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2016_07_28_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, July 28, 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 June 14, 2016 Recommendation: That the Board of Directors approve and file. 2.Board of Directors Special Meeting of June 23, 2016 Recommendation: That the Board of Directors approve and file. 3.Board of Directors Regular Meeting Minutes of June 23, 2016 Recommendation: That the Board of Directors approve and file. 4.Occupancy Report and Payment to CR&R Environmental Services Recommendation: That the Board of Directors: 1. Accepts the occupancy count as presented using 22,398 as the correct number of active units. 2. Directs staff to prepare a warrant to CR&R Environmental Services for June 2016 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $219,397.37 to be ratified in the July 2016 warrant list. 5.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 $197,165.93 for June 2016 recycling and disposal services to be ratified in the July 2016 warrant register. 6.Adoption of a Warrant Resolution No. CMSD 2017-01 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2017-01 approving District warrants for the Month of June 2016 in the amount of $1,012,933.29. 7.Payroll Transparency Disclosure for June 2016 Recommendation: That the Board of Directors approve and file. 8.Directors’ Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the following: a. Directors’ compensation for the month of June 2016; and b. Directors’ reimbursement of expenses for the month of June 2016. 9.Sewer Lateral Assistance Program (SLAP) Update Recommendation: That the Board of Directors approve and file. 10.Resolution No. 2016-890 Ordering that Publication of Ordinance No. 115 Confirming Annual Charges for Solid Waste and Wastewater for 2016-17 has Occurred Recommendation: That the Board of Directors adopt Resolution No. 2016- 890. ------------------------------- END OF CONSENT CALENDAR------------------------------- IX.PUBLIC HEARINGS X.GENERAL MANAGER 11.Preliminary FY 2015-16 Year-End Budget (4th Quarter Budget Report) Recommendation: That the Board of Directors receive and files the report. 12.CMSD Contribution Program Application – CMHS Mustang Football Stadium Banners Recommendation: That the Board of Directors accepts the application from the CMHS Mustang Football Program and approve a monetary contribution of $1000 for two stadium banners. 13.Unfunded Other Post-Employment Benefits (OPEB) Recommendation: That the Board of Directors approve a $125,000 appropriation from Net Position towards paying down the District’s California Employers’ Retiree Benefit Trust Fund (CERBT) obligation as of June 30, 2016. 14.FY 2015-20 Strategic Plan Update (4th Quarter) Recommendation: That the Board of Directors accepts and files the report. 15.Reschedule August 9, 2016 Study Session and Host the Meeting at 290 Paularino Avenue – Oral Report Recommendation: That the Board of Directors approves rescheduling the August 9, 2016 study session meeting to August 16, 2016 and direct staff to host the meeting at 290 Paularino Avenue. 16.Rewarding Ideas Program Recommendation: That the Board of Directors approves rewarding Joel Ortiz, Wastewater Maintenance Worker III, $500.00 for his idea to relocating the Adams Pump Station mobile generator to Calvert Avenue. XI.ENGINEER'S REPORTS 17.Project Status Report Recommendation: That the Board of Directors receive and file the report. 18.Conflict of Interest Report 1. 227 22nd Street, Costa Mesa, which is owned / developed by Mark Cernicky. 19.Project No. 310 – Indus Sewer and Manhole Rehabilitation – Acceptance of Improvements Recommendation: That the Board of Directors approves the following: 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. 20.Project No. 316 Adams Pump Station Electrical Improvements – Consideration of Easement Agreement and Temporary Construction Easement Agreement Recommendation: That the Board of Directors approves the following: 1. Approve and execute the Easement Agreement and transmit to the County Recorder for recording. 2. Authorize payment to Mr. Ibarra in the amount of $10,000. 3. Approve and execute the Temporary Construction Easement Agreement. 4. Direct the General Manager to continue proceeding with the project. XII.TREASURER'S REPORTS 21.Investment Report for the Month of June 2016 Recommendation: That the Board of Directors approves the Investment Report for the month of June 2016. 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 22.Resolution No. 2016-891 Nomination to Serve on the Executive Committee of the Independent Special District of Orange County (ISDOC) Recommendation: That the Board of Directors adopt Resolution No. 2016- 891 nominating President Scheafer to serve as President of the Executive Committee of ISDOC. 23.Resolution No. 2016-892 Nomination to Serve on the Executive Committee of the Independent Special District of Orange County (ISDOC) Recommendation: That the Board of Directors adopt Resolution No. 2016- 892 nominating Assistant Secretary Schafer to serve as Vice President of the Executive Committee of ISDOC. 24.Mesa Water District Special Districts Shared Efficiencies Study Recommendation: That the Board of Directors discuss the study and provide direction to staff. 25.Professional Consulting Services Recommendation: That the Board of Directors considers entering into an agreement with Roget Faubel Public Affairs, Inc. for professional consulting services. XVII.ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVIII.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) 27.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to para (2) of subdivision (d) of Government Code Section 54956.9 (1 case) XIX.RECONVENE TO OPEN SESSION XX.ADJOURNMENT UPCOMING CMSD AND COMMUNITY EVENTS AND ACTIVITIES •Orange County Fair, July 15 – August 14, 2016, 100 Fair Drive, Costa Mesa. •Concerts in the Park, Tuesday, July 26, 2016 from 5:00 pm to 9:00 pm at Fairview Park, 2501 Placentia Avenue. •Concert on the Green, Sunday, July 31, 2016 from 6:00 pm to 7:30 pm at Newport Beach Civic Center Green, 100 Civic Center Drive. •Symphony in the Cities, Sunday, August 14, 2016 from 5:30 pm to 8:30 pm at Newport Beach Civic Center, 100 Civic Center Drive. •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). Costa Mesa Sanitary District ... an Independent Special District Board of Directors Study Session Meeting Minutes of June 14, 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 June 14, 2016 Backup Material COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS STUDY SESSION JUNE 14, 2016 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in study session on June 14, 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, James Ferryman Arlene Schafer STAFF PRESENT: Robin Hamers, District Engineer; Wendy Davis, Finance Manager; Ed Roberts, Code Enforcement Officer; Gina Terraneo, Management Analyst I. OTHERS PRESENT: Dean Ruffridge, CR&R; Lawrence Jones, CR&R; Jim Mosher, resident; Dr. Sally Geislar, UC Irvine; Shawna Schaffner, CAA Planning; Jeff Reese, C.J. Segerstrom & Sons; Carmen Twork, C.J. Segerstrom & Sons; Luke Money, Daily Pilot; Cassidy Lundy, Surfrider Foundation. PUBLIC COMMENTS President Scheafer opened public comments. Jim Mosher, a member of the public, initiated a brief discussion regarding the District’s public comment policies. 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 JUNE 14, 2016 ______________________________________________________________________ ITEMS OF STUDY 1. Organics Recycling Tonnages – FY2015-16 Recommendation: That the Board of Directors receive and file the report. Gina Terraneo, Management Analyst I, reported that a total of 707.23 tons of organic waste was collected in the month of May 2016. There were no questions or comments and the Board of Directors received and filed the report. 3. Code Enforcement Officer Report – May 2016 Recommendation: That the Board of Directors receive and file the report. Ed Roberts, Code Enforcement Officer, provided report details and noted that there were 7 scavenging investigations and 95 cases of trash carts in public view in May. President Scheafer noted that Mr. Roberts provided report details for Item 3, which will be followed by the report for Item 2. There were no additional questions or comments and the Board of Directors received and filed the report. 2. 3316 Alabama Circle Recommendation: That the Board of Directors receive oral report from Code Enforcement Officer, Ed Roberts. Mr. Roberts presented an overview of the issues reported by the homeowner of 3316 Alabama Circle, including photos of the disputed parking stall. He noted that he has advised the homeowner that the District does not have the authority to police or enforce parking activity and trash cart movement. Discussion followed regarding correspondence between Mr. Roberts, the reporting party, and the causing party. There were no additional questions or comments. The Board of Directors directed staff to send a final correspondence to the homeowner of 3316 Alabama Circle. 4. Organics Recycling Behavioral Study – Final Report Recommendation: That the Board of Directors receive presentation from study’s author, Dr. Sally Geislar. Dr. Geislar of UC Irvine presented the key findings of the Organics Recycling Behavioral Study and addressed questions from the Board of Directors. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 14, 2016 ______________________________________________________________________ Discussion followed regarding the possibility of Dr. Geislar providing participant information to obtain testimonials for the Organics Recycling Program, the distribution of recommended educational materials, and an update about the progress of CR&R’s Anaerobic Digestion Facility. There were no additional questions or comments and the Board of Directors received and filed the report. 5. Organics Recycling Behavioral Study Recommendations & Plan Recommendation: That the Board of Directors give staff direction regarding the recommendations and plan for increasing participation in the Organics Recycling Program. Ms. Terraneo provided an overview of Dr. Geislar’s recommendations to increase participation in the Organics Recycling Program and staff’s plan to enact the recommendations. Discussion followed regarding the possibilities of distributing informational material in the form or door hangers or magnets and the manner of distribution. There were no additional questions or comments. The Board of Directors requested that the item be brought to the next Board Meeting on June 23, 2016 for a decision regarding the proposed magnet design. 6. Adams Pump Station Electrical Improvements Recommendation: That the Board of Directors direct staff to bring back this item to the Board of Directors June 23, 2016 meeting for approval consideration. Robin Hamers, District Engineer, provided report details. He noted that a resident on Calvert Avenue has agreed to have an easement placed on his property, which the District may use for backup power if necessary. Mr. Mosher provided commentary regarding the importance of considering sidewalk and bike accessibility surrounding the Adams Pump Station. There were no additional questions or comments and the Board of Directors received and filed the report. 7. 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 direct staff to bring back this item to the Board of Directors June 23, 2016 meeting to consider approving the following: COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 14, 2016 ______________________________________________________________________ 1. Accept the vacation in concept subject to the developer submitting a legal description and map of the Option 2 limits of vacation; and 2. Require the property owner to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement. Mr. Hamers provided an overview of the request for vacation/abandonment of the District sewer and easement and presented Options 1 and 2. He noted that staff recommends Option 2. Shawna Schaffner of CAA Planning indicated agreement that Option 2 is preferred by her represented buyer. Wendy Davis, Finance Manager, noted that if the District gifted the asset (which was initially donated to the District by C.J. Segerstrom & Sons) back to C.J. Segerstrom & Sons, the District would record a loss of $23,000 in its financial statements. Discussion followed regarding the financial impacts of vacating the sewer and whether the District should record the loss or require C.J. Segerstrom & Sons to pay for the asset. Mr. Mosher provided commentary regarding the impact of the abandonment on District ratepayers. There were no additional questions or comments. The Board of Directors directed staff to bring the item to the Board Meeting on June 23, 2016 for further discussion and a decision. President Scheafer adjourned the meeting to a brief recess at 11:05 A.M. President Scheafer reconvened the meeting at 11:08 A.M. 8. Joint Study with Mesa Water District – Optimum Government Structure Recommendation: That the Board of Directors direct staff to bring this item back on June 23, 2016 to consider appointing two directors and staff members to serve on Mesa Water’s Executive Committee and appropriate $15,000 to perform the study. President Scheafer provided an overview of the history of correspondence between Mesa Water District and the District regarding the proposed joint study. He noted that Mesa Water District has scheduled an Adjourned Regular Board Meeting on June 16, 2016 to award a contract for the study. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS STUDY SESSION HELD JUNE 14, 2016 ______________________________________________________________________ Discussion followed regarding the rapidity of Mesa Water District’s decision to move forward with the study, the Request for Proposal (RFP) process initiated by Mesa Water District, the proposed contract and scope of work for the study, the importance of transparency in public decision making, and the health of Mesa Water District’s water delivery system. Mr. Mosher provided commentary regarding the District’s decision to relocate its headquarters to 290 Paularino, the proposed joint study, and the Liaison Committee Meetings between the District, Mesa Water District, and the City of Costa Mesa. President Scheafer noted that Mesa Water District and the City of Costa Mesa cancelled the last scheduled Liaison Committee Meeting on June 10, 2016. There were no further questions or discussion. The Board of Directors directed staff to bring the item to the Board Meeting on June 23, 2016 to further discuss the proposed joint study. 9. Future Study Session Items Recommendation: That the Board of Directors provide staff with direction on items to be placed on future study session agendas. President Scheafer requested that staff provide a brief update regarding the Art Wrap contest at the July 12, 2016 Study Session. ORAL COMMUNICATIONS AND DIRECTORS COMMENTS - NONE ADJOURNMENT There being no further business to come before the Board, President Scheafer adjourned the meeting at 11:48 A.M. _________________________ _________________________ Robert Ooten Michael Scheafer Secretary President Costa Mesa Sanitary District ... an Independent Special District Board of Directors Special Meeting of June 23, 2016 Item Number:2. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Board of Directors Special Meeting of June 23, 2016 Cover Memo COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING JUNE 23, 2016 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on June 23, 2016 at 5:00 P.M. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: Michael Scheafer, Arthur Perry, Robert Ooten, Arlene Schafer, James Ferryman None. STAFF PRESENT: Scott Carroll, General Manager; Alan Burns, District Counsel; Wendy Davis, Finance Manager; Marc Davis, District Treasurer; Robin Hamers, District Engineer; Gina Terraneo, Management Analyst I. OTHERS PRESENT: Jack Faris, Voit Real Estate; Luke Money, Daily Pilot. PUBLIC COMMENTS President Scheafer opened public comments. Seeing no one wishing to comment, President Scheafer closed public comments. BUYER REQUEST FOR BUILDING REPAIRS OF 628 W. 19TH STREET, COSTA MESA Recommendation: That the Board of Directors consider the buyer’s request for repairs and provide staff with direction. Scott Carroll, General Manager, presented the buyer’s request for building repairs to 628 W. 19th Street, Costa Mesa. Discussion followed regarding the cost and extent of the requested repairs. Vice President Perry made a motion to approve the buyer’s request for repairs. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD JUNE 23, 2016 ________________________________________________________________ Alan Burns, District Counsel, commented that the Board of Directors can approve the request with the contingency that the repairs not exceed a specified amount. Vice President Perry amended his original motion to approve the buyer’s request for repairs without exceeding a cost of $2,000. Director Ferryman suggested that the buyer be credited $2,000 on the building price to cover the requested repairs. Vice President Perry amended his original and first amended motions to approve a $2,000 credit for the buyer to cover the cost of the repairs. Assistant Secretary Schafer seconded the motion, which passed unanimously with a 5-0 vote. There was no further discussion or commentary. ADJOURNMENT There being no further business to come before the Board, President Scheafer adjourned the meeting at 5:10 P.M. _________________________ _________________________ Robert Ooten Michael Scheafer Secretary President Costa Mesa Sanitary District ... an Independent Special District Board of Directors Regular Meeting Minutes of June 23, 2016 Item Number:3. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Board of Directors Regular Meeting Minutes of June 23, 2016 Cover Memo COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 23, 2016 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on June 23, 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. Vice President Perry 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; Gina Terraneo, Management Analyst I. OTHERS PRESENT: Luke Money, The Daily Pilot; Lawrence Jones, CR&R; Jeffrey Reese, CJ Segerstrom & Sons, Shawna Schaffner, CAA Planning. CEREMONIAL MATTERS AND PRESENTATIONS – NONE ANNOUNCEMENT OF LATE COMMUNICATIONS – NONE PUBLIC COMMENTS – NONE President Scheafer opened public comments. Seeing no one from the public wishing to comment, President Scheafer closed public comments. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ CONSENT CALENDAR 1. Board of Directors Study Session Meeting Minutes of May 10, 2016 2. Board of Directors Special Meeting Minutes of May 13, 2016 3. Board of Directors Special Meeting Minutes of May 18, 2016 4. Board of Directors Regular Meeting Minutes of May 26, 2016 5. Occupancy Report and Payment to CR&R Environmental Services 6. Contract Payment to CR Transfer for Recycling & Disposal Services 7. Adoption of Warrant Resolution No. CMSD 2016-12 Approving District Warrant Registers 8. Payroll Transparency Disclosure for May 2016 9. Directors’ Compensation and Reimbursement of Expenses The Board of Directors Study Session Meeting Minutes of May 10, 2016 was approved as presented. The Board of Directors Special Meeting Minutes of May 13, 2016 was approved as presented. The Board of Directors Special Meeting Minutes of May 18, 2016 was approved as presented. The Board of Directors Regular Meeting Minutes of May 26, 2016 was approved as presented. The Board of Directors accepted the occupancy count as presented using 22,390 as the correct number of active units and directed staff to prepare a warrant to CR&R Environmental Services in the amount of $219,319.01 to be ratified in the June 2016 warrant list, for May 2016 collection. The Board of Directors approved payment to CR Transfer in the amount of $163,924.19 for recycling and disposal services for the month of May 2016. The Board of Directors adopted Warrant Resolution No. CMSD 2016-12 approving District warrants for the month of May 2016 in the amount of $3,611,410.27. The Board of Directors approved the Payroll Transparency Disclosure for May 2016 as presented. The Board of Directors approved the Directors’ Compensation and Reimbursement of Expenses for May 2016 as presented. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ 10. Sewer Lateral Assistance Program (SLAP) Update 11. Investment Report for the Month of May 2016 12. Resolution No. 2016-885 – Board of Directors Health Insurance 13. 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 The Board of Directors approved the SLAP report as presented. The Board of Directors approved the Investment Report for the month of May 2016 as presented. President Scheafer pulled Item 12 for discussion. The Board of Directors adopted Resolution No. 2016-886 as presented. The Board of Directors approved and filed the Auditor Communication Letter as presented. Vice President Perry made a motion to approve the Consent Calendar as presented, except for Item 12. Assistant Secretary Schafer seconded the motion, which passed unanimously with a 5-0 vote. President Scheafer asked if a Board Member that was elected in November of 2016 would have the opportunity to purchase a health care plan. Scott Carroll, General Manager, noted that they would not. President Scheafer made a motion to approve Item 12. 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 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 COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ 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. Mr. Carroll presented the report and noted that there was no increase to the District’s solid waste annual charges. President Scheafer opened the public hearing. Seeing no one wishing to comment, President Scheafer closed the public hearing. Vice President Perry made a motion to adopt Resolution No. 2016-887. Director Ferryman seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. 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 Mr. Carroll presented the report and noted that was a 2% increase in the annual wastewater charge. President Scheafer opened the public hearing. Seeing no one wishing to comment, President Scheafer closed the public hearing. Assistant Secretary Schafer made a motion to adopt Resolution No. 2016-888. Secretary Ooten seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. 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. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ Mr. Carroll presented Ordinance No. 115. President Scheafer opened the public hearing. Seeing no one wishing to comment, President Scheafer closed the public hearing. Vice President Perry made a motion to adopt Ordinance No. 115. Assistant Secretary Schafer seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. GENERAL MANAGER’S REPORTS 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. Vice President Perry recused himself at 5:40 P.M. due to his relationship to the contribution requestor, Chuck Perry. Gina Terraneo, Management Analyst I, presented the request for a monetary contribution of $500 for an Estancia Boosters stadium banner. Secretary Ooten made a motion to approve the monetary contribution of $500. Assistant Secretary Schafer seconded the motion, which carried unanimously with a 4-0-1 vote with Vice President Perry abstaining. There were no further questions or comments. Vice President Perry reentered the meeting at 5:41 P.M. 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 Wendy Davis, Finance Manager, presented report details. Secretary Ooten requested that Mr. Carroll send a letter to the Orange County Sanitation District to confirm that Project #101 will no longer take place. Discussion followed regarding the project’s status. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ Assistant Secretary Schafer made a motion to approve the unappropriation of funds from Westside Pump Station Abandonment Project #101 to Net Position. Secretary Ooten seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. 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. Mr. Carroll presented the available candidates for election. Assistant Secretary Schafer suggested that the Board of Directors support Bill Nelson. Assistant Secretary Schafer made a motion to elect Bill Nelson and authorize President Scheafer to vote on behalf of the District. Director Ferryman seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. 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. Secretary Ooten suggested that Item 24 be moved up in the agenda to accommodate members of the public in attendance. President Scheafer allowed for Item 24 to be moved up in the agenda. Rob Hamers, District Engineer, provided report details. Alan Burns, District Counsel, noted that an indemnification agreement should be included in the recommendation to cover the sewer’s use. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ Discussion followed regarding the intended use of the sewer and how the District should go about abandoning the sewer. President Scheafer invited Shawna Schaffner of CAA Planning and Jeff Reese of CJ Segerstrom & Sons to provide comments. Ms. Schaffner and Mr. Reese provided comments regarding staff’s recommendation and the approximate value of the sewer. Secretary Ooten made a motion for the following action, as a result of the discussed findings that the Board of Directors see value in abandoning the sewer and easement as they provide no value for the District to keep and maintain:  Accept Option 2, as agreed to by the buyer/developer, as the preferred alternative;  Refrain from requiring compensation from the property owner for the quitclaim;  Prepare, approve, and record the quitclaim deed with the legal description and map as attachments;  Require the buyer/developer to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement; and  Include an indemnification agreement to hold the District harmless for anything that may result from the District allowing the sewer to stay in the ground. Assistant Secretary Schafer seconded the motion, which passed unanimously with a 5- 0 vote. There were no further questions or comments. 21. Joint Study with Mesa Water District – Optimum Government Structure Recommendation: That the Board of Directors give staff direction. Mr. Carroll provided report details. Secretary Ooten noted that he attended Mesa Water District’s June 16, 2016 Board Meeting and provided an overview of the meeting. Discussion followed regarding concerns about the District’s lack of input in the Request for Proposal (RFP) and the cost of the joint study. Director Ferryman suggested that the Board of Directors write a letter to decline participation in the joint study. Discussion followed regarding the method by which Arcadis will gather information for the study, the focus areas of the study, and the importance of transparency to the RFP process. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ Director Ferryman made a motion to enact Option 3 and send a letter to Mesa Water District declining participation in the joint study. Assistant Secretary Schafer seconded the motion, which passed unanimously with a 5-0 vote. Discussion followed regarding how to proceed with the editing process for the letter. There were no further questions or comments. ENGINEER’S REPORTS 22. 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. There were no further questions or comments and the report was received. 23. Conflict of Interest Report Nothing to report at this time. Mr. Hamers noted that there is nothing to report at this time. 25. Adams Pump Station Electrical Improvements 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 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. Mr. Hamers presented report details. Secretary Ooten made a motion to approve the appropriation of $116,000 from Net Position, approve the points described in the staff report, and direct the General Manager to complete the project. Director Ferryman seconded the motion, which carried unanimously with a 5-0 vote. There were no further questions or comments. TREASURER’S REPORTS COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ 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. District Treasurer, Marc Davis, provided report details and noted that the redline version of the Investment Policy was included to show changes made. Vice President Perry made a motion to adopt Resolution No. 2016-889 and delegate the investment function to the District Treasurer for FY 2016-17. Director Ferryman seconded the motion, which passed unanimously with a 5-0 vote. There were no further questions or comments. 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 there is a joint open house with OCSD and Orange County Water District (OCWD) on August 13, 2016. B. Santa Ana River Flood Protection Agency (SARFPA) – (Vice President Perry) Recommendation: That the Board of Directors accepts oral report. Vice President Perry shared the he and Director Ferryman attended SARFPA. He noted that Director Ferryman was elected as Vice President of SARFPA. C. Independent Special Districts of Orange County (ISDOC) – (President Scheafer) Recommendation: That the Board of Directors accepts oral report. President Scheafer noted that he missed the last ISDOC meeting. D. California Special Districts Association (CSDA) - (Assistant Secretary Schafer) Recommendation: That the Board of Directors accepts oral report. Assistant Secretary Schafer shared that she attended CSDA’s Strategic Planning Session in Lake Tahoe. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD JUNE 23, 2016 ______________________________________________________________________ E. Special District Risk Management Authority (SDRMA) – (President Scheafer) Recommendation: That the Board of Directors accepts oral report. President Scheafer noted that he attended the SDRMA Conference in Atlanta. 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. Vice President Perry noted that he attended a Water Advisory Committee of Orange County (WACO) meeting on June 3, 2016. Secretary Ooten shared that he and Vice President Perry attended a Chamber of Commerce meeting. OLD BUSINESS – NONE NEW BUSINESS – NONE ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Assistant Secretary Schafer shared that CSDA will be holding its annual conference in San Diego from October 10-13, 2016. Mr. Burns noted that the Attorney General requested more time to prepare the record in regards to closed session Item 27. President Scheafer noted that a closed session discussion of Item 27 is no longer necessary as there is nothing new to report. Discussion followed regarding scheduling a tour of CR&R’s AD Facility. ADJOURNMENT There being no further business to come before the Board, President Scheafer adjourned the meeting at 7:13 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:4. Recommendation/Notes: Recommendation: That the Board of Directors: 1. Accepts the occupancy count as presented using 22,398 as the correct number of active units. 2. Directs staff to prepare a warrant to CR&R Environmental Services for June 2016 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $219,397.37 to be ratified in the July 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: July 28, 2016 Subject: OCCUPANCY REPORT AND PAYMENT TO CR&R ENVIRONMENTAL SERVICES Summary The total occupancy count for June 2016 billing is 22,398, with eight (8) 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 22,398 as the correct number of active units. 2. The Board of Directors directs staff to prepare a warrant to CR&R Environmental Services for June 2016 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $219,397.37 to be ratified in the July 2016 warrant list. The payment calculation is based on the following:  District Current Rate for April of 2016: 22,398 x $9.7954 = $219,397.37 Attachments: A. June 2016 Occupancy Report Costa Mesa Sanitary DistrictOccupancy Report June 2016 Total Accounts 22,398 35 Gallon Waste Carts 919 60 Gallon Waste Carts 29782 90 Gallon Waste Carts 14592 35 Gallon Organic Carts 107 60 Gallon Organic Carts 19982 Total Carts 65,382 Cart Delivery Information/Start Standard Service Service Address Date Delivered RESIDENT 1634 LATITUDE SOUTH 6/2/2016 60 GAL BARREL DELIVERY RESIDENT 151 MERCER 6/7/2016 60 GAL BARREL DELIVERY RESIDENT 3051 PARAGON 6/10/2016 60 GAL BARREL DELIVERY RESIDENT 3061 PARAGON 6/14/2016 60 GAL BARREL DELIVERY RESIDENT 393 LATITUDE EAST 6/27/2016 60 GAL BARREL DELIVERY RESIDENT 1630 LATITUDE SOUTH 6/27/2016 60 GAL BARREL DELIVERY RESIDENT 391 LATITUDE EAST 6/27/2016 60 GAL BARREL DELIVERY RESIDENT 2183 MINER ST 6/20/2016 60 GAL BARREL DELIVERY Telephone # Costa Mesa Sanitary District ... an Independent Special District Contract Payment to CR Transfer for Recycling & Disposal Services Item Number:5. Recommendation/Notes: Recommendation: That the Board of Directors directs staff to prepare a warrant to CR Transfer in the amount of $197,165.93 for June 2016 recycling and disposal services to be ratified in the July 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: July 28, 2016 Subject: Contract Payment to CR Transfer for Recycling & Disposal Services Summary The Board of Directors approves payment to CR Transfer Services for recycling and disposal services for the month of June 2016 as detailed below: Staff Recommendation That the Board of Directors directs staff to prepare a warrant to CR Transfer in the amount of $197,165.93 for June 2016 recycling and disposal services to be ratified in the July 2016 warrant register. Costa Mesa Sanitary District ... an Independent Special District Adoption of a Warrant Resolution No. CMSD 2017-01 Approving District Warrant Registers Item Number:6. Recommendation/Notes: Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2017-01 approving District warrants for the Month of June 2016 in the amount of $1,012,933.29. ATTACHMENTS: Description Type Adoption of a Warrant Resolution No. CMSD 2017-01 Approving District Warrant Registers Cover Memo COSTA MESA SANITARY DISTRICT Warrant Resolution No. CMSD 2017-01 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 $1,012,933.29 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 28th day of July 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 2017-01 was duly adopted by the Costa Mesa Sanitary District at a regular meeting held on the 28th day of July 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 28th day of July 2016. District Clerk of the Costa Mesa Sanitary District User: Printed:7/6/2016 - 3:27 PM Checks for Approval Accounts Payable ktran Check Number Check Date Account Name Vendor NameFund Name Void Amount Employment Development Department 0 06/06/2016 Liquid Waste Fund State Withholding Taxes 107.14 Check Total: 107.14 Internal Revenue Service 0 06/01/2016 Liquid Waste Fund Medicare - Employee 121.96 Internal Revenue Service 0 06/01/2016 Liquid Waste Fund Medicare - Employee 121.96 Internal Revenue Service 0 06/01/2016 Liquid Waste Fund FICA - Employee 521.47 Internal Revenue Service 0 06/01/2016 Liquid Waste Fund Federal Withholding Taxes 576.10 Internal Revenue Service 0 06/01/2016 Liquid Waste Fund FICA - Employee 521.47 Check Total: 1,862.96 Cal PERS 0 06/06/2016 Solid Waste Fund Benefits Admin Costs 5.00 Cal PERS 0 06/06/2016 Solid Waste Fund Benefits Admin Costs 22.50 Cal PERS 0 06/06/2016 Liquid Waste Fund PERS Medical 12,699.52 Cal PERS 0 06/06/2016 Liquid Waste Fund Benefits Admin Costs 202.50 Cal PERS 0 06/06/2016 Liquid Waste Fund Sewer Maint-Benefit Admin 75.00 Cal PERS 0 06/06/2016 Liquid Waste Fund Benefits Admin Costs 44.96 Check Total: 13,049.48 Cal Pers Employee Ret System 0 06/15/2016 Liquid Waste Fund PERS - Employer 764.10 Cal Pers Employee Ret System 0 06/15/2016 Solid Waste Fund PERS - Employer 84.90 Cal Pers Employee Ret System 0 06/15/2016 Liquid Waste Fund PERS - Employer 17.10 Cal Pers Employee Ret System 0 06/15/2016 Solid Waste Fund PERS - Employer 1.90 Check Total: 868.00 Employment Development Department 0 06/08/2016 Liquid Waste Fund State Withholding Taxes 1,662.69 Check Total: 1,662.69 Internal Revenue Service 0 06/08/2016 Liquid Waste Fund Federal Withholding Taxes 5,735.49 Internal Revenue Service 0 06/08/2016 Liquid Waste Fund Medicare - Employee 735.94 Internal Revenue Service 0 06/08/2016 Liquid Waste Fund Medicare - Employee 735.94 Check Total: 7,207.37 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 1 Check Number Check Date Account Name Vendor NameFund Name Void Amount Cal Pers Employee Ret System 0 06/08/2016 Liquid Waste Fund PERS Retirement 65.54 Cal Pers Employee Ret System 0 06/08/2016 Liquid Waste Fund PERS Retirement 49.06 Cal Pers Employee Ret System 0 06/08/2016 Liquid Waste Fund PERS Retirement 3,682.99 Cal Pers Employee Ret System 0 06/08/2016 Liquid Waste Fund PERS Retirement 2,474.43 Cal Pers Employee Ret System 0 06/08/2016 Liquid Waste Fund PERS Survivor Benefit 15.81 Cal Pers Employee Ret System 0 06/08/2016 Liquid Waste Fund PERS Retirement 700.82 Check Total: 6,988.65 Employment Development Department 0 06/29/2016 Liquid Waste Fund State Withholding Taxes 107.14 Check Total: 107.14 Internal Revenue Service 0 