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2016_06_23_board 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. Speakers on agenda items should identify themselves to the Deputy 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. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to three minutes or as decided 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 distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 628 W. 19th Street, Costa Mesa, California. The Deputy Clerk of the District may be 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 35.102.35.104 ADA Title II). BOARD OF DIRECTORS REGULAR MEETING 628 W. 19TH STREET, COSTA MESA, CA 92627 Thursday, June 23, 2016 5:30 PM 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 determination 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 Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. VII.PUBLIC COMMENTS This time has been set aside for persons in the audience 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 Directors 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 considered to be routine and may be acted upon by one motion after public comment has been 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 calendar as a whole. 1.Board of Directors Study Session Meeting Minutes of May 10, 2016 Recommendation: That the Board of Directors approve and file. 2.Board of Directors Special Meeting Minutes of May 13, 2016 Recommendation: That the Board of Directors approve and file. 3.Board of Directors Special Meeting of May 18, 2016 Recommendation: That the Board of Directors approve and file. 4.Board of Directors Regular Meeting Minutes of May 26, 2016 Recommendation: That the Board of Directors approve and file. 5.Occupancy Report and Payment to CR&R Environmental Services Recommendation: That the Board of Directors: 1. Accepts the occupancy count as presented using 22,390 as the correct number of active units. 2. Directs staff to prepare a warrant to CR&R Environmental Services for May 2016 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $219,319.01 to be ratified in the June 2016 warrant list. 6.Contract Payment to CR Transfer for Recycling & Disposal Services Recommendation: That the Board of Directors directs staff to prepare a warrant to CR Transfer in the amount of $163,924.19 for May 2016 recycling and disposal services to be ratified in the June 2016 warrant register. 7.Adoption of Warrant Resolution No. CMSD 2016-12 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2016-12 approving District warrants for the Month of May 2016 in the amount of $3,611,410.27. 8.Payroll Transparency Disclosure for May 2016 Recommendation: That the Board of Directors approve and file. 9.Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the following: a. Directors' compensation for the month of May 2016; and b. Directors' reimbursement of expenses for the month of May 2016. 10.Sewer Lateral Assistance Program (SLAP) Update Recommendation: That the Board of Directors approve and file. 11.Investment Report for the Month of May 2016 Recommendation: That the Board of Directors approves the Investment Report for the month of May 2016. 12.Resolution No. 2016-885 - Board of Directors Health Insurance Recommendation: That the Board of Directors adopt Resolution No. 2016- 885 terminating non-CalPERS members health benefits. 13.Resolution No. 2016-886 Ordering that Publication of Ordinance No. 114 Adopting a Revised Operations Code has Occurred Recommendation: That the Board of Directors adopt Resolution No. 2016- 886 ordering that publication of Ordinance No. 114 adopting a revised Operations Code has occurred. 14.Auditor Communication Letter Audit FY 2015-16 Recommendation: That the Board of Directors approve and file the report. ------------------------------- END OF CONSENT CALENDAR------------------------------- IX.PUBLIC HEARINGS 15.Consideration of Solid Waste Annual Charges for FY 2016 -17 to be Collected with the General Taxes A. Presentation of Report B. Open Public Hearing C. Close Public Hearing D. Recommendation: That the Board of Directors Adopt Resolution No. 2016-887 confirming the solid waste annual charges for FY 2016-17 to be collected with the general taxes and direct the District Clerk to File with County Auditor. 16.Consideration of Wastewater Annual Charges for FY 2016-17 to be Collected with the General Taxes A. Presentation of Report B. Open Public Hearing C. Close Public Hearing D. Recommendation: That the Board of Directors Adopts Resolution No. 2016-888 confirming the wastewater annual charges for FY 2016-17 to be collected with the general taxes and direct the District Clerk to File with County Auditor. 17.Adoption of Ordinance No. 115 Confirming Annual Charges for Solid Waste and Wastewater for FY 2016-17 Recommendation: That the Board of Directors adopt Ordinance No. 115 confirming annual charges for Solid Waste and Wastewater for FY 2016-17. X.GENERAL MANAGER 18.CMSD – Contribution Program Application – Estancia Boosters Stadium Banner Recommendation: That the Board of Directors accepts the application from the Estancia High School Football Program and approve a monetary contribution of $500 for a stadium banner. 19.Budget Unappropriation - Westside Pump Station Abandonment Project #101 Recommendation: That the Board of Directors approves the unappropriation of funds as follows: Account Account Number Increase Decrease Net Position (RE)20-200000-2990 $3,260,000 Westside PS Abandonment #101 20-200000-2990 $3,260,000 20.California Special Districts Association 2016 Board Elections Recommendation: That the Board of Directors elect a representative to the CSDA Board of Directors Southern Network Seat B and authorize President Scheafer to vote on the District's behalf. 21.Joint Study with Mesa Water District - Optimum Government Structure Recommendation: That the Board of Directors give staff direction. XI.ENGINEER'S REPORTS 22.Project Status Report Recommendation: That the Board of Directors receive and file the report. 23.Conflict of Interest Report Nothing to report at this time. 24.APN 415-102-17 (Parcel North of 1580-1590 Scenic Avenue) - Request for Vacation/Abandonment of CMSD Sewer and Easement Recommendation: That the Board of Directors: 1. Accept Option 2, as agreed to by the buyer/developer, as the preferred alternative. 2. Approve and record the quitclaim deed with the legal description and map as attachments. 3. Require the buyer/developer to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement. 4. Discuss whether requiring compensation from the property owner for the quitclaim is appropriate. 25.Adams Pump Station Electrical Improvements Recommendation: That the Board of Directors: 1. Approve an appropriation from New Position in the amount of $116,000 to fund the project. 2. Approve in concept the points described in the staff report, which have been approved by the property owner of 2043 Calvert Avenue, Cesar Ibarra. 3. Direct the General Manager to complete the project as shown in the project budget including bringing back an easement deed, legal description, and map, signed by Mr. Ibarra for acceptance and recording by the Board of Directors. XII.TREASURER'S REPORTS 26.Statement of Investment Policy for Fiscal Year 2016-17 & Adoption of Resolution No. 2016-889 Recommendation: That the Board of Directors adopt Resolution No. 2016- 889 approving the Policy and delegating the investment function to the District Treasurer for the 2016-17 fiscal year. XIII.ATTORNEY'S REPORTS XIV.LOCAL MEETINGS In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem 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 the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation.) A. Orange County Sanitation District (OCSD) - (Director Ferryman) Recommendation: That the Board of Directors accepts oral report. B.Santa Ana River Flood Protection Agency (SARFPA) - (Vice President Perry) Recommendation: That the Board of Directors accepts oral report. C.Independent Special Districts of Orange County (ISDOC) - (President Scheafer) Recommendation: That the Board of Directors accepts oral report. D.California Special Districts Association (CSDA) - (Assistant Secretary Schafer) Recommendation: That the Board of Directors accepts oral report. E.Special District Risk Management Authority (SDRMA) - (President Scheafer) Recommendation: That the Board of Directors accepts oral report. F.Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Recommendation: That the Board of Directors accepts oral report. XV.OLD BUSINESS XVI.NEW BUSINESS XVII.ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVIII.ADJOURN TO CLOSED SESSION 27.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Government Code Section 54956.9 (d)(1)): 1. Costa Mesa Sanitary District v. Santa Ana Regional Water Quality Control Board (OC Sup Ct #30-2016-0084260 CU-CM-CJC) XIX.RECONVENE TO OPEN SESSION XX.ADJOURNMENT THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON JULY 28, 2016 AT 5:30 P.M. IN THE DISTRICTS BOARD ROOM, 628 W. 19TH STREET UPCOMING CMSD AND COMMUNITY EVENTS AND ACTIVITIES •The 52nd Annual Newport Beach Art Exhibition, Saturday, June 18, 2016 from 1:00 pm to 6:00 pm at the Newport Beach Civic Center, 100 Civic Center Drive. •First Friday Roadshow, Friday, July 1, 2016. Costa Mesa City Hall Parking Lot, 77 Fair Drive. •4th of July Holiday, CMSD Headquarters and Corporate Yard will be closed in observance of the holiday. •Large Item Pick UP - Contact CR&R at (949) 646-4617 to schedule a free large item pick up (up to 10 items per service call, three times per year). •Free Door-to-Door Household Hazardous Waste Collection Program for Seniors and Immobile Residents – Contact CR&R Environmental Services at (949) 646-4617 to schedule a free collection. Costa Mesa Sanitary District ... an Independent Special District Board of Directors Study Session Meeting Minutes of May 10, 2016 Item Number:1. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Board of Directors Study Session Meeting Minutes of May 10, 2016 Backup Material COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION MAY 10, 2016 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in study session on May 10, 2016 at 9:30 A.M. at 628 W. 19th Street, Costa Mesa, CA 92627. ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: Michael Scheafer, Arthur Perry, Robert Ooten, Arlene Schafer James Ferryman STAFF PRESENT: Scott Carroll, General Manager; Robin Hamers, District Engineer; Noelani Middenway, District Clerk; Wendy Davis, Finance Manager; Ed Roberts, Code Enforcement Officer. OTHERS PRESENT: Joe Jenkins, EEC Environmental; Dean Ruffridge, CR&R; Judith Marquez, Innovare Environmental; Lawrence Jones, CR&R; Jim Mosher, resident. PUBLIC COMMENTS President Scheafer opened public comments. Jim Mosher, a member of the public, initiated a brief discussion regarding the District’s local hazard mitigation plan. Scott Carroll, General Manager, noted that the regional Water Emergency Response Organization of Orange County (WEROC) developed a local hazard mitigation plan that covers the District. Seeing no other requests for public commentary, President Scheafer closed public comments. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 10, 2016 ______________________________________________________________________ ITEMS OF STUDY 1. Organics Recycling Tonnages – FY2015-16 Recommendation: That the Board of Directors receive and file the report. Mr. Carroll provided report details. There were no questions or comments and the Board of Directors received and filed the report. 2. Code Enforcement Officer Report – April 2016 Recommendation: That the Board of Directors receive and file the report. Ed Roberts, Code Enforcement Officer, provided report details. He noted that there were 9 scavenging investigations and 79 cases of trash carts in public view in April 2016. Discussion followed regarding early morning scavenging investigations and the prevalence of trash carts in public view. There were no additional questions or comments and the Board of Directors received and filed the report. 3. Grease Control Device Installation Assistance Program Recommendation: That the Board of Directors give staff direction to bring back more information about the proposed program. Mr. Carroll provided an overview of the District’s strategic goal to reduce hot spots. Joe Jenkins of EEC Environmental presented report details regarding a proposed grease interceptor loan and grant program to reduce hot spots that result from local food service establishments. Discussion followed regarding other agencies that have similar assistance programs and concerns about the program’s financial feasibility. Judith Marquez of Innovare Environmental provided comments and suggestions regarding the grease interceptor program. Discussion followed regarding the criteria, indirect costs of the program, the establishment of a pilot program, and the possibility of partnering with other local agencies. The Board of Directors directed staff to bring back a proposal of a $50,000 pilot program and to identify specific hot spots and restaurants that the program would focus on. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 10, 2016 ______________________________________________________________________ There were no additional questions or comments. 4. OC Waste & Recycling Coordinator’s Meeting – Update Recommendation: That the Board of Directors receive and file the report. Mr. Carroll provided an overview of the OC Waste & Recycling Coordinator’s Meeting on April 21, 2016. There were no additional questions or comments and the Board of Directors received and filed the report. ORAL COMMUNICATIONS President Scheafer moved up oral communications and requested that CR&R address a constituent concern. 5. Ad Hoc Committee – Administrative Policies, Operations Code and Employee Handbook Recommendation: That the Board of Directors receives the report and direct staff to report back with recommended updated policies and codes for Board approval consideration on May 26, 2016. Mr. Carroll presented report details. He noted that Vice President Perry and Assistant Secretary Schafer are on the Ad Hoc Committee to review and update the District’s administrative policies, Operations Code, and Employee Handbook. Discussion followed regarding the District’s petty cash fund and procedures, term limits for board officers, procedures for placing items on meeting agendas, timecard procedures, proclamations, organizational chart, drug testing policy, CCTV viewing certifications and pay, and employee insurance policies. The Board of Directors directed staff to bring the updated policies and codes to the May 26, 2016 Board meeting for approval in the form of an ordinance. There were no additional questions or comments. President Scheafer adjourned the meeting to a brief recess at 10:58 a.m. President Scheafer reconvened the meeting at 11:02 a.m. PUBLIC COMMENTS President Scheafer opened public comments. Ms. Marquez requested information regarding the District’s plan for a Supplemental COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 10, 2016 ______________________________________________________________________ Environmental Project (SEP) program. President Scheafer closed public comments. 6. Project #101 Westside Pump Station Abandonment Project – Oral Report Recommendation: That the Board of Directors give staff direction. Mr. Carroll provided updates regarding the status of Project #101. Discussion followed regarding the cost of Project #101 and the Orange County Sanitation District’s upcoming review of the project. The Board of Directors directed staff to bring this item to the June 14, 2016 Study Session. There were no additional questions or comments. 7. Appropriation of $500,000 from Project #101 – Oral Report Recommendation: That the Board of Directors direct staff to place this item on May 26, 2016 Board meeting agenda for consideration. Wendy Davis, Finance Manager, presented a proposal to appropriate $500,000 from Project #101 to start funding the repair of Grade 5 sewer sections. Discussion followed regarding alternatives to funding the repair of Grade 5 sewer sections through Project #101. The Board of Directors directed staff to place this item on the May 26, 2016 Board meeting agenda. There were no additional questions or comments. 8. Future Study Session Items Recommendation: That the Board of Directors provide staff with direction on items to be placed on future study session agendas. Vice President Perry requested that an item be placed on the June 14, 2016 Study Session agenda about tours of CR&R’s Anaerobic Digestion Facility. President Scheafer requested that an item be placed on the June 14, 2016 Study Session agenda about the District’s preliminary discussions in response to Mesa Water District’s letter. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD MAY 10, 2016 ______________________________________________________________________ ADJOURNMENT There being no further business to come before the Board, President Scheafer adjourned the meeting at 11:35 A.M. _________________________ _________________________ Robert Ooten Michael Scheafer Secretary President Costa Mesa Sanitary District ... an Independent Special District Board of Directors Special Meeting Minutes of May 13, 2016 Item Number:2. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Board of Directors Special Meeting Minutes of May 13, 2016 Cover Memo COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING MAY 13, 2016 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on May 13, 2016 at 10:00 A.M. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: Michael Scheafer, Arthur Perry, Robert Ooten, James Ferryman Arlene Schafer STAFF PRESENT: Scott Carroll, General Manager; Alan Burns, District Counsel; Noelani Middenway, District Clerk OTHERS PRESENT: Jack Faris, Voit Real Estate PUBLIC COMMENTS President Scheafer opened public comments. Seeing no one, President Scheafer closed public comments. ADJOURN TO CLOSED SESSION President Scheafer adjourned to closed session at 10:00 A.M. to confer with real property negotiators for the purchase of 628 W. 19th Street, Costa Mesa. Conference with Real Property Negotiators Property: 628 W. 19th Street, Costa Mesa Agency Negotiators: Scott Carroll and Jack Faris Negotiating parties: 1. Charles Company COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 20, 2016 ________________________________________________________________ 2. Rogers Family Trust – Steve Rogers, Rogers Family Trust – Pamel Rogers Under Negotiation: Price and terms of payment RECONVENE TO OPEN SESSION President Scheafer reconvened to open session at 10:10 A.M. and indicated that the Board of Directors accepted an offer, subject to the conditions stated in the offer. Director Ferryman provided commentary about the completion of tenant improvements at 290 Paularino Avenue. Discussion followed regarding the District’s target date for moving its headquarters to 290 Paularino Avenue. There were no additional questions or comments. ADJOURNMENT There being no further business to come before the Board, President Scheafer adjourned the meeting at 10:13 A.M. _________________________ _________________________ Robert Ooten Michael Scheafer Secretary President Costa Mesa Sanitary District ... an Independent Special District Board of Directors Special Meeting of May 18, 2016 Item Number:3. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Board of Directors Special Meeting of May 18, 2016 Cover Memo COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING MAY 18, 2016 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on May 18, 2016 at 5:30 P.M. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: Arthur Perry, Robert Ooten, Arlene Schafer, James Ferryman Michael Scheafer STAFF PRESENT: Scott Carroll, General Manager; Alan Burns, District Counsel; Noelani Middenway, District Clerk OTHERS PRESENT: Jack Faris, Voit Real Estate PUBLIC COMMENTS Vice President Perry opened public comments. Seeing no one, Vice President Perry closed public comments. ADJOURN TO CLOSED SESSION Vice President Perry adjourned to closed session at 5:42 P.M. to confer with real property negotiators for the purchase of 628 W. 19th Street, Costa Mesa. Conference with Real Property Negotiators Property: 628 W. 19th Street, Costa Mesa Agency Negotiators: Scott Carroll and Jack Faris Negotiating parties: 1. Antares Group, LLC COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD APRIL 20, 2016 ________________________________________________________________ Under Negotiation: Price and terms of payment RECONVENE TO OPEN SESSION Vice President Perry reconvened to open session at 5:46 P.M. and indicated that the Board of Directors accepted the offer from Antares Group, LLC along with all conditions stated in the offer. He noted that the motion to accept the offer passed with a 4-0 vote with President Scheafer absent. There were no additional questions or comments. ADJOURNMENT There being no further business to come before the Board, Vice President Perry adjourned the meeting at 5:47 P.M. _________________________ _________________________ Robert Ooten Michael Scheafer Secretary President Costa Mesa Sanitary District ... an Independent Special District Board of Directors Regular Meeting Minutes of May 26, 2016 Item Number:4. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Board of Directors Regular Meeting Minutes of May 26, 2016 Cover Memo COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MAY 26, 2016 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on May 26, 2016 at 5:30 P.M. at 628 W. 19th Street, Costa Mesa. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: President Scheafer led the Pledge of Allegiance. President Scheafer led the Invocation. Michael Scheafer, Arthur Perry, Robert Ooten, Arlene Schafer, James Ferryman None STAFF PRESENT: Scott Carroll, General Manager; Alan Burns, District Counsel; Robin Hamers, District Engineer; Wendy Davis, Finance Manager; Marc Davis, District Treasurer; Dyana Bojarski, Management Analyst II; and Noelani Middenway, District Clerk. OTHERS PRESENT: Sonia Triana, resident; Jim Mosher, resident; and Luke Money, The Daily Pilot. CEREMONIAL MATTERS AND PRESENTATIONS – NONE ANNOUNCEMENT OF LATE COMMUNICATIONS General Manager, Scott Carroll, presented a late communication from Jim Mosher, a resident, regarding Item 26. Mr. Carroll provided clarification about the case number referred to in Item 26 (#2). COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ President Scheafer shared that Mr. Carroll requested for Items 17 and 18 to be pulled from the agenda for procedural reasons, as recommended by District Counsel, Alan Burns. PUBLIC COMMENTS President Scheafer opened public comments and invited Sonia Triania, a Costa Mesa resident, to address the Board of Directors. Ms. Triana presented an issue regarding the movement of her trash carts by a neighbor. Discussion followed regarding the District’s Ordinance No. 37. President Scheafer noted that Code Enforcement Officer, Ed Roberts, will provide a report of Ms. Triana’s issue at the next Study Session on June 14, 2016. Seeing no other members of the public wishing to speak, President Scheafer closed public comments. CONSENT CALENDAR 1. Board of Directors Study Session Meeting Minutes of April 12, 2016 2. Board of Directors Special Meeting Minutes of April 20, 2016 3. Board of Directors Regular Meeting Minutes of April 28, 2016 4. Occupancy Report and Payment to CR&R Environmental Services 5. Contract Payment to CR Transfer for Recycling & Disposal Services The Board of Directors Study Session Meeting Minutes of April 12, 2016 was approved as presented. The Board of Directors Special Meeting Minutes of April 20, 2016 was approved as presented. The Board of Directors Regular Meeting Minutes of April 28, 2016 was approved as presented. The Board of Directors accepted the occupancy count as presented using 22,380 as the correct number of active units and directed staff to prepare a warrant to CR&R Environmental Services in the amount of $219,221.05 to be ratified in the May 2016 warrant list, for April 2016 collection. The Board of Directors approved payment to CR Transfer in the amount of $189,365.32 for recycling and disposal services for the month of April 2016. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ 6. Adoption of Warrant Resolution No. CMSD 2016-11 Approving District Warrant Registers 7. Payroll Transparency Disclosure for April 2016 8. Directors’ Compensation and Reimbursement of Expenses 9. Sewer Lateral Assistance Program (SLAP) Update 10. Investment Report for the Month of April 2016 11. Resolution No. 2016-881 The Board of Directors adopted Warrant Resolution No. CMSD 2016-11 approving District warrants for the month of April 2016 in the amount of $1,260,569.74. The Board of Directors approved the Payroll Transparency Disclosure for April 2016 as presented. The Board of Directors approved the Directors’ Compensation and Reimbursement of Expenses for April 2016 as presented. The Board of Directors approved the SLAP report as presented. The Board of Directors approved the Investment Report for the month of April 2016 as presented. The Board of Directors adopted Resolution No. 2016-881 ordering that publication of Ordinance No. 112 revising the District’s requirements for sewer permits has occurred. Assistant Secretary Schafer made a motion to approve the Consent Calendar as presented. Vice President Perry seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. END OF CONSENT CALENDAR PUBLIC HEARINGS – NONE GENERAL MANAGER’S REPORTS 12. Ordinance No. 114 – Adopting a Revised Operations Code Recommendation: That the Board of Directors adopt Ordinance No. 114 revising the District’s Operations Code. Mr. Carroll provided an overview of the revisions to the Operations Code. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ Vice President Perry made a motion to adopt Ordinance No. 114. Assistant Secretary Schafer seconded the motion. Mr. Mosher provided comments regarding the format of the revised Operations Code and procedures that may require further discussion. President Scheafer called a vote, which carried unanimously, 5-0. There were no further questions or comments. 13. Resolution No. 2016-882 – Administrative Policies Recommendation: That the Board of Directors approves adopting Resolution No. 2016-882 readopting Administrative Policies Manual to supplement personnel rules set forth in the Employee Handbook. Mr. Carroll presented Resolution No. 2016-882 and noted a change in title from “Administrative Regulations” to “Administrative Policies.” Discussion followed regarding the title change and the difference in meaning between “regulations” and “policies.” Vice President Perry made a motion to approve the adoption of Resolution No. 2016- 882. Secretary Ooten seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. 14. Resolution No. 2016-883 – Employee Handbook Recommendation: That the Board of Directors approves adopting Resolution No. 2016-883 readopting the Employee Handbook setting forth personnel rules. Mr. Carroll presented Resolution No. 2016-883 and noted that the Employee Handbook relates to personnel policies and procedures. Assistant Secretary Schafer made a motion to approve the adoption of Resolution No. 2016-883. Director Ferryman seconded the motion, which passed unanimously with a 5- 0 vote. There were no further questions or comments. 15. Resolution No. 2016-884 – Authorizing the Sale of the Property at 628 W. 19th Street, Costa Mesa, and Making Findings Relating Thereto Recommendation: That the Board of Directors approves adopting Resolution No. 2016-884 authorizing the sale of the property at 628 W. 19th Street, Costa Mesa, and making findings relating thereto. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ Mr. Carroll presented Resolution No. 2016-884. He noted that the resolution was recommended by District Counsel, Alan Burns, in order for the District to maintain conformance with the General Plan. Mr. Mosher provided commentary and requested clarification regarding the term “properly given authority.” Mr. Carroll explained that the term gives Mr. Carroll the authority to execute documents relating to the sale of the building at 628 W. 19th Street, Costa Mesa. Vice President Perry made a motion to approve the adoption of Resolution No. 2016- 884. Assistant Secretary Schafer seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. 16. Board of Directors Health Insurance Recommendation: 1. That the Board of Directors direct staff to file a termination resolution for non-CalPERS members to be filed in July 2016 with an effective date of January 2017; or 2. That the Board of Directors continue the option for Board members to participate in the District’s health insurance plan. Dyana Bojarski, Management Analyst II, provided report details and noted that none of the Board members currently participate in the health plan. Discussion followed regarding the termination process, health benefits offered by other special districts, and the possibility of future board members obtaining a health insurance. Assistant Secretary Schafer made a motion to approve Option 1, directing staff to file a termination resolution for non-CalPERS members to be filed in July 2016 with an effective date of January 2017. Director Ferryman seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments regarding Item 16. President Scheafer noted that Items 17 and 18 were pulled from the agenda, but will be brought back to the Board of Directors at a future meeting. 19. Budget Transfer Grade 5 Pipe Rehab Project #315 Recommendation: That the Board of Directors approves the appropriation of funds as follows: COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ Account Account Number Increase Decrease Grade 5 Pipe Rehab #315 20-201315-4300 $500,000 Westside PS Abandonment #101 20-200601-4300 $500,000 Mr. Carroll presented the proposed budget transfer of $500,000 to repair Grade 5 sewer sections. Secretary Ooten made a motion to approve the appropriation of $500,000 for the Grade 5 Pipe Rehab Project #315. Vice President Perry seconded the motion. Secretary Ooten commented that Project #101 has not been officially suspended; rather it was taken off of Orange County Sanitation District’s (OCSD) last agenda. Discussion followed regarding the necessity of funding the District’s Grade 5 repairs. President Scheafer called for a vote, which carried unanimously, 5-0. There were no further questions or comments. 20. Proposed California Special District Association Bylaws Updates Recommendation: That the Board of Directors authorize President Scheafer to vote on behalf of the District, whether in favor or against, adopting the 2016 proposed CSDA Bylaws Amendments. Mr. Carroll presented CSDA’s proposed bylaw updates. Director Ferryman made a motion to authorize President Scheafer to vote on behalf of the District, whether in favor or against, adopting the 2016 proposed CSDA Bylaws Amendments. Vice President Perry seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. ENGINEER’S REPORTS 21. Project Status Report Recommendation: That the Board of Directors receive and file the report. District Engineer, Robin Hamers, presented the Capital Improvement Program (CIP) report and noted that the 23rd Street pump station is now operational. Discussion followed regarding anticipating summer power outages and the Calvert Avenue generator. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ There were no further questions or comments and the report was received. 22. Conflict of Interest Report Nothing to report at this time. Mr. Hamers noted that there is nothing to report at this time. 23. Project 196-C Installation of Backup Power for 23rd Pump Station – Acceptance of Improvements Recommendation: That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Mr. Hamers shared that Project 196-C is complete and requires an acceptance of improvements. Secretary Ooten made a motion to accept improvements as completed and file a Notice of Completion, authorize payment of 5% retention 35 days after Notice of Completion is recorded, exonerate Labor and Material Bond 35 days after Notice of Completion is recorded, and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Assistant Secretary Schafer seconded the motion. Mr. Mosher provided commentary and requested clarification regarding the final project cost. Finance Manager, Wendy Davis, noted that staff has not yet received all of the bills for the project, and thus does not have the final cost yet. President Scheafer called for a vote, which carried unanimously, 5-0. There were no further questions or comments. 24. 1527 Newport Blvd. – Acceptance of Sewer Improvements Constructed by Private Developer Recommendation: That the Board of Directors accept sewer improvements and exonerate bonds. Mr. Hamers provided a brief overview of the project at 1527 Newport Blvd. Discussion followed regarding how other new developments in Costa Mesa connect to the main sewer line. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ Assistant Secretary Schafer made a motion to accept sewer improvements and exonerate bonds. Secretary Ooten seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. TREASURER’S REPORTS 25. Finance Update for the Property at 290 Paularino Avenue – Oral Report Recommendation: That the Board of Directors receive and file the report. District Treasurer, Marc Davis, provided an update on the status of the District’s finances in regards to the purchase of the new building at 290 Paularino Avenue. Ms. Davis proposed that the District pay in cash for the new building rather than financing through CSDA Finance Corporation. Discussion followed regarding using CSDA Finance Corporation to finance future pump station rehabilitation projects and the benefits of paying for the new building in cash. The Board of Directors directed staff to inform CSDA that the District will not move forward with financing the purchase of the building. There were no further questions or comments and the report was received. ATTORNEY’S REPORTS - NONE LOCAL MEETINGS A. Orange County Sanitation District (OCSD) – (Director Ferryman) Recommendation: That the Board of Directors accepts oral report. Director Ferryman provided an overview of the OCSD meeting and noted that the extension of the alternate engineer agreement with the District was approved. B. Santa Ana River Flood Protection Agency (SARFPA) – (Vice President Perry) Recommendation: That the Board of Directors accepts oral report. Vice President Perry shared that he and Director Ferryman attended the SARFPA meeting and noted that there was discussion regarding raising the annual membership fee from $1100 to $1300. C. Independent Special Districts of Orange County (ISDOC) – (President Scheafer) COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ Recommendation: That the Board of Directors accepts oral report. President Scheafer provided an overview of the ISDOC meeting and noted that there was discussion regarding future speakers and the local agency formation commission (LAFCO). D. California Special Districts Association (CSDA) - (Assistant Secretary Schafer) Recommendation: That the Board of Directors accepts oral report. Assistant Secretary Schafer provided an overview of CSDA Legislative Days and noted that she and District staff met with Senator John Moorlach and Assemblyman Harper regarding key legislation. E. Special District Risk Management Authority (SDRMA) – (President Scheafer) Recommendation: That the Board of Directors accepts oral report. President Scheafer provided an overview of the SDRMA Board Meeting and noted that Workers’ Compensation rates are increasing. F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Recommendation: That the Board of Directors accepts oral report. President Scheafer shared that he conducted a check presentation for the Battery Recycling Program at California Elementary School on May 6, 2016. Secretary Ooten noted that he attended a Sexual Harassment Certification at Orange County Sanitation District and the Orange Coast College Recycling Center groundbreaking ceremony. OLD BUSINESS – NONE NEW BUSINESS – NONE ORAL COMMUNICATIONS AND DIRECTOR COMMENTS President Scheafer requested to know the process for obtaining a pool construction permit from the District. Secretary Ooten requested information regarding adding new residential constructions to the tax rolls for waste collection service. President Scheafer recommended having a meeting at 290 Paularino, Costa Mesa in June. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 26, 2016 ______________________________________________________________________ ADJOURN TO CLOSED SESSION 26. Conference With Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)): 1. Costa Mesa Sanitary District v. Santa Ana Regional Water Quality Control Board (OC Sup Ct # 30-2016-0084260 CU-CM-CJC) (Government Code Section 54956.9(d)(1) and (4): 2. Claim of Costa Mesa Sanitary District filed with the Victim Compensation and Government Claims Board, Claim No. C628876 (Caltrans) President Scheafer adjourned to closed session at 7:09 P.M. RECONVENE TO OPEN SESSION President Scheafer reconvened to open session at 7:20 P.M. and indicated that there was no reportable action for Item 26 (#1). He noted that the Board of Directors authorized Mr. Burns to move forward with the lawsuit against Caltrans for compensation damages, which passed unanimously with a 5-0 vote. ADJOURNMENT There being no further business to come before the Board, President Scheafer adjourned the meeting at 7:20 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 Item Number:5. Recommendation/Notes: Recommendation: That the Board of Directors: 1. Accepts the occupancy count as presented using 22,390 as the correct number of active units. 