change from last year ==>>-16%4%1 Finance Projections reflect the most recent quarterly update 01/15/15 16:03 Solid Waste Fund Expenditure Analysis ExpendituresChange Through 12/31/2014 OriginalWorking Run-Rate -Full Year-FinanceFinance BUDGETBUDGETYTDYTDYTD 12-13 toPercentFull YearProjectionFinanceProjectedProj. %as of July 1'14-'1512/31/201412/31/2013YTD 13-14Change'13-'14Full YearProjections Variance1 Remaining EXPENDITURES Personnel SALARIES FULL-TIME819,364819,364348,560 281,94866,61224%603,007 697,121710,000109,364 13%SALARIES PART-TIME9,2009,2002,438 6,116(3,678)-60%6,1164,8779,200- 0%SALARIES BOARD57,30057,30025,813 24,2221,5917%60,81951,62657,300- 0%OVERTIME30,40030,40013,01111,2031,80816%26,88926,02330,400- 0%Benefits355,156359,156127,543107,563 19,98019%254,058255,085301,83757,319 16%Sub-Total Personnel 1,271,4201,275,420517,365 431,05286,31320%950,8891,034,7311,108,737166,68313%M & O PROFESSIONAL SERVICES 137,080177,08025,84452,213(26,369)-51%106,86451,687190,000(12,920) -7%DISTRICT MANAGER 000000%000- 0%LEGAL SERVICES 87,75087,75032,70832,049659 2%65,23965,41687,750- 0%ENGINEERING/ARCHIT SERV 94,00094,00024,29330,257(5,964)-20%54,30048,58594,000- 0%PLAN CHECK/INSPECTIONS 117,000120,88446,70948,119(1,411)-3%121,81393,417120,80084 0%FISCAL SERVICES 22,80022,8009,1586,5172,64241%81,56218,31722,800- 0%MEDICAL/EMPLOY SERVICES 1,8001,800677958(281)-29%2,1351,3532,200(400) -22%CONTRACT SERVICES 31,5006,5005,93635,521(29,585)-83%98,72311,8726,500- 0%SEWER MAINTENANCE CLAIMS 00024,125(24,125)-100%000- 0%COUNTY COLLECTION FEE 15,90015,9000000%15,345015,900- 0%PUMP STN MAINT CONTRACT 82,00082,00012,21374,983(62,770)-84%249,97824,42582,000- 0%SEWER LINE MAINTENANCE 204,000249,0000000%126,6600249,000- 0%ELECTIONS 32,50032,5000000%0032,500- 0%BLDG MAINTENANCE 31,02032,43317,32220,761(3,439)-17%26,72034,64332,450(17) 0%EQUIP MAINTENANCE 100,69080,69054,54249,5494,993 10%71,802109,08581,000(310) 0%GIS MAINTENANCE 15,00040,00013,9681,23012,7381036%39,75227,93540,000- 0%TELEVISING SEWER LINES 5,10025,1006,75116,420(9,669)-59%24,58113,50225,000100 0%MISC SEWER WORK 225,000186,57019,27364,987(45,714)-70%96,64338,547186,50070 0%FOG PROGRAM 107,000107,00039,28134,9324,34912%109,00778,562107,000- 0%RESIDENT FOG PROGRAM 000000%000- 0%SEWER LATERAL PROGRAM 200,000265,67570,709140,158(69,449)-50%244,324141,417265,675- 0%INFLOW REDUCTION PROGRAM 10,00010,0000000%177010,000- 0%OFFICE SUPPLIES 9,3809,3802,4191,702718 42%4,0394,8399,000380 4%MISC COPY 1,8901,8902384(61)-73%448461,80090 5%POSTAGE 31,50011,5001,4291,133296 26%2,9632,85811,000500 4%COMMUNITY OUTREACH 27,17047,17018,53413,9554,57933%42,55137,06747,000170 0%SMALL TOOLS/EQUIP 8,7208,7204,0235,062(1,039)-21%15,7528,0469,000(280) -3%MAINT MATERIAL/SUPPLIES 25,00025,0003,18117,606(14,426)-82%12,2666,36125,000- 0%EOC EQPT & SUPPLIES 5,4905,4901,6491,960(311)-16%3,6583,2975,000490 9%COMPUTER LICENSES & MAINT 020,000 23,565023,5650% 047,13132,000(12,000) -60%PROF DEVELOPMENT/TRAINING 116,770118,64461,42355,2306,19311%87,610122,846118,200444 0%LIABILITY INSURANCE 69,50069,50069,95756,27713,681 24%57,391139,91570,000(500) -1%TELEPHONE 11,80011,8008,2505,0233,227 64%14,39616,50017,000(5,200) -44%UTILITIES 17,35017,3504,4217,351(2,930)-40%13,9208,84212,8504,500 26%WATER PUMP MAINTENANCE 2,0002,000743680629%1,6781,4852,000- 0%ELECTRIC PUMP MAINTENANCE 82,00082,00033,42430,6442,781 9%72,24166,84972,00010,000 12%ASSET REPLACEMENT 201,000201,000087,500(87,500)-100%175,0000201,000- 0%CONTINGENCY 153,190153,1900000%00150,0003,190 2%Sub-Total M & O 2,282,9002,422,317612,423916,984 (304,562)-33%2,039,5381,224,8452,433,925(11,608)0%Capital Outlay EQUIPMENT55,58055,5809,2775,8103,46760%17,20518,55456,000(420) -1%EQUIPMENT 157,200468,102232,248172,51659,73235%221,619464,495468,000102 0%Sub-Total Capital Outlay 212,780523,682241,524178,32663,199 35%238,824483,049524,000(318)0%TOTAL EXPENDITURES3,767,100 $ 4,221,419 $ 1,371,313 $ 1,526,362 $ (155,049)$ -10%3,229,251 $ 2,742,625 $ 4,066,662 $ 154,757 $ 4%Notes % change from last year ==>>-15%26%1 Finance Projections reflect the most recent quarterly update 01/15/15 16:03 Liquid Waste Expenditure Analysis ExpendituresChange Costa Mesa Sanitary District ... an Independent Special District Project Status Report Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file the report. Item Number:14. ATTACHMENTS:Description Type CIP Updates Jan 2015 Board Meeting Backup Material COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:CONSTRUCTION COMPLETION DATE: Preliminary Civil Engineering - $131,047; Estimated construction cost - $5.8 million 9/3/14 - Additional Preliminary Engineering Allocation - $10,000 STATUS REPORT:12/20/10 - No change.01/27/11 - No change.5/26/11 - Staff met with another potential OCSD consultant to review OCSD's scope of work. OCSD will soon be publishing their RFP.10/27/11 - OCSD selected Dudley as its consultant and is finalizing the consultant contract.11/30/11 - No change.1/26/12 - Kickoff meeting for OCSD's consultant Dudek scheduled for 1/11/12. Consultant has placed flow meters in CMSD lines to confirm flows.8/20/12 - OCSD's surveyors are working on the topography.10/26/10 - OCSD requested copies of all CMSD pumping station plans, which were provided. OCSD anticipates hiring a consultant to prepare an EIR and alignment study in 2011. CMSD requested a joint EIR.9/23/10 - OCSD was provided with plans, maps and flow figures for their review. OCSD will be hiring a consultant to prepare the design for their facilities. 4/28/11 - Staff met with 3 proposed OCSD consultants to explain the project. OCSD's first phase of work will be an EIR and alignment study and the CMSD requested the OCSD EIR cover the CMSD work. 03/24/11 - Staff met with OCSD Project Managers on 3/8/11 to review OCSD's scope of work and project timing.9/22/11 - OCSD is evaluating consultant proposals.8/25/11 - No change.6/28/12 - District Engineer is working with OCSD consultant on confluence point for CMSD/CNB/OCSD sewers.7/26/12 - CMSD will be obtaining topographic information from OCSD's consultant and will sve $4,500 in the process due to cost sharing.9/20/12 - The District Engineer has begun working with the topography provided by OCSD's surveyors and aerial photogrammist.02/24/11 - No change. Staff will be contacting OCSD to review their status. 