06/29/2016 Liquid Waste Fund FICA - Employee 521.47 Internal Revenue Service 0 06/29/2016 Liquid Waste Fund Medicare - Employee 121.96 Internal Revenue Service 0 06/29/2016 Liquid Waste Fund Medicare - Employee 121.96 Internal Revenue Service 0 06/29/2016 Liquid Waste Fund FICA - Employee 521.47 Internal Revenue Service 0 06/29/2016 Liquid Waste Fund Federal Withholding Taxes 576.10 Check Total: 1,862.96 Cal Pers Employee Ret System 0 06/22/2016 Liquid Waste Fund PERS Retirement 3,806.68 Cal Pers Employee Ret System 0 06/22/2016 Liquid Waste Fund PERS Retirement 700.82 Cal Pers Employee Ret System 0 06/22/2016 Liquid Waste Fund PERS Retirement 65.54 Cal Pers Employee Ret System 0 06/22/2016 Liquid Waste Fund PERS Survivor Benefit 15.81 Cal Pers Employee Ret System 0 06/22/2016 Liquid Waste Fund PERS Retirement 2,593.88 Cal Pers Employee Ret System 0 06/22/2016 Liquid Waste Fund PERS Retirement 49.06 Employment Development Department 0 06/22/2016 Liquid Waste Fund State Withholding Taxes 2,124.51 Internal Revenue Service 0 06/22/2016 Solid Waste Fund Medicare - Employer 10.40 Internal Revenue Service 0 06/22/2016 Liquid Waste Fund Medicare - Employee 825.62 Internal Revenue Service 0 06/22/2016 Liquid Waste Fund PERS - Employer 29.04 Internal Revenue Service 0 06/22/2016 Liquid Waste Fund Federal Withholding Taxes 7,152.58 Internal Revenue Service 0 06/22/2016 Liquid Waste Fund Medicare - Employee 786.18 Check Total: 18,160.12 Bank of America 0 06/15/2016 Solid Waste Fund Investment Earnings 493.38 Check Total: 493.38 Bank of America 0 06/03/2016 Solid Waste Fund Investment Earnings 120.39 Check Total: 120.39 CR&R Incorporated Environmental Services 15189 06/02/2016 Solid Waste Fund Trash Hauler 219,221.05 Check Total: 219,221.05 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 58.97 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 2 Check Number Check Date Account Name Vendor NameFund Name Void Amount Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 38.19 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 164.89 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 220.58 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 258.52 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 276.79 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 52.87 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 63.13 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 243.19 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 68.54 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 68.87 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 28.55 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 677.57 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 171.17 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 125.22 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 62.60 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 358.57 Southern California Edison 15190 06/02/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 161.92 Check Total: 3,100.14 Spec Dist Risk Mgt Authority 15191 06/02/2016 Liquid Waste Fund Cafeteria Plan 151.84 Spec Dist Risk Mgt Authority 15191 06/02/2016 Liquid Waste Fund Benefits Admin Costs 38.32 Spec Dist Risk Mgt Authority 15191 06/02/2016 Solid Waste Fund Benefits Admin Costs 15.14 Spec Dist Risk Mgt Authority 15191 06/02/2016 Liquid Waste Fund Vision Insurance 214.85 Spec Dist Risk Mgt Authority 15191 06/02/2016 Solid Waste Fund Cafeteria Plan 53.90 Spec Dist Risk Mgt Authority 15191 06/02/2016 Liquid Waste Fund Dental Insurance 930.04 Spec Dist Risk Mgt Authority 15191 06/02/2016 Liquid Waste Fund Swr Maint - Cafeteria Plan 96.74 Spec Dist Risk Mgt Authority 15191 06/02/2016 Liquid Waste Fund Swr Maint - Cafeteria Plan 181.91 Spec Dist Risk Mgt Authority 15191 06/02/2016 Solid Waste Fund Cafeteria Plan 102.52 Spec Dist Risk Mgt Authority 15191 06/02/2016 Liquid Waste Fund Cafeteria Plan 70.48 Check Total: 1,855.74 TelePacific Communications 15192 06/02/2016 Liquid Waste Fund EOC Equipment & Supplies 275.99 TelePacific Communications 15192 06/02/2016 Solid Waste Fund EOC Equipment & Supplies 30.67 Check Total: 306.66 AT&T 15238 06/10/2016 Liquid Waste Fund Sewer Maint-Telephone 46.00 AT&T 15238 06/10/2016 Solid Waste Fund Telephone 9.16 AT&T 15238 06/10/2016 Liquid Waste Fund Telephone 0.40 AT&T 15238 06/10/2016 Solid Waste Fund Telephone 120.97 AT&T 15238 06/10/2016 Liquid Waste Fund Telephone 1,088.77 AT&T 15238 06/10/2016 Liquid Waste Fund Telephone 82.48 AT&T 15238 06/10/2016 Solid Waste Fund Telephone 0.04 AT&T 15238 06/10/2016 Liquid Waste Fund Sewer Maint-Telephone 0.44 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 3 Check Number Check Date Account Name Vendor NameFund Name Void Amount Check Total: 1,348.26 Birch Communications 15239 06/10/2016 Liquid Waste Fund Sewer Maint-Telephone 797.43 Birch Communications 15239 06/10/2016 Solid Waste Fund Telephone 26.80 Birch Communications 15239 06/10/2016 Liquid Waste Fund Telephone 241.15 Check Total: 1,065.38 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies -23.17 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 175.70 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies -107.84 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 12.94 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 306.10 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 37.33 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 11.28 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Pump Stn Maint 662.98 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Staff Development 605.07 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Staff Development 34.00 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Staff Development 605.07 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 41.69 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Bldg Maint 59.11 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 16.18 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 316.94 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Staff Development 13.84 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Pump Stn Maint 10.09 Bank of America 15240 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 38.86 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 11.68 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 157.50 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 7.00 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 11.40 Bank of America 15240 06/10/2016 Solid Waste Fund Public Info/Ed/Community Prom -2.70 Bank of America 15240 06/10/2016 Solid Waste Fund Public Info/Ed/Community Prom 25.00 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 64.93 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development -22.50 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 5.65 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 1.30 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 102.60 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 50.88 Bank of America 15240 06/10/2016 Solid Waste Fund Computer Licenses & Maint 4.55 Bank of America 15240 06/10/2016 Liquid Waste Fund Public Info/Ed/Community Promo 32.56 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 21.58 Bank of America 15240 06/10/2016 Solid Waste Fund Public Info/Ed/Community Prom 3.62 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 17.50 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 63.00 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 4 Check Number Check Date Account Name Vendor NameFund Name Void Amount Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 2.40 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development -2.50 Bank of America 15240 06/10/2016 Liquid Waste Fund Public Info/Ed/Community Promo -24.24 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 7.21 Bank of America 15240 06/10/2016 Liquid Waste Fund Computer Licenses & Maint 40.99 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 21.80 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 4.20 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 160.16 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 2.19 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 395.91 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 8.79 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 39.38 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 2.55 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 19.69 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 1.66 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 4.37 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 13.50 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 17.80 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 8.81 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 3.31 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 3.32 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 43.99 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 37.80 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 13.50 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 79.13 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 1.66 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 14.95 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 43.59 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 43.59 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 2.19 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 29.88 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 2.55 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 1.66 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 493.90 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 14.92 Bank of America 15240 06/10/2016 Solid Waste Fund Building Maintenance 10.78 Bank of America 15240 06/10/2016 Liquid Waste Fund Building Maintenance 31.09 Bank of America 15240 06/10/2016 Solid Waste Fund Building Maintenance 3.45 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 196.15 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 14.92 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 79.25 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 392.31 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 22.97 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 27.00 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 5 Check Number Check Date Account Name Vendor NameFund Name Void Amount Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 392.31 Bank of America 15240 06/10/2016 Solid Waste Fund Board Development 3.00 Bank of America 15240 06/10/2016 Liquid Waste Fund Building Maintenance 97.00 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 22.97 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 2.55 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 1.50 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 22.97 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 14.95 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 1.66 Bank of America 15240 06/10/2016 Solid Waste Fund Staff Development 1.50 Bank of America 15240 06/10/2016 Liquid Waste Fund Board Development 29.84 Bank of America 15240 06/10/2016 Liquid Waste Fund Staff Development 19.69 Check Total: 6,314.19 Harper & Burns LLP 15241 06/10/2016 Solid Waste Fund Legal Services 1,804.52 Harper & Burns LLP 15241 06/10/2016 Liquid Waste Fund Legal Services 7,218.08 Harper & Burns LLP 15241 06/10/2016 Liquid Waste Fund Legal Services 1,556.30 Harper & Burns LLP 15241 06/10/2016 Liquid Waste Fund Legal Services 2,465.00 Harper & Burns LLP 15241 06/10/2016 Liquid Waste Fund Legal Services 9.95 Harper & Burns LLP 15241 06/10/2016 Liquid Waste Fund Legal Services 315.20 Harper & Burns LLP 15241 06/10/2016 Liquid Waste Fund Legal Services 1,182.00 Check Total: 14,551.05 C3 Office Solutions LLC 15242 06/10/2016 Liquid Waste Fund Equipment Maintenance 71.80 C3 Office Solutions LLC 15242 06/10/2016 Solid Waste Fund Equipment Maintenance 7.98 Check Total: 79.78 CoreLogic Solutions, LLC 15243 06/10/2016 Liquid Waste Fund Computer Licenses & Maint 135.00 CoreLogic Solutions, LLC 15243 06/10/2016 Solid Waste Fund Computer Licenses & Maint 15.00 Check Total: 150.00 CR&R Incorporated Environmental Services 15244 06/10/2016 Solid Waste Fund Household Hazardous Waste 392.00 Check Total: 392.00 C&R Drains Inc. 15245 06/10/2016 Liquid Waste Fund Sewer Maint-Pump Stn Maint 100.00 C&R Drains Inc. 15245 06/10/2016 Liquid Waste Fund Sewer Maint-Annual Sewer Maint 465.00 Check Total: 565.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 6 Check Number Check Date Account Name Vendor NameFund Name Void Amount WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Pharmaceutical Program 209.80 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Pharmaceutical Program 265.15 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Pharmaceutical Program 407.80 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Pharmaceutical Program 235.67 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Pharmaceutical Program 382.60 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Sharps Program 125.00 WM Curbside, LLC 15246 06/10/2016 Solid Waste Fund Pharmaceutical Program 295.75 Check Total: 2,921.77 Barbara Dahl 15247 06/10/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 Dell Marketing L.P. 15248 06/10/2016 Solid Waste Fund Office Supplies 3.35 Dell Marketing L.P. 15248 06/10/2016 Liquid Waste Fund Office Supplies 30.12 Check Total: 33.47 EBS General Engineering Inc. 15249 06/10/2016 Liquid Waste Fund Retention's Payable 546.00 EBS General Engineering Inc. 15249 06/10/2016 Liquid Waste Fund Retention's Payable 1,993.00 Check Total: 2,539.00 Environmental Engr & Cont, Inc 15250 06/10/2016 Liquid Waste Fund Sewer Maint-FOG Prog Contract 9,296.17 Environmental Engr & Cont, Inc 15250 06/10/2016 Liquid Waste Fund Sewer Maint-GIS 7,020.00 Environmental Engr & Cont, Inc 15250 06/10/2016 Liquid Waste Fund Computer Licenses & Maint 6,000.00 Check Total: 22,316.17 FedEx 15251 06/10/2016 Liquid Waste Fund Postage 27.97 FedEx 15251 06/10/2016 Liquid Waste Fund Postage 29.32 FedEx 15251 06/10/2016 Liquid Waste Fund Postage 29.32 Check Total: 86.61 Fleet Services, Inc. 15252 06/10/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 128.95 Check Total: 128.95 Franchise Tax Board 15253 06/10/2016 Liquid Waste Fund Wage Garnishment 229.13 Check Total: 229.13 GE Capital 15254 06/10/2016 Solid Waste Fund Equipment Maintenance 31.63 GE Capital 15254 06/10/2016 Liquid Waste Fund Equipment Maintenance 284.66 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 7 Check Number Check Date Account Name Vendor NameFund Name Void Amount GE Capital 15254 06/10/2016 Solid Waste Fund Equipment Maintenance 28.92 GE Capital 15254 06/10/2016 Liquid Waste Fund Equipment Maintenance 260.29 Check Total: 605.50 Gladwell Governmental Services Inc. 15255 06/10/2016 Solid Waste Fund Professional Services 25.00 Gladwell Governmental Services Inc. 15255 06/10/2016 Liquid Waste Fund Professional Services 225.00 Check Total: 250.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Engineering/Architectual Serv 1,530.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Engineering/Architectual Serv 2,467.50 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Plan Ck/Inspection-Inside 525.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Plan Ck/Inspection-Inside 105.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Plan Ck/Inspection-Outside 3,745.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Plan Ck/Inspection-Outside 525.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Plan Ck/Inspection-Swr Lateral 840.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 490.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 630.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Force Main Upgrades #200 262.50 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Force Main Upgrades #200 210.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Elden PS Valve/Repipe #202 105.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Elden PS Valve/Repipe #202 210.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund City MH Adjustment Prgm #309 3,220.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Indus Relining Project #310 1,330.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Indus Relining Project #310 997.50 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Grade 5 Pipe Rehab #314 525.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Grade 5 Pipe Rehab #314 315.00 Robin B. Hamers & Assoc., Inc. 15256 06/10/2016 Liquid Waste Fund Gisler PS Generator #315 892.50 Check Total: 18,925.00 HUB Auto Supply 15257 06/10/2016 Liquid Waste Fund Sewer Maint-Material/Supplies 4.69 HUB Auto Supply 15257 06/10/2016 Liquid Waste Fund Sewer Maint-Small Tools/Eq 30.18 HUB Auto Supply 15257 06/10/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 28.84 Check Total: 63.71 Insituform Technologies USA, LLC 15258 06/10/2016 Liquid Waste Fund Retention's Payable -5,074.93 Insituform Technologies USA, LLC 15258 06/10/2016 Liquid Waste Fund Indus Relining Project #310 101,498.50 Check Total: 96,423.57 Iron Mountain Incorporated 15259 06/10/2016 Liquid Waste Fund Contract Services 93.74 Iron Mountain Incorporated 15259 06/10/2016 Solid Waste Fund Contract Services 10.42 Check Total: 104.16 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 8 Check Number Check Date Account Name Vendor NameFund Name Void Amount Laura Lane 15260 06/10/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 645.00 Check Total: 645.00 Lan Wan Enterprise Inc 15261 06/10/2016 Liquid Waste Fund Professional Services 3,577.50 Lan Wan Enterprise Inc 15261 06/10/2016 Solid Waste Fund Professional Services 397.50 Lan Wan Enterprise Inc 15261 06/10/2016 Liquid Waste Fund Computer Licenses & Maint 144.00 Lan Wan Enterprise Inc 15261 06/10/2016 Solid Waste Fund Computer Licenses & Maint 16.00 Lan Wan Enterprise Inc 15261 06/10/2016 Liquid Waste Fund Capital Outlay 6,590.18 Lan Wan Enterprise Inc 15261 06/10/2016 Solid Waste Fund Capital Outlay 732.24 Check Total: 11,457.42 Jacqueline Mesna 15262 06/10/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 599.50 Check Total: 599.50 Mesa Water District 15263 06/10/2016 Liquid Waste Fund Sewer Maint- Water Pumps 22.50 Mesa Water District 15263 06/10/2016 Liquid Waste Fund Sewer Maint- Water Pumps 29.52 Mesa Water District 15263 06/10/2016 Liquid Waste Fund Sewer Maint- Water Pumps 22.50 Check Total: 74.52 Mouse Graphics 15264 06/10/2016 Solid Waste Fund Public Info/Ed/Community Prom 1,673.82 Check Total: 1,673.82 Kyle Nakayama 15265 06/10/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 Orange County Sanitation Distr 15266 06/10/2016 Liquid Waste Fund Due to OCSD 53,030.02 Orange County Sanitation Distr 15266 06/10/2016 Liquid Waste Fund OCSD Fees-CMSD Share -2,651.50 Check Total: 50,378.52 Orange County Sanitation Distr 15267 06/10/2016 Liquid Waste Fund Sewer Maint-FOG Prog Contract 2,035.51 Check Total: 2,035.51 Office Depot 15268 06/10/2016 Liquid Waste Fund Office Supplies 24.29 Office Depot 15268 06/10/2016 Solid Waste Fund Office Supplies 2.70 Office Depot 15268 06/10/2016 Liquid Waste Fund Building Maintenance 45.82 Office Depot 15268 06/10/2016 Solid Waste Fund Building Maintenance 5.09 Office Depot 15268 06/10/2016 Solid Waste Fund Building Maintenance 7.18 Office Depot 15268 06/10/2016 Liquid Waste Fund Building Maintenance 64.61 Office Depot 15268 06/10/2016 Solid Waste Fund Office Supplies 4.31 Office Depot 15268 06/10/2016 Liquid Waste Fund Office Supplies 38.77 Office Depot 15268 06/10/2016 Liquid Waste Fund Board Development 19.60 Office Depot 15268 06/10/2016 Solid Waste Fund Board Development 2.18 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 9 Check Number Check Date Account Name Vendor NameFund Name Void Amount Check Total: 214.55 Ortiz Landscaping & Maintenance 15269 06/10/2016 Liquid Waste Fund Sewer Maint-Bldg Maint 75.00 Ortiz Landscaping & Maintenance 15269 06/10/2016 Solid Waste Fund Building Maintenance 13.50 Ortiz Landscaping & Maintenance 15269 06/10/2016 Liquid Waste Fund Building Maintenance 121.50 Check Total: 210.00 O.S.T.S., Inc. 15270 06/10/2016 Solid Waste Fund Staff Development 157.00 O.S.T.S., Inc. 15270 06/10/2016 Liquid Waste Fund Staff Development 1,413.00 Check Total: 1,570.00 Pacific Data Electric, Inc. 15271 06/10/2016 Liquid Waste Fund Sewer Maint-Bldg Maint 1,637.50 Pacific Data Electric, Inc. 15271 06/10/2016 Liquid Waste Fund Building Maintenance 1,473.75 Pacific Data Electric, Inc. 15271 06/10/2016 Solid Waste Fund Building Maintenance 163.75 Check Total: 3,275.00 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Mileage Reimbursement 0.97 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Mileage Reimbursement 8.75 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Mileage Reimbursement 0.92 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Mileage Reimbursement 8.26 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Mileage Reimbursement 2.05 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Mileage Reimbursement 18.47 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Mileage Reimbursement 12.64 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Mileage Reimbursement 1.40 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Staff Development 19.92 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Mileage Reimbursement 0.81 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Staff Development 9.31 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Mileage Reimbursement 7.29 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Staff Development 1.04 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Public Info/Ed/Community Prom 10.09 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Public Info/Ed/Community Promo 10.09 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Mileage Reimbursement 30.78 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Mileage Reimbursement 0.65 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Staff Development 28.77 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Staff Development 1.00 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Mileage Reimbursement 5.88 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Staff Development 3.20 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Staff Development 9.00 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Staff Development 1.20 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Staff Development 10.80 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Staff Development 31.10 CMSD Petty Cash 15272 06/10/2016 Solid Waste Fund Staff Development 3.46 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Sewer Maint - Mileage Reimb 8.10 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 10 Check Number Check Date Account Name Vendor NameFund Name Void Amount CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 14.03 CMSD Petty Cash 15272 06/10/2016 Liquid Waste Fund FICA - Employee 11.45 Check Total: 271.43 Professional Pipe Services 15273 06/10/2016 Liquid Waste Fund Sewer Maint-Sewer Line Tele 48,829.31 Check Total: 48,829.31 Southern California Edison 15274 06/10/2016 Liquid Waste Fund Electric - Building 453.90 Southern California Edison 15274 06/10/2016 Solid Waste Fund Electric - Building 50.43 Check Total: 504.33 Securitas Security Service USA, Inc. 15275 06/10/2016 Solid Waste Fund Building Maintenance 21.60 Securitas Security Service USA, Inc. 15275 06/10/2016 Liquid Waste Fund Building Maintenance 194.40 Securitas Security Service USA, Inc. 15275 06/10/2016 Solid Waste Fund Building Maintenance 22.00 Securitas Security Service USA, Inc. 15275 06/10/2016 Liquid Waste Fund Building Maintenance 198.00 Securitas Security Service USA, Inc. 15275 06/10/2016 Liquid Waste Fund Building Maintenance 165.60 Securitas Security Service USA, Inc. 15275 06/10/2016 Solid Waste Fund Building Maintenance 18.40 Check Total: 620.00 Sparkletts 15276 06/10/2016 Liquid Waste Fund Sewer Maint-Office Supplies 17.87 Check Total: 17.87 Christopher Taylor 15277 06/10/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 425.00 Check Total: 425.00 Greg Teal 15278 06/10/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 U.S. Healthworks Medical Group, PC 15279 06/10/2016 Liquid Waste Fund Medical/Employment Services 35.00 Check Total: 35.00 VantagePoint Transfer Agents 15280 06/10/2016 Liquid Waste Fund Deferred Compensation - 457 2,165.42 Check Total: 2,165.42 VantagePoint Transfer Agents 15281 06/10/2016 Liquid Waste Fund Deferred Medical-RHS-Employee 913.78 Check Total: 913.78 Craig Wagner 15282 06/10/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 AndersonPenna Partners, Inc. 15288 06/24/2016 Liquid Waste Fund Plan Ck/Inspection-Outside 558.00 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 11 Check Number Check Date Account Name Vendor NameFund Name Void Amount Check Total: 558.00 Ayala Engineering, Inc. 15289 06/24/2016 Liquid Waste Fund Sewer Maint-Annual Sewer Maint 1,685.00 Check Total: 1,685.00 Bartel Associates, LLC 15290 06/24/2016 Liquid Waste Fund Professional Services Fin 558.00 Bartel Associates, LLC 15290 06/24/2016 Solid Waste Fund Professional Services 62.00 Check Total: 620.00 Thomas Brimer 15291 06/24/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 C3 Office Solutions LLC 15292 06/24/2016 Solid Waste Fund Equipment Maintenance 34.68 C3 Office Solutions LLC 15292 06/24/2016 Liquid Waste Fund Equipment Maintenance 312.07 C3 Office Solutions LLC 15292 06/24/2016 Liquid Waste Fund Equipment Maintenance 5.69 C3 Office Solutions LLC 15292 06/24/2016 Solid Waste Fund Equipment Maintenance 0.63 Check Total: 353.07 City of Costa Mesa 15293 06/24/2016 Liquid Waste Fund Charges For Services 101.05 City of Costa Mesa 15293 06/24/2016 Liquid Waste Fund Charges For Services 39.49 Check Total: 140.54 City of Newport Beach 15294 06/24/2016 Liquid Waste Fund Sewer Maint- Water Pumps 34.54 Check Total: 34.54 Orange County Assessor 15295 06/24/2016 Solid Waste Fund Prepaid Items 30.00 Orange County Assessor 15295 06/24/2016 Liquid Waste Fund Prepaid Items 270.00 Check Total: 300.00 CR&R Incorporated Environmental Services 15296 06/24/2016 Solid Waste Fund Trash Hauler 219,319.01 Check Total: 219,319.01 C&R Drains Inc. 15297 06/24/2016 Liquid Waste Fund Sewer Maint-Annual Sewer Maint 1,077.00 Check Total: 1,077.00 CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Recycling/Disposal 64,308.16 CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Recycling/Disposal 1,381.88 CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Organics Disposal 18,208.18 CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Recycling/Disposal 73,440.86 CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Recycling/Disposal 1,932.25 CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Organics Disposal 18,546.53 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 12 Check Number Check Date Account Name Vendor NameFund Name Void Amount CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Organics Disposal -7,251.70 CR Transfer, Inc. 15298 06/24/2016 Solid Waste Fund Organics Disposal -6,641.97 Check Total: 163,924.19 Orange County Dept. of Education 15299 06/24/2016 Solid Waste Fund Educational Programs 19,177.50 Check Total: 19,177.50 Environmental Rental Services LTD-LP 15300 06/24/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 200.00 Check Total: 200.00 FedEx 15301 06/24/2016 Liquid Waste Fund Postage 29.32 FedEx 15301 06/24/2016 Liquid Waste Fund Postage 28.11 Check Total: 57.43 Jim Ferryman 15302 06/24/2016 Liquid Waste Fund Board Development 9.72 Jim Ferryman 15302 06/24/2016 Solid Waste Fund Board Development 1.08 Check Total: 10.80 F.M. Thomas Air Condittioning, Inc. 15303 06/24/2016 Liquid Waste Fund Building Maintenance 137.70 F.M. Thomas Air Condittioning, Inc. 15303 06/24/2016 Solid Waste Fund Building Maintenance 15.30 Check Total: 153.00 Charles Frei 15304 06/24/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 Franchise Tax Board 15305 06/24/2016 Liquid Waste Fund Wage Garnishment 208.37 Check Total: 208.37 Southern California Gas Company 15306 06/24/2016 Liquid Waste Fund Gas - Building 38.05 Southern California Gas Company 15306 06/24/2016 Solid Waste Fund Gas - Building 4.23 Check Total: 42.28 David Graham 15307 06/24/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 99.50 Check Total: 99.50 Perry Haverin 15308 06/24/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 Patricia Hotz 15309 06/24/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 13 Check Number Check Date Account Name Vendor NameFund Name Void Amount HUB Auto Supply 15310 06/24/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 13.82 Check Total: 13.82 IPC Fuel Distribution 15311 06/24/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 3,934.44 Check Total: 3,934.44 Irvine Ranch Water District 15312 06/24/2016 Liquid Waste Fund Sewer Maint- Water Pumps 9.71 Irvine Ranch Water District 15312 06/24/2016 Liquid Waste Fund Sewer Maint- Water Pumps 11.33 Check Total: 21.04 Lakewood Alarm 15313 06/24/2016 Liquid Waste Fund Building Maintenance 265.95 Lakewood Alarm 15313 06/24/2016 Solid Waste Fund Building Maintenance 29.55 Check Total: 295.50 Lan Wan Enterprise Inc 15314 06/24/2016 Solid Waste Fund Capital Outlay 288.00 Lan Wan Enterprise Inc 15314 06/24/2016 Liquid Waste Fund Capital Outlay 2,592.00 Check Total: 2,880.00 Mesa Water District 15315 06/24/2016 Solid Waste Fund Water - Building 13.95 Mesa Water District 15315 06/24/2016 Liquid Waste Fund Water - Building 125.57 Mesa Water District 15315 06/24/2016 Liquid Waste Fund Sewer Maint- Water Pumps 22.50 Check Total: 162.02 Municipal Underground Services, Inc. 15316 06/24/2016 Liquid Waste Fund Sewer Maint-Annual Sewer Maint 1,800.00 Check Total: 1,800.00 Office Depot 15317 06/24/2016 Liquid Waste Fund Office Supplies 34.39 Office Depot 15317 06/24/2016 Solid Waste Fund Office Supplies 3.82 Office Depot 15317 06/24/2016 Liquid Waste Fund Office Supplies 8.34 Office Depot 15317 06/24/2016 Solid Waste Fund Office Supplies 0.93 Office Depot 15317 06/24/2016 Liquid Waste Fund Office Supplies 47.21 Office Depot 15317 06/24/2016 Solid Waste Fund Office Supplies 5.25 Office Depot 15317 06/24/2016 Liquid Waste Fund Office Supplies 80.64 Office Depot 15317 06/24/2016 Liquid Waste Fund Building Maintenance 9.67 Office Depot 15317 06/24/2016 Solid Waste Fund Office Supplies 8.96 Office Depot 15317 06/24/2016 Solid Waste Fund Building Maintenance 1.08 Check Total: 200.29 O.S.T.S., Inc. 15318 06/24/2016 Liquid Waste Fund Sewer Maint-Staff Development 300.00 Check Total: 300.00 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 14 Check Number Check Date Account Name Vendor NameFund Name Void Amount Pete's Road Service 15319 06/24/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 931.76 Check Total: 931.76 Plumbers Depot Inc. 15320 06/24/2016 Liquid Waste Fund Sewer Maint-Small Tools/Eq 2,462.40 Check Total: 2,462.40 Rogers, Anderson, Malody & Scott, LLP 15321 06/24/2016 Liquid Waste Fund Fiscal Services 1,975.35 Rogers, Anderson, Malody & Scott, LLP 15321 06/24/2016 Solid Waste Fund Fiscal Services 1,063.65 Check Total: 3,039.00 L. Joan Revak 15322 06/24/2016 Solid Waste Fund Benefits Admin Costs 165.00 L. Joan Revak 15322 06/24/2016 Liquid Waste Fund Benefits Admin Costs 1,485.00 Check Total: 1,650.00 Santa Ana Blue Print 15323 06/24/2016 Liquid Waste Fund Force Main Upgrades #200 23.26 Santa Ana Blue Print 15323 06/24/2016 Liquid Waste Fund Force Main Upgrades #200 20.66 Check Total: 43.92 Southern California Edison 15324 06/24/2016 Solid Waste Fund Electric - Building 35.27 Southern California Edison 15324 06/24/2016 Liquid Waste Fund Electric - Building 317.41 Southern California Edison 15324 06/24/2016 Liquid Waste Fund Sewer Maint-Electric Pumps 487.40 Southern California Edison 15324 06/24/2016 Liquid Waste Fund Sewer Maint-Elec Bldg 28.69 Check Total: 868.77 Michael Scheafer 15325 06/24/2016 Liquid Waste Fund Board Development 10.69 Michael Scheafer 15325 06/24/2016 Solid Waste Fund Board Development 1.19 Check Total: 11.88 Securitas Security Service USA, Inc. 15326 06/24/2016 Liquid Waste Fund Building Maintenance 165.60 Securitas Security Service USA, Inc. 15326 06/24/2016 Solid Waste Fund Building Maintenance 18.40 Securitas Security Service USA, Inc. 15326 06/24/2016 Solid Waste Fund Building Maintenance 22.00 Securitas Security Service USA, Inc. 15326 06/24/2016 Liquid Waste Fund Building Maintenance 198.00 Securitas Security Service USA, Inc. 15326 06/24/2016 Solid Waste Fund Building Maintenance 16.00 Securitas Security Service USA, Inc. 15326 06/24/2016 Liquid Waste Fund Building Maintenance 144.00 Check Total: 564.00 Los Angeles Times 15327 06/24/2016 Liquid Waste Fund Public Info/Ed/Community Prom 331.75 Check Total: 331.75 Underground Service Alert/SC 15328 06/24/2016 Liquid Waste Fund Contract Services 63.00 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 15 Check Number Check Date Account Name Vendor NameFund Name Void Amount Check Total: 63.00 VantagePoint Transfer Agents 15329 06/24/2016 Liquid Waste Fund Deferred Compensation - 457 1,945.94 VantagePoint Transfer Agents 15329 06/24/2016 Liquid Waste Fund Deferred Comp- 457 Loan Repaym 219.48 Check Total: 2,165.42 VantagePoint Transfer Agents 15330 06/24/2016 Liquid Waste Fund Deferred Medical-RHS-Employee 952.26 Check Total: 952.26 Eric Vu 15331 06/24/2016 Liquid Waste Fund Sewer Maint-Swr Lateral Prog 1,100.00 Check Total: 1,100.00 WorkWave GPS 15332 06/24/2016 Liquid Waste Fund Sewer Maint-Equipment Maint 99.95 WorkWave GPS 15332 06/24/2016 Solid Waste Fund Equipment Maintenance 19.99 Check Total: 119.94 Xylem Water Solutions USA, Inc. 15333 06/24/2016 Liquid Waste Fund Sewer Maint-Pump Stn Maint 279.30 Check Total: 279.30 Report Total: 1,012,933.29 AP-Checks for Approval (7/6/2016 - 3:27 PM)Page 16 Vendors Descriptions Amount ACE Dust Mask 5‐Pack (2) 12.94 CM Chamber of Commerce Student Awards Breakfast Registration ‐ Board of Directors (2) 70.00 CSDA Credit, CSDA Board Discount of Legislative Day Registration ‐ Board of Director (1) ‐25.00 Directnic CMSD Domain Annual Renewal Fee (3) 45.54 Dollar Rent A Car Transportation, CSDA Leadership Summit 6/11/16 & 6/14/16 ‐ GM 87.36 Express Med Povidone Iodine Prep Pad/ Antibiotic Ointment 37.33 Facebook Public Outreach ‐ Social Media 25.00 Firestone Public House Meal, CSDA Leg Day 5/16/16 ‐ Board of Directors (2)/GM/MAI 87.51 HMS Host Meal, CWEA Conf 4/29/16 ‐ Maint Supervisor 13.84 Home Depot RAINX/Buckets/Paint Thinner/Rollers/Paint 41.69 Home Depot Refund, First Aid Kit (5) ‐107.84 Home Depot Vented Hard Hat (1) 16.18 Home Depot First Aid Kit (5)/ Vented Hard Hat (6)/Dust Mask/Paint Supplies 306.10 Home Depot Return, Dust Mask ‐23.17 Home Depot Pump Station Parts 10.09 Home Depot Concrete Paint 1Gal (1) 34.54 Home Depot Duct Tape 2‐Pack (10) 107.78 Hub Auto Supply ATF Chrysler Fluid ( 2) 11.28 Hyatt Regency Lodging, CWEA Conf 4/26‐4/28/16 Maint Supervisor 605.07 Hyatt Regency Lodging, CWEA Conf 4/26‐4/28/16 Maint Worker III 605.07 Hyatt Regency Meal, CSDA Leg Day 5/17/16 ‐ Board of Directors (2)/GM/MAI 66.42 Hyatt Regency Lodging, CSDA Leg Day 5/16‐5/17/16 ‐ Board of Director 217.95 Hyatt Regency Meal, CSDA Leg Day 5/18/16 ‐ Board of Directors (2)/GM/MAI 60.00 Hyatt Regency Lodging, CSDA Leg Day 5/16‐5/18/16 ‐ Board of Director 439.90 Hyatt Regency Lodging, CSDA Leg Day 5/16‐5/18/16 ‐ GM 435.90 Hyatt Regency Lodging, CSDA Leg Day 5/16‐5/18/16 ‐ MAI 435.90 Hyatt Regency Disputed ‐ Charged wrong credit card 493.90 International Transaction Fee International Transaction Fee, CSDA Leadership Summit 6/11/16 & 6/14/16 ‐ GM 0.70 John Wayne Airport Parking Parking, CSDA Leg Day 5/16‐5/18/16 ‐ GM 42.00 Lands End Business Outfitters Return, CMSD Polo Shirt (1) ‐26.94 Lands End Business Outfitters CMSD Polo Shirt (1) 36.18 Live Wire Irvine PS, Circuit Breaker (1) 662.98 Lucca Meal, CSDA Leg Day 5/17/16 ‐ Board of Director (1)/ GM/MAI 76.56 NP Bay Area Limousine Transportation, CWEA Conf 4/29/16 ‐ Maint Supervisor 34.00 Office Depot USB 2 Pack (2) 38.86 Pandor Bakery Monthly Meeting Refreshments 5/24/16 ‐ GM & Board of Directors 56.53 Panera Bread Staff Monthly Meeting Refreshments 5/25/16 23.98 ProFlower Bereavement Flower for Employee 72.14 Smart & Final DY Paper Products 59.11 Southwest Airfare, CSDA Leadership Summit 6/11‐6/14/16‐ GM 177.96 Southwest Flight Change, CSDA Leg Day 5/16‐5/17/16 ‐ AP 114.00 Squaw Creek Lodging, CSDA Leadership Summit 6/11‐6/14/16 ‐ GM (Billed for 1 Night) 175.00 Super Shuttle Transportation, CSDA Leg Day 5/17/16 ‐ Board of Director (1) 12.98 TeleFlora Flower ‐ Employee's New Baby 87.92 Tequila Museo Mayahuel Meal, CSDA Leg Day 5/16/16 ‐ Board of Directors (2)/GM/MAI 66.31 Unisafe Inc. TopGrip Ultimate & Pitbull Black Nitrile Gloves (20) 175.70 Vista Paint Zero Rust Aerosol 1Gal (2) Protec Alkyd Emulsion (2) 316.94 CMSD Check No. 15240 6,314.19 June 2016 Bank of America Costa Mesa Sanitary District Costa Mesa Sanitary District ... an Independent Special District Payroll Transparency Disclosure for June 2016 Item Number:7. Recommendation/Notes: Recommendation: That the Board of Directors approve and file. ATTACHMENTS: Description Type Payroll Transparency Disclosure for June 2016 Cover Memo Costa Mesa Sanitary District ... an Independent Special District Directors’ Compensation and Reimbursement of Expenses Item Number:8. Recommendation/Notes: Recommendation: That the Board of Directors approve the following: a. Directors’ compensation for the month of June 2016; and b. Directors’ reimbursement of expenses for the month of June 2016. ATTACHMENTS: Description Type a. Directors’ compensation for the month of June 2016 Cover Memo b. Directors' reimbursement of expenses for June 2016 Cover Memo Costa Mesa Sanitary District ... an Independent Special District Sewer Lateral Assistance Program (SLAP) Update Item Number:9. 