2. Directs staff to prepare a warrant to CR&R Environmental Services for May 2016 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $219,319.01 to be ratified in the June 2016 warrant list. ATTACHMENTS: Description Type Occupancy Report and Payment to CR&R Environmental Services 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 To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst I Date: June 23, 2016 Subject: OCCUPANCY REPORT AND PAYMENT TO CR&R ENVIRONMENTAL SERVICES Summary The total occupancy count for May 2016 billing is 22,390, with ten (10) accounts added since the last billing period. Staff Recommendation Staff recommends the following: 1. The Board of Directors accepts the occupancy count as presented using 22,390 as the correct number of active units. 2. The Board of Directors directs staff to prepare a warrant to CR&R Environmental Services for May 2016 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $219,319.01 to be ratified in the June 2016 warrant list. The payment calculation is based on the following:  District Current Rate for April of 2016: 22,390 x $9.7954 = $219,319.01 Attachments: A. May 2016 Occupancy Report Costa Mesa Sanitary DistrictOccupancy Report May 2016 Total Accounts 22,390 35 Gallon Waste Carts 926 60 Gallon Waste Carts 29758 90 Gallon Waste Carts 14603 35 Gallon Organic Carts 106 60 Gallon Organic Carts 19970 Total Carts 65,363 Cart Delivery Information/Start Standard Service Service Address Date Delivered RESIDENT 3067 PARAGON 5/1/2016 60 GAL BARREL DELIVERY RESIDENT 821 BRICKYARD 5/1/2016 60 GAL BARREL DELIVERY RESIDENT 3055 PARAGON 5/2/2016 60 GAL BARREL DELIVERY RESIDENT 810 BRICKYARD 5/3/2016 60 GAL BARREL DELIVERY RESIDENT 3060 EDGEWAY 5/9/2016 60 GAL BARREL DELIVERY RESIDENT 1996 WALLACE 5/12/2016 60 GAL BARREL DELIVERY RESIDENT 3049 PARAGON 5/16/2016 60 GAL BARREL DELIVERY RESIDENT 636 SEABRIGHT 5/17/2016 60 GAL BARREL DELIVERY RESIDENT 2189 MINER 5/24/2016 60 GAL BARREL DELIVERY RESIDENT 2124 PALMILLA 5/25/2016 60 GAL BARREL DELIVERY Telephone # Costa Mesa Sanitary District ... an Independent Special District Contract Payment to CR Transfer for Recycling & Disposal Services Item Number:6. Recommendation/Notes: Recommendation: That the Board of Directors directs staff to prepare a warrant to CR Transfer in the amount of $163,924.19 for May 2016 recycling and disposal services to be ratified in the June 2016 warrant register. ATTACHMENTS: Description Type Contract Payment to CR Transfer for Recycling & Disposal Services 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 To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst I Date: June 23, 2016 Subject: Contract Payment to CR Transfer for Recycling & Disposal Services Summary The Board of Directors approves payment to CR Transfer for recycling and disposal services for the month of May 2016 as detailed below: Staff Recommendation That the Board of Directors directs staff to prepare a warrant to CR&R Environmental Services in the amount of $163,924.19 for May 2016 recycling and disposal services to be ratified in the June 2016 warrant register. Costa Mesa Sanitary District ... an Independent Special District Adoption of Warrant Resolution No. CMSD 2016-12 Approving District Warrant Registers Item Number:7. Recommendation/Notes: Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2016-12 approving District warrants for the Month of May 2016 in the amount of $3,611,410.27. ATTACHMENTS: Description Type Adoption of Warrant Resolution No. CMSD 2016-12 Approving District Warrant Registers Cover Memo COSTA MESA SANITARY DISTRICT Warrant Resolution No. CMSD 2016-12 A RESOLUTION OF THE COSTA MESA SANITARY DISTRICT RATIFYING THE PAYMENT OF CERTAIN 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 $3,611,410.27 have been audited as required by law and that the same were paid out of respective funds as hereinafter set forth. 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 23rd day of June 2016. ATTEST: Secretary President STATE 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 2016-12 was duly adopted by the Costa Mesa Sanitary District at a regular meeting held on the 23rd day of June 2016. 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 23rd day of June 2016. District Clerk of the Costa Mesa Sanitary District User: Printed:5/27/2016 - 11:16 AM Checks for Approval Accounts Payable ktran Check Number Check Date Account Name Vendor NameFund Name Void Amount Employment Development Department 0 05/04/2016 Liquid Waste Fund State Withholding Taxes 107.14 Check Total: 107.14 Internal Revenue Service 0 05/04/2016 Liquid Waste Fund FICA - Employee 521.47 Internal Revenue Service 0 05/04/2016 Liquid Waste Fund Federal Withholding Taxes 576.10 Internal Revenue Service 0 05/04/2016 Liquid Waste Fund Medicare - Employee 121.96 Internal Revenue Service 0 05/04/2016 Liquid Waste Fund FICA - Employee 521.47 Internal Revenue Service 0 05/04/2016 Liquid Waste Fund Medicare - Employee 121.96 Check Total: 1,862.96 Employment Development Department 0 05/11/2016 Liquid Waste Fund State Withholding Taxes 1,730.98 Check Total: 1,730.98 Internal Revenue Service 0 05/11/2016 Liquid Waste Fund Federal Withholding Taxes 5,894.80 Internal Revenue Service 0 05/11/2016 Liquid Waste Fund Medicare - Employee 745.36 Internal Revenue Service 0 05/11/2016 Liquid Waste Fund Medicare - Employee 745.36 Check Total: 7,385.52 Cal Pers Employee Ret System 0 05/11/2016 Liquid Waste Fund PERS Survivor Benefit 15.81 Cal Pers Employee Ret System 0 05/11/2016 Liquid Waste Fund PERS Retirement 700.82 Cal Pers Employee Ret System 0 05/11/2016 Liquid Waste Fund PERS - Employer 0.01 Cal Pers Employee Ret System 0 05/11/2016 Liquid Waste Fund PERS Retirement 65.54 Cal Pers Employee Ret System 0 05/11/2016 Liquid Waste Fund PERS Retirement 3,707.49 Cal Pers Employee Ret System 0 05/11/2016 Liquid Waste Fund PERS Retirement 2,498.10 Cal Pers Employee Ret System 0 05/11/2016 Liquid Waste Fund PERS Retirement 49.06 Check Total: 7,036.83 Cal Pers Employee Ret System 0 05/13/2016 Solid Waste Fund PERS - Employer 84.90 Cal Pers Employee Ret System 0 05/13/2016 Liquid Waste Fund PERS - Employer 764.10 Cal Pers Employee Ret System 0 05/13/2016 Solid Waste Fund PERS - Employer 1.90 Cal Pers Employee Ret System 0 05/13/2016 Liquid Waste Fund PERS - Employer 17.10 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 1 Check Number Check Date Account Name Vendor NameFund Name Void Amount Check Total: 868.00 Employment Development Department 0 05/25/2016 Liquid Waste Fund State Withholding Taxes 1,712.43 Check Total: 1,712.43 Internal Revenue Service 0 05/25/2016 Liquid Waste Fund Medicare - Employee 745.60 Internal Revenue Service 0 05/25/2016 Liquid Waste Fund Federal Withholding Taxes 5,868.55 Internal Revenue Service 0 05/25/2016 Liquid Waste Fund Medicare - Employee 745.60 Check Total: 7,359.75 Cal Pers Employee Ret System 0 05/25/2016 Liquid Waste Fund PERS Retirement 3,718.86 Cal Pers Employee Ret System 0 05/25/2016 Liquid Waste Fund PERS Retirement 65.54 Cal Pers Employee Ret System 0 05/25/2016 Liquid Waste Fund PERS Retirement 2,509.07 Cal Pers Employee Ret System 0 05/25/2016 Liquid Waste Fund PERS Retirement 700.82 Cal Pers Employee Ret System 0 05/25/2016 Liquid Waste Fund PERS Survivor Benefit 15.81 Cal Pers Employee Ret System 0 05/25/2016 Liquid Waste Fund PERS Retirement 49.06 Check Total: 7,059.16 Cal PERS 0 05/06/2016 Solid Waste Fund Benefits Admin Costs 5.00 Cal PERS 0 05/06/2016 Solid Waste Fund Benefits Admin Costs 22.50 Cal PERS 0 05/06/2016 Liquid Waste Fund PERS Medical 12,699.52 Cal PERS 0 05/06/2016 Liquid Waste Fund Benefits Admin Costs 202.50 Cal PERS 0 05/06/2016 Liquid Waste Fund Sewer Maint-Benefit Admin 75.00 Cal PERS 0 05/06/2016 Liquid Waste Fund Benefits Admin Costs 44.96 Check Total: 13,049.48 Davis Magnet School 15098 05/11/2016 Solid Waste Fund Battery Recycling Program 1,000.00 Check Total: 1,000.00 AFLAC 15099 05/13/2016 Liquid Waste Fund Employee Insurance 888.48 Check Total: 888.48 AT&T 15100 05/13/2016 Liquid Waste Fund Telephone 0.48 AT&T 15100 05/13/2016 Liquid Waste Fund Telephone 82.43 AT&T 15100 05/13/2016 Liquid Waste Fund Sewer Maint-Telephone 45.97 AT&T 15100 05/13/2016 Liquid Waste Fund Sewer Maint-Telephone 163.26 AT&T 15100 05/13/2016 Solid Waste Fund Telephone 9.16 AT&T 15100 05/13/2016 Solid Waste Fund Telephone 0.05 Check Total: 301.35 Birch Communications 15101 05/13/2016 Liquid Waste Fund Sewer Maint-Telephone 797.43 Birch Communications 15101 05/13/2016 Liquid Waste Fund Telephone 241.15 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 2 Check Number Check Date Account Name Vendor NameFund Name Void Amount Birch Communications 15101 05/13/2016 Solid Waste Fund Telephone 26.80 Check Total: 1,065.38 Jesse Blakely 15102 05/13/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 150.00 Check Total: 150.00 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Small Tools/Eq 170.59 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Small Tools/Eq 232.92 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Staff Development 16.00 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Staff Development 32.20 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Small Tools/Eq 238.06 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Pump Stn Maint 95.34 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Small Tools/Eq -170.59 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Staff Development 15.00 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 125.70 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Bldg Maint 32.16 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Staff Development 27.38 Bank of America 15103 05/13/2016 Liquid Waste Fund Board Development 15.29 Bank of America 15103 05/13/2016 Liquid Waste Fund Board Development 32.98 Bank of America 15103 05/13/2016 Liquid Waste Fund Board Development 8.98 Bank of America 15103 05/13/2016 Solid Waste Fund Board Development 4.50 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 2.09 Bank of America 15103 05/13/2016 Liquid Waste Fund Board Development 40.50 Bank of America 15103 05/13/2016 Solid Waste Fund Board Development 1.70 Bank of America 15103 05/13/2016 Solid Waste Fund Board Development 3.66 Bank of America 15103 05/13/2016 Liquid Waste Fund Public Info/Ed/Community Promo 9.08 Bank of America 15103 05/13/2016 Solid Waste Fund Public Info/Ed/Community Prom 81.69 Bank of America 15103 05/13/2016 Liquid Waste Fund Staff Development 18.85 Bank of America 15103 05/13/2016 Solid Waste Fund Board Development 1.00 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 23.00 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 1.38 Bank of America 15103 05/13/2016 Liquid Waste Fund Staff Development 12.40 Bank of America 15103 05/13/2016 Liquid Waste Fund Sewer Maint-Staff Development 13.78 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 1.38 Bank of America 15103 05/13/2016 Solid Waste Fund Board Development 14.98 Bank of America 15103 05/13/2016 Liquid Waste Fund Staff Development 36.00 Bank of America 15103 05/13/2016 Solid Waste Fund Board Development 6.86 Bank of America 15103 05/13/2016 Liquid Waste Fund Public Info/Ed/Community Prom 112.50 Bank of America 15103 05/13/2016 Liquid Waste Fund Staff Development 12.40 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 36.20 Bank of America 15103 05/13/2016 Liquid Waste Fund Staff Development 24.79 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 12.96 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 4.00 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 3 Check Number Check Date Account Name Vendor NameFund Name Void Amount Bank of America 15103 05/13/2016 Liquid Waste Fund Board Development 61.71 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 2.76 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 213.90 Bank of America 15103 05/13/2016 Liquid Waste Fund Board Development 134.78 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 15.00 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 24.48 Bank of America 15103 05/13/2016 Liquid Waste Fund Board Development 134.78 Bank of America 15103 05/13/2016 Solid Waste Fund Public Info/Ed/Community Prom 150.00 Bank of America 15103 05/13/2016 Solid Waste Fund Staff Development 1.38 Bank of America 15103 05/13/2016 Liquid Waste Fund Staff Development 12.40 Bank of America 15103 05/13/2016 Solid Waste Fund Board Development 14.98 Bank of America 15103 05/13/2016 Solid Waste Fund Public Info/Ed/Community Prom 112.50 Check Total: 2,226.38 Harper & Burns LLP 15104 05/13/2016 Liquid Waste Fund Legal Services 2,895.90 Harper & Burns LLP 15104 05/13/2016 Liquid Waste Fund Legal Services 6,028.20 Harper & Burns LLP 15104 05/13/2016 Liquid Waste Fund Legal Services 4,192.16 Harper & Burns LLP 15104 05/13/2016 Solid Waste Fund Legal Services 1,048.04 Check Total: 14,164.30 Financial Reporting & Accounting Svcs Cashier CalPERS 15105 05/13/2016 Liquid Waste Fund PERS Retirement 1,755.00 Financial Reporting & Accounting Svcs Cashier CalPERS 15105 05/13/2016 Solid Waste Fund PERS Retirement 195.00 Check Total: 1,950.00 Alexandra Ciganer 15106 05/13/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 City of Costa Mesa 15107 05/13/2016 Solid Waste Fund Public Info/Ed/Community Prom 250.00 Check Total: 250.00 Costa Mesa Foundation 15108 05/13/2016 Solid Waste Fund Public Info/Ed/Community Prom 1,250.00 Costa Mesa Foundation 15108 05/13/2016 Liquid Waste Fund Public Info/Ed/Community Prom 1,250.00 Check Total: 2,500.00 CoreLogic Solutions, LLC 15109 05/13/2016 Liquid Waste Fund Computer Licenses & Maint 135.00 CoreLogic Solutions, LLC 15109 05/13/2016 Solid Waste Fund Computer Licenses & Maint 15.00 Check Total: 150.00 CR&R Incorporated Environmental Services 15110 05/13/2016 Solid Waste Fund Household Hazardous Waste 196.00 CR&R Incorporated Environmental Services 15110 05/13/2016 Solid Waste Fund Container Collection Costs 3,328.65 Check Total: 3,524.65 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 4 Check Number Check Date Account Name Vendor NameFund Name Void Amount C&R Drains Inc. 15111 05/13/2016 Liquid Waste Fund Sewer Maint-Pump Stn Maint 100.00 Check Total: 100.00 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Sharps Program 115.00 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Pharmaceutical Program 181.35 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Sharps Program 115.00 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Pharmaceutical Program 346.72 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Pharmaceutical Program 199.12 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Sharps Program 115.00 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Pharmaceutical Program 178.65 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Sharps Program 115.00 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Sharps Program 115.00 WM Curbside, LLC 15112 05/13/2016 Solid Waste Fund Sharps Program 115.00 Check Total: 1,595.84 CWEA-SARBS 15113 05/13/2016 Liquid Waste Fund Sewer Maint-Prof Member/Dues 164.00 CWEA-SARBS 15113 05/13/2016 Liquid Waste Fund Sewer Maint-Prof Member/Dues 81.00 CWEA-SARBS 15113 05/13/2016 Liquid Waste Fund Sewer Maint-Prof Member/Dues 164.00 CWEA-SARBS 15113 05/13/2016 Liquid Waste Fund Sewer Maint-Prof Member/Dues 81.00 Check Total: 490.00 Employment Development Department 15114 05/13/2016 Liquid Waste Fund Unemployment 990.00 Employment Development Department 15114 05/13/2016 Solid Waste Fund Unemployment 3,960.00 Check Total: 4,950.00 Environmental Engr & Cont, Inc 15115 05/13/2016 Liquid Waste Fund Sewer Maint-GIS 2,392.50 Environmental Engr & Cont, Inc 15115 05/13/2016 Liquid Waste Fund Sewer Maint-FOG Prog Contract 8,315.00 Check Total: 10,707.50 FedEx 15116 05/13/2016 Liquid Waste Fund Postage 31.36 FedEx 15116 05/13/2016 Liquid Waste Fund Postage 27.83 Check Total: 59.19 Franchise Tax Board 15117 05/13/2016 Liquid Waste Fund Wage Garnishment 208.37 Check Total: 208.37 Southern California Gas Company 15118 05/13/2016 Liquid Waste Fund Sewer Maint-Gas Bldg 37.06 Southern California Gas Company 15118 05/13/2016 Solid Waste Fund Gas - Building 2.34 Southern California Gas Company 15118 05/13/2016 Liquid Waste Fund Gas - Building 21.03 Check Total: 60.43 GE Capital 15119 05/13/2016 Solid Waste Fund Equipment Maintenance 31.63 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 5 Check Number Check Date Account Name Vendor NameFund Name Void Amount GE Capital 15119 05/13/2016 Liquid Waste Fund Equipment Maintenance 284.66 GE Capital 15119 05/13/2016 Liquid Waste Fund Equipment Maintenance 260.29 GE Capital 15119 05/13/2016 Solid Waste Fund Equipment Maintenance 28.92 Check Total: 605.50 Golden Bell Products, Inc. 15120 05/13/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 280.80 Golden Bell Products, Inc. 15120 05/13/2016 Liquid Waste Fund Sewer Maint-Contract Services 10,168.00 Check Total: 10,448.80 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Engineering/Architectual Serv 1,530.00 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Engineering/Architectual Serv 1,785.00 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Plan Ck/Inspection-Inside 2,677.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Plan Ck/Inspection-Outside 5,687.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Plan Ck/Inspection-Outside 682.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Plan Ck/Inspection-Swr Lateral 770.00 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 997.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 1,295.00 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Force Main Upgrades #200 787.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Force Main Upgrades #200 1,312.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Force Main Upgrades #200 70.00 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Indus Relining Project #310 1,102.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Indus Relining Project #310 1,400.00 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Gisler PS Generator #315 787.50 Robin B. Hamers & Assoc., Inc. 15121 05/13/2016 Liquid Waste Fund Gisler PS Generator #315 280.00 Check Total: 21,165.00 Heritage Costa Mesa HOA 15122 05/13/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 677.50 Check Total: 677.50 Iron Mountain Incorporated 15123 05/13/2016 Solid Waste Fund Contract Services 10.42 Iron Mountain Incorporated 15123 05/13/2016 Liquid Waste Fund Contract Services 93.74 Check Total: 104.16 Irvine Ranch Water District 15124 05/13/2016 Liquid Waste Fund Sewer Maint- Water Pumps 11.23 Irvine Ranch Water District 15124 05/13/2016 Liquid Waste Fund Sewer Maint- Water Pumps 9.61 Check Total: 20.84 Lan Wan Enterprise Inc 15125 05/13/2016 Solid Waste Fund Professional Services 390.00 Lan Wan Enterprise Inc 15125 05/13/2016 Liquid Waste Fund Professional Services 3,510.00 Lan Wan Enterprise Inc 15125 05/13/2016 Liquid Waste Fund Computer Licenses & Maint 144.00 Lan Wan Enterprise Inc 15125 05/13/2016 Solid Waste Fund Computer Licenses & Maint 16.00 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 6 Check Number Check Date Account Name Vendor NameFund Name Void Amount Check Total: 4,060.00 Mesa Water District 15126 05/13/2016 Liquid Waste Fund Sewer Maint- Water Pumps 22.50 Mesa Water District 15126 05/13/2016 Liquid Waste Fund Sewer Maint- Water Pumps 22.50 Mesa Water District 15126 05/13/2016 Liquid Waste Fund Sewer Maint- Water Pumps 22.50 Mesa Water District 15126 05/13/2016 Liquid Waste Fund Sewer Maint- Water Pumps 22.50 Mesa Water District 15126 05/13/2016 Liquid Waste Fund Sewer Maint-Water Bldg 63.50 Mesa Water District 15126 05/13/2016 Liquid Waste Fund Sewer Maint-Water Bldg 73.05 Mesa Water District 15126 05/13/2016 Liquid Waste Fund Sewer Maint-Water Bldg 129.21 Check Total: 355.76 Orange County Treasurer-Tax Collector 15127 05/13/2016 Liquid Waste Fund Indus Relining Project #310 135.45 Check Total: 135.45 Orange County Sanitation Distr 15128 05/13/2016 Liquid Waste Fund Due to OCSD 64,110.92 Orange County Sanitation Distr 15128 05/13/2016 Liquid Waste Fund OCSD Fees-CMSD Share -3,205.55 Check Total: 60,905.37 Office Depot 15129 05/13/2016 Liquid Waste Fund Building Maintenance 49.73 Office Depot 15129 05/13/2016 Solid Waste Fund Building Maintenance 5.53 Office Depot 15129 05/13/2016 Solid Waste Fund Office Supplies 10.71 Office Depot 15129 05/13/2016 Liquid Waste Fund Office Supplies 96.34 Office Depot 15129 05/13/2016 Liquid Waste Fund Board Development 61.46 Office Depot 15129 05/13/2016 Solid Waste Fund Board Development 6.83 Office Depot 15129 05/13/2016 Solid Waste Fund Office Supplies 5.44 Office Depot 15129 05/13/2016 Liquid Waste Fund Office Supplies 48.99 Check Total: 285.03 Ortiz Landscaping & Maintenance 15130 05/13/2016 Liquid Waste Fund Sewer Maint-Bldg Maint 75.00 Ortiz Landscaping & Maintenance 15130 05/13/2016 Liquid Waste Fund Building Maintenance 121.50 Ortiz Landscaping & Maintenance 15130 05/13/2016 Solid Waste Fund Building Maintenance 13.50 Check Total: 210.00 O.S.T.S., Inc. 15131 05/13/2016 Liquid Waste Fund Staff Development 477.00 O.S.T.S., Inc. 15131 05/13/2016 Solid Waste Fund Staff Development 53.00 Check Total: 530.00 John Papadopoulos 15132 05/13/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 825.00 Check Total: 825.00 Pauline M. Court-Johnson 15133 05/13/2016 Liquid Waste Fund Public Info/Ed/Community Promo 626.96 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 7 Check Number Check Date Account Name Vendor NameFund Name Void Amount Check Total: 626.96 Professional Pipe Services 15134 05/13/2016 Liquid Waste Fund Sewer Maint-Sewer Line Tele 48,079.24 Check Total: 48,079.24 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 63.89 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 73.77 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 376.78 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 159.10 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 162.60 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 70.27 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 206.72 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 31.77 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 70.14 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 164.86 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 42.06 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 74.31 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 204.49 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 178.65 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 254.51 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 806.89 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 63.26 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 208.21 Southern California Edison 15135 05/13/2016 Solid Waste Fund Electric - Building 48.90 Southern California Edison 15135 05/13/2016 Liquid Waste Fund Electric - Building 440.07 Check Total: 3,701.25 Spec Dist Risk Mgt Authority 15136 05/13/2016 Liquid Waste Fund Dental Insurance 930.04 Spec Dist Risk Mgt Authority 15136 05/13/2016 Liquid Waste Fund Benefits Admin Costs 38.32 Spec Dist Risk Mgt Authority 15136 05/13/2016 Liquid Waste Fund Cafeteria Plan 151.84 Spec Dist Risk Mgt Authority 15136 05/13/2016 Liquid Waste Fund Vision Insurance 214.85 Spec Dist Risk Mgt Authority 15136 05/13/2016 Solid Waste Fund Cafeteria Plan 53.90 Spec Dist Risk Mgt Authority 15136 05/13/2016 Liquid Waste Fund Swr Maint - Cafeteria Plan 181.91 Spec Dist Risk Mgt Authority 15136 05/13/2016 Solid Waste Fund Benefits Admin Costs 15.14 Spec Dist Risk Mgt Authority 15136 05/13/2016 Liquid Waste Fund Swr Maint - Cafeteria Plan 96.74 Spec Dist Risk Mgt Authority 15136 05/13/2016 Solid Waste Fund Cafeteria Plan 102.52 Spec Dist Risk Mgt Authority 15136 05/13/2016 Liquid Waste Fund Cafeteria Plan 70.48 Check Total: 1,855.74 Securitas Security Service USA, Inc. 15137 05/13/2016 Solid Waste Fund Building Maintenance 22.00 Securitas Security Service USA, Inc. 15137 05/13/2016 Liquid Waste Fund Building Maintenance 198.00 Securitas Security Service USA, Inc. 15137 05/13/2016 Solid Waste Fund Building Maintenance 22.40 Securitas Security Service USA, Inc. 15137 05/13/2016 Liquid Waste Fund Building Maintenance 201.60 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 8 Check Number Check Date Account Name Vendor NameFund Name Void Amount Securitas Security Service USA, Inc. 15137 05/13/2016 Solid Waste Fund Building Maintenance 20.00 Securitas Security Service USA, Inc. 15137 05/13/2016 Liquid Waste Fund Building Maintenance 180.00 Check Total: 644.00 Sparkletts 15138 05/13/2016 Liquid Waste Fund Sewer Maint-Office Supplies 57.20 Check Total: 57.20 TelePacific Communications 15139 05/13/2016 Liquid Waste Fund EOC Equipment & Supplies 275.98 TelePacific Communications 15139 05/13/2016 Solid Waste Fund EOC Equipment & Supplies 30.67 Check Total: 306.65 TSR Construction and Inspection 15140 05/13/2016 Liquid Waste Fund Retention's Payable -2,630.00 TSR Construction and Inspection 15140 05/13/2016 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 52,600.00 Check Total: 49,970.00 State of California - Controller's Office 15141 05/13/2016 Liquid Waste Fund Swr Maint - Regular Salaries 2.76 Check Total: 2.76 Underground Service Alert/SC 15142 05/13/2016 Liquid Waste Fund Contract Services 70.50 Underground Service Alert/SC 15142 05/13/2016 Liquid Waste Fund Contract Services 82.50 Check Total: 153.00 U.S. Healthworks Medical Group, PC 15143 05/13/2016 Liquid Waste Fund Medical/Employment Services 100.00 Check Total: 100.00 VantagePoint Transfer Agents 15144 05/13/2016 Liquid Waste Fund Deferred Compensation - 457 5.00 VantagePoint Transfer Agents 15144 05/13/2016 Liquid Waste Fund Deferred Compensation - 457 2,165.42 Check Total: 2,170.42 VantagePoint Transfer Agents 15145 05/13/2016 Liquid Waste Fund Deferred Medical-RHS-Employee 923.32 Check Total: 923.32 WorkWave GPS 15146 05/13/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 99.95 WorkWave GPS 15146 05/13/2016 Solid Waste Fund Equipment Maintenance 19.99 Check Total: 119.94 First American Title Insurance Company 15152 05/24/2016 Liquid Waste Fund Capital Outlay 3,306,757.26 Check Total: 3,306,757.26 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 9 Check Number Check Date Account Name Vendor NameFund Name Void Amount Report Total: 3,611,410.27 AP-Checks for Approval (5/27/2016 - 11:16 AM)Page 10 Vendors Descriptions Amount CA Airport Transportation, CWEA 2016 Conf 4/27‐4/29/16 ‐ Maint Supervisor 32.20 CM Chamber of Commerce CM Chamber Breakfast (3) ‐Board of Directors 45.00 Embassy Suites Meal, SWANA Symposium 4/12/16‐ GM 12.96 French's Pastry Staff Monthly Meeting Refreshments 4/26/16 20.94 GFOA Outstanding Achievement in Popular Annual Financial Rpting Application 225.00 Hampton Inn Lodging, SWANA Symposium 4/11‐4/12/16 ‐ GM 213.90 Home Depot Bolt Cutters/Locks/Safety Glasses 232.92 Hyatt Meal, CWEA 2016 Conf 4/26/16 ‐ Maint Supervisor 27.38 Hyatt Meal, CWEA 2016 Conf 4/27/16 ‐ Maint Supervisor 16.00 Hyatt Lodging/Meal, CSDA Board Mtg 3/31‐4/1/16‐ Board of Director 149.76 Hyatt Lodging/Meal, CSDA Board Mtg 4/14‐4/15/16 ‐ Board of Director 149.76 Lands End Business Outfitter Community Event, CMSD Polo Shirts (3) 90.77 McMaster Adams PS, Value Seal Joint Sealant (3) 95.34 McMaster Chain Hoist/Tool Bag/ Swivel Seat Pail 238.06 McMaster Chain Hoist (1) 170.59 McMaster Return, Chain Hoist (1) ‐170.59 Panera Bread Refreshments Board Meeting 4/18/16 16.99 Panera Bread Monthly Meeting Refreshments 3/15/16 ‐ GM & Board of Directors 36.64 ProFlowers Flowers, Medical ‐ Board of Director 68.57 Saddle Ranch Chop House Lunch, Trash Mtg 4/26/16 ‐ Board of Director & GM 36.20 Smart & Final DY Paper Products 32.16 Southwest Airlines Airfare CWEA 2016 Conf 4/27‐4/29/16 ‐ Maint Supervisor 15.00 Sprouts Farmers Refreshments Board Meeting 4/18/16 9.98 Starbucks CM Community Run, EEs Gift Cards (4) 40.00 Surf Cab Transportation, SWANA Symposium 4/11/16 ‐ GM 23.00 SWANA SWANA, Excellence Award Application 150.00 The Parking Spot Parking, SWANA Symposium 4/12/16 ‐ GM 24.48 Unisafe Inc DY TopGrip Glove (20) 125.70 Walk the Talk Co Profess Dev, Peer Today Boss Tomorrow Books (6) 82.67 Yellow Cab Comp Transportation, SWANA Symposium 4/12/16 ‐ GM 15.00 CMSD Check No. 15103 2,226.38$ Bank of America Costa Mesa Sanitary District May 2016 Costa Mesa Sanitary District ... an Independent Special District Payroll Transparency Disclosure for May 2016 Item Number:8. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Payroll Transparency Disclosure for May 2016 Cover Memo Costa Mesa Sanitary District ... an Independent Special District Directors' Compensation and Reimbursement of Expenses Item Number:9. Recommendation/Notes: Recommendation: That the Board of Directors approve the following: a. Directors' compensation for the month of May 2016; and b. Directors' reimbursement of expenses for the month of May 2016. ATTACHMENTS: Description Type a. Directors’ compensation for the month of May 2016 Cover Memo b. Directors’ reimbursement of expenses for the month of May 2016 Cover Memo Costa Mesa Sanitary District ... an Independent Special District Sewer Lateral Assistance Program (SLAP) Update Item Number:10. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Sewer Lateral Assistance Program (SLAP) Update 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 To: Board of Directors Via: Scott Carroll, General Manager From: Wendy H. Davis, Finance Manager Date: June 23, 2016 Subject: Sewer Lateral Assistance Program (SLAP) Update Summary The following is a summary of the Sewer Lateral Assistance Program (SLAP) activity for the 2015-2016 fiscal year as of June 3, 2016: Adopted SLAP Budget (181 Applications) 200,000$ FY 14-15 Carryover Budget (48 Applications) 64,200 Transfer-out to SLAP Inspection Account (10,000) Total Budget** 254,200$ FY 15-16 New Applications Received 220 Applications Processed for Payment* 185 184,615$ Applications In Process 56 61,600 Available SLAP Spots Based on Funding 8 8,800 Total Projected Cost 255,015$ * Includes applications started in prior fiscal year but completed in current fiscal year. ** Funds remaining at the end of the fiscal year will be carried forward. Staff Recommendation That the Board of Directors approve and file this report. Costa Mesa Sanitary District ... an Independent Special District Investment Report for the Month of May 2016 Item Number:11. Recommendation/Notes: Recommendation: That the Board of Directors approves the Investment Report for the month of May 2016. ATTACHMENTS: Description Type Investment Report for the Month of May 2016 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 From: Marc Davis, Treasurer Date: June 23, 2016 Subject: Investment Report for the Month of May 2016 Summary Attached is the Investment Report for the month of May 2016. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Staff Recommendation Approve the Investment Report for the month of May 2016. Analysis This report lists the types of securities held in the District’s portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of May 31, 2016. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 25, 2015 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of May 31, 2016, was 1.193%. The yield to maturity of the portfolio was 1.198%. The District’s weighted average interest rate was 64 basis points (0.641%) above the LAIF average monthly rate for May 2016 of 0.552%. The weighted average number of days to maturity for the District’s total portfolio was 881 days (2.41 years). The average duration of the underlying securities in LAIF as of May 31, 2016 was 167 days. Board of Directors June 23, 2016 Page 2 of 2 The District’s investment portfolio is in compliance 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 one year as of May 31, 2016 was 35.28%. The District has adequate cash 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 Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of 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 The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2016. Through May 31, 2016, the portfolio has earned a weighted average interest rate of 1.126%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2016 Board of Directors regular meeting at District Headquarters (628 W. 19th 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 as of May 31, 2016 ` Deposits Outstanding Bank Balance In Transits Checks Book Balance Active Accounts: Bank of America 365,196.42$ 46,650.00 27,630.84 384,215.58$ Total Active Accounts 365,196.42 46,650.00 27,630.84 384,215.58 Market Value Increase Decrease Cost Investments: Local Agency Investment Fund 3,769,030.75$ - - 3,769,030.75 Money Market/Sweep Account 1,627,300.24 - - 1,627,300.24 Negotiable Certificates of Deposit 2,911,942.05 28,039.55 - 2,883,902.50 Federal Agency Securities 11,473,563.00 - 7,725.25 11,481,288.25 Total Investments 19,781,836.04 28,039.55 7,725.25 19,761,521.74 Total Pooled Cash & Investments 20,147,032.46$ 74,689.55$ 35,356.09$ 20,145,737.32$ Solid Waste Fund: Operating Reserve 1,720,000.00$ Unreserved: Designated for revenue dry period 2,450,000.00 Undesignated 2,068,879.40 Liquid Waste Fund: Operating Reserve 960,000.00 Reserved for Earthquakes/Emergencies 1,000,000.00 Reserved for Capital Outlay 4,960,800.00 Unreserved: Designated for revenue dry period 2,337,500.00 Undesignated (2,387,508.17) Facilities Revolving Fund 780,880.71 Asset Replacement Fund 1,057,038.97 Asset Management Fund 5,198,146.41 Total Pooled Cash & Investments 20,145,737.32$ Market Adjustment Treasurer 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 May 31, 2016 DateMarcus D. Davis Costa Mesa Sanitary District Pooled Cash and Investments by Fund May 31, 2016 6/15/16 1 Total investments outstanding as of April 30, 2016 23,749,923.41$ Additions: Investment purchases: FHLB, 5/4/16, 1.48%, 5 yr, callable 4/13/18 499,844.92 FHLMC, 5/12/16, 1.75%, 5 yr, callable 8/12/16 435,000.00 Total investment purchases 934,844.92 Deductions: Investments matured: Everbank Negotiable CD (200,000.00) Total investments matured (200,000.00) Investments called: FNMA, 11/15/12, 5 yr, 1.00%, 5/16/16 (1,000,000.00) FNMA, 11/23/15, 5 yr, 1.85%, 5/20/16 (430,000.00) Total investments called (1,430,000.00) Total deductions (1,630,000.00) Net increase (decrease) in Sweep Account 686,755.08 Net increase (decrease) in LAIF (3,980,000.00) Total investments outstanding as of May 31, 2016 19,761,523.41$ 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 May 31, 2016 2 Interest CUSIP Purchase Maturity Coupon Investment Earned at Number Investment Date Date Rate Cost 05/31/16 n/a Local Agency Investment Fund n/a n/a 0.552%3,769,030.75$ n/a ** n/a Pershing-Sweep Acct n/a n/a 0.000%1,627,300.24 n/a 313382HR7 Federal Home Loan Bank 03/27/13 03/27/18 1.130%1,000,000.00 2,008.89 3136G1L31 Federal National Mortgage Assn 05/15/13 05/15/17 0.700%1,000,000.00 311.11 87165FAC8 Synchrony Bank Retail CTF Dep 06/06/14 06/06/19 2.000%99,500.00 958.90 06740KGY7 Barclays Bank Retail CTF Dep 07/02/14 07/05/16 0.650%99,825.00 267.12 795450VP7 Sallie Mae Bank CTF Dep 12/25/14 12/12/16 1.050%125,000.00 622.09 38148JGK1 Goldman Sachs Bank USA CTF Dep 01/07/15 01/07/19 1.900%200,000.00 1,509.59 02587DXL7 American Exp Centurion CTF Dep 05/01/15 05/01/17 0.900%199,700.00 152.88 140420SW1 Capital One Bank CTF Dep 07/01/15 07/01/19 1.950%245,000.00 1,976.45 254672QY7 Discover Bank CTF Dep 07/01/15 07/01/20 2.300%245,000.00 2,331.19 3130A5TW9 Federal Home Loan Bank 07/27/15 07/27/20 2.000%1,000,000.00 6,888.89 20451PMU7 Compass Bank CTF Dep 08/07/15 07/31/17 1.300%200,000.00 861.92 02006LTZ6 Ally Bank CTF Dep 09/17/15 09/17/18 1.650%245,000.00 830.65 3133EFJQ1 Federal Farm Credit Bank 10/15/15 10/15/19 1.440%1,000,000.00 1,840.00 3133EFKA4 Federal Farm Credit Bank 10/19/15 01/14/20 1.500%499,875.00 2,854.17 05580ADA9 BMW Bank CTF Dep 10/21/15 10/16/17 1.150%244,877.50 347.36 3136G2QA8 Federal National Mortgage Assn 10/27/15 10/27/20 1.470%250,000.00 347.08 3133EFMG9 Federal Farm Credit Bank 10/29/15 10/29/20 1.680%1,000,000.00 1,493.33 3133EFNM5 Federal Farm Credit Bank 11/09/15 11/09/20 1.800%500,000.00 550.00 3133EFPM3 Federal Farm Credit Bank 11/23/15 11/23/20 1.875%1,000,000.00 416.67 3136G2T72 Federal National Mortgage Assn 11/25/15 11/25/20 1.700%997,000.00 283.33 066519BB4 BankUnited CTF Dep 11/30/15 11/30/18 1.450%245,000.00 9.73 27113PAW1 East Boston Savings Bank CTF Dep 12/18/15 04/18/17 1.000%150,000.00 53.42 9497483K1 Wells Fargo CTF Dep 02/12/16 02/12/18 1.150%140,000.00 83.81 3134G8KL2 Federal Home Loan Mortgage Corp 02/26/16 02/26/19 1.300%300,000.00 1,029.17 48125YJ21 JP Morgan Chase Bank CTF Dep 03/22/16 03/22/18 1.000%200,000.00 383.56 3134G8NS4 Federal Home Loan Mortgage Corp 03/29/16 03/29/19 1.400%1,000,000.00 2,411.11 3134G8VN6 Federal Home Loan Mortgage Corp 03/30/16 03/29/21 1.600%1,000,000.00 2,755.56 05581WEQ4 BMO Harris Bank CTF Dep 03/30/16 03/29/18 1.050%245,000.00 436.97 3130A7Q81 Federal Home Loan Bank 05/04/16 04/13/21 1.480%499,413.25 986.67 3134G9BP1 Federal Home Loan Mortgage