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Agenda_2015_3_10_Meeting Study Session - Tuesday, March 10, 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.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.) III.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 ma tter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker wi ll be limited to four (4) continuous minutes. IV.ITEMS OF STUDY 1.Recycling & Waste Diversion Reports - February 20 15 Recommendation: That the Board of Directors receiv e and file the report. 2.Ordinance Enforcement Officer Report - February 2 015 Recommendation: That the Board of Directors receiv e and file the report. 3.Organics Ad Hoc Committee Update - Oral Report Recommendation: That the Board of Directors receiv e an oral report from Secretary Ooten. 4.Buy-Back Recycling Centers Recommendation: That the Board of Directors receiv e and file the report. 5.Organics Recycling Program "How To" Video Recommendation: That the Board of Directors review said video and provide comments. 6.Proposed Ordinance Requiring All Private Sewer Pump Stations Install Monitoring and Alarm Systems Recommendation: That the Board of Directors provid e feedback on drafting such an ordinance. 7.Affordable Care Act (ACA) "Cadillac Tax"Recommendation: That the Board of Directors receiv e and file the report. 8.Solid Waste Association of North America (SWANA): Organics Coll ection Training Course - Oral Report Recommendation: That the Board of Directors receiv e and file the report. 9.Future Study Session Items Recommendation: That the Board of Directors provid e staff with direction on items to be placed on future study session agendas. V.ORAL COMMUNICATIONS AND DIRECTOR COMMENTS VI.ADJOURNMENT Costa Mesa Sanitary District ... an Independent Special District Recycling & Waste Diversion Reports - February 2015 Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file the report. Item Number:1. ATTACHMENTS:Description Type Recycling & Waste Diversion Report Cover Memo CR Transfer CR Transfer To:Javier Ochiqui To:Javier Ochiqui From: CR Transfer Inc.From: CR Transfer Inc.Jurisdiction:Costa Mesa Sanitary District (9)Jurisdiction:Costa Mesa Sanitary District Santa Ana Heights (11)Month/Year:Feb-15 Month/Year:Feb-15 Recycling Report Recycling Report Recycle Tons Recycle Tons Commodity Percentage Recycled Commodity Percentage Recycled Paper(cardboard+mixed paper)9.50%285.48 Green Waste 20.50%36.17 Plastics(mixed plastic+HDPE+PET)2.73%82.04 GW Fines 6.99%12.33 Metal(metal+aluminum+alum. Cans)3.91%117.50 Fines 9.99%17.62 Wood 2.92%87.75 Textiles 0.17%0.30 Greenwaste 34.77%1,044.87 Glass 1.89%3.33 Liquids 0.37%11.12 Paper 4.29%7.57 Fines 0.52%15.63 Plastic 5.58%9.84 Glass(bottles)2.03%61.00 Food Waste 0.00%- Concrete 0.33%9.92 Metal 1.20%2.12 Concrete 0.51%0.91 Wood 0.86%1.51 Totals 57.08%1,715.31 Totals 51.97%91.70 Total Tonnage 3,005.09 Total Tonnage 176.45 Recycled Tonnage 1,715.31 Recycled Tonnage 91.70 Landfill Tonnage 1,289.78 Landfill Tonnage 84.75 JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL 3,906.93 3,403.96 3,461.33 3,577.08 3,144.65 3,685.73 3,483.11 3,181.54 27,844.33 2,218.01 1,936.10 1,969.05 2,030.68 1,785.99 2,092.55 1,979.46 1,807.01 15,818.85 1,688.92 1,467.86 1,492.28 1,546.40 1,358.66 1,593.18 1,503.65 1,374.53 12,025.48 56.77%56.88%56.89%56.77%56.79%56.77%56.83%56.80%#DIV/0!#DIV/0!#DIV/0!#DIV/0!56.81%Recycled %CMSD WASTE DIVERSION REPORT FY 2014-2015 Total Tonnage Recycled Tonnage Landfilled Tonnage Costa Mesa Sanitary District ... an Independent Special District Ordinance Enforcement Officer Report - February 201 5 Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file the report. Item Number:2. ATTACHMENTS:Description Type Ordinance Enforcement Officer Report - February 201 5 Cover Memo Protecting our co mmunity's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum T o: Board of Directors Via : Scott Carroll , General Manager From: Edward Roberts, Code Enforcement Officer Date: March 10 , 201 5 Subject: Ordinance Enforcement Officer Report – February 201 5 This report summarizes major points for three ordinan ce enforcement topics covering scavenging, graffiti, and trash container e nforcement . CMS D Code Enforcement staff has continued focus ing e fforts on scavenger enforcement and the reduction of CMSD trash carts left in the public view . CMSD Code Enforcement has experienced an increase in the number of complaints fil ed regarding scavenging activity and trash carts left out in public