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: July 28, 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 30, 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 240 Applications Processed for Payment* 198 196,284$ Applications In Process 42 46,200 Available SLAP Spots Based on Funding 0 - Total Projected Cost 242,484$ * 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 Resolution No. 2016-890 Ordering that Publication of Ordinance No. 115 Confirming Annual Charges for Solid Waste and Wastewater for 2016-17 has Occurred Item Number:10. Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2016-890. ATTACHMENTS: Description Type Resolution No. 2016-890 Ordering that Publication of Ordinance No. 115 Confirming Annual Charges for Solid Waste and Wastewater for 2016-17 has Occurred Cover Memo RESOLUTION NO. 2016-890 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 115 CONFIRMING ANNUAL CHARGES FOR SOLID WASTE AND WASTEWATER FOR 2016-17 HAS OCCURRED WHEREAS, the Board of Directors on June 23, 2016 adopted Ordinance No. 115 confirming annual charges for solid waste and wastewater for 2016-17; WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on July 23, 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. 115 confirming annual charges for solid waste and wastewater for 2016-17 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. 2016-890 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the day of 2016 by the following votes: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2016. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District Product(s): Daily Pilot, dailypilot.com, CApublicnotice.com_DP AdSize(s):1 Column, Run Date(s):Saturday, July 23, 2016 Color Spec.B/W Preview Order ID:4337920 Page 1 of 4 7/21/2016 8:36:25 AMPrinted: GROSS PRICE * :$239.97 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Order ID:4337920 Page 2 of 4 7/21/2016 8:36:25 AMPrinted: GROSS PRICE * :$239.97 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Order ID:4337920 Page 3 of 4 7/21/2016 8:36:25 AMPrinted: GROSS PRICE * :$239.97 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Order ID:4337920 Page 4 of 4 7/21/2016 8:36:25 AMPrinted: GROSS PRICE * :$239.97 * Agency Commission not included Legal-DP-NoticesPACKAGE NAME: Costa Mesa Sanitary District ... an Independent Special District Preliminary FY 2015-16 Year-End Budget (4th Quarter Budget Report) Item Number:11. Recommendation/Notes: Recommendation: That the Board of Directors receive and files the report. ATTACHMENTS: Description Type Preliminary FY 2015-16 Year-End Budget (4th Quarter Budget Report)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 Via: Wendy H. Davis, Finance Manager Date: July 28, 2016 Subject: Preliminary FY 2015-16 Budget Review- Fourth Quarter Summary This report serves as a summary of the District’s spending through June 30, 2016 as well as staff’s best estimate of projected balances for the year ended June 30, 2016. Staff Recommendation That the Board of Directors receive and file this report. Analysis Based on the spending trends through June 30, 2016, staff is projecting surplus in both the Solid Waste and Wastewater Funds. As of June 30, 2016, a total of 86.1% of the Solid Waste operating budget for the 2015- 2016 fiscal year has been expended. At this time, staff anticipates a budgetary savings of $326,620 for the fiscal year, mainly due to savings in the Organics Disposal and Special Programs budgets. A total of 76.4% of the Wastewater Fund’s operating budget has been expended as of June 30, 2016. Staff anticipates a budgetary savings in Personnel costs of $20,000 due to the reorganization and $216,100 in Maintenance and Operations as described in the attached analysis. The Wastewater Fund projected year-end budget surplus is $236,100. Please see the attached reports for a more detailed analysis. Board of Directors July 28, 2016 Page 2 of 2 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 See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 28, 2016 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff for additional information. Attachments A: FY 2015-16 Fourth Quarter Budget Analysis B: Expenditure Analysis through 06/30/2016 COSTA MESA SANITARY DISTRICT Fourth Quarter Budget Analysis Fiscal Year 2015-16 EXECUTIVE SUMMARY Attached is the fourth quarter budget analysis of the Solid and Wastewater Fund’s operating budgets for fiscal year (FY) 2015-16. This analysis uses the “Amended Budget”, which consists of the adopted budget plus any prior year carryover appropriations, as well as budget adjustments approved through June 30, 2016. The projections in this analysis are based on “Run-Rate” calculations unitizing historical trends for some accounts, while others are based on known or anticipated spending by staff. The Costa Mesa Sanitary District (District) Solid Waste and Wastewater Funds are both Enterprise Funds. These funds are operated as independent business ventures sharing one Board of Directors. Some expenses of the District are charged entirely to a specific fund, while other expenses may be allocated to both funds based on a percentage. For example, the costs associated with the District’s Board of Directors will be split between the funds equally. However, the cost of the trash pickup will be charged only to the Solid Waste Fund. The following sections are intended to provide a summary of the budget status: SOLID WASTE FUND The annual operating budget for the Solid Waste fund is $5,901,375. The total year-to-date expenses are $5,079,826 and staff estimated the total year-end balance will be $5,574,755 resulting in a projected surplus of $326,620. This projected surplus results primarily from unexpended funds in the Maintenance and Operations, and Special Programs. The following sections are intended to provide a summary of the more significant budget to actual changes at year-end: PERSONNEL The District currently has two vacant positions, the Senior Management Analyst and a part-time Accounting Clerk. These two positions provide services to both funds. The District is not anticipated in filling the two vacant positions. Staff projected a small savings of $6,000 in salaries and benefits at June 30, 2016 due to the reorganization in January as follows; the Management Analyst I accepted the position as Management Analyst II; the Administrative Assistant accepted the position as Management Analyst I; the part-time Accounting Clerk accepted the position as Administrative Assistant and the Accountant accepted the position as Senior Accountant. M & O The Maintenance and Operations expenditures are projected to have a substantial savings of $241,620 at June 30, 2016. The following is a summary of the net effect of savings and unanticipated costs: • Contract Services – The District did not provide Organics/Composting Workshops since composting bins were not available resulting in a savings of $5,500. • Trash Hauler – This account is projected to be under budget by $33,000 as a result of the $.25 per occupant savings the District negotiated to implement the new Organics Program. • Recycling/Disposal – This account is projected to be over budget by $35,500 as a result of an increase in tonnage of 690 tons. The cost of the increased tonnage is offset by the $.25 per ton savings the District negotiated to implement the new Organics Program. • Organics Disposal – The most significant change in this year’s budget from the prior year budget is the implementation of the Organics Recycling Program with a budget of $600,000. COSTA MESA SANITARY DISTRICT Fourth Quarter Budget Analysis Fiscal Year 2015-16 The projected expense for this program at year-end is $400,000. The District has not incurred the higher costs for the disposal of Organic materials due to the CR&R Anaerobic Digestion Facility not coming online. The schedule below shows the Organics Tonnage and Cost since the start of the program. Staff estimated that the program will be under budget by $200,000. • Container Collection Cost - This account is estimated to be under budget by $2,000 since fewer residents are renting additional containers and opting to use the organics containers. • Public Info/Education/Community Promotion account is under the $53,400 budget by $22,400. The savings resulted from fewer requests for sponsorships, less general outreach in the form of Robocalls, advertisements and water bill inserts, in lieu of targeted organics outreach which was paid for out of the Organics Public Information/Education Special Program. Staff postponed purchasing the budgeted composting bins due to lack of storage space and the availability of grant funding the subsequent fiscal year. • Professional Development/Training account has a savings of $3,790 since Staff did not attend conferences such as: Springbrook Software Annual Conference, Springbrook Training/Seminars, California Society of Municipal Finance Officers Chapter Meetings, and Municipal Management of North America. With Accela acquiring Springbrook the annual user’s conference has been rescheduled to next fiscal year in August and staff will be attending. SPECIAL PROGRAMS The Household Hazardous Waste, Anti-Scavenging, Educational Tours, Organics Public Information /Education and Battery Recycling programs are substantially under budget, resulting in a budget surplus of $79,000. The Household Hazardous Waste was budgeted for $40,000; however, only $6,000 were spent. The Battery Recycling program, with a budget of $20,000, has spent only $3,500 on school rewards and $3,439 for battery pickup fees which will be reimbursed by a grant. CAPITAL OUTLAY COSTA MESA SANITARY DISTRICT Fourth Quarter Budget Analysis Fiscal Year 2015-16 The capital outlay budget of $4,050 is was expended on the new telephone system, computer servers and four replacement workstations. COSTA MESA SANITARY DISTRICT Fourth Quarter Budget Analysis Fiscal Year 2015-16 WASTEWATER FUND The annual operating budget for the Wastewater Fund is $9,818,561, excluding Capital Improvement Projects. The total year-to-date expenses are $7,497,969. Staff projected the total year-end balance to be $9,582,461, this amount includes the costs incurred to purchase the new headquarters building at 290 Paularino Avenue, for a projected surplus of $236,100. The following sections are intended to provide a summary of the more significant budget to actual changes at year-end: PERSONNEL The District currently has two vacant positions, the Senior Management Analyst and a part-time Accounting Clerk. These two positions provide services to both funds. The District is not anticipated in filling the two vacant positions. Staff projected a small savings of $20,000 in salaries and benefits at June 30, 2016 due to the reorganization in January as follows; the Management Analyst I accepted the position as Management Analyst II; the Administrative Assistant accepted the position as Management Analyst I; the part-time Accounting Clerk accepted the position as Administrative Assistant and the Accountant accepted the position as Senior Accountant. M & O The Maintenance and Operations expenditures are projected to have a savings of $216,100 at June 30, 2016. The following is a summary of the net effect of savings and unanticipated costs: • Legal Services – This account is over budget of $10,500 due to the ongoing litigation regarding the Irvine and Indus spills (CMSD Vs. RWQCB). • Engineering/Architectural Services and Plan Check/Inspections – These two accounts are projected to be under budget by $24,500. These types of overage or shortages are result of actual building activities occurring within the District verses the multi-year trend based budgeting used to determine the budget. • Sewer Line Maintenance- Since adding a second cleaning crew helps reduce external contracts resulting in a savings of $22,700. • Equipment Maintenance- The Vaccon truck is finally in good working condition after several years of increased services and repairs, which resulted in a savings of $30,000. • Miscellaneous Sewer Work- Fewer sanitary sewer overflows and emergency incidents are resulting in a savings of $73,800. • Public Info/Education/Community Promotion account is projected to be under budget by $6,000. The savings resulted from fewer requests for sponsorships, less general outreach in the form of Robocalls, advertisements and water bill inserts, in lieu of targeted organics outreach which was paid for out of the Solid Waste Fund. • Maintenance Materials and Supplies - This account is under budget by $12,000. Additional funds were budgeted to purchase supplies for the new sewer truck and to outfit the new sewer crew staff. COSTA MESA SANITARY DISTRICT Fourth Quarter Budget Analysis Fiscal Year 2015-16 • Computer Licenses & Maintenance- This account is over budget by $12,000 due to online security, server upgrades, backup cloud service and mobility software. The new Information Technology support company, Lan Wan, has. These expenses are offset by the budget surplus in other accounts such as Maintenance Material/Supplies. • Professional Development/Training account has a savings of $27,000 since Staff did not attend conferences such as: Springbrook Software Annual Conference, Springbrook Training/Seminars, California Society of Municipal Finance Officers Chapter Meetings, and Municipal Management of North America. With Accela acquiring Springbrook the annual user’s conference has been rescheduled to next fiscal year in August and staff will be attending. • Electric Pump Maintenance – The replacement of older equipment with energy efficient parts at pump stations has produced a substantial savings of $24,000 in this account. CAPITAL OUTLAY The Capital Outlay budget of $5,727,431 which includes carryovers from the 14-15 fiscal year will not be fully expended by June 30, 2016 Items not purchased or not completed, such as the new headquarters building, as of June 30, 2016 are shown as fully expended at June 30,2016 since their budgets will be carried over into the subsequent fiscal year. Below is a chart of the new appropriations from the 2015-16 fiscal year: Capital Outlay Budget New Telephone System 6,300$ (2) Servers, Network Switch, Backup Battery, Monitor 10,080 Workstations & Dual Monitors w/ Stands (4)6,300 Spare Pumps for pump stations 96,000 Thermal Gun 10,000 Portable Generator (150kva) for Irvine PS 100,000 VacAll Combination Sewer Cleaning Truck 330,000 290 Paularino Headquarters 5,043,000 Springbrook Server 12,000 Total Capital Outlay 5,613,680$ COSTA MESA SANITARY DISTRICT Fourth Quarter Budget Analysis Fiscal Year 2015-16 CAPITAL IMPROVEMENT PROJECTS The status of the capital improvement projects as of June 30, 2016 is shown below. All projects are expected to be fully expended as of June 30, 2016 or carried forward into the next budget year. Adopted Approved Budget Amended Total Total Available Budget FY 14-15 Adjustment Budget Expenses Encumbrance Balance FY15-16 Carryovers as of 6/30/16 FY15-16 as of 6/30/16 as of 6/30/16 as of 6/30/16 200601 Westside Pump Stn Abandonment #101 1,184,000$ 2,579,388$ (3,760,000)$ 3,388$ 677$ 2,500$ 211$ 201294 Sewer Manhole Rehab #194 - 296,825 (24,000) 272,825 272,810 - 15 201296 Pump Stn Emergency Equip #196 - 597,514 - 597,514 470,133 20,027 107,354 201300 Force Main Upgrades #200 - 821,800 - 821,800 12,893 7,500 801,407 201302 Elden Pump Stn Valve/Repipe #202 - 468,433 (20,000) 448,433 8,144 - 440,289 201303 Generator at District Yard #203 - 30,696 (23,000) 7,696 6,906 - 790 201309 City Manhole Adjustment Program #309 - 166,099 - 166,099 29,942 - 136,158 201310 Indus Relining #310 353,000 - - 353,000 280,792 - 72,208 201311 Manhole Cover Repairs Ph 2 #311 150,000 - - 150,000 82,829 5,005 62,166 201312 Aviemore PS Upgrade #312 100,000 - 10,000 110,000 89,581 - 20,419 201314 Grade 5 Pipe Rehab #314 - - 557,000 557,000 26,803 45,290 484,908 201315 Gisler PS Generator #315 - - 157,000 157,000 1,960 155,040 1,787,000$ 4,960,755$ (3,103,000)$ 3,644,755$ 1,283,470$ 80,322$ 2,280,964$ Original WorkingRun-Rate -Full Year- Finance FinanceBUDGET BUDGET YTD YTD YTD 14-15 to Percent Full Year Projection Finance Projected Proj. %as of July 1 '15-'16 6/30/2016 6/30/2015 YTD 15-16 Change '14-'15 Full Year Projections Variance1 RemainingEXPENDITURESPersonnelSALARIES FULL-TIME 340,000 340,000 347,590 333,218 14,372 4% 333,218 347,590 348,000 (8,000) -2%SALARIES PART-TIME 40,000 40,000 31,571 23,514 8,057 34% 23,514 31,571 33,000 7,000 18%SALARIES BOARD 21,200 21,200 17,474 15,470 2,004 13% 15,470 17,474 19,200 2,000 9%OVERTIME 500 500 511 208 303 146% 208 511 550 (50) -10%Benefits 120,800 120,800 103,961 69,287 34,673 50% 72,297 103,961 115,750 5,050 4%Sub-Total Personnel522,500 522,500 501,107 441,698 59,409 13% 444,707 501,107 516,500 6,000 1%M & OPROFESSIONAL SERVICES39,250 39,745 11,243 20,095 (8,853) -44% 20,095 11,243 39,745 - 0%DISTRICT MANAGER00 0 000% 0 0 0- 0%LEGAL SERVICES27,000 27,000 18,796 18,107 689 4% 18,107 18,796 18,800 8,200 30%FISCAL SERVICES12,200 12,200 10,570 9,737 833 9% 9,737 10,570 12,200 - 0%MEDICAL/EMPLOY SERVICES400 400 121 374 (253) -68% 374 121 121 279 70%CONTRACT SERVICES6,550 6,550 217 13,237 (13,020) -98% 13,237 217 1,050 5,500 84%COUNTY COLLECTION FEE15,500 15,500 827 14,366 (13,540) -94% 14,366 827 15,500 - 0%TRASH HAULER (CR&R)2,615,000 2,615,000 2,362,237 2,322,021 40,217 2% 2,322,021 2,362,237 2,582,000 33,000 1%RECYCLING/DISPOSAL (CR&R)1,750,000 1,750,000 1,627,298 2,170,978 (543,680) -25% 2,170,978 1,627,298 1,785,500 (35,500) -2%ORGANICS DISPOSAL (CR&R)600,000 600,000 353,799 0 353,799 0% 0 353,799 400,000 200,000 33%CONTAINER COLLECTION COST16,000 16,000 10,219 14,799 (4,580) -31% 14,799 10,219 14,000 2,000 13%ELECTIONS0 0 0 16,264 (16,264) -100% 16,264 0 0 - 0%MAINTENANCE6,900 6,900 4,814 3,979 835 21% 3,979 4,814 5,600 1,300 19%OFFICE SUPPLIES600 600 659 612 47 8% 612 659 650 (50) -8%MISC COPY150 150 4 3 1 47% 3 4 24 126 84%POSTAGE1,000 750 158 289 (131) -45% 289 158 750 - 0%PUBLIC INFOR/ED/COM PROM53,400 53,400 30,969 30,408 561 2% 30,408 30,969 31,000 22,400 42%SMALL TOOLS/EQUIP690 940 542 1,024 (482) -47% 1,024 542 640 300 32%COMPUTER LICENSES & MAINT5,390 5,390 5,680 8,939 (3,259) -36% 8,939 5,680 6,000 (610) -11%PROF DEVELOPMENT/TRAINING22,100 22,100 17,266 20,699 (3,433) -17% 20,699 17,266 18,310 3,790 17%LIABILITY INSURANCE6,800 6,800 5,781 6,420 (639) -10% 6,420 5,781 5,800 1,000 15%TELEPHONE1,300 1,300 1,415 1,144 271 24% 1,144 1,415 1,415 (115) -9%UTILITIES - BLDG1,050 1,050 921 955 (34) -4% 955 921 1,050 - 0%ASSET REPLACEMENT26,000 26,000 26,000 30,000 (4,000) -13% 30,000 26,000 26,000 - 0%CONTINGENCY00 0 000% 0 0 0- 0%TRANSFER OUT00 0 000% 0 0 0- 0%Sub-Total M & O5,207,280 5,207,775 4,489,535 4,704,449 (214,914) -5% 4,704,449 4,489,535 4,966,155 241,620 5%Capital OutlayEQUIPMENT2,520 4,050 4,016 3,625391 11% 3,6254,016 4,050- 0%Sub-Total Capital Outlay2,520 4,050 4,016 3,625 391 11% 3,625 4,016 4,050- 0%Special ProgramsSHARPS PROGRAM10,200 10,200 9,060 10,173 (1,113) -11% 10,173 9,060 10,200 - 0%HHW40,000 40,000 5,312 5,096 216 4% 5,096 5,312 6,000 34,000 85%TELEPHONE BK RECYCLING00 0 000% 0 0 0- 0%ANTI-SCAVENGING5,000 5,000 0 940 (940) -100% 940 0 0 5,000 100%USED TIRE ROUNDUP00 0 000% 0 0 0- 0%EDUCATIONAL TOURS50,500 50,500 34,033 33,642 391 1% 33,642 34,033 34,500 16,000 32%PHARMACEUTICAL12,000 12,000 12,610 13,028 (418) -3% 13,028 12,610 12,700 (700) -6%COMPOST GRANT00 0 000% 0 0 0- 0%BATTERY RECYCLING20,000 20,000 6,939 7,417 (478) -6% 7,417 6,939 7,000 13,000 65%ORGANICS PUBLIC INFO/ED10,000 29,350 17,214 46,087 (28,873) -63% 46,087 17,214 17,650 11,700 40%Sub-Total Special Programs147,700 167,050 85,168 116,382 (31,214) -27% 116,382 85,168 88,050 79,000 47%TOTAL EXPENDITURES 5,880,000$ 5,901,375$ 5,079,826$ 5,266,153$ (186,327)$ -4%5,269,163$ 5,079,826$ 5,574,755$ 326,620$ 6%Notes% change from last year ==>> -4% 6%1Finance Projections reflect the most recent quarterly update 07/20/16 14:48Solid Waste FundExpenditure AnalysisExpenditures ChangeThrough 6/30/2016 Through 6/30/2016Original WorkingRun-Rate-Full Year-Finance FinanceBUDGET BUDGET YTD YTD YTD 14-15 to Percent Full Year Projection Finance Projected Proj. %as of July 1 '15-'16 6/30/2016 7/1/2015 YTD 15-16 Change '14-'15 Full Year ProjectionsVariance1RemainingEXPENDITURESPersonnelSALARIES FULL-TIME 895,000 895,000 858,738 722,116 136,622 19% 722,116 858,738 895,000 - 0%SALARIES PART-TIME 30,000 30,000 21,421 6,367 15,054 236% 6,367 21,421 25,000 5,000 17%SALARIES BOARD 85,000 85,000 69,896 56,576 13,320 24% 56,576 69,896 77,000 8,000 9%OVERTIME 33,500 33,500 23,904 28,831 (4,927) -17% 28,831 23,904 25,500 8,000 24%Benefits 370,500 370,500 345,337 264,591 80,746 31% 150,058 345,337 371,500 (1,000) 0%Sub-Total Personnel1,414,000 1,414,000 1,319,296 1,078,482 240,814 22% 963,948 1,319,296 1,394,000 20,000 1%M & OPROFESSIONAL SERVICES174,250 189,289 80,875 194,386 (113,511) -58% 194,386 80,875 189,289 - 0%DISTRICT MANAGER00 0000%000- 0%LEGAL SERVICES108,000 108,000 118,445 118,709 (264) 0% 118,709 118,445 118,500 (10,500) -10%ENGINEERING/ARCHIT SERV64,000 64,000 58,493 59,155 (662) -1% 59,155 58,493 59,000 5,000 8%PLAN CHECK/INSPECTIONS132,000 142,000 121,454 143,479 (22,025) -15% 143,479 121,454 122,500 19,500 14%FISCAL SERVICES22,800 22,800 19,629 18,470 1,159 6% 18,470 19,629 22,800 - 0%MEDICAL/EMPLOY SERVICES3,600 3,600 2,789 2,979 (191) -6% 2,979 2,789 3,000 600 17%CONTRACT SERVICES39,950 39,950 23,197 13,288 9,910 75% 13,288 23,197 39,950 - 0%COUNTY COLLECTION FEE15,500 15,500 827 1,574 (747) -47% 1,574 827 15,500 - 0%PUMP STN MAINT CONTRACT30,000 38,500 33,110 74,232 (41,122) -55% 74,232 33,110 38,500 - 0%SEWER LINE MAINTENANCE25,000 25,000 2,300 198,492 (196,192) -99% 198,492 2,300 2,300 22,700 91%ELECTIONS0 0 0 30,204 (30,204) -100% 30,204 0 0 - 0%BLDG MAINTENANCE45,250 45,250 39,670 34,841 4,829 14% 34,841 39,670 45,250 - 0%EQUIP MAINTENANCE93,800 93,800 59,754 57,554 2,200 4% 57,554 59,754 63,800 30,000 32%GIS MAINTENANCE45,000 45,000 37,699 23,953 13,746 57% 23,953 37,699 45,000 - 0%TELEVISING SEWER LINES70,000 556,000 218,688 12,145 206,543 1701% 12,145 218,688 556,000 - 0%MISC SEWER WORK150,000 133,800 56,370 161,711 (105,341) -65% 161,711 56,370 60,000 73,800 55%FOG PROGRAM108,000 108,000 95,049 93,669 1,380 1% 93,669 95,049 108,000 - 0%RESIDENT FOG PROGRAM00 0000%000- 0%SEWER LATERAL PROGRAM200,000 254,200 199,584 201,475 (1,890) -1% 201,475 199,584 254,200 - 0%CCTV SWR LATERAL PROGRAM20,000 20,000 0 0 0 0% 0 0 20,000 - 0%OFFICE SUPPLIES6,400 6,400 5,845 5,183 661 13% 5,183 5,845 6,400 - 0%MISC COPY1,350 1,350 34 39 (5) -13% 39 34 50 1,300 96%POSTAGE9,000 6,850 2,277 3,774 (1,497) -40% 3,774 2,277 2,550 4,300 63%COMMUNITY OUTREACH33,400 42,900 36,584 28,249 8,335 30% 28,249 36,584 36,900 6,000 14%SMALL TOOLS/EQUIP24,260 24,260 18,556 10,310 8,245 80% 10,310 18,556 19,260 5,000 21%MAINT MATERIAL/SUPPLIES20,000 27,071 14,289 19,676 (5,386) -27% 19,676 14,289 15,071 12,000 44%EOC EQPT & SUPPLIES1,350 3,500 3,311 3,596 (285) -8% 3,596 3,311 3,500 - 0%COMPUTER LICENSES & MAINT72,610 72,61079,550 60,570 18,980 31% 60,570 79,550 84,610 (12,000) -17%PROF DEVELOPMENT/TRAINING112,770 116,770 87,174 85,393 1,781 2% 84,615 87,174 89,770 27,000 23%LIABILITY INSURANCE76,200 76,200 69,170 69,577 (406) -1% 69,577 69,170 69,200 7,000 9%TELEPHONE21,200 21,200 23,061 18,544 4,517 24% 18,544 23,061 23,100 (1,900) -9%UTILITIES15,350 15,350 11,570 11,501 68 1% 11,501 11,570 13,050 2,300 15%WATER PUMP MAINTENANCE2,000 2,000 1,667 1,642 25 2% 1,642 1,667 2,000 - 0%ELECTRIC PUMP MAINTENANCE75,000 75,000 50,367 67,766 (17,399) -26% 67,766 50,367 51,000 24,000 32%ASSET REPLACEMENT234,000 234,000 234,000 150,750 83,250 55% 150,750 234,000 234,000 - 0%CONTINGENCY128,280 46,980 0 0 0 0% 0 0 46,980 - 0%Sub-Total M & O2,180,320 2,677,130 1,805,388 1,976,886 (171,498) -9% 1,976,108 1,805,388 2,461,030 216,100 8%Capital OutlayEQUIPMENT 22,680 5,149,680 3,853,142 32,630 3,820,512 11709% 32,630 3,853,142 5,149,680 - 0%EQUIPMENT206,000 577,751 520,143 638,970 (118,827) -19% 638,970 520,143 577,751 (0) 0%Sub-Total Capital Outlay228,680 5,727,431 4,373,285 671,600 3,701,685551%671,600 4,373,285 5,727,431 (0)0%TOTAL EXPENDITURES 3,823,000$ 9,818,561$ 7,497,969$ 3,726,968$ 3,771,001$ 101%3,611,657$ 7,497,969$ 9,582,461$ 236,100$ 2%Notes% change from last year ==>> 108% 165%1Finance Projections reflect the most recent quarterly update 07/20/16 14:48Wastewater FundExpenditure AnalysisExpenditures Change Costa Mesa Sanitary District ... an Independent Special District CMSD Contribution Program Application – CMHS Mustang Football Stadium Banners Item Number:12. Recommendation/Notes: Recommendation: That the Board of Directors accepts the application from the CMHS Mustang Football Program and approve a monetary contribution of $1000 for two stadium banners. ATTACHMENTS: Description Type CMSD Contribution Program Application – CMHS Mustang Football Stadium Banners 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: July 28, 2016 Subject: CMSD Contribution Program Application – CMHS Mustang Football Stadium Banner Summary On July 19, 2016, the District received a Contribution Program Eligibility Application from the Costa Mesa High School (CMHS) Mustang Football Program. The program is seeking a monetary contribution from the District to create and hang two banners promoting the Organics Recycling Program inside and outside its newly built football stadium for the 2016-2017 school year. Staff Recommendation That the Board of Directors accepts the application from the CMHS Mustang Football Program and approve a monetary contribution of $1000 for two stadium banners. Analysis The new CMHS Football Stadium is anticipated to be a widely used facility for high school athletics. The stadium’s opening is likely to draw significant attention within the community, and staff believes that displaying two banners will be beneficial to promoting the District’s Organics Recycling Program and increasing visibility within the community. Additionally, the District will receive a promotional listing on CMHS’s website and social media pages. All of the proceeds for banner contributions go toward the Mustang football team’s Summer Camp fees. Board of Directors July 28, 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 Not applicable at this time. 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 are sufficient funds budgeted in the FY 2016-17 Organics Recycling Public Outreach account for this expense. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 28, 2016 Board of Directors regular meeting at District headquarters and on District’s website. Alternative Actions 1. Do not approve the $1000 contribution. 2. Approve a contribution of $500 for one banner to be displayed inside the stadium during the 2016-2017 school year. 3. Approve a contribution of $250 for one banner to be displayed inside the stadium during the football season only. Attachments A: Contribution Program Eligibility Application – Costa Mesa High School Mustangs Football Program B: CMHS Mustang Football Banner Details & Pricing Reviewed by: Wendy Hooper Davis Finance Manager Costa Mesa Sanitary District ... an Independent Special District Unfunded Other Post-Employment Benefits (OPEB) Item Number:13. Recommendation/Notes: Recommendation: That the Board of Directors approve a $125,000 appropriation from Net Position towards paying down the District’s California Employers’ Retiree Benefit Trust Fund (CERBT) obligation as of June 30, 2016. ATTACHMENTS: Description Type Unfunded Other Post-Employment Benefits (OPEB)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: July 28, 2016 Subject: Unfunded Other Post-Employment Benefits (OPEB) Summary At the July 14, 2015 study session, the Board of Directors discussed paying down the District’s unfunded pension liabilities. Based on this discussion, staff recommended that the Board annually review making a contribution toward paying down the District’s unfunded pension obligations. Staff is recommending the Board of Directors approve the payment of $125,000 to California Employers’ Retiree Benefit Trust Fund (CERBT) obligation as of June 30, 2016. Staff Recommendation That the Board of Directors approve a $125,000 appropriation from Net Position towards paying down the District’s California Employers’ Retiree Benefit Trust Fund (CERBT) obligation as of June 30, 2016. Analysis At the July 14, 2015 study session, the Board of Directors discussed with staff paying down the District’s unfunded pension liabilities by making a contribution towards either: 1. The California Public Employees Retirement (CalPERS) pension plan or 2. The Other Post-Employment Benefits (OPEB) medical benefits plan with California Employers’ Retiree Benefit Trust Fund (CERBT). Based on this discussion, staff recommended that the Board annually review making a contribution toward paying down the District’s unfunded pension obligations. This year staff recommending that the District make a contribution toward paying down the (CERBT) obligation in the amount of $125,000 as of June 30, 2016. Staff is requesting the Board of Directors approve the appropriation from Net Position. Board of Directors July 28, 2016 Page 2 of 2 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 Appropriating $125,000 in the fiscal year 2015-16 from Net Position towards paying down the District’s California Employers’ Retiree Benefit Trust Fund (CERBT) obligation as of June 30, 2016 will be as follows: Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 28, 2016 Board of Directors study session at District Headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff Account Account Number Increase Decrease PERS Employer 10-200000-4115 25,000$ Net Position 10-000000-2990 25,000$ PERS Employer 20-200000-4115 100,000$ Net Position 20-000000-2990 100,000$ Costa Mesa Sanitary District ... an Independent Special District FY 2015-20 Strategic Plan Update (4th Quarter) Item Number:14. Recommendation/Notes: Recommendation: That the Board of Directors accepts and files the report. ATTACHMENTS: Description Type FY 2015-20 Strategic Plan Update (4th Quarter)Cover Memo COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 1.0 SEWER INFRASTRUCTURE Objective Strategic Goals Accomplishments Completion Timeline To collect and transport wastewater to meet the needs of existing and future customers 1.1 Manhole Cover Maintenance Program On April 28, 2016, the Board of Directors accepted the improvements as compete and a Notice of Completion has been filed at the County of Orange. On-going 1.2 Inflow Reduction Program Nothing new to report this quarter. During the 3rd quarter CMSD did not have significant rainfall to effectively evaluate the Inflow Reduction Program. On-going 1.3 Reduce Hotspot Locations to less than 30. The District’s Hot Spot Committee met on July 5, 2016. The Committee determined three HS locations can be removed from the list. HS 66 (Newport at 20th Street), HS 95 (Randolph at Baker) because cleaning once every 9 months found minimal grease and debris. HS 38 (Indus) was removed because of the recent completion of lining the pipeline. This goal is now complete because there are 29 hotspot locations. On-going 1.4 System wide Sewer Replacement & Repair Program #196-C Generator at 23rd Street Pump Station – This project is complete at a total cost of $207,825. #200-B Harbor Force Main Rehabilitation - This is one of the District’s oldest force mains at 60 years. The District is planning to use no dig technology called “horizontal directional drilling” (HDD) because of the traffic flow on Harbor Blvd and Wilson Street. Contract has been awarded and the contractor is waiting for approval of traffic control plan from the City. #200-C South Coast Plaza Force Main Rehabilitation – This force main is 50 years old. Due to a number of underground conflicting utilities and the Plaza parking structure. Final designs are currently underway. #202 Elden Pump Station Piping and Valve Replacement – This project will replace the 40-year-old piping near the station as well as replacing multiple valves that include 18” and 12” valves. Contract has been awarded and valves, piping, couplings and other parts have been ordered. 310 Indus Sewer and Manhole Rehabilitation – This project lined approximately 1,200 feet of pipeline that is currently located in private backyard easements. This project is complete at a total cost of $278,255 #312 Aviemore Pump Station Upgrades – New cabinet enclosure will be installed in July. #314 Grade 5 Pipe Rehabilitation – As the entire wastewater system is being televised and videoed, staff is immediately repairing sections that are deemed Grade 5 (eminent failure). By the end of the fourth quarter CMSD has repaired 60 sections and removed 9 protruding lateral trims at a cost of $70,000. CMSD is currently seeking bids to repair an additional 69 sections and remove 9 protruding liners. #315 Relocation of HQ Generator to Gisler Pump Station – Preliminary designs are underway to relocate the generator at HQ to Gisler Pump Station. The generator will be located Mesa Verde Golf Course easement and will need their approval. On-going COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 1.0 SEWER INFRASTRUCTURE (Continued) Objective Strategic Goals Accomplishments Completion Timeline #316 Adams Pump Station Electrical Improvements – This project will allow CMSD to connect an emergency generator for Adams Pump Station on Calvert Avenue. An easement and temporary construction easement agreements have been prepared. Designs are currently underway. The budge for this project is $116,000. To collect and transport wastewater to meet the needs of existing and future customers 1.5 Sewer Line Maintenance Cleaning & CCTV Program CMSD entered into an agreement with ProPipe to CCTV the entire wastewater system. By the end of the 4th quarter ProPipe CCTV’d 333,463 feet of pipeline, which is approximately 29% of the system. The work will take two years to complete. The District’s cleaning crews are continuing to clean approximately 3,000 feet a day for a total of 6,000 feet a day. Ongoing 1.6 Evaluate force main conditions on a regular basis The Harbor and South Coast Plaza force mains are described in Strategic Goal 1.4 above. In FY 2016-17, Engineering will begin evaluating the rehabilitation of the Victoria force main. In FY 2018-19 Gisler, Elden and Iowa force mains will be evaluated and FY 2019-20 21st Street force main will be evaluated. Ongoing 1.7 Pump Station Maintenance & Standardization Program In the 4th quarter staff completed preventive maintenance at the following stations:  21st Street  President  Canyon  Harbor  Elden Irvine Ongoing 1.8 Fats Oil Grease (FOG) Program Nothing to report this quarter. On-going 1.9 Sewer Lateral Assistance Program At the end of the fiscal year, CMSD received 240 new SLAP applications and processed payment for 198 applications totaling $196,284. On-going 1.10 Abandon five pump stations on the west side in conjunction with Orange County Sanitation District companion project. This project is on hold until Orange County Sanitation District decides to fund their portion of the project or not. CMSD Board of Directors directed the general manager to negotiate with OCSD’s general manager monetary compensation for the investment CMSD made in 1991 in relations to this project. 2020 COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 2.0 SOLID WASTE Objective Strategic Goals Accomplishments Completion Timeline To manage the collection and recycling of residential trash in the most economical and environmentally friendly way. 2.1 Behavior Study for Organics Recycling Program On June 14, 2016, the author of the study returned to CMSD, at the request of the Board, to present her findings. 2016 2.2 Annual contract audits Nothing to report this quarter. The 2015-16 audit will begin in the summer of 2016. On-going 2.3 Comprehensive Education Program On June 4 and 5, 2016, CMSD had a booth at the Fish Fry disseminating educational information to the public. On June 28, 2016 the Orange County Department of Education’s Inside the Outdoors Foundation taught students at Davis Elementary School the importance of recycling and proper disposal of household hazardous waste products. Ongoing 2.4 Develop strategies for 75% waste diversion From the findings of the Organics Recycling Behavioral study, staff is preparing a plan that will try to increase organics recycling participation. 2017 2.5 Monitor advancements and technology in the solid waste industry The anaerobic digestion facility is fully operational and accepting CMSD’s organics waste. 