Corp 05/12/16 05/12/21 1.750%435,000.00 401.77 Totals 19,761,521.74$ 35,403.39$ **Represents the LAIF monthly rate for May 2016 Comments COSTA MESA SANITARY DISTRICT Investment and Investment Earnings May 31, 2016 3 Current % of Market Value 05/31/16 Maximum % U.S. Treasury Bills 0.00%Unlimited U.S. Treasury Notes 0.00%Unlimited Federal Agency Issues: FICB 0.00%Unlimited FLB 0.00%Unlimited FHLB 12.63%Unlimited FHLMC 13.79%Unlimited FNMA 11.38%Unlimited FFCB 20.19%Unlimited Other *0.00%Unlimited Banker's Acceptances 0.00%25% (1) Certificates of Deposit 0.00%25% Negotiable Certificates of Deposits 14.72%25% (1) Commercial Paper 0.00%25% (1) Medium Term Corporate Notes 0.00%20% (1) LAIF (Local Agency Investment Fund)19.05%40,000,000 Shares of Benefical Interest 0.00%20% Money Market/Mutual Funds (Sweep Acct)8.23%10% per fund (2) Total 100.00% % of portfolio maturing under one year 35.28%no less than 20% % of portfolio maturing over one year 64.72% 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 May 31, 2016 Description 4 Purchase Maturity Coupon Investment % of Market % of Description Broker/Dealer Date Date Rate Cost Portfolio Value Portfolio State Treasurer's Pool LAIF n/a Continuous 0.552%**3,769,030.75$ 3,769,030.75$ Total State Treasurer's Pool 3,769,030.75 19.07%3,769,030.75 19.05% Money Market/Sweep Account Pershing n/a Continuous 0.000%1,627,300.24 1,627,300.24 Total Money Market/Sweep Account 1,627,300.24 8.23%1,627,300.24 8.23% Federal Home Loan Mortgage Corp Multi-Bank Securities 02/26/16 02/26/19 1.300%300,000.00 300,135.00 Federal Home Loan Mortgage Corp Multi-Bank Securities 03/29/16 03/29/19 1.400%1,000,000.00 998,670.00 Federal Home Loan Mortgage Corp Multi-Bank Securities 03/30/16 03/29/21 1.600%1,000,000.00 995,610.00 Federal Home Loan Mortgage Corp Multi-Bank Securities 05/12/16 05/12/21 1.750%435,000.00 434,478.00 Total Federal Home Loan Mortgage Corp 2,735,000.00 13.84%2,728,893.00 13.79% Federal Home Loan Bank E.J. De La Rosa 03/27/13 03/27/18 1.130%1,000,000.00 1,000,000.00 Federal Home Loan Bank Multi-Bank Securities 07/27/15 07/27/20 2.000% 1,000,000.00 1,002,040.00 Federal Home Loan Bank Multi-Bank Securities 05/04/16 04/13/21 1.480%499,413.25 497,295.00 Total Federal Home Loan Bank 2,499,413.25 12.65%2,499,335.00 12.63% Federal National Mortgage Association Union Banc 05/15/13 05/15/17 0.700%1,000,000.00 999,360.00 Federal National Mortgage Association Multi-Bank Securities 10/27/15 10/20/15 1.470%250,000.00 250,020.00 Federal National Mortgage Association Multi-Bank Securities 11/25/15 11/25/20 1.700%997,000.00 1,001,260.00 Total Federal National Mortgage Association 2,247,000.00 11.37%2,250,640.00 11.38% Federal Farm Credit Bank Multi-Bank Securities 10/15/15 10/15/19 1.440%1,000,000.00 1,000,010.00 Federal Farm Credit Bank Multi-Bank Securities 10/19/15 01/14/20 1.500%499,875.00 499,605.00 Federal Farm Credit Bank Multi-Bank Securities 10/29/15 10/29/20 1.680%1,000,000.00 992,760.00 Federal Farm Credit Bank Multi-Bank Securities 11/09/15 11/09/20 1.800%500,000.00 500,180.00 Federal Farm Credit Bank Multi-Bank Securities 11/23/15 11/23/20 1.875%1,000,000.00 1,002,140.00 Total Federal Farm Credit Bank 3,999,875.00 20.24%3,994,695.00 20.19% Synchrony Bank Retail Certificate of Deposit Multi-Bank Securities 06/06/14 06/06/19 2.000%99,500.00 102,348.00 Barclays Bank Retail Certificate of Deposit Multi-Bank Securities 07/02/14 07/05/16 0.650%99,825.00 100,030.00 Sallie Mae Bank CTF Dep Multi-Bank Securities 12/25/14 12/12/16 1.050%125,000.00 125,230.00 Goldman Sachs Bk CTF Dep Multi-Bank Securities 01/07/15 01/07/19 1.900%200,000.00 202,862.00 American Exp Centurion CTF Dep Multi-Bank Securities 05/01/15 05/01/17 0.900% 199,700.00 200,362.00 Capital One Bank CTF Dep Multi-Bank Securities 07/01/15 07/01/19 1.950% 245,000.00 249,142.95 Discover Bank CTF Dep Multi-Bank Securities 07/01/15 07/01/20 2.300% 245,000.00 251,534.15 Compass Bank CTF Dep Multi-Bank Securities 08/07/15 07/31/17 1.300% 200,000.00 200,666.00 Ally Bank CTF Dep Multi-Bank Securities 09/17/15 09/17/18 1.650% 245,000.00 248,307.50 BMW Bank CTF Dep Multi-Bank Securities 10/21/15 10/16/17 1.150% 244,877.50 246,087.80 BankUnited CTF Dep Multi-Bank Securities 11/30/15 11/30/18 1.450% 245,000.00 248,192.35 East Boston Savings Bank CTF Dep Multi-Bank Securities 12/18/15 04/18/17 1.000% 150,000.00 150,132.00 Wells Fargo CTF Dep Multi-Bank Securities 02/12/16 02/12/18 1.150% 140,000.00 140,774.20 JP Morgan Chase Bank CTF Dep Multi-Bank Securities 03/22/16 03/22/18 1.000% 200,000.00 200,690.00 BMO Harris Bank CTF Dep Multi-Bank Securities 03/30/16 03/29/18 1.050%245,000.00 245,583.10 Total Negotiable Certificates of Deposit 2,883,902.50 14.59%2,911,942.05 14.72% Total Investments 19,761,521.74$ 100.00%19,781,836.04$ 100.00% **Represents the LAIF monthly rate for May 2016 COSTA MESA SANITARY DISTRICT Schedule of Investments by Instrument Type May 31, 2016 5 Investment Purchase Maturity Days to Coupon Yield to Investment Broker/Dealer Type Date Date Maturity Rate Maturity Cost Local Agency Investment Fund Pool 1 0.552%**0.552%3,769,030.75$ Pershing-Sweep Acct Sweep 1 0.000%0.000%1,627,300.24 Multi-Bank Securities Negotiable CD 07/02/14 07/05/16 35 0.650%0.650%99,825.00 Multi-Bank Securities Negotiable CD 12/25/14 12/12/16 195 1.050%1.050%125,000.00 Multi-Bank Securities Negotiable CD 12/18/15 04/18/17 322 1.000% 1.000%150,000.00 Multi-Bank Securities Negotiable CD 05/01/15 05/01/17 335 0.900% 0.900%199,700.00 UnionBanc FNMA 05/15/13 05/15/17 349 0.700%0.700%1,000,000.00 Multi-Bank Securities Negotiable CD 08/07/15 07/31/17 426 1.300% 1.300%200,000.00 Multi-Bank Securities Negotiable CD 10/21/15 10/16/17 503 1.150% 1.176%244,877.50 Multi-Bank Securities Negotiable CD 02/12/16 02/12/18 622 1.150% 1.150%140,000.00 Multi-Bank Securities Negotiable CD 03/22/16 03/22/18 660 1.000% 1.000% 200,000.00 E.J. De La Rosa FHLB 03/27/13 03/27/18 665 1.130%1.130%1,000,000.00 Multi-Bank Securities Negotiable CD 03/30/16 03/29/18 667 1.050% 1.050% 245,000.00 Multi-Bank Securities Negotiable CD 09/17/15 09/17/18 839 1.650% 1.650%245,000.00 Multi-Bank Securities Negotiable CD 11/30/15 11/30/18 913 1.450% 1.450%245,000.00 Multi-Bank Securities Negotiable CD 01/07/15 01/07/19 951 1.900%1.900%200,000.00 Multi-Bank Securities FHLMC 02/26/16 02/26/19 1,001 1.300% 1.300%300,000.00 Multi-Bank Securities FHLMC 03/29/16 03/29/19 1,032 1.400% 1.400% 1,000,000.00 Multi-Bank Securities Negotiable CD 06/06/14 06/06/19 1,101 2.000%2.106%99,500.00 Multi-Bank Securities Negotiable CD 07/01/15 07/01/19 1,126 1.950% 1.950%245,000.00 Multi-Bank Securities FFCB 10/15/15 10/15/19 1,232 1.440% 1.440%1,000,000.00 Multi-Bank Securities FFCB 10/19/15 01/14/20 1,323 1.500% 1.506%499,875.00 Multi-Bank Securities Negotiable CD 07/01/15 07/01/20 1,492 2.300% 2.300%245,000.00 Multi-Bank Securities FHLB 07/27/15 07/27/20 1,518 2.000% 2.000%1,000,000.00 Multi-Bank Securities FNMA 10/27/15 10/27/20 1,610 1.470% 1.470%250,000.00 Multi-Bank Securities FFCB 10/29/15 10/29/20 1,612 1.680% 1.680%1,000,000.00 Multi-Bank Securities FFCB 11/09/15 11/09/20 1,623 1.800% 1.800%500,000.00 Multi-Bank Securities FFCB 11/23/15 11/23/20 1,637 1.875% 1.875%1,000,000.00 Multi-Bank Securities FNMA 11/25/15 11/25/20 1,639 1.700% 1.763%997,000.00 Multi-Bank Securities FHLMC 03/30/16 03/29/21 1,763 1.600% 1.600% 1,000,000.00 Multi-Bank Securities FHLB 05/04/16 04/13/21 1,778 1.480% 1.505% 499,413.25 Multi-Bank Securities FHLMC 05/12/16 05/12/21 1,807 1.750% 1.750%435,000.00 Total Investment Portfolio 19,761,521.74$ Total Portfolio Weighted Avg Interest Rate 1.193 % Weighted Avg Yield to Maturity 1.198 % Weighted Avg Days to Maturity 881 Days 2.41 Years **Represents the LAIF monthly rate for May 2016 COSTA MESA SANITARY DISTRICT Investment Portfolio May 31, 2016 6 Net Purchase Maturity Intuition Investment Coupon Investment Market Accrued Gain/(Loss) Date Date Broker/Dealer Type Par Rate Cost Value Interest If Sold n/a Continuous LAIF Pool 3,769,030.75$ 0.552%**3,769,030.75 3,769,030.75 - - n/a Continuous Pershing Sweep 1,627,300.24 0.000%1,627,300.24 1,627,300.24 - - 03/27/13 03/27/18 E.J. De La Rosa FHLB 1,000,000.00 1.130%1,000,000.00 1,000,000.00 2,008.89 - 05/15/13 05/15/17 UnionBanc FNMA 1,000,000.00 0.700%1,000,000.00 999,360.00 311.11 (640.00) 06/06/14 06/06/19 Multi-Bank Securities Negotiable CD 100,000.00 2.000%99,500.00 102,348.00 958.90 2,848.00 07/02/14 07/05/16 Multi-Bank Securities Negotiable CD 100,000.00 0.650%99,825.00 100,030.00 267.12 205.00 12/25/14 12/12/16 Multi-Bank Securities Negotiable CD 125,000.00 1.050%125,000.00 125,230.00 622.09 230.00 01/07/15 01/07/19 Multi-Bank Securities Negotiable CD 200,000.00 1.900%200,000.00 202,862.00 1,509.59 2,862.00 05/01/15 05/01/17 Multi-Bank Securities Negotiable CD 200,000.00 0.900%199,700.00 200,362.00 152.88 662.00 07/01/15 07/01/19 Multi-Bank Securities Negotiable CD 245,000.00 1.950%245,000.00 249,142.95 1,976.45 4,142.95 07/01/15 07/01/20 Multi-Bank Securities Negotiable CD 245,000.00 2.300%245,000.00 251,534.15 2,331.19 6,534.15 07/27/15 07/27/20 Multi-Bank Securities FHLB 1,000,000.00 2.000%1,000,000.00 1,002,040.00 6,888.89 2,040.00 08/07/15 07/31/17 Multi-Bank Securities Negotiable CD 200,000.00 1.300%200,000.00 200,666.00 861.92 666.00 09/17/15 09/17/18 Multi-Bank Securities Negotiable CD 245,000.00 1.650%245,000.00 248,307.50 830.65 3,307.50 10/15/15 10/19/15 Multi-Bank Securities FFCB 1,000,000.00 1.440%1,000,000.00 1,000,010.00 1,840.00 10.00 10/19/15 01/14/20 Multi-Bank Securities FFCB 500,000.00 1.500%499,875.00 499,605.00 2,854.17 (270.00) 10/21/15 10/16/17 Multi-Bank Securities Negotiable CD 245,000.00 1.150%244,877.50 246,087.80 347.36 1,210.30 10/27/15 10/27/20 Multi-Bank Securities FNMA 250,000.00 1.470%250,000.00 250,020.00 347.08 20.00 10/29/15 10/29/20 Multi-Bank Securities FFCB 1,000,000.00 1.680%1,000,000.00 992,760.00 1,493.33 (7,240.00) 11/09/15 11/09/20 Multi-Bank Securities FFCB 500,000.00 1.800%500,000.00 500,180.00 550.00 180.00 11/23/15 11/23/20 Multi-Bank Securities FFCB 1,000,000.00 1.875%1,000,000.00 1,002,140.00 416.67 2,140.00 11/25/15 11/25/20 Multi-Bank Securities FNMA 1,000,000.00 1.700%997,000.00 1,001,260.00 283.33 4,260.00 11/30/15 11/30/18 Multi-Bank Securities Negotiable CD 245,000.00 1.450%245,000.00 248,192.35 9.73 3,192.35 12/18/15 04/18/17 Multi-Bank Securities Negotiable CD 150,000.00 1.000%150,000.00 150,132.00 53.42 132.00 02/12/16 02/12/18 Multi-Bank Securities Negotiable CD 140,000.00 1.150%140,000.00 140,774.20 83.81 774.20 02/26/16 02/26/19 Multi-Bank Securities FHLMC 300,000.00 1.300%300,000.00 300,135.00 1,029.17 135.00 03/22/16 03/22/18 Multi-Bank Securities Negotiable CD 200,000.00 1.000%200,000.00 200,690.00 383.56 690.00 03/29/16 03/29/19 Multi-Bank Securities FHLMC 1,000,000.00 1.400%1,000,000.00 998,670.00 2,411.11 (1,330.00) 03/30/16 03/29/21 Multi-Bank Securities FHLMC 1,000,000.00 1.600%1,000,000.00 995,610.00 2,755.56 (4,390.00) 03/30/16 03/29/18 Multi-Bank Securities Negotiable CD 245,000.00 1.050%245,000.00 245,583.10 436.97 583.10 05/04/16 04/13/21 Multi-Bank Securities FHLB 500,000.00 1.480%499,413.25 497,295.00 986.67 (2,118.25) 05/12/16 05/12/21 Multi-Bank Securities FHLMC 435,000.00 1.750%435,000.00 434,478.00 401.77 (522.00) Total Investments 19,766,330.99$ 19,761,521.74 19,781,836.04 35,403.39 20,314.30 **Represents the LAIF monthly rate for May 2016 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 May 31, 2016 7 Type of Purchase Maturity Coupon Investment Investment Date Date Rate Par Value Cost FHLB 03/27/13 03/27/18 1.130%1,000,000.00 1,000,000.00 Callable 3/27/15, w/5 days notice, thereafter 3,6,9,12 FNMA 05/15/13 05/15/17 0.700%1,000,000.00 1,000,000.00 Callable 5/15/14 w/10 days notice, quarterly thereafter Negotiable CD 06/06/14 06/06/19 2.000%100,000.00 99,500.00 None Negotiable CD 07/02/14 07/05/16 0.650%100,000.00 99,825.00 None Negotiable CD 12/25/14 12/12/16 1.050%125,000.00 125,000.00 None Negotiable CD 01/07/15 01/07/19 1.900%200,000.00 200,000.00 None Negotiable CD 05/01/15 05/01/17 0.900%200,000.00 199,700.00 None Negotiable CD 07/01/15 07/01/19 1.950%245,000.00 245,000.00 None Negotiable CD 07/01/15 07/01/20 2.300%245,000.00 245,000.00 None FHLB 07/27/15 07/27/20 2.000%1,000,000.00 1,000,000.00 Callable 7/27/16 w/5 days notice, quarterly thereafter Negotiable CD 08/07/15 07/31/17 1.300%200,000.00 200,000.00 None Negotiable CD 09/17/15 09/17/18 1.650%245,000.00 245,000.00 None FFCB 10/15/15 10/15/19 1.440%1,000,000.00 1,000,000.00 Callable 1/15/16 w/5 days notice, anytime thereafter FFCB 10/19/15 01/14/20 1.500%500,000.00 499,875.00 Callable 1/14/16 w/5 days notice, anytime thereafter Negotiable CD 10/21/15 10/17/15 1.150%245,000.00 244,877.50 None FNMA 10/27/15 10/27/20 1.470%250,000.00 250,000.00 Callable 10/27/16 FFCB 10/29/15 10/29/20 1.680%1,000,000.00 1,000,000.00 Callable 1/29/16 w/5 days notice, anytime thereafter FFCB 11/09/15 11/09/20 1.800%500,000.00 500,000.00 Callable 11/9/16 w/5 days notice, anytime thereafter FFCB 11/23/15 11/23/20 1.875%1,000,000.00 1,000,000.00 Callable 11/23/16 w/5 days notice, anytime thereafter FNMA 11/25/15 11/25/20 1.700%1,000,000.00 997,000.00 Callable 11/25/16, one time only Negotiable CD 11/30/15 11/30/18 1.450%245,000.00 245,000.00 None Negotiable CD 12/18/15 04/18/17 1.000%150,000.00 150,000.00 None Negotiable CD 02/12/16 02/12/18 1.150%140,000.00 140,000.00 None FHLMC 02/26/16 02/26/19 1.300%300,000.00 300,000.00 Callable 5/26/16, one time only Negotiable CD 03/22/16 03/22/18 1.000%200,000.00 200,000.00 None FHLMC 03/29/16 03/29/19 1.400%1,000,000.00 1,000,000.00 Callable 6/29/16, one time only FHLMC 03/30/16 03/29/21 1.600%1,000,000.00 1,000,000.00 Callable 3/29/18, one time only Negotiable CD 03/30/16 03/29/18 1.050%245,000.00 245,000.00 None FHLB 05/04/16 04/13/21 1.480%500,000.00 499,413.25 Callable 4/13/18 w/5 days notice, anytime thereafter FHLMC 05/12/16 05/12/21 1.750%435,000.00 435,000.00 Callable 8/12/16, one time only Totals 14,370,000.00$ 14,365,190.75$ COSTA MESA SANITARY DISTRICT Call Schedule May 31, 2016 Call Features 8 Cost 50,136.76 In Thousands 1 - 180 Days 5,497$ 181 - 365 Days 1,475 1 - 2 Years 2,030 ########## 6,562.50 2 - 3 Years 1,990 ##########3 - 4 Years 1,844 4 - 5 Years 6,926 TOTAL 19,762$ COSTA MESA SANITARY DISTRICT MATURITIES DISTRIBUTION May 31, 2016 0% 10% 20% 30% 40% 50% 60% 70% 1 - 180 Days 181 - 365 Days 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 0 0 0 0 0 0 27.82% 7.46% 10.27%10.07%9.33% 35.05% 9 Costa Mesa Sanitary District Portfolio Interest Rate Information as of May 31, 2016 10 0.00% 0.20% 0.40% 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 Costa Mesa Sanitary District ... an Independent Special District Resolution No. 2016-885 - Board of Directors Health Insurance Item Number:12. Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2016-885 terminating non-CalPERS members health benefits. ATTACHMENTS: Description Type Resolution No. 2016-885 - Board of Directors Health Insurance 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 To: Board of Directors Via: Scott Carroll, General Manager From: Dyana Bojarski, Management Analyst II Date: June 23, 2016 Subject: Resolution No. 2016- 885 Terminating Board of Directors Health Insurance Summary On May 26, 2016, staff presented information to the Board of Directors regarding the Public Employees’ Medical and Hospital Care Act (PEMHCA) and the option for Board members to continue to participate in the District’s health insurance plan. The Board discussed this matter and directed staff to file a termination resolution for non- CalPERS members to be filed in July 2016 with an effective date of January 2017. Staff Recommendation That the Board of Directors adopt Resolution No. 2016- 885 terminating non-CalPERS members health benefits and direct staff to file resolution in July 2016 with an effective date of January 2017. Analysis Board Health Plan Background: The Board of Directors elected to participate in the District’s health insurance plan effective January 1, 2012. At that time, the Board adopted resolution number 2011-806, which created a Non-CalPERS health agreement between the District and CalPERS. This agreement allowed Non-CalPERS members, such as the Board of Directors, the option to participate in the District’s group health insurance plans, as administered through CalPERS. Under the Public Employees Medical and Hospital Care Act (PEMHCA), government agencies are required to pay a portion of public employees and elected officials health premiums. The District fulfills this requirement by contributing to the Districts Deferred Board of Directors June 23, 2016 Page 2 of 3 Compensation plan for each Board member. The District currently contributes $1.00 per month per Board Member which is $60 annually. Board Health Plan Status: Currently, there are no members of the Board participating in the health plan. Contractual Requirements: Section 599.515 of Title 2 of the California Code of Regulations addresses contract termination requirements and provides that a resolution to terminate PEMHCA participation must be filed with the Health Benefits Division of CalPERS no later than 60 days after the CalPERS Board of Administration approves and announces the health premium rates for the following year. The termination becomes effective at the end of the current contract year. The regulation further provides that the election to terminate is irrevocable after its filing with the Health Benefits Division and a resolution electing to be subject to PEMCHA may not be filed thereafter within five years of the termination date. Any future election to again become subject to PEMCHA cannot be filed thereafter for a period of five years. Strategic Plan Element Goal This item complies with Strategic Element 5.0, Administrative Management, which states: Objective: To create, maintain and implement policies and procedures to ensure sound and transparent management of the District. Strategy: We will conduct periodic reviews, refine and implement policies and procedures, and ensure the General Manager has the direction and tools necessary for successful District operations. Legal Review District Counsel has reviewed this report, the resolution and the law cited. Environmental Review Discussion, including any action taken involving the District’s health plan coverage, is an administrative matter and not a disturbance of the environment similar to grading or construction. The discussion is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There is no fiscal impact to adopting this resolution to eliminate Board members participating in the health plan. Board of Directors June 23, 2016 Page 3 of 3 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2016 Board of Directors meeting at District Headquarters and posted on the District’s website. Attachment: 1. Board Health Insurance Resolution No. 2016-885 Reviewed by: Wendy Hooper Davis Finance Manager TERMINATION – ALL OR ALL BY GROUP (REV. 5/2015) RESOLUTION NO. 2016-885 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ELECTING TO CEASE TO BE SUBJECT TO THE PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT WHEREAS, (1) Government Code Section 22938 provides that a contracting agency which has elected to be subject to the Public Employees' Medical and Hospital Care Act (the “Act”) may cease to be so subject by proper application by the contracting agency; and WHEREAS, (2) Costa Mesa Sanitary District (Non-PERS Board of Directors) is a contracting agency under Government Code Section 22920 and subject to the Act; Now, Therefore be it RESOLVED, (a) That the Costa Mesa Sanitary District elects to cease to be subject to the Act; and be it further RESOLVED, (b) That coverage under the Act shall cease on December 31, 2016.. Adopted at a regular meeting of the Costa Mesa Sanitary District at the Costa Mesa Sanitary District Headquarters, this 23rd day of June, 2016. Signed: _________________________________ President Signed: _________________________________ Secretary TERMINATION – ALL OR ALL BY GROUP (REV. 5/2015) INSTRUCTIONS This resolution form is the approved form designated by the California Public Employees' Retirement System (CalPERS). It should be used by a contracting agency subject to the Public Employees' Medical and Hospital Care Act (PEMHCA) when the agency desires to terminate coverage under the Act. If the resolution is filed within 60 days of premium rate notification of any year, coverage will cease on the last day of December (31) following the filing (date stamped as received by CalPERS; See address below). WHEREAS, (2) should be completed with full name of the contracting agency. RESOLVED, (a) should be completed with full name of the contracting agency. RESOLVED, (b) provides for the date that coverage under PEMHCA will cease -- the last day of December (31). Note that Section 599.515 (e) of the California Administrative Code (Board's Regulations) prohibits a new contract for Public Employees' Medical and Hospital Care coverage within five years of termination date. Because resolutions serve as a legally binding document, we require the original resolution, certified copy with original signatures, or a copy of the resolution with the agency’s raised seal. Upon receipt by the California Public Employees’ Retirement System, the termination resolution is IRREVOCABLE. For resolution processing, deliver to the following: Overnight Mail Service Regular Mail California Public Employees’ Retirement System Health Contracts Unit, EAMD 400 Q Street Sacramento, CA 95811 California Public Employees’ Retirement System Health Contracts Unit, EAMD PO BOX 942714 Sacramento, CA 94229-2714 The certification shown following the resolution is to be completed by those individuals authorized to sign for the contracting agency in legal actions and is to include the name of the executive body; i.e. Board of Directors, Board of Trustees, etc., the location and the date of signing. Costa Mesa Sanitary District ... an Independent Special District Resolution No. 2016-886 Ordering that Publication of Ordinance No. 114 Adopting a Revised Operations Code has Occurred Item Number:13. Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2016-886 ordering that publication of Ordinance No. 114 adopting a revised Operations Code has occurred. ATTACHMENTS: Description Type Resolution No. 2016-886 Ordering that Publication of Ordinance No. 114 Adopting a Revised Operations Code has Occurred Cover Memo RESOLUTION NO. 2016-886 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 114 ADOPTING A REVISED OPERATIONS CODE HAS OCCURRED WHEREAS, the Board of Directors on May 26, 2016 adopted Ordinance No. 114 adopting a revised Operations Code; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on June 22, 2016, 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. 114 adopting a revised operation code has occurred. PASSED and ADOPTED on this day of 2016. 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, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2016-886 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the day of____, 2016 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 2016. Noelani Middenway Clerk of the Costa Mesa Sanitary District Product(s): Daily Pilot, dailypilot.com, CApublicnotice.com_DP AdSize(s):2 Column, Run Date(s):Wednesday, June 22, 2016 Color Spec.B/W Preview Order ID:4264060 Page 1 of 3 6/16/2016 5:21:16 PMPrinted: GROSS PRICE * :$235.75 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Order ID:4264060 Page 2 of 3 6/16/2016 5:21:16 PMPrinted: GROSS PRICE * :$235.75 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Order ID:4264060 Page 3 of 3 6/16/2016 5:21:16 PMPrinted: GROSS PRICE * :$235.75 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Costa Mesa Sanitary District ... an Independent Special District Auditor Communication Letter Audit FY 2015-16 Item Number:14. Recommendation/Notes: Recommendation: That the Board of Directors approve and file the report. ATTACHMENTS: Description Type Auditor Communication Letter Audit FY 2015-16 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: Wendy Davis, Interim Finance Manager Date: June 23, 2016 Subject: Auditor Communication Letter Audit FY 2015-16 Summary On June 25, 2015, the Board approved the professional services agreement for independent audit services to Rogers, Anderson, Malody & Scott, LLP for the for the fiscal years ending June 30, 2015, 2016 and 2017. In preparation of the start of the June 30, 2016 audit, the auditors have issued an Auditor Communication Letter (Attachment A) disclosing their responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing Standards. The audit is schedule to begin on September 26, 2016 and the report will be issued towards the end of the calendar year. Staff Recommendation That the Board of Directors approve and file this report. Analysis The District has contracted for annual audit services with the firm Rogers, Anderson, Malody & Scott, LLP on June 25, 2015. This agreement covers the fiscal years ended June 30, 2015 through June 30, 2017, plus options for two one-year extensions. The purpose of the Auditor Communication Letter is to define the auditor’s responsibility, as described by professional standards, which is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. Generally Accepted Auditing Standards and Government Auditing Standards. The audit of our financial statements does not relieve Board of Directors June 23, 2016 Page 2 of 2 you or management of your responsibilities as stated in our engagement letter dated June 13, 2016 (Attachment B). Strategic Element & Goal This item supports achieving Strategic Element No. 7.0, Finances and Strategic Goal No. 7.4, Develop a Comprehensive Annual Financial Report. 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 of 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 Not applicable. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2016 Board of Directors regular meeting at District Headquarters and on District website. Alternative Actions 1. Refer the matter back to staff for additional information. Attachments A: Auditor Communication Letter Attachments B: Audit Engagement Letter 735 E. Carnegie Dr. Suite I 00 San Bernardino, CA 92408 909 889 087 I T 909 889 5361 F ramscpa. net PARTNERS Brenda L. Odie. CPA. MST Terry P. Shea. CPA Kirk A. Franks. CPA Scott W. Manno. CPA, CGMA Leena Shanbhag. CPA. MST. CGMA Bradferd A. Welebir, CPA, MBA. CGMA Jay H. Zercher. CPA (Partner Emeritus) Phillip H. Waller, CPA (Partner Emeritus) MANAGERS I STAFF Jenny Liu, CPA. MST Seong-Hyea Lee. CPA. MBA Charles De Simoni, CPA Nathan Statham. CPA MBA Gardenya Duran, CPA Juan Romero. CPA Ivan Gonzales. CPA, MSA Bnanna Schultz. CPA Daniel Hernandez, CPA. MBA Ryan Sm1th. CPA MEMBERS Amencan Institute of Certified Public Accountants PCPS The A/CPA Al/1ance (or CPA Flfms Governmental Aud1t Quality Center California Society of Certified Public Accountants ROGERS, ANDERSON, MALODY & SCOTT. LLP CERTIFIED PUBLI C ACCOUNTANTS, SIN CE 1948 To the Board of Directors Costa Mesa Sanitary District Costa Mesa, California June 13, 2016 This letter is provided in connection with our engagement to audit the fmancial statements of Costa Mesa Sanitary District (the District) as of and for the year ended June 30, 2016. Professional standards require that we communicate with you certain items including our responsibilities with regard to the fmancial statement audit and the planned scope and timing of our audit. Our Responsibilities As stated in our engagement letter dated June 13, 2016, we are responsible for conducting our audit in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and the State Controller's Minimum Audit Requirements and Reporting Guidelines for Special Districts for the purpose of forming and expressing opinions about whether the fmancial statements that have been prepared by management, with your oversight, are prepared, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the fmancial statements does not relieve you or management of your respective responsibilities. Our responsibility as it relates to required supplementary information, is to evaluate its presentation for the purpose of forming and expressing an opinion as to whether the information is fairly stated in all material respects in relation to the financial statements as a whole. Our responsibility for other information included in the document containing the audited financial statements and out report thereon includes only the information identified in our report. We have no responsibility for determining whether the statistical section and the introductory section are properly stated. Planned Scope of the Audit Our audit will include examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Our audit is designed to provide reasonable, but not absolute, assurance about whether the financial statements as a whole are free of material misstatement, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations. Because of this concept of reasonable assurance and because we will not examine all transactions, there is a risk that material misstatements may exist and not be detected by us. STABILITY. ACCURACY. TRUST. Board of Directors Costa Mesa Sanitary District June 13, 2016 Page2 Our audit will include obtaining an understanding of the entity and its environment, including its internal control, sufficient to assess the risks of material misstatement of the financial statements and as a basis for designing the nature, timing, and extent of further audit procedures. Our audit is not designed to express an opinion or provide assurance on internal control over financial reporting. However, we will communicate to you at the conclusion of our audit, significant matters that are relevant to your responsibilities in overseeing the financial reporting process, including any material weaknesses, significant deficiencies, and violation of laws or regulations that come to our attention. We plan to begin our audit on September 26,2016. Scott W. Manno, CPA, CGMA is the engagement partner and is responsible for supervising the engagement and signing the report. This information is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. Respectfully, San Bernardino, California June 13, 2016 735 E. Carnegie Dr. Suite I 00 San Bernardino. CA 92408 909 889 0871 T 909 889 536 I F ramscpa. net PARTNERS Brenda L. Odie, CPA. MST Terry P. Shea, CPA Kirk A. Franks, CPA Scott W. Manno. CPA. CGMA Leena Shanbhag, CPA. MST, CGMA Bradferd A. Welebir. CPA, MBA, CGMA Jay H. Zercher, CPA (Partner Emeritus) Phillip H. Wal\er, CPA (Partner Emeritus) MANAGERS I STAFF Jenny Liu, CPA. MST Seong-Hyea Lee, CPA, MBA Charles De Simoni. CPA Nathan Statham, CPA. MBA Brigitta Bartha. CPA Gardenya Duran, CPA Juan Romero, CPA Ivan Gonzales, CPA, MSA Bnanna Pascoe. CPA Daniel Hernandez, CPA, MBA Ryan Smith, CPA ME~1BERS American Institute of Certified Public Accountants PCPS The A/CPA Alliance for CPA Firms Governmental Audit Quality Center California Society of Certified Public Accountants ROGERS. ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 Costa Mesa Sanitary District 628 W. 19111 Street Costa Mesa, CA 92627 June 13,2016 The following represents our understanding of the services we will provide Costa Mesa Sanitary District. You have requested that we audit the financial statements of the business-type activities of Costa Mesa Sanitary District (the District), as of June 30, 2016, and for the year then ended and the related notes to the financial statements, which collectively comprise the District's basic financial statements. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will be conducted with the objective of our expressing an opinion on each opinion unit. Accounting principles generally accepted in the United States of America require that required supplementary information, such as Management's Discussion and Analysis, Schedule of the District's Propo11ionate Share of Plans' Net Pension Liability and Related Ratios as of the Measurement Date, Schedule of Plan Contributions, and Schedule of Funding Progress for Other Post-Employment Benefits Plan be presented to supplement the basic financial statements. Such 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 reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As pm1 of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency with management's responses to our inquiries. We wi ll not express an opinion or provide any form of assurance on the RSI. The following RSl is required by accounting principles generally accepted in the United States of America. This RSl will be subjected to ce11ain limited procedures but will not be audited: • Management's Discussion and Analysis • Schedule of the District's Prop011ionate Share of Plans' Net Pension Liability and Related Ratios as of the Measurement Date • Schedule of Plan Contributions • Schedule of Funding Progress for Other Post-Employment Benefits Plan STABILITY. ACCURACY. TRUST. Board of Directors Costa Mesa Sanitary District June 13, 2016 Page2 Also, the document we submit to you will include the following other additional information that will not be subjected to the auditing procedures applied in our audit of the financial statements: • Introductory Section of the Comprehensive Annual Financial Report • Statistical Section of the Comprehensive Annual Financial Report The Objective of an Audit The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in accordance with generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the third paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of the accounting records and other procedures we consider necessary to enable us to express such opinions. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis- of-matter or other-matter paragraphs. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not fanned opinions, we may decline to express opinions or to issue a report as a result of this engagement. In accordance with the requirements of Government Auditing Standards, we will also issue a written report describing the scope of our testing over internal control over financial reporting and over compliance with laws, regulations, and provisions of grants and contracts, including the results of that testing. However, providing an opinion on internal control and compliance will not be an objective of the audit and, therefore, no such opinion will be expressed. General Audit Procedures We will conduct our audit in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS), in accordance with Government Auditing Standards issued by the Comptroller General of the United States, and the State Controller's Minimum Audit Requirements and Reporting Guidelines for Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Internal Control Audit Procedures Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with U.S. GAAS, in accordance with Government Auditing Standards, and the State Controller's Minimum Audit Requirements and Reporting Guidelines for Special Districts. In making our risk assessments, we 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. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. Board of Directors Costa Mesa Sanitary District Compliance with Laws and Regulations June 13,2016 Page 3 As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District's compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Management Responsibilities Our audit will be conducted on the basis that management acknowledge and understand that they have responsibility: a. For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; b. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements; c. To provide us with: i. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation, and other matters; 11. Additional information that we may request from management for the purpose of the audit; and iii. Unrestricted access to persons within the District from whom we determine it necessary to obtain audit evidence. d. For including the auditor's report in any document containing financial statements that indicates that such financial statements have been audited by the District's auditor; e. For identifying and ensuring that the District complies with the laws and regulations applicable to its activities; and f. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole. With regard to the supplementary information referred to above, you acknowledge and understand your responsibility: (a) for the preparation of the supplementary information in accordance with the applicable criteria; (b) to provide us with the appropriate written representations regarding supplementary information; (c) to include our report on the supplementary information in any document that contains the supplementary information and that indicates that we have reported on such supplementary information; and (d) to present the supplementary information with the audited financial statements, or if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by you of the supplementary information and our report thereon. As part of our audit process, we will request from management, written confirmation concerning representations made to us in connection with the audit. Reporting We will issue a written report upon completion of our audit of the District's basic fmancial statements. Our report will be addressed to the Board of Directors of the District. We ca1111ot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions, add an emphasis-of-matter or other-matter paragraph(s), or withdraw from the engagement. Board of Directors Costa Mesa Sanitary District Other June 13,2016 Page 4 We understand that your employees will prepare all confirmations we request and will locate any documents or support for any other transactions we select for testing. Government Auditing Standards require that we document an assessment of the skills, knowledge, and experience of management, should we participate in any form of preparation of the basic financial statements and related schedules or disclosures as these actions are deemed a non-audit service. With respect to any nonattest services we perform, the District's management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Provisions of Engagement Administration, Timing and Fees Our firm may transmit confidential information that you provided us to third parties in order to facilitate delivering our services to you. We have obtained confidentiality agreements with all our service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have the appropriate procedures in place to prevent the unauthorized release of confidential information to others. We will remain responsible for the work provided by any third-party service providers used under this agreement. By your signature below, you consent to having confidential information transmitted to entities outside the firm. Please feel free to inquire if you would like additional information regarding the transmission of confidential information to entities outside the firm. During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications. We expect to begin our audit on September 26, 2016. Scott W. Manno, CPA, COMA, is the engagement partner for the audit services specified in this letter. His responsibilities include supervising the services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the audit report. Our fees for these services are $9,695. Invoices will be rendered monthly and are payable upon presentation. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. Further, we will be available during the year to consult with you on financial management and accounting matters of a routine nature. During the course of the audit we may observe opportunities for economy in, or improved controls over, your operations. We will bring such matters to the attention of the appropriate level of management, either orally or in writing. We agree to retain our audit documentation or work papers for a period of at least seven years from the date of our report. At the conclusion of our audit engagement, we will communicate to the Board of Directors of the District the following significant findings from the audit: • Our view about the qualitative aspects of the District's significant accounting practices; • Significant difficulties, if any, encountered during the audit; • Uncorrected misstatements, other than those we believe are trivial, if any; Board of Directors Costa Mesa Sanitary District • Disagreements with management, if any; June 13,2016 Page 5 • Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; • Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; · • Representations we requested from management; • Management's consultations with other accountants, if any; and • Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. The audit docwnentation for this engagement is the property of Rogers, Anderson, Malady & Scott, LLP, and constitutes confidential information. However, we may be requested to make certain audit documentation available to regulators pursuant to authority given to it by law or regulation, or to peer reviewers. If requested, access to such audit documentation will be provided under the supervision of Rogers, Anderson, Malady & Scott, LLP personnel. Furthermore, upon request, we may provide copies of selected audit documentation to regulators who may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. In accordance with the requirements of Government Auditing Standards, we have attached a copy of our latest external peer review report of our firm for your consideration and files. Please sign and return the original of this letter, and retain the copy for your records, to indicate your acknowledgment of, and agreement with, the arrangements for our audit of the financial statements including our respective responsibilities. We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff. RESPONSE: This letter correctly sets forth our understanding. Respectfully, ROGERS, ANDERSON, MALODY & SCOTT, LLP Scott W. Manno, CPA, CGMA Partner Acknowledged and agreed on behalf of Costa Mesa Sanitary District by: Name: ____________________________________________________________ __ Title: _________________________________ __ Dme: _______________________________________ __ Grant Bennett Associates A PROfESSIOHAl CORPORATION SYSTEiv[ REVIEW REPORT June 30.2015 To the owners of Rogers, Andcr:mn, ivlalody & Scott, LLP and the Peer Review Committee of the California Society of Ccrti tied Public Accountanl> We have reviewed the system of quality control for the accounting and audi.ting practice of Rogers, Anderson, Malody & Scott, LLP (the finn) in eflcct for the year ended November 30, 2014. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As part of our peer review, \Vt' considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. Thi! tlrm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all materia! respects. Our responsibility is to express an opinion on the design of the system of quality control and the tlrm 's compliance therewith based on our review. The nature. objectives, scope, limitations oC and the procedures performed in a System Review are described in the standards at \'<Ww.aicpa.org/rusumil\.er.Y· As required by the standards, engagements selected for review included engagements performed under the Gorernmenl Auditing Slandartls and audits of employee· benefit plans. In our opinion. the system of quality control tor the accounting and auditing practice of Rogers. Anderson, Malody & Scott, LLP in effect for the year ended November 30, 2014, has been suitably designed and complied with to provide the 11rm with reasonable assurance of performing and reporting in conformity with applicable professional stnndards in all material respects. Firms can receive a rating ofpass, pass with deflcienCJi(iesJ orfi1il. Rogers. t\ndcrson. i'vtalody & Scott LLP received a peer review rating of pass. GRANT BEl\l'ETT ASSOCIATES A PROFESSIOI\:AL CORPORATION Certi tied Pub He Accountants ~~~~~ 13 7 S Exposition Boulevard, Suite 2 30 Sacramento, CA 9581 S 916/922··5109 FAX 916/641-5200 P.O. Box 223096 Princeville. HI 96722 888/769-7323 Costa Mesa Sanitary District ... an Independent Special District Consideration of Solid Waste Annual Charges for FY 2016 -17 to be Collected with the General Taxes Item Number:15. Recommendation/Notes: A. Presentation of Report B. Open Public Hearing C. Close Public Hearing D. Recommendation: That the Board of Directors Adopt Resolution No. 2016-887 confirming the solid waste annual charges for FY 2016-17 to be collected with the general taxes and direct the District Clerk to File with County Auditor. ATTACHMENTS: Description Type Consideration of Solid Waste Annual Charges for FY 2016 -17 to be Collected with the General Taxes 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: Wendy H. Davis, Finance Manager Date: June 23, 2016 Subject: Consideration of Solid Waste Annual Charges and The Wastewater Annual Charges for FY 2016-17 to be Collected with the General Taxes Summary The District adopted the procedures authorized by Health and Safety Code Section 5470 that allows solid waste and wastewater charges to be collected on the assessment roll. To do so we must adopt a report assessing the charges against the parcels every year. The proposed resolutions make those assessments. Staff Recommendation That the Board of Directors: 1. Adopt Resolution No. 2016-887 confirming the solid waste annual charges for FY 2016-17 to be collected with the general taxes and direct the District Clerk to file with the County Auditor; and 2. Adopt Resolution No. 2016-888 confirming the wastewater annual charges for FY 2016-17 to be collected with the general taxes and direct the District Clerk to file with the County Auditor. Analysis The District has adopted the procedures provided in Health and Safety Code Section 5470 to allow our solid waste and wastewater collection charges to be collected with other taxes on the County assessment roll. To be able to do so, the District went through a mailed notice proceeding and the process was implemented in the early 1990s. Since that implementation, Proposition 218 was passed (Article XIIID of the California Constitution) which required that fees must be justified as proportional and in other ways proper whenever a new fee or increase is needed. That proceeding also requires mailed notice Board of Directors June 23, 2016 Page 2 of 3 and a protest hearing. This year no fees are being increased for solid waste, but fees for wastewater collection will increase by 2% for all classes. The fee increase is part of a five year Sewer Rate Plan that was approved by the Board of Directors on June 27, 2013. Prior to approving the Sewer Rate Plan, the District followed Proposition 218 procedures so said procedures are not required this year. However, we are still required to annually assess both the solid waste and wastewater charges by parcel for the Assessor. The procedure to assess parcels must be adopted after a noticed public hearing, in which notice is published two weeks before in an appropriate newspaper. The District will provide the County with an electronic version of a report which contains a description of each property receiving services and the charges. The real property may be described by reference to the assessor’s parcel map description. The hearing should be held to consider objections or protests to the assessments. Upon conclusion of the hearing, the Board may adopt the resolution approving the assessments to be filed with the Auditor. The Finance Manager must then file the assessments with the Auditor before August 10. She must confirm that the charges were adopted by the Board. The Auditor must then enter the charges against the parcels on the assessment roll. The charges are then collected by the Assessor and if the charges are not paid, there are procedures for liens, penalties and collections. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 7.0., Finances, 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 investments to provide financial resources to fund current and planned operations and projects.” Legal Review District Counsel reviewed this staff report and resolutions that are attached hereto. 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 of 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.” Board of Directors June 23, 2016 Page 3 of 3 Financial Review The adopted Solid Waste rate for the fiscal year 2016-17 is the same as the prior fiscal year. Therefore, the annual charge of $216 will generate an estimated $4,725,000 as reflected in the adopted budget. The adopted Wastewater rate increased by 2.00% over the prior fiscal year in accordance with the District’s Five Year Sewer Rate Plan study completed in December 2012. The annual charges are estimated to $5,500,000 as shown in the adopted budget. Public Notice Process Since the five year Wastewater Rate Plan was adopted on June 27, 2013 and rates are not being increased for solid waste, this matter does not require mailed protest hearing statements but is properly noticed with two weeks newspaper notice in accordance with Government Code Section 6066. Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2016 Board of Directors regular meeting at District Headquarters and on the District’s website www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff. Attachments: A: Resolution No. 2016-887 B: Resolution No. 2016-888 C: Proof of Publication -Trash D: Proof of Publication - Sewer Customer Class Per Month Per Year Single Family $18.00 $216.00 Solid Waste Collection Rates for FY 2016-17 Customer Class Existing New Residential (Per Dwelling Unit) Single Family Residential $88.79 $90.57 Multi-Family Residential $52.11 $53.15 Non-Residential (Per 1,000 sq. ft.) Commercial – Ave Strength $39.49 $40.28 Commercial – High Strength $43.07 $43.93 Industrial $101.38 $103.41 Wastewater Collection Rates for FY 2016-17 RESOLUTION NO. 2016-887 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT IMPOSING CHARGES ON THE ASSESSMENT ROLL FOR SOLID WASTE COLLECTION THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS: WHEREAS, the Board of Directors has adopted the procedures authorized by California Health and Safety Code Section 5470 et seq. for the collection of rates and charges for solid waste collection on the assessment roll; and WHEREAS, the Board of Directors has further complied with California Constitution, Article XIIID (Proposition 218) in establishing those fees, including a 45 day postcard notice each time those fees are increased; and WHEREAS, the Board of Directors does hereby desire to conduct its annual assessment of the properties within the District by adopting those charges in compliance with Health and Safety Code 5473; and WHEREAS, the Board of Directors has conducted a public hearing after providing notice in accordance with Health and Safety Code 5473.1; NOW THEREFORE, THE BOARD DOES HEREBY: 1. Adopt the charges for each parcel which constitutes the report assessing those properties on the assessment roll in accordance with Health and Safety Code Section 5473 which shall be filed with the District Clerk which describes every parcel receiving service and the amount of the charge for each year. 2. Direct the District Clerk to file with the Auditor a copy of the report prepared pursuant to Health and Safety Code Section 5473 with a statement endorsed on the report over her signature that the charges constituting the report has been finally adopted by the Board of Directors and the Auditor shall enter the amounts of the charges against the parcels on the current assessment roll. PASSED and ADOPTED on this day of 2016. ________________________________ ________________________________ 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, Noelani Middenway, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2016-887, was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the _______ day of ________________ 2016 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 ___________________2016. __________________________________ Clerk of the Costa Mesa Sanitary District Product(s): Daily Pilot, dailypilot.com, CApublicnotice.com_DP AdSize(s):1 Column, Run Date(s):Friday, June 10, 2016, Friday, June 17, 2016 Color Spec.B/W Preview Order ID:4233012 Page 1 of 1 6/2/2016 2:24:47 PMPrinted: GROSS PRICE * :$78.44 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Costa Mesa Sanitary District ... an Independent Special District Consideration of Wastewater Annual Charges for FY 2016-17 to be Collected with the General Taxes Item Number:16. Recommendation/Notes: A. Presentation of Report B. Open Public Hearing C. Close Public Hearing D. Recommendation: That the Board of Directors Adopts Resolution No. 2016-888 confirming the wastewater annual charges for FY 2016-17 to be collected with the general taxes and direct the District Clerk to File with County Auditor. ATTACHMENTS: Description Type Consideration of Wastewater Annual Charges for FY 2016-17 to be Collected with the General Taxes Cover Memo RESOLUTION NO. 2016-888 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT IMPOSING CHARGES ON THE ASSESSMENT ROLL FOR WASTEWATER COLLECTION THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS: WHEREAS, the Board of Directors has adopted the procedures authorized by California Health and Safety Code Section 5470 et seq. for the collection of rates and charges for wastewater collection on the assessment roll; and WHEREAS, the Board of Directors has further complied with California Constitution, Article XIIID (Proposition 218) in establishing those fees, including a 45 day postcard notice each time those fees are increased; and WHEREAS, the Board of Directors does hereby desire to conduct its annual assessment of the properties within the District by adopting those charges in compliance with Health and Safety Code 5473; and WHEREAS, the Board of Directors has conducted a public hearing after providing notice in accordance with Health and Safety Code 5473.1; NOW THEREFORE, THE BOARD DOES HEREBY: 1. Adopt the charges for each parcel which constitutes the report assessing those properties on the assessment roll in accordance with Health and Safety Code Section 5473 which shall be filed with the District Clerk which describes every parcel receiving service and the amount of the charge for each year. 2. Direct the District Clerk to file with the Auditor a copy of the report prepared pursuant to Health and Safety Code Section 5473 with a statement endorsed on the report over her signature that the charges constituting the report has been finally adopted by the Board of Directors and the Auditor shall enter the amounts of the charges against the parcels on the current assessment roll. PASSED and ADOPTED on this day of 2016. ________________________________ ________________________________ 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, Noelani Middenway, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2016-888, was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the _______ day of ________________ 2016 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 ___________________2016. __________________________________ Clerk of the Costa Mesa Sanitary District Product(s): Daily Pilot, dailypilot.com, CApublicnotice.com_DP AdSize(s):1 Column, Run Date(s):Friday, June 10, 2016, Friday, June 17, 2016 Color Spec.B/W Preview Order ID:4233240 Page 1 of 1 6/2/2016 3:05:21 PMPrinted: GROSS PRICE * :$78.44 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Costa Mesa Sanitary District ... an Independent Special District Adoption of Ordinance No. 115 Confirming Annual Charges for Solid Waste and Wastewater for FY 2016-17 Item Number:17. Recommendation/Notes: Recommendation: That the Board of Directors adopt Ordinance No. 115 confirming annual charges for Solid Waste and Wastewater for FY 2016-17. ATTACHMENTS: Description Type Adoption of Ordinance No. 115 Confirming Annual Charges for Solid Waste and Wastewater for FY 2016-17 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 From: Scott Carroll, General Manager Date: June 23, 2016 Subject: Ordinance No. 115 – CONFIRMING ANNUAL CHARGES FOR SOLID WASTE AND WASTEWATER FOR 2016-2017 Summary The attached ordinance for imposing solid waste and wastewater charge collections on the tax rolls. Staff Recommendation That the Board of Directors adopt Ordinance No. 115 confirming annual charges for the solid waste and wastewater for fiscal year 2016-2017. Analysis The attached ordinance for imposing solid waste and wastewater charge collections on the tax rolls. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 7.0., Finances, 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 investments to provide financial resources to fund current and planned operations and projects.” Legal Review District Counsel has reviewed and approved Ordinance No. 115. Board of Directors July 23, 2015 Page 2 of 2 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 of 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 There are no fiscal impacts to the District for adopting this ordinance. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2016 Board of Directors regular meeting at District headquarters and on District’s website. Attachment A: Ordinance No. 115 ORDINANCE NO. 115 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT CONFIRMING ANNUAL CHARGES FOR SOLID WASTE AND WASTEWATER FOR 2016-2017 WHEREAS, District has implemented the procedure set forth in Health & Safety Code section 5470 et seq. for imposing wastewater and solid waste charge collection on the tax rolls by duly-noticing and conducting a public hearing thereon; and WHEREAS, since District implemented that procedure, Proposition 218 was passed, adding Article XIIID to the California Constitution, and requiring a 45-day noticed public hearing before rates are imposed or increased; and WHEREAS, the law also allows a five year increase in rates if certain hearing procedures are employed; and WHEREAS, the District has adopted solid waste and wastewater charges in compliance therewith Article XIIID and the District has adopted a five year schedule of increases for wastewater rates in accordance with the law; and WHEREAS, the law requires an annual imposition of those rates on the current tax roll and a certification of a report to the Auditor that the imposition is accurate and that the charges are correctly set forth for each the parcel pursuant to Health & Safety Code section 5473; and WHEREAS, the law requires a noticed public hearing to provide a hearing for objections to the report by those to be assessed; and WHEREAS, the Board has taken these actions by separate resolutions for each charge since the Auditor prefers a resolution; and WHEREAS, some local finance experts believe these actions should be taken by ordinance since Health & Safety Code section 5471 provides that these charges may only be imposed by ordinance; NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District does hereby ORDAIN as follows: Ordinance No. 115 Section 1. That the charges set forth in Resolution Nos. 2016-887 and 2016- 888 for solid waste and wastewater charges for 2016-2017 fiscal year, respectively, are hereby confirmed by the adoption of this ordinance, which shall be kept on file with the District. Section 2. Should any part, clause or section of this Ordinance be declared by any Court of competent jurisdiction to be invalid, the remaining provisions of this Ordinance shall nevertheless be and remain in full force and effect and the Board of Directors of the Costa Mesa Sanitary District of Orange County, California, hereby declares that each and every section, clause, provision or part of this Ordinance would have been adopted and made a part of this Ordinance without the adoption of any portion thereof and that the invalidity of any part or provision hereof shall not in any way affect the validity or enforcement of the remaining provisions of this Ordinance that may stand on their own. Section 3. Pursuant to Health and Safety Code sections 6490 and 6491.3, the Clerk shall cause this ordinance or a summary thereof to be published in a newspaper of general circulation printed and published in the District according to law PASSED and ADOPTED this day of , 2016. Secretary President Legal Review: District Counsel // // // // // Ordinance No. 115 // STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Ordinance No. 115 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the day of , 2016 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 , 2016. Clerk of the Costa Mesa Sanitary District Costa Mesa Sanitary District ... an Independent Special District CMSD – Contribution Program Application – Estancia Boosters Stadium Banner Item Number:18. Recommendation/Notes: Recommendation: That the Board of Directors accepts the application from the Estancia High School Football Program and approve a monetary contribution of $500 for a stadium banner. ATTACHMENTS: Description Type CMSD – Contribution Program Application – Estancia Boosters Stadium Banner 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: Gina Terraneo, Management Analyst I Date: June 23, 2016 Subject: CMSD Contribution Program Application – Estancia Boosters Stadium Banner Summary On June 13, 2016, the District received a Contribution Program Eligibility Application from the Estancia High School Football Program. The program is seeking a monetary contribution from the District to continue hanging the banner at Jim Scott Stadium. Staff Recommendation That the Board of Directors accepts the application from the Estancia High School Football Program and approve a monetary contribution of $500 for a stadium banner. Analysis Jim Scott Stadium at Estancia High School is a widely used facility for high school athletics such as football (varsity and freshman games), soccer, and track and field. Pop Warner Football also plays in Jim Scott Stadium every Saturday during football season and the field is used for the annual senior class graduation ceremony. Due to the significant number of activities that occur at Jim Scott Stadium, staff believes that the 3’ x 5’ banner promoting organics recycling will continue to be beneficial to the District. The banner is already made and is currently displayed in the stadium in a highly visible location. Board of Directors March 24, 2016 Page 2 of 2 Strategic Plan Element & Goal This item complies with Strategic Element 3.0, Partnerships and Strategic Goal No. 3.5, Participating in community groups and civic organization activities. Legal Review District Counsel has reviewed this report. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting a District recycling program 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 There is sufficient funds budgeted in the FY 2015-16 Organics Recycling Public Outreach account for this $500 expense. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2016 Board of Directors regular meeting at District headquarters and on District’s website. Alternative Actions 1. Do not approve the $500 contribution. 2. Approve a contribution of a lesser amount. 3. Direct staff to report back with more information Attachments A: Contribution Program Eligibility Application – Estancia High School Football Program Reviewed by: Wendy Hooper Davis Finance Manager Costa Mesa Sanitary District ... an Independent Special District Budget Unappropriation - Westside Pump Station Abandonment Project #101 Item Number:19. Recommendation/Notes: Recommendation: That the Board of Directors approves the unappropriation of funds as follows: Account Account Number Increase Decrease Net Position (RE)20-200000-2990 $3,260,000 Westside PS Abandonment #101 20-200000-2990 $3,260,000 ATTACHMENTS: Description Type Budget Unappropriation - Westside Pump Station Abandonment Project #101 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: Wendy H. Davis, Finance Manager Date: June 23, 2016 Subject: Budget Unappropriation – Westside Pump Stations Abandonment Project #101 Summary At the May 25, 2016 Board of Directors meeting, staff informed the Board that the Orange County Sanitation District (OCSD) is not proceeding with their companion project to our Westside Pumping Stations Abandonment Project #101 for at least five or more years. CMSD has been setting aside funds for our Project #101 since 2006 and now has an available budget of approximately $3,260,000. Since the project is on hold indefinitely, staff is requesting the budgeted funds for Project #101 be unappropriated back to Net Position (Retained Earnings) Staff Recommendation That the Board of Directors approves the unappropriation of funds as follows: Account Account Number Increase Decrease Net Position (RE) 20-200000-2990 $3,260,000 Westside PS Abandonment #101 20-200000-2990 $3,260,000 Analysis At the May 25, 2016 Board of Directors meeting, staff informed the Board that the Orange County Sanitation District (OCSD) is not proceeding with their companion project to our Westside Pumping Stations Abandonment Project #101 for at least five or more years. OCSD has determined that the actual cost to do their project is more than double the original estimates. OCSD also has concerns with drilling under the Santa Ana Riverbed which may cause the project to be scraped altogether. Board of Directors June 23, 2016 Page 2 of 2 CMSD has been setting aside funds for our Project #101 since 2006 and now has an available budget of approximately $3,260,000. Since the project is on hold indefinitely, staff is requesting the budgeted funds for Project #101 be unappropriated back to Net Position (Retained Earnings) These funds maybe reappropriated at a later date to rehab the pump stations that were proposed for abandonment or for other projects requested by staff such as the Adams Pump Station Electrical Improvements. If OCSD does ever decide to go ahead with their project, CMSD staff would have to determine if the Westside Pump Stations Abandonment project is viable based on how much money has been spent to rehab the pump stations verses the cost to complete the abandonment. Staff would then look at funding the project based on the cost at that future date. 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 and 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 of 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 Sufficient funds are available in the Wastewater Retained Earnings account. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2016 Board of Directors study session meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff for additional information. Costa Mesa Sanitary District ... an Independent Special District California Special Districts Association 2016 Board Elections Item Number:20. Recommendation/Notes: Recommendation: That the Board of Directors elect a representative to the CSDA Board of Directors Southern Network Seat B and authorize President Scheafer to vote on the District's behalf. ATTACHMENTS: Description Type California Special Districts Association 2016 Board Elections Cover Memo Costa Mesa Sanitary District ... an Independent Special District Joint Study with Mesa Water District - Optimum Government Structure Item Number:21. Recommendation/Notes: Recommendation: That the Board of Directors give staff direction. ATTACHMENTS: Description Type Joint Study with Mesa Water District - Optimum Government Structure 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 23, 2016 Subject: Joint Study with Mesa Water District – Optimum Government Structure Summary Mesa Water District initiated a request to perform a joint study regarding the potential of creating an optimum government structure between our two agencies. Attached are Mesa Water’s written correspondences. Staff Recommendation That the Board of Directors give staff direction Analysis On April 22, 2016 President Scheafer received a letter from Mesa Water’s President, Shawn Dewane, suggesting CMSD and MWD perform a jointly funded study that will analyze and consider options to reorganize into an optimal government structure for both agencies. In order to achieve meaningful results from the study, there are many issues that need to be discussed and vetted together by the two agencies, as pointed out in President Scheafer’s letter dated June 2, 2016 (see attachment). Mesa Water’s Request for Proposal (RFP) for the study, which is attached hereto, needs further discussion between the agencies in order to address the issues identified in President Scheafer’s June 2nd letter. However, on June 16, 2016 Mesa Water District awarded a contract to Arcadis for $29,960 to perform the study. Mesa Water created a selection committee to review the proposals, but no one from CMSD was invited to participate on the committee. Mesa Water awarded a contract to Arcadis because of their recent relevant experience, excellent understanding of the Board of Directors June 23, 2016 Page 2 of 3 scope of work and the ability to meet schedule and budget parameters. Arcadis is projecting to complete the study in four weeks. According to Arcadis proposal, they are an international leader in the fields of infrastructure, water, buildings and environment with multidisciplinary staff that provides design, engineering and management services to public and private clients around the globe. The Board of Directors discussed partnering with Mesa Water at your June 14, 2016 study session and directed staff to bring back this issue for tonight’s meeting to consider CMSD options. Strategic Plan Element & Goal This item complies with Strategic Element 3, Partnerships and Strategic Goal No. 3.2, Strengthen our ties with local governments, special districts and educational institutions. Legal Review Not applicable. Environmental Review Participation with Mesa Water District in an Executive Committee with the purpose as stated is in essence participation in a feasibility or planning study, which are statutorily exempt from the requirements of CEQA. Financial Review The cost of the study is $29,960. If the Board decides to participate in the study the cost for CMSD is $14,980. This project is not budgeted so funds will have to be appropriated by the Board. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2016 Board of Directors study regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Appoint two directors and staff members to serve on Mesa Water District’s Executive Committee. 2. Do not appoint two directors and staff members to serve on Mesa Water District’s Executive Committee. 