11/18/10 - No change.Abandon 6 CMSD pumping stations, abandon the CNB station in the CNB island on W. 19th Street, and abandon the private pumping station on W. 18th Street by constructing new gravity lines.#101 West Side Pumping Station Abandonment 7/1/2012 3/25/2019 Rob Hamers, District Engineer 2/23/12 - CMSD District Engineer is providing scope of work for preliminary engineering for Board consideration.3/22/12 - CMSD District Engineer is providing preliminary engineering fee for Board consideration.12/15/11 - OCSD staff attended CMSD SSC meeting on 11/8/11 to discuss project timeline.5/24/12 - The Board approved the District's Engineer's proposal for the Preliminary Engineering.4/16/12 - The Board is considering the District Engineer's proposal to perform the Preliminary Engineering.8/26/10 CMSD staff and two Directors met with OCSD staff on 8/4/10 to discuss the framework of the project. OCSD will be constructing its own gravity sewer to accept the CMSD and CNB flows and send it under the Santa Ana River to OCSD Plant No. 2. OCSD 7/28/11 - OCSD's preliminary schedule reflects completion of construction of OCSD's sewer facilities on 3/25/2019.6/23/11 - No change. COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:#101 West Side Pumping Station Abandonment 3/28/13 - The District Engineer provided a narrative and map explaining the District's work to be included in the EIR NOP.5/23/13 - Engineer's Estimates for the work are being prepared.6/27/13 - Engineer's Estimates for the work are being prepared; the District Engineer reviewed 2 sections of the OCSD EIR as requested.8/29/13 - The Board will review the District Engineer's staff report on the preliminary engineering at the 8/20/13 study session.9/26/13 - The Preliminary Engineering report will be reviewed at the October 15 Study Session.10/24/13 - The Preliminary Engineering Report will be reviewed at the October 15 Study Session.11/21/13 - The preliminary engineering report was reviewed at the 11/12/13 study session.12/19/13 - No change in status.1/23/14 - No change in status.2/25/14 - No change in status.3/27/14 -No change in status.4/24/14 - No change in status.5/22/14 - No change in status.6/26/14 - The EIR is complete and will go to the OCSD Board for certification on 7/23/14. The OCSD RFP for final design will be advertised in August.7/24/14 - A special meeting is set for 7/22/14 to determine funding for potentially high park restoration and maintenance costs.9/25/14 -OCSD certified the project EIR; CMSD is completing a limited soils investigation to determine micro tunneling costs and total project costs.10/23/14- Soils report sent to micro tunneling contractor for cost estimate; with these results, CMSD can prepare a new cost estimate for entire project; OCSD has completed their estimate .11/20/14 - Engineering staff is preparing a new cost estimate for the project based on cost estimates from two contractors.12/18/14 - Engineering staff has finalized the new construction cost estimate and is presenting to the GM.Account Number Encumbrances Balance #101 2,541,625 $ 172,724 $ 17,251 $ 2,500 $ 2,349,150 $ Total 2,541,625 $ 172,724 $ 17,251 $ 2,500 $ 2,349,150 $ 7/25/13 - The District Engineer will be providing the preliminary budget at the 7/25/13 regular meeting.4/18/13 - The District Engineer is continuing work on the preliminary engineering. Approved Proj Budget June 30, 2014 Accumulated Cost Current Year Expenditures 2/28/13 - The District Engineer is continuing work on the preliminary engineering.8/28/14 - CMSD and OCSD are preparing Engineer's Estimates for CMSD's portion of the work. OCSD has proposed an Agreement on the need for all 1/24/13 - The District Engineer is continuing work on the preliminary engineering.12/20/12 - The District Engineer is continuing work on the preliminary engineering. followed by consideration of the MOU from OCSD.1/22/15 - Engineering staff has finalized the construction cost estimate and presented the estimate to OCSD. Next step is CMSD financial planning abandonment facilities to be in operation.11/15/12 - The District Engineer is continuing working with the topography provided by OCSD's surveyors.10/25/12 - The District Engineer is continuing working with the topography provided by OCSD's surveyors. COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY 2014-15 PROJECT:#194 Sewer Manhole Rehab (Interior Rehab and Pump Station Re-Coating)PROJECT MANAGER:Rob Hamers, District Engineer DESCRIPTION:Rehabilitation of manhole interiors including reconstructing channels, building up wall thicknesses, and adding spray-on protective coatings. The project also includes new protective coatings for various pump station interiors. BEGIN DESIGN:2013-2014 fiscal year (Project was delayed until additional funding became available)APPROXIMATE CONSTRUCTION COMPLETION DATE:June, 2015 STATUS REPORT;10/23/14 - Design phase being re-started; plans 80% complete.11/20/14 - The plans and specs are 90% complete.12/18/14 - The plans and specs are 95% complete.1/22/15 - Staff is preparing specifications for bidding.Accumulated Current Year Approved Cost to Date Account Number Project Budget As of 6/30/2014 Expenditures Encumbrances Balance #194 300,000 $ -$ -$ -$ 300,000 $ Total 300,000 $ -$ -$ -$ 300,000 $ . COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:APPROX. CONSTRUCTION COMPLETION DATE:Civil Design - $21,133.50; Civil Contract/Admin/Inspection - $48,470 #196-A (Victoria, Mendoza & Elden By-Pass Pumps) - Engineer's Estimate: $500,000 #196-B (Canyon Generator) - Engineer's Estimate: $100,000 STATUS REPORT:3/28/13 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment.4/18/13 - No change in status.5/23/13 - A soils investigation is being performed for the 23rd P.S. location in the right-of-way slope. Two other locations