2017 2.6 Apply for waste diversion grants Waste diversion grants are not available at this time. On-going COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 3.0 PARTNERSHIPS Objective Strategic Goals Accomplishments Completion Timeline To foster beneficial relationships to accomplish the goals of the District 3.1 Regulatory Communications Nothing to report this quarter. On-going 3.2 Strengthen our ties with local government, special districts and educational institutions Staff is developing a plan to reach out to art students to participate in CMSD’s art wrap contest for pump station electrical control panels. At the beginning of the 2016 school year, CMSD will reach out to CMHS, EHS, Back Bay HS, Waldorf School of OC, OCC, and Vanguard University. On April 19, 2016, CMSD staff and City of Costa Mesa Fire Department conducted a joint training exercise on confine space entry. On-going 3.3 Develop a partnership with property owners that operate private sewer pump stations. Nothing to report this quarter On-going 3.4 Participate in the activities of professional associations In the 4th quarter, staff and the Board of Directors participated in the following professional associations:  California Society Municipal Finance Officers Training day  Solid Waste Association of North America West Coast Symposium, San Luis Obispo  City Clerk’s Association of California Annual Conference, Newport Beach  California Water Environment Association Annual Conference, Santa Clara  CSDA Legislative Days, Sacramento  CSDA General Leadership Summit, Lake Tahoe  Special District Risk Management Authority Board of Directors Meeting, Sacramento  CSDA Board of Directors Meeting, Sacramento  Public Risk Management Association, Atlanta Georgia (Funded by SDRMA) On-going 3.5 Participate in community groups and civic organization activities CMSD had a booth for two days at the Fish Fry. On-going 3.6 Strengthen our ties with emergency service providers On May 3, 2016 staff attended Water/Wastewater Emergency Response Organization of Orange County (WEROC) quarterly coordination meeting. On April 19, 2016, CMSD staff and City of Costa Mesa Fire Department conducted a joint training exercise on confine space entry. On-going COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 4.0 COMMUNITY OUTREACH & COMMUNICATIONS Objective Strategic Goals Accomplishments Completion Timeline To inform and establish beneficial relations with the community 4.1 Conduct community outreach survey Nothing to report this quarter. Projected to begin in Fall 2016. 2016 4.2 Community open house CMSD is now the owner of the building at 290 Paularino Avenue that will be the District’s new HQ. Move in is expected in the first week of November of 2016. A community open house will occur soon after or the first part of 2017. On-going 4.3 State of the District Nothing to report this quarter. The Committee is recommending the State of the District should coincide with the open house ceremony for the new HQ building. On-going 4.4 District branding Nothing to report this quarter. On-going 4.5 Celebrate the District’s 75th Anniversary Nothing to report this quarter. 2019 4.6 Submit award applications The District successfully received the following awards this quarter:  Silver Excellence Award for Integrated Waste Management System from Solid Waste Association of North America  Reaccreditation for District of Distinction from CSDA. On-going 4.7 Demonstrate outstanding efforts in transparency. Nothing to report this quarter. On-going COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 5.0 ADMINISTRATIVE MANAGEMENT Objective Strategic Goals Accomplishments Completion Timeline To create, maintain and implement policies and procedures to ensure sound and transparent management of the District 5.1 Develop a future plan for operational facilities adequacy, Nothing to report this quarter. This goal is complete. On-going 5.2 Ensure financial documents, employee salaries, contracts and expenditures are easily accessible to the public Nothing to report this quarter. Financial documents, employee salaries, contracts and expenditures are easily accessible to the public on the District’s website. This goal is complete. On-going 5.3 Stay informed on applicable federal, state and regional regulations In May CMSD attended CSDA Legislative Days and stay’s informed of state regulations through CSDA’s grass root efforts. On the federal side, staff is watching HR 3353 (Hunter) that will provide important protections to public wastewater agencies from lawsuits that do not yield a corresponding environmental benefit. Ongoing 5.4 Review and maintain Operations Code, policies and Administrative Regulations On May 26, 2016 the Board approved revising the Operations Code, Administrative Policies and the Employee Handbook, as recommended by the Ad Hoc Committee. The next review of these regulations will be in 2018. Ongoing 5.5 Refine emergency operations procedures and upgrade infrastructure Nothing to report this quarter. On-going COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 6.0 PERSONNEL/ORGANIZATIONAL MANAGEMENT Objective Strategic Goals Accomplishments Completion Timeline To employ and retain a high quality, motivated workforce 6.1 Perform EOC training On May 12th, staff attended a joint WEROC staff and member agency tabletop exercise at WEROC South Emergency Operations Center, which is located at Moulton Niguel Water District. The exercise was a discussion based exercise with a format that allowed for Member Agency EOC Staff and the WEROC EOC Staff to interact with one another and learn how to communicate critical information in a way that everyone understands. On-going 6.2 Job Description Updates Nothing to report this quarter On-going 6.3 Promote a safety culture within the organization The District continues to have monthly safety meetings and recognizing an employee every month for demonstrating safety practices. On June 22 and 23, 2016 staff received CPR and First Aid training that included training using a deliberator. On-going 6.4 Complete a comprehensive salary and health benefit study Nothing to report this quarter 2020 6.5 Create a Development Plan n This goal is complete. Staff has a worksheet to create a development plan for employees that inspire future success of their professional career. 2016 6.6 Periodic Organization Chart evaluation The 2015 Organization Chart is complete. Nothing to report this quarter 2015, 2017 & 2019 6.7 Promote high employee satisfaction To ensure employees have the necessary tools and equipment to effectively perform their duties, CMSD negotiated the temporary construction easement with a private homeowner that will enable staff to connect a portable generator for Adams Pump Station from Calvert Avenue. This will greatly improve staff safety and the timeliness to provide backup power for this station. Ongoing COSTA MESA SANITARY DISTRICT STRATEGIC PLAN FISCAL YEARS 2015-20 QUARTERLY PROGRESS REPORT 2015-16 (4th QTR) In-Process Completed Ongoing Not scheduled to begin yet Delayed 7.0 FINANCE Objective Strategic Goals Accomplishments Completion Timeline To ensure the short and long term fiscal health of the District 7.1 Perform long term solid and liquid waste rate projections Nothing to report this quarter. On-going 7.2 Develop a long term CIP Nothing to report this quarter because this goal is complete. On-going 7.3 Evaluate the District’s investment policy Nothing to report this quarter because this goal is complete. On-going 7.4 Produce a Comprehensive Annual Financial Report (CAFR) Nothing to report this quarter because this goal is complete. On-going 7.5 Evaluate an appropriate reserve program for all District funds and develop an inclusive reserve policy Nothing to report this quarter because this goal is complete. On-going 7.6 Monitor the asset management program Staff is in the process of scheduling refresher training on the asset management program to ensure there is adequate funds for assets ending their life cycle. 2016 7.7 Create a popular report and upload document on the District’s website Nothing to report this quarter because this goal is complete. 2016 Costa Mesa Sanitary District ... an Independent Special District Rewarding Ideas Program Item Number:16. Recommendation/Notes: Recommendation: That the Board of Directors approves rewarding Joel Ortiz, Wastewater Maintenance Worker III, $500.00 for his idea to relocating the Adams Pump Station mobile generator to Calvert Avenue. ATTACHMENTS: Description Type Rewarding Ideas Program 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: July 28, 2016 Subject: Rewarding Ideas Program Summary The Rewarding Ideas Program is an employee suggestion program. The program was established to generate ideas for organizational improvements and provide a method for recognizing adopted ideas. Joel Ortiz, Wastewater Maintenance Worker III, submitted an idea that will improve the safety of staff working in the field and will decrease response time for providing back-up power in the event of a power outage. Staff Recommendation That the Board of Directors approves rewarding Joel Ortiz, Wastewater Maintenance Worker III, $500 for his idea to relocate the Adams Pump Station mobile generator to Calvert Avenue. Analysis Currently, at the Adams Pump Station, when a power outage occurs, a generator is set-up in the number three lane of traffic. Traffic control is set-up and the lane is closed. Two or three people may be needed to do traffic control, depending on the time of day and amount of traffic. The high speed of traffic puts staff at risk. Critical time to set-up the generator can be wasted while having to wait for traffic control to be set-up. Time is of the essence during a power outage. Joel Ortiz’s suggestion is to install the generator plug on Calvert Avenue, a residential street which is approximately 100 feet away from the Pump Station. By implementing the suggested alternative, staff will be Board of Directors July 28, 2016 Page 2 of 2 able avoid setting up in a high traffic situation while instead enabling them to pull the truck and generator on to a residential street. The District will benefit by reducing the time and manpower needed to set-up the generator in time of a power outage thus reducing the safety risk and possibility of a sewer system overflow. Strategic Plan Element Goal This item complies with the objective and strategy of Strategic Element 5.0, Administrative Management, which states the following: “Objective: To create, maintain and implement policies and procedures to ensure sound management of the District.” “Strategy: We will conduct periodic reviews, refine and implement policies and procedures, and assure the General Manager has the direction and tools necessary for successful District operations.” Legal Review Not applicable. Environmental Review The consideration of monetary rewards for employees for cost-saving ideas 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 money in the budget to award for this suggestion. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 28, 2016 Board of Directors meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve this suggestion made by Joel Ortiz. 2. Direct staff to report back with more information Attachment A: Employee Suggestion Submission Form Costa Mesa Sanitary District ... an Independent Special District Project Status Report Item Number:17. 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 $28 million; OCSD Staff continues to support the project.5/26/16 - The OCSD Operations Committee meeting of 5/4/16 included discussion on whether to proceed on the 6-19 project, which is OCSD's portion of this project.6/23/16 - CMSD is awaiting OCSD's formal decision on whether OCSD will continue the 6-19 project. 7/28/16 - OCSD has withdrawn the 6-19 South West Trunk from further consideration. Budget unappropriated.Account NumberEncumbrances Balance#101 186,446$ 183,058$ 677$ 2,500$ 211$ Total 186,446$ 183,058$ 677$ 2,500$ 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 $179,400.1/28/16 - #196-D Irvine PS Generator is complete except for AQMD processing; #196-C 23rd PS Generator will soon start construction. 2/25/16 - #196-D - The Board accepted the improvements at the 1/28/16 regular meeting. AQMD processing will occur soon. COSTA MESA SANITARY DISTRICTCAPITAL IMPROVEMENT PROGRAMFY 2015-2016PROJECT:#196 Installation of Backup Power and Pumping Capability2/25/16 - #196-C- The permit from Newport Beach is ready. The eletrical engineer is reviewing the generator submittal.3/24/16 - #196-C - 23rd Pump Station Generator - construction is 50% complete.4/28/16 - #196-C 23rd Pump Station Generator is 80% complete; generator should arrive approximately 4/18/16.5/26/16 - #196-C 23rd Pump Station was completed on May 6, 2016.6/23/16 - The Board accepted the improvements for #196-C 23rd PS at the May 2016 regular meeting.7/28-16 - All 4 sub-projects under Project #196 are complete.Account NumberEncumbrances Balance#196-A Elden, Victoria, Mendoza 790,000$ 770,845$ 19$ -$ 19,135$ #196-B Canyon 115,000 115,335 - - (335) #196-C 23rd Street 340,000 21,061 227,700 15,077 76,163 #196-D Irvine405,000 145,245 242,414 4,950 12,392 Total 1,650,000$ 1,052,486$ 470,133$ 20,027$ 107,354$ 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 $247,720. Project award is on the agenda.4/28/16 - #200-B Harbor Force Main construction will begin approximately 6/1/16; #200-C South Coast Plaza Force Main; a conceptual design has been finalized.5/26/16 - #200-B Harbor Force Main will begin construction in early June; #200-C South Coast Plaza Force Main will soon be out to bid.6/23/16 - #200-B Habor Force Main; the traffic control plans and detour plans were submitted to the City; 200-C SCP Force Main; the project will soon be out to bid.7/28/16 - #200-B Harbor Force Main will be constructed after the OC Fair; #200-C South Coast Plaza will go out to bid during July.Approved June 30, 2015 Current YearAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance#200-A Mendoza 209,000$ 209,068$ -$ -$ (68)$ #200-B Harbor 821,868$ -$ 12,893$ 7,500$ 801,475$ Total 1,030,868$ 209,068$ 12,893$ 7,500$ 801,407$ 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 $259,300. Projet award is on the agenda.4/28/16 - Construction will begin approximately 6/1/16.5/26/16 - Construction began in mid May, 2016.6/23/16 - The valves, piping, couplings, and other parts have been ordered.7/28/16 - The project will be constructed after the OC Fair due to the lead time on acquiring valves and piping.Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance#202459,000$ 10,567$ 8,144$ -$ 440,289$ Total459,000$ 10,567$ 8,144$ -$ 440,289$ 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.7/28/16 - Inspection of manhole adjustments during city street projects is continuing.Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201309-4300 340,500$ 174,401$ 28,647$ -$ 137,453$ 340,500$ 174,401$ 28,647$ -$ 137,453$ #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 $218,458. Project award is on the agenda.4/28/16 - Preconstruction meeting was held 4/1/16; preliminary work will begin 4/7/16.5/26/16 - Construction is underway.6/23/16 - All sections of pipe have been lined; contractor now installing liners in manholes.7/28/16 - Construction is complete and the project is on the agenda for acceptance of improvements.Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201310-4300 353,000$ -$ 131,924$ -$ 221,076$ 353,000$ -$ 131,924$ -$ 221,076$ #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 $47,420; contract being executed.12/17/15 - The pre-construction meeting is 12/11/15. 1/28/16 - Construction is underway.2/25/16 - Construction is continuing.3/24/16 - Construction is continuing.4/28/16 - Construction is complete and the project is on the regular meeting agenda for acceptance of improvements.5/26/16 - The project is complete.6/23/16 - No change in status.7/28/16 - No change in status. Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201311-4300 150,000$ -$ 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.7/28/16 - The new electrical enclosure will soon be installed. 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 $45,290 and the contract is being prepared.7/28/16 - Phase 2 is under construction and Phase 3 is out to bid. Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201314-4300 557,000$ -$ 840$ 45,290$ 510,870$ 557,000$ -$ 840$ 45,290$ 510,870$ #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 $8,590ESTIMATED COMPLETION DATE:November 2016STATUS REPORT:5/26/16 - Design phase is underway.6/23/16 - Formal request sent to Mesa Verde Country Club (MVCC) to locate generator on MVCC property.7/28/16 - Additional information was provided to MVCC on 7/2/16. Approved June 30, 2015Current Year to DateAccount NumberProject BudgetAccumulated CostExpendituresEncumbrancesBalance20-201315-4300 157,000$ -$ 1,960$ -$ 155,040$ 157,000$ -$ 1,960$ -$ 155,040$ #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:18. Recommendation/Notes: 1. 227 22nd Street, Costa Mesa, which is owned / developed by Mark Cernicky. ATTACHMENTS: Description Type Conflict of Interest Report Cover Memo To: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: [Description of Property/Project/Clients] Please be advised that I have been retained to do private engineering work for the property at 227 22nd St., CM, which is owned / developed by Mark Cernicky. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by Mark Cernicky and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Robin Hamers District Engineer Costa Mesa Sanitary District ... an Independent Special District Project No. 310 – Indus Sewer and Manhole Rehabilitation – Acceptance of Improvements Item Number:19. Recommendation/Notes: Recommendation: That the Board of Directors approves the following: 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. ATTACHMENTS: Description Type Project No. 310 – Indus Sewer and Manhole Rehabilitation – Acceptance of 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: July 28, 2016 Subject: Project No. 310 Indus Sewer and Manhole Rehabilitation – Acceptance of Improvements Summary Construction of the improvements was completed on June 15, 2016, therefore, it is appropriate for the District to accept the improvements and file a notice of completion. The purpose of the project was to rehabilitate the Indus sewer main and manholes to prevent future sanitary sewer overflows (SSOs). A spill from this line occurred on January 1, 2015 and 8,100 gallons of wastewater flowed into the Santa Ana Delhi Channel resulting in an administrative civil liability from the regional water quality control board. Staff Recommendation That the Board of Directors approves the following action: 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. Analysis The Indus sewer main is located in a CMSD easement in the backyards of residences fronting on Indus Street in Newport Beach. The backyards are immediately adjacent to the Orange County Santa Ana Delhi Flood Control Channel and a permit was obtained from Orange County Public Works to allow the contractor to use the channel area for staging. Board of Directors July 28, 2016 Page 2 of 3 Because of the location of the sewer main and restricted access, regular cleaning of the line is time consuming and requires two cleaning trucks instead of one truck so the hoses can be used together to clean the 1,200-foot section of sewer main. The backyard vegetation resulted in roots penetrating the walls of some of the manholes along the sewer main. Additionally, the sewer line is considered a hot spot due to past spill events. Now, however, as a result of the project, the sewer main has a new very smooth liner and the manholes have a full depth structural liner that will prevent root intrusion. This mitigation by the District allows the sewer main to be removed from the hot spot list. An additional nearby manhole in the rear yard of 2321 Mesa Drive was in the same condition as the manholes on the Indus line and so a structural liner was installed in the manhole. The contractor for the project was Insituform Technologies LLC, and the work force was very well trained worked smoothly and efficiently even though the pipe liner and equipment had to be hand carried through narrow residential side yards down slopes to the sewer main. The sub-contractor for the manholes was Ayala Engineering who was also very experienced and efficient. There were no complaints from any of the residents along the sewer main and no damage done to any of the backyards. 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. Legal Review Not applicable Environmental Review Installing a liner inside a sewer main along with installing a liner inside sewer manholes is categorically exempt under 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 budget for project #310 Indus Sewer and Manhole Rehabilitation is $353,000. The project to date expenses total $278,255, including encumbrances. The remaining available budget is $74,745 which is sufficient to cover expenses incurred but not yet billed and the retentions payable. Prior the rehabilitation, CMSD was cleaning this line four times a year. Now that this line is rehabilitated and off the hot spot list it will be cleaned once a year saving CMSD approximately $5,400 annually in cleaning costs. Furthermore, the additional eighteen hours it required to clean this line will be transferred to cleaning the entire wastewater system. Board of Directors July 28, 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 July 28, 2016 Board of Directors meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Refer the matter back to staff for additional information Attachment: Notice of Completion Reviewed by: Wendy Hooper Davis Finance Manager EXEMPT RECORDING REQUESTED PURSUANT TO SECTION 6103, GOVERNMENT CODE AND WHEN RECORDED MAIL TO: NOELANI MIDDENWAY CLERK OF THE DISTRICT COSTA MESA SANITARY DISTRICT 628 W. 19TH STREET COSTA MESA, CA 92627-2716 THIS SPACE FOR RECORDER’S USE ONLY ___________________________________________________________________________________ NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1. The undersigned is owner of sewer facilities as hereinafter described. 2. The full name of the undersigned is COSTA MESA SANITARY DISTRICT. 3. The full address of the undersigned is 628 W. 19th Street, Costa Mesa, CA 92627-2718. 4. The nature of the title of the undersigned is owner of sanitary sewer main line facilities subject to the following project: #310 Indus Sewer and Manhole Rehabilitation 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: None 6. The names of the predecessors in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to: None 7. A work of improvement on the property hereinafter described was completed on or around June 15, 2016. 8. The name of the contractor, if any, for such work of improvement was: Insituform Technologies, LLC 17988 Edison Avenue Chesterfield, MO 63005 (636) 530-8000 9. The property of which said work of improvement was completed is in the County of Orange, State of California, and is described as follows: In backyards of residences on Indus Street, Newport Beach 10. The street address of said property is: In backyards of residences on Indus Street, Newport Beach DATED this ________ day of ______________ 2016. COSTA MESA SANITARY DISTRICT ________________________________ MICHAEL SCHEAFER, PRESIDENT ATTEST: __________________________________ ROBERT OOTEN, SECRETARY STATE OF CALIFORNIA) COUNTY OF ORANGE )SS CITY OF COSTA MESA ) The undersigned, being duly sworn says: That he is the President of the Costa Mesa Sanitary District; that he has read the foregoing instrument and knows the content thereof, and that the facts stated therein are true, and that he makes this certification by authorization granted by the Board of Directors of the Costa Mesa Sanitary District. _______________________ MICHAEL SCHEAFER Costa Mesa Sanitary District ... an Independent Special District Project No. 316 Adams Pump Station Electrical Improvements – Consideration of Easement Agreement and Temporary Construction Easement Agreement Item Number:20. Recommendation/Notes: Recommendation: That the Board of Directors approves the following: 1. Approve and execute the Easement Agreement and transmit to the County Recorder for recording. 2. Authorize payment to Mr. Ibarra in the amount of $10,000. 3. Approve and execute the Temporary Construction Easement Agreement. 4. Direct the General Manager to continue proceeding with the project. ATTACHMENTS: Description Type Project No. 316 Adams Pump Station Electrical Improvements – Consideration of Easement Agreement and Temporary Construction Easement Agreement 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: July 28, 2016 Subject: Project No. 316 Adams Pump Station Electrical Improvements - Consideration of Easement Agreement and Temporary Construction Easement Agreement Summary This item was discussed at the June 14, 2016 Board study session and considered at the June 23, 2016 regular Board meeting where the Board approved funding for the project and approved in concept the terms of the easement agreement. At this time, the Easement Agreement has been signed and notarized by Cesar Ibarra and the agreement is being brought to the Board for formal consideration. Also included for Board consideration is the Temporary Construction Easement Agreement signed by Mr. Ibarra. This item does not require recording. Staff Recommendation That the Board of Directors approves the following: 1. Approve and execute the Easement Agreement and transmit to the County Recorder for recording. 2. Authorize payment to Mr. Ibarra in the amount of $10,000. 3. Approve and execute the Temporary Construction Easement Agreement. 4. Direct the General Manager to continue proceeding with the project. Board of Directors July 28, 2016 Page 2 of 3 Analysis 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. With the recording of the permanent easement and approval of the temporary construction easement agreement, the permanent improvements can be designed and constructed. 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. Legal Review District Counsel prepared both the easement agreement and the temporary construction easement agreement. 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 Board of Directors July 28, 2016 Page 3 of 3 “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. The Board approved an appropriation of $116,000 at the June 23, 2016 regular meeting. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 28, 2016 Board of Directors meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the easement agreement. Attachments: Easement Agreement Temporary Construction Easement Agreement Reviewed by: Wendy Hooper Davis Finance Manager RECORDING REQUESTED BY, AND WHEN RECORDED, MAIL TO: COSTA MESA SANITARY DISTRICT 628 W.19th Street Costa Mesa, CA 92627 Exempt from Fee--Public agency (Government Code Section 27383) ____________________________________________________________________________ (Space above this line for Recorder’s use only) EASEMENT AGREEMENT #316 Adams Pump Station Electrical Improvements This Easement Agreement is made and entered into this _________day of __________2016 by and between Cesar Ibarra, an individual, (“Grantor”) and the Costa Mesa Sanitary District, a California sanitary district, (“Grantee”). RECITALS A. Grantor is the owner of certain real property located at 2043 Calvert Avenue, in the City of Costa Mesa, described in Exhibit C. B. Grantee is a sanitary district charged with operating a sewer system that includes sewer lines to collect and transport sewage for treatment. C. As part of Grantee’s sewer system it operates and maintains a sewer pump station known as the Adams Pump Station, located on Adams Avenue to the rear of the real property owned by Ibarra. Occasionally the Adams Pump Station needs emergency power, and is usually serviced from Adams Avenue, necessitating traffic diversion. D. Grantee would prefer to install an underground electrical conduit across Ibarra’s property making electrical power possible from Calvert Avenue, which would improve worker and driver safety. E. Grantor is desirous of providing an easement for such purposes in exchange for the consideration provided by the Grantee for this Easement Agreement. NOW, THEREFORE, in consideration of the above recitals and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement. Grantor hereby grants to Grantee a perpetual, non-exclusive easement (the “Easement”) on, under, and across the Easement Area to install, construct, reconstruct, remove and replace, inspect, maintain, service, operate and improve the Utility Improvements. 2. Utility Improvements. The Utility Improvements shall include an underground conduit and electrical cable approximately one hundred ten (110) feet in length across the property and underground. The Utility Improvements will also include a reconstructed block wall with a new opening to accommodate an automatic transfer switch (ATS) and cabinet on Adams Avenue and adjacent to the Adams Pump Station. In the parkway on Calvert Avenue will be a four-foot-high electrical box that will allow connection to a mobile generator which will be parked in the street on Calvert Avenue. This electrical box will have an art wrap that is approved by the neighborhood and District. 3. Restoration. After the construction and after any repairs and reconstruction of the Utility Improvements or similar activity, Grantee shall restore and maintain the site in equal or better condition to what was previously in existence. Grantor shall remain responsible for landscaping and watering costs after such construction or reconstruction. 4. Utility Easement Area. The Utility Easement Area where the appurtenances shall be located shall be as described in Exhibit A and as depicted in Exhibit B. In addition, a temporary construction easement is being granted by Grantor by separate document over the entirety of the Parcel for construction, repair and access purposes. 5. Compensation. Grantor and Grantee agree that Grantor’s full compensation for granting the permanent easement and the temporary construction easement including the provisions contained therein is $10,000 and shall be paid after recordation of both easement agreements within 30 days of recording. 6. Non-exclusive rights. Grantee’s use of the property for the Utility Easement shall be non-exclusive, and Grantor retains the right to use the property for any lawful purpose which does not interfere with Grantee’s use of the Easement for the purposes described herein. 7. Damages and repairs. If Grantee damages Grantors’ property during its activities in using the Easement, Grantee shall repair it to Grantor’s reasonable satisfaction. 8. Indemnification. Grantee shall indemnify, defend and hold Grantor harmless for any damage or claim that arises out of Grantee’s use of the Easement. 9. Run with the land. The Easement Agreement and the terms and conditions shall be perpetual and run with the land. This Easement Deed shall be binding on and insure to the benefit of Grantor and Grantee and their successors in interest. 10. Amendment. This Easement Agreement may only be modified in writing by an agreement signed by both parties. 11. Waivers. Any waiver of the provisions of this Easement Agreement shall be in writing signed by the party to be charged. 12. Authority. The persons executing this Easement Agreement warrant that they have the authority to execute this Easement Deed on behalf of the parties on whose behalf they sign. 13. Counterparts. This Easement Agreement may be signed in counterparts, each shall be deemed an original, and all of which constitute the same binding agreement. 14. Entire Agreement. This Easement Deed represents the entire easement agreement between the parties and supersedes previous agreements and representations of the parties. IN WITNESS WHEREOF, the parties have executed this Easement Agreement as of the date first written above. GRANTOR _________________________________ Cesar Ibarra GRANTEE COSTA MESA SANITARY DISTRICT _________________________________________ President _________________________________________ Secretary (Notary) #316 TEMPORARY CONSTRUCTION EASEMENT AGREEMENT This Temporary Construction Easement Agreement (hereinafter “Construction Easement”) is made and entered into this ___day of _______2016 by and between Cesar Ibarra, an individual, (“Grantor”) and the Costa Mesa Sanitary District, a California sanitary district (“Grantee”) with reference to the following facts: RECITALS A. Grantor is the owner of certain real property located at 2043 Calvert Avenue, in the City of Costa Mesa, described in Exhibit C. B. Grantee is a sanitary district charged with operating a sewer system that includes sewer lines to collect and transport sewage for treatment. C. As part of Grantee’s sewer system it operates and maintains a sewer pump station known as the Adams Pump Station, located on Adams Avenue to the rear of the real property owned by Ibarra. Occasionally the Adams Pump Station needs emergency power, and is usually serviced from Adams Avenue, necessitating traffic diversion. D. Grantee would prefer to install an underground electrical conduit across Ibarra’s property making electrical power possible from Calvert Avenue, which would improve worker and driver safety. E. Grantor is desirous of providing an easement for such purposes in exchange for the consideration provided by the Grantee for this Easement Agreement. NOW, THEREFORE, in consideration of the above recitals and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Temporary Construction Easement. Grantor hereby grants to Grantee, and to its engineers and contractors operating under its supervision and direction, a temporary construction easement to construct the appurtenances and other improvements contemplated in that Easement Agreement for the permanent improvements that will be recorded on the property. 2. The Improvements. The improvements are as are more specifically described in the permanent Easement Agreement that is to be recorded, but involves trenching for the installation of electrical conduit across the property, a reconstructed block wall, an automatic transfer switch and cabinet and a four-foot high electrical box. 3. Temporary Construction Easement Area. While the permanent improvements will occupy the easement area shown in Exhibits A and B to the permanent easement, attached hereto, the construction activity will require intrusion onto a larger area of Grantor’s property for a limited time. The parties desire to set forth the terms of the temporary construction easement to provide for that construction. 4. Term. The term of this temporary construction easement shall be 30 days from Grantor’s consent that Grantee can begin construction. Grantor may extend the term by providing Grantee with a writing stating that the term is extended. Grantee shall consult with Grantor on the work plan schedule and shall endeavor to sequence construction in cooperation with Grantor. 5. Compliance with all laws. Grantee shall comply with all laws in the construction, including ensuring that trenching safety rules are followed and that all work has appropriate permission by other government entities or utilities. Grantee shall provide any notices regarding lateral support to adjoining property owners if such lateral support may be affected, in accordance with Civil Code §832. 6. Hold Harmless from Mechanic’s Liens. Grantee shall ensure that all laborers and suppliers are paid and shall defend and hold harmless Grantor from any mechanic’s lien claims. 7. Insurance. Grantee agrees to ensure that sufficient insurance is provided for the project, including liability and worker’s compensation. Grantee shall be a named additional insured on liability insurance. 8. Safety. Grantee shall ensure that persons performing said work are responsible for the safety and site condition. 9. Dust palliation. Grantee shall be responsible to ensure that the grounds are dust palliated and that nuisance conditions not be allowed to occur. 10. Soil and water removal. Grantee shall ensure that excavation soil and any water removed are disposed of in a lawful manner. 11. Restoration of the area/repair of damage. Grantee shall ensure that any damage or alteration of Grantor’s property is repaired and restored to an equal or better condition. 12. Construction/Staging/Storage Area. Grantor does hereby provide Grantee and its engineers and contractors the temporary right to use the entirety of the property at 2043 Calvert Avenue, Costa Mesa, for construction, staging and storage for the construction project for the limited term hereof, subject to the reasonable accommodation of Grantor’s needs. 13. Indemnification. Grantee shall indemnify, defend and hold Grantor harmless from any and all claims or liability arising from the construction occurring pursuant to this temporary construction easement. 