3. Do not approve participating in a joint venture with Mesa Water District on a study regarding an optimum government structure. Attachments A: Written Correspondences Board of Directors June 23, 2016 Page 3 of 3 Reviewed by: Wendy Hooper Davis Finance Manager BOARD OF DIRECTORS Shawn Dewane President Division V Ethan Temianka Vice President Division III Jim Atkinson Director Division IV Fred R. Bockmiller, Jr., P.E. Director Division I James R. Fisler Director Division II Paul E. Shoenberger, P.E. General Manager Phil Lauri, P.E. Assistant General Manager Coleen L. Monteleone Assistant General Manager District Secretary Andrew N. Hamilton District Treasurer Bowie, Arneson, Wiles & Giannone Legal Counsel Dedicated to Satisfying our Community’s Water Needs 1965 Placentia Avenue Costa Mesa, CA 92627 tel 949.631.1200 fax 949.574.1036 info@MesaWater.org MesaWater.org May 27, 2016 The Honorable Michael Scheafer President, Board of Directors Costa Mesa Sanitary District 628 West 19th Street Costa Mesa, CA 92627 Dear President Scheafer: Thank you for your letter, dated May 23, 2016, supporting the opportunity to collaboratively perform a study of the optimal government structure for serving customers of the Costa Mesa Sanitary District (CMSD) and Mesa Water District (Mesa Water®). We greatly appreciate CMSD’s willingness to engage in this joint effort. Mesa Water® recognizes that, in order to ensure transparency, this item will be discussed at your District’s headquarters on June 14, 2016 during a regularly scheduled and open to the public Study Session. At your request, we will postpone agendizing this item at our June 9, 2016 Board Meeting. Instead, we will hold an open Special Board Meeting on June 16, 2016 at 3:30 p.m., with an action item agendized to award the study to a consultant. Additionally, Mesa Water® accepts and sees value in your suggestion to form a joint committee. Our Executive Committee will be available to meet with you. This format allows more public openness and transparency than a typical ad hoc committee as we are subject to the agenda posting requirements. Mesa Water® would like to request that the first meeting take place prior to CMSD’s June 14, 2016 Study Session. We believe that two directors from each of our respective agencies, working collaboratively, can comprehensively address the concerns brought up in your May 23 letter regarding the specifics that such a joint study could necessitate. Mesa Water® wishes to address a few of those specifics prior to the first joint committee meeting by attaching to this letter a scope of work for the study and also a list of qualified consulting firms we invited to submit a proposal. We recognize, as your District does, very similar and rigorous guidelines in regards to budget timelines, procurement processes, and contract requirements and, as CMSD does, Mesa Water® takes all necessary steps in order to strictly abide by our Board’s directives and policies. As always, we look forward to your response in regards to this letter and to the attached scope of work. We will quickly accommodate the scheduling of a joint meeting and we thank you for your willingness to engage in the process of best serving the public. Sincerely, Shawn Dewane Paul E. Shoenberger, P.E. Mesa Water Board President Mesa Water General Manager c: CMSD Board of Directors Mesa Water Board of Directors Scott C. Carroll, CMSD General Manager Professional Services Request for Proposal Optimal Governance Structure Study of Costa Mesa Sanitary District and Mesa Water® District May 2016 Table of Contents i Table of Contents I. Background and Purpose 1 A. Mesa Water® Overview 1 B. Project Overview 1 C. Project Schedule 2 D. Key Project Elements 2 II. General Information 1 A. Proposal Submittal 1 B. Proposal Schedule 2 C. Project Inquiries 2 D. Contract and Terms 2 E. Sample Agreement 2 III. Proposal Requirements 3 A. General 3 B. Proposal Presentation 3 C. Proposal Format 4 IV. Evaluation Criteria and Selection Process 6 Attachments Appendix A: Professional Services Contract Appendix B: Professional Services Agreement Acceptance Forms Appendix C. Scope of Work Background and Purpose 1 I. Background and Purpose Mesa Water District (Mesa Water®) is requesting proposals from experienced firms to provide professional service for the Optimal Governance Structure Study (Study). The budgeted amount for services is $30,000. This Request for Proposal (RFP) provides information to enable firms to submit a proposal to provide professional services for the scope of work as detailed in Appendix C. A. Mesa Water® Overview Mesa Water®, a special district, was formed on January 1, 1960 as a result of the merger of four water agencies. Mesa Water® employs approximately 50 employees and is governed by a five-member Board of Directors elected by the constituents of five divisions within the service area. Mesa Water’s primary purpose is to manage and deliver water and water-related services to customers within its service area. Mesa Water® distributes a combination of imported water and local groundwater to approximately 23,500 retail accounts (population of over 108,000) in an 18 square mile area, which includes the city of Costa Mesa, parts of Newport Beach, and unincorporated areas of Orange County, including the John Wayne Airport. Mesa Water® predominately uses local groundwater, recycled water, and conservation to meet 100% of its demands. Mesa Water® operates five (5) clear water wells in the northern part of its service area, and treats amber-tinted water from the deep aquifer from two additional wells at the Mesa Water® Reliability Facility (MWRF). The MWRF wells are fully automated in the SCADA system. Mesa Water® has two storage reservoirs. Reservoirs 1 and 2 provide approximately 11 and 17 million gallons of storage, respectively. B. Project Overview The Costa Mesa Sanitary District and Mesa Water District (Mesa Water®) serve approximately the same service area. The object of this study is to analyze the potential benefits of combining the two Districts. A report documenting the analysis will be prepared. The detailed scope of work for this project is found in Appendix C. The Costa Mesa Sanitary District (CMSD) provides curbside trash collection and sewer services to residents in the city of Costa Mesa, portions of Newport Beach and unincorporated sections of Orange County. CMSD has received several awards, most notably the District of Distinction Accreditation by the Special District Background and Purpose 2 Leadership Foundation, one of the most prestigious local government awards in the state of California. Mesa Water® provides retail water service to almost all of the city of Costa Mesa, as well as portions of Newport Beach and unincorporated sections of Orange County including John Wayne Airport. Financially, Mesa Water® is AAA-rated by Standard and Poor’s and Fitch Ratings. Mesa Water® has received several awards including the District of Distinction Accreditation by the Special Districts Leadership Foundation. C. Project Schedule Notice to Proceed (NTP) to the selected firm is expected Thursday, June 16, 2016. • Report due four (4) weeks later on Thursday, July 14, 2016 D. Key Project Elements The detailed scope of work for this project is found in Appendix C. End of Section General Information 1 II. General Information This RFP information packet contains instructions governing the proposals to be submitted and the material to be included therein; a description of the project and specific services to be provided; general evaluation criteria; and other pertinent information. The submission of this proposal shall be considered evidence that the proposer has and is in acceptance with this RFP. Any modifications or changes made in this RFP will be made in writing in the form of an addendum issued by Mesa Water®. All proposers will receive written notice of any changes or modifications, which may be made by Mesa Water®. Oral communications from Mesa Water® personnel or others concerning this RFP shall not be binding on Mesa Water® and shall not in any way be considered as a commitment by Mesa Water®. A. Proposal Submittal Submit one electronic copy of the proposal via email or to the address listed below no later than Friday, June 10, 2016 at 12:00 p.m. After this date and time proposals will not be accepted. Faxed proposals will not be accepted. Postmarks will not be accepted in lieu of actual receipt. The proposed Fee Schedule is to be submitted with the proposal. Proposals are to be submitted to: Paul Shoenberger Mesa Water District 1965 Placentia Avenue, Costa Mesa, CA 92627 pauls@mesawater.org All materials submitted in accordance with this Request for Proposal (RFP) become the property of Mesa Water® and will not be returned. The material may become public record subject to the disclosure provisions of the Public Records Act (Government Code Section 6250 et seq.). General Information 2 B. Proposal Schedule The following proposal timeframe is listed below: Release of RFP Friday, May 27, 2016 Deadline for Project Inquiries Thursday, June 2, 2016 Response to Project Inquiries Friday, June 3, 2016 Proposals Due Date Friday, June 10, 2016 at 12:00 p.m. Tentative Date for Award Thursday, June 16, 2016 C. Project Inquiries Inquiries regarding this RFP must be requested via email at deniseg@mesawater.org. The deadline for inquiries is Thursday, June 2, 2016. D. Contract and Terms Prior to the commencement of services, the selected Consultant awarded the contract will be required to execute a Professional Services Agreement (Sample Agreement: Appendix A) between itself and Mesa Water®. The contract shall incorporate the scope of work defined herein and all RFP terms and conditions. Portions of the Consultant’s proposal may be considered for inclusion into the scope of work at Mesa Water’s discretion. The selected Consultant will not be permitted to levy any service or other charges against Mesa Water®, other than those listed in Appendix C Scope of Work, without being previously negotiated with Mesa Water®. E. Sample Agreement A Sample Agreement has been attached for review in Appendix A. This agreement is representative of the agreement that will be executed upon award to the successful Proposer. Mesa Water does not make changes to agreement terms and conditions. Submission of your proposal in response to this RFP constitutes your acceptance of all Terms & Conditions set forth in this Sample Agreement. Please indicate that the Sample Professional Services Agreement has been reviewed and will execute it with no exceptions if selected by signing and dating the Professional Services Agreement Acceptance Form (Appendix B). End of Section Proposal Requirements 3 III. Proposal Requirements A. General 1. All interested and qualified offerors are invited to submit a proposal for consideration. Submission of a proposal indicates that you have read and understand the entire RFP, to including all appendices, schedules, and addendums (as applicable), and that all concerns regarding the RFP have been satisfied. 2. Emphasis should be concentrated on conformance to the RFP instructions, responsiveness to the RFP requirements, and on completeness and clarity of content. 3. All proposals and materials submitted become property of Mesa Water®. 4. Responses are to be clear and complete. Be as specific as possible and include explanations where necessary. B. Proposal Presentation 1. Each page, including attachments, must be clearly and consecutively numbered at the bottom center of each page. 2. The technical proposal sections shall be clearly identified matching the outline in Section III-C. 3. Emailed proposals shall be send to the email address documented in Section II-A. Hand carried proposals may be delivered to the address documented in Section II-A during normal business hours, Monday through Friday, excluding holidays observed by Mesa Water®. Offerors are responsible for informing any commercial delivery service, if used, of all delivery requirements, and for ensuring that the address information appears on the outer envelope, container, or package used by such service. Proposal Requirements 4 C. Proposal Format Offerors must provide this information in the following format: Proposal Cover Page The outline below is to be used as the cover page for the proposal. These items must be fully completed and signed by an authorized officer of the business entity. • Name of Business/Company: • Business/Company Address: • Telephone Number(s): • Email Address: • Website Address: • Federal Tax ID Number: • Type of Business (Sole Proprietorship; Partnership; Corporation; or Other (Explain): • Number of Years in Business: • Name, title, telephone number and, if different, address of person(s) authorized to represent business entity: • Name, title, telephone number and, if different, address of person(s) authorized to sign contracts for the business entity: Section 1. Firm Qualifications This section should establish the firm’s ability to perform the required work to the expectations of Mesa Water®. Narrative should include the consulting firm’s background, including main business focus, length of time in business, number of employees, location that will primarily support the project. Areas to focus on include: • Introduction to the firm • Strength and stability of firm • Overview of the firm’s capabilities in project scope • Provide a description of three projects similar to this scope of work that have been completed for public agencies, water districts, federal government, non-profit organizations, or private companies. Include the name of the organization, and the address, name, email, and telephone number for the owner’s point of contact. Note the relevance of each project to the objectives of this project. Brief descriptions of additional projects that demonstrate the firm’s track Proposal Requirements 5 record to perform the required services may be included in tabular format. • Provide reasoning why the prospective firm would be the best choice for providing services as described in the RFP for Mesa Water®. Section 2. Staff Experience This section should introduce the key staff that the firm shall commit to the project. The section shall include: • An Organizational Chart that shows the Project Manager, Task Leaders, and other key team members. If the Project Manager is not an Officer of the firm, include a Project Director that is authorized to sign contracts for the firm. • Biographical sketches of each staff member that consultant expects to lead each task. Section 3. Scope of Work Understanding and Schedule The firm should clearly state its understanding of the project objectives, scope of work and anticipated deliverables. Section 4. Fee Schedule Fee Schedule for all items listed in this Request For Proposal (RFP) shall include all labor, transportation, administrative, overhead, incidentals, etc. and all other items as listed in the scope of work. Appendix A. Resumes of Key Staff Include resumes of key staff. Limit each resume to two (2) pages. Appendix B. Professional Services Agreement Acceptance Form Include the signed Professional Services Agreement form from Appendix B of this RFP. End of Section Evaluation Criteria and Selection Process 6 IV. Evaluation Criteria and Selection Process A Selection Team established by the Project Manager will review, evaluate, and score the proposals. The scoring system will be based on a scale of 1 to 5 with 5 being the most favorable score. The Evaluation Team shall evaluate the proposals based upon the following weighted criteria: Criteria Weight Company Qualifications and Experience 30 Staff Qualifications and Experience 30 Understanding of Scope of Work to be Performed 30 Proposal Quality 10 The Selection Team may ask for further clarification of the submitted cost prior to completing the selection rankings. Mesa Water® reserves the right to reject any and all proposals for any reason. Mesa Water® may not proceed, for any reason, with the selection process of a proposer if Mesa Water® deems it is in the best interest of the organization. Mesa Water® shall not be responsible to any of the submitters for the cost to prepare their proposal in response to this RFP. Proposals must include the entire scope of work as outlined in this RFP. End of Section Appendix A: Professional Services Contract Appendix A: Professional Services Contract Page 1 of 14 Click here to enter text., Click here to enter a date. PROFESSIONAL SERVICES CONTRACT THIS CONTRACT (Contract) is entered into on Click here to enter a date. by and between Mesa Water District, hereinafter called “Mesa Water®”, and Click here to enter text., hereinafter called “Consultant.” WHEREAS, Mesa Water® desires certain services hereinafter described and Consultant is capable of providing and desires to provide such service. NOW, THEREFORE, Mesa Water® and Consultant, for the consideration and upon the terms and conditions hereinafter specified, agree as follows: SECTION I SCOPE OF SERVICES 1.1 The services to be performed under this Contract are as described in Appendix One hereunto attached and by this reference made a part hereof. In the event that a conflict or contradiction is discovered between the proposal language and Mesa Water’s standard contract terms, Mesa Water’s standard contract terms shall prevail. Such service shall be performed by individuals as employees of the Consultant, as an independent consultant, and not by or as employees of Mesa Water®. SECTION II DUTIES OF CONSULTANT 2.1 Standards. All work performed by Consultant or under its direction shall be sufficient to meet the purposes specified therefor and shall be rendered in accordance with the accepted practices and to the standards of Consultant’s profession. All service hereunder shall be performed by employees or agents of Consultant who are experienced and skilled in their business and in accordance with the standards of work in their respective professions. Consultant’s findings, recommendations and professional advice shall be based on practices and procedures customary in its profession. Consultant shall provide additional services needed to correct any deficiency in its work at no additional costs or expense to Mesa Water®. 2.2 Additional Work. Consultant shall not undertake any work beyond the scope of this Contract unless such additional work is approved in advance and in writing by Mesa Water®. The cost of such additional work shall be reimbursed to Consultant by Mesa Water® on the same basis as provided in Section IV. 2.3 Security and Safety. If, in the prosecution of the work, it is necessary to conduct field operations, security and safety of the job site will be the responsibility of Consultant, excluding, nevertheless, the security and safety of any facility of Mesa Water® within the job site, but not under the control of Consultant. Page 2 of 14 Click here to enter text., Click here to enter a date. In providing its services hereunder, Consultant shall not be responsible for identification, handling, containment, abatement, or in any other respect, for any asbestos or hazardous material if such is present in connection with the project. In the event that Mesa Water® becomes aware of the presence of asbestos or hazardous material at the job site, Mesa Water® shall be responsible for complying with all applicable federal and state rules and regulations and shall immediately notify Consultant, which shall then be entitled to cease any of its services that may be affected by such presence, without any liability to Consultant arising therefrom. 2.4 Consultations. Consultant shall meet with Mesa Water® personnel, or third parties as necessary, on all matters connected with carrying out of Consultant’s services described in Appendix One. Such meetings shall be held at the request of either party hereto. Review and Mesa Water® approval of completed work shall be obtained monthly, or at such intervals as may be mutually agreed upon, during the course of this work. 2.5 Data. Consultant agrees that all data and information, including without limitation specifications, designs, drawings, reports, and blueprints, generated in the performance of this Contract and data and information that are specified to be delivered or which are, in fact, delivered pursuant to this Contract shall be and remain the sole property of Mesa Water®. Consultant understands and agrees that all rights under copyright and patent laws under this Contract to drawings, records, data or other work product belong to Mesa Water®, unless otherwise stated. Consultant hereby assigns any and all rights under copyright and patent law to Mesa Water® and agrees to assist Mesa Water® in perfecting the same. Consultant shall deliver all records, drawings, data, information and work product resulting from this Contract to Mesa Water® upon Mesa Water’s request and in any event upon the completion of all work hereunder or the termination or expiration hereof, whichever shall first occur, and shall be fully responsible for the care and protection thereof until such delivery. Except as otherwise provided in this Contract, said documents shall be delivered to Mesa Water® without additional cost to Mesa Water®. SECTION III DUTIES OF MESA WATER® 3.1 Provision of Information. Mesa Water® shall make available to Consultant all data and information in the possession of Mesa Water® which Mesa Water® deems necessary to the preparation of the work, and Mesa Water® shall actively aid and assist Consultant in obtaining such information from other agencies and individuals. Except as specifically provided in the scope of services, Consultant shall be entitled to rely upon the accuracy of data and information provided by Mesa Water® or others without independent review or evaluation. 3.2 Review of Progress of Work. Mesa Water® Management may authorize a staff person as a representative to confer with Consultant relative to Consultant’s services hereunder. The work in progress hereunder shall be reviewed from time to time by Page 3 of 14 Click here to enter text., Click here to enter a date. Mesa Water® at the discretion of Mesa Water® or upon the request of Consultant. If the work is satisfactory, it will be approved. If the work is not satisfactory, Mesa Water® will inform Consultant of the changes or revisions necessary to secure approval. SECTION IV FEES AND PAYMENTS 4.1 Payment Schedule. Payment for the services hereinabove described shall be made upon a schedule and within the limit or limits shown upon Appendix Two hereunto attached and made a part hereof, and such payment shall be considered as full compensation for all personnel, materials, supplies, and equipment used in carrying out the work. In the event that a conflict or contradiction is discovered between the proposal language and Mesa Water’s standard contract terms, Mesa Water’s standard contract terms shall prevail. 4.2 Statements. Unless otherwise specified in said Appendix Two, Consultant’s fees shall be payable on monthly statements; such statements shall give a detail of time worked by each class of employee, services (or tasks) performed, and the itemized expenses incurred and accompanied by receipts for which billing is made and shall contain the following affidavit signed by a principal of the firm of Consultant: “I hereby certify as principal of the firm of that the charge of $ as summarized above and shown in detail on the attachments is fair and reasonable, is in accordance with the terms of the Contract dated , 20 , and has not been previously paid.” Compensation is clearly outlined in Appendix Two. This information includes rates by individual/title grouping, the not-to-exceed amount of the Contract, whether the payments will be periodic or paid in a lump sum, and a list of expenses for which the Consultant(s) will, or will not, be reimbursed. Page 4 of 14 Click here to enter text., Click here to enter a date. SECTION V CHANGES IN WORK 5.1 Extra/Changed Work. Mesa Water® may order major changes in scope or character of the work, either decreasing or increasing the amount of Consultant’s services. Increased compensation for major changes shall be determined in accordance with Appendix Two hereof, or as otherwise agreed to, in writing, between the parties. 5.2 Change of Schedule. In the event that major changes are ordered, the schedule for completion as stated in Appendix Three hereto will be adjusted by negotiation between Consultant and Mesa Water®. 5.3 Change Authorization. No representative of Mesa Water®, other than the General Manager, is authorized to obligate Mesa Water® to pay the cost or value of services beyond the scope thereof as herein described. SECTION VI TIME OF BEGINNING AND SCHEDULE FOR COMPLETION 6.1 Commencement of Work. Consultant shall begin work upon receipt by it of written Notice to Proceed from Mesa Water® Management which said notice shall not be issued until after this Contract has been approved and authorized by Mesa Water®. 6.2 Completion Schedule. The schedule for completion of the work shall be as shown upon Appendix Three hereunto attached and made a part hereof. Consultant shall complete the work set forth in Appendix One in accordance with the schedule for completion shown in Appendix Three. 6.3 Suspension of Services. Mesa Water® may, at any time and without cause, suspend all or a portion of the services of Consultant for a period of not more than ninety (90) days by notice in writing to Consultant. Consultant shall resume the service on receipt from Mesa Water® of a notice of resumption of services. Any change to the contract, price or time of completion sought by Consultant as a result of suspension hereunder, shall be processed as a change order under the provisions of Section V hereof. SECTION VII DELAYS AND EXTENSIONS 7.1 Delays. In the event Consultant is delayed in performance of its services by circumstances beyond its control, it will be granted a reasonable adjustment in the Schedule for Completion as described in Appendix Three. All claims for adjustments in the Schedule for Completion must be submitted to Mesa Water® by Consultant within thirty (30) calendar days of the time of occurrence of circumstances necessitating the adjustment. Page 5 of 14 Click here to enter text., Click here to enter a date. SECTION VIII TERMINATION 8.1 Termination by Owner. Mesa Water® may terminate this Contract at any time by giving Consultant written notice thereof. Upon termination, Consultant will be paid for that portion of the work completed prior to termination. 8.2 Termination by Consultant. Consultant may terminate this Contract upon written notice to Mesa Water® should Mesa Water® fail to fulfill duties as set forth in Section III. 8.3 Effect Upon Records. Upon termination, Consultant shall turn over to Mesa Water® all of the documents, records, papers and other work product related to this Contract, which shall, at the option of Mesa Water®, become Mesa Water® property. Mesa Water® shall not be liable for any costs other than as specified in this Contract. 8.4 Examination of Records. Mesa Water® shall, until the expiration of three (3) years after final payment under this Contract, have access to and the right to examine any directly pertinent books, documents, papers and records of Consultant involving transactions related to this Contract. 8.5 Change in Consultant’s Status. The financial capability and status of Consultant were substantial inducements for Mesa Water® to enter into this Contract. Therefore, Consultant shall, and hereby specifically acknowledges its duty to do so, notify Mesa Water® of any significant financial change, or significant change in status of Consultant within seven (7) days of significant financial change or significant change in status. “Significant financial change” or “significant change in status” shall mean the following: • Any action(s) by which Consultant shall consolidate with, merge, or convert the Consultant into another (partnership or corporation), • Any filing of bankruptcy by the Consultant (or any of its partners), • Loss of Consultant’s professional qualifications, and • The fact that Consultant is no longer in compliance with federal or state equal opportunity laws. SECTION IX ATTORNEYS’ FEES 9.1 If either party brings an action or proceeding against the other party by reason of default of any term or condition of this Contract, or otherwise arising out of this Contract, the prevailing party in such action or proceeding shall be entitled to recover, as an element of its cost of suit, and not as damages, reasonable attorneys’ fees, which shall be payable whether or not such action is prosecuted to judgment. The “prevailing party” as the term is used herein, shall be the party who is entitled to recover costs of suit, whether or not such suit proceeds to final judgment, and shall include, without limitation, a party who dismisses an action for recovery hereunder in exchange for payment of the Page 6 of 14 Click here to enter text., Click here to enter a date. sums allegedly due, performance of covenants allegedly breached, or considerations substantially equal to the relief sought in such action. SECTION X INDEMNIFICATION/HOLD HARMLESS 10.1 Consultant shall be solely responsible for any injury or damage to any person or property howsoever occasioned by or arising out of Consultant’s willful misconduct or negligent performance of the work hereunder. Consultant shall assume the defense and indemnify and hold harmless Mesa Water®, its officers, directors, agents and employees, from every claim, expense, liability, or payment for any such injury or damage. SECTION XI INSURANCE 11.1 Insurance requirements shall be as set forth in Appendix Four hereto attached. SECTION XII MISCELLANEOUS PROVISIONS 12.1 Gratuities. Consultant warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities to Mesa Water’s employees, agents, or representatives with a view toward securing this Contract or securing favorable treatment with respect thereto. 12.2 Interpretation. The parties hereto acknowledge and agree that each has been given the opportunity to independently review this Contract with legal counsel, and/or has the requisite experience and sophistication to understand, interpret, and agree to the particular language of the provisions of this Contract. 12.3 Project Manager. Mesa Water® Management reserves the right to approve the project manager assigned by Consultant to said work. 12.4 Limitation on Assignment. This Contract shall not be assigned without first obtaining the express written consent of Mesa Water®. 12.5 Status of Consultant. Consultant is employed to render a professional service only and any payments made to Consultant are compensation solely for such services as Consultant may render. Consultant shall at all times retain the status of an independent consultant with Mesa Water®. Nothing within this Contract shall be construed so as to make Consultant, or any of its agents or employees, the employee(s), partner(s), or joint venturer(s) of or with Mesa Water®. Page 7 of 14 Click here to enter text., Click here to enter a date. 12.6 Licensing. Consultant warrants that they have complied, and shall comply, with any and all applicable state licensing requirements. 12.7 Entire Contract. This Contract supersedes any and all other Contracts, either oral or in writing, between the parties hereto with respect to the subject matter hereof, and no other Contract, statement, or promise related to the subject matter of this Contract which is not contained in this Contract shall be valid or binding. 12.8 Ownership of Work. All work performed pursuant hereto shall, upon completion, become the property of Mesa Water®. In the event the work is not completed, the completed portions thereof shall become the property of Mesa Water®. 12.9 Waiver. Either party to this Contract may specifically and expressly waive, in writing, compliance by the other party hereto with any term, condition or requirements set forth in this Contract. Either party to this Contract may specifically and expressly waive, in writing, any breach of any term, condition, or requirement of this Contract by the other party hereto. However, in the event that either party makes or gives such a waiver, such action shall not constitute a further or continuing waiver of any preceding or succeeding breach, or requirement of compliance with, the same or any other provision or contractual requirement, unless a specific statement to the contrary is contained within such waiver. The waiving party may, at any time thereafter, require further compliance by the other party hereto with the requirements or provisions of this Contract that have been so waived. The consent of one party to any act by the other party for which such written consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such written consent for the same or similar acts in the future. No waiver or consent shall be implied from the silence or from the failure of any party to an act, except as otherwise specified in this Contract. 12.10 Notices. Any notice, request, demand, consent or approval, or other communication required or permitted hereunder by law, shall be validly given and made only if in writing and delivered in person to an officer or duly authorized representative of the party, or deposited in the United States mail, first class postage prepaid, and addressed to the party for whom intended as follows: To Mesa Water®: Mesa Water District Attention: General Manager 1965 Placentia Costa Mesa, CA 92627 To Consultant: Click here to enter text. Attention: Click here to enter name. Click here to enter address. Click here to enter City/State/Zip. 12.11 Jurisdiction. The parties hereby understand and agree that this Contract, and the attachments hereto, have been negotiated and executed in the State of California and shall be governed by, and construed under, the laws of the State of California. The parties hereto do expressly agree that in the event of a dispute concerning the terms Page 8 of 14 Click here to enter text., Click here to enter a date. hereof, venue for any legal action shall be with the appropriate court of the County of Orange, State of California. 12.12 Amendments. No addition to, or modification of, any provision contained in this Contract shall be effective unless fully set forth in writing signed by the authorized representative of both of the parties hereto. 12.13 Signatories. The signatories hereto do warrant that they are appropriately authorized to execute this Contract on behalf of the party for which they signed. IN WITNESS WHEREOF, the parties have executed this Contract the day first hereinabove written. CONSULTANT MESA WATER DISTRICT By: By: Principal Paul E. Shoenberger, P.E., General Manager Print Name: Board Approved: Click here to enter the Board Approved date. Page 9 of 14 Click here to enter text., Click here to enter a date. APPENDIX ONE SCOPE OF SERVICES In the event that a conflict or contradiction is discovered between the proposal language and Mesa Water’s standard contract terms, Mesa Water’s standard contract terms shall prevail. The description of services should very clearly define the exact nature of the service, or services, to be provided by the consultant and/or an end product (where the Contract provides for an end product rather than a specific list of services). It is very important to include as much specificity as possible relative to the services to be provided so that in the event of a dispute or a disagreement over the nature of the services to be provided, a specific listing or description can be referred to. Page 10 of 14 Click here to enter text., Click here to enter a date. APPENDIX TWO FEE SCHEDULE In the event that a conflict or contradiction is discovered between the proposal language and Mesa Water’s standard contract terms, Mesa Water’s standard contract terms shall prevail. Mesa Water’s payment terms are Net 30. Clearly spell out the amount and type of compensation to be paid to the consultant. This should include rates by individual/title grouping, the not-to-exceed amount of the contract, whether the payments will be periodic or paid in a lump sum, hourly rates if applicable, retentions, if any, and a list of expenses for which the consultant will, or will not, be reimbursed. Page 11 of 14 Click here to enter text., Click here to enter a date. APPENDIX THREE SCHEDULE FOR COMPLETION Clearly list the timeline for progress upon the work and for completion of the project(s) that are expected. If the Professional Services Contract is open-ended (i.e., for provision of services from time-to-time without a finite final completion date), then Appendix Three should specify a term at which it will conclude or at which the parties could decide to renew the contract. Under Section VIII, the Contract may be terminated at the election of either party. If some other form of termination provision is desired, this should be included in Section VIII of the Contract. Page 12 of 14 Click here to enter text., Click here to enter a date. APPENDIX FOUR INSURANCE REQUIREMENTS The following coverages (below) will be provided by Consultant and maintained on behalf of Mesa Water®, its directors, officers, employees, and authorized volunteers in accordance with the requirements set forth herein. Commercial General Liability Insurance. Primary coverage shall be provided on Insurance Services Office CGL form No. CG 00 01 11 85 or 88. Policy limits shall be no less than one million dollars per occurrence for all coverages and two million dollars general aggregate applicable exclusively to this project. There shall be no cross liability exclusion. Coverage shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance (primary or excess) available to Mesa Water®, its directors, officers, employees, and authorized volunteers. General liability insurance will not be limited to coverage for the vicarious liability or the supervisory role of the additional insureds. Coverage for the additional insureds shall apply to the fullest extent permitted by law excepting only the active negligence of Mesa Water® as established by agreement between the parties or by the findings of a court of competent jurisdiction. Mesa Water®, its directors, officers, employees, and authorized volunteers shall be added as insureds using Insurance Services Office additional insured endorsement form CG 20 10 11 85. Business Auto Coverage. Primary coverage shall be written on Insurance Services Office Business Auto Coverage form CA 00 01 06 92 including owned, non-owned, and hired autos. Limits shall be no less than one million dollars per accident. This policy shall be scheduled as underlying insurance to any umbrella policy as applicable. If Consultant owns no autos, a non-owned auto endorsement to the General Liability policy described above is acceptable. Workers’ Compensation/Employer’s Liability shall be written on a policy form providing workers’ compensation statutory benefits as required by law. Employer’s liability limits shall be no less than one million dollars per accident or disease. Unless otherwise agreed, this policy shall be endorsed to waive any right of subrogation as respects Mesa Water®, its directors, officers, employees, and authorized volunteers. By the signatures hereunder, each party certifies that it is aware of the provision of Section 3700 of the California Labor Code which requires every employer (and their consultants and subcontractors) to be insured against liability for workers’ compensation or to undertake self insurance in accordance with the provisions of that code, and it will comply with such provisions before commencing the performance of the work of this Contract. Professional Liability or Errors and Omissions Insurance. Coverage as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors, or omissions of the consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this Contract. Any policy exclusions affecting work performed under this Contract (such as lead, asbestos, testing, soil work, laboratory analysis, etc.) must be deleted. The policy limit shall be no less than one million dollars per claim and in the aggregate. The limit must be separate from other project limits and applicable to this project only. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. Coverage shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance (primary or excess) available to Mesa Page 13 of 14 Click here to enter text., Click here to enter a date. Water®, its directors, officers, employees, and authorized volunteers. If the work contemplated by this Contract includes any asbestos removal, identification or other treatment, any failure to detect asbestos exclusion must be deleted. Exclusions for any claims arising out of suspected deficiency, or the malfunction of any products, process technique, system, or piece of equipment sold, procured, or otherwise furnished, is to be deleted. General conditions pertaining to provision of insurance coverage. Consultant and Mesa Water® agree to the following provisions regarding insurance provided: 1. Consultant agrees to provide insurance in accordance with the requirements set forth here. If Consultant uses existing coverage to comply with these requirements and that coverage does not meet the requirements set forth herein, Consultant agrees to amend, supplement, or endorse the existing coverage to do so. In the event any policy of insurance required under this Contract does not comply with these requirements or is canceled and not replaced, Mesa Water® has the right, but not the duty, to obtain the insurance it deems necessary and Consultant will promptly reimburse any premium paid by Mesa Water®. 2. All insurance coverage and limits provided by Consultant and available or applicable to this Contract are intended to apply to the full extent of the policies. Nothing contained in this Contract or any other contract relating to Mesa Water® or its operations limits the application of such insurance coverage. 