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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
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Run Date(s):Wednesday, June 22, 2016
Color Spec.B/W
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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
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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
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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
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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.
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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
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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.
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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.
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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
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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®.
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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
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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.
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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.
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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.
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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.
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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
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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
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“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. We may collect
personal information directly from you from
applications, forms, or communications we receive
from you, or from other sources on your behalf, in
connection with our provision of products or services
to you. We may also collect browsing information
from your Internet browser, computer, mobile device
or similar equipment. This browsing information is
generic and reveals nothing personal about the user.
Use of Your Information. We may use your
information to provide products and services to you
(or someone on your behalf), to improve our products
and services, and to communicate with you about our
products and services. We do not give or sell your
personal information to parties outside of FNF for
their use to market their products or services to you.
Security Of Your Information. We utilize a
combination of security technologies, procedures and
safeguards to help protect your information from
unauthorized access, use and/or disclosure. We
communicate to our employees about the need to
protect personal information.
Choices With Your Information. Your decision to
submit personal information is entirely up to you. You
can opt-out of certain disclosures or use of your
information or choose to not provide any personal
information to us.
When We Share Information. We may disclose your
information to third parties providing you products
and services on our behalf, law enforcement agencies
or governmental authorities, as required by law, and to
parties with whom you authorize us to share your
information.
Information From Children. We do not knowingly
collect information from children under the age of 13,
and our websites are not intended to attract children.
Privacy Outside the Website. We are not responsible
for the privacy practices of third parties, even if our
website links to those parties’ websites.
Access and Correction. If you desire to see the
information collected about you and/or correct any
inaccuracies, please contact us in the manner specified
in this Privacy Notice.
Do Not Track Disclosures. We do not recognize “do
not track” requests from Internet browsers and similar
devices.
The California Online Privacy Protection Act.
Certain FNF websites collect information on behalf of
mortgage loan servicers. The mortgage loan servicer is
responsible for taking action or making changes to any
consumer information submitted through those
websites.
International Use. By providing us with your
information, you 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.
Your Consent To This Privacy Notice. By
submitting information to us and using our websites,
Contact FNF. If you have questions or wish to
contact us regarding this Privacy Notice, please use
FNF Privacy Notice
Effective: April 1, 2016
you are accepting and agreeing to the terms of this
Privacy Notice.
the contact information provided at the end of this
Privacy Notice.
FIDELITY NATIONAL FINANCIAL, INC.
PRIVACY NOTICE
FNF respects and is committed to protecting your privacy. We pledge to
take reasonable steps to protect your Personal Information (as defined
herein) and to ensure your information is used in compliance with this
Privacy Notice.
This Privacy Notice is only in effect for information collected and/or
owned by or on behalf of FNF, including collection through any FNF
website or online services offered by FNF (collectively, the “Website”),
as well as any information collected offline (e.g., paper documents). The
provision of this Privacy Notice to you does not create any express or
implied relationship, nor create any express or implied duty or other
obligation, between FNF and you.
Types of Information Collected
We may collect two types of information: Personal Information and
Browsing Information.
Personal Information. The types of personal information FNF collects
may include, but are not limited to:
•contact information (e.g., name, address, phone number, email
address);
•social security number (SSN), driver’s license, and other
government ID numbers; and
•financial account or loan information.
Browsing Information. The types of browsing information FNF collects
may include, but are not limited to:
•Internet Protocol (or IP) address or device ID/UDID, protocol and
sequence information;
•browser language;
•browser type;
•domain name system requests;
•browsing history;
•number of clicks;
•hypertext transfer protocol headers; and
•application client and server banners.
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;
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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
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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.
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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)