14. Modification. This Agreement may not be modified or amended unless in writing and signed by the parties with authority to do so. GRANTOR _________________________________ Cesar Ibarra GRANTEE COSTA MESA SANITARY DISTRICT _________________________________________ President _________________________________________ Secretary Exhibit “A” Legal Description That portion of Lot 20 of Tract No. 4349, in the City of Costa Mesa, County of Orange, State of California, as shown on a map thereof recorded in Book 154, pages 32 through 34, of Miscellaneous Maps, in the office of the County Recorder of said county, described as follows: The easterly 4.00 feet of said Lot 20. Together with the southerly 4.50 feet of the westerly 14.50 feet of the easterly 18.50 feet of said Lot 20. Containing 465.25 square feet, more or less. Attached and made a part hereof is Exhibit “B”. Prepared by: 7/6/16 Robin B. Hamers, RCE 31720 Date 4.00' 14.50' 18.50' 4.50' Calvert Avenue Adams Avenue30'50'CL CL 30'50'N0° 43' 36"W 100.00'N89° 16' 24"E 70.00' N89° 16' 24"E 70.00'N0° 43' 36"W 100.00'4.00' PROPERTY LINE PROPERTY LINE RIGHT-OF-WAY RIGHT-OF-WAY 6' PUBLIC UTILITY EASEMENT PER TRACT NO. 4349 6' PACIFIC TEL. EASEMENT REC. 2/7/62 PER BK. 6001, PG. 797 O.R. 6' SO. CAL. EDISON EASEMENT REC. 1/31/62 PER BK. 5994, PG. 937 O.R. Exhibit "B" PLAT N SCALE: 1"=20' EXHIBIT "C" Legal Description For APN/Parcel ID(s): 139-404-14 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT(S) 20 OF TRACT NO. 4349, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 154, PAGE(S) 32, 33 AND 34 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:14 PM 1 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760 PRELIMINARY REPORT Order No.:58601604760-JFA Property:2043 Calvert Avenue Costa Mesa, CA 92626 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(ies) of title insurance to be issued hereunder will be policy(ies) 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 Insurance Company Countersigned By: Authorized Officer or Agent By: President Attest: Secretary CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:14 PM 2 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760 Visit Us on our Website: www.ctic.com ISSUING OFFICE: 16969 Von Karman Ave Suite 150,Irvine, CA 92606 FOR SETTLEMENT INQUIRIES, CONTACT: Star Real Estate 20951 Brookhurst St Huntington Beach, CA 92646 (714)968-4456  FAX PRELIMINARY REPORT Title Officer:John F Allen Email:AllenJo@ctt.com Phone No.:(949)263-6961 Fax No.:(949)263-0872 Title No.:58601604760-JFA Customer:John A Kelly Email:JohnKelly@CostaMesaLiving.com Phone No.:(714)968-4456 Fax No.: Ref. No.: PROPERTY ADDRESS(ES):2043 Calvert Avenue,Costa Mesa,CA EFFECTIVE DATE: April 28, 2016 at 07:30 AM The form of policy or policies of title insurance contemplated by this report is: ALTA Homeowner's Policy of Title Insurance 2010 ALTA Loan Policy 2006 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: Cesar F. Ibarra, an unmarried man 3. The Land referred to in this Report is described as follows: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF EXHIBIT "A" Legal Description CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:14 PM 3 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760 For APN/Parcel ID(s):139-404-14 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT(S) 20 OF TRACT NO. 4349, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 154, PAGE(S) 32, 33 AND 34 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Title No.: 58601604760-JFA CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:15 PM 4 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760 AT THE DATE HEREOF, EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1.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. 2.Property taxes, including any personal property taxes and any assessments collected with taxes, are paid. For proration purposes the amounts were: Tax Identification No.: 139-404-14 Fiscal Year: 2015-2016 1st Installment: $2,885.18 2nd Installment: $2,885.18 Exemption: $0.00 Code Area: 15-045 3.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. 4.Water rights, claims or title to water, whether or not disclosed by the public records. 5.Easement(s) for the purpose(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of said tract/plat; Purpose: Public Utilities Affects: Easterly 6 feet 6.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, or source of income, 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: December 22, 1961 Recording No: Book 5953, Page 575, of Official Records. Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or trust deed made in good faith and for value. 7.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: The Pacific Telephone and Telegraph Company Purpose: Public Utilities Recording Date: February 7, 1962 Recording No.: Book 6001, Page 797, of Official Records. Affects: Easterly 6 feet Title No.: 58601604760-JFA EXCEPTIONS (continued) CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:15 PM 5 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760 8.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Southern California Edison Company Purpose: Public Utilities Recording Date: January 31, 1962 Recording No.: Book 5994, Page 937, of Official Records. Affects: Southerly 6 feet 9.A deed of trust to secure an indebtedness in the amount shown below, Amount: $493,500.00 Dated: January 7, 2015 Trustor/Grantor: Cesar F Ibarra, an unmarried man Trustee: Nextitle A Title and Escrow Co. Beneficiary: Mortgage Electronic Registration Systems, Inc. (MERS), solely as nominee for Ony Glo, Inc. dba: Ogi Mortgage Bankers Loan No.: 1411210000 Recording Date: January 16, 2015 Recording No.: 2015000026606, of Official Records. 10.A judgment for installment payments of spousal and/or child support, to be made by: Debtor: Cesar Ibarra Creditor: San Bernardino County District Attorney Child Support Division Date entered: March 9, 1998 County: San Bernardino Court: Superior Court of California Case No.: ODA025493 Recording Date: April 6, 1998 Recording No: 1998-199094, of Official Records. 11.A judgment for installment payments of spousal and/or child support, to be made by: Debtor: Cesar Ibarra Creditor: San Bernardino County Department of Child Support Services Date entered: March 26, 2002 County: San Bernardino Court: Superior Court of California Case No.: RDA038007 Recording Date: April 23, 2002 Recording No: 2002-337201, of Official Records. 12.A judgment for installment payments of spousal and/or child support, to be made by: Debtor: Cesar Ibarra Creditor: County of Los Angeles Date entered: April 18, 2002 County: Los Angeles Court: Superior Court of California Case No.: BL0046780 Recording Date: July 10, 2003 Recording No: 2003-806690, of Official Records. Title No.: 58601604760-JFA EXCEPTIONS (continued) CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:15 PM 6 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760 13.A judgment for installment payments of spousal and/or child support, to be made by: Debtor: Cesar Ibarra Creditor: County of Los Angeles Date entered: April 18, 2002 County: Los Angeles Court: Superior Court of California Case No.: 36BL0046780 Recording Date: December 16, 2003 Recording No: 2003-1487462, of Official Records. and Recording Date: December 16, 2003 and Recording No: 2003-1487480, of Official Records. 14.A judgment, for the amount shown below, and any other amounts due: Amount: $4,007.28 Debtor: Cesar Ibarra Creditor: Midland Funding LLC Date entered: May 24, 2012 County: Orange Court: Superior Court of California Case No.: 30-201200558320-CL-CL-WJC Recording Date: March 21, 2013 Recording No: 2013000172870, of Official Records. END OF EXCEPTIONS Title No.: 58601604760-JFA CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:15 PM 7 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760= NOTES Note 1.In order to complete this report, the Company requires a Statement of Information to be completed by the following party(s), Party(s): All Parties The Company reserves the right to add additional items or make further requirements after review of the requested Statement of Information. NOTE: The Statement of Information is necessary to complete the search and examination of title under this order. Any title search includes matters that are indexed by name only, and having a completed Statement of Information assists the Company in the elimination of certain matters which appear to involve the parties but in fact affect another party with the same or similar name. Be assured that the Statement of Information is essential and will be kept strictly confidential to this file. Note 2.Note: There are NO conveyances affecting said Land recorded within 24 months of the date of this report. Note 3.NOTE: When this title order closes and if the Company is handling the loan proceeds through a sub-escrow, all title charges and expenses normally billed will be deducted from those loan proceeds. Title charges and expenses would include Title Premiums, any Tax or Bond advances, Documentary Transfer Tax, Recording Fees, etc. Note 4.Note: None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an Extended Coverage Loan Policy, when issued. Note 5.Note: The Company is not aware of any matters which would cause it to decline to attach CLTA Endorsement Form 116 indicating that there is located on said Land a Single Family Residence, known as 2043 Calvert Avenue, City of Costa Mesa, State of California, to an Extended Coverage Loan Policy. Note 6.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 asample 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. Note 7.If a county recorder, title insurance company, escrow company, real estate agent or association provides a copy of the declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14-point bold faced typed and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described. Note 8.Any documents being executed in conjunction with this transaction must be signed in the presence of an authorized Company employee, an authorized employee of an agent, an authorized employee of the insured lender, or by using Bancserv or other approved third-party service. If the above requirements cannot be met, please call the company at the number provided in this report. Title No.: 58601604760-JFA NOTES (continued) CLTA Preliminary Report Form - Modified (11/17/2006)Printed: 05.12.16 @ 04:15 PM 8 CA-CT-FWKO-02180.055860-SPS-1-16-58601604760= Note 9.A Preliminary Change of Ownership form is required upon a change in ownership of the Land. Section 480 of the Revenue and Taxation Code of the State of California requires that a grantee of real property complete a Preliminary Change of Ownership statement, which is to be filed at the time that a grant deed is recorded. In the event that the statement is not completed and presented at the time of the recording of the deed, the County Recorder will assess the grantee an additional charge to record the deed. In addition to the additional charge at the time of recording, the County Assessor may assess additional fees and penalties for failure to file the Ownership Statement within the required time. END OF NOTES Privacy Statement Printed: 05.12.16 @ 04:15 PM by DGSCA0002565_CTLA.doc / Updated: 04.01.16 -CT-FWKO-02180.055851-58601604760 FIDELITY NATIONAL FINANCIAL PRIVACY NOTICE Effective: May 1, 2015 Order No.: 58601604760--PR Fidelity National Financial, Inc. and its majority-owned subsidiary companies providing real estate- and loan-related services (collectively, "FNF", "our" or "we") respect and are committed to protecting your privacy. This Privacy Notice lets you know how and for what purposes your Personal Information (as defined herein) is being collected, processed and used by FNF. We pledge that wewill take reasonable steps to ensure that your Personal Information will only be used in ways that are in compliance with this Privacy Notice. The provision of this Privacy Notice to you does not create any express or implied relationship, or create any express or implied duty or other obligation, between Fidelity National Financial, Inc. and you. See also No Representations or Warranties below. This Privacy Notice is only in effect for any generic information and Personal Information collected and/or owned by FNF, including collection through any FNF website and any online features, services and/or programs offered by FNF (collectively, the "Website"). This Privacy Notice is not applicable to any other web pages, mobile applications, social media sites, email lists, generic information or Personal Information collected and/or owned by any entity other than FNF. How Information is Collected The types of personal information FNF collects may include, among other things (collectively, "Personal Information"): (1) contact information (e.g., name, address, phone number, email address); (2) demographic information (e.g., date of birth, gender marital status); (3) Internet protocol (or IP) address or device ID/UDID; (4) social security number (SSN), student ID (SIN), driver’s license, passport, and other government ID numbers; (5) financial account information; and (6) information related to offenses or criminal convictions. 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; Information we receive from you through the Website;Information about your transactions with or services performed by us, our affiliates, or others; andFrom consumer or other reporting agencies and public records maintained by governmental entities that we either obtain directly from those entities, or from our affiliates or others. Additional Ways Information is Collected Through the Website Browser Log Files.Our servers automatically log each visitor to the Website and collect and record certain information about each visitor. This information may include IP address, browser language, browser type, operating system, domain names, browsing history (including time spent at a domain, time and date of your visit), referring/exit web pages and URLs, and number of clicks. The domain name and IP address reveal nothing personal about the user other than the IP address from which the user has accessed the Website. Cookies. From time to time, FNF or other third parties may send a "cookie" to your computer. 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 and that can be re-sent to the serving website on subsequent visits. A cookie, by itself, cannot read other data from your hard disk or read other cookie files already on your computer. A cookie, by itself, does not damage your system. We, our advertisers and other third parties may use cookies to identify and keep track of, among other things, those areas of the Website and third party websites that you have visited in the past in order to enhance your next visit to the Website. You can choose whether or not to accept cookies by changing the settings of your Internet browser, but some functionality of the Website may be impaired or not function as intended. See the Third Party Opt Out section below. Web Beacons. Some of our web pages and electronic communications may contain images, which may or may not be visible to you, known as Web Beacons (sometimes referred to as "clear gifs"). Web Beacons collect only limited information that includes a cookie number; time and date of a page view; and a description of the page on which the Web Beacon resides. We may also carry Web Beacons placed by third party advertisers. These Web Beacons do not carry any Personal Information and are only used to track usage of the Website and activities associated with the Website. See the Third Party Opt Out section below. Unique Identifier. We may assign you a unique internal identifier to help keep track of your future visits. We may use this information to gather aggregate demographic information about our visitors, and we may use it to personalize the information you see on the Website and some of the electronic communications you receive from us. We keep this information for our internal use, and this information is not shared with others. Third Party Opt Out. Although we do not presently, in the future we may allow third-party companies to serve advertisements and/or collect certain anonymous information when you visit the Website. These companies may use non-personally identifiable information (e.g., click stream information, browser type, time and date, subject of advertisements clicked or scrolled over) during your visits to the Website in order to provide advertisements about products and services likely to be of greater interest to you. These companies typically use a cookie or third party Web Beacon to collect this information, as further described above. Through these technologies, the third party may have access to and use non-personalized information about your online usage activity. You can opt-out of certain online behavioral services through any one of the ways described below. After you opt-out, you may continue to receive advertisements, but those advertisements will no longer be as relevant to you.You can opt-out via the Network Advertising Initiative industry opt-out at http://www.networkadvertising.org/.You can opt-out via the Consumer Choice Page at www.aboutads.info.For those in the U.K., you can opt-out via the IAB UK's industry opt-out at www.youronlinechoices.com.You can configure your web browser (Chrome, Firefox, Internet Explorer, Safari, etc.) to delete and/or control the use of cookies. More information can be found in the Help system of your browser. Note: If you opt-out as described above, you should not delete your cookies. If you delete your cookies, you will need to opt-out again. Use of Personal Information Information collected by FNF is used for three main purposes:To provide products and services to you or one or more third party service providers (collectively, "Third Parties") who are obtaining services on your behalf or in connection with a transaction involving you.To improve our products and services that we perform for you or for Third Parties.To communicate with you and to inform you about FNF’s, FNF’s affiliates and third parties’ products and services. Privacy Statement Printed: 05.12.16 @ 04:15 PM by DGSCA0002565_CTLA.doc / Updated: 04.01.16 -CT-FWKO-02180.055851-58601604760 When Information Is Disclosed By FNF We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following:To agents, brokers, representatives, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction;To third-party contractors or service providers who provide services or perform marketing services or 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 lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing. In addition to the other times when we might disclose information about you, we might also disclose information when required by law or in the good-faith belief that such disclosure is necessary to: (1) comply with a legal process or applicable laws; (2) enforce this Privacy Notice; (3) respond to claims that any materials, documents, images, graphics, logos, designs, audio, video and any other information provided by you violates the rights of third parties; or (4) protect the rights, property or personal safety of FNF, its users or the public. We maintain reasonable safeguards to keep the Personal Information that is disclosed to us secure. We provide Personal Information and non-Personal Information to our subsidiaries, affiliated companies, and other businesses or persons for the purposes of processing such information on our behalf and promoting the services of our trusted business partners, some or all of which may store your information on servers outside of the United States. We require that these parties agree to process such information in compliance with our Privacy Notice or in a similar, industry-standard manner, and we use reasonable efforts to limit their use of such information and to use other appropriate confidentiality and security measures. The use of your information by one of our trusted business partners may be subject to that party’s own Privacy Notice. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. We also reserve the right to disclose Personal Information and/or non-Personal Information to take precautions against liability, investigate and defend against any third-party claims or allegations, assist government enforcement agencies, protect the security or integrity of the Website, and protect the rights, property, or personal safety of FNF, our users or others. We reserve the right to transfer your Personal 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. We also cannot make any representations regarding the use or transfer of your Personal Information or other information that we may have in the event of our bankruptcy, reorganization, insolvency, receivership or an assignment for the benefit of creditors, and you expressly agree and consent to the use and/or transfer of your Personal Information or other information in connection with a sale or transfer of some or all of our assets in any of the above described proceedings. Furthermore, we cannot and will not be responsible for any breach of security by any third parties or for any actions of any third parties that receive any of the information that is disclosed to us. Information From Children We do not collect Personal Information from any person that we know to be under the age of thirteen (13). Specifically, the Website is not intended or designed to attract children under the age of thirteen (13). You affirm that you are either more than 18 years of age, or an emancipated minor, or possess legal parental or guardian consent, and are fully able and competent to enter into the terms, conditions, obligations, affirmations, representations, and warranties set forth in this Privacy Notice, and to abide by and comply with this Privacy Notice. In any case, you affirm that you are over the age of 13, as THE WEBSITE IS NOT INTENDED FOR CHILDREN UNDER 13 THAT ARE UNACCOMPANIED BY HIS OR HER PARENT OR LEGAL GUARDIAN. Parents should be aware that FNF’s Privacy Notice will govern our use of Personal Information, but also that information that is voluntarily given by children – or others – in email exchanges, bulletin boards or the like may be used by other parties to generate unsolicited communications. FNF encourages all parents to instruct their children in the safe and responsible use of their Personal Information while using the Internet. Privacy Outside the Website The Website may contain various links to other websites, including links to various third party service providers. FNF is not and cannot be responsible for the privacy practices or the content of any of those other websites. Other than under agreements with certain reputable organizations and companies, and except for third party service providers whose services either we use or you voluntarily elect to utilize, we do not share any of the Personal Information that you provide to us with any of the websites to which the Website links, although we may share aggregate, non-Personal Information with those other third parties. Please check with those websites in order to determine their privacy policies and your rights under them. European Union Users If you are a citizen of the European Union, please note that we may transfer your Personal Information outside the European Union for use for any of the purposes described in this Privacy Notice. By providing FNF with your Personal Information, you consent to both our collection and such transfer of your Personal Information in accordance with this Privacy Notice. Choices With Your Personal Information Whether you submit Personal Information to FNF is entirely up to you. You may decide not to submit Personal Information, in which case FNF may not be able to provide certain services or products to you. You may choose to prevent FNF from disclosing or using your Personal Information under certain circumstances ("opt out"). You may opt out of any disclosure or use of your Personal Informationfor purposes that are incompatible with the purpose(s) for which it was originally collected or for which you subsequently gave authorization by notifying us by one of the methods at the end of this Privacy Notice. Furthermore, even where your Personal Information is to be disclosed and used in accordance with the stated purposes in this Privacy Notice, you may elect to opt out of such disclosure to and use by a third party that is not acting as an agent of FNF. As described above, there are some uses from which you cannot opt-out. Please note that opting out of the disclosure and use of your Personal Information as a prospective employee may prevent you from being hired as an employee by FNF to the extent that provisionof your Personal Information is required to apply for an open position. Privacy Statement Printed: 05.12.16 @ 04:15 PM by DGSCA0002565_CTLA.doc / Updated: 04.01.16 -CT-FWKO-02180.055851-58601604760 If FNF collects Personal Information from you, such information will not be disclosed or used by FNF for purposes that are incompatible with the purpose(s) for which it was originally collected or for which you subsequently gave authorization unless you affirmatively consent to such disclosure and use. You may opt out of online behavioral advertising by following the instructions set forth above under the above section "Additional Ways That Information Is Collected Through the Website," subsection "Third Party Opt Out." Access and Correction To access your Personal Information in the possession of FNF and correct inaccuracies of that information in our records, please contact us in the manner specified at the end of this Privacy Notice. We ask individuals to identify themselves and the information requested to be accessed and amended before processing such requests, and we may decline to process requests in limited circumstances as permitted by applicable privacy legislation. Your California Privacy Rights Under California’s "Shine the Light" law, California residents who provide certain personally identifiable information in connection with obtaining products or services for personal, family or household use are entitled to request and obtain from us once a calendar year information about the customer information we shared, if any, with other businesses for their own direct marketing uses. If applicable, this information would include the categories of customerinformation and the names and addresses of those businesses with which we shared customer information for the immediately prior calendar year (e.g., requests made in 2015 will receive information regarding 2014 sharing activities). To obtain this information on behalf of FNF, please send an email message to privacy@fnf.com with "Request for California Privacy Information" in the subject line and in the body of your message. We will provide the requested information to you at your email address in response. Please be aware that not all information sharing is covered by the "Shine the Light" requirements and only information on covered sharing will be included in our response. Additionally, because we may collect your Personal Information from time to time, California’s Online Privacy Protection Act requires us to disclose how we respond to "do not track" requests and other similar mechanisms. Currently, our policy is that we do not recognize "do not track" requests from Internet browsers and similar devices. FNF Compliance with 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 for fulfilling a service to that mortgage loan servicer. For example, you may access CCN to complete a transaction with your mortgage loan servicer. During this transaction, the information which we may collect on behalf of the mortgage loan servicer is as follows:First and Last NameProperty Address User NamePasswordLoan NumberSocial Security Number - masked upon entry Email AddressThree Security Questions and Answers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 the FNF Privacy Notice apply to your interaction with CCN, except for the sections titled Choices with Your Personal 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, you should contact your mortgage loan servicer. No Representations or Warranties By providing this Privacy Notice, Fidelity National Financial, Inc. does not make any representations or warranties whatsoever concerning any products or services provided to you by its majority-owned subsidiaries. In addition, you also expressly agree that your use of the Website is at your own risk. Any services provided to you by Fidelity National Financial, Inc. and/or the Website are provided "as is" and "as available" for your use, without representations or warranties of any kind, either express or implied, unless such warranties are legally incapable of exclusion. Fidelity National Financial, Inc. makes no representations or warranties that any services provided to you by it or the Website, or any services offered in connection with the Website are or will remain uninterrupted or error-free, that defects will be corrected, or that the web pages on or accessed through the Website, or the servers used in connection with the Website, are or will remain free from any viruses, worms, time bombs, drop dead devices, Trojan horses or other harmful components. Any liability of Fidelity National Financial, Inc. and your exclusive remedy with respect to the use of any product or service provided by Fidelity National Financial, Inc. including on or accessed through the Website, will be the re-performance of such service found to be inadequate. Your Consent To This Privacy Notice By submitting Personal Information to FNF, you consent to thecollection and use of information by us as specified above or as we otherwise see fit, in compliance with this Privacy Notice, unless you inform us otherwise by means of the procedure identified below. If we decide to change this Privacy Notice, we will make an effort to post those changes on the Website. Each time we collect information from you following any amendment of this Privacy Notice will signify your assent to and acceptance of its revised terms for all previously collected information and information collected from you in the future. We may use comments, information or feedback that you may submit in any manner that we may choose without notice or compensation to you. If you have additional questions or comments, please let us know bysending your comments or requests to: Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, Florida 32204 Attn: Chief Privacy Officer (888) 934-3354 privacy@fnf.com Copyright © 2015. Fidelity National Financial, Inc. All Rights Reserved. EFFECTIVE AS OF: MAY 1, 2015 ATTACHMENT ONE Attachment One (06/05/14) 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 or 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. ATTACHMENT ONE (CONTINUED) Attachment One (06/05/14) 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; 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 ATTACHMENT ONE (CONTINUED) Attachment One (06/05/14) 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; (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:] ATTACHMENT ONE (CONTINUED) Attachment One (06/05/14) 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 (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 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.] 7. [Variable exceptions such as taxes, easements, CC&R’s, etc., shown here.] ATTACHMENT ONE (CONTINUED) Attachment One (06/05/14) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (12-02-13) 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. 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 applicablebuilding 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. Notice of Available Discounts Notice of Available Discounts Printed: 05.12.16 @ 04:15 PM by DGSCA0002565_CTLA.doc / Updated: 04.01.16 -CT-FWKO-02180.055851-58601604760 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 filed 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 such discount. These discounts only apply to transactions 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. Not all discounts are offered by every FNF Company. The discount will only be applicable to the FNF Company as indicated by the named discount. FNF Underwritten Title Companies Underwritten by FNF Underwriters CTC - Chicago Title Company CTIC - Chicago Title Insurance Company Available Discounts CREDIT FOR PRELIMINARY TITLE 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 to 36 months and all or a portion of the charge previously paid for the report or commitment may be credited on a subsequent policy charge. FEE REDUCTION SETTLEMENT PROGRAM (CTC, CTIC) Eligible customers shall receive a $20.00 reduction in their title and/or escrow fees charged by the Company for each eligible transaction in accordance with the terms of the Final Judgments entered in The People of the State of California et al. v. Fidelity National Title Insurance Company et al.,Sacramento Superior Court Case No. 99AS02793, and related cases. 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 32% to 50% of the appropriate title insurance rate, depending on the type of coverage selected. This map/plat is being furnished as an aid in locating the herein described Land in relation to adjoining streets, natural boundaries and other land,This map/plat is being furnished as an aid in locating the herein described Land in relation to adjoining streets, natural boundaries and other land,and is not a survey of the land depicted. Except to the extent a policy of title insurance is expressly modified by endorsement, if any, the Company This map/plat is being furnished as an aid in locating the herein described Land in relation to adjoining streets, natural boundaries and other land,and is not a survey of the land depicted. Except to the extent a policy of title insurance is expressly modified by endorsement, if any, the Companydoes not insure dimensions, distances, location of easements, acreage or other matters shown thereon. Costa Mesa Sanitary District ... an Independent Special District Investment Report for the Month of June 2016 Item Number:21. Recommendation/Notes: Recommendation: That the Board of Directors approves the Investment Report for the month of June 2016. ATTACHMENTS: Description Type Investment Report for the Month of June 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: July 28, 2016 Subject: Investment Report for the Month of June 2016 Summary Attached is the Investment Report for the month of June 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 June 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 June 30, 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 June 30, 2016, was 1.188%. The yield to maturity of the portfolio was 1.193%. The District’s weighted average interest rate was 61 basis points (0.612%) above the LAIF average monthly rate for June 2016 of 0.576%. The weighted average number of days to maturity for the District’s total portfolio was 902 days (2.47 years). The average duration of the underlying securities in LAIF as of June 30, 2016 was 167 days. Board of Directors July 28, 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 June 30, 2016 was 38.00%. 