3. Unless otherwise approved by Mesa Water®, insurance provided pursuant to these requirements shall be written by insurers authorized to do business in the State of California and with a minimum “Best’s” Insurance Guide rating of A-:VII. Self-insurance will not be considered to comply with these insurance specifications. 4. Any “self-insured retention” must be declared and approved by Mesa Water®. Mesa Water® reserves the right to require the self-insured retention to be eliminated or replaced by a deductible. Self-funding, policy fronting, or other mechanisms to avoid risk transfer are not acceptable. If Consultant has such a program, Consultant must fully disclose such program to Mesa Water® before any notice to proceed is issued. 5. Consultant agrees to provide evidence of the insurance required herein, satisfactory to Mesa Water®, consisting of: a) certificate(s) of insurance evidencing all of the coverages required and, b) an additional insured endorsement to Consultant’s general liability policy using Insurance Services Office form CG 20 10 11 85. Consultant agrees, upon request by Mesa Water®, to provide complete, certified copies of any policies required by this section, within ten days of such request. Any actual or alleged failure on the part of Mesa Water® or any other additional insured under these requirements to obtain proof of insurance required under this Contract in no way waives any right or remedy of Mesa Water® or any additional insured, in this or any other regard. 6. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to Mesa Water® of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificate(s) to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation or that any party will Page 14 of 14 Click here to enter text., Click here to enter a date. “endeavor (as opposed to being required) to comply with the requirements of the certificate(s).” 7. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Contract have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to Mesa Water® within five (5) days of the expiration of the coverages. Appendix B: Professional Services Agreement Acceptance Forms Appendix B: Professional Services Agreement Acceptance Forms Appendix B: Professional Services Agreement Acceptance Forms Appendix B: Professional Services Agreement Acceptance Form Firm Name: ________________________________________________________ Address: ___________________________________________________________ City ________________________ State ________ Zip Code ______________ Telephone: __________________________ Fax: ________________________ I have reviewed the RFP and Professional Services Agreement in their entirety. Our firm will execute the Professional Services Agreement with no exceptions. Name of Authorized Representative: _____________________________________ Signature of Authorized Representative: ____________________________ Date: _____________________________ Appendix C: Scope of Work Appendix C Scope of Work Optimal Governance Structure Study Task 1- Agencies Overview: Consultant will review and summarize the current context of CMSD and Mesa Water® including governance, services provided, service area, staff organization and finances. This information will be summarized in a report. Information sources for this effort will include material from each agency’s website, organization charts, budget and CAFR documents, job descriptions and other pertinent documents or studies made available. Task 2 – Combined Agency Organization Evaluation: Consultant will estimate a potential organization structure for combining the two agencies. Consultant will review the detail in the budget documents, organization charts, job descriptions, reports or other documents available to identify potential efficiencies that may result from a combining of services. The potential economies of scale, opportunities for efficiencies, and potential cost-savings from combining governance and departmental/operational functions will be evaluated and included in the report. Evaluate the hard assets (i.e., owned equipment, fleet, etc.) and facilities needs of the combined agency to see if any excess equipment or real estate is identified. Task 3 – Combined Agency Outsourcing Evaluation: Consultant will review services of the combined agency and identify services that are currently performed in-house by either agency which are commonly contracted out by other similar agencies. Also, include a review of any previously contracted services that have recently been brought in-house. This would include the Costa Mesa Sanitary District Sewer Main Maintenance Cleaning and Lift Station Maintenance Services. Task 4 – Combined Agency Financial Evaluation: Based upon the current Budgets, CAFRs, and other pertinent documents or studies made available, consultant will analyze the financial fundamentals of the separate and combined agencies. A baseline of current revenues and expenses, debt and debt ratios, and reserves will be determined. Determine the same financial parameters for the combined agency. Determine the reserves and/or revenue needed for the combined agency to be AAA-rated. Mesa Water® has set a financial goal of being AAA-rated as defined by a 600 days cash-on-hand target. Determine the existing reserves or revenue levels that are above or below the target amount. If excess reserves, revenue or real estate is identified, develop financial scenarios to bring the levels to target, including rate reductions or rebates. Provide any other financial summary or potential cost-saving ideas uncovered. Task 5 - Document Evaluation and Results: Consultant will prepare a report from the findings in Task 1 through Task 4. A summary of potential benefits will be provided. Explain the consultant’s analysis approach, methods, and results using graphs and charts where necessary. Costa Mesa Sanitary District ... an Independent Special District Project Status Report Item Number:22. Recommendation/Notes: Recommendation: That the Board of Directors receive and file the report. ATTACHMENTS: Description Type Project Status Report Cover Memo COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN: Preliminary Civil Engineering - $131,047; Estimated construction cost - $5.8 million9/3/14 - Additional Preliminary Engineering Allocation - $10,000ESTIMATED COMPLETION DATE:3/25/2019STATUS REPORT: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 10/26/10 - Provided OCSD with copies of all PS plans. OCSD hiring a consultant to prepare an EIR and alignment study in 2011. CMSD requested a joint EIR.12/20/10 - No change.01/27/11 - No change.4/28/11 - Staff met with 3 OCSD consultants to explain project.OCSD's first phase will be EIR & alignment study. CMSD requested OCSD EIR cover the CMSD work. 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.12/15/11 - OCSD staff attended CMSD SSC meeting on 11/8/11 to discuss project timeline.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.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.4/16/12 - The Board is considering the District Engineer's proposal to perform the Preliminary Engineering.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 Abandonment7/1/2012Rob Hamers, District Engineer9/23/10 - OCSD was provided with plans, maps and flow figures for their review. OCSD will be hiring a consultant to prepare the design 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.02/24/11 - No change. Staff will be contacting OCSD to review their status. 11/18/10 - No change.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 DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:#101 West Side Pumping Station Abandonment5/24/12 - The Board approved the District's Engineer's proposal for the Preliminary Engineering.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.8/20/12 - OCSD's surveyors are working on the topography.9/20/12 - The District Engineer has begun working with the topography provided by OCSD's surveyors and aerial photogrammist.10/25/12 - The District Engineer is continuing working with the topography provided by OCSD's surveyors.11/15/12 - The District Engineer is continuing working with the topography provided by OCSD's surveyors.12/20/12 - The District Engineer is continuing work on the preliminary engineering.1/24/13 - The District Engineer is continuing work on the preliminary engineering.2/28/13 - The District Engineer is continuing work on the preliminary engineering.3/28/13 - The District Engineer provided a narrative and map explaining the District's work to be included in the EIR NOP.4/18/13 - The District Engineer is continuing work on the preliminary engineering.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.7/25/13 - The District Engineer will be providing the preliminary budget at the 7/25/13 regular meeting.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.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 abandonment facilities to be in operation.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.1/22/15 - Engineering staff has finalized the construction cost estimate and presented the estimate to OCSD. Next step is CMSD financial planning COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:#101 West Side Pumping Station Abandonment followed by consideration of the MOU from OCSD.2/26/15 - Project financing is being discussed at the 2/10/15 study session.3/26/15 - The Board of Directors will be considering the MOU with OCSD and Newport Beach at the regular meeting.4/23/15 - The Board approved the MOU with OCSD at the March 2015 Board meeting; the District Engineer is finalizing the final engineering design phase budgets.5/28/15 - The Board discussed the final engineering phase at the 5/12/15 study session.6/25/15 - The District Engineer has started the consultant selection process for the final engineering phase.7/23/15 -District is waiting for NB and OCSD approval of agreement. Board approved District Engineer administration contract.8/27/15 - No change in status.9/17/15 - The General Manager and District Engineer have a meeting with OCSD in mid September to discuss the project.10/22/15 - OCSD study of Fairview Trunk is underway to determine if it requires upsizing even if 6-19 and #101 are implemented. Results will be available end of November.11/19/15 - No change in status.1/28/16 - Staff is awaiting the results of the OCSD Study of the OCSD Fairview Road trunk.2/25/16 - The General Manager and District Engineer are meeting with OCSD officials on 2/10/16 to discuss the recent flow study.3/24/16 - OCSD Staff stated on 2/10/16 they intend to go ahead with the abandonment sewer project.4/28/16- OCSD Staff presented a new engineer's estimate of project costs showing an increase from $15 million to $28 million; OCSD Staff continues to support the project.5/26/16 - The OCSD Operations Committee meeting of 5/4/16 included discussion on whether to proceed on the 6-19 project, which is OCSD's portion of this project.6/23/16 - CMSD is awaiting OCSD's formal decision on whether OCSD will continue the 6-19 project. Account NumberEncumbrances Balance#101 3,446,446$ 183,058$ 677$ 2,500$ 3,260,211$ Total 3,446,446$ 183,058$ 677$ 2,500$ 3,260,211$ Approved Proj Budget June 30, 2015 Accumulated Cost Current Year Expenditures COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN: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: $100,000ESTIMATED COMPLETION DATE:STATUS REPORT: Low Bid 196-D - $196,7093/28/13 - 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 Mesa9/26/13 - 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 $64,815.9/20/12 - 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, whJan - 156/28/12 - Plans and specs are 30% complete.11/15/12 - The District Engineer is working with the cities of Costa Mesa and Newport Beach regarding abNewport Beach regarding above-ground emergency equipment.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.above-ground emergency equipment.Newport Beach regarding above-ground emergency equipment.Newport Beach regarding above-ground emergency equipment.District Engineer is also finalizing the plans for the standby diesel generator at the Canyon pumping station.#196 Installation of Backup Power and Pumping CapabilityRob Hamers, District EngineerInstall backup standby diesel generator at two pumping stations and install backup pumping April 23, 201205/24/12 - District's Engineer's office is in design of the backup pumping systems while another consultant, PDE, is in design on the standby diesel g COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:#196 Installation of Backup Power and Pumping Capability12/19/13 - 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.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 1/20/15.2/26/15 - #196D Irvine bid opening is on 2/16/15 meeting agenda; 196-C 23rd is in design.3/26/15 - The pre-construction meeting for 196-D Irvine is 3/18/15; 196-C 23rd is still in design.4/23/15 - The Kohler generator for #196-D Irvine has been ordered; #196-C 23rd is still in design.5/28/15- The notice to proceed for #196-D was issued and construction should be complete by the end of June 2015; #196-C 23rd is in plan check at Newport Beach.6/25/15 - Cosntruction is progressing at Irvine P.S. #196-D. The plans for 23rd P.S. generator are in plan check at Newport Beach.7/23/15 - Construction is 90% complete at Irvine P.S. #196-D. District Engineer is working with NB on plan check items for 23rd P.S. #196-C.8/27/15 - Construction is 95% complete at Irvine P.S. 196-D; District Engineer is waiting for decision on plan check items from Newport Beach on 23rd PS #196C.9/17/15 - The new exhaust system is being installed at Irvine PS #196-D; consultants are completing the plan check corrections from N.B. on 23rd PS #196-C.10/22/15 - Installation complete at 196-D Irvine; exhaust system in, new gas company meter in; arranging start up; #196C 23rd out to bid; bid opening 11/24/15.11/19/15 - Generator at 196-D Irvine is on line; Generator at 196-C 23rd is out to bid.12/17/15 - #196-D Irvine Generator is nearly complete. #196-C 23rd generator is ready for award of the construction contact; low bid was $179,400.1/28/16 - #196-D Irvine PS Generator is complete except for AQMD processing; #196-C 23rd PS Generator will soon start construction. 2/25/16 - #196-D - The Board accepted the improvements at the 1/28/16 regular meeting. AQMD processing will occur soon. COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:#196 Installation of Backup Power and Pumping Capability2/25/16 - #196-C- The permit from Newport Beach is ready. The eletrical engineer is reviewing the generator submittal.3/24/16 - #196-C - 23rd Pump Station Generator - construction is 50% complete.4/28/16 - #196-C 23rd Pump Station Generator is 80% complete; generator should arrive approximately 4/18/16.5/26/16 - #196-C 23rd Pump Station was completed on May 6, 2016.6/23/16 - The Board accepted the improvements for #196-C 23rd PS at the May 2016 regular meeting.Account NumberEncumbrances Balance#196-A Elden, Victoria, Mendoza 790,000$ 770,845$ 19$ -$ 19,135$ #196-B Canyon 115,000 115,335 - - (335) #196-C 23rd Street 340,000 21,061 226,580 15,077 77,283 #196-D Irvine405,000 145,245 242,414 4,950 12,392 Total 1,650,000$ 1,052,486$ 469,013$ 20,027$ 108,474$ Approved Project Budget June 30, 2015 Accumulated Cost Current Year Expenditures COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION:The Wilson, Victoria, Mendoza, and South Coast Plaza force mains are being replaced with new force mains.BEGIN DESIGN:Civil Design - $82,593ESTIMATED COMPLETION DATE:Late 2014STATUS REPORT:12/19/13 The design phase has begun.1/23/14 - The design phase is continuing.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.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 was 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 FM1/22/15 - 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.2/26/15 - Harbor force main improvements will be constructed first as the top priority; design phase is continuing.3/26/15 - Alternate construction methods for Harbor force main are being investigated.4/23/15 - The Harbor Force Main will be bid by itself with two alternate methods.5/28/15 - The Harbor Force Main plans are being completed.6/25/15 - The Harbor Force Main plans are in plan check at the City of Costa Mesa.7/23/15 - Plans for Harbor Force Main are 95% complete.8/27/15 - Request for utility atlas sheets was sent for three utilities to verify clearances from excavation areas.#200 Rehabilitation of Four Force MainsRob Hamers, District EngineerDec-13 COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-20169/17/15- Utility locations in the areas of the boring and receiving pits are being finalized.10/22/15 - Finalizing jack and bore details in Wilson Street crossing Harbor Blvd. Considering notification program.11/19/15 - The specifications are being completed.12/17/15 - The specifications and bid items are being completed.1/28/16 - The project will soon be placed out to bid.2/25/16 - #200-B - The Harbor force main is out to bid with bid opening on 3/1/16.3/24/16 - #200-B Harbor Force Main bid opening was 3/1/16 and low bid was $247,720. Project award is on the agenda.4/28/16 - #200-B Harbor Force Main construction will begin approximately 6/1/16; #200-C South Coast Plaza Force Main; a conceptual design has been finalized.5/26/16 - #200-B Harbor Force Main will begin construction in early June; #200-C South Coast Plaza Force Main will soon be out to bid.6/23/16 - #200-B Habor Force Main; the traffic control plans and detour plans were submitted to the City; 200-C SCP Force Main; the project will soon be out to bid.Approved June 30, 2015 Current YearAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance#200-A Mendoza 209,000$ 209,068$ -$ -$ (68)$ #200-B Harbor 821,868$ -$ 12,378$ 7,500$ 801,991$ Total 1,030,868$ 209,068$ 12,378$ 7,500$ 801,923$ COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION:BEGIN DESIGN:Estimated Project budget: Civil Design $11,483.50 plus $6,500 for new construction #196-A Godwin pump and requests by field crew. Construction - Engineer's Estimate: $431,210ESTIMATED COMPLETION DATE:December, 2014STATUS REPORT: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.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.3/27/14 - The need for additional funding has moved the project into the next 2-year budget cycle, beginning 2015-2016; strategic improvements are being included as extra work in Project #196-A.4/24/14 - The strategic improvements for this project were added to Project #196-A.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 2015-2016 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. 2/26/15 - Project will be budgeted for 2015-16 or 2016-17.3/26/15 - No change in status.4/23/15 - No change in status.5/28/15 - No change in status.6/25/15 - No change in status.7/23/15 - No change in status.8/27/15 - No change in status.#202 Elden Piping and Valve ReplacementRob Hamers, District EngineerReplace 37-year old piping and valves outside Elden PumpingOctober, 2013 COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-20169/17/15- No change in status.10/22/15 - Design phase will be re-started in mid October 2015.11/19/15- Design phase re-started with meeting with field crew.12/17/15 - The plans are nearly complete; 2nd meeting held with field crew.1/28/16 - The project will soon be placed out to bid.2/25/16 - The project is out to bid with bid opening on 3/1/16.3/24/16 - Bid opening was 3/1/16 and low bid was $259,300. Projet award is on the agenda.4/28/16 - Construction will begin approximately 6/1/16.5/26/16 - Construction began in mid May, 2016.6/23/16 - The valves, piping, couplings, and other parts have been ordered.Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance#202479,000$ 10,567$ 7,829$ -$ 460,604$ Total479,000$ 10,567$ 7,829$ -$ 460,604$ COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:Civil Design -ESTIMATED COMPLETION DATE:STATUS REPORT:5/1/15 - Paid City invoice for fiscal years 2011 thru 2013 for a total of 446 Manholes8/27/15 - Three invoices for recent work were received from the City.9/17/15 - The District pays invoices when receiv3ed and number of manholes verified.10/22/15 - No change in status.11/19/15 - No change in status.12/17/15 - No change in status.1/28/16 - No change in status.2/25/16 - No change in status.3/24/16 - The City will be sending a new request for manhole adjustment reimbursement.4/28/16 - The City transmitted a preliminary invoice for adjusting 69 manhole frames and covers.5/26/16 - No change in status.6/23/16 - The CMSD Senior Inspector is finalizing quantities and costs with the City of Costa Mesa for adjusting manholes.Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201309-4300 340,500$ 174,401$ 31,617$ -$ 134,483$ 340,500$ 174,401$ 31,617$ -$ 134,483$ #309 City Manhole Adjustment ProgramRob Hamers, District EngineerManholes adjusted by City of Costa Mesa during street contruction COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:Civil Design $22,610ESTIMATED COMPLETION DATE:STATUS REPORT:8/27/15 - The design phase has been started.9/17/15- The design phase is 15% complete.10/22/15 - Design phase is 50% complete.11/19/15 - Design phase is 80% complete.12/17/15 - Design phase is 90% complete.1/28/16 - Plans were submitted to OCFCD for a permit to use the Santa Ana Delhi Channel for access.2/25/16 - The project is out to bid with bid opening on 3/1/16.3/24/16 - Bid opening was 3/1/16 and low bid was $218,458. Project award is on the agenda.4/28/16 - Preconstruction meeting was held 4/1/16; preliminary work will begin 4/7/16.5/26/16 - Construction is underway.6/23/16 - All sections of pipe have been lined; contractor now installing liners in manholes.Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201310-4300 353,000$ -$ 28,098$ -$ 324,902$ 353,000$ -$ 28,098$ -$ 324,902$ #310 Indus Sewer and MH LiningRob Hamers, District EngineerInsall liner in 10" gravity sewer and manholes. COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:Civil Design -Sep-13ESTIMATED COMPLETION DATE:STATUS REPORT: 9/17/15 The design phase has been started.10/22/15 - The project is out to bid with bid opening 10/19/2015.11/19/15 - Low bid for 43 manholes is $47,420; contract being executed.12/17/15 - The pre-construction meeting is 12/11/15. 1/28/16 - Construction is underway.2/25/16 - Construction is continuing.3/24/16 - Construction is continuing.4/28/16 - Construction is complete and the project is on the regular meeting agenda for acceptance of improvements.5/26/16 - The project is complete.6/23/16 - No change in status. Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201311-4300 150,000$ -$ 82,829$ 5,005$ 62,166$ 150,000$ -$ 82,829$ 5,005$ 62,166$ #311 Manhole Surface Repair Program - Phase IIRob Hamers, District Engineer COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:Civil Design -In General Eng.ESTIMATED COMPLETION DATE:STATUS REPORT: 9/17/15 Informal bid opening is 9/8/15.10/22/15 - Contract awarded to Schuler Constructors; pump and equipment ordered.11/19/15 - Contract being executed.12/17/15 - All pumping equipment has been received and contractor is preparing schedule.1/28/16 - Construction is underway.2/25/16 - Construction was completed on 1/28/16.3/24/16 - The Board accepted the iomprovements at the February 2016 regular meeting.4/28/16 - An electrical contractor will be replacing the electrical enclosure with a new stainless steel enclosure.5/26/16 - The electrical enclosure is being manufactured.6/23/16 - The new electrical enclosure is being manufactured. Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201312-4300 110,000$ -$ 89,581$ -$ 20,419$ 110,000$ -$ 89,581$ -$ 20,419$ #312 Aviemore Pump Station RehabilitationRob Hamers, District EngineerReplace existing pumps, bases, valves, piping, guide rails, and by-pass valves. COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:ESTIMATED COMPLETION DATE:STATUS REPORT:4/28/16 - 18 Grade 5 pipes found during CCTV project are being put out for emergency repair or replacement..5/26/16 - Project was awarded to Robotic Sewer Solutions for low bid of $25,000.6/23/16 - Phase I improvements are complete; Phase 2 low bid was $45,290 and the contract is being prepared. Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201314-4300 557,000$ -$ -$ -$ 557,000$ 557,000$ -$ -$ -$ 557,000$ #314 Grade 5 Pipe RehabilitationRob Hamers, District EngineerReplace existing piping deemed Grade 5 in CCTV project. COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:PROJECT MANAGER:DESCRIPTION: BEGIN DESIGN:Apr-16cluding survey $17,290 Electrical Engineering Design $8,590ESTIMATED COMPLETION DATE:November 2016STATUS REPORT:5/26/16 - Design phase is underway.6/23/16 - Formal request sent to Mesa Verde Country Club (MVCC) to locate generator on MVCC property. Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201315-4300 157,000$ -$ 1,068$ -$ 155,933$ 157,000$ -$ 1,068$ -$ 155,933$ #315 Relocation of HQ Generator to Gisler Pump StationRob Hamers, District EngineerRelocation of HQ Generator to Gisler Pump Station Costa Mesa Sanitary District ... an Independent Special District Conflict of Interest Report Item Number:23. Recommendation/Notes: Nothing to report at this time. Costa Mesa Sanitary District ... an Independent Special District APN 415-102-17 (Parcel North of 1580-1590 Scenic Avenue) - Request for Vacation/Abandonment of CMSD Sewer and Easement Item Number:24. Recommendation/Notes: Recommendation: That the Board of Directors: 1. Accept Option 2, as agreed to by the buyer/developer, as the preferred alternative. 2. Approve and record the quitclaim deed with the legal description and map as attachments. 3. Require the buyer/developer to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement. 4. Discuss whether requiring compensation from the property owner for the quitclaim is appropriate. ATTACHMENTS: Description Type APN 415-102-17 (Parcel North of 1580-1590 Scenic Avenue) - Request for Vacation/Abandonment of CMSD Sewer and Easement 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 To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 23, 2016 Subject: APN 415-102-17 (Parcel North of 1580-1590 Scenic Avenue) Request for Vacation/Abandonment of CMSD Sewer and Easement Summary The property owner CJ Segerstrom & Sons, Inc., is requesting the District vacate a portion of an easement and sewer main to facilitate construction of a new commercial building on APN 415-102-17 located in the Harbor Gateway complex. Enclosed please find a letter of request, concept plan, and a title report that were discussed at the study session on June 14, 2016 with representatives from the land owner and from the buyer/developer. At the study session, the buyer/developer confirmed the limits of abandonment as shown in Option 2 was acceptable in accordance with the reasons provided at the study session and repeated below. In order for the Board to take formal action, the developer has submitted a legal description and map that describe and show the limits of the Option 2 abandonment. The attorney for the District has provided a quitclaim deed that will be used to effect the abandonment and the legal description and map will be attachments to the quitclaim deed. The District Engineer has verified the legal description and map as provided by the land owner’s engineer is true and accurate. Option 2, which staff recommends, represents vacating 290 feet of 8-inch diameter sewer main and two sewer manholes, although the buyer/developer of the parcel will be required to construct a new end of line manhole. The current owner, CJ Segerstrom, has confirmed this portion of the property has always been vacant and is Board of Directors June 23, 2016 Page 2 of 4 currently an open field. Segerstrom originally planned a series of small buildings but never followed through with the development. Staff Recommendation That the Board of Directors: 1. Accept Option 2, as agreed to by the buyer/developer, as the preferred alternative. 2. Approve and record the quitclaim deed with the legal description and map as attachments. 3. Require the buyer/developer to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement. 4. Discuss whether requiring compensation from the property owner for the quitclaim is appropriate. Analysis Harbor Gateway is generally the area west of Harbor Blvd, east of Hyland Avenue and between MacArthur Blvd and Sunflower Avenue in the north south direction. The sewers were constructed in 1981 when the District’s policy was to have every property’s sewer lateral be directly connected to a District main, thereby resulting in quite a few CMSD sewer mains being located in District easements in the Harbor Gateway area. Today, so long as there is an HOA or Maintenance Association that can perform maintenance, on-site sewers serving multiple properties may be private. When the Harbor Gateway area was developed in 1981, the CMSD sewers and manholes were constructed by the developer and donated to the District along with the sewer easements. No compensation exchanged hands at that time. Reasons for Option 2 • Option 1 leaves in place an 8” sewer main at less than 1% slope for just one building. There will be insufficient flow to keep the wastewater moving at the minimum velocity. • There will be a CMSD sewer manhole right outside the proposed building and it will have to be plugged and sealed at all times to prevent odor. The Option 1 request is being made by the buyer/developer of the property (not CJ Segerstrom) and it is believed the buyer/developer does not fully understand the ramifications of having a sewer manhole directly adjacent to the proposed building. Board of Directors June 23, 2016 Page 3 of 4 • As part of grading for the new building, over-excavation and re-compaction of the soil above the sewer main will occur and is a likely cause for damage to the sewer main because the sewer main will be approximately 2.5’ below the bottom of grading, assuming 4’ deep over-excavation and re-compaction. • Option 1 does not save the developer much in terms of construction cost since Option 2 involves construction of a short run of 4” or 6” private sewer in the dirt. • Option 2 allows the developer to achieve 1% or more slope on the sewer, which is needed for self-cleaning. • The above points indicate from a future operations and maintenance standpoint and in an attempt to minimize sewer odors, Option 2 is far better for the development even though it will cost the developer slightly more than Option 1. The requirement to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement is a standard condition that the buyer/developer understands and agreed to in the study session. Strategic Plan Element & Goal This item complies with Strategic Plan Element 1.0, Sewer Infrastructure and Goal No. 1.4 System Wide Sewer Replacement and Repair Program. The strategy for this Strategic Element is: ”We will do this by the careful management of the collection infrastructure using prudent planning and maintenance, with financial strategies to maintain sufficient capacity and respond to changing regulatory demands.” Legal Review This easement and sewer main were built to serve the development. If the easement and sewer main are no longer of use to the District, it can abandon or vacate the easement and sewer main. If there will be a substitute line and sewer facilities installed, those will presumably be dedicated to the District to take the place of these facilities. Abandonment would then not be a gift of public funds as we would receive replacement facilities and an easement. This should be set forth in an Agreement so that there is a quid pro quo for the abandonment. The quitclaim deed should not be recorded unless the new deed is received for recording. If the existing pipe is left in place, we should have an indemnification provision as part of the same recorded agreement so that we are not responsible for the pipe left remaining. The developer or other person requesting this action should pay for all the staff, engineering and legal costs involved so that the rate payers are not paying for this work that benefits individual property owners/developers. Board of Directors June 23, 2016 Page 4 of 4 Environmental Review Vacating a portion of a sewer main, manholes, and easement is categorically exempt from the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” “minor alteration of existing public or private structures”, as further described in Section (b) as “Existing facilities of both investor and publicly-owned utilities used to provide .... sewerage ...”. Financial Review The 290 linear feet (LF) of 8 inch sewer line and two manholes that the District is being asked to vacate were donated in 1982 as part of larger contributed capital donation. The book value recorded for the 290 LF and manholes in the District’s fixed assets was $45,774 and $8,147, respectively. These assets have a 60 year life and have been depreciated for the last 34 years, therefore the current value of both assets on the District’s books is $23,273. If the Board moves forward with the vacation request than the financial statements would show a loss on the disposal of assets for $23,273. The Board may determine that this is not a gift of public funds since the assets were originally donated and there is value in not having to clean, maintain or replace these sewer line and manholes in the future. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2016 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to negotiate receiving compensation from developer for the current value of the proposed vacated infrastructure. 2. Approve Option 1. 3. Do not approve either options and direct staff to report back with more information. Attachments: A Letter of Request B Title Report C Concept Map D Quitclaim Deed, Legal Description, Map Reviewed by: Wendy Hooper Davis Finance Manager Chicago Title Company 4041 MacArthur, Suite 400, Newport Beach, CA 92660 Phone: (949) 724-3117 ● Fax: (949) 258-5237 CLTA Preliminary Report Form – Modified (11/17/06)Page 1 Issuing Policies of Chicago Title Insurance Company ORDER NO.: 00046720-002-LB Chicago Title Company 4041 MacArthur Blvd., Suite 400 Newport Beach, CA 92660 ATTN: Lorri Beasley Email: beasleyl@ctt.com Escrow/Customer Phone: (949) 724-3100 Title Officer: Susie George Title Officer Phone: (949) 724-3117 Title Officer Fax: (949) 258-5237 Title Officer Email: CTCommercialtitleNewport@ctt.com PROPERTY:N/A, COSTA MESA, CA 92626 PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Chicago Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner’s Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The policy(s) of title insurance to be issued hereunder will be policy(s) of Chicago Title Insurance Company, a Nebraska Corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land. Chicago Title Company By: Authorized Signature Chicago Title Company 4041 MacArthur, Suite 400, Newport Beach, CA 92660 Phone: (949) 724-3117 ● Fax: (949) 258-5237 CLTA Preliminary Report Form – Modified (11/17/06)Page 2 PRELIMINARY REPORT EFFECTIVE DATE:May 4, 2016 at 7:30 a.m. ORDER NO.: 00046720-002-LB The form of policy or policies of title insurance contemplated by this report is: ALTA Extended Owner's Policy (6-17-06) ALTA Extended Loan Policy (6-17-06) 1.THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2.TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: C. J. SEGERSTROM & SONS, a Partnership 3.THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: See Exhibit A attached hereto and made a part hereof. PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB CLTA Preliminary Report Form – Modified (11/17/06)Page 3 EXHIBIT “A” LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA MESA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCELS 1 AND 2 AS DEPICTED ON EXHIBIT “B” OF LOT LINE ADJUSTMENT NO. LL 92-02, RECORDED MAY 15, 1992 AS INSTRUMENT NO. 92-324395 OF OFFICIAL RECORDS. APN: 415-102-01 THROUGH 17 PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB CLTA Preliminary Report Form – Modified (11/17/06)Page 4 EXCEPTIONS AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: A.Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2016-2017. Tax Identification No.: 415-102-01 through -17 B.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-01 Fiscal Year:2015-2016 1st Installment:$69.12, Paid 2nd Installment:$69.12, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 8 C.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-02 Fiscal Year:2015-2016 1st Installment:$69.12, Paid 2nd Installment:$69.12, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 9 D.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-03 Fiscal Year:2015-2016 1st Installment:$71.15, Paid 2nd Installment:$71.15, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 12 E.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-04 Fiscal Year:2015-2016 1st Installment:$67.09, Paid 2nd Installment:$67.09, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 13 PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB EXCEPTIONS (Continued) CLTA Preliminary Report Form – Modified (11/17/06)Page 5 F.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-05 Fiscal Year:2015-2016 1st Installment:$103.79, Paid 2nd Installment:$103.79, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 14 G.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-06 Fiscal Year:2015-2016 1st Installment:$67.09, Paid 2nd Installment:$67.09, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 15 H.