will be housed in prefabricated buildings.6/27/13 - The City of Costa Mesa is reviewing the design for the 3 stations in Costa Mesa 9/26/13 - The District Engineer has provided a staff report for the 9/26/13 regular meeting on the status of the project.10/24/13 - Installation at the Elden, Victoria, and Mendoza stations is out to bid as 196-A, and installation at the Canyon Station is out to bid as 196-B.11/21/13 - Bid opening for 196-B Canyon Generator was 11/5/13 and the low bidder is Avram Electric in the amount of $64,815.12/19/13 - Bid opening for 196-A was held 11/20/13 and award construction contract on the 12/19/13 agenda to GCI in the amount of $485,200 and $222,080 equipment.1/23/14 - Work is occurring on 196-A at Elden, Victoria, and Mendoza pump stations and #196-B at Canyon pump station.2/25/14 - Construction on #196-A is 10% complete and #196-B is 50% complete.3/27/14 - Construction on #196-A is 15% complete and #196-B is 60% complete.4/24/14 - #196-A is 40% complete and #196-B is 95% complete.5/22/14 - The building was installed at Victoria PS on 5/8/14; #196-A is 75% complete. #196-B is complete.6/26/14 - Installation of the backup pumping units at Victoria and Mendoza pump stations is complete.7/24/14 - Installation at Elden will continue after contractor moves golf course fence.8/28/14 - The District/SACC Agreement for moving the golf course fence was approved and construction is set to continue.9/25/14 - #196-A Elden, Victoria, Mendoza back-up pumps complete; #196-B Generator at Canyon pump station complete; #196-C 23rd back-up pump is in design at structural engineer; #196-D Generator at Irvine pump station; waiting on Gas Co. for proposed meter location prior to finalizing plans.#196 Installation of Backup Power and Pumping Capability Rob Hamers, District Engineer Install backup standby diesel generator at two pumping stations and install backup pumping systems at April 23, 2012 05/24/12 - District's Engineer's office is in design of the backup pumping systems while another consultant, PDE, is in design on the standby diesel generators.10/25/12 - The District Engineer is working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency 01/24/13 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-12/20/12 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-8/29/13 - The District Engineer is finalizing the plans for the backup pumping units at Elden, Victoria, and Mendoza. The District Engineer is also finalizing the 9/20/12 - Plans were submitted to the cities of Costa Mesa and Newport Beach for first plan check.7/25/13 - Engineering staff is awaiting City of Costa Mesa comments on building design at three sites, while 23rd station in Newport Beach is in design.Jan - 15 6/28/12 - Plans and specs are 30% complete.11/15/12 - The District Engineer is working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment.02/27/13 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-7/26/12 - Plans and specs are 60% complete.8/20/12 - Engineering staff is performing final review prior to submitting the plans for plan check. COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:#196 Installation of Backup Power and Pumping Capability 10/23/14 - GM prefer generator at 23rd P.S. instead of backup unit requiring partial redesign; 196-D Irvine P.S Generator for designing meter assembly by Gas Co.11/20/14 - Electrical engineering consultant now retained for generator design for #196-C 23rd Station; Design for #196-D Irvine P.S. is continuing.12/18/14 - 23rd PS generator for #196C requires a larger block wall structure than the backup pump. The generator for the Irvine PS for #196-D will soon be out to bid.1/22/15 - 196-C - Project in design at electrical engineer's office; design is for backup generator. 196-D - Project out to bid with bid opening 1/20/15.Account Number Encumbrances Balance #196-A Elden, Victoria, Mendoza Pump Stations 790,000 $ 572,977 $ 188,877 $ 178,515 $ (150,369)$ #196-B Canyon Pump Station 140,000 115,335 - - 24,665 #196-C 23rd Street Pump Station 65,000 14,546 947 - 49,508 #196-D Irvine Pump Station 65,000 89,462 112,637 4,795 (141,894) Total 1,060,000 $ 792,320 $ 302,461 $ 183,310 $ (218,090)$ June 30, 2014 Accumulated Cost Current Year Expenditures Approved Project Budget COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY 2014-15 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:APPROX. CONSTRUCTION COMPLETION DATE:Civil Design: $58,739; Civil Contract Admin/Inspection - $17,269; Construction Engineer's Estimate: $318,000 STATUS REPORT:11/15/12 - The design phase is continuing.01/24/12 - The plans and specs are approximately 50% complete.3/28/13 - The plans and specifications will be submitted for first plan check by the end of March 2013.4/18/13 - The plans were submitted to Costa Mesa and Newport Beach for 1st review on 4/1/13.5/23/13 - The project went out to bid on May 3, 2013 and bid opening is June 4, 2013.6/27/13 - Bid opening was 6/4/13 and the low bidder is Charles King Co., the same contractor as Phase II, in the amount of $228,700.8/29/13 - The first day of work was 7/26/13.9/26/13 - Work is approximately 75% complete on installation of liners and dig and replace repairs.10/24/13 - Work was re-started after a shortage of lining material occurred.11/21/13 - Work is continuing and is 80% complete.12/19/13 - All work is complete except for the extra work of full length lining in two, and possibly three, areas.1/23/14 - No work occurred from Thanksgiving to New Years due to City holiday closure so the remaining work can be completed.2/25/14 - The contractor is obtaining additional estimates for the extra work. The regular work is complete.3/27/14 - The extra work will be moved to a separate project. The Board will finalize the project at the March 2014 regular meeting.4/24/14 - The project #197A is complete.4/24/14 - P roject 197B engineering for additional Grade 5 discovered and Hotspots is complete. Project is out to bid.5/22/14 - 197-B being awarded to Sancon for $111,000. Engineer's estimate is $114,600.6/26/14 - The construction contract for 197-B is fully executed and the contractor is acquiring materials.7/24/14 - Contractor will begin work on Project #197-B in late July.8/28/14 - Work began on #197-B on 7/28/14 and will end on 8/14/14. Board will final project on 8/28/14.9/25/14 - Project is complete.10/23/14 - This project completes the Grade 5 repairs & should add to its list of accomplishments that 255 Grade 5 deficiencies deficiencies in the gravity system were repaired within 3 years.Nov-13 Phase 3 of Grade 5 repairs. Grade 5s are pipe problems ready for failure that were found during the 2006-2009 District-wide televising project. There are approximately 12/20/12 - The design is continuing.7/25/13 - The pre-construction meeting is 7/11/13 and construction is tentatively scheduled to begin in late July.10/25/12 - The design phase is underway.02/27/13 - The plans and specs are approximately 75% complete.#197 System Wide Sewer Reconstruction Phase III #197 System Wide Sewer Reconstruction Phase III Rob Hamers, District Engineer Sep-12 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY 2014-15 Approved June 30, 2014 Current Year Account Number Project Budget Accumulated Cost Expenditures Encumbrances Balance #197A 300,000 $ 306,608 $ -$ -$ (6,608)$ #197B 370,000 11,573 116,815 - 241,612 Total 670,000 $ 318,181 $ 116,815 $ -$ 235,004 $ COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:APPROX. CONSTRUCTION COMPLETION DATE:Civil Design - $82,593 STATUS REPORT:1/23/14 - The design phase is continuing.5/22/14 -Mendoza force main is out to bid as a separate project due to upcoming City alley project. Engineer's estimate is $102,000. Bid opening is 6/2/14.6/26/14 - GCI Construction is low bidder in the amount of $82,540 for Project #200-A Mendoza Force Main.7/24/14 - 1st day of work for Project #200-A was 6/23/14; plans are 75% complete for Harbor, Victoria, SCP.8/28/14 - All work w a s completed on #200-A Mendoza force main and the Board will final the project on 8/28/14.9/25/14 - #200-A Mendoza PS new force main is complete. Design phase of Harbor, Victoria & South Coast Plaza continuing; will be meeting with SC Plaza.10/23/14 - The plans are 90% complete and were submitted to the City, SCP, and the utility agencies the week of 10/12/14.11/20/14 - Staff met with SCP Management on 11/6/14 to discuss their concerns. Staff will be meeting with the City of Costa Mesa engineering staff.12/18/14 - Staff is working with SCP Mgt's over redirecting FM flows. Staff will be meeting with City engineering to discuss the Harbor and Victoria FM 1/22/15 - CCTV and flow metering will occur in the gravity system downstream of the new force main alignment at South Coast Plaza. New Harbor force main and Victoria force main were discussed with the City Engineer.June 30,2014 Approved Accumulated Current Year Account Number Proj Budget Cost Expenditures Encumbrances Balance #200 1,030,868 $ 109,847 $ 59,463 $ 4,999 $ 856,559 $ Total 1,030,868 $ 109,847 $ 59,463 $ 4,999 $ 856,559 $ #200 Rehabilitation of Four Force Mains Rob Hamers, District Engineer The Wilson, Victoria, Mendoza, and South Coast Plaza force mains are being replaced with new force mains.Dec-13 Late 2014 12/19/13 The design phase has begun.2/25/14 - The design phase is 40% complete.3/27/14 - The design phse is 60% complete.4/24/14 - The design phase is 70% complete. COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY 2014-15 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:7/1/13 APPROX. CONSTRUCTION COMPLETION DATE:6/30/14 Engineering Design = approximately $2,500 per station STATUS REPORT: 4/24/14 - Repiping at 21st Street P.S. complete; construction cost = $73,776.5/22/14 - Corp Yard P.S. repiping being awarded to Schuler Engineering for $40,550.6/26/14 - The construction contract for Corp Yard P.S. is fully executed and the contractor is acquiring materials.7/24/14 - Construction began 7/7/14 at Corp Yard pump station.10/23/14 - Construction at the Corp Yard PS is complete.11/20/14 - Project is complete.Prior Years Account Number Encumbrances Balance #201 260,000 $ 85,219 $ 42,710 $ -$ 132,071 $ Total 260,000 $ 85,219 $ 42,710 $ -$ 132,071 $ #201 - Replace Equipment at Pump Stations Rob Hamers, District Engineer Replace piping and valves at various pump stations as needed Approved Project Budget June 30, 2013 Accumulated Cost Current Year Expenditures COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:APPROX. CONSTRUCTION COMPLETION DATE:Estimated Project budget: Civil Design $11,483.50; Construction - Engineer's Estimate : $431,210 STATUS REPORT:12/19/13 - The plans are 90% complete and the Engineer's Estimate is being prepared.1/23/14 - The plans are 100% complete. Staff is exploring combining this work with 196-A, installation of a backup pump at Elden Pump Station.2/25/14 - The project is being discussed at the study session.5/22/14 - The strategic improvements for this project were constructed on 5/8/14.6/26/14 - No change in status.7/24/14 - The remaining improvements under this project will likely be constructed in the 2015-16 fiscal year.8/28/14 - The project will likely receive funding in the 2015-20 16 Fiscal Year to complete the replacement.9/25/14 - No change in status.10/23/14 - No change in status.11/20/14 - No change in status.12/18/14 - No change in status.1/22/15 - No change in status. Accumulated Current Year Approved Cost to Date Account Number Project Budget As of 6/30/2014 Expenditures Encumbrances Balance #202 150,000 $ 10,567 $ -$ -$ 139,433 $ Total 150,000 $ 10,567 $ -$ -$ 139,433 $ #202 Elden Piping and Valve Replacement Rob Hamers, District Engineer Replace 37-year old piping and valves outside Elden Pumping Station; includes valves and piping on Elden force main and remaining section of Irvine force main.October, 2013 3/27/14 - The need for additional funding has moved the project into the next 2-year budget cycle, beginning 2015-2016; strategic 10/24/13 - Engineering staff met with the field crew to discuss possible additional replacement of valves inside