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 June 30, 2016, the portfolio has earned a weighted average interest rate of 1.131%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 28, 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 June 30, 2016 ` Deposits Outstanding Bank Balance In Transits Checks Book Balance Active Accounts: Bank of America 325,284.39$ 37,587.87 (231,868.79) 131,003.47$ Total Active Accounts 325,284.39 37,587.87 (231,868.79) 131,003.47 Market Value Increase Decrease Cost Investments: Local Agency Investment Fund 3,519,030.75$ - - 3,519,030.75 Money Market/Sweep Account 2,130,800.24 - - 2,130,800.24 Negotiable Certificates of Deposit 2,913,614.45 29,711.95 - 2,883,902.50 Federal Agency Securities 10,500,538.30 19,250.05 - 10,481,288.25 Total Investments 19,063,983.74 48,962.00 - 19,015,021.74 Total Pooled Cash & Investments 19,389,268.13$ 86,549.87$ (231,868.79)$ 19,146,025.21$ Solid Waste Fund: Operating Reserve 1,720,000.00$ Unreserved: Designated for revenue dry period 2,450,000.00 Undesignated 1,400,346.63 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 (2,729,435.26) Facilities Revolving Fund 791,628.46 Asset Replacement Fund 1,057,038.97 Asset Management Fund 5,198,146.41 Total Pooled Cash & Investments 19,146,025.21$ 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 June 30, 2016 DateMarcus D. Davis Costa Mesa Sanitary District Pooled Cash and Investments by Fund June 30, 2016 7/19/16 1 Total investments outstanding as of May 31, 2016 19,761,521.74$ Additions: Investment purchases: FNMA, 6/30/16, 1.60%, 5 yr, callable 12/30/16 1,000,000.00 Total investment purchases 1,000,000.00 Deductions: Investments matured: None - Total investments matured - Investments called: FHLB, 3/27/13, 5 yr, 1.13%, 6/27/16 (1,000,000.00) FHLMC, 3/29/16, 3 yr, 1.40%, 6/29/16 (1,000,000.00) Total investments called (2,000,000.00) Total deductions (2,000,000.00) Net increase (decrease) in Sweep Account 503,500.00 Net increase (decrease) in LAIF (250,000.00) Total investments outstanding as of June 30, 2016 19,015,021.74$ 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 June 30, 2016 2 Interest CUSIP Purchase Maturity Coupon Investment Earned at Number Investment Date Date Rate Cost 06/30/16 n/a Local Agency Investment Fund n/a n/a 0.576%3,519,030.75$ n/a ** n/a Pershing-Sweep Acct n/a n/a 0.000%2,130,800.24 n/a 3136G1L31 Federal National Mortgage Assn 05/15/13 05/15/17 0.700%1,000,000.00 875.00 87165FAC8 Synchrony Bank Retail CTF Dep 06/06/14 06/06/19 2.000%99,500.00 120.55 06740KGY7 Barclays Bank Retail CTF Dep 07/02/14 07/05/16 0.650%99,825.00 320.55 795450VP7 Sallie Mae Bank CTF Dep 12/25/14 12/12/16 1.050%125,000.00 71.92 38148JGK1 Goldman Sachs Bank USA CTF Dep 01/07/15 01/07/19 1.900%200,000.00 1,821.92 02587DXL7 American Exp Centurion CTF Dep 05/01/15 05/01/17 0.900%199,700.00 300.82 140420SW1 Capital One Bank CTF Dep 07/01/15 07/01/19 1.950%245,000.00 2,369.12 254672QY7 Discover Bank CTF Dep 07/01/15 07/01/20 2.300%245,000.00 2,794.34 3130A5TW9 Federal Home Loan Bank 07/27/15 07/27/20 2.000%1,000,000.00 8,500.00 20451PMU7 Compass Bank CTF Dep 08/07/15 07/31/17 1.300%200,000.00 1,075.62 02006LTZ6 Ally Bank CTF Dep 09/17/15 09/17/18 1.650%245,000.00 1,162.91 3133EFJQ1 Federal Farm Credit Bank 10/15/15 10/15/19 1.440%1,000,000.00 3,000.00 3133EFKA4 Federal Farm Credit Bank 10/19/15 01/14/20 1.500%499,875.00 3,458.33 05580ADA9 BMW Bank CTF Dep 10/21/15 10/16/17 1.150%244,877.50 578.94 3136G2QA8 Federal National Mortgage Assn 10/27/15 10/27/20 1.470%250,000.00 643.13 3133EFMG9 Federal Farm Credit Bank 10/29/15 10/29/20 1.680%1,000,000.00 2,846.67 3133EFNM5 Federal Farm Credit Bank 11/09/15 11/09/20 1.800%500,000.00 1,275.00 3133EFPM3 Federal Farm Credit Bank 11/23/15 11/23/20 1.875%1,000,000.00 1,927.08 3136G2T72 Federal National Mortgage Assn 11/25/15 11/25/20 1.700%997,000.00 1,652.78 066519BB4 BankUnited CTF Dep 11/30/15 11/30/18 1.450%245,000.00 301.72 27113PAW1 East Boston Savings Bank CTF Dep 12/18/15 04/18/17 1.000%150,000.00 49.32 9497483K1 Wells Fargo CTF Dep 02/12/16 02/12/18 1.150%140,000.00 79.40 3134G8KL2 Federal Home Loan Mortgage Corp 02/26/16 02/26/19 1.300%300,000.00 1,343.33 48125YJ21 JP Morgan Chase Bank CTF Dep 03/22/16 03/22/18 1.000%200,000.00 43.84 3134G8VN6 Federal Home Loan Mortgage Corp 03/30/16 03/29/21 1.600%1,000,000.00 4,044.44 05581WEQ4 BMO Harris Bank CTF Dep 03/30/16 03/29/18 1.050%245,000.00 648.41 3130A7Q81 Federal Home Loan Bank 05/04/16 04/13/21 1.480%499,413.25 1,582.78 3134G9BP1 Federal Home Loan Mortgage Corp 05/12/16 05/12/21 1.750%435,000.00 1,015.00 3136G3UD5 Federal National Mortgage Assn 06/30/16 06/30/21 1.600%1,000,000.00 - Totals 19,015,021.74$ 43,902.92$ **Represents the LAIF monthly rate for June 2016 Comments COSTA MESA SANITARY DISTRICT Investment and Investment Earnings June 30, 2016 3 Current % of Market Value 06/30/16 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 7.88%Unlimited FHLMC 9.13%Unlimited FNMA 17.07%Unlimited FFCB 21.00%Unlimited Other *0.00%Unlimited Banker's Acceptances 0.00%25% (1) Certificates of Deposit 0.00%25% Negotiable Certificates of Deposits 15.28%25% (1) Commercial Paper 0.00%25% (1) Medium Term Corporate Notes 0.00%20% (1) LAIF (Local Agency Investment Fund)18.46%40,000,000 Shares of Benefical Interest 0.00%20% Money Market/Mutual Funds (Sweep Acct)11.18%10% per fund (2) Total 100.00% % of portfolio maturing under one year 38.00%no less than 20% % of portfolio maturing over one year 62.00% 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 June 30, 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 0.576%**3,519,030.75$ 3,519,030.75$ Total State Treasurer's Pool 3,519,030.75 18.51%3,519,030.75 18.46% Money Market/Sweep Account Pershing n/a Continuous 0.000%2,130,800.24 2,130,800.24 Total Money Market/Sweep Account 2,130,800.24 11.21%2,130,800.24 11.18% Federal Home Loan Mortgage Corp Multi-Bank Securities 02/26/16 02/26/19 1.300%300,000.00 300,243.00 Federal Home Loan Mortgage Corp Multi-Bank Securities 03/30/16 03/29/21 1.600%1,000,000.00 1,004,540.00 Federal Home Loan Mortgage Corp Multi-Bank Securities 05/12/16 05/12/21 1.750%435,000.00 435,165.30 Total Federal Home Loan Mortgage Corp 1,735,000.00 9.12%1,739,948.30 9.13% Federal Home Loan Bank Multi-Bank Securities 07/27/15 07/27/20 2.000%1,000,000.00 1,001,240.00 Federal Home Loan Bank Multi-Bank Securities 05/04/16 04/13/21 1.480%499,413.25 501,415.00 Total Federal Home Loan Bank 1,499,413.25 7.89%1,502,655.00 7.88% Federal National Mortgage Association Union Banc 05/15/13 05/15/17 0.700%1,000,000.00 1,000,270.00 Federal National Mortgage Association Multi-Bank Securities 10/27/15 10/20/15 1.470%250,000.00 250,305.00 Federal National Mortgage Association Multi-Bank Securities 11/25/15 11/25/20 1.700%997,000.00 1,003,390.00 Federal National Mortgage Association Multi-Bank Securities 06/30/16 06/30/21 1.600%1,000,000.00 999,910.00 Total Federal National Mortgage Association 3,247,000.00 17.08%3,253,875.00 17.07% Federal Farm Credit Bank Multi-Bank Securities 10/15/15 10/15/19 1.440%1,000,000.00 1,000,050.00 Federal Farm Credit Bank Multi-Bank Securities 10/19/15 01/14/20 1.500%499,875.00 500,020.00 Federal Farm Credit Bank Multi-Bank Securities 10/29/15 10/29/20 1.680%1,000,000.00 1,000,020.00 Federal Farm Credit Bank Multi-Bank Securities 11/09/15 11/09/20 1.800%500,000.00 500,780.00 Federal Farm Credit Bank Multi-Bank Securities 11/23/15 11/23/20 1.875%1,000,000.00 1,003,190.00 Total Federal Farm Credit Bank 3,999,875.00 21.04%4,004,060.00 21.00% Synchrony Bank Retail Certificate of Deposit Multi-Bank Securities 06/06/14 06/06/19 2.000%99,500.00 102,453.00 Barclays Bank Retail Certificate of Deposit Multi-Bank Securities 07/02/14 07/05/16 0.650%99,825.00 100,000.00 Sallie Mae Bank CTF Dep Multi-Bank Securities 12/25/14 12/12/16 1.050%125,000.00 125,211.25 Goldman Sachs Bk CTF Dep Multi-Bank Securities 01/07/15 01/07/19 1.900%200,000.00 202,934.00 American Exp Centurion CTF Dep Multi-Bank Securities 05/01/15 05/01/17 0.900%199,700.00 200,406.00 Capital One Bank CTF Dep Multi-Bank Securities 07/01/15 07/01/19 1.950%245,000.00 249,510.45 Discover Bank CTF Dep Multi-Bank Securities 07/01/15 07/01/20 2.300%245,000.00 252,078.05 Compass Bank CTF Dep Multi-Bank Securities 08/07/15 07/31/17 1.300%200,000.00 200,668.00 Ally Bank CTF Dep Multi-Bank Securities 09/17/15 09/17/18 1.650%245,000.00 248,439.80 BMW Bank CTF Dep Multi-Bank Securities 10/21/15 10/16/17 1.150%244,877.50 246,092.70 BankUnited CTF Dep Multi-Bank Securities 11/30/15 11/30/18 1.450%245,000.00 248,292.80 East Boston Savings Bank CTF Dep Multi-Bank Securities 12/18/15 04/18/17 1.000%150,000.00 150,175.50 Wells Fargo CTF Dep Multi-Bank Securities 02/12/16 02/12/18 1.150%140,000.00 140,813.40 JP Morgan Chase Bank CTF Dep Multi-Bank Securities 03/22/16 03/22/18 1.000%200,000.00 200,780.00 BMO Harris Bank CTF Dep Multi-Bank Securities 03/30/16 03/29/18 1.050%245,000.00 245,759.50 Total Negotiable Certificates of Deposit 2,883,902.50 15.17%2,913,614.45 15.28% Total Investments 19,015,021.74$ 100.00%19,063,983.74$ 100.00% **Represents the LAIF monthly rate for June 2016 COSTA MESA SANITARY DISTRICT Schedule of Investments by Instrument Type June 30, 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 0.576%**0.576%3,519,030.75$ Pershing-Sweep Acct Sweep 1 0.000%0.000%2,130,800.24 Multi-Bank Securities Negotiable CD 07/02/14 07/05/16 5 0.650%0.650%99,825.00 Multi-Bank Securities Negotiable CD 12/25/14 12/12/16 165 1.050%1.050%125,000.00 Multi-Bank Securities Negotiable CD 12/18/15 04/18/17 292 1.000%1.000%150,000.00 Multi-Bank Securities Negotiable CD 05/01/15 05/01/17 305 0.900%0.900%199,700.00 UnionBanc FNMA 05/15/13 05/15/17 319 0.700%0.700%1,000,000.00 Multi-Bank Securities Negotiable CD 08/07/15 07/31/17 396 1.300%1.300%200,000.00 Multi-Bank Securities Negotiable CD 10/21/15 10/16/17 473 1.150%1.176%244,877.50 Multi-Bank Securities Negotiable CD 02/12/16 02/12/18 592 1.150%1.150%140,000.00 Multi-Bank Securities Negotiable CD 03/22/16 03/22/18 630 1.000%1.000%200,000.00 Multi-Bank Securities Negotiable CD 03/30/16 03/29/18 637 1.050%1.050%245,000.00 Multi-Bank Securities Negotiable CD 09/17/15 09/17/18 809 1.650%1.650%245,000.00 Multi-Bank Securities Negotiable CD 11/30/15 11/30/18 883 1.450%1.450%245,000.00 Multi-Bank Securities Negotiable CD 01/07/15 01/07/19 921 1.900%1.900%200,000.00 Multi-Bank Securities FHLMC 02/26/16 02/26/19 971 1.300%1.300%300,000.00 Multi-Bank Securities Negotiable CD 06/06/14 06/06/19 1,071 2.000%2.106%99,500.00 Multi-Bank Securities Negotiable CD 07/01/15 07/01/19 1,096 1.950%1.950%245,000.00 Multi-Bank Securities FFCB 10/15/15 10/15/19 1,202 1.440%1.440%1,000,000.00 Multi-Bank Securities FFCB 10/19/15 01/14/20 1,293 1.500%1.506%499,875.00 Multi-Bank Securities Negotiable CD 07/01/15 07/01/20 1,462 2.300%2.300%245,000.00 Multi-Bank Securities FHLB 07/27/15 07/27/20 1,488 2.000%2.000%1,000,000.00 Multi-Bank Securities FNMA 10/27/15 10/27/20 1,580 1.470%1.470%250,000.00 Multi-Bank Securities FFCB 10/29/15 10/29/20 1,582 1.680%1.680%1,000,000.00 Multi-Bank Securities FFCB 11/09/15 11/09/20 1,593 1.800%1.800%500,000.00 Multi-Bank Securities FFCB 11/23/15 11/23/20 1,607 1.875%1.875%1,000,000.00 Multi-Bank Securities FNMA 11/25/15 11/25/20 1,609 1.700%1.763%997,000.00 Multi-Bank Securities FHLMC 03/30/16 03/29/21 1,733 1.600%1.600%1,000,000.00 Multi-Bank Securities FHLB 05/04/16 04/13/21 1,748 1.480%1.505%499,413.25 Multi-Bank Securities FHLMC 05/12/16 05/12/21 1,777 1.750%1.750%435,000.00 Multi-Bank Securities FNMA 06/30/16 06/30/21 1,826 1.600%1.600%1,000,000.00 Total Investment Portfolio 19,015,021.74$ Total Portfolio Weighted Avg Interest Rate 1.188 % Weighted Avg Yield to Maturity 1.193 % Weighted Avg Days to Maturity 902 Days 2.47 Years **Represents the LAIF monthly rate for June 2016 COSTA MESA SANITARY DISTRICT Investment Portfolio June 30, 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 3,519,030.75$ 0.576%**3,519,030.75 3,519,030.75 - - n/a Continuous Pershing Sweep 2,130,800.24 0.000%2,130,800.24 2,130,800.24 - - 05/15/13 05/15/17 UnionBanc FNMA 1,000,000.00 0.700%1,000,000.00 1,000,270.00 875.00 270.00 06/06/14 06/06/19 Multi-Bank Securities Negotiable CD 100,000.00 2.000%99,500.00 102,453.00 120.55 2,953.00 07/02/14 07/05/16 Multi-Bank Securities Negotiable CD 100,000.00 0.650%99,825.00 100,000.00 320.55 175.00 12/25/14 12/12/16 Multi-Bank Securities Negotiable CD 125,000.00 1.050%125,000.00 125,211.25 71.92 211.25 01/07/15 01/07/19 Multi-Bank Securities Negotiable CD 200,000.00 1.900%200,000.00 202,934.00 1,821.92 2,934.00 05/01/15 05/01/17 Multi-Bank Securities Negotiable CD 200,000.00 0.900%199,700.00 200,406.00 300.82 706.00 07/01/15 07/01/19 Multi-Bank Securities Negotiable CD 245,000.00 1.950%245,000.00 249,510.45 2,369.12 4,510.45 07/01/15 07/01/20 Multi-Bank Securities Negotiable CD 245,000.00 2.300%245,000.00 252,078.05 2,794.34 7,078.05 07/27/15 07/27/20 Multi-Bank Securities FHLB 1,000,000.00 2.000%1,000,000.00 1,001,240.00 8,500.00 1,240.00 08/07/15 07/31/17 Multi-Bank Securities Negotiable CD 200,000.00 1.300%200,000.00 200,668.00 1,075.62 668.00 09/17/15 09/17/18 Multi-Bank Securities Negotiable CD 245,000.00 1.650%245,000.00 248,439.80 1,162.91 3,439.80 10/15/15 10/19/15 Multi-Bank Securities FFCB 1,000,000.00 1.440%1,000,000.00 1,000,050.00 3,000.00 50.00 10/19/15 01/14/20 Multi-Bank Securities FFCB 500,000.00 1.500%499,875.00 500,020.00 3,458.33 145.00 10/21/15 10/16/17 Multi-Bank Securities Negotiable CD 245,000.00 1.150%244,877.50 246,092.70 578.94 1,215.20 10/27/15 10/27/20 Multi-Bank Securities FNMA 250,000.00 1.470%250,000.00 250,305.00 643.13 305.00 10/29/15 10/29/20 Multi-Bank Securities FFCB 1,000,000.00 1.680%1,000,000.00 1,000,020.00 2,846.67 20.00 11/09/15 11/09/20 Multi-Bank Securities FFCB 500,000.00 1.800%500,000.00 500,780.00 1,275.00 780.00 11/23/15 11/23/20 Multi-Bank Securities FFCB 1,000,000.00 1.875%1,000,000.00 1,003,190.00 1,927.08 3,190.00 11/25/15 11/25/20 Multi-Bank Securities FNMA 1,000,000.00 1.700%997,000.00 1,003,390.00 1,652.78 6,390.00 11/30/15 11/30/18 Multi-Bank Securities Negotiable CD 245,000.00 1.450%245,000.00 248,292.80 301.72 3,292.80 12/18/15 04/18/17 Multi-Bank Securities Negotiable CD 150,000.00 1.000%150,000.00 150,175.50 49.32 175.50 02/12/16 02/12/18 Multi-Bank Securities Negotiable CD 140,000.00 1.150%140,000.00 140,813.40 79.40 813.40 02/26/16 02/26/19 Multi-Bank Securities FHLMC 300,000.00 1.300%300,000.00 300,243.00 1,343.33 243.00 03/22/16 03/22/18 Multi-Bank Securities Negotiable CD 200,000.00 1.000%200,000.00 200,780.00 43.84 780.00 03/30/16 03/29/21 Multi-Bank Securities FHLMC 1,000,000.00 1.600%1,000,000.00 1,004,540.00 4,044.44 4,540.00 03/30/16 03/29/18 Multi-Bank Securities Negotiable CD 245,000.00 1.050%245,000.00 245,759.50 648.41 759.50 05/04/16 04/13/21 Multi-Bank Securities FHLB 500,000.00 1.480%499,413.25 501,415.00 1,582.78 2,001.75 05/12/16 05/12/21 Multi-Bank Securities FHLMC 435,000.00 1.750%435,000.00 435,165.30 1,015.00 165.30 06/30/16 06/30/21 Multi-Bank Securities FNMA 1,000,000.00 1.600%1,000,000.00 999,910.00 - Total Investments 19,019,830.99$ 19,015,021.74 19,063,983.74 43,902.92 49,052.00 **Represents the LAIF monthly rate for June 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 June 30, 2016 7 Type of Purchase Maturity Coupon Investment Investment Date Date Rate Par Value Cost 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 03/30/16 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 FNMA 06/30/16 06/30/21 1.600%1,000,000.00 1,000,000.00 Callable 12/30/16, one time only Totals 13,370,000.00$ 13,365,190.75$ COSTA MESA SANITARY DISTRICT Call Schedule June 30, 2016 Call Features 8 Cost 50,136.76 In Thousands 1 - 180 Days 5,875$ 181 - 365 Days 1,350 1 - 2 Years 1,030 ########## 6,562.50 2 - 3 Years 1,089 ##########3 - 4 Years 1,745 4 - 5 Years 7,926 TOTAL 19,015$ COSTA MESA SANITARY DISTRICT MATURITIES DISTRIBUTION June 30, 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 30.90% 7.10%5.42%5.73% 9.18% 41.68% 9 Costa Mesa Sanitary District Portfolio Interest Rate Information as of June 30, 2016 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 10 Costa Mesa Sanitary District ... an Independent Special District Resolution No. 2016-891 Nomination to Serve on the Executive Committee of the Independent Special District of Orange County (ISDOC) Item Number:22. Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2016-891 nominating President Scheafer to serve as President of the Executive Committee of ISDOC. ATTACHMENTS: Description Type Resolution No. 2016-891 Nomination to Serve on the Executive Committee of the Independent Special District of Orange County (ISDOC) Cover Memo RESOLUTION NO. 2016-891 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ENDORSING THE CANDIDACY AND RE-ELECTION OF MICHAEL SCHEAFER TO THE POSITION OF PRESIDENT OF THE EXECUTIVE COMMITTEE OF THE INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) WHEREAS, the Costa Mesa Sanitary District is a member Agency of the Independent Special Districts of Orange County (ISDOC); and, WHEREAS, ISDOC will formally elect the members of its Executive Committee to serve a two-year term (January 1, 2017 to December 31, 2018) at their Quarterly Meeting on September 29, 2016; and WHEREAS, a candidate for the Executive Committee must secure an official endorsement of candidacy in the form of a Board Resolution. NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District, DOES HEREBY RESOLVE to endorse the candidacy and re-election of Michael Scheafer to the position of President of the Executive Committee of the Independent Special Districts of Orange County. BE IT FURTHER RESOLVED, that the District Clerk is hereby directed to transmit a certified copy of this Resolution to ISDOC, forthwith. PASSED AND ADOPTED this 28th day of July, 2016. _________________________________ ________________________________ Secretary President 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. 2016-891, was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 28 day of July, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 28 day of July, 2016. _________________________________________ District Clerk of the Costa Mesa Sanitary District Costa Mesa Sanitary District ... an Independent Special District Resolution No. 2016-892 Nomination to Serve on the Executive Committee of the Independent Special District of Orange County (ISDOC) Item Number:23. Recommendation/Notes: Recommendation: That the Board of Directors adopt Resolution No. 2016- 892 nominating Assistant Secretary Schafer to serve as Vice President of the Executive Committee of ISDOC. ATTACHMENTS: Description Type Resolution No. 2016-892 Nomination to Serve on the Executive Committee of the Independent Special District of Orange County (ISDOC) Cover Memo RESOLUTION NO. 2016-892 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ENDORSING THE CANDIDACY OF ARLENE SCHAFER TO THE POSITION OF VICE PRESIDENT OF THE EXECUTIVE COMMITTEE OF THE INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) WHEREAS, the Costa Mesa Sanitary District is a member Agency of the Independent Special Districts of Orange County (ISDOC); and WHEREAS, ISDOC will formally elect the members of its Executive Committee to serve a two-year term (January 1, 2017 to December 31, 2018) at their Quarterly Meeting on September 29, 2016; and WHEREAS, a candidate for the Executive Committee must secure an official endorsement of candidacy in the form of a Board Resolution. NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District, DOES HEREBY RESOLVE to endorse the candidacy of Arlene Schafer to the position of Vice President of the Executive Committee of the Independent Special Districts of Orange County. BE IT FURTHER RESOLVED, that the District Clerk is hereby directed to transmit a certified copy of this Resolution to ISDOC, forthwith. PASSED AND ADOPTED this 28th day of July, 2016. _________________________________ ________________________________ Secretary President 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. 2016-892, was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 28 day of July, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 28 day of July, 2016. _________________________________________ District Clerk of the Costa Mesa Sanitary District Costa Mesa Sanitary District ... an Independent Special District Mesa Water District Special Districts Shared Efficiencies Study Item Number:24. Recommendation/Notes: Recommendation: That the Board of Directors discuss the study and provide direction to staff. ATTACHMENTS: Description Type Mesa Water District Special Districts Shared Efficiencies Study Cover Memo OPTIMAL GOVERNANCE STRUCTURE STUDY OF COSTA MESA SANITARY DISTRICT AND MESA WATER DISTRICT JULY 2016 COSTA MESA SANITARY DISTRICT AND MESA WATER DISTRICT Optimal Governance Structure Study Prepared for: Mesa Water District Prepared by: Arcadis U.S., Inc. Date: July 20, 2016 i CONTENTS Acronyms and Abbreviations ........................................................................................................................ iv Executive summary ....................................................................................................................................... 1 1 Introduction ............................................................................................................................................. 3 1.1 Objective ......................................................................................................................................... 3 1.2 Sources ........................................................................................................................................... 3 1.2.1 Costa Mesa Sanitary District ............................................................................................... 4 1.2.2 Mesa Water District ............................................................................................................. 4 1.3 Approach ......................................................................................................................................... 4 2 Organization/Staffing .............................................................................................................................. 6 2.1 CMSD Current Organization ........................................................................................................... 6 2.1.1 Governance ......................................................................................................................... 6 2.1.2 Organization Structure ........................................................................................................ 6 2.1.3 Operations ........................................................................................................................... 8 2.1.4 Maintenance ........................................................................................................................ 8 2.1.5 Asset Replacement Plan/CIP .............................................................................................. 8 2.2 Mesa Water Current Organization ................................................................................................ 10 2.2.1 Governance ....................................................................................................................... 10 2.2.2 Organization Structure ...................................................................................................... 10 2.2.3 Operations ......................................................................................................................... 12 2.2.4 Maintenance ...................................................................................................................... 12 2.2.5 Asset Replacement Plan/CIP ............................................................................................ 12 2.3 Proposed Organization/Staffing for Combined Agency ................................................................ 13 2.3.1 Customers/Service Area ................................................................................................... 13 2.3.2 Combined Organizational Structure .................................................................................. 15 3 Real Estate/Maintenance ...................................................................................................................... 20 3.1 CMSD Facilities ............................................................................................................................ 20 3.2 Mesa Water Facilities.................................................................................................................... 22 3.3 Proposed Properties for Combined Agency ................................................................................. 22 4 Financial Management and Reserves .................................................................................................. 24 ii 4.1 Overview of CMSD’s Existing Financial Position .......................................................................... 24 4.2 Overview of Mesa Water’s Existing Financial Position ................................................................. 25 4.3 Combined Agency Financial Review ............................................................................................ 26 4.3.1 Financial Metrics ................................................................................................................ 26 4.3.2 Combined Agency Available Cash .................................................................................... 27 4.3.2.1 One-Time Savings ................................................................................................... 27 4.3.2.2 Annual Savings ........................................................................................................ 28 4.4 Total Financial Management Savings ........................................................................................... 29 5 Optimization Opportunities .................................................................................................................... 30 5.1 CMSD Contracting Opportunities ................................................................................................. 30 5.1.1 Wastewater System Cleaning ........................................................................................... 30 5.1.2 Contracting Assumptions and Analysis ............................................................................. 30 5.2 Mesa Water Optimization Opportunities ....................................................................................... 33 5.3 Summary of Total Savings from Optimization Opportunities ........................................................ 33 6 Additional Qualitative Benefits .............................................................................................................. 34 6.1 Potential Synergies ....................................................................................................................... 34 6.1.1 Vision/Mission/Values ....................................................................................................... 35 6.1.2 Staffing/Cross-Training ...................................................................................................... 3 5 6.1.3 Institutional ........................................................................................................................ 35 7 Summary and Next Steps ..................................................................................................................... 36 7.1 Next Steps .................................................................................................................................... 37 References .................................................................................................................................................. 38 iii TABLES Table 1. Summary of Estimated Annual Net Cost/Savings under Combined Agency Operations1 .............. 2 Table 2. Summary of the CIP included in the 2016 SSMP ........................................................................... 9 Table 3. Mesa Water CIP Projects .............................................................................................................. 13 Table 4. Summary of Combined Roles ....................................................................................................... 17 Table 5. Total One-Time and Annual Organizational Savings by Fund and District ................................... 19 Table 6. Total One-Time and Annual Real Estate Savings by Fund and Agency ...................................... 23 Table 7. CMSD Summarized Financials ..................................................................................................... 24 Table 8. Mesa Water’s Existing Summarized Financials ............................................................................ 25 Table 9. Combined Agency Financial Snapshot ......................................................................................... 26 Table 10. Targeted Financial Metric ............................................................................................................ 27 Table 11. One-Time Savings ....................................................................................................................... 27 Table 12. Annual Savings ............................................................................................................................ 28 Table 13. Total One-Time and Annual Financial Savings by Fund and Agency ......................................... 29 Table 14. Summary of Wastewater Contracted Cleaning Analysis............................................................. 32 Table 15. Total Annual Financial Savings by Fund and Agency ................................................................. 33 Table 16. Summary of Estimated Annual Net Cost/Savings under Combined Agency Operations1 .......... 36 FIGURES Figure 1. Costa Mesa Sanitary District FY2015-16 and FY2016-17 Organization Chart ............................. 7 Figure 2. Mesa Water FY2016 Organization Chart ..................................................................................... 11 Figure 3. Costa Mesa Sanitary District Service Area and Mesa Water District Service Area ..................... 14 Figure 4. Combined Agency Potential Organization Structure .................................................................... 18 Figure 5. CMSD SSO per 100 Sewer Miles Annual Reporting ................................................................... 31 APPENDICES A Real Estate iv ACRONYMS AND ABBREVIATIONS AGM Assistant General Manager CIP capital improvement plan CMSD Costa Mesa Sanitary District CSDA California Special Districts Association FOG Fats, Oils & Grease FTE Full Time Equivalent FY Fiscal Year GAP Green Acres Project GFOA Government Finance Officers Association LAFCO Local Agency Formation Commission LF linear feet LoS Level of Service Mesa Water Mesa Water District MG Million Gallons MWDOC Municipal Water District of Orange County MWRF Mesa Water Reliability Facility n/a Not Applicable NPS National Plant Services OCSD Orange County Sanitation District OCWD Orange County Water District O&M operation & maintenance RNG Renewable Natural Gas SDLF Special Districts Leadership Foundation SF Square Foot SSMP Sewer System Management Plan SSOs Sewer System Overflows SW Solid Waste WDR Water Discharge Requirements WW Wastewater 1 EXECUTIVE SUMMARY In order to explore opportunities to improve local government efficiency, reduce administrative redundancy and associated costs, and improve responsiveness, affordability and customer service, the Mesa Water District (Mesa Water) engaged Arcadis U.S., Inc. to analyze the potential combination of Mesa Water with the Costa Mesa Sanitary District (CMSD). Mesa Water and CMSD are both local independent special districts with independently elected Boards, serve primarily the same customers in the City of Costa Mesa, California, and the surrounding unincorporated areas of Orange County, and provide complementary water and wastewater services. CMSD also provides solid waste collection services. This Study evaluates at a high level the feasibility of combining CMSD and Mesa Water in order to capitalize on opportunities arising from economies of scale and operational synergies. The primary benefit from combination is the potential for significant up-front and annual cost savings, through various rate mechanisms, which could be passed on directly to customers through lower rates, rebates or stabilization of rates or reduction in future rate increase requirements. For example, the wastewater fund annual savings of $1.7 million represents over 28 percent of the annual revenue requirements of that fund and could be used to lower wastewater fees by 28 percent or offset future rate increases. The one time savings of $15.6 million of the combined wastewater, solid waste and water funds is equivalent to approximately $650 per customer for those residents who receive wastewater, solid waste and water services (assuming approximately 24,000 customers per fund), can be used to provide a one-time rebate or used to cash fund capital improvements to reduce debt and future rate increases. Further, the combined agency also offers potential for increased flexibility, transparency and improved customer service. Impacts of the combining include costs and complications arising from developing and gaining approval for the proposed combined entity, including organizational structure and governance, union negotiations, and asset transfers. Prior to proceeding, should CMSD and Mesa Water agree to move forward with a potential combined agency, both districts should engage appropriate legal, technical, and financial counsel. Transaction documents will be required; along with coordination with appropriate commissions, financial institutions, and regulatory agencies; and development of new by-laws and governance with appropriate regional representation. 2 Table 1 displays the estimated cost savings of the potential combined agency with approximately $15.6 million in projected up-front savings, and approximately $2.7 million in annual savings. Despite the duplication of certain jobs, it is expected that layoffs can be avoided through natural attrition/retirements. Table 1. Summary of Estimated Annual Net Cost/Savings under Combined Agency Operations1 Item Description Wastewater Solid Waste Water Total One-Time Cost Savings Combining Organizations2 ($200,000) ($200,000) ($200,000) ($600,000) Real Estate3 $1,300,000 $1,300,000 $0 $2,600,000 Financial Management4 $9,730,000 $2,860,000 $1,060,000 $13,650,000* Operations Optimization5 $0 $0 $0 $0 Subtotal One-Time Cost Savings $10,830,000 $3,9,60,000 $860,000 $15,650,000 Annual Cost Savings Organizational Optimization2 $367,000 $367,000 $366,000 $1,100,000 Real Estate3 $7,000 $7,000 $36,000 $50,000 Financial Management4 $1,040,000 $0 $0 $1,040,000* Operations Optimization5 $289,000 $0 $250,000 $539,000* Subtotal Annual Cost Savings $1,703,000 $374,000 $652,000 $2,729,000 Note, these savings, while best accomplished through the process of reorganizing and combining the two agencies, can be substantially achieved independently. 1 Amounts shown are rounded to the nearest $1,000. 2 Refer to Section 2 3 Refer to Section 3 4 Refer to Section 4 5 Refer to Section 5 3 1 INTRODUCTION This study focuses on evaluating the feasibility of combining CMSD and Mesa Water, including evaluation of organizational structure, real estate, contracts and the cost and benefits thereof. A high-level description of the current context of CMSD and Mesa Water governance, services, service area, staff organization and finances provides the basis for the evaluation. In general, combining agencies provides opportunity to capitalize on economies of scale and reduce operations, maintenance and capital costs while enhancing environmental performance, thereby saving customers money while at the same time improving service delivery. Key determining factors to success, include transparency, governance, labor agreements, public support and other legal issues that affect the organizations, as well as technical and financial analyses. Arcadis U.S., Inc. was competitively selected by Mesa Water to assess the potential savings to customers of a combined agency. Arcadis is an international leader in the fields of infrastructure, environment, and water. Dedicated to enhancing mobility, sustainability, and quality of life, the firm’s multidisciplinary staff provides consultancy, design, engineering, and management services to public and private clients across the U.S. and around the globe. For over 100 years, Arcadis has been designing the human habitat, setting industry standards with patented technologies and published works. Arcadis has access to approximately 22,000 engineers, scientists, planners, management consultants, and support staff worldwide. Currently the combined organization is working on environmental and infrastructure projects in more than 70 countries. 1.1 Objective The objectives of this preliminary study include the following for both CMSD and Mesa Water:  Evaluate governance and staffing,  Conduct a financial evaluation of the agencies’ revenues and expenses,  Identify cost savings at all levels,  Evaluate the feasibility of a combined agency, and  Identify the benefits of a combined agency to the community. 1.2 Sources The study used publicly available documents from CMSD and Mesa Water, which are listed in the References section at the end of this Study. 4 1.2.1 Costa Mesa Sanitary District The mission of CMSD is to “protect our community's health and the environment by providing solid waste and wastewater collection services.”1 CMSD was formed in 1944 under the Sanitary District Act of 1923 and governed by an elected district-wide (at large) five-member Board of Directors. The CMSD boundaries encompass all of the City of Costa Mesa and portions of the City of Newport Beach and unincorporated areas of Orange County with a population of approximately 116,700 including public, commercial, industrial and retail users. CMSD has received several awards, most notably the District of Distinction Accreditation by the Special Districts Leadership Foundation (SDLF), known to be one of the most prestigious local government awards in the State of California. CMSD has received the SDLF District Transparency Certificate of Excellence and was recently named Collection System of the Year for 2015. 1.2.2 Mesa Water District The mission of Mesa Water is “dedicated to satisfying our community’s water needs.”2 Founded on January 1, 1960, and governed by a publicly-elected five-member Board of Directors, Mesa Water is an AAA-rated independent special district that provides water service to 108,000 residents in an 18-square- mile area. Mesa Water serves most of Costa Mesa, parts of Newport Beach, and some unincorporated areas of Orange County including John Wayne Airport. Mesa Water has received similar awards, most notably the District of Distinction Accreditation by the SDLF. Mesa Water also received the District Transparency Certificate of Excellence from the SDLF. For the past 21 consecutive years, Mesa Water received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). 