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-07 Fiscal Year:2015-2016 1st Installment:$75.93, Paid 2nd Installment:$75.93, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 16 I.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-08 Fiscal Year:2015-2016 1st Installment:$69.12, Paid 2nd Installment:$69.12, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 11 J.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-09 Fiscal Year:2015-2016 1st Installment:$69.08, Paid 2nd Installment:$69.08, Paid Homeowners Exemption:$0.00 Code Area:15052 PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB EXCEPTIONS (Continued) CLTA Preliminary Report Form – Modified (11/17/06)Page 6 Affects:Lot 10 K.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-10 Fiscal Year:2015-2016 1st Installment:$71.15, Paid 2nd Installment:$71.15, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 7 L.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-11 Fiscal Year:2015-2016 1st Installment:$67.09, Paid 2nd Installment:$67.09, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 6 M.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-12 Fiscal Year:2015-2016 1st Installment:$103.79, Paid 2nd Installment:$103.79, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 3 N.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-13 Fiscal Year:2015-2016 1st Installment:$69.08, Paid 2nd Installment:$69.08, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 4 PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB EXCEPTIONS (Continued) CLTA Preliminary Report Form – Modified (11/17/06)Page 7 O.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-14 Fiscal Year:2015-2016 1st Installment:$75.93, Paid 2nd Installment:$75.93, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 5 P.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-15 Fiscal Year:2015-2016 1st Installment:$2,656.05, Paid 2nd Installment:$2,656.05, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 17 Q.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-16 Fiscal Year:2015-2016 1st Installment:$22,474.64, Paid 2nd Installment:$22,474.64, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 2 R.Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Identification No.:415-102-17 Fiscal Year:2015-2016 1st Installment:$1,264.41, Paid 2nd Installment:$1,264.41, Paid Homeowners Exemption:$0.00 Code Area:15052 Affects:Lot 1 S.The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A or as a result of changes in ownership or new construction occurring prior to Date of Policy. 1.Water rights, claims or title to water, whether or not disclosed by the public records. 2.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Southern California Edison Company PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB EXCEPTIONS (Continued) CLTA Preliminary Report Form – Modified (11/17/06)Page 8 Purpose:pole lines Recording Date:July 11, 1962 Recording No:Book 6173, page 413 of Official Records Affects:lots 1 and 17 3.Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document Recording Date:October 7, 1977 Recording No:Book 12408, page 595 as Instrument No. 9329 of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. Affects:A portion of the Land described herein. Modification(s) of said covenants, conditions and restrictions Recording Date:March 9, 1982 Recording No:82-081322 of Official Records 4.Easement(s) for the purpose(s) shown below and rights incidental thereto, as delineated on or as offered for dedication on Map/Plat:Tract No. 10876 Purpose:public utility Affects:Lots 2 and 17 Purpose:landscape Affects:Lots 1, 2 and 17 5.The ownership of said Land does not include rights of access to or from the street, highway, or freeway abutting said Land, such rights having been relinquished by said map/plat. Affects: Hyland Avenue and Mac Arthur Boulevard Except at Street intersections and approved driveway locations 6.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Costa Mesa Sanitary District Purpose:sanitary sewer Recording Date:March 13, 1981 Recording No:Book 13981, page 1457 of Official Records Affects:A portion of Lot 17 7.This exception has been intentionally deleted. PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB EXCEPTIONS (Continued) CLTA Preliminary Report Form – Modified (11/17/06)Page 9 8.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Pacific Telephone and Telegraph Company Purpose:Underground communication facilities Recording Date:November 9, 1981 Recording No:8857, in Book 14284, Page 1187, Official Records Affects:A portion of said land as more particularly described in said document. Affects:Portions of Lots 1, 2 and 17 9.The matters set forth in the document shown below which, among other things, contains or provides for: certain easements; liens and the subordination thereof; provisions relating to partition; restrictions on severability of component parts; and covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including, but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Entitled:Declaration of Restrictions Recording Date:July 27, 1983 Recording No:83-323080 of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 10.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Mesa Consolidated Water District Purpose:pipelines Recording Date:December 20, 1982 Recording No:82-445811 of Official Records Affects:The route thereof affects a portion of said land and is more fully described in said document. A portion of said easement was quitclaimed to C. J. Segerstrom & Sons by document recorded May 20, 1992 as Instrument No. 92-334548 of Official Records. 11.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Southern California Edison Company Purpose:Underground electrical supply systems and communication systems Recording Date:May 17, 1990 Recording No:90-264697, Official Records Affects:A portion of said land as more particularly described in said document. Affects:A portion of Lot 2 PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB EXCEPTIONS (Continued) CLTA Preliminary Report Form – Modified (11/17/06)Page 10 12.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Pacific Bell Purpose:Underground communication facilities Recording Date:June 11, 1990 Recording No:90-308262, Official Records Affects:A portion of said land as more particularly described in said document. Affects:A portion of Lot 2 13.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Southern California Edison Company, a corporation Purpose:underground electrical supply systems and communication systems Recording Date:September 30, 1991 Recording No:91-0530869 of Official Records Affects:The route thereof affects a portion of said land and is more fully described in said document. 14.Reciprocal easements, for the purpose(s) shown below and rights incidental thereto as created by the following document: Document:Declaration of Easements Executed by:C. J. Segerstrom & Sons, a California general partnership Purpose:Vehicular and pedestrian access Recording Date:May 27, 1992 Recording No:92-353465, Official Records Affects:A portion of said land as more particularly described in said document. 15.Please be advised that our search did not disclose any open Deeds of Trust of record. If you should have knowledge of any outstanding obligation, please contact the Title Department immediately for further review prior to closing. 16.Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records. The Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 17.Matters which may be disclosed by an inspection and/or by a correct ALTA/ACSM Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof. PLEASE REFER TO THE “INFORMATIONAL NOTES” AND “REQUIREMENTS” SECTIONS WHICH FOLLOW FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION. END OF EXCEPTIONS PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB CLTA Preliminary Report Form – Modified (11/17/06)Page 11 REQUIREMENTS SECTION 1.The Company will require a survey of the subject Land, which is in compliance with minimum technical standards, prepared by a duly registered and licensed surveyor. If the owner of the Land the subject of this transaction is in possession of a survey, the Company will require that said survey be submitted for review and approval; otherwise, a new survey, satisfactory to the Company, must be submitted to the Company for examination. In order to prevent delays, please furnish the survey at least 10 days prior to the close of this transaction. If an existing survey is to be relied upon, an affidavit from the seller(s)/mortgagor(s) must be furnished to the Company stating that no improvements have been made on the Land the subject of this transaction or adjacent thereto subsequent to the survey presented to the Company. The Company reserves the right to add additional items or make further requirements after review of the requested documentation. 2.Unrecorded matters which may be disclosed by an Owner’s Affidavit or Declaration. A form of the Owner’s Affidavit/Declaration is attached to this Preliminary Report/Commitment. This Affidavit/Declaration is to be completed by the record owner of the land and submitted for review prior to the closing of this transaction. Your prompt attention to this requirement will help avoid delays in the closing of this transaction. Thank you. The Company reserves the right to add additional items or make further requirements after review of the requested Affidavit/Declaration. END OF REQUIREMENTS PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00046720-002-LB CLTA Preliminary Report Form – Modified (11/17/06)Page 12 INFORMATIONAL NOTES SECTION 1.Note: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage. 2.Note: There are NO conveyances affecting said Land recorded within 24 months of the date of this report. END OF INFORMATIONAL NOTES Susie George/maf FNF Privacy Notice Effective: April 1, 2016 FIDELITY NATIONAL FINANCIAL PRIVACY NOTICE At Fidelity National Financial, Inc. and its majority-owned subsidiary companies (collectively, “FNF”, “our” or “we”), we value the privacy of our customers. This Privacy Notice explains how we collect, use, and protect your information and explains the choices you have regarding that information. A summary of our privacy practices is below. We also encourage you to read the complete Privacy Notice following the summary. Types of Information Collected. You may provide us with certain personal information, like your contact information, social security number (SSN), driver’s license, other government ID numbers, and/or financial information. We may also receive information from your Internet browser, computer and/or mobile device. How Information is Collected. 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How Information is Collected In the course of our business, we may collect Personal Information about you from the following sources: •applications or other forms we receive from you or your authorized representative, whether electronic or paper; •communications to us from you or others; •information about your transactions with, or services performed by, us, our affiliates or others; and •information from consumer or other reporting agencies and public records that we either obtain directly from those entities, or from our affiliates or others. We may collect Browsing Information from you as follows: •Browser Log Files. Our servers automatically log, collect and record certain Browsing Information about each visitor to the Website. The Browsing Information includes only generic information and reveals nothing personal about the user. •Cookies. From time to time, FNF may send a “cookie” to your computer when you visit the Website. A cookie is a small piece of data that is sent to your Internet browser from a web server and stored on your computer’s hard drive. When you visit the Website again, the cookie allows the Website to recognize your computer, with the goal of providing an optimized user experience. Cookies may store user preferences and other information. You can choose not to accept cookies by changing the settings of your Internet browser. If you choose not to accept cookies, then some functions of the Website may not work as intended. Use of Collected Information Information collected by FNF is used for three main purposes: •To provide products and services to you, or to one or more third party service providers who are performing services on your behalf or in connection with a transaction involving you; •To improve our products and services; and •To communicate with you and to inform you about FNF’s products and services. When We Share Information We may share your Personal Information (excluding information we receive from consumer or other credit reporting agencies) and Browsing Information with certain individuals and companies, as permitted by law, without first obtaining your authorization. Such disclosures may include, without limitation, the following: •to agents, representatives, or others to provide you with services or products you have requested, and to enable us to detect or prevent criminal activity, fraud, or material misrepresentation or nondisclosure; •to third-party contractors or service providers who provide services or perform other functions on our behalf; •to law enforcement or other governmental authority in connection with an investigation, or civil or criminal subpoenas or court orders; and/or •to other parties authorized to receive the information in connection with services provided to you or a transaction involving you. We may disclose Personal Information and/or Browsing Information when required by law or in the good-faith belief that such disclosure is necessary to: •comply with a legal process or applicable laws; •enforce this Privacy Notice; •investigate or respond to claims that any information provided by you violates the rights of a third party; or •protect the rights, property or personal safety of FNF, its users or the public. We make efforts to ensure third party contractors and service providers who provide services or perform functions on our behalf protect your information. We limit use of your information to the purposes for which the information was provided. We do not give or sell your information to third parties for their own direct marketing use. We reserve the right to transfer your Personal Information, Browsing Information, as well as any other information, in connection with the sale or other disposition of all or part of the FNF business and/or assets, or in the event of our bankruptcy, reorganization, insolvency, receivership or an assignment for the benefit of creditors. You expressly agree and consent to the use and/or transfer of this information in connection with any of the above-described proceedings. We cannot and will not be responsible for any breach of security by any third party or FNF Privacy Notice Effective: April 1, 2016 for any actions of any third party that receives any of the information that is disclosed to us. Choices With Your Information Whether you submit your information to FNF is entirely up to you. If you decide not to submit your information, FNF may not be able to provide certain products or services to you. You may choose to prevent FNF from using your information under certain circumstances (“opt out”). You may opt out of receiving communications from us about our products and/or services. Security And Retention Of Information FNF is committed to protecting the information you share with us and utilizes a combination of security technologies, procedures and safeguards to help protect it from unauthorized access, use and/or disclosure. FNF trains its employees on privacy practices and on FNF’s privacy and information security policies. FNF works hard to retain information related to you only as long as reasonably necessary for business and/or legal purposes. Information From Children The Website is meant for adults. The Website is not intended or designed to attract children under the age of thirteen (13). We do not collect Personal Information from any person that we know to be under the age of thirteen (13) without permission from a parent or guardian. Privacy Outside the Website The Website may contain links to other websites, including links to websites of third party service providers. FNF is not and cannot be responsible for the privacy practices or the content of any of those other websites. International Users Because FNF’s headquarters is located in the United States, we may transfer your Personal Information and/or Browsing Information to the United States. By using our website and providing us with your Personal Information and/or Browsing Information, you understand and consent to the transfer, processing and storage of such information outside your country of residence, as well as the fact that we will handle such information consistent with this Privacy Notice. Do Not Track Disclosures Currently, our policy is that we do not recognize “do not track” requests from Internet browsers and similar devices. The California Online Privacy Protection Act For some websites which FNF or one of its companies owns, such as the Customer CareNet (“CCN”), FNF is acting as a third party service provider to a mortgage loan servicer. In those instances, we may collect certain information on behalf of that mortgage loan servicer, including: •first and last name; •property address; •user name and password; •loan number; •social security number - masked upon entry; •email address; •security questions and answers; and •IP address. The information you submit is then transferred to your mortgage loan servicer by way of CCN. The mortgage loan servicer is responsible for taking action or making changes to any consumer information submitted through this website. For example, if you believe that your payment or user information is incorrect, you must contact your mortgage loan servicer. CCN does not share consumer information with third parties, other than those with which the mortgage loan servicer has contracted to interface with the CCN application. All sections of this Privacy Notice apply to your interaction with CCN, except for the sections titled Choices with Your Information, and Access and Correction. If you have questions regarding the choices you have with regard to your personal information or how to access or correct your personal information, contact your mortgage loan servicer. Access and Correction To access your Personal Information in the possession of FNF and correct any inaccuracies, please contact us by email at privacy@fnf.com or by mail at: Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, Florida 32204 Attn: Chief Privacy Officer Your Consent To This Privacy Notice By submitting Personal Information and/or Browsing Information to FNF, you consent to the collection and use of information by FNF in compliance with this Privacy Notice. We reserve the right to make changes to this Privacy Notice. If we change this Privacy Notice, we will post the revised version on the Website. Contact FNF Please send questions and/or comments related to this Privacy Notice by email at privacy@fnf.com or by mail at: Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, Florida 32204 Attn: Chief Privacy Officer Copyright © 2016. Fidelity National Financial, Inc. All Rights Reserved. EFFECTIVE AS OF APRIL 1, 2016 CA Discount Notice Effective Date: 1-10-2010 Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries (“FNF”) must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer’s right to be charged the field rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for each discount. These discounts only apply to transaction involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling. FNF Underwritten Title Company FNF Underwriter CTC - Chicago Title Company CTIC - Chicago Title Insurance Company Available Discounts CREDIT FOR PRELIMINARY REPORTS AND/OR COMMITMENTS ON SUBSEQUENT POLICIES (CTIC) Where no major change in the title has occurred since the issuance of the original report or commitment, the order may be reopened within 12 months and all or a portion of the charge previously paid for the report or commitment may be credited on a subsequent policy charge within the following time period from the date of the report. DISASTER LOANS (CTIC) The charge for a lender’s Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within 24 months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be 50% of the appropriate title insurance rate. CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (CTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church’s obligation the charge for an owner’s policy shall be 50% to 70% of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender’s policy shall be 40% to 50% of the appropriate title insurance rate, depending on the type of coverage selected. EMPLOYEE RATE (CTC and CTIC) No charge shall be made to employees (including employees on approved retirement) of the Company or its underwritten, subsidiary title companies for policies or escrow services in connection with financing, refinancing, sale or purchase of the employees’ bona fide home property. Waiver of such charges is authorized only in connection with those costs which the employee would be obligated to pay, by established custom, as a party to the transaction. Attachment One (4-2-15) CA & NV ATTACHMENT ONE CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY – 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1.(a)Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b)Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2.Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3.Defects, liens, encumbrances, adverse claims or other matters: (a)whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b)not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c)resulting in no loss or damage to the insured claimant; (d)attaching or created subsequent to Date of Policy; or (e)resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4.Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5.Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6.Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1.Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2.Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3.Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4.Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6.Any lien or right to a lien for services, labor or material not shown by the public records. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a.building; b.zoning; c.land use; FNF Privacy Notice Effective: April 1, 2016 d.improvements on the Land; e.land division; and f.environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3.The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a.that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b.that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c.that result in no loss to You; or d.that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5.Failure to pay value for Your Title. 6.Lack of a right: a.to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b.in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7.The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors’ rights laws. 8.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 9.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows: For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1.00%% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)$ 10,000.00 Covered Risk 18: 1.00%% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)$ 25,000.00 Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)$ 25,000.00 Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)$ 5,000.00 2006 ALTA LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.(a)Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i)the occupancy, use, or enjoyment of the Land; (ii)the character, dimensions, or location of any improvement erected on the Land; (iii)the subdivision of land; or (iv)environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a)created, suffered, assumed, or agreed to by the Insured Claimant; FNF Privacy Notice Effective: April 1, 2016 (b)not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c)resulting in no loss or damage to the Insured Claimant; (d)attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13 or 14); or (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. 6.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a)a fraudulent conveyance or fraudulent transfer, or (b)a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE (Except as provided in Schedule B - Part II,( t(or T)his policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of: (PART I (The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1.(a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2.Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3.Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4.Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6.Any lien or right to a lien for services, labor or material not shown by the Public Records. PART II In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:) 2006 ALTA OWNER’S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.(a)Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i)the occupancy, use, or enjoyment of the Land; (ii)the character, dimensions, or location of any improvement erected on the Land; (iii)the subdivision of land; or (iv)environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a)created, suffered, assumed, or agreed to by the Insured Claimant; (b)not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c)resulting in no loss or damage to the Insured Claimant; (d)attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or FNF Privacy Notice Effective: April 1, 2016 (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is (a)a fraudulent conveyance or fraudulent transfer; or (b)a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of: (The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1.(a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2.Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3.Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4.Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and that are not shown by the Public Records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6.Any lien or right to a lien for services, labor or material not shown by the Public Records. 7.(Variable exceptions such as taxes, easements, CC&R’s, etc. shown here.) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (04-02-15) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys’ fees or expenses which arise by reason of: 1.(a)Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a)created, suffered, assumed, or agreed to by the Insured Claimant; (b)not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c)resulting in no loss or damage to the Insured Claimant; (d)attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6.Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. FNF Privacy Notice Effective: April 1, 2016 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. 10.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 11.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. MISC0220.doc – Owner’s Declaration (Rev. 05/05/15) OWNER'S DECLARATION The undersigned hereby declares as follows: 1.(Fill in the applicable paragraph and strike the other) a.Declarant ("Owner") is the owner or lessee, as the case may be, of certain premises located at ____________________________________________________________________________________, further described as follows: See Preliminary Report/Commitment No. 00046720-002-LB-SG4 for full legal description (the "Land"). b.Declarant is the ____________________________ of ______________________________________ ("Owner"), which is the owner or lessee, as the case may be, of certain premises located at __________________________________________________________________________________, further described as follows: See Preliminary Report/Commitment No. 00046720-002-LB-SG4 for full legal description (the "Land"). 2.(Fill in the applicable paragraph and strike the other) a.During the period of six months immediately preceding the date of this declaration no work has been done, no surveys or architectural or engineering plans have been prepared, and no materials have been furnished in connection with the erection, equipment, repair, protection or removal of any building or other structure on the Land or in connection with the improvement of the Land in any manner whatsoever. b.During the period of six months immediately preceding the date of this declaration certain work has been done and materials furnished in connection with upon the Land in the approximate total sum of $ , but no work whatever remains to be done and no materials remain to be furnished to complete the construction in full compliance with the plans and specifications, nor are there any unpaid bills incurred for labor and materials used in making such improvements or repairs upon the Land, or for the services of architects, surveyors or engineers, except as follows: . Owner, by the undersigned Declarant, agrees to and does hereby indemnify and hold harmless Chicago Title Company against any and all claims arising therefrom. 3.Owner has not previously conveyed the Land; is not a debtor in bankruptcy (and if a partnership, the general partner thereof is not a debtor in bankruptcy); and has not received notice of any pending court action affecting the title to the Land. 4.Except as shown in the above-referenced Preliminary Report/Commitment, there are no unpaid or unsatisfied mortgages, deeds of trust, Uniform Commercial Code financing statements, regular assessments, special assessments, periodic assessments or any assessment from any source, claims of lien, special assessments, or taxes that constitute a lien against the Land or that affect the Land but have not been recorded in the public records. There are no violations of the covenants, conditions and restrictions as shown in the above-referenced Preliminary Report/Commitment. 5.The Land is currently in use as ; occupy/occupies the Land; and the following are all of the leases or other occupancy rights affecting the Land: 6.There are no other persons or entities that assert an ownership interest in the Land, nor are there unrecorded easements, claims of easement, or boundary disputes that affect the Land. 7.There are no outstanding options to purchase or rights of first refusal affecting the Land. This declaration is made with the intention that Chicago Title Company (the "Company") and its policy issuing agents will rely upon it in issuing their title insurance policies and endorsements. Owner, by the undersigned Declarant, agrees to indemnify the Company against loss or damage (including attorneys fees, expenses, and costs) incurred by the Company as a result of any untrue statement made herein. I declare under penalty of perjury that the foregoing is true and correct and that this declaration was executed on at . Signature: EXHIBIT "A" EASEMENT LEGAL DESCRIPTION EXHIBIT "B" EASEMENT PLAT Costa Mesa Sanitary District ... an Independent Special District Adams Pump Station Electrical Improvements Item Number:25. Recommendation/Notes: Recommendation: That the Board of Directors: 1. Approve an appropriation from New Position in the amount of $116,000 to fund the project. 2. Approve in concept the points described in the staff report, which have been approved by the property owner of 2043 Calvert Avenue, Cesar Ibarra. 3. Direct the General Manager to complete the project as shown in the project budget including bringing back an easement deed, legal description, and map, signed by Mr. Ibarra for acceptance and recording by the Board of Directors. ATTACHMENTS: Description Type Adams Pump Station Electrical Improvements 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 To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 23, 2016 Subject: Adams Pump Station Electrical Improvements Summary This item was discussed at the June 14, 2016 Board study session and staff was directed to bring this item to the June 23, 2016 regular Board meeting. Currently, when an electrical outage occurs at the Adams Pump Station, the field crew must park a portable generator on Adams Avenue where there is insufficient room to avoid impacting the fast moving traffic traveling westerly on Adams Avenue. The General Manager and staff have, therefore, negotiated an easement and the right to construct improvements with the property owner of 2043 Calvert Avenue so the District may locate the portable generator on Calvert Avenue during an electrical outage. Staff Recommendation That the Board of Directors: 1. Approve an appropriation from Net Position in the amount of $116,000 to fund the project. 2. Approve in concept the following points, which have been approved by the property owner of 2043 Calvert Avenue, Cesar Ibarra. 3. Direct the General Manager to complete the project as shown in the project budget including bringing back an easement deed, legal description, and map, signed by Mr. Ibarra for acceptance and recording by the Board of Directors. Analysis Board of Directors June 23, 2016 Page 2 of 5 When District field crews currently respond to an electrical outage at the Adams Pump Station, use of the portable generator is delayed due to the crew having to first institute traffic control measures along Adams Avenue westerly in order to close the lane closest to the curb. Only then can the area be safe for the field crew and for the generator to be safely located in front of the pump station. Due to the heavy traffic volume on Adams Avenue, transporting and connecting a mobile generator to the Adams Pump Station is extremely dangerous for staff. To improve safety conditions for staff, a proposal to connect the pump station to a mobile generator on Calvert Avenue was considered. The proposal is described further below. • Expand the block wall opening along Adams Avenue by four feet to accommodate the installation of an automatic transfer switch (ATS) and cabinet on Adams Avenue and adjacent to the pump station. • In the backyard of 2043 Calvert Avenue will be a permanent underground conduit and cable from the ATS to a four-foot high electrical box in the parkway on Calvert Avenue. The conduit and cable run underground will be approximately 110 feet long. • The electrical box in the parkway will have an art wrap approved by the neighborhood. • CMSD will restore all damaged improvements to the property owner at 2043 Calvert Avenue to an equal or better condition. Attachment A is a picture and diagram of the proposed improvements. Under this proposal, staff will be safe and away from heavy traffic. The new location will also improve the timeliness for Adams Pump Station obtaining backup power due to minimal traffic control that is required on Calvert Avenue. When the property owner at 2043 Calvert Avenue, Cesar Ibarra, was apprised of this situation, Mr. Ibarra was receptive to the idea of an easement over his property to allow a permanent underground electrical conduit and cable to be located along his side yard and rear property line. From there, the District met a number of times with Mr. Ibarra to work out the details of the complete installation. As proposed compensation for the easement and right to construct, the District performed calculations using a basis of compensation for the easement being approximately equal to 50% of the fee value of the area of land in the easement. Attachment B is a copy of the calculation. This calculation results in a value of Board of Directors June 23, 2016 Page 3 of 5 $10,000 for the improvements. Mr. Ibarra has agreed in concept that $10,000 is a fair compensation, but understands it needs Board approval. In order to fund the project, the proposed budget is as follows: Civil Design $ 7,500 Electrical Design $ 7,500 Construction $ 75,000 Easement Acquisition $ 10,000 Easement Map and Description $ 840 Contract Admin/Insp $ 7,500 Contingency $ 7,500 Total $115,840 Recommendation: $116,000 The Board of Directors reviewed and discuss this proposal at your June 14, 2016 Study Session. The Board directed staff to bring this item back for tonight’s meeting to consider approving the following points. A. District will compensate Cesar Ibarra $10,000 for a sewer easement and right to construct over Ibarra property at 2043 Calvert Avenue, Costa Mesa, the dimensions of the easement are approximately 3.0’-4.5’ wide along Ibarra’s easterly property line (width depends on District determining actual property line location along with meetings with neighbor) plus an approximate 4.5’ wide by 14.5’ strip along Ibarra’s southerly property line as shown on Proposed Easement Plan prepared by District. B. The right to construct includes District expanding the block wall opening along Adams Avenue by 4’ to facilitate installing an automatic transfer switch (ATS) and cabinet on Adams Avenue at the District’s Adams Pump Station. Also included in the right to construct is installing a permanent underground conduit and cable from the ATS to Calvert Avenue, plus installing a 4’ high electrical box in the grass parkway of Calvert Avenue. As an alternate, the 4’ high electrical box may be installed at the backyard fence line. District will restore all damaged improvements on Ibarra property to an equal or better condition at no cost to Ibarra. C. District and Ibarra will work cooperatively together on final design details, and District will work with Ibarra’s neighbor who appears to be encroaching onto Ibarra’s property with mow strip, landscape, and sprinkler system. Board of Directors June 23, 2016 Page 4 of 5 D. After the District’s Board of Directors approves the project in concept, District will advise Ibarra on the next steps to move forward. Strategic Plan Element & Goal This item complies with Strategic Plan Element 1.0, Sewer Infrastructure and Goal No. 1.4 System Wide Sewer Replacement and Repair Program. The strategy for this Strategic Element is: ”We will do this by the careful management of the collection infrastructure using prudent planning and maintenance, with financial strategies to maintain sufficient capacity and respond to changing regulatory demands.” Legal Review The Attorney for the District has reviewed this staff report and found that the proposed actions are lawful. The District has the right to acquire real property interests for sewer purposes and does not have to follow guidelines for property acquisition when the purchase is made outside the eminent domain process. Environmental Review Acquiring the easement and constructing the improvements as described is categorically exempt from the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” “minor alteration of existing public or private structures”, as further described in Section (b) as “Existing facilities of both investor and publicly-owned utilities used to provide .... sewerage ...”