station.11/21/13 - The design phase is continuing; the plans are 60% complete.4/24/14 - The strategic improvements for this project were added to Project #196-A. improvements are being included as extra work in Project #196-A.December, 2014 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:October 2013 APPROX. CONSTRUCTION COMPLETION DATE:June 2014 Architectural Design - $7,000; Electrical Engineering Design - $4,500 STATUS REPORT: 10/3/2013 - Entered into agreement with RTA Architects to design and provide construction administration services 11/7/2013 - Reviewed SCE 12 months bills at the Yard to determine load demand and size of the generator 12/1/2013 - Project manager meeting. Possible generator manufacturers are Caterpillar, Cummins and Kohler.1/23/14 - No change in status.2/25/14 -RFP for design firms is being prepared.3/27/14 - Proposals are being requested from design firms for the design phase.4/24/14 - An electrical engineer has been retained for the design phase for a fee of $4,500.5/22/14 - The plans were submitted to the City of Costa Mesa for 1st plan review.6/26/14 - The design plans are in plan check and being re-submitted to the City.7/24/14 - Plans were resubmitted to the fire department for 2nd review; all other departments have signed off.8/28/14 - The project is out to bid.9/25/14 - Bid opening is being handled by the CMSD GM and project architect.10/23/14 - Bids were opened and are being evaluated; the low bid amount is $97,000.11/20/14 - The specifications for the generator being proposed by the low bidder are being reviewed.12/18/14 - Contractor's shop drawings are under review.1/22/15 - The contractor has provided the required bond an pre-construction meeting is planned for 1/30/15.June 30, 2014 Approved Accumulated Current Year Account Number Proj Budget Cost Expenditures Encumbrances Balance #203 150,000 $ 5,462 $ 3,316 $ 5,722 $ 135,500 $ Total 150,000 $ 5,462 $ 3,316 $ 5,722 $ 135,500 $ #203 Emergency Generator at District Yard Scott Carroll, General Manager Procure and install an emergency generator at the District Yard COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2014-2015 PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:APPROX. CONSTRUCTION COMPLETION DATE:Civil Design - $9,779 STATUS REPORT:6/26/14 - The plans are 60% complete.7/24/14 - The project went out to bid on 7/2/14 with bid opening scheduled for 8/5/14.8/28/14 - Bid opening was 8/5/14 and the low bid was Excel Paving in the amount of $87,349.00.9/25/14 - Notice to proceed issued to Excel Paving to begin work 9/15/14; Field Crew requesting additional manholes be added as extra work.10/23/14 - Construction is 1/3 complete; contractor will wait for City Street projects to finish prior to continuing unless existing manhole condition is severe.11/20/14 - Construction is continuing in coordination with City street projects.12/18/14 - Construction is continuing.1/22/15 - Contractor is re-mobilizing.June 30,2014 Approved Accumulated Current Year Account Number Proj Budget Cost Expenditures Encumbrances Balance #204 100,000 $ 9,119 $ 38,921 $ 55,073 $ (3,113)$ Total 100,000 $ 9,119 $ 38,921 $ 55,073 $ (3,113)$ 4/24/14 - The design phase is in process #204 Manhole Cover Repairs Rob Hamers, District Engineer Repair 102 manhole covers Feb-14 Late 2014 2/25/14 Project approved by Board, fund appropriated.5/22/14 - The plans are 40% complete. COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY 2014- 15 PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:Aug-14 APPROX. CONSTRUCTION COMPLETION DATE:Jun-15 Civil Design -STATUS REPORT:8/28/14 - The design phase is underway.9/25/14 - Engineering staff is reviewing CCTV of Grade 4s in streets set for City improvements such as new paving or slurry seal. One Grade 5 found in Canadian; Mike Kilbride Ltd. will excavate and repair.10/23/14 - Engineering staff still reviewing CCTV of Grade 4s in City streets designated for 11/20/14 - No change in status. Review of the videos is continuing.12/18/14 - District Engineer is determining options for completion of all Grade 4s.1/22/15 - A cost analysis of expected repairs for Phases I and II was presented to Board at the February study session.June 30, 2014 Approved Accumulated Current Year Account Number Proj Budget Cost Expenditures Encumbrances Balance #306 568,000 $ 2,557 $ 27,958 $ -$ 537,485 $ 568,000 $ 2,557 $ 27,958 $ -$ 537,485 $ #306 Grade 4 Repairs - Phase I Rob Hamers, District Engineer District has 1,600 line sections with one or more Grade 4 deficiencies. COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY 2014-15 PROJECT:#307 Harbor PS Generator PROJECT MANAGER:Rob Hamers, District Engineer DESCRIPTION: BEGIN DESIGN:APPROX. CONSTRUCTION COMPLETION DATE:Civil Design -STATUS REPORT:12/18/14 - Engineering staff is searching for a location for the proposed generator, which will have a footprint of 12' x 23' including clearances.1/22/15 - Backup generator will be extremely large and will require a building. Staff searching for site.June 30, 2014 Approved Accumulated Current Year Account Number Proj Budget Cost Expenditures Encumbrances Balance #307 178,500 $ -$ 595 $ -$ 177,905 $ 178,500 $ -$ 595 $ -$ 177,905 $ COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY 2014-15 PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:APPROX. CONSTRUCTION COMPLETION DATE:Civil Design -STATUS REPORT:June 30, 2014 Approved Accumulated Current Year Account Number Proj Budget Cost Expenditures Encumbrances Balance #308 340,500 $ -$ -$ -$ 340,500 $ 340,500 $ -$ -$ -$ 340,500 $ Not yet started #308 Manhole Rehab Rob Hamers, District Engineer Costa Mesa Sanitary District ... an Independent Special District Investment Report for the Month of December 2014 Recommendation/Notes: Recommendation: That the Board of Directors approv es the Investment Report for the month of December 2014. Item Number:15. ATTACHMENTS:Description Type Staff Report - Investment Report Cover Memo Investment Report Backup Material Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environme nt by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors From: Marc Davis, Treasurer Date: January 22, 2015 Subject: Investment Report for the Month of December 2014 Summary Attached is the Investment Report for the month of December 2014. As required by the District’s Statement of Investment Policy, the Inve stment Report delineates all investment activity during the month. Staff Recommendation Approve the Investment Report for the month of Dece mber 2014. Analysis This report lists the types of securities held in t he District’s portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of December 31, 2014. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 26, 2014 re gular meeting, as well as the California Government Code. The market values in t his report were provided by our third Board of Directors January 22, 2015 Page 2 of 4 party custodian, Pershing, LLC, except for the Loca l Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Trea surer’s Office. It does not represent the value of the underlying securities within the p ool, but rather the par or cost amount, which is the amount the District is entitled to wit hdraw. This reporting practice is consistent with industry standard practices for sim ilar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of December 31, 2014, was 0.793%. The yield to maturity of the portfolio was 0.793%. The District’s weighted average interest r ate was 53 basis points (0.526%) above the daily effective yield of LAIF, which was 0.267% as of December 31, 2014. The weighted average number of days to maturity for the District’s total portfolio was 674 days (1.85 years). The average duration of the underlyi ng securities in LAIF as of December 31, 2014 was 200 days. The District’s investment portfolio is in complianc e with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than o ne year as of December 31, 2014 was 29.75%. As of December 31, 2014, the District has adequate operating reserves necessary to meet its obligations for the next six months. Strategic Plan Element & Goal This item supports achieving Strategic Element No. 7.0, Finances, by ensuring the short and long-term fiscal health of the District. Legal Review Legal review is not required. Environmental Review The approval of the monthly Investment Report is no t a disturbance of the environment similar to grading or construction and is not a pro ject under CEQA or the District’s CEQA Guidelines. Financial Review Board of Directors January 22, 2015 Page 3 of 4 The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2015. Through December 31, 2014, the portfolio has earned a weighted average interest rate of 0.825%. Board of Directors January 22, 2015 Page 4 of 4 Public Notice Process Copies of this report are on file and will be inclu ded with the entire agenda packet for the January 22, 2015 Board of Directors regular meeting at District Headquarters (631 W. 19 th Street) and on the District’s website at www.cmsdca.gov . Alternative Actions 1. Refer the matter back to staff Attachments Treasurer’s Report of Pooled Cash and Investments a s of December 31, 2014 `DepositsOutstanding Bank Balance In Transits Checks Book Balance Active Accounts: Bank of America 315,625.60 $ 29,640.13 208,246.85 137,018.88 $ Total Active Accounts315,625.60 29,640.13 208,246.85 137,018.88 Market Value Increase Decrease Cost Investments: Local Agency Investment Fund9,066,447.55 $ - - 9,066,447.55 $ Money Market/Sweep Account28,418.09 - - 28,418.09 Negotiable Certificates of Deposit573,082.75 - (1,242.25) 574,325.00 Federal Agency Securities11,668,862.50 - (81,012.50) 11,749,875.00 Total Investments21,336,810.89 - (82,254.75) 21,419,065.64 Total Pooled Cash & Investments21,652,436.49 $ 29,640.13 $ 125,992.10 $ 21,556,084.52 $ Market Adjustment C O S T A M E S A S A N I T A R Y D I S T R I C T Treasurer's Report of Pooled Cash and Investments December 31, 2014 Costa Mesa Sanitary District Pooled Cash and Investments by Fund December 31, 2014 Solid Waste Fund: Operating Reserve 821,000.00 $ Unreserved: Designated for working capital 1,494,000.00 Undesignated 3,847,947.57 Liquid Waste Fund: Operating Reserve 365,000.00 Reserved for Earthquakes/Emergencies 1,000,000.00 Reserved for Capital Outlay 4,347,000.00 Unreserved: Designated for working capital 2,467,300.00 Undesignated 912,698.09 Sewer Construction Fund 100,000.00 Facilities Revolving Fund 452,411.84 Asset Replacement Fund 614,079.98 Asset Management Fund 5,134,647.04 Total Pooled Cash & Investments 21,556,084.52 $ Treasurer Date Marcus D. Davis 1/15/15 1 Total investments outstanding as of November 30, 20 14 17,444,159.39 $ Additions:Gain on sale of investment - Investment purchases 999,875.00 Deductions:Investments called - Net increase (decrease) in Sweep Account (999,968.75) Net increase (decrease) in LAIF 3,975,000.00 Total investments outstanding as of December 31, 20 14 21,419,065.64 $ C O S T A M E S A S A N I T A R Y D I S T R I C T Investment Activity Summary December 31, 2014 2 Interest CUSIP PurchaseMaturityCouponInvestmentEarned at Number Investment Date Date Rate Cost 12/31/14 n/aLocal Agency Investment Fundn/an/a0.267%9,066,44 7.55 $ n/a**n/aPershing-Sweep Acctn/an/a0.000%28,418.09 n/a 3134G3ZR4Federal Home Loan Mortgage08/07/1208/07/17 1.000%1,000,000.00 4,000.00 3136G0L58Federal National Mortgage Assn10/18/1210/1 8/171.000%1,000,000.00 2,027.78 3135G0RQ8Federal National Mortgage Assn11/15/1211/1 5/171.000%1,000,000.00 1,277.78 313381LC7Federal Home Loan Mortgage12/28/1212/28/17 0.950%1,000,000.00 79.17 3133823B7Federal Home Loan Mortgage02/22/1302/22/18 1.150%1,000,000.00 4,120.83 3133826D0Federal Home Loan Mortgage02/28/1302/28/18 1.100%1,000,000.00 3,758.33 313382HR7Federal Home Loan Mortgage03/27/1303/27/18 1.130%1,000,000.00 2,950.56 3136G1L31Federal National Mortgage Assn05/15/1305/1 5/170.700%1,000,000.00 894.44 3133ECQW7Federal Farm Credit Bank06/04/1306/04/181.250%1,000,000.00 937.50 3134G47G7Federal Home Loan Mortgage06/26/1306/26/18 1.400%1,000,000.00 194.44 87165FAC8Synchrony Bank Retail CTF Dep06/06/1406/06 /192.000%99,500.00 126.03 06740KGY7Barclays Bank Retail CTF Dep07/02/1407/05/160.650%99,825.00 324.11 3133EDR20Federal Farm Credit Bank07/24/1407/24/191.900%500,000.00 4,143.06 3130A2PNOFederal Home Loan Mortgage08/06/1408/06/19 2.000%500,000.00 4,027.78 20033AGD2Comenity Capital Bank CTF Dep08/25/1402/25 /160.750%125,000.00 15.41 3130A3JA3Federal Home Loan Mortgage11/26/1411/26/19 1.500%249,875.00 364.58 59013JCJ6Merrick Bank South CTF Dep12/08/1412/08/15 0.500%125,000.00 39.38 795450VP7Sallie Mae Bank CTF Dep12/25/1412/12/161.0 50%125,000.00 75.51 3130A3MR2Federal Home Loan Mortgage12/30/1412/30/19 2.000%500,000.00 - Totals 21,419,065.64 $ 29,356.69 $ **Represents the LAIF daily rate at 12/31/14 Comments COSTA MESA SANITARY DISTRICT Investment and Investment Earnings December 31, 2014 3 Current %of Market Value 11/30/14 Maximum %U.S. Treasury Bills0.00%Unlimited U.S. Treasury Notes0.00%Unlimited Federal Agency Issues:FICB 0.00%Unlimited FLB 0.00%Unlimited FHLB 0.00%Unlimited FHLMC 33.74%Unlimited FNMA 13.97%Unlimited FFCB 6.98%Unlimited Other *0.00%Unlimited Banker's Acceptances0.00%25% (1)Certificates of Deposit0.00%25%Negotiable Certificates of Deposits2.69%25% (1)Commercial Paper0.00%25% (1)Medium Term Corporate Notes0.00%20% (1)LAIF (Local Agency Investment Fund)42.49%40,000,000 Shares of Benefical Interest0.00%20%Money Market/Mutual Funds (Sweep Acct)0.13%10% per fund (2)Total 100.00%% of portfolio maturing under one year 29.75%no les s than 20%% of portfolio maturing over one year70.25%100.00%(1) Further limited to 10% in any single issuer (2) Also limited to 20% in total.*These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE COSTA MESA SANITARY DISTRICT Summary of Policy Limitations December 31, 2014 Description 4 PurchaseMaturityCouponInvestment% ofMarket% of Description Broker/Dealer Date Date Rate Cost Portfolio Value Portfolio Comments State Treasurer's PoolLAIFn/aContinuous0.267%**9,06 6,447.55 $ 9,066,447.55 $ Pool Total State Treasurer's Pool 9,066,447.55 42.33%9,066,447.55 42.49%Money Market Mutual FundPershingn/aContinuous0.000%28,418.09 28,418.09 Sweep Total Money Market Mutual Fund 28,418.09 0.13%28,418.09 0.13%Federal Home Loan MortgageE.J. De La Rosa08/07/1208 /07/171.000%1,000,000.00 992,920.00 FHLMC Federal Home Loan MortgageE.J. De La Rosa12/28/1212 /28/170.950%1,000,000.00 990,350.00 FHLMC Federal Home Loan MortgageE.J. De La Rosa02/22/1302 /22/181.150%1,000,000.00 993,710.00 FHLMC Federal Home Loan MortgageE.J. De La Rosa02/28/1302 /28/181.100%1,000,000.00 991,430.00 FHLMC Federal Home Loan MortgageE.J. De La Rosa03/27/1303 /27/181.130%1,000,000.00 986,140.00 FHLMC Federal Home Loan MortgageE.J. De La Rosa06/26/1306 /26/181.400%1,000,000.00 994,680.00 FHLMC Federal Home Loan MortgageMult-Bank Securities08/06 /1408/06/192.000%500,000.00 500,075.00 FHLMC Federal Home Loan MortgageMult-Bank Securities11/26 /1411/26/191.500%249,875.00 249,317.50 FHLMC Federal Home Loan MortgageMult-Bank Securities12/30 /1412/30/192.000%500,000.00 499,420.00 FHLMC Total Federal Home Loan Mortgage 7,249,875.00 33.85%7,198,042.50 33.74%Federal National Mortgage AssociationE.J. De La Ros a10/18/1210/18/171.000%1,000,000.00 994,650.00 FNMA Federal National Mortgage AssociationE.J. De La Ros a11/15/1211/15/171.000%1,000,000.00 995,490.00 FNMA Federal National Mortgage AssociationUnion Banc05/1 5/1305/15/170.700%1,000,000.00 991,430.00 FNMA Total Federal National Mortgage Association 3,000,000.00 14.01%2,981,570.00 13.97%Federal Farm Credit BankE.J. De La Rosa06/04/1306/0 4/181.250%1,000,000.00 990,780.00 FFCB Federal Farm Credit BankMult-Bank Securities07/24/1 407/24/191.900%500,000.00 498,470.00 FFCB Total Federal National Mortgage Association 1,500,000.00 7.00%1,489,250.00 6.98%Synchrony Bank Retail Certificate of DepositMulti-B ank Securities06/06/1406/06/192.000%99,500.00 99,131.00 Negotiable CD Barclays Bank Retail Certificate of DepositMulti-Ba nk Securities07/02/1407/05/160.650%99,825.00 99,723.00 Negotiable CD Comenity Capital BankMulti-Bank Securities08/25/140 2/25/160.750%125,000.00 124,991.25 Negotiable CD Merrick Bank South CTF DepMulti-Bank Securities12/0 8/1412/08/150.500%125,000.00 124,853.75 Negotiable CD Sallie Mae Bank CTF DepMulti-Bank Securities12/25/1 412/12/161.050%125,000.00 124,383.75 Negotiable CD Total Negotiable Certificates of Deposit 574,325.00 2.68%573,082.75 2.69%Total Investments 21,419,065.64 $ 100.00%21,336,810.89 $ 100.00%**Represents the LAIF daily rate at 12/31/14 COSTA MESA SANITARY DISTRICT Schedule of Investments by Instrument Type December 31, 2014 5 InvestmentPurchaseMaturityDays toCouponYield toInve stment Broker/Dealer Type Date Date Maturity Rate Maturity Cost Local Agency Investment FundPool 10.267%**0.267%9,066,447.55 $ PershingSweep 10.000%0.000%28,418.09 E.J. De La RosaFHLMC08/07/1208/07/179501.000%1.000%1,000,000.00 E.J. De La RosaFNMA10/18/1210/18/171,0221.000%1.000 %1,000,000.00 E.J. De La RosaFNMA11/15/1211/15/171,0501.000%1.000 %1,000,000.00 E.J. De La RosaFHLMC12/28/1212/28/171,0930.950%0.95 0%1,000,000.00 E.J. De La RosaFHLMC02/22/1302/22/181,1491.150%1.15 0%1,000,000.00 E.J. De La RosaFHLMC02/28/1302/28/181,1551.100%1.10 0%1,000,000.00 E.J. De La RosaFHLMC03/27/1303/27/181,1821.130%1.13 0%1,000,000.00 UnionBancFNMA05/15/1305/15/178660.700%0.700%1,000,0 00.00 E.J. De La RosaFFCB06/04/1306/04/181,2511.250%1.250 %1,000,000.00 E.J. De La RosaFHLMC06/26/1306/26/181,2731.400%1.40 0%1,000,000.00 Multi-Bank SecuritiesNegotiable CD06/06/1406/06/191 ,6182.000%2.106%99,500.00 Multi-Bank SecuritiesNegotiable CD07/02/1407/05/165 520.650%0.650%99,825.00 Multi-Bank SecuritiesFFCB07/24/1407/29/191,6711.900 %1.900%500,000.00 Multi-Bank SecuritiesFHLMC08/06/1408/06/191,6792.00 0%2.000%500,000.00 Multi-Bank SecuritiesNegotiable CD08/25/1402/25/164 210.750%0.750%125,000.00 Multi-Bank SecuritiesFHLMC11/26/1411/26/191,7911.50 0%1.500%249,875.00 Multi-Bank SecuritiesNegotiable CD12/08/1412/08/153 420.500%0.500%125,000.00 Multi-Bank SecuritiesNegotiable CD12/25/1412/12/167 121.050%1.050%125,000.00 Multi-Bank