1.3 Approach In assessing the potential cost and benefits of a combined organizational structure, the objective is to achieve the technical and financial goals for a combined agency, including a AAA rating and same or better levels of service and customer satisfaction. The approach used to develop a potential optimized organizational structure for a combined agency is based on conducting an analysis of the current organizational structure, job descriptions, budget documents and operational and maintenance performance of each of the agencies, then establishing a proposed organizational structure that is most technically and economically feasible for the combined agency. Below are the assumptions upon which this high-level Study is based.  The agencies’ FY2015 Audited Financial Statements, existing FY2016 budgets, and proposed five- year capital plans are used as the basis for the cost projections.  The combined agency will retain a strong financial position indicative of AAA standards. 1 The above is from CMSDs website http://www.cmsdca.gov/index.php/about-us. 2 The above is from Mesa Water’s 2016 Strategic Plan. 5  CMSD opportunities are based on historic pricing provided by contractors as detailed in Board memos and Contracts.  Mesa Water opportunities are based on Mesa Water’s strategic plan.  Real estate values are based on Voit Real Estate Services Brokers’ Opinions of Value.  The organizational savings through elimination of duplicative staffing is based on an average of the salaries and benefits of the two roles from each organization.  The expense savings are based on a review of the FY2016 budgeted expenditure levels and an estimate of the savings that could be achieved through elimination of duplicative services and improved economies of scale.  The cost of implementing the combined agency is based on an estimated budget for an outside service to facilitate a transition, assuming all stakeholders are in support of the transaction. The following analysis estimates savings anticipated from an optimized combined agency. Actual savings to be realized depends on a number of actions and conditions that cannot be predicted at this time and could be less than or greater than the estimate in this Study. No assurance is given that results forecasted herein will be achieved. 6 2 ORGANIZATION/STAFFING 2.1 CMSD Current Organization CMSD provides wastewater collection and transmission services to its customers. Collected wastewater is transmitted to the Orange County Sanitation District (OCSD) wastewater treatment facilities for treatment and disposal. CMSD is also responsible for residential trash collection and recycling services. Wastewater and solid waste collection fees are collected on the property tax bill as special assessments imposed on the users of the service. The County of Orange collects the special assessments on behalf of CMSD and remits 100 percent for deposit to CMSD accounts. CMSD maintains separate accounts for wastewater and solid waste. The accounts are presented as enterprise funds and managed in a manner similar to private business enterprises, where the intent of the governing body is that costs of providing goods or services to the general public be financed or recovered primarily through user charges for those services. 2.1.1 Governance CMSD is a California Special District established in February 1944. CMSD is a public agency and is governed by a five-member Board of Directors, with each Director elected to a four-year term. Board members are elected District-wide (at large). 2.1.2 Organization Structure CMSD uses a combination of in-house staff and private contractors to provide wastewater collection/transmission and trash collection/recycling services. Nineteen positions (17.5 full-time equivalent employees) and various contractors operate CMSD’s office, yard, sewer system and trash collection system. Figure 1 provides CMSD’s current organization chart. CMSD contracts trash and recyclables collection and hauling and appointed services including an Attorney, Treasurer, Engineer, and Inspector. The appointed services contracted out are depicted in light green in Figure 1. CMSD uses a combination of internal and contracted services to maintain their quality and level of service. 7 Figure 1. Costa Mesa Sanitary District FY2015-16 and FY2016-17 Organization Chart Costa Mesa Sanitary District FY2015-16 and FY2016-17 Organization Chart 8 2.1.3 Operations CMSD is responsible for maintaining 224.2 miles of sewer mainline and 20 pump stations that transports 10.1 million gallons per day to treatment facilities for 116,700 residents residing in Costa Mesa, Newport Beach, and unincorporated Orange County. The maintenance standards utilized for CMSD’s mainline and 20 pump stations help protect waterways and beaches from being contaminated by untreated sewage. In addition to sewer service, CMSD also provides curb-side refuse and recycling collection services to over 21,500 households. CMSD has met the State mandate of diverting more than 50 percent of the community’s refuse away from landfills and continues to strive to increase diversion rates for a cleaner and healthier environment with the implementation of an organic recycling program. The program is the first of its kind in Southern California where residential food scraps and green waste are recycled into Renewable Natural Gas (RNG). The methods of recycling allow residents to place all their trash in standardized containers. The trash is taken to a recycling facility in Stanton where it is mechanically and hand sorted, and the recyclables are removed. CMSD reached 50 percent diversion prior to the year 2000 and is in full compliance with all State mandates.3 In addition to organics recycling, CMSD offers many other recycling programs for children and adults such as the alkaline battery recycling program, safe disposal of hypodermic needles, composting and vermicomposting programs, household hazardous waste collections, waste-free lunches, large items and e-waste collections. 2.1.4 Maintenance CMSD maintains 224 miles of mainlines, 4,707 manholes, 24,870 service laterals, and 20 pump stations. CMSD has a maintenance goal of cleaning and performing video inspection of its 224 miles of collection system annually. Pump station maintenance is performed with CMSD staff. The results of the video inspections are used to define future repairs and capital improvement projects. These maintenance services have been performed using a combination of in-house staff and contract support services. Refer to Section 5.1 for a more detailed contract support services analysis. 2.1.5 Asset Replacement Plan/CIP CMSD has developed a comprehensive Sewer System Master Plan (SSMP), approved by the CMSD Board on December 17, 2015. The SSMP identifies key components of CMSD’s asset replacement plan and provides a five-year capital improvement plan (CIP) that covers the period of fiscal year (FY) 2016 through FY 2020. CMSD anticipates funding the CIP through its asset management fund. Table 2 provides a summary of the proposed CIP included in the SSMP. It is our understanding, however, that the $7.0 million pump station abandonment project will no longer be undertaken within the next 5 years, if at all. As such, it is assumed that the revised total five-year capital investment will be reduced to $6.3 million versus $13.3 million, as noted in Table 2. CMSD’s asset management fund maintains a minimum wastewater fund balance of $5.0 million. CMSD transfers funds from the operating budget or excess cash reserves to the asset management fund for payment of the improvements. 3 The above is from CMSD’s Green Guide Report, Cmsd_greed_guide_final.pdf 9 Table 2. Summary of the CIP included in the 2016 SSMP Note: It is our understanding that since the publication of the 2015 SSMP, Item 1 (West Side PS Abandonment Project) has been eliminated from the CIP. As such, the revised subtotal CIP for 2016-2020 is anticipated to be $6.3 million (vs. $13.3 million). CMSD has taken a proactive approach in developing an SSMP that has defined its five-year CIP. It is unclear if CMSD has a long-term (i.e., 100-year) asset replacement plan. Wastewater collection systems are typically comprised of vitrified clay pipe (VCP) infrastructure that has a much greater useful life (i.e., 120 years) when compared to standard water industry infrastructure of 60 to 80 years. There are wastewater collection systems throughout the U.S. that have provided over 120 years of service. Given CMSD’s relatively young age (less than 60 years), the long-term service life of VCP, and CMSD’s proactive annual video inspection and wastewater collection system maintenance, it appears that a long- term replacement of assets is not presently necessary for a long-term planning horizon. 1 2 3 4 5 2016 2017 2018 2019 2020 1. West Side PS Abandonment $7,016,363 $7,016,363 2019 2. Indus Gravity Pipeline Relining $353,000 $353,000 2016 3. Harbor & South Coast Plaza FMU $159,852 $800,000 $959,852 2016‐2017 4. Generator @ 23rd St PS $300,000 $46,000 $346,000 2016‐2018 5. Elden PS Pipeline and Valve Replacement $500,000 $25,000 $525,000 2016‐2019 6. Aviemore PS Upgrade $100,000 $100,000 2016 7. Victoria FM Upgrade $100,000 $200,000 $300,000 2017‐2018 8. WW Pipeline Rehab (Grade 5)$500,000 $500,000 $1,000,000 2017‐2018 9. Gister FM Upgrade $520,000 $520,000 2018‐2019 10. Elden FM Upgrade $500,000 $500,000 2018‐2019 11. IOWA FM Upgrade $100,000 $100,000 2019‐2020 12. WW Pipeline Rehab (Grade 5)$500,000 $500,000 2019‐2020 13. Rehan Brik MHs $500,000 $500,000 2019‐2020 14. 21st FM Upgrade $200,000 $200,000 2020‐2021 15. Other, Including Solid Waste $374,148 $374,148 2016 $1,787,000 $1,471,000 $1,720,000 $7,016,363 $1,300,000 $13,294,363 Description Sub Total Year Total 10 2.2 Mesa Water Current Organization Mesa Water was formed in 1960 by combining the City of Costa Mesa Water Department, Fairview County Water District, Newport Mesa Irrigation District, and Newport Mesa County Water District. Mesa Water receives no property tax revenue and currently over 90 percent of its income comes from water rates (including water meter charges) to customers. 2.2.1 Governance A five-member Board of Directors governs Mesa Water. The service area is divided into five geographic divisions of approximately equal population. One individual from each division is elected by the voting public to serve alternating four-year terms on the Board. The Mesa Water Board of Directors is responsible for establishing policies and elects one of its members to serve as President and another to serve as Vice President. Mesa Water represents a specific geographic area, collects no tax revenues, is not subject to the State's Public Utility Commission, and is not part of any city or the government of the County of Orange. 2.2.2 Organization Structure Mesa Water currently employs 57.5 full-time equivalent employees with water operations, customer service and engineering services largely provided under one dedicated assistant general manager (AGM) and financial, legal, administrative and public affairs services provided under another dedicated AGM, as shown in Figure 2. 11 Figure 2. Mesa Water FY2016 Organization Chart Mesa Water District FY2016 Organization Chart 12 2.2.3 Operations Mesa Water provides water service to approximately 110,000 customers through approximately 23,760 total metered service connections, of which 699 are fireline services. The service area is an 18-square- mile area that includes most of the city of Costa Mesa, portions of the city of Newport Beach, and a small portion of unincorporated Orange County. Mesa Water shares borders with Orange County and the cities of Huntington Beach, Fountain Valley, Irvine, Santa Ana, and Newport Beach. Mesa Water supplies its water demands from a mix of groundwater from the Orange County Groundwater Basin, imported water when needed from the Municipal Water District of Orange County (MWDOC) and recycled water provided by the Orange County Water District (OCWD) via the Green Acres Project (GAP). Mesa Water predominately uses local groundwater, recycled water, and conservation to meet 100 percent of its demands. Mesa Water operates seven groundwater wells and treats water at its groundwater treatment plant called the Mesa Water Reliability Facility (MWRF) before being pumped into the distribution system. Mesa Water has about 317 miles of pipelines to distribute the water and two reservoirs with pump stations for operational and emergency storage with a total storage capacity of 28 million gallons (MG). Mesa Water has two metered interconnections with the City of Huntington Beach and the Irvine Ranch Water District (IRWD) along with 15 emergency interconnections with the City of Santa Ana, the City of Newport Beach, and IRWD. 2.2.4 Maintenance Mesa Water maintains 317 miles of mainlines, 5,139 mainline valves, 3,383 fire hydrants, 2 booster pump stations, 2 storage reservoirs, and 7 groundwater wells. Mesa Water’s goal is to maintain its fire hydrants annually and mainline valves on a bi-annual basis. Distribution facility maintenance is performed with Mesa Water in-house staff. Production facilities maintenance (i.e., Pump stations, reservoirs, and groundwater wells) is performed with a combination of contract support services and in-house Mesa Water staff. Mesa Water routinely evaluates in-house maintenance performance costs with contract support services costs. 2.2.5 Asset Replacement Plan/CIP The Mesa Water five-year Capital Improvement Plan (CIP) covers the period of FY2016 through FY2020. The plan anticipates $40.0 million of capital improvements including most notably $27.9 million for Distribution System improvements. The FY 2016 budget contains $1.1 million for Operations Routine Capital, $1.0 million for well rehabilitation and automation design, $700,000 for the IT Master Plan, $516,000 for Operations Capital, $440,000 for Pipeline Integrity Testing Program, $430,000 for OC-44 pipeline improvements, $345,000 for MWRF Parking Project, and $289,000 for MWRF improvements, along with other miscellaneous improvement projects. As shown, Table 3 summarizes the proposed CIP projects included in the Water Master Plan. 13 Table 3. Mesa Water CIP Projects Mesa Water has taken a proactive approach in strategically managing its long-term (i.e., 100-year) infrastructure replacement needs through its Pipeline Integrity Testing Program. Complete replacement of Mesa Water’s infrastructure over a 100-year timeframe is estimated to cost approximately $560 million (2013 dollars). With the average useful life of a water main ranging between 65 and 85 years, the Pipeline Integrity Testing Program uses a combination of non-destructive and destructive testing to maximize the service life of each pipeline asset. This strategic approach will allow Mesa Water to recognize several millions of dollars of savings in extended useful infrastructure life. 2.3 Proposed Organization/Staffing for Combined Agency 2.3.1 Customers/Service Area In Figure 3, CMSD (illustrated by a green bold boundary) has a very similar service area as Mesa Water (illustrated by the blue shading). CMSD’s service area includes the entire City of Costa Mesa, portions of the City of Newport Beach and the unincorporated territory of Orange County. Whereas, Mesa Water’s service area is located within Orange County, sharing borders with the cities of Huntington Beach, Fountain Valley, Irvine, Santa Ana, and Newport Beach. The overlap in service area lends itself to efficiencies in providing services to residents. The assumption would be that the combined agency would continue with the same service areas, as the water and sewer services have separate enterprise funds, providing no issue of the non-overlapping service area. Description FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Sub Total Operations Routine Capital $1,098,187 $1,098,187 Well Rehabilitation $1,014,500 $3,055,000 $3,055,000 $7,124,500 IT Master Plan $700,000 $700,000 Operations Capital $516,100 $516,100 Pipeline Integrity Testing Program $439,500 $439,500 OC‐44 Pipeline Improvements $429,500 $429,500 MWRF Parking Project $344,500 $344,500 MWRF Improvements $289,000 $85,000 $374,000 Distribution Systems Improvements $1,000,000 $3,165,500 $3,165,500 $10,314,500 $10,314,500 $27,960,000 Miscellaneous $735,500 $735,500 $1,471,000 Reservoir $5,000 $5,000 BPS $103,500 $103,500 $207,000 Total $5,831,287 $7,149,500 $7,059,500 $10,314,500 $10,314,500 $40,669,287 14 Figure 3. Costa Mesa Sanitary District Service Area and Mesa Water District Service Area 15 2.3.2 Combined Organizational Structure The potential savings opportunity for a combined organization can be realized using economies of scale and streamlining the personnel functions across the organizations. Both agencies cover similar physical areas as previously shown in Figure 4, with offices in close proximity. After reviewing CMSD’s and Mesa Water’s budget documents, job descriptions, organizational charts, and other relevant information, select functions are combined with economies of scale resulting in cost savings related to labor and benefits for the combined agency. The following summarizes the review of the duplicative functions provided by the two agencies. Note names of roles are provided with a “/” to indicate the names of roles at “Mesa Water/CMSD.”  General Manager – only one General Manager is required.  Board Members – only one 5-member Board with combined functions is required in a combined agency given all Board members are both CMSD and Mesa Water customers.  Chief Financial Officer (CFO)/Finance Manager – only one is required in a combined agency.  Controller/Senior Accountant – only one is required in a combined agency.  Accounting Technician II/ Part-time Accounting Clerk – part-time services will not be required in a combined organization. Instead, a full-time Accounting Technician I to support the above combined finance department is added.  Office Assistant/Admin Assistant 1 – only one is required in a combined agency. This position would report to the Senior Human Resources Analyst (currently 1.75 full-time employee [FTE] at Mesa Water). In addition, it is suggested having two FTEs is more beneficial than a 1.75 employee from a productive and performance standpoint and thus being able to adequately handle the combined agency Human Resources requirements as well. Therefore the part-time (0.75 FTE) position will be replaced by a full-time position (1 FTE).  AGM Sanitary Operations – this position is created in the combined agency to manage and oversee all Wastewater and Solid Waste Operations and will combine many of the responsibilities previously provided by the CMSD’s General Manager. It is assumed that the AGM of Sanitary Operations earns a similar salary and benefit as the AGM of Water Operations.  AGM Water Operations and Combined Engineering – this position is the same position Mesa Water has currently titled AGM who oversees Customer Service, Engineering and Operations. The responsibilities of this role would not change; however, the organization of the employees would change slightly by including a Combined Engineering group with engineers serving both water and wastewater as well as the addition of IT services.  CMSD Executive Assistant/District Clerk – this position would be fulfilled by the AGM Administrative Services.  CMSD Management Analyst II – this position is eliminated and a new position titled Solid Waste Supervisor is added in a combined agency. The responsibilities of a Solid Waste Supervisor include all of the responsibilities of a CMSD Management Analyst II, plus the added responsibility of oversight of the Solid Waste operations and staff. 16  CMSD Appointed District Engineer – this position is not required as it is a contracted position and the Combined Engineering Services under the AGM Water Operations and Combined Engineering can oversee the work of the Appointed District Engineer.  CMSD Inspector – CMSD identifies this as a contracted position, where the Inspector currently reporting to CMSD’s Appointed District Engineer. Because of the cost of contracted services, an Inspector role is hired in the combined agency and reports to the AGM Water Operations and Combined Engineering at an equivalent cost.  Appointed District Treasurer – CMSD identifies this as a contracted position, whereas Mesa Water’s CFO is the appointed treasurer. Therefore, it is not identified as a position on the organizational chart. Treasury services in the combined organization is under the CFO/Finance Manager position.  Appointed District Counsel – Both agencies contract for legal counsel services. For the combined agency, these services are combined into one professional services contract. Therefore, it is not identified as a position on the organizational chart. A potential combined organizational chart is shown in Figure 4. The grey colored positions indicate the integration of common administrative services. CMSD Wastewater Operations are presented in green, CMSD Solid Waste Operations are presented in orange, Mesa Water Operations positions are presented in blue, and Common Engineering positions are presented in gold. Note the combined agency organization chart presented in Figure 4 assumes wastewater system cleaning services remain in house; refer to Section 5.1 for potential savings from contracting wastewater system cleaning services. The total FTEs for the combined agency is 71 (not including Board members), with approximately 30 percent of the staff associated with common administrative services and 70 percent with water, wastewater and solid waste operations. In sum, there is a net anticipated decrease of four FTEs (not including Board members) under the combined agency organizational chart presented in Figure 4 and summarized in Table 4. Furthermore, it is assumed that instead of having two separate 5-member Boards, only one 5-member Board is required. This reduction in duplicate services and increased economies of scale provides a potential savings of $900,000 in Administrative / Management staff salaries and benefits. 17 Table 4. Summary of Combined Roles Organizational Changes Existing Roles Combined Roles Mesa Water Role CMSD Role Combined Roles Chief Financial Officer Finance Manager Chief Financial Officer / Finance Manager Controller Senior Accountant Controller / Senior Accountant Accounting Technician II Accounting Clerk (PT) Accounting Technician II / Accounting Clerk (PT) Department Assistant Administrative Assistant I Department Assistant / Administrative Assistant I Eliminated Roles1 Board of Directors (5) Board of Directors (5) Board of Directors (5) General Manager General Manager General Manager n/a WW Maintenance Superintendent n/a n/a Management Analyst II n/a Executive Assistant District Clerk n/a Office Assistant (PT) Admin Assistant 1 n/a Renamed Roles AGM n/a AGM Water Operations & Combined Engineering AGM n/a AGM Administrative Services New Roles n/a n/a AGM Sanitary Operations Inspector n/a Inspector Office Assistant (PT) Admin Assistant 1 Office Assistant/Admin Assistant 1 Board of Directors is not included in FTEs. 18 Figure 4. Combined Agency Potential Organization Structure Combined Agency Potential Organization Structure (This page intentionally left blank) 19 In addition to the above salary and benefit savings, it is anticipated that another $200,000 in savings could be realized through elimination of duplicative contracted professional services and expenses including: legal counsel, treasurer, engineering, GIS, financial audit, actuary services, human resources, IT services, temporary labor and other miscellaneous contract costs and expenses such as Board travel and related expenses. This expense reduction represents less than 5 percent of the total professional contracted services and related expenses. This is exclusive of the contracted operating costs for trash collection and recycling services. The total of the above-anticipated organizational savings for a combined agency is approximately $1.1 million. These savings are primarily associated with elimination of duplication of common services. As such, for the purposes of this analysis these savings are shared equally among the three enterprise funds for the combined agency – Water, Wastewater, and Solid Waste Funds – and accrue to the customers of each fund. It is also noted, that CMSD/Mesa Water will need to hire legal counsel and technical and financial experts to assist in drafting the required transaction documents. A budget for the one-time implementation cost of $600,000 is anticipated for combining these agencies. Refer to Table 5 for the total savings and a breakdown of the allocated savings by fund. Table 5. Total One-Time and Annual Organizational Savings by Fund and District Wastewater Fund Solid Waste Fund Water Fund Annual Savings by Fund (1/3rd allocation) $366,666 $366,666 $366,666 Savings by Agency $723,333 $366,666 Combined Savings $1,100,000 Wastewater Fund Solid Waste Fund Water Fund One-Time Implementation Savings (Cost) ($200,000) ($200,000) ($200,000) Total Implementation Savings (Cost) by Agency ($400,000) ($200,000) One-Time Implementation Cost ($600,000) Combining Mesa Water and CMSD into one organization has the potential to save ratepayers an estimated $1.1 million annually. The Administrative/Management sections of the organizations would be streamlined, achieving this opportunity and eliminating duplicative positions. 20 3 REAL ESTATE/MAINTENANCE 3.1 CMSD Facilities CMSD’s facilities include 219.4 miles of gravity mainline, 4.8 miles of pressurized mainline, 24,870 service lateral connections, 4,707 manholes, and 20 pumping stations. CMSD’s SSMP includes a detailed list of CMSD-owned sewer lines, including lengths and sizes. In addition to the wastewater infrastructure, CMSD owns and maintains three properties, which are described below. CMSD’s current headquarters is located at 628 W. 19th Street in Costa Mesa. The current market value range of this property is $1.2 - $1.3 million ($300-$320 per square foot [SF])4. CMSD is in the process of purchasing a new administration building as discussed further below and then selling this existing administration building. Refer to Appendix A for the valuation information. 4 The above is from Voit Real Estate Services, Hefter Vernick Team. 21 CMSD’s future headquarters is located at 290 Paularino Avenue in Costa Mesa. The current market value range of this property is $3.7 - $4.0 million ($295-$315 per SF)5. CMSD is in the process of purchasing this new administration building. Refer to Appendix A for the valuation information. CMSD’s District Yard is located at 174 W. Wilson Street in Costa Mesa. The current market value range of this property is $1.5 - $1.6 million ($330-$350 per SF)6. Refer to Appendix A for the valuation information. 5 The above is from Voit Real Estate Services, Hefter Vernick Team. 6 The above is from Voit Real Estate Services, Hefter Vernick Team. 22 3.2 Mesa Water Facilities Mesa Water’s combined headquarters and maintenance yard is located at 1965 Placentia Avenue in Costa Mesa. The current market value range of this property is $11.3 - $12.5 million ($190-$210 per SF). Refer to Appendix A for the valuation information. 3.3 Proposed Properties for Combined Agency Reorganization provides an opportunity to capitalize on economies of scale and reduce capital costs related to real estate. CMSD owns one administration building (which is currently on the market), a separate maintenance yard facility, and is purchasing a new administration building to replace the one currently on the market. Mesa Water has a larger combined administration and yard building as its headquarters. In the past CMSD shared offices with the City of Costa Mesa. Therefore, one area of savings is for CMSD staff to share Mesa Water’s existing headquarters at 1965 Placentia Avenue. The Placentia Avenue location has adequate space available to accommodate the combined administrative roles, as well as the wastewater and solid waste operations roles and some yard equipment, which eliminates the need for CMSD’s headquarters. Additionally, CMSD’s maintenance yard facility may not be needed depending on its vehicle storage needs. If the sewer line cleaning, for example, was contracted in part or whole as per CMSD’s historic practices (refer to Section 5.1) then equipment storage requirements would be reduced and the CMSD maintenance yard facility would not be required (note, as this is a high-level Study it is suggested that CMSD conduct an independent operations assessment). Based on current market values, a one-time savings of $2.6 to $2.9 million can be gained through the sale of CMSD’s existing administrative headquarters and maintenance yard, as well as approximately $50,000 in annual savings 23 associated with the maintenance of these buildings (electricity, cleaning, landscaping, etc.). In addition, CMSD would not need to purchase the proposed new headquarters at 290 Paularino Avenue in Costa Mesa. The potential savings associated with the elimination of excess real estate assets would accrue to the enterprise fund of those assets. For the purposes of this analysis, it is assumed that the real estate savings is divided equally between the Wastewater and Solid Waste Funds. It is also assumed that maintenance costs of the combined agency headquarters (assumed to be the existing Mesa Water headquarters and yard) would be prorated to each of the funds based on a cost of service analysis. Mesa Water’s current building maintenance costs are approximately $150,000 per year and they represent 76% of the combined revenue. As such, it is assumed that approximately 24% of this cost would be allocated to the Wastewater and Solid Waste funds, which would provide a savings to the Water Fund. Refer to Table 6 for the total savings and a breakdown of the allocated savings by fund. The annual savings are in addition to the one-time savings. Table 6. Total One-Time and Annual Real Estate Savings by Fund and Agency Categories Wastewater Fund Solid Waste Fund Water Fund Total One-Time Savings by Fund $1,300,000 $1,300,000 $0 Total One-Time Savings by Agency $2,600,000 $0 Total Combined One-Time Savings $2,600,000 Categories Wastewater Fund Solid Waste Fund Water Fund Total Annual Savings (Cost) by Fund: -CMSD Headquarters/Yard -Mesa Headquarters/Yard $25,000 ($18,000) $25,000 ($18,000) $0 $36,000 Annual Savings by Agency $14,000 $36,000 Combined Annual Savings $50,000 24 4 FINANCIAL MANAGEMENT AND RESERVES A review of the financial position of CMSD and Mesa Water, as well as the combined financial position of both CMSD and Mesa Water, assuming a combination of the two agencies, was conducted to assess whether a combined agency would have the excess reserves and revenue to allow for a reduction in rates or rebate to customers. An identification of target financial metrics (Target Days Cash and Target Debt Service Coverage) was established to maintain a AAA rating for the combined agency. Days Cash represents the number of days of operating expenses that the agency could pay with its current cash available, and Debt Service Coverage is the ratio of net operating income divided by debt service. Lastly, the current financial position was compared to the target financial metrics to determine whether one-time savings or annual savings exist. Both CMSD and Mesa Water maintain strong financial metrics. Mesa Water has received a strong AAA credit rating from both Standard and Poors (S&P) and Fitch rating services. CMSD, although financially strong, is currently unrated. The estimate of the probable range of potential excess reserves and revenue from a combined agency is based on retaining strong AAA ratings. The financial savings discussion includes the following: - Section 4.1 Overview of CMSD’s Existing Financial Position - Section 4.2 Overview of Mesa Water’s Existing Financial Position - Section 4.3 Combined Agency Financial Review - Section 4.4 Total Savings 4.1 Overview of CMSD’s Existing Financial Position CMSD separates its finances between its services for solid waste and wastewater, and as a result, each fund has a separate and distinct financial position, as summarized below. Unless otherwise noted, all financial information in this section is based on audited financial statements for the fiscal year ended June 30, 2015. Table 7. CMSD Summarized Financials Costa Mesa Sanitary District - Summarized Financials Categories Wastewater Fund Solid Waste Fund Total Revenues $ 5,958,461 $ 5,219,484 Total Expenses $ 3,376,784 $ 5,258,128 Net Revenues $ 2,581,677 -$38,644 Unrestricted Cash (Reserves) $ 15,279,498 $ 5,743,237 Days Cash 1,652 399 Operating Margin 76% -0.7% Debt Service $0 $0 25 The Wastewater Fund of CMSD has a very strong financial position. This includes both a strong operating margin of 76 percent of operating expenses and strong cash reserve position of 1,652 Days Cash. The Solid Waste Fund of CMSD has a slightly negative operating position and a lower cash position of 399 Days Cash. While this cash position would be considered very strong by S&P, it is significantly lower than that of the Wastewater Fund and the water operations of Mesa Water. The negative operating position in and of itself would be inconsistent with any level of investment grade rating. However, this negative operating position was established by CMSD as part of a conscious decision to not increase rates but to use excess reserves to balance its budget. On a combined basis, CMSD has an operating margin of 29 percent and 889 Days Cash ($21.0 million total). On this combined basis, CMSD possesses very strong financial metrics consistent with a strong AAA rating. Given that CMSD’s Solid Waste Fund operations do not typically involve any major capital outlay (or likelihood of future debt), we would not expect the combined agency’s debt service to involve the pledge of Solid Waste revenues, or factor the Solid Waste Fund into the credit rating process. Therefore, the Solid Waste Fund could potentially have excess unrestricted cash (reserves) offer rebates based on its strong cash position—and at a Days Cash level lower than required for the combined agency to retain an AAA rating. 4.2 Overview of Mesa Water’s Existing Financial Position Mesa Water has been rated AAA by both S&P and Fitch. Additionally, Mesa Water has adopted a formal “strong AAA” rating policy, which includes a 600 Days Cash target. As illustrated in the table below, Mesa Water has an operating margin of 36 percent and 617 Days Cash ($39.4 million). Unless otherwise noted, all financial information presented in this section is based on audited financial statements for the fiscal year ended June 30, 2015. Table 8. Mesa Water’s Existing Summarized Financials Mesa Water District - Summarized Financials Categories Water Total Revenues $ 35,092,402 Total Expenses $ 23,352,348 Net Revenues $ 11,740,054 Unrestricted Cash $ 39,445,085 Days Cash 616.5 Operating Margin 36% Debt Service $ 3,446,193 26 4.3 Combined Agency Financial Review Table 9 depicts the key financial metrics of a hypothetical combined agency of Mesa Water and CMSD. Though serving substantially the same service area and customer base, Mesa Water is financially around three times larger than CMSD in terms of total operating revenues. From a revenue perspective, Mesa Water would make up 76 percent of total combined agency revenues and 65 percent of combined agency cash. Table 9. Combined Agency Financial Snapshot Categories Combined Agency - Proportionate Shares FY2015 Water Wastewater Solid Waste Total Revenues $46,270,347 76% 13% 11% Total Expenses $31,987,260 73% 11% 16% Net Revenues $14,283,087 82% 18% -0.3% Debt Service $3,446,193 100% 0% 0% Debt Coverage Ratio 4.14 3.41 NA NA Operating Margin Total $10,836,894 77% 24% -0.4% Operating Margin % 34% 36% 76% -0.7% Unrestricted Cash $60,467,820 65% 25% 9% Days Cash Ratio 690 617 1,652 399 In terms of the breakdown of the combined agency, there are disparities in the existing agencies’ financial metrics. While both agencies on a combined basis are financially very strong, CMSD has relatively higher Days Cash metric than Mesa Water but a slightly lower operating margin. However, because CMSD does not have any debt service expense, a combined agency would have a stronger Debt Service Coverage ratio. In total, the combined agency would possess very strong financial metrics, including $10.8 million in operating margin, or 34 percent of operating expenses, a Debt Service Coverage ratio of 4.14 and 690 Days Cash. Based on these metrics, the combined entity would have a financial position more than sufficient to retain a AAA credit rating. 