view . In o rder to address resident concerns, t he CMSD Code Enforcement Officer has investigate d all complaints and adjusted his sche dule to accommodate request s for early morning or weekend enforcement. Included below are instances of scavenging and trash carts left out in public view that were detected while the Officer was investigating specific complaints. Scavenging Investigations: 1924 Anaheim Avenue - On 02 -02 -2015 (Monday) at approximately 1050 hours, Officer Roberts was patrolling the N/B lanes of the 1900 b lock of Anaheim Avenue. At that time, Officer Roberts contacted a male subject that he had observed looking through a CMSD trash cart. The male subject was cooperative and stated that the trash carts had been emptied prior to his arrival. The subject was a dvised regarding his attempted scavenging and made to understand that scavenging through CMSD trash carts is a prohibited activity. The male was sent on his way without further incident. Board of Directors March 10, 2015 483 Ogle Street -On 02 -10 -2015 (Tuesday) at approximately 0945 hours , Officer Roberts was on routine patrol in the 400 block of Ogle Street. At that time, Officer Roberts observed a male, who was later identified as Phillip Jaramillo riding on a bicycle. Officer Roberts noticed that Phillip had a nylon shopping bag with hi m that appeared to contain plastic bottles. Officer Roberts followed Phillip from a distance and noticed that he brought his bicycle to a stop in front of a residence located at 483 Ogle Street. While stopped in front of the residence, Officer Roberts ob served Phillip open the lid of a CMSD trash cart and begin to rummage through the interior. Upon observing a violation of the CMSD code, Officer Roberts approached Phillip in his marked CMSD vehicle and made contact with him . During the course of the conta ct Officer Roberts identified himself and advised Phillip that scavenging is a prohibited activity. Phillip stated that he understood the admonishment and returned all recyclable material in his possession to the CMSD trash cart. Phil lip was advised and sent on his way. 21 73 Santa Ana Avenue –On 02 -10 -2015 (Tuesday) at approximately 1040 hours, Officer Roberts observed two individuals walkin g through a residential area in the 2100 block of Santa Ana Avenue. As Officer Roberts drove closer to their locat ion, he noted that one of the individuals had a plastic shopping bag recyclable material in hand. Officer Roberts did not observe either of the subjects scavenging, however formed the opinion that a violation may have occurred due to one of the subjects po ssessing recyclable material also due to the presence of numerous CMSD carts in the vicinity. Officer Roberts decided to contact the two subjects in a consensual manner and advised them that scavenging activity is prohibited. The two subjects denied any w rong doing and stated they had obtained the items from a residence in which they had spent the night at. Due to no violation being observed in his presence, Officer Roberts advised the subjects and discontinued the contact. Officer Roberts will continue to monitor the Santa Ana Avenue corridor area for future violations. 1102 Mission Drive - On 02 -13 -2015 (Friday) at approximately 0915 hours, Officer Roberts was patrolling the W/B lanes of the 1100 block of Mission Drive. At that time, Officer Roberts obse rved a female scavenging through a trash cart that was located on the street directly in front of a residence located at 1102 Mission Drive. Officer Roberts contacted the female and identified himself as a CMSD employee . During the course of the contact, t he female identified herself verbally as Marisela Carrillo and stated that she was not in possession of valid identification. Officer Robert’s directed Marisela to return all material to the CMSD trash cart and counseled regarding her scavenging activity . Marisela’s name was entered into a log Board of Directors March 10, 2015 that Officer Roberts keeps with him and advised that she will be cited in the future if she is observed scavenging again. Marisela was sent on her way with a verbal admonishment. 