. Financial Review The total estimated cost for this project is $116,000, which includes compensation to Mr. Ibarra for accessing the easement and final designs, construction and inspection costs. This project is not budgeted therefore the Board would have to approve an appropriation from Net Position of $116,000. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 23, 2016 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve in concept the proposed improvements. 2. Do not approve the proposed compensation to Mr. Ibarra and direct staff to negotiate a lower amount. Attachments: A Picture and diagram of proposed project B Calculations Board of Directors June 23, 2016 Page 5 of 5 C Proposed Easement Plan Reviewed by: Wendy Hooper Davis Finance Manager Adams Pump Station Proposed ATS Proposed Conduit and Cable Proposed Electrical Box Mobile Generator 2043 Calvert Land Value 15-16 Property Tax Bill $395,332.00 Property Area (70x100) SF 7,000 Per Square Foot Value $56.48 Estimated Area Effected SF 368 50% of Cost for Underground $20,754.93 Calculated Compensation $10,377.47 Costa Mesa Sanitary District ... an Independent Special District Statement of Investment Policy for Fiscal Year 2016-17 & Adoption of Resolution No. 2016-889 Item Number:26. Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2016-889 approving the Policy and delegating the investment function to the District Treasurer for the 2016-17 fiscal year. ATTACHMENTS: Description Type Statement of Investment Policy for Fiscal Year 2016-17 & Adoption of Resolution No. 2016-889 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 From: Marc Davis, Treasurer Date: June 23, 2016 Subject: Statement of Investment Policy for Fiscal Year 2016-17 Summary Attached is the proposed Statement of Investment Policy for Fiscal Year 2015-16 (Policy). The Policy documents the Board’s guidelines under which the District Treasurer can invest the District’s idle funds. Staff Recommendation Adopt Resolution No. 2016-889 approving the Policy and delegating the investment function to the District Treasurer for the 2016-17 fiscal year. Analysis California Government Code §53646(a)(2) allows the District Treasurer to submit an annual investment policy to the Board for consideration. It is not a requirement to do so, but staff believes it is prudent to continue this practice. The enclosed Policy documents the Board’s objectives surrounding the selection of investments, as well as those investments in which the Board has authorized. It also provides limitations on specific investments. The responsibility for placing investments rests with the Board. California Government Code §53607 allows the Board to delegate the investment function to the District Treasurer for a period of one year. The attached Resolution approves the Policy and delegates the investment function to the District Treasurer for the 2016-17 fiscal year. The attached Policy is a red-lined version so that the Board can review the proposed changes to the Policy. Once approved, the changes will be incorporated into the Policy, Board of Directors June 23, 2016 Page 2 of 3 and it will be distributed to the brokers assisting the District with the investment of its idle funds. 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 District Counsel has reviewed Resolution 2016-889 as to form. 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 of 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 The Statement of Investment Policy guides the Treasurer in how to invest the District’s idle funds. The amount of investment earnings to be generated as a result of the investing function is based upon the market conditions at the time of investment. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 23, 2016 Board of Directors regular meeting at District Headquarters (628 W. 19th Street) and on the District’s website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Resolution and retain investment function at the Board level 2. Refer the matter back to staff Attachments Attachment 1 – Resolution Number 2016-889 Attachment 2 – Statement of Investment Policy for Fiscal Year 2016-17 ATTACHMENT 1 RESOLUTION NO. 2016-889 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ADOPTING A STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2016-17, AND AUTHORIZING THE TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY DISTRICT IN ACCORDANCE WITH THE STATEMENT OF INVESTMENT POLICY, AND FURTHER AUTHORIZING THE SAID TREASURER TO DELEGATE TO A DEPUTY THE CARRYING OUT OF ANY SUCH TASKS. WHEREAS, Government Code Section 53601 et seq. sets forth the investments that the District may lawfully make; and WHEREAS, Government Code Section 53646(a)(2) sets forth that the District’s Treasurer may annually render to the Board of Directors a Statement of Investment Policy at a public meeting for the Board to consider; and WHEREAS, The Board has reviewed the Statement of Investment Policy; and WHEREAS, Government Code Section 53607 allows the Board to delegate the authority to make investments and to sell or exchange securities for a one year period to the Treasurer, provided that monthly reports are thereafter made of the status of said transactions. NOW, THEREFORE, the Board of Directors does hereby resolve: 1. That the Statement of Investment Policy for fiscal year 2016-17 is approved. 2. That the Treasurer is authorized to make investments consistent with said Policy and is required to provide a written report to the Board on a monthly basis and verbal report to the Board on a quarterly basis on the status of those transactions. The Treasurer is hereby given all of the authority provided by Government Code Section 53607, including the power to invest and reinvest and the power to sell or exchange securities, consistent with the District’s policy. 3. That the Treasurer may delegate some part of these duties to a deputy provided that the Treasurer remains responsible for such decisions and provides oversight. PASSED and ADOPTED on this 23rd day of June 2016. ________________________________ ________________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors ATTACHMENT 1 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, Noelani Middenway, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2015-868 duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 23rd day of June 2016. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 23rd day of June 2016. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District Attachment 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2016-17 1 Deleted: 2015-16 I. PURPOSE This statement is intended to formalize the various policies and procedures for the prudent investment of temporarily idle cash for the Costa Mesa Sanitary District (District). It outlines the investment-related activities, which comprise good cash management. In concert with these activities, there are many facets of an appropriate secure short-term investment program, which will enhance the economic condition of the District while safeguarding its assets. II. INVESTMENT SELECTION OBJECTIVE The District strives to maintain the level of investment of all idle funds as near 100% as possible. All temporarily pooled idle cash is invested under the "Prudent Investor Standard," Government Code §53600.3, which states, in part: ”…When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…” This affords the District a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California Government Code §53600 et seq. and the Costa Mesa Sanitary District Statement of Investment Policy. The District Treasurer, after meeting the legality, safety, liquidity and diversification criteria, will attempt to obtain the highest yield possible. The criteria for selecting investments, in order of priority are: 1. Legality – The District's investments must conform to federal laws, state statutes, District ordinances and internal policies and procedures. The District has established internal controls to ensure that investment activities comply with all applicable statutes, ordinances and policies. 2. Safety – The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The District only operates in those investments that are considered very safe. 3. Liquidity – This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest. The District's investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements as well as unanticipated needs for funds. 4. Diversification – The District's investment portfolio will be sufficiently diversified to avoid incurring unreasonable risks resulting from saturation of assets in specific security types, maturities or individual financial institutions. Attachment 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2016-17 2 Deleted: 2015-16 5. Yield – Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. The basic premise underlying the District's investment philosophy is to ensure that funds are always safe and available when needed. The District does not buy stocks, speculate or deal in futures or options. Any investment extending beyond a five-year period requires prior District Board approval. III. AUTHORIZED INVESTMENTS The District limits its investments to the following vehicles:  US Treasury Bills  US Treasury Notes  Federal Agency Issues - Examples include: o Federal Intermediate Credit Bank Debentures (FICB) o Federal Farm Credit Bank (FFCB) o Federal Land Bank Bonds (FLB) o Federal Home Loan Bank Notes and Bonds (FHLB) o Federal National Mortgage Association (FNMA) o Federal Home Loan Mortgage Corporation (FHLMC)  Banker’s Acceptances  Certificates of Deposit (CD)  Negotiable Certificates of Deposit  Commercial Paper  Medium Term Corporate Notes  Shares of Beneficial Interest  Passbook Savings Account  Local Agency Investment Fund (LAIF)  CalTRUST  Supranational Securities IV. DELEGATION OF AUTHORITY The District’s Board of Directors (Board) hereby delegates its authority to invest surplus District funds to the Treasurer. Delegation of the investment function by the Board is limited to a one-year period. Failure to delegate deems the Board to be trustee and fiduciary, therefore subject to the prudent investor standard. V. INTERNAL CONTROLS A system of internal control shall be established and documented in writing. The controls shall be designed to prevent loss of public funds arising from irregularities, employee error, Deleted: Money Market Mutual Funds Attachment 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2016-17 3 Deleted: 2015-16 misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the District. Controls deemed most important include: control of collusion, separation of duties, custodial safekeeping, clear delegation of authority, confirmation of transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethics standards. VI. REPORTING Government Code §53646(a)(2) previously mandated that investment policies be approved by the legislative body. Additionally, Government Code §53646(b)(1) previously mandated that quarterly investment reports be submitted to the legislative body. In June 2004, the California Assembly adopted AB2853 which made these requirements optional. The District believes it prudent to continue with these practices. The Treasurer shall submit a monthly investment report to the Board. This report will communicate, at a minimum, the type of investment, institution, date of maturity, amount of deposit, rate of interest, current market value of securities with maturities in excess of 12 months, source of market valuations, statement of compliance and such other data as required by the Board. Once each quarter, the Treasurer shall discuss the previous month’s investment report with the Board at a regular meeting. VII. LEGAL CONSTRAINTS Surplus funds must be deposited in state or national banks, state or federal savings associations or federal credit unions within the State of California. These deposits cannot exceed the amount of the institution's paid-up capital and surplus. The bank or savings and loan must secure public funds deposits with eligible securities having a market value of 110% of the total amount of the deposits or first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is a 105% letter of credit drawn on the Federal Home Loan Bank. The Treasurer may waive security for that portion of a deposit, which is insured pursuant to Federal law. Currently, the first $250,000 of a deposit is federally insured. Deposits over $250,000 are collateralized as indicated above. VIII. DERIVATIVES The term derivative is a commonly used name that describes a variety of securities whose values are "derived from" the value of another asset, a reference rate or an index. Investment in derivative instruments is limited to securities that have periodic increases, or step-up interest rate adjustments that provide an increased yield. Investment in callable securities is also allowed, but must comply with other restrictions as specified in this Investment Policy. Derivative securities known as inverse floaters, range notes, or mortgage-derived, interest-only strips and other such securities that produce higher yields when purchased but have the possibility of producing low or no return through the life of the security, are not allowable per Government Code §53601.6(a). Deleted: structured investment vehicles, Attachment 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2016-17 4 Deleted: 2015-16 IX. BOND PROCEEDS When investing bond proceeds, if any, the District will adhere to this Investment Policy (Policy) when determining appropriate instruments for placing monies. If the bond's trust agreement is more restrictive than this Policy, then the trust agreement supersedes this Policy. The District may delegate it’s responsibly to the fiscal agent to ensure compliance with the bond covenants when managing bond proceeds on behalf of the District. Borrowing money solely for the purpose of investing and earning arbitrage is specifically prohibited. X. GRANDFATHER PROVISIONS The District’s investment strategy is to buy and hold investments until maturity. As legislation and the District’s Policy change, certain investments may become prohibited. Under §53601.6(b) of the California Government Code, the District may hold prohibited investments until their maturity to avoid incurring a loss. This allows the District to "grandfather" in securities purchased prior to the effective date of new legislation. When selling and subsequently repurchasing securities prior to maturity, losses are only acceptable if the proposed swap/trade can clearly enhance yield (value) over the life of the new security on a total return basis, or to prevent the further loss of principal. Sufficient written documentation to facilitate the audit of the transaction must be maintained. In the event that an issuer’s rating is downgraded from when the security was purchased, the Treasurer’s awareness is heightened and the security will be closely monitored to determine if credit risk has been significantly increased. The Treasurer will evaluate the need to sell the security prior to maturity. XI. BANKS AND SECURITIES DEALERS The District shall transact business only with banks, savings and loans, and "primary" or "regional" registered investment securities broker/dealers with offices located, or doing business, in the State of California. Any broker/dealer or financial institution wishing to provide services must complete the District's questionnaire and be approved by the Treasurer. The number of broker/dealers authorized to transact business with the District is one broker/dealer for every $5,000,000 of portfolio size. XII. SAFEKEEPING AND CUSTODY Securities should be held in a third party custodian/safekeeping account. Said securities shall be held in a manner that establishes the District's right of ownership pursuant to Government Code Sections 53601 and 53608 et seq. Attachment 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2016-17 5 Deleted: 2015-16 All securities owned by the District should be held by a third party except the collateral for time deposits in banks and savings and loans, which is held by the Federal Home Loan Bank or an approved Agent of Depository. The collateral for time deposits in banks should be held in the District's name by the bank's Trust Department, or alternately, by the Federal Reserve Bank pursuant to Government Code Sections 53656 and 53657 et seq. XIII. INDEMNIFICATION Any authorized investment personnel acting with prudence and in accordance with the District’s Policy, will not be held personally liable for any investment losses. Through surety bonds, the District is indemnified against any investment personnel acting with malfeasance, misfeasance or nonfeasance. XIV. CONFLICT OF INTEREST Any firm proposing to provide any type of investment service to the District shall acknowledge their familiarity with and agree to abide by any Federal and State laws or regulations pertaining to contractual conflicts of interest or contributions by such firms, their employees, spouses or agents. Any persons, firms, dealers, brokers and advisors providing investment services or bond issue assistance shall disclose to the Treasurer all fee sharing and commission arrangements with other entities or persons prior to the District agreeing to buy an investment or issuing bonds. XV. POLICY REVIEW The Treasurer shall be responsible for reviewing and modifying this Policy annually for Board approval to ensure its consistency with the overall objectives of safety, preservation of principal, and liquidity, and its relevance to current law and current financial and economic conditions. XVI. SUMMARY The basic premise underlying the District's investment philosophy is conservative, and will continue to be, to ensure that money is always safe and available when needed. Attachments: Investment Guidelines and Strategy Investment Procedures – Internal Control Guidelines Cash Controls Segregation of Treasury Functions Glossary of Investments Attachment 2 COSTA MESA SANITARY DISTRICT Investment Guidelines and Strategy Fiscal Year 2016-17 6 Deleted: 2015-16 I. GUIDELINES Guidelines are established to direct and control activities in such a manner that previously established goals are achieved. 1. Investment Transaction: Every investment transaction must be authorized and reviewed by the Treasurer. 2. Pooled Cash: Whenever practical, cash is consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated quarterly to each fund based upon the average monthly ending cash balance of the fund. 3. Competitive Bids: Purchases and sales of securities are made on the basis of competitive offers and bids when practical. 4. Cash Forecasting: The cash flow for the District is projected with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements. 5. Investment Limitations: Security purchases and holdings are maintained within statutory limits imposed by the California Government Code. The District's current limits are: District Policy Government Code Permitted Investments/Deposits Percent Maturity Percent Maturity US Treasury Bills and Notes Unlimited 5 years Unlimited 5 years US Government Securities Unlimited 5 years Unlimited 5 years Passbook Savings Accounts Unlimited n/a Unlimited n/a Certificates of Deposit 25% 5 years Unlimited 5 years Bankers’ Acceptances (1) 25% 180 days 40% 180 days Commercial Paper (2) 25% 270 days 25% 270 days Negotiable CDs 25% 5 years 30% 5 years Medium Term Notes 20% 5 years 30% 5 years LAIF 50% n/a $50 million n/a Shares of Beneficial Interest (3), (4) 20% 5 years 20% 5 years Supranational Securities 15% 5 years 30% 5 years (1) Further limited to 30% in any single commercial bank per Government Code and 15% per District Policy (2) Further limited to 10% in any single issuer (3) Includes CalTRUST, money market funds and money market mutual funds (4) Further limited to 10% in any single mutual fund 6. Liquidity: The marketability of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands. Deleted: 1 Attachment 2 COSTA MESA SANITARY DISTRICT Investment Guidelines and Strategy Fiscal Year 2016-17 7 Deleted: 2015-16 7. Diversification: The portfolio should consist of various types of securities, issuers, and maturities. 8. Evaluate Certificates of Deposit: a) Certificates of Deposit shall be evaluated in terms of FDIC coverage. The District does not purchase Certificates of Deposit in excess of $250,000. b) Negotiable Certificates of Deposit shall be evaluated in terms of FDIC coverage and the credit worthiness of the issuer. II. STRATEGY Strategy refers to the ability to manage financial resources in the most advantageous manner. 1. Economic Forecasts: Economic forecasts are obtained periodically from economists and financial experts through bankers and brokers to assist with the formulation of an investment strategy for the local agency. 2. Implementing Investment Strategy: Investment transactions are executed which conform to anticipated interest rate trends and the current investment strategy plan. 3. Rapport: A close working relationship is maintained with large vendors of the District. The objective is to pinpoint when large disbursements will clear the District's bank account. It is essential for good cash control that such large expenditures be anticipated, estimated as to dollar amount, and communicated to the Treasurer for liquidity planning purposes. 4. Preserve Portfolio Value: Standards are developed in order to maintain earnings near the market and to preserve the value of the portfolio. III. AUDIT Annually, the District's external auditors review the District’s portfolio and perform limited procedures related to compliance. Additionally, they may review that purchase price, market value and maturity date for financial statement purposes. This review is included as part of the annual audit of the District. Attachment 2 COSTA MESA SANITARY DISTRICT Investment Procedures – Internal Control Guidelines Fiscal Year 2016-17 8 Deleted: 2015-16 I. OBJECTIVES OF INTERNAL CONTROL Internal control is the plan of organization and all the related systems established by management's objective of ensuring, as far as practical:  The orderly and efficient conduct of its business, including adherence to management policies;  The safeguarding of assets;  The prevention or detection of errors and irregularities;  The accuracy and completeness of the accounting records; and  The timely preparation of reliable financial information. II. LIMITATIONS OF INTERNAL CONTROL No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including:  Management's usual requirement that a control be cost-effective;  The direction of most controls at recurring, rather than unusual, types of transactions;  Human error due to misunderstanding, carelessness, fatigue or distraction of functions; and  The potential for a person responsible for exercising control abusing that responsibility. Frequently, a member of management is in a position to override controls which management has set up. III. ELEMENTS OF INTERNAL CONTROL Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are: 1. Organization: Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood. 2. Personnel: Personnel should have capabilities commensurate with their responsibilities. Personnel selection and training policies, together with the quality and quantity of supervision, are thus important. 3. Segregation of Functions: Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or irregularities in the normal course of duty. If different people handle two parts of a transaction, collusion is necessary to conceal errors or irregularities. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets and performing reconciliations. Attachment 2 COSTA MESA SANITARY DISTRICT Investment Procedures – Internal Control Guidelines Fiscal Year 2016-17 9 Deleted: 2015-16 4. Authorization: An appropriate responsible individual should authorize all transactions. The responsibilities and limits of authorization should be clearly delineated. The authorization for a specific transaction or granting general authority for transactions should be to a position commensurate with the significance of the transactions. Delegation of authority to authorize transactions should be handled very carefully. 5. Controls Over an Accounting System: Controls over an accounting system include manual and computerized procedures carried out independently to ascertain that transactions are complete, valid, authorized and properly recorded. Attachment 2 COSTA MESA SANITARY DISTRICT Cash Controls Fiscal Year 2016-17 10 Deleted: 2015-16 I. PROCEDURES THAT MAY BE PERFORMED BY AUDITORS WITH RESPECT TO CASH RECEIPTS 1. District procedures and controls are reviewed. Some of the system strengths are: a. Receipts are controlled upon receipt by proper registration devices; b. Receipts are reconciled on a daily basis; c. Amounts are deposited intact; d. All bank accounts are authorized by the Board; e. Cash counts are done by two or more individuals; f. Bank reconciliations are reviewed; g. The posting of cash receipt entries in books is prompt; h. Receipt forms are prenumbered, accounted for, and physically secured; i. Proper approval required for write-off's of customer accounts; j. Checks are restrictively endorsed upon receipt; k. Adequate physical security over cash; l. Individuals who handle cash do not post account records or process billing statements; and m. Adequate supervision of financial operations. 2. Significant revenues are confirmed directly with the payer and compared to District books to make sure amounts are recorded properly, or reviewed on an analytical basis by year over year comparisons. 3. Cash balances are substantiated by confirming account balances. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements. Attachment 2 COSTA MESA SANITARY DISTRICT Segregation of Treasury Functions Fiscal Year 2016-17 11 Deleted: 2015-16 The District’s treasury function is segregated as follows. Function Responsibility Authorization of investment transactions: A) Formal investment policy Prepared by Treasurer Reviewed by Board Adopted by Board B) Investment transactions approved by Treasurer C) Monthly Investment Report: Prepared by Treasurer Reviewed by Board Execution of investment transactions Treasurer Recording of investments in Treasurer’s records Treasurer Recording of investments in accounting records Senior Accountant Accounting records approved by Finance Manager Verification of investment and confirmation of Treasurer’s records Senior Accountant Bank reconciliation: Prepared by Senior Accountant Approved by Finance Manager Execute wire transfers Treasurer Online verification of wire transfers General Manager Annual review of investment portfolio External Auditors Deleted: Finance Manager Deleted: Callback verification of wire transfer Deleted: Bank Attachment 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2016-17 12 Deleted: 2015-16 Bankers' Acceptances – Short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a high-grade negotiable instrument. Acceptances are purchased in various denominations for 30, 60, or 90 days, but no longer than 180 days. The interest is calculated on a 360-day discount basis similar to Treasury Bills. The District may not invest more than 25% of its surplus money in Bankers' Acceptances and no more than 15% of bankers’ acceptances may be placed with any one commercial bank. Certificates of Deposit (CD) – Time deposits of a bank or savings and loan. They are purchased in various denominations with maturities ranging from 30 to 360 days. Certificates of Deposit are insured up to $250,000 per issuer by the FDIC. The interest is calculated on a 360-day, actual day month basis and is payable monthly. The District may invest up to 25% of its surplus money in insured CD's with maturities of five years of less. Commercial Paper – Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial Paper is issued by corporations such as General Motors, IBM, etc. Local agencies are permitted by State law to invest in Commercial Paper of the highest ranking or of the highest letter and numerical rating as provided by Moody's Investor's Service, Inc., or Standard and Poor's Corporation. Purchases of eligible Commercial Paper may not exceed 270 days maturity, nor exceed 25% of the District's surplus funds. The District may not purchase more than 10% of any single issuer. Federal Agency Issues – Guaranteed directly or indirectly by the United States Government. All agency obligations qualify as legal investments and are acceptable as security for public deposits. Agencies usually provide higher yields than direct Treasury issues with all of the same advantages. An unlimited amount of funds may be invested in Federal Agency issues with maximum maturities of less than five years. The Board must expressly authorize any investment with a maturity greater than five years. Examples include:  Federal Intermediate Credit Bank Debentures (FICB) – Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis.  Federal Farm Credit Bank (FFCB) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three and six-month maturities. The FFCB issues larger issues (one to ten years) on a periodic basis. These issues are highly liquid.  Federal Land Bank Bonds (FLB) – Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis. Deleted: one Attachment 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2016-17 13 Deleted: 2015-16  Federal Home Loan Bank Notes and Bonds (FHLB) – Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis.  Federal National Mortgage Association (FNMA) – Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued four times a year with maturities from a few months to eight years. The minimum amount is $10,000 and carry semi-annual coupons, with interest computed on a 360-day, 30-day month basis.  Federal Home Loan Mortgage Corporation (FHLMC) – A government-sponsored corporation established to develop the secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Interest is paid semi-annually and is calculated on a 360-day, 30-day month basis. Investment Trust of California (CalTRUST) – A joint powers authority established by local agencies in the State of California for the purpose of pooling and investing local agency funds. A Board of Trustees supervises and administers the investment program. The Board is comprised of experienced investment officers and policy-makers of the public agency members. CalTRUST invests in fixed income securities eligible for investment pursuant to California Government Code §53601 et seq. The District is not limited as to the number of deposits and withdrawals in any given month for the short-term account within CalTRUST. The district is limited to one transaction per month in the medium-term account within CalTRUST. See also Shares of Beneficial Interest. Local Agency Investment Fund (LAIF) – A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $50,000,000 for any agency. The District is restricted to 15 transactions per month for each LAIF account. LAIF offers high liquidity because deposits can be converted to cash in 24 hours with no interest lost. Interest is distributed to those agencies participating on a per share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains a portion for administrative costs, not to exceed one-quarter of one percent of the earnings. The pooling of the State's surplus cash with the participant's surplus cash creates a multi-billion dollar money pool and allows diversified investments. The District invests in the Local Agency Investment Fund whose Investment Policy allows investments in securities not specifically authorized by the District's Investment Policy, but allowable under the California Government Code. Attachment 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2016-17 14 Deleted: 2015-16 Medium Term Corporate Notes – Unsecured promissory notes issued by a corporation organized and operating in the United States. These are negotiable instruments and are traded in the secondary market. Medium Term Corporate Notes can be defined as extended maturity Commercial Paper. Local agencies are restricted by the Government Code to investments in corporations rated in the top three note categories by a nationally-recognized rating service, five year maximum maturity and may not exceed 30% of surplus funds. The District's restrictions are a maximum term of five years to maturity and total investments in Medium Term Corporate Notes may not exceed 20% of the District's surplus funds. The District may not purchase more than 10% of any single issuer. Negotiable Certificates of Deposit – Obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. The primary market issuance is in multiples of $1,000,000, the secondary market usually trades in denominations of $500,000, and smaller lots are occasionally available. Negotiable Certificates of Deposit are insured up to $250,000 per issuer by the FDIC. Purchases of Negotiable Certificate of Deposit may not exceed 25% of the District's surplus funds and five years to maturity. The District may not buy more than 10% of any single issuer. Passbook Savings Account Demand Deposit – Interest bearing active deposits placed at state or national banks, state or federal savings and loan associations, state or federal credit unions and federally insured industrial loan companies. Monies placed in a savings account earn short-term interest. Deposits are FDIC insured up to $250,000, and may be in any amount. Shares of Beneficial Interest – Also referred to as money market mutual funds. CalTRUST, which has previously been defined, is classified as shares of beneficial interest. Shares of beneficial interest must consist of highly-rated short-term debt instruments. The management companies shall either (1) attain the highest ranking or the highest letters and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) have an investment advisor registered with the Securities and Exchange Commission (SEC) with not less than five years experience investing in the securities and obligations as authorized above and with assets under management in excess of five hundred million dollars ($500,000,000) and (3) follow regulations specified by the SEC under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1, et seq.). The purchase price of shares for beneficial interest shall not exceed 20% of the District's portfolio. Supranational Securities – United States dollar denominated senior unsecured unsubordinated obligations issued or conditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. Investments are limited to five years or less and must be eligible for purchase or sale within the United States. Investments shall be rated “AA” or better and shall not exceed 15% of the District’s portfolio. US Treasury Bills – Direct obligations of the United States Government issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest calculated on a 360-day basis and actual invested days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security. An unlimited amount may be invested in US Treasury Bills. Attachment 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2016-17 15 Deleted: 2015-16 US Treasury Notes – Direct obligations of the United States Government with original maturities of 1 to 10 years. They are generally available in minimum denominations of $5,000 for two and three-year maturities, and $1,000 denominations for all other maturities. Notes are actively traded in a large secondary market and are very liquid. An unlimited amount of funds may be invested in US Treasury Notes with maximum terms of five years. The term may be extended if authorized by the Board. Costa Mesa Sanitary District ... an Independent Special District CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION Item Number:27. Recommendation/Notes: (Government Code Section 54956.9 (d)(1)): 1. Costa Mesa Sanitary District v. Santa Ana Regional Water Quality Control Board (OC Sup Ct #30-2016-0084260 CU-CM-CJC)