SecuritiesFHLMC12/30/1412/30/191,8252.00 0%2.000%500,000.00 Total Investment Portfolio 21,419,065.64 $ Total Portfolio Weighted Avg Interest Rate0.793%Weighted Avg Yield to Maturity0.793%Weighted Avg Days to Maturity674 Days1.85 Years **Represents the LAIF daily rate at 12/31/14 COSTA MESA SANITARY DISTRICT Investment Portfolio December 31, 2014 6 Net PurchaseMaturityIntuitionInvestment CouponInvestme ntMarketAccruedGain/(Loss)Date Date Broker/Dealer Type Par Rate Cost Value Interest If Sold n/aContinuousLAIFPool9,066,447.55 $ 0.267%**9,066,447.55 9,066,447.55 - - n/aContinuousPershingSweep28,418.09 0.000%28,418.09 28,418.09 - - 08/07/1208/07/17E.J. De La RosaFHLMC1,000,000.00 1.000%1,000,000.00 992,920.00 4,000.00 (7,080.00) 10/18/1210/18/17E.J. De La RosaFNMA1,000,000.00 1.000%1,000,000.00 994,650.00 2,027.78 (5,350.00) 11/15/1211/15/17E.J. De La RosaFNMA1,000,000.00 1.000%1,000,000.00 995,490.00 1,277.78 (4,510.00) 12/28/1212/28/17E.J. De La RosaFHLMC1,000,000.00 0.950%1,000,000.00 990,350.00 79.17 (9,650.00) 02/22/1302/22/18E.J. De La RosaFHLMC1,000,000.00 1.150%1,000,000.00 993,710.00 4,120.83 (6,290.00) 02/28/1302/28/18E.J. De La RosaFHLMC1,000,000.00 1.100%1,000,000.00 991,430.00 3,758.33 (8,570.00) 03/27/1303/27/18E.J. De La RosaFHLMC1,000,000.00 1.130%1,000,000.00 986,140.00 2,950.56 (13,860.00) 05/15/1305/15/17UnionBancFNMA1,000,000.00 0.700%1,000,000.00 991,430.00 894.44 (8,570.00) 06/04/1306/04/18E.J. De La RosaFFCB1,000,000.00 1.250%1,000,000.00 990,780.00 937.50 (9,220.00) 06/26/1306/26/18E.J. De La RosaFHLMC1,000,000.00 1.400%1,000,000.00 994,680.00 194.44 (5,320.00) 06/06/1406/06/19Multi-Bank SecuritiesNegotiable CD1 00,000.00 2.000%99,500.00 99,131.00 126.03 (369.00) 07/02/1407/05/16Multi-Bank SecuritiesNegotiable CD1 00,000.00 0.650%99,825.00 99,723.00 324.11 (102.00) 07/24/1407/24/19Multi-Bank SecuritiesFFCB500,000.00 1.900%500,000.00 498,470.00 4,143.06 (1,530.00) 08/06/1408/06/19Multi-Bank SecuritiesFHLMC500,000.0 0 2.000%500,000.00 500,075.00 4,027.78 75.00 08/25/1402/25/16Multi-Bank SecuritiesNegotiable CD1 25,000.00 0.750%125,000.00 124,991.25 15.41 (8.75) 11/26/1411/26/19Multi-Bank SecuritiesFHLMC250,000.0 0 1.500%249,875.00 249,317.50 364.58 (557.50) 12/08/1412/08/15Multi-Bank SecuritiesNegotiable CD1 25,000.00 0.500%125,000.00 124,853.75 39.38 (146.25) 12/25/1412/12/16Multi-Bank SecuritiesNegotiable CD1 25,000.00 1.050%125,000.00 124,383.75 75.51 (616.25) 12/30/1412/30/19Multi-Bank SecuritiesFHLMC500,000.0 0 2.000%500,000.00 499,420.00 - (580.00) Total Investments 21,419,865.64 $ 21,419,065.64 21,336,810.89 29,356.69 (82,254.75) **Represents the LAIF daily rate at 12/31/14 C O S T A M E S A S A N I T A R Y D I S T R I C T For all Maturities with Market Values December 31, 2014 7 Type ofPurchaseMaturityCouponInvestment Investment Date Date Rate Par Value Cost FHLMC08/07/1208/07/171.000%1,000,000.00 1,000,000.00 Callable 8/7/14 w/5 days notice, thereafter 1 1,2,5,8 FNMA10/18/1210/18/171.000%1,000,000.00 1,000,000.00 Callable 5/15/13 w/10 days notice, thereafter 8,11,2,5 FNMA11/15/1211/15/171.000%1,000,000.00 1,000,000.00 Callable 5/15/13 w/10 days notice, thereafter 8,11,2,5 FHLMC12/28/1212/28/170.950%1,000,000.00 1,000,000.00 Callable 12/28/13 w/5 days notice, monthly th ereafter FHLMC02/22/1302/22/181.150%1,000,000.00 1,000,000.00 Callable 8/22/13, w/5 days notice, thereafter 8,11,2,5 FHLMC02/28/1302/28/181.100%1,000,000.00 1,000,000.00 Callable 2/28/14, w/5 days notice, annually t hereafter FHLMC03/27/1303/27/181.130%1,000,000.00 1,000,000.00 Callable 3/27/15, w/5 days notice, thereafter 3,6,9,12 FNMA05/15/1305/15/170.700%1,000,000.00 1,000,000.00 Callable 5/15/14 w/10 days notice, qtrly ther eafter FFCB06/04/1306/04/181.250%1,000,000.00 1,000,000.00 Callable 9/4/13 w/5 days notice, anytime ther eafter FHLMC06/26/1306/26/181.400%1,000,000.00 1,000,000.00 Callable 3/26/15 w/5 days notice, thereafter 3,6,9,12 Negotiable CD06/06/1406/06/192.000%100,000.00 99,500.00 None Negotiable CD07/02/1407/05/160.650%100,000.00 99,825.00 None FFCB07/24/1407/24/191.900%500,000.00 500,000.00 Callable 7/24/15 w/5 days notice, anytime thereafter FHLMC08/06/1408/06/192.000%500,000.00 500,000.00 Callable 11/6/14 w/5 days notice, anytime thereafter Negotiable CD08/25/1402/25/160.750%125,000.00 125,000.00 None FHLMC11/26/1411/26/191.500%250,000.00 249,875.00 Callable 5/26/15 w/5 days notice, anytime thereafter Negotiable CD12/08/1412/08/150.500%125,000.00 125,000.00 None Negotiable CD12/25/1412/12/161.050%125,000.00 125,000.00 None FHLMC12/30/1412/30/192.000%500,000.00 500,000.00 Callable 3/30/15 w/5 days notice, anytime thereaft er Totals 12,325,000.00 $ 12,324,200.00 $ COSTA MESA SANITARY DISTRICT Call Schedule December 31, 2014 Call Features 8 Cost 50,136.76 In Thousands 1 - 180 Days5,219 $ 181 - 365 Days- 1 - 2 Years225 ##########6,562.50 2 - 3 Years 3,000 COSTA MESA SANITARY DISTRICT MATURITIES DISTRIBUTION December 31, 2014 30%40%50%60%70%29.75%45.60%6,562.50 2 - 3 Years 3,000 ##########3 - 4 Years8,000 4 - 5 Years1,100 TOTAL 17,544 $ 0%10%20%30%1 -180 Days 181 -365 Days 1 -2 Years 2 -3 Years 3 -4 Years 4 -5 Years 000000 0.00%1.28%17.10%6.27% 9 Costa Mesa Sanitary District Portfolio Interest Rate Information as of December 31, 2014 0.60%0.80%1.00%1.20%1.40%1.60%1.80%2.00%3 month T-Bill 6 month T-Bill 2 year T-Note 3 year T-Note 5 year T-Note CMSD-monthly LAIF-monthly OC Pool -monthly 10 0.00%0.20%0.40%OC Pool -monthly Costa Mesa Sanitary District ... an Independent Special District ADJOURN TO CLOSED SESSION TO: Recommendation/Notes: Discuss litigation with legal counsel pursuant to G overnment Code Section 54956.9: (a) In In regards to existing/anticipat ed litigation entitled Costa Mesa Sanitary District – Santa Ana Regional Water Quality Control Board Comp laint No. R8-2014-0017. (b) Anticipated litigation – significan t exposure to litigation pursuant to Government Code 5456.9(d)(2),(e)(1) [Number of potential cases : 1] Item Number: Costa Mesa Sanitary District ... an Independent Special District Costa Mesa Sanitary District ... an Independent Special District