656 Cove Street – On 02 -23 -2015 (M onday) at approximately 0815 hours, Officer Roberts was patrolling the 600 block of Cove Street, Officer Roberts observed a male subject walking with numerous trash bags in his hands. As Officer Roberts drove closer to the subject, he noted that the trash bags contained recyclable material. Officer Roberts contacted the male in front of 656 Cove Street and asked him if he was removing recyclable material from CMSD carts. The m ale subject admitted that he had been scavenging and was warned regarding his acti vity. The subject agreed to return all recyclable items not belonging to him to a nearby trash cart. Officer Roberts advised the subject that CMSD Code Enforcement conducts regular patrols in the area and if observed scavenging again, he will be subject t o immediate citation. The subject stated that he understood and left the scene without further incident. 275 Albert Place - On 02 -18 -2015 (Wednesday) at approximately 0820 hours, while patrolling the 200 block of Albert Place, Officer Roberts observed a m ale rummaging through CMSD trash carts at several locations alo ng Albert Place. Officer Roberts noted that the subject did not remove any items from the CMSD carts but continued lifting lids as he walked along the north curb line of Albert Place. Officer R oberts decided to contact the subject, who verbally identified him self as Fausto Buenrostro , in order to determine what he was doing. Fausto told Officer Roberts that he was looking through the CMSD trash carts for recyclable material . Officer Roberts ins tructed Fausto to stop scavenging and also advised him that he would be subject to citation if o bserved scavenging again. Fausto stated that he understood and was sent on his way . 257 Walnut Street - On 02 -24 -2015 (Tuesday) at approximately 0910 hours, Of ficer Roberts observed a lone male rummaging through CMSD trash carts in front of 257 Walnut Street. Officer Roberts contacted the male, who identified himself verbally as Teodoro Lopez. During the course of the contact , Teodoro stated that he did not ha ve any state issued identification on his person. Teodoro was advised in the Spanish language that scavenging is a prohibited activity and he would be subject to citation if observed scavenging again. Teodoro stated that he understood and left the area wit hout further incident. Officer Roberts has not been observed Teodoro in the area since the time/date of this contact. Board of Directors March 10, 2015 END OF SCAVENGING ENFORCEMENT REPORT Trash Container Enforcement : In the month of February , there w ere numerous customer complai nts reported to the District Headquarters rega rding trash carts in public view. The following is a list of locations where trash cart violations were found and addressed by the Courtesy Notice process. Total Cases: 20 The following locations received w a rnings: (1) A vocado Street - Storage of carts in public view. (1) Babb Street - Storage of carts in public view. (1) Cornell Drive - Storage of carts in public view. (1) El Camino Drive - Storage of carts in public view. (1) Elden Avenue - Storage of c arts in public view. (1) Governor Street - Storage of carts in public view. (1 ) Maple Street - Storage of carts in public view. (1) Mendoza Drive - Storage of carts in public view. (1 ) Meyer Place - Storage of carts in public view. (1) Milbro Street - Storage of carts in public view. (1) New Hampshire Drive - Storage of carts in public view. (1) Oak Street - Storage of carts in public view (1 ) Raleigh Avenue - Storage of cart s in public view. (1) Rural Lane - Storage of carts in public view. Board of Directors March 10, 2015 (1) Santa Ana Avenue - Storage of carts in public view (1 ) Senate Street - Storage of carts in public view. (1) Valencia Street - Storage of carts in public view (1 ) Wallace Avenue - Storage of carts in public view. (1) Whittier Avenue -Storage of carts in public view (1 ) Wilson Street - Storage of carts in the public view . END OF TRASH CONTAINER ENFORCEMENT REPORT No case s of graffiti on a trash carts were opened in the month of February . Costa Mesa Sanitary District Scavenging Report – February 2015 Locations: • 1924 Anaheim Ave • 483 Ogle St. • 2173 Santa Ana Ave. • 1102 Mission Drive • 656 Cove St. • 275 Albert Place • 257 Walnut Costa Mesa Sanitary District ... an Independent Special District Buy-Back Recycling Centers Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file the report. Item Number:4. ATTACHMENTS:Description Type Buy Back Recycling Centers Cover Memo Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum T o: Board of Directors Via: Scott Carroll, General Manager From: Elizabeth Pham , Management Assistant Date: March 10 , 201 5 Subject: Bu y -Back Recycling Centers Summary Staff was asked to report on buy -back recycling centers within proximity of