4.3.1 Financial Metrics As discussed previously, a combined agency provides strong financial metrics. As such, in terms of potential excess cash, the question becomes at what minimum key financial metrics could the combined agency operate and retain the AAA rating and what does that translate to in terms of potential excess cash. It is assumed that in order to retain a “strong” AAA rating, the combined agency would need to maintain a debt service coverage of 3.5 times and 600 Days Cash for the Water and Wastewater funds. For the Solid Waste Fund, it is assumed that 200 Days Cash would be sufficient given its operating cost level and the fact S&P criteria views this level as “very strong.” The Solid Waste Fund is not assumed to be part of the combined agency’s pledge for debt service, or factor into the credit rating. However, a cash position at a minimum of 200 Days Cash would be advisable to limit any risk the other funds would have to ever 27 subsidize Solid Waste operations. Table 10 summarizes the financial metric levels anticipated to be required. Table 10. Targeted Financial Metric Categories Target Financial Metric Level Savings Type Water Wastewater Solid Waste Target Days Cash One-Time 600 600 200 Target Debt Service Coverage Annual 3.5 3.5 Not Applicable 4.3.2 Combined Agency Available Cash 4.3.2.1 One-Time Savings Based on the above ranges and assumptions, a total of $13.6 million in one-time excess cash could be made available to provide rebates to customers, fund capital investments, reduce rates or provide for rate stabilization as illustrated in the below table. These estimates are based on the actual FY15 audited financial data and are subject to change based on FY16 budgeted performance. Based on a Target Days Cash metric of 600 days for the Wastewater Fund and 200 days for the Solid Waste Fund, CMSD Water has over $12.5 million dollars in excess cash reserves; and, based on a Target Days Cash metric of 600 days, Mesa Water has over $1.0 million dollars in excess cash reserves as illustrated in Table 11. Based on a Target Days Cash metric of 600 days, the Total One-Time Savings by fund has $13.65 million dollars in excess cash reserves as illustrated in Table 11. Table 11. One-Time Savings Categories Wastewater Fund Solid Waste Fund Water Fund Total Current Days Cash 1,652 399 616.5 N/A Target Days Cash 600 200 600 N/A Difference 1,052 199 16.5 N/A One Day’s Cash $9,251 $14,406 $63,979 N/A Excess Cash (One- Time Savings) $9,730,000 $2,860,000 $1,060,000 $13,650,000 Excess Cash Reserves (as % of FY15 Revenues) 163% 55% 3% 29% 28 4.3.2.2 Annual Savings In terms of Debt Service Coverage, the Table 12 below shows the potential excess cash after meeting the Debt Service Coverage target of 3.5. It is important to note that excess revenues after meeting Debt Service Coverage, unlike Days Cash, can be permanent given the recurring annual nature of the metric. As discussed above, CMSD is currently debt-free and no new debt is anticipated for the Solid Waste Fund, as there are minimum capital assets associated with the Solid Waste Fund operations. The Wastewater Fund, while currently debt-free, does invest an estimated $1.1 million annually (average annual based on 5-year CIP) on capital improvements to its assets. However, the annual capital investment requirement could vary substantially from year to year and, as a result, require issuance of future debt. As such, for the purposes of the analysis below, a hypothetical debt service amount was assumed for the Wastewater Fund based on the Wastewater Fund’s revenue share of 13 percent of total revenue and current combined agency debt levels. Using this assumption, a hypothetical debt service of $442,000 (13 percent of $3.4 million) was assumed for the Wastewater Fund. Table 12. Annual Savings The analysis above indicates the potential for Wastewater Fund customers to realize annual savings through reduced net revenue requirements of approximately $1.0 million per year, which represents approximately 17 percent of the annual Wastewater Fund total revenue requirements. The Water Fund, however, cannot offer any savings based on these assumptions. Categories Wastewater Fund Solid Waste Fund Water Fund Current Debt Service Coverage 4.14 n/a 3.41 Target Debt Service Coverage 3.50 n/a 3.50 Difference 0.64 - (0.09) Current Net Revenue (FY 2015) $2,581,677 - $11,700,854 Target Net Revenue (3.5 times) $1,547,000 - $11,900,000 Annual Savings (Excess Cash Reserves) $1,034,677 - ($199,146) Percent Savings (Excess Cash Reserves) 17% - -1% 29 4.4 Total Financial Management Savings Mesa Water currently has a AAA credit rating and CMSD has slightly stronger financial metrics. The combined agency would have reserves in excess of that required to maintain a strong AAA rating. Such combined reserves could be in excess of $13.6 million and available to provide a one-time rebate to customers or be used to offset future rate increase through investments, rate stabilization or rate reductions. In addition, on an annual basis the Water Fund could reduce its net revenue requirements by approximately $1.0 million annually, which represents a 17 percent reduction over current revenue requirements. Refer to Table 13 for the total savings and a breakdown of the allocated savings by fund. The annual savings are in addition to the one-time savings. Table 13. Total One-Time and Annual Financial Savings by Fund and Agency Category Wastewater Fund Solid Waste Fund Water Fund Total One-Time Savings by Fund $9,730,000 $2,860,000 $1,060,000 Total One-Time Savings by Agency $12,590,000 $1,060,000 Total Combined One-Time Savings $13,650,000 Category Wastewater Fund Solid Waste Fund Water Fund Total Annual Savings by Fund $1,040,000 $0 $0 Total Annual Savings by Agency $1,040,000 $0 Total Combined Annual Savings $1,040,000 30 5 OPTIMIZATION OPPORTUNITIES The following optimization opportunities were analyzed for both CMSD and Mesa Water. These opportunities to optimize operations exist for both CMSD and Mesa Water independent of a combined agency. 5.1 CMSD Contracting Opportunities CMSD has the responsibility for wastewater collection system maintenance and pump station maintenance and repair. CMSD historically contracted with the City of Costa Mesa for wastewater system cleaning and pump station maintenance. In 2006, CMSD began contracting all or part of the services to private contractors, with more and more of the responsibility being provided with in-house staff over time. 5.1.1 Wastewater System Cleaning National Plant Services (NPS) provided CMSD with wastewater system cleaning services and Closed Circuit Television (CCTV) inspection beginning in 2006. NPS cleaned all of the wastewater lines on a unit cost basis with a specified contractual goal of accomplishing 4,500 to 7,000 linear feet (LF) per day as a planned level of effort. In 2013, CMSD went to a shared services approach where the in-house forces began performing approximately half of the line cleaning effort by adding three wastewater maintenance employees and purchasing required equipment, including a high velocity cleaning truck and some pickup trucks with toolboxes. CMSD also purchased a CCTV Inspection trailer. Prior to this, CMSD had existing staff periodically accompany NPS, as part of a three-man crew, to observe, assist, and learn. In 2015-2016, CMSD made a strategic decision to take on 100 percent of the line cleaning effort with in- house staff and eliminated the private contract service with NPS. In order to accomplish this new approach to maintenance, CMSD added two more wastewater maintenance employees and purchased a second high velocity cleaning truck. To date, this reflects CMSD’s current operations and is the basis for Scenario 1, the status quo or baseline, refer to Table 14 in the following Section. 5.1.2 Contracting Assumptions and Analysis A preliminary analysis was conducted to understand the cost and/or benefits of providing in-house wastewater system cleaning or contracting the cleaning services as done in prior years. This analysis was conducted to identify potential additional savings in CMSD’s current operations. The CMSD Wastewater Fund would realize all of the benefits from any such contracting optimization. While contracting wastewater services can and had been done independently of a combined agency, a larger agency could provide additional support services to improve economies of scale associated with procuring and administering the contracted services. The following assumptions were used for analysis of CMSD sewer cleaning services, which are recommended to be confirmed by CMSD.  Total linear footage to be cleaned is 1,187,592 LF (per 2014 sewer cleaning contract). 31  A unit cost for cleaning of $0.38/LF (based on the estimated average pricing of the previous NPS contract escalated to today’s dollars). This unit cost includes root cutting, manhole sealing, plugging, and grit removal (but assumes free grit disposal). The unit cost does not include emergency services.  Emergency services were part of the initial contracts and were provided by NPS to CMSD on a time and materials basis in addition to the cleaning costs, as emergency services requirement cannot be readily predicted. The latest contract with NPS (when CMSD and NPS began sharing responsibilities, 2013-2014) does not include provisions for NPS providing emergency services. Therefore, assumptions are based on an estimated cost of $5,000 per Sewer System Overflow (SSO) and to be conservative an estimated three (3) SSOs per year. The number of decreasing SSOs per 100 miles of sewer pipe from 2007 to 2015 are included in Figure 5.  CMSD owns six (6) pieces of equipment, where CMSD payed approximately $335,000 for one vactor/jetter, $100,000 for CCTV/Trailer, $460,000 for second vactor/jetter, and $90,000 for each of the three pick-up trucks with box tools. The capital cost of all of the equipment was then amortized over an assumed life of 10 years at a four percent escalation rate plus maintenance and diesel.  Pump maintenance remains in house. Per review of contracts, CMSD is expending $32,790 while the cost of contract support is approximately $35,000. Figure 5. CMSD SSO per 100 Sewer Miles Annual Reporting 32 Three scenarios were developed to understand the feasibility of 1) keeping the CMSD sewer cleaning in house per the current CMSD strategy, 2) contracting out half of the sewer cleaning (the model CMSD used previously), or 3) contracting out all of the sewer cleaning. Table 14 provides a summary of the analysis. Table 14. Summary of Wastewater Contracted Cleaning Analysis Contracting Cleaning Services Evaluation Annual Costs (FY15-16) In-House Contracted Cost Total Savings Scenario 1 (Baseline) 100% In House Cleaning (Status Quo) $ 755,000 $ 0 $ 755,000 $ 0 Scenario 2 50% In House, 50% Contract Cleaning $ 396,000 $ 226,000 $ 622,000 $ 133,000 Scenario 3 (Recommen- dation) 100% Contract Cleaning $ 0 $ 466,000 $ 466,000 $ 289,000 The assumptions for each scenario are broken down as follows: Scenario 1. The LoS is assumed to include all lines (1,187,592 LF) being cleaned once per year. The number of CMSD staff currently dedicated to historically contracted services is six, which includes two Wastewater Maintenance Worker I, two Wastewater Maintenance Worker II, one Wastewater Maintenance Worker III, and one SCADA technician. Scenario 2: CMSD contracts 50 percent of the cleaning to NPS, consistent or equal with similar pricing as previous NPS contracts. Three maintenance workers would be eliminated, one Wastewater Maintenance Worker I, two Wastewater Maintenance Worker II, with potential periodic support services to be provided by the larger combined agency. Scenario 3: CMSD contracts 100 percent of the sewer cleaning services. All maintenance crews and the supporting SCADA Technician/Industrial Electrician position are eliminated. The SCADA Technician’s role and responsibilities include inspecting and attending to assigned areas in a timely manner, and performing a wide variety of tasks in the maintenance and repair of main sewer lines, laterals, pumping stations and mobile equipment. The responsibilities of the SCADA Technician’s role with respect to emergency services would be written into the contract for sewer cleaning services and the remainder absorbed by the larger combined agency, as required. Scenario 3 provides the highest savings, therefore, for the purposes of this high-level Study it is assumed that the combined agency would contract 100 percent of the sewer cleaning services. It should be noted that the anticipated savings is based on the contracted rates historically provided by NPS, which appear to be highly competitive. Should bid pricing not be this competitive moving forward, then such savings, if any, would be less. Further analysis would be required upon receiving competitive wastewater system cleaning bids. 33 5.2 Mesa Water Optimization Opportunities In 2000, Mesa Water had 71 FTE positions. Over the past 15 years, Mesa Water has reorganized and/or reassigned functions, and reduced the number of budgeted employees by 17.25 FTE or 24.3% to 53.75 FTE positions (March 21, 2015 Board Memo). Mesa Water currently maintains 57.5 FTEs. Mesa Water is currently going through a Business Process evaluation and implementation. The purpose of this assessment is to investigate and document organizational operations and identify opportunities to improve various business processes including organizational structure, labor usage, technology utilization and needs, work management, effectiveness, and efficiency. For example, a recent analysis has determined that a combination of contract support services and in-house staff will most effectively provide the maintenance for the groundwater facilities called the Mesa Water Reliability Facility (MWRF). Mesa Water is anticipating an additional $250,000 in annual savings as this and other improved processes are implemented. 5.3 Summary of Total Savings from Optimization Opportunities Table 15 provides a summary of the total savings and a breakdown of the allocated savings by fund. These opportunities to optimize operations exist for both CMSD and Mesa Water independent of a combined agency. Table 15. Total Annual Financial Savings by Fund and Agency Wastewater Fund Solid Waste Fund Water Fund Total Annual Savings by Fund $289,000 $0 $250,000 Total Annual Savings by Agency $289,000 $250,000 Total Combined Annual Savings $539,000 34 6 ADDITIONAL QUALITATIVE BENEFITS CMSD and Mesa Water both strive to deliver services that maximize environmental protection for each dollar spent and create a fair, equitable and transparent system that meets the current and future needs of the customers within their respective service areas. By combining the two agencies, it could help meet these goals. Benefits and risks of combining the agencies include: Benefits Financial - Can provide cash infusion to customers through rebates and lower rate increases resulting from release of excess reserves, system reorganization and expense reductions and increased efficiency of operations - Continues to enhance financial position and credit worthiness to maintain highest bond ratings and lowest cost debt. - Provides for increased stabilization of rates in event of unforeseen changes - Enhances economies of scale and cost effectiveness - Enhances opportunities to further increase economy of scale, service area and services provided Operational - Provides increased efficiency through combined focus on environment and utilization of common resources - Leverages in-house expertise - Allows for reorganization to enhance delivery of services - Facilitates performance evaluation and improvement - Combined regulatory oversight thereby facilitating opportunities to reduce costs and readily respond to changing conditions including expansion of service area Environmental - Enhances service delivery through focused water quality issues and integration and upgrading of systems - Helps meet increasing operation and maintenance (O&M) costs and capital improvement requirements resulting from more stringent regulatory requirements and aging infrastructure Risks - Combination and relocation of staff may result in early retirement, increased attrition, or elimination of positions - Potential labor issues associated with potential changes in benefits, pension liabilities, union job descriptions - Need to achieve consensus on a combined agency, organizational structure and governance - Potential transfer/defeasance of existing bonds - Cost and effort to secure approval and effect change including public meetings and hearings, legal filings, union negotiations, and asset transfers. 6.1 Potential Synergies The quantitative and qualitative synergies realized in combining CMSD and Mesa Water are summarized below. 35 6.1.1 Vision/Mission/Values As public agencies dedicated to serving the best interests of the same community, both CMSD and Mesa Water’s public service-orientated cultures lend themselves well to combining especially given benefits to all customers (both taxpayers and ratepayers). Additionally, capital improvement projects could be coordinated and more favorable bond issuances could be achieved. 6.1.2 Staffing/Cross-Training CMSD and Mesa Water have common in-house services, including management, administration and finance, and contracted services namely IT, Engineering and Legal. Additionally both agencies have 5- member Boards of Directors, who are all residents (and customers of both CMSD and Mesa Water), and are elected by the residents. Both agencies also hire part-time staff to cover some of the above- mentioned roles and responsibilities. When combining agencies, there are likely to be duplicate positions, which present an opportunity for savings. However, many staff leave through natural attrition, shifting people to part-time or retirement and the organizational strategy of not replacing those positions means layoffs can typically be avoided. It is estimated that $1.1 million can be saved annually once duplicate positions are eliminated. 6.1.3 Institutional The Orange County Local Agency Formation Commission (OC LAFCO) determines the process for CMSD and Mesa Water to combine. There are 58 LAFCOs in the state—one in every county (Gov’t. Code section 56325). OC LAFCO has jurisdiction over Orange County, its 34 cities, and 27 of its 38 special districts. The Legislature delegated to LAFCOs the power to oversee and change local boundaries (Gov’t. Code section 56001). LAFCO is an independent regulatory commission in each California County, created by the State Legislature to control and modify the boundaries of cities and special districts. LAFCOs are delegated authority from the Legislature to ensure orderly, efficient government through the logical structuring and restructuring of these local entities.7 7 The above is Orange County Grand Jury report on OC LAFCO http://www.ocgrandjury.org/pdfs/2014_2015_GJreport/LAFCO_Website.pdf 36 7 SUMMARY AND NEXT STEPS The initial findings identify that the combined agency potentially offers significant financial savings to its ratepayers, and increased flexibility and transparency. It also offers opportunity for increased environmental benefits and customer service. Customers receive savings through increased economies of scale that will result in lower rate increases than otherwise projected under the status quo arrangement. Table 16 summarizes the estimated annual net cost/savings under combined operations as revised in this Study. While the combined agency is likely able to achieve operational savings in excess of the above amounts identified when taking into account the qualitative factors to maximize potential savings such as cross training of employees, as discussed previously, it also faces some increased costs internal costs associated with transitions that are difficult to quantify. The estimated cost of outside services such as legal, technical and financial advisors (estimated to be in the range of $600,000) to assist in facilitating the transition, however, has been included in the financial analysis. Table 16. Summary of Estimated Annual Net Cost/Savings under Combined Agency Operations1 Item Description Wastewater Solid Waste Water Total One-Time Cost Savings Combining Organizations2 ($200,000) ($200,000) ($200,000) ($600,000) Real Estate3 $1,300,000 $1,300,000 $0 $2,600,000 Financial Management4 $9,730,000 $2,860,000 $1,060,000 $13,650,000* Operations Optimization5 $0 $0 $0 $0 Subtotal One-Time Cost Savings $10,830,000 $3,9,60,000 $860,000 $15,650,000 Annual Cost Savings Organizational Optimization2 $367,000 $367,000 $366,000 $1,100,000 Real Estate3 $7,000 $7,000 $36,000 $50,000 Financial Management4 $1,040,000 $0 $0 $1,040,000* Operations Optimization5 $289,000 $0 $250,000 $539,000* Subtotal Annual Cost Savings $1,703,000 $374,000 $652,000 $2,729,000 Note, these savings, while best accomplished through the process of reorganizing and combining the two agencies, can be substantially achieved independently. 1 Amounts shown are rounded to the nearest $1,000; 2 Refer to Section 2; 3 Section 3; 4 Section 4; 5 Section 5. As illustrated above, the analysis of the combined agency indicates the potential to provide approximately $15.6 million in one-time savings plus an additional $2.7 million in annual savings. These savings can be passed on directly to customers through lower rates, rebates, stabilization of rates, or reduced future rate increases. For example, the annual savings of $2.7 million represents over 6% of the annual revenue 37 requirements of the combined wastewater, solid waste and water funds and can be used to reduce current rates or offset future rate increases. The wastewater fund annual savings of $1.7 million represents over 28% of the annual revenue requirements for that fund and could be used to lower wastewater fees by 28% or offset future rate increases. The one time savings of $15.6 million, which is equivalent to approximately $650 per customer for those residents who receive wastewater, solid waste and water service (assuming approximately 24,000 customers per fund),can be used to provide a one- time rebate or used to cash fund capital improvements to reduce debt and future rate increases. As discussed previously, a significant portion of the savings discussed in Sections 4 (Financial Management) and 5 (Operations Optimization), can be substantially achieved independently of a combined agency, however, they are more readily accomplished through the process of reevaluation and reorganization as required for combining the agencies. The savings discussed in Sections 2 (Organizational Optimization) and Section 3 (Real Estate), however, can only be accomplished through combining the agencies. Additional due diligence is required to confirm and update these findings. These findings are based upon the high-level analysis and information available as summarized in this Study. Further due diligence investigations are required to confirm the assumptions. The cost information presented herein is based on historical information available at the time of this analysis and any changed conditions occurring after this analysis could materially affect the findings. The data reviewed in preparing this Study include existing publicly available documents available on CMSD and Mesa Water’s web site and other information provided by Mesa Water. The Study summarizes the work completed up to the date of the issuance of the Study. Changed conditions occurring or becoming known after such date could affect the material presented and the findings reached herein. The accuracy of the information provided by the agencies has not been independently verified, however, it is believed that such sources are reliable and the information obtained is appropriate for the high-level analysis undertaken and the conclusions reached herein. To the extent that the information provided is not accurate, or changes occur, the findings contained in this Study may vary and are subject to change. In completing this Study for Mesa Water, Arcadis, U.S. Inc. is not serving in the role of a “municipal advisor” under the regulations of the Securities and Exchange Commission. As such, Arcadis U.S. Inc., is not: (a) recommending any action regarding municipal financial products or the issuance of municipal securities; and (b) is not acting as a registered municipal advisor to districts and does not owe a fiduciary duty to the districts pursuant to Section 15B of the Securities Exchange Act of 1934, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, with respect to the information and material prepared in connection with this Study. The districts should discuss any information and material prepared in connection with this Study with any and all internal and external financial and other advisors that they may deem appropriate before acting on this information and material. 7.1 Next Steps Should CMSD and Mesa Water agree to move forward with a potential combined agency, CMSD/Mesa Water would need to hire legal counsel and technical and financial experts to assist in conducting due diligence investigations and drafting the required transaction documents. 38 REFERENCES California State Water Board. (2016). SSO report form retrieved from https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet?reportAction=crit eria&reportId=sso_main. Costa Mesa Sanitary District. (2016). Fiscal year 2015‐2017 adopted biennial budget. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District. (2013). Fiscal year 2013‐2015 biennial budget. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District. (2012). Fiscal year 2012‐2013 budget. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District. (2013). Comprehensive annual financial report for fiscal; year ended June 30, 2013. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District. (2014). Comprehensive annual financial report for fiscal; year ended June 30, 2014. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District. (2012). Comprehensive annual financial report for fiscal; year ended June 30, 2012. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District. (2015). Comprehensive annual financial report for fiscal; year ended June 30, 2015. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District. (2015). Green Guide Report. Retrieved from Cmsd_greed_guide_final.pdf. Costa Mesa Sanitary District. (2015). Job descriptions. Retrieved from https://www.http://www.cmsdca.gov/. Costa Mesa Sanitary District (2015). All relevant financial reports. http://www.cmsdca.gov/index.php/departments/finance/financial-statements Lorick, H. C. (2014). Business Process Evaluation. LA Consulting (Ed.), Final Report: Mesa Water District. Manhattan Beach, CA Mesa Water (2016). Mesa Water Job Descriptions. Retrieved from http://agency.governmentjobs.com/mesawater/default.cfm?action=agencyspecs Mesa Water (2015). Mesa Water District operating budget fiscal year 2015. Retrieved from http://mesawater.org/pdf/FY%202015%20Adopted%20Budget.pdf Mesa Water District (2016). All relevant financial reports. Retrieved from http://mesawater.org/financial_reports.php. Mesa Water District March 2015 Board Memo. Retrieved from http://www.mesawater.org/pdf/packets/March%2021,%202015%20-%20Board.pdf. Orange County Grand Jury report on OC LAFCO. Retrieve from http://www.ocgrandjury.org/pdfs/2014_2015_GJreport/LAFCO_Website.pdf A Real Estate Broker Opinion of Value Costa Mesa Sanitary District Headquarters Office 628 W. 19th St., Costa Mesa, CA June 20, 2016 Prepared For: Phil Lauri Mesa Water District Prepared by: Mike Hefner, SIOR Executive Vice President Lic #00857352714.935.2331mhefner@voitco.com Mike Vernick, CCIM, SIOR Senior Vice President Lic #01420885714.935.2354 mvernick@voitco.com The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2014 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions.® is a registered trademark of Voit Real Estate Services. 2400 E. Katella Avenue, Suite 750, Anaheim, CA 92806 • 714.978.7880 • 714.978.9431 Fax • Lic #01333376 | www.voitco.com PROPERTY SUMMARY Address 628 W. 19th St. Costa Mesa, CA Size 4,000 SF Parking 3.5:1000 Stories 2 Year Built N/A Parcel 0.26 Acres Condition Good Zoning C1 Use Office Mike Vernick, CCIM, SIORSenior Vice President Lic #01420885714.935.2354 mvernick@voitco.com Mike Hefner, SIORExecutive Vice President Lic #00857352714.935.2331 mhefner@voitco.com PROPERTY DESCRIPTION The property is a freestanding, two story office building situated on a signalized intersection. The area is well located nearby lots of retail amenities as well as the affluent neighborhoods of Newport Beach, but also has a strong presence of homeless people. The parking on site is surface parking, but all stalls are private given the freestanding, fee simple nature of the property. The building is currently on the market for sale and is in escrow with a potential buyer. There are also multiple back up offers in place. The current contract price is $1,240,000.00. • Positives: Corner location on a signalized intersection, private parking stalls, freestanding building. • Negatives: Area has lots of vagrants and homeless. The architecture is dated. Concrete parking lot shows signs of deferred maintenance. MARKET HIGHLIGHTS The Orange County office market is continuing it’s strong recovery brought about by a substantial increase in demand from an increasingly diverse tenant base. With so few alternatives, particularly in large blocks of space, expect to see the most substantial rental rate increase since 2007. Occupancy rates have increased to the point where some of OC’s more prominent landlords are unable to accommodate the expansion needs of their existing tenants. Orange County’s wealthy and highly educated population has contributed to rapid expansion in industries tied to technology, biotech, healthcare, professional / financial services and lending. These industries will continue to add jobs and help to increase demand in the coming quarters. COMPARABLES Top Comparable Sales Address Size Sale Date PSF Comments 201 S. BroadwaySanta Ana, CA 6,990 SF 04/29/2016 $221.75 Comparable sized parcelSimilar property image 17682 Cowan Irvine, CA 8,930 SF 12/04/2015 $305.38 Renovated in 2008 Fee simple property 17200 - 17288 Red Hill Ave., Unit 17256Irvine, CA 4,770 SF 12/04/2015 $314.47 Renovated in 2005Office condo 1528 Brookhollow Dr., Unit 100 Santa Ana, CA 6,851 SF 11/13/2015 $239.53 Master planned business park Office condo AVERAGE 6,885 SF $270.28 BOV 628 W. 19th St., Costa Mesa DOWN UPUPPOSITIVEUP Vacancy Net Absorption Sales Prices Lease Rates Transactions MARKET VALUE RANGE $1,200,000.00 to $1,280,000.00 $300.00 to $320.00 PSF Broker Opinion of Value Costa Mesa Sanitary District Headquarters Office (New) 290 Paularino Ave., Costa Mesa, CA June 20, 2016 Prepared For: Phil Lauri Mesa Water District Prepared by: Mike Hefner, SIOR Executive Vice President Lic #00857352714.935.2331mhefner@voitco.com Mike Vernick, CCIM, SIOR Senior Vice President Lic #01420885714.935.2354 mvernick@voitco.com The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2014 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions.® is a registered trademark of Voit Real Estate Services. 2400 E. Katella Avenue, Suite 750, Anaheim, CA 92806 • 714.978.7880 • 714.978.9431 Fax • Lic #01333376 | www.voitco.com PROPERTY SUMMARY Address 290 Paularino Ave. Costa Mesa, CA Size 12,696 Sq. Ft. Parking 4:1000 Parcel 0.91 Acres Stories 1 Year Built 1979 Construction Concrete Tilt Up Condition Good Zoning Commercial Use Office Mike Vernick, CCIM, SIORSenior Vice President Lic #01420885714.935.2354 mvernick@voitco.com Mike Hefner, SIORExecutive Vice President Lic #00857352714.935.2331 mhefner@voitco.com MARKET VALUE RANGE PROPERTY DESCRIPTION The property is a single story office building situated on 0.91 acres of land. The location is fantastic, as the building is at the corner of a signalized intersection of a major street within close proximity to John Wayne Airport. The building also has immediate access to the 55 freeway. The property condition is good and the image of the building is consistent with other properties in the area. The property was just purchased at a value of $3,750,000.00 in May 2016, which is considered a fair market value. Given the rising market conditions, the value now could possibly be higher. • Positives: Great area on a major street, corner signalized intersection. Good surface parking. Excellent freeway access. • Negatives: Single-story office. MARKET HIGHLIGHTS The Orange County office market is continuing it’s strong recovery brought about by a substantial increase in demand from an increasingly diverse tenant base. With so few alternatives, particularly in large blocks of space, expect to see the most substantial rental rate increase since 2007. Occupancy rates have increased to the point where some of OC’s more prominent landlords are unable to accommodate the expansion needs of their existing tenants. Orange County’s wealthy and highly educated population has contributed to rapid expansion in industries tied to technology, biotech, healthcare, professional / financial services and lending. These industries will continue to add jobs and help to increase demand in the coming quarters. COMPARABLES Top Comparable Sales Address Size Sale Date PSF Comments 1531 - 1555 Baker St. Costa Mesa, CA 9,501 SF 5/6/2016 $397.33 Large parcel of 1.20 acres 2042 Business Center Dr.Irvine, CA 11,240 SF 4/11/2016 $322.55 Building had deferred maintenance0.53 acre lot 2801 Bristol St. Costa Mesa, CA 15,518 SF 2/11/2016 $337.03 Newer building built in 2002 Parcel size of 0.82 acres 17682 Cowan Irvine, CA 8,930 SF 12/04/2015 $305.38 Renovated in 2008 Fee simple property 1650 Adams Ave.Costa Mesa, CA 12,436 SF 9/17/2015 $312.40 Renovated 2005 Two-story office AVERAGE 11,525 SF $334.94 BOV 290 Paularino Ave., Costa Mesa DOWN UPUPPOSITIVEUP Vacancy Net Absorption Sales Prices Lease Rates Transactions $3,750,000.00 to $3,999,240.00 $295.36 to $315.00 PSF Prepared by: Mike Hefner, SIOR Executive Vice President Lic #00857352714.935.2331mhefner@voitco.com Mike Vernick, CCIM, SIOR Senior Vice President Lic #01420885714.935.2354 mvernick@voitco.com Broker Opinion of Value Mesa Water District Headquarters Office 1965 Placentia Ave., Costa Mesa, CA June 20, 2016 Prepared For: Phil Lauri Mesa Water District The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2014 Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions.® is a registered trademark of Voit Real Estate Services. 2400 E. Katella Avenue, Suite 750, Anaheim, CA 92806 • 714.978.7880 • 714.978.9431 Fax • Lic #01333376 | www.voitco.com PROPERTY SUMMARY Address 1965 Placentia Ave. Costa Mesa, CA Size 59,290 SF (estimated) Office Space 21,290 SF Stories 2 story office Parcel Size 3.69 acres Construction Block and concrete tilt up Condition Good Zoning General Industrial (Mesa West Bluffs Urban Plan) Use Corporate Headquarters / Office / Warehouse Mike Vernick, CCIM, SIORSenior Vice President Lic #01420885714.935.2354 mvernick@voitco.com Mike Hefner, SIORExecutive Vice President Lic #00857352714.935.2331 mhefner@voitco.com MARKET VALUE RANGE PROPERTY DESCRIPTION The property consists of approximately 38,000 square feet of warehouse space (most of which is a covered water reservoir, but could be repurposed for a warehouse) and 21,290 square feet of office space in a separate two story office building. The buildings are situated on a large 3.69 acre land parcel, offering the desirable feature of an immense fenced yard area. The location of the property is desirable, with significant redevelopment projects occurring in the immediate vicinity. The Mesa West Bluffs Urban Plan overlay to the zoning provides for conversion of industrial properties to higher density residential. Developers have aggressively pursued larger properties in this zone and are typically paying large premiums over traditional industrial users. • Positives: Large land parcel, located in desirable area with lots of pending redevelopment. • Negatives: Some highly specialized improvements that most buyers would not see value in, not contiguous office and warehouse structures. MARKET HIGHLIGHTS The Orange County industrial market’s average asking price at the end of the first quarter came in at $191.86, a slight increase of 1.42% over the previous quarter and a 6.74% increase over a year ago (Q1 2015). This is somewhat misleading as several quality properties have traded before hitting the market at record high pricing, while some of the listed inventory is of a lesser quality. Expect both sale activity and pricing to increase if interest rates remain low. With SBA financing (requiring 10% down payment) being the preferred vehicle for owner / users at the moment, the overall occupancy costs of ownership on a monthly basis are comparable to leasing, while providing favorable tax treatments. COMPARABLES Top Comparable Sales Address Size Sale Date PSF Comments 9700 Toledo Way Irvine, CA 73,066 SF 6/9/2016 $179.16 3.70 acre land parcel Built in 1984 17681 Mitchell Irvine, CA 36,850 SF 3/30/2016 $244.00 2.11 acres of land, 54% office build outNo yard 17353 Derian Ave. Irvine, CA 78,727 SF 3/1/2016 $149.90 3.20 acre parcel Built in 1980 3560 Cadillac Ave. Costa Mesa, CA 42,365 SF 1/6/2016 $170.19 2.1 acre parcelBuilt in 1978 3030 Airway Ave. Costa Mesa, CA 78,466 SF 11/18/2015 $175.01 Built in 1973, renovated in 2001 BOV 1965 Placentia Ave., Costa Mesa DOWN UPUPPOSITIVEUP Vacancy Net Absorption Sales Prices Lease Rates Transactions $11,265,100.00 to $12,450,900.00 $190.00 to $210.00 PSF* (*Based on estimated 59,290 square foot building size) Arcadis U.S., Inc. 445 South Figueroa Street Suite 3650 Los Angeles, California 90071 Tel 213 486 9884 Fax 213 486 9894 www.arcadis.com Costa Mesa Sanitary District ... an Independent Special District Professional Consulting Services Item Number:25. Recommendation/Notes: Recommendation: That the Board of Directors considers entering into an agreement with Roget Faubel Public Affairs, Inc. for professional consulting services. ATTACHMENTS: Description Type Professional Consulting Services Cover Memo