the District. This report covers all recycling centers within 10 miles of the District. Staff Recommendation Staff recom mends that the Board of Directors receive and file th is report. Analysis Staff has found 68 recycling centers within 10 miles of the District. The closest recycling centers (within 3 miles) to the District are: OCC Recycling (ASOCC), rePLANET, and Beachsi de Recycling. Recycling centers are not owned or operated by the State of California. All recycling center days and hours of operation are determined by the recycling center operator and must be posted at the center. Centers are required to be open a minim um of 30 hours per week, at least five days a week, and at least one weekend day. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 2.0, Solid Waste, which states: “Objective: Our objective is to manag e the collection and recycling of residential trash in the most economical and environmentally friendly way.” Board of Directors Study Session March 10 , 201 5 Page 2 of 2 “Strategy : We will do this by looking for ways to improve efficiencies, achieve high customer satisfaction, and considering prudent new recycling methods.” Legal Review Not applicable Environmental Review Recycling centers are not a disturbance of the environment similar t o grading or construction and do not constitute a project under CEQA or the District’s CEQA Guidelines. Recycling centers work as a group for the betterment of the environment. Financial Review No financial impact. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 10 , 201 5 , Board of Directors Study Session meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to re port back with more information Attachments a) List of Recycling Centers Recycling Location Name Address City Telephone Distance ASOCC Recycling Center 2701 Fairview Rd Costa Mesa (714) 432-5131 1.99 miles rePLANET LLC 2555 EASTBLUFF DR NEWPORT BEACH (951) 520-1700 2.55 miles Beachside Recycling Center 8601 Edison Ave Huntington Beach (714) 969-7638 3.39 miles rePLANET LLC 2741 W MACARTHUR BLVD SANTA ANA (951) 520-1700 3.79 miles rePLANET LLC 18405 BROOKHURST FOUNTAIN VALLEY (951) 520-1700 3.93 miles SolCal 32 3301 S BRISTOL ST SANTA ANA (323) 662-2904 4.35 miles rePLANET LLC 19640 BEACH BLVD HUNTINGTON BEACH (951) 520-1700 4.5 miles rePLANET LLC 4541 CAMPUS DR IRVINE (951) 520-1700 5.05 miles La Villita Recycling Center 2311 S Bristol St Santa Ana (714) 547-4621 5.14 miles Allan Co 2540 S Main St Santa Ana (714) 641-8891 5.33 miles rePLANET LLC 17605 HARVARD AVE IRVINE (951) 520-1700 5.38 miles Money for Cans 2610F W Edinger Ave Santa Ana (949) 351-3037 5.54 miles rePLANET LLC 19081 GOLDENWEST ST HUNTINGTON BEACH (951) 520-1700 5.76 miles Legos Recycling 1308 W Edinger Ave Santa Ana 5.8 miles Juan Bautista Recycling 914 W Edinger Ave Santa Ana (714) 319-2769 5.99 miles PCFC Recycling 16125 1/2 BROOKHURST ST FOUNTAIN VALLEY (714) 264-7847 5.99 miles Huntington Beach Recycling 7632 Slater Ave Huntington Beach (714) 841-4885 6.08 miles Garcia Recycling Center Metals 2429 W McFadden Ave Santa Ana (714) 646-4266 6.11 miles Cans For Coins 2521 W McFadden Ave Santa Ana (714) 444-2077 6.16 miles La Altenita Recycling Center 3700 W McFadden Ave Santa Ana 6.21 miles Bautista Recycling 1106 S BRISTOL ST SANTA ANA (714) 943-9120 6.27 miles Jimenez Recycling 1619 S Standard St Santa Ana (714) 966-5251 6.43 miles rePLANET LLC 15471 BROOKHURST WESTMINSTER (951) 520-1700 6.63 miles B Recycling 200 S Harbor Blvd Santa Ana (714) 943-9120 6.67 miles Trojan Recycling Center 200 S HARBOR BLVD SANTA ANA (714) 345-4234 6.67 miles Waste Management of Orange County 16122 Construction Cir E Irvine (714) 956-6222 6.68 miles GDL Recycling Center 2655 W 1ST ST SANTA ANA (714) 724-7346 6.82 miles O C Recycling 1601 E Edinger Ave Santa Ana (562) 254-5212 6.86 miles Bautista Recycling 1200 S Standard Ave Santa Ana (714) 943-9120 6.94 miles Camerino Navarro Recycling 1819 W 1st St Santa Ana (714) 360-3159 6.95 miles Orange Recycling Center 1317 W Walnut St Santa Ana (714) 724-7346 6.99 miles WTB Electronics Recycling Import and Export 302 N Townsend St Santa Ana (714) 973-7869 7.02 miles Garcia Recycling Center Metals 631 S Main St Santa Ana (714) 554-3213 7.06 miles A M Metals Co 2301 W 5th St Santa Ana (714) 547-6507 7.1 miles SA Recycling 2002 W 5th St Santa Ana (714) 667-7898 7.14 miles Crystal Recycling 2223 W 5th St Santa Ana 7.16 miles Reliance Metal Recycling 711 N Fairview St Santa Ana (714) 835-2345 7.22 miles GDL Recycling Center #2 707 N BRISTOL ST SANTA ANA (714) 724-7346 7.45 miles Global Metal Recycling Inc 1011 E Pine St Santa Ana (714) 542-9530 7.6 miles Westminster Recycling Center 15358 Beach Blvd Westminster (714) 766-0767 7.62 miles Pentum Group 15333 Culver Dr Ste 800 Irvine (909) 981-8978 7.71 miles A+ Recycling 8121 Bolsa Ave Midway City (714) 713-7313 7.79 miles Men Cal 941 E 4th St Santa Ana (714) 547-7585 7.82 miles Bruce Metal and Salvage Inc 920 E 6th St Santa Ana (714) 543-1300 7.89 miles Evolution Recycling #5 1022-1112 WALNUT AVE TUSTIN (323) 267-0224 7.89 miles Garcia Recycling Center Metals 13862 Seaboard Cir Garden Grove (714) 554-3213 7.89 miles rePLANET LLC 6601 QUAIL HILL PKWY IRVINE (877) 737-5263 8.11 miles Nexcycle 15300 Goldenwest St Westminster (909) 796-2210 8.13 miles SA Recycling 1016 N SANTIAGO ST SANTA ANA (714) 667-7898 8.13 miles Evolution Recycling #4 420 W 17th St Santa Ana (323) 267-0224 8.22 miles rePLANET LLC 5241 WARNER AVE HUNTINGTON BEACH (951) 520-1700 8.41 miles rePLANET LLC 8522 WESTMINSTER BLVD WESTMINSTER (877) 737-5263 8.43 miles rePLANET LLC 14440 CULVER DR IRVINE (951) 520-1700 8.66 miles A + Recycling #5 13075 Euclid St Garden Grove (714) 376-4855 8.71 miles PRC Collection Inc 12891 HARBOR BLVD GARDEN GROVE (626) 260-7411 8.85 miles A+ Recycling #8A 13231 Garden Grove Blvd Garden Grove (714) 376-4855 8.86 miles A+ Recycling #6 9961 Garden Grove Blvd Garden Grove (714) 376-4855 9.07 miles Bionet Inc 5402 Walnut Ave Irvine (909) 981-8978 9.11 miles rePLANET LLC 13270 NEWPORT AVE TUSTIN (951) 520-1700 9.14 miles rePLANET LLC 6755 WESTMINSTER BLVD WESTMINSTER (951) 520-1700 9.37 miles Universal Recycling Inc 12435 HASTER ST GARDEN GROVE (714) 315-0095 9.38 miles Laur Metals Co 8911 Garden Grove Blvd Garden Grove (213) 240-5054 9.41 miles rePLANET LLC 2360 N TUSTIN AVE SANTA ANA (877) 737-5263 9.6 miles Juana Reyes Recycling 12048 WEST ST GARDEN GROVE (714) 269-0411 9.71 miles Cash 4 Cans 7498 GARDEN GROVE BLVD WESTMINSTER (714) 903-9540 9.84 miles rePLANET LLC 3931 IRVINE BLVD IRVINE (877) 737-5263 9.99 miles The Cans Company 9750 Chapman Ave Garden Grove (714) 402-5580 9.99 miles Costa Mesa Sanitary District ... an Independent Special District Proposed Ordinance Requiring All Private Sewer Pump Stations Install Monitoring and Alarm Systems Recommendation/Notes: Recommendation: That the Board of Directors provid e feedback on drafting such an ordinance. Item Number:6. ATTACHMENTS:Description Type Proposed Ordinance 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: March 10, 2015 Subject: Proposed Ordinance Requiring All Private S ewer Pump Stations Install Monitoring and Alarm Systems Summary After the District dealt with a private sanitary se wer overflow (SSO) from a private pump station, staff learned that the station did not hav e a monitoring and alarm system that warns property managers of high water in the wet we ll. If such a system was installed and working properly the private SSO may have been avoi ded. The Board wants to look into the possibility of every private sewer pump station within the District service area be required to install a monitoring and alarm system d evice. Staff Recommendation That the Board of Directors provide feedback for dr afting such an ordinance. Analysis A monitoring and alarm system device, otherwise kno wn as supervisory control and data acquisition (SCADA), is an effective device to moni tor and warn pump station operators when there is high water in the wet well or when the pum ps stop due to power outages. Receiving notification from SCADA, via emails or cell phone t exts, gives station operators/maintenance technicians ample time to respond and restore the p umps to normal working conditions Board of Directors March 10, 2015 Page 2 of 3 before an SSO occurs. The District has a SCADA sys tem installed at every one of the 20 pump stations owned and operated by the District. Making it lawful to require private pump station ow ners install SCADA will meet the District’s mission of “protecting our community’s health and t he environment” and it will meet our vision by “promoting a sustainable environment that is fre e from sewer pollution.” It will also reduce the number of times staff has to respond to private SSOs caused by private pump stations. However, making it lawful to require private pump s tation owners install SCADA means owners will inherit an unplanned expenditure of nea rly $4,000 for acquiring and installing the device and then there is an annual monitoring cost of $350. There is approximately 30 private sewer pump stations located within the Dist rict service area. The following are some issues to consider and discu ss at the study session regarding this issue. • Property owner can’t afford a SCADA system. • After the ordinance is passed, will there be a gra ce period for complying with the law? • What kind and how much public outreach should be p erformed? • Will District staff be inspecting private pump sta tions to ensure compliance? Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 5.0, Administrative Management, which states: Objective: To create, maintain and implement policies and proc edures to ensure sound management of the District. Strategy: We will conduct periodic reviews, refine and implem ent policies and procedures, and assure the General Manager has the direction an d tools necessary for successful District operations. Legal Review Not applicable at this time, but District Counsel w ill review and approve the ordinance before it is presented to the Board for approval co nsideration. Environmental Review Should the District adopt a policy requiring owners of private pump stations to install remote alarm systems to improve emergency response, the changes to the pump stations will be minor and will consist of adding the alarm reporting systems. Minor alterations to existing facilities is categorically exempt under t he California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq .) under Section 15301 as a “Class 1” project as stated under 15301 Class 1 consists of the operation, repair, Board of Directors March 10, 2015 Page 3 of 3 maintenance, permitting, leasing, licensing, or min or alteration of existing public or private structures, facilities =15301(b) “Existing facilities of both investor and publicly-owned utilities used to provide electric p ower, natural gas, sewerage, or other public utility services“. Financial Review There are no financial impacts to the District for adopting an ordinance that requires private pump station owners to install a SCADA syst em. There may be some costs for enforcement which are not known at this time. Public Notice Process Copies of this report are on file and will be inclu ded with the entire agenda packet for the March 10, 2015 Board of Directors study session at District headquarters and on District’s website. Alternative Actions 1. Do not draft an ordinance for approval considera tion. 2. Direct staff to report back with more informatio n. Reviewed by: Wendy Davis Finance Manager Costa Mesa Sanitary District ... an Independent Special District Affordable Care Act (ACA) "Cadillac Tax" Recommendation/Notes: Recommendation: That the Board of Directors receiv e and file the report. Item Number:7. ATTACHMENTS:Description Type ACA Cadillac Tax Cover Memo Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors Via : Scott Carroll, General Manager From: Denise Martinez, Interim Administrative Services Manager Date: March 10 , 2015 Subject: Affordable Care Act (ACA) “Cadillac Tax” Summary The Affordable Care Act (ACA) was implemented to reform the U.S. health care system by provid ing more Americans with access to affordable health insurance, improving the quality of health care and health insurance, regulating the health insurance industry, and reducing health care spending. As part of the ACA, there are a number of provisions that employers must comply with. One in particular is the “Cadillac Tax”. In 2018, all employers, including the District, will be subject to this excise tax, which is being implemented to help finance the expansion of health coverage. Staff Recommendation Staff recommends the Board receive and file this report . Analysis The “Cadillac Tax” will apply to “high -cost ” medical plans provided through employer -sponsored group health plan s . “High -cost” medical plans are those with annual premiums equal to or greater than $10,200 for individual coverage and $27,500 for family coverage (employee plus one or more dependents). The annual premium amounts include the total for both employer and e mployee paid premium costs. The tax is 40% of the costs that exceed the “high -cost” thresholds (See Attachment A “Cadillac Tax Fact Sheet” for additional information). Board of Directors March 10 , 2015 Page 2 of 3 The District’s medical plans are offered through CalPERS. Attachment B (“2018 Cadil lac Tax Estimate”) lists all of the available plans and the annual employer/employee premium costs for each one. According to this information, the Anthem Traditional HMO plans are the highest cost individual and family plans offered by the District; yet neither of these plans meets the “high -cost” medical plan thresholds. For forecasting purposes, the document also identifies how much the annual premium costs must increase for each District plan to meet the “high -cost” thresholds. For the highest cost Anthem Traditional HMO plans, individual and family premiums must increase by ~5% and 6% annually and respectively over the next three years (14% & 19%) to be considered “high cost”. With the rising healthcare rates, these types of increases are certainly possible. However, it is important to note that cost management is a top priority at CalPERS. The agency is continuously monitoring its medical plans for “Cadillac Tax ” applicability and has already implemented various mitigati o n steps. What is CalPERS doing regarding the Cadillac T ax? The excise tax on the value of health plans exceeding a certain threshold (so -called Cadillac plans) is not in effect until 2018. It is too early to tell where our plans will fall in terms of the threshol d, or whether future changes will be made to the law. One very preliminary estimate showed that one of our out -of -state plans and one of our PPO plans may be impacted. In the meantime, CalPERS has been working aggressively to keep our rates down by: • Increasing competition in the health plan procurement process • Implementing risk adjustment across all health plans • Implementing the Dependent Eligibility Verification project to verify the eligibility of all dependents receiving CalPERS health benefits • Introducing benefit design changes, such as High Performance Generic Step Therapy being implemented by CVS/Caremark • Continuing cost -saving features such as reference pricing, member -pays -the difference, and our integrated health care program 1 Therefore, no action is necessary of the District at this time, except for continuing to monitor ACA legislative impacts and CalPERS developments. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 5 .0 , Administrative Management, which states: 1 http://www.calpers.ca.gov/eip -docs/about/video -web -center/videos/health -benefits/2015 -plan -questions -answers.pdf Board of Directors March 10 , 2015 Page 3 of 3 “Objective: To create, maintain and implement policies and procedures to ensure sound management of the District. Strategy: We will conduct periodic reviews, refine and implement policies and procedures, and a ssure the General Manager has the direction and tools necessary for successful District operations.” Legal Review Not applicable Environmental Review The implementation of the Cadillac Tax in 2018 is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 10 , 2015 Bo ard of Directors study session are at District headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff. Attachments A: Cadillac Tax Fact Sheet B: 2018 Cadillac Tax Estimate 1 873835 c 01/15 Cadilla C Tax F a CT SHEET i NFORME d ON REFORM Overview The Cadillac Tax is an excise tax scheduled to take effect in 2018 to reduce health care usage and costs by encouraging employers to offer plans that are cost-effective and engage employees in sharing in the cost of care. It is a 40% tax on employers that provide high-cost health benefits to their employees.This fact sheet is based on Cigna’s current understanding of the Cadillac Tax. Final regulations have not been issued, and we expect further guidance before the tax is assessed.CADILLAC TAX What it is/fee duration Permanent annual tax beginning in 2018 on employers that provide high-cost benefits through an employer-sponsored group health plan.Purpose • To generate $80 billion over the next 10 years to help finance the expansion of health coverage.Amount • The tax is 40% of the cost of plans that exceed predetermined threshold amounts.• Cost includes the total premiums paid by both employers and employees, but not cost-sharing amounts such as deductibles and copays when care is received.• For planning purposes, the thresholds for high-cost plans are $10,200 for individual coverage, and $27,500 for family coverage.• These thresholds will be updated for 2018 when final regulations are issued and indexed for inflation in future years.• The thresholds will also be adjusted for: - High-risk professions such as law enforcement and construction. - Group demographics including age and gender.• For pre-65 retirees and individuals in high-risk professions, the threshold amounts are $11,850 for individual coverage and $30,950 for family coverage.Who calculates and pays Insured: Employers calculate and insurers pay Self-funded: Employers calculate and pay CADILLAC TAX How a plan’s cost is determined The tax is based on the total cost of each employee’s coverage above the threshold amount.The cost includes premiums paid by employers and employees plus:• Employer and employee contributions to Health Care Flexible Spending Accounts, Health Reimbursement Accounts and Health Savings Accounts.• The cost of Employee Assistance Plans with counseling benefits, onsite medical clinics and wellness programs.How the tax will be paid Forms and instructions for paying the tax are not yet available.Tax implications Not tax deductible.Business affected Insured and self-funded group health plans.Business excluded • U.S.-issued expatriate plans for most categories of expatriates • Stand-alone dental • Stand-alone vision • Accident coverage • Disability benefits • Long-term care insurance How it works: Examples based on current threshold amounts Self-only coverage A $12,000 individual plan would pay an excise tax of $720 per covered employee:$12,000 - $10,200 = $1,800 above the $10,200 threshold $1,800 x 40% = $720 Family coverage A $32,000 family plan would pay an excise tax of $1,800 per covered employee:$32,000 - $27,500 = $4,500 above the $27,500 threshold $4,500 x 40% = $1,800 These charts show how the tax increases as the plan’s cost increases.Self-only coverage Plan Cost $11,000 $12,000 $13,000 $14,000 $15,000 Tax $320 $720 $1,120 $1,520 $1,920 Family coverage Plan Cost $28,000 $30,000 $32,000 $34,000 $36,000 Tax $200 $1,000 $1,800 $2,600 $3,400 “Cigna” and the “Tree of Life” logo are registered service marks, and “Together, all the way.” is a service mark, of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its operating subsidiaries. All products and services are provided by or through such operating subsidiaries, including Connecticut General Life Insurance Company and Cigna Health and Life Insurance Company, and not by Cigna Corporation. All models are used for illustrative purposes only.873835 c 01/15 © 2015 Cigna. Some content provided under license. 2018 CADILLAC TAX ESTIMATE Maximum Employee Only 10,200.00 $ Maximum Family Plan 27,500.00 $ Plan Description Benefit Tier 2015 Annual Premiums Would Tax Apply Today?%  for Tax = Avg Per Year Anthem Traditional HMO Employee Only 8,917.44 $ NoTax 14%5%PERS Care Employee Only 7,887.84 $ NoTax 29%10%Anthem Select HMO Employee Only 7,847.64 $ NoTax 30%10%Blue Shield Access +Employee Only 7,183.92 $ NoTax 42%14%PERS Choice Employee Only 7,132.80 $ NoTax 43%14%PERS Select Employee Only 7,026.96 $ NoTax 45%15%Health Net SmartCare Employee Only 6,958.56 $ NoTax 47%16%Kaiser Employee Only 6,957.60 $ NoTax 47%16%Sharp Employee Only 6,774.84 $ NoTax 51%17%Blue Shield NetValue Employee Only 6,733.08 $ NoTax 51%17%Health Net Salud Y Mas Employee Only 6,247.08 $ NoTax 63%21%UnitedHealthcare Employee Only 5,389.20 $ NoTax 89%30%Anthem Traditional HMO Employee + 2 or more 23,185.32 $ NoTax 19%6%PERS Care Employee + 2 or more 20,508.36 $ NoTax 34%11%Anthem Select HMO Employee + 2 or more 20,403.84 $ NoTax 35%12%Blue Shield Access +Employee + 2 or more 18,678.24 $ NoTax 47%16%PERS Choice Employee + 2 or more 18,545.28 $ NoTax 48%16%PERS Select Employee + 2 or more 18,270.12 $ NoTax 51%17%Health Net SmartCare Employee + 2 or more 18,092.28 $ NoTax 52%17%Kaiser Employee + 2 or more 18,089.76 $ NoTax 52%17%Anthem Traditional HMO Employee + 1 17,834.88 $ NoTax 54%18%Sharp Employee + 2 or more 17,614.56 $ NoTax 56%19%Blue Shield NetValue Employee + 2 or more 17,505.96 $ NoTax 57%19%Health Net Salud Y Mas Employee + 2 or more 16,242.36 $ NoTax 69%23%PERS Care Employee + 1 15,775.68 $ NoTax 74%25%Anthem Select HMO Employee + 1 15,695.28 $ NoTax 75%25%Blue Shield Access +Employee + 1 14,367.84 $ NoTax 91%30%PERS Choice Employee + 1 14,265.60 $ NoTax 93%31%PERS Select Employee + 1 14,053.92 $ NoTax 96%32%UnitedHealthcare Employee + 2 or more 14,011.92 $ NoTax 96%32%Health Net SmartCare Employee + 1 13,917.12 $ NoTax 98%33%Kaiser Employee + 1 13,915.20 $ NoTax 98%33%Sharp Employee + 1 13,549.68 $ NoTax 103%34%Blue Shield NetValue Employee + 1 13,466.16 $ NoTax 104%35%Health Net Salud Y Mas Employee + 1 12,494.16 $ NoTax 120%40%UnitedHealthcare Employee + 1 10,778.40 $ NoTax 155%52%*EAP costs are equal to $460 annually